Document Produced Under Technical Assistance
Project Number: 46927-012 Technical Assistance Number: 8117 13 November 2017
Philippines: The Procter & Gamble Company Waste to Worth Project
Final Report (Angeles City, Pampanga) Part 1 of 2
Prepared by AECOM Asia Co. Ltd. for the Asian Development Bank.
This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Asian Development Bank / The Procter and Gamble Company
TA 8117 PHI: The Procter & Gamble Company Waste to Worth Project (Package 1)
Final Report (Angeles City)
November 2017
Name Signature
Prepared & Checked: Delton Ng
Reviewed & Approved: Matthew Ko
Version: Final Date: 13 November 2017
Disclaimer
This report is prepared for the Asian Development Bank and The Procter and Gamble Company and is given for its sole benefit in relation to and pursuant to TA 8117 PHI: The Procter & Gamble Company Waste to Worth Project (Package 1) and may not be disclosed to, quoted to or relied upon by any person other than the Asian Development Bank and The Procter and Gamble Company without AECOM’s prior written consent. No person (other than the Asian Development Bank and The Procter and Gamble Company) into whose possession a copy of this report comes may rely on this report without AECOM’s express written consent and the Asian Development Bank and The Procter and Gamble Company may not rely on it for any purpose other than as described above.
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TA 8117 PHI: The Procter & Gamble Company Waste to Worth Project (Package 1) Asian Development Bank / The Procter and Gamble Company Final Report (Angeles City)
TABLE OF CONTENTS
ABBREVIATIONS ...... 1 1 INTRODUCTION ...... 3
1.1. PROJECT BACKGROUND AND OBJECTIVE...... 3 1.2. DISCLAIMERS ...... 3 1.3. REPORT STRUCTURE ...... 5 2 SITE SELECTION ASSESSMENT ...... 6
2.1. SITE SELECTION ASSESSMENT ...... 6 2.2. SITE RATINGS AND RECOMMENDATIONS ...... 12 3 MATERIAL SUPPLY MARKET AND LAND USE ASSESSMENT (TASK 1) ...... 16
3.1. CITY BACKGROUND ...... 16 3.2. ZONING / LAND USE PLANNING OF THE SELECTED SITE ...... 16 3.3. CITY COLLECTION SYSTEMS ...... 17 3.4. MATERIAL SUPPLY, CONTRACTS AND ASSOCIATED FEES AND COSTS ...... 22 3.5. ROLE OF THE LOCAL GOVERNMENT UNIT IN THE WASTE AND ENERGY SECTOR ...... 33 3.6. THE COMPETITIVE LANDSCAPE ...... 33 3.7. POLITICAL, ENVIRONMENTAL & REGULATORY CONSIDERATIONS ...... 33 3.8. MARKET & INDUSTRY TRENDS WITHIN THE WASTE AND ENERGY SECTOR ...... 36 3.9. WASTE GENERATION FORECAST & ANTICIPATED CHANGES TO THE WASTE SECTOR...... 37 3.10. JOINT VENTURE AGREEMENT BETWEEN SURE GLOBAL AND ANGELES CITY ...... 42 4 TECHNOLOGY AND PROCESS ENGINEERING REVIEW (TASKS 2 & 3) ...... 43
4.1. COMPONENTS OF THE PROPOSED MERF ...... 43 4.2. APPROACH OF THE TECHNOLOGY AND PROCESS ENGINEERING REVIEW...... 46 4.3. UNDERSTANDING & INTEGRATING THE TECHNOLOGY APPROACHES ...... 46 4.4. SEPARATION & CLEANING PROCESS ...... 50 4.5. BIO-TREATMENT PROCESS ...... 51 4.6. THERMAL TREATMENT PROCESS – GASIFICATION SYSTEM ...... 54 4.7. CONCLUSIONS AND RECOMMENDATIONS FOR TECHNOLOGY AND PROCESS ENGINEERING REVIEW 61 5 FINANCIAL AND ECONOMIC ANALYSIS (TASK 4) ...... 63
5.1. FINANCIAL ANALYSIS ...... 63 5.2. ECONOMIC ANALYSIS ...... 70 6 TRAFFIC IMPACT STUDY (TASK 5) ...... 76
6.1. DESCRIPTION OF THE HOST CITY ...... 76 6.2. DESCRIPTION OF THE PROPOSED DEVELOPMENT ...... 76 6.3. OBJECTIVES AND SCOPE OF THE STUDY ...... 79 6.4. METHODOLOGY...... 79 6.5. PRIMARY IMPACT AREAS ...... 83 6.6. SECONDARY IMPACT AREAS ...... 88 6.7. RESULTS OF THE TRAFFIC COUNT SURVEY ...... 92 6.8. TRAFFIC IMPACT ANALYSIS ...... 104 6.9. RECOMMENDATIONS ...... 106 7 OPTIMIZATION OF WASTE COLLECTION AND TRANSPORTATION WITHIN THE SERVICE AREA (TASK 5) ...... 108
7.1. INTRODUCTION ...... 108 7.2. METHODOLOGY...... 108 7.3. OBSERVATIONS ...... 110 7.4. ANALYSIS OF THE FIELD SURVEY RESULTS ...... 121 7.5. OPTIMIZATION OF COLLECTION AND TRANSPORT IN ANGELES CITY (APPLICATION OF THE STUDY FINDINGS)...... 126
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8 ENGINEERING GEOLOGICAL AND GEOHAZARD ASSESSMENT FOR THE SELECTED SITE (TASK 6) ...... 131
8.1. GEOLOGY AND SEISMICITY ...... 131 8.2. PROJECT SITE GEOLOGY ...... 136 8.3. GEOTECHNICAL CONSIDERATIONS ...... 139 8.4. GEOLOGICAL HAZARD ASSESSMENT ...... 141 8.5. CONCLUSION AND RECOMMENDATION ...... 142 9 ENVIRONMENTAL AND SOCIAL ANALYSIS (TASK 7) ...... 144
9.1. INITIAL MEETING WITH CITY GOVERNMENT ...... 144 9.2. STAKEHOLDER ENGAGEMENT EXERCISE ...... 144 9.3. INITIAL ENVIRONMENTAL EXAMINATION, SOCIAL IMPACT ASSESSMENT AND RESETTLEMENT SAFEGUARD ASSESSMENT ...... 144 10 REGULATORY REVIEW (TASK 8) ...... 154
10.1. IDENTIFICATION OF VARIOUS IMPLEMENTATION OPTIONS FOR THE PROJECT STRUCTURE ...... 154 10.2. IDENTIFICATION OF REGULATORY ISSUES TO THE PROJECT STRUCTURE ...... 157 10.3. IDENTIFICATION OF THE CONSENTS, APPROVALS, PERMITS AND LICENSES REQUIRED FOR THE PROJECT ...... 158 11 IMPLEMENTATION PLAN (TASK 9) ...... 161 12 CONCLUSION AND RECOMMENDATIONS ...... 163
12.1. SITE SELECTION ...... 163 12.2. MATERIAL SUPPLY MARKET AND LAND USE...... 163 12.3. TECHNOLOGY AND PROCESS ENGINEERING ...... 164 12.4. FINANCIAL AND ECONOMIC ANALYSIS ...... 166 12.5. TRAFFIC IMPACTS AND OPTIMIZATION OF WASTE COLLECTION LOGISTICS ...... 167 12.6. ENGINEERING GEOLOGICAL AND GEOHAZARD FOR THE SELECTED SITE ...... 169 12.7. ENVIRONMENTAL AND SOCIAL IMPACTS ...... 170 12.8. REGULATORY REVIEW ...... 171 12.9. IMPLEMENTATION PLAN ...... 172
List of Tables
Table 2.1 Potential Sites in Angeles City Table 2.2 Specific Site Selection Ranking Table Table 2.3 Indication of Scores for Site Selection Table 2.4 Overall Scoring and Comparison Table 2.5 Site Ranking Table 3.1 The 33 Barangays under Angeles City Table 3.2 Solid Waste Management Expenses in Angeles City (2010-2013) Table 3.3 Costs and fees of managing solid waste in the different municipalities in Pampanga Province Table 3.4 Comparison of expenses for disposing of waste collected at ESLF (Metro Clark Waste Management Corporation) before and after Holcim’s involvement Table 3.5 Amount of Waste Delivered from the TrS to the Kalangitan ESLF during Dry Season WACS Table 3.6 MSW Generation Projection (2014-2022) Table 3.7 Amount of Waste Collected at the New Central MRF in 2016 Table 4.1 Major Onsite Components of the Proposed MERF Table 5.1 Estimated Project Cost (In current prices) Table 5.2 Estimated Plant Capacity, MSW Feedstock Input Table 5.3 Gross Generation and Net Electrical Output Table 5.4 Operating and Maintenance Expenses: Parameters and Assumptions Table 5.5 Summary of Operating and Maintenance Costs (In million pesos, current prices) Table 5.6 Indicative Terms of the Loan Table 5.7 Financial Highlights (In million pesos, current prices) Table 5.8 Summary of Results of the Financial Analysis Table 5.9 Calculation of Weighted Average Cost of Capital
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Table 5.10 Sensitivity Analysis – Project Cost Table 5.11 Sensitivity Analysis – Project Delay Table 5.12 Sensitivity Analysis – Electricity Tariff Table 5.13 Sensitivity Analysis – Amount of MSW Received Table 5.14 Estimated Project Cost (In constant 2017 prices) Table 5.15 Schedule of Operating and Maintenance Costs (In thousand pesos, constant 2017 prices) Table 5.16 Summary of Economic Costs and Benefits (in million pesos, constant 2017 prices) Table 5.17 Summary of Economic Costs and Benefits (in million pesos, constant 2017 prices) Table 5.18 Results of Economic Evaluation Table 5.19 Results of Sensitivity Analyses Table 6.1 Traffic Survey Locations Table 6.2 Cluster Barangay MRFs and Individual MRFs Table 6.3 Level of Service Rating Scale Table 7.1 Time and Motion Study Data Collection Sheet Table 7.2 Data Collected for Observed Barangay Truck Table 7.3 Speed of the dump truck per kilometer travelled (Barangay Balibago) Table 7.4 Data Collected for Observed City Collection Truck Table 7.5 Speed of the dump truck per kilometer travelled (City Collection Truck) Table 7.6 Data Collected for Observed Private Collection Truck Table 8.1 Peak Ground Acceleration Table 11.1 Initial Project Implementation Plan
List of Figures
Figure 2.1 The Three Potential Sites in Angeles City Figure 2.2 Photo Log of the Sports Complex Site Figure 2.3 Photo Log of the Private Agricultural Land Site Figure 2.4 Photo Log of the Former City Slaughterhouse Site Figure 3.1 Land Use and Zoning Map for Barangay Mining Figure 3.2 Solid Waste Management System in Angeles City (as of August 2017) Figure 3.3 New Angeles City Central MRF Figure 3.4 Location of New Angeles City Central MRF in Barangay Anunas Figure 3.5 A “Junker” employed by Barangay San Nicolas to collect solid waste from residential households Figure 3.6 Material Recovery Facility in Barangay Lourdes Sur Figure 3.7 Material Recovery Facility in Barangay Pulung Bulu Figure 3.8 Material Recovery Facility in Barangay Balibago Figure 3.9 Segregation at Source with Barangay MRF (Scheme 1) Figure 3.10 Segregation at Source without Barangay MRF (Scheme 2) Figure 3.11 “Holcimable” Approach Figure 3.12 Amount of Recovered Polystyrene Packaging by Weight in Metric Tons Figure 3.13 Projected Daily Solid Waste Generation in Angeles City from 2012 to 2022 Figure 3.14 Annual Waste Collected in Angeles City Figure 4.1 Simplified Process Flow Diagram of the Proposed MERF Figure 4.2 Indicative Layout of the Proposed MERF in Angeles City Figure 6.1 Main Junctions / Intersections and Access Roads of the Study Area Figure 6.2 Proposed Facility Block Layout of the MERF in Angeles City Figure 6.3 Summary of TIA Process Guide (UPNCTS Foundation, Inc.) Figure 6.4 Intersection 1 – Pandan-Mining Intersection Figure 6.5 Intersection 2 – Pandan-Tabun Road Intersection Figure 6.6 Intersection 3 – Pandan-Tabun Road & San Vicente Street Intersection Figure 6.7 Pandan Road (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersectionz under this Study) Figure 6.8 Pandan Road (Magalang) nearby Tabun Road Figure 6.9 Mining Road (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersections under this Study) Figure 6.10 Entrance of Mining Road from (Magalang) Pandan Road Figure 6.11 Pandan-Tabun Road is dominated by Institutional Land Use
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Figure 6.12 Pandan-Tabun Road (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersections under this Study) Figure 6.13 San Vicente Street Figure 6.14 San Vicente Street (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersection under this Study) Figure 6.15 Direction of Traffic at the Pandan Road-Mining Road Intersection Figure 6.16 The Traffic at Pandan-Mining Intersection around Noontime Figure 6.17 Computed Average Peak-Hour Traffic on the Northbound Lane of the Pandan-Mining Intersection during the Peak Hour Periods of the Study Figure 6.18 Percentage of Types of Vehicles Travelling through the Northbound Lane of Pandan- Mining Intersection during the Peak Hour Periods of the Study Figure 6.19 Computed Average Peak-Hour Traffic on the Southbound Lane of the Pandan-Mining Intersection during the Peak Hour Periods of the Study Figure 6.20 Percentage Composition of Vehicles Travelling through the Southbound Lane of the Pandan-Mining Intersection Figure 6.21 Computed Average Peak-Hour Traffic on Both Lanes of Mining Road during the Peak Hour Periods of the Study Figure 6.22 Percentage Composition of Vehicles Travelling through the Intersection during the Peak-Hour Period of the Study Figure 6.23 Pandan-Tabun Road Intersection Figure 6.24 Directions of Traffic flow at the Pandan-Tabun Road Intersection Figure 6.25 Computed Average Peak-Hour Traffic on Both Lanes of Pandan Road during the Peak Hour Periods of the Study Figure 6.26 Percentage Vehicle Composition on Both Lanes of Pandan Road along Pandan- Tabun Intersection Figure 6.27 Computed Average Peak-Hour Traffic on Both Lanes of Pandan-Tabun Road during the Peak Hour Periods of the Study Figure 6.28 Percentage Composition of Vehicles Travelling through Tabun Road along Tabun- San Vicente Intersection Figure 6.29 Tabun Road at the Corner of San Vicente Street and the Gate of Fiesta Communities Figure 6.30 Computed Average Peak-Hour Traffic on Both Lanes of Tabun Road (San Vicente Intersection) during the Peak Hour Periods of the Study Figure 6.31 Percentage of Vehicle Composition Travelling through Tabun Road from San Vicente Street Figure 6.32 Average Peak-Hour Traffic at San Vicente Street during the Traffic Count Survey Figure 6.33 Percentage Composition of Vehicles on the Northbound and Southbound Lanes of San Vicente Street Figure 7.1 Barangay Balibago Garbage Collection Truck Figure 7.2 Barangay Balibago Collection Truck Shift 1 route from start to end of shift (orange arrows) Figure 7.3 From Balibago to disposal site at Capaya MRF (red arrows) Figure 7.4 Dump truck (white) is covered to keep lighter solid waste from being blown away by wind as the truck picks up speed towards the MRF Figure 7.5 Dump truck at the Capaya MRF with the crew preparing the truck to unload waste collected Figure 7.6 Route of the City Collection Trucks Figure 7.7 Paleros for city collection truck without personal protective gear Figure 7.8 Truck of private solid waste collector Figure 7.9 Route of Private Hauler at Villa Angela Subdivision Figure 7.10 Collection crew passing empty trash bin to the user Figure 7.11 Collection truck filled to capacity after collecting over half of the subdivision, but appears to be low density due to collection of foliage Figure 7.12 Primary Collection Vehicle Figure 7.13 Colong-colong used in some of the Barangays for Waste Collection Figure 7.14 Examples of Modern Automated Trucks Suitable for WTE Facilities Figure 8.1 Major Tectonics Features in Philippines Figure 8.2 Regional Geological Map of Central and Southern Luzon Figure 8.3 Geological Map of Angeles City Figure 10.1 Relationship Illustration between Private Proponent and Angeles City LGU
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List of Annexes
Annex A Initial Waste-to-Energy Technology Comparison Annex B Results of Financial Analyses Annex C Results of Economic Analyses Annex D Summary of Traffic Impact Study Annex E Summary of Total Traffic Volume Count During the 3-days Peak-Period Observations Annex F Traffic Volume Count for Sunday 10 January 2016 Annex G Traffic Volume Count for Monday 11 January 2016 Annex H Traffic Volume Count for Friday 15 January 2016 Annex I Memorandum on Cooperation Options Annex J Communications with the Department of Energy Annex K Permits and Approvals for the Material and Energy Recovery Facilities
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ABBREVIATIONS
AD Anaerobic Digestion ADB Asian Development Bank BIR Bureau of Internal Revenue BOI Board of Investments BOT Build-Operate-Transfer C/N Ratio Carbon to Nitrogen Ratio CBA Cost-Benefit Analysis CDC Clark Development Corporation CDM Clean Development Mechanism CENRO City Environment and Natural Resources Office CLUPZO Comprehensive Land Use Plan and Zoning Ordinance 2010 – 2020 COD Chemical Oxygen Demand CSEZ Clark Special Economic Zone DB Technologies DB Technologies BV DENR Department of Environment and Natural Resources DOE Department of Energy DPWH Department of Public Works and Highways DOST Department of Science and Technology E&S Environmental and Social EBITDA Earnings before Interest, Taxes, and Depreciation ECC Environmental Compliance Certificate EGGAR Engineering Geological and Geohazard Assessment Report EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EIS Environmental Impact Statement EMP Environmental Management Plans ERC Energy Regulatory Commission ESLF Engineering Sanitary Landfill EVF East Valley Fault FEED Front-End Engineering Design FGD Focus Group Discussion FIRR Financial Internal Rate of Return FiT Feed-In Tariff GSSR Geological Site Scoping Report HCM Highway Capacity Manual HRT Hydraulic Retention Time HUC Highly Urbanized City ICM ICM Inc. IEE Initial Environmental Examination IP Indigenous People IRA Internal Revenue Allocation IRR Implementing Rules and Regulations ITDI Industrial Technology Development Institute IWS Informal Waste Sector KII Key Informant Interview LGC Local Government Code LGUs Local Government Units LOS Level of Service MCE Maximum Creditable Earthquakes MERF Material and Energy Recovery Facilities MGB Mines and Geosciences Bureau MOA Memorandum of Agreement MPDC Municipal Planning and Development Coordinator MRF Material Recovery Facilities MSW Municipal Solid Waste MW Megawatt MWH Megawatt Hour NCIP National Commission on Indigenous Peoples
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NGCP National Grid Corporation of the Philippines NLEX North Luzon Expressway NSCP National Structure Code of the Philippines NSWMC National Solid Waste Management Commission O&M Operation & Maintenance OLR Organic Loading Rate P&G The Procter and Gamble Company PCCP Polystyrene Packaging Council of the Philippines PENDRO Provincial Environment and Natural Resources Officers PFS Philippine Fault System PGA Peak Ground Accelerations PHIVOLCS Philippine Volcanology and Seismology PPP Public-Private Partnership PPTA Project Preparatory Technical Assistance RA Republic Act RDF Refuse Derived Fuel RE Renewable Energy RRP Report and Recommendation to President SEC Security and Exchange Commission SPV Special Purpose Vehicle SURE Global SURE Global W2Wi SV Switching Value SWAPP Solid Waste Management Association of the Philippines SWM Solid Waste Management TA Technical Assistance tpd tons per day TrS Transfer Station TS Total Solids VAT Value-Added Tax VS Volatile Solids WACC Weighted Average Cost of Capital WACS Waste Assessment and Characterization Study WTE Waste to Energy WVF West Valley Fault WVFS West Valley Fault System
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1 INTRODUCTION
1.1. Project Background and Objective
The Procter & Gamble Company Waste to Worth Project (the “Project”) aims to develop an integrated municipal solid waste (MSW) management plan and Waste-to-Energy (WTE) facilities in developing markets that will address the growing challenges in the disposal of MSW and concurrently promote the mitigation of environmental and social (E&S) impacts of current waste management practice in the Philippines. In particular, the Project will not merely propose an improved management and new treatment facilities for MSW, but it also aims to create value from MSW and operate on a profitable and scalable business model. This is a Project Preparatory Technical Assistance (PPTA) for the Project that is funded by the Asian Development Bank (hereinafter “ADB”) with sponsored funding from Procter & Gamble Company (hereinafter “P&G”) in determining the feasibility of developing two Material and Energy Recovery Facilities (MERFs) in the Philippines, including the development of a detailed Implementation Plan for the Project. SURE Global W2Wi (hereinafter “SURE Global”), a joint venture partnership between W2Worth Innovations, LLC and Solutions Using Renewable Energy Inc., will be the owner / operator of the MERF.
P&G recognizes the significance of developing proper waste management system to improve the livelihood of the affected communities. Their commitment to the development of improved MSW management in an emerging market has been demonstrated in the initiation for this Waste to Worth Project and its Long Term Sustainability Vision and 2020 Goals, which include its vision of powering their plants with 100% renewable energy and having zero consumer or manufacturing waste going to landfills. This Project will serve as a pilot project for P&G’s MERF developments in the Philippines, and will include two sites, i.e. Angeles City in the Pampanga Province and Cabuyao City in the Laguna Province. P&G has chosen the Philippines as the pilot sites due to its enabling environment with proactive involvement of national and local organization in strengthening the waste management sector and its supportive legal basis, as observed in the nation’s legislation in solid waste management. This enabling environment as observed in the Philippines will not only accommodate the smooth implementation of the Project, but also enable the replication of the two pilots.
This PPTA will therefore play an important role in providing findings on optimal technologies integration, preliminary designs and measures to address the deficit in waste management. The recommendations of this PPTA and the success of the Project will serve as key factors to further incentivize P&G and other investors in replicating, or even scale up, similar MERFs elsewhere in the Philippines or in countries where P&G has operations.
In February 2014, AECOM Asia Co. Ltd. (hereinafter “AECOM” or “the Consultant”) was commissioned by ADB and P&G to undertake this PPTA and was anticipated to be completed in 2017.
In particular to this Final Report (the “Report”), all of the activities conducted since the project interim phase up until October 2017 are presented in this report, including Material Supply Market and Land Use Assessment (Task 1), Technology and Processing Engineering Review (Task 2 & 3), Financial and Economic Analysis (Task 4), site selection assessment (Task 6), Engineering Geological and Geohazard Assessment (Task 6), Environmental and Social Analysis (Task 7), Regulatory Review (Task 8), and Implementation Plan (Task 9).
The methodology in conducting the assessments as well as the results and findings of the respective assessments are both presented in this report.
1.2. Disclaimers
The Report, including all supporting data and notes, was prepared or collected by AECOM for the sole use of ADB and P&G for the specific purpose of “P&G Waste to Worth Project”. Its content is confidential.
AECOM has used its reasonable endeavours to ensure that the Report is based on information that was current as of the date of the Report. AECOM’s findings represent its reasonable
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judgments within the time and budget context of its commission and utilizing the information available to it at the time.
AECOM has relied on information provided by SURE Global, relevant government departments, equipment suppliers, and collected during field surveys and meetings to produce this Report. Unless and except to the extent that AECOM indicated in the Report, all findings, comments, and recommendations of AECOM are provided on the basis that the data, analyses, plans and other information provided to AECOM are reliable, accurate, complete and adequate. AECOM has not verified the adequacy, accuracy, and/or completeness of the data or information provided by SURE Global, relevant government departments, equipment suppliers, and collected during field surveys and meetings (unless specifically noted otherwise) and neither AECOM nor any of their officers, agents or employees shall have any responsibility or liability whatsoever for negligence or failure to exercise reasonable skill and care in connection with such data and information utilized by AECOM in the Report. No responsibility is assumed for inaccuracies in reporting by SURE Global, relevant government departments and equipment suppliers including, without limitation, by the agents of SURE Global, relevant government departments and equipment suppliers, officers, employees or representatives or for inaccuracies in any other data source whether provided in writing or orally used in preparing or presenting the Report.
The Report is provided to ADB and P&G for their sole benefit in relation to the Project and shall not be relied upon by any other person. Any disclosure and/or use of such information and documentation by any third party shall be solely at the risk of such third party and without legal recourse against AECOM, its parent, affiliated or subsidiary companies, or the officers, directors, agents, employees of any of the foregoing, in respect of all claims arising out of the Assignment, whether under the law of contract, tort (including negligence), breach of statutory duty or otherwise. Possession of the Report does not carry with it the right to commercially reproduce, publish, sell, hire, lend, redistribute, abstract, excerpt or summarize the Report or to use the name of AECOM in any manner without first obtaining the prior written consent of AECOM.
Neither AECOM nor its parent corporation, or its affiliates (a) makes any warranty, expressed or implied, with respect to the use of any information or methods disclosed in the Report or (b) assumes any liability with respect to the use of any information or methods disclosed in the Report.
Subject to AECOM’s obligations to the Client under the contract:
any other recipient of this Report, by their acceptance or use of this Report, releases AECOM, its parent corporation and its and their affiliates from any liability for direct, indirect, consequential or special loss or damage whether arising in contract, warranty, express or implied, tort or otherwise, and irrespective of fault, negligence and strict liability. AECOM undertakes no duty to, nor accepts any responsibility to, any other party who may use or rely upon this Report unless otherwise agreed to by AECOM in writing (including, without limitation, in the form of a reliance letter) herein or in a separate document. any other party who is entitled to use this Report may do so only on the Report in its entirety and not on any excerpt or summary. Entitlement to use this Report is conditional upon the entitled party accepting full responsibility and not holding AECOM liable in any way for any impacts on the opinions provided arising from factors that are beyond the control of AECOM, including but not limited to, changes in technology, site variations, regulatory provisions or the owner’s policy affecting the operation of the company.
This Report may contain remarks about and observations on legal documents such as contracts, licenses, permits and authorities. They are provided on the understanding that AECOM is not herein engaged in rendering professional legal advice and services. AECOM may make remarks and observations of a non-legal nature about the contents of such documents and it shall not be taken in any way as expressing any opinion or conclusion about the legal status, validity, enforceability, effect, completeness or effectiveness of the legal documents. AECOM
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shall not be liable in any way or for any damages of any kind arising from use of or reliance on the remarks and/or observations as legal advice.
No section or element of this Report may be removed, reproduced, electronically stored or transmitted in any form by parties other than those for whom the Report has been prepared without the written permission of AECOM. All sections in this document must be viewed in the context of the entire Report including, without limitation, any assumptions made and disclaimers provided. No section in this Report may be excised from the body of the Report without AECOM’s prior written consent.
It shall be noted that AECOM is not a licensed financial advisor. No information contained in this Report shall be regarded as investment advice, recommendation or endorsement. This document or any part thereof does not constitute an offer or an invitation to invest. AECOM shall not be responsible for loss or damages resulting from the content or general information provided in this section by AECOM, its employees, agents or sub-consultants. The Client shall consult its own registered financial / investment adviser.
1.3. Report Structure
This report summarizes the project progress and activities conducted throughout the Project. Section 1 of this report serves to provide project background and a brief introduction of this PPTA. Section 2 to Section 11 of this report summarizes the results and findings of respective project tasks and technical assessments. Section 12 concludes the findings of the Project.
The sections of this report are organized as below:
Section 1: Introduction Section 2: Site Selection Assessment Section 3: Material Supply Market and Land Use Assessment (Task 1) Section 4: Technology & Process Engineering Review (Tasks 2 & 3) Section 5: Financial and Economic Analysis (Task 4) Section 6: Traffic Impact Study (Task 5) Section 7: Optimization of Waste Collection and Transportation within the Service Area (Task 5) Section 8: Engineering Geological and Geohazard Assessment for the Selected Site (Task 6) Section 9: Environmental and Social Analysis (Task 7) Section 10: Regulatory Review (Task 8) Section 11: Implementation Plan (Task 9) Section 12: Conclusion and Recommendations
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2 SITE SELECTION ASSESSMENT
2.1. Site Selection Assessment
This Project will require a site to develop the MERF in Angeles City. A high-level site selection exercise has been conducted to assist the consulting team in reviewing the existing data and information needed in selecting a suitable site for the development of MERFs in Angeles City. Table 2.1 and Figure 2.1 below shows the sites which were shortlisted by the local government of Angeles City and we have assessed them in detail to select a suitable location for the MERFs development.
Table 2.1 Potential Sites in Angeles City
Site 1 Former City Slaughterhouse Site Site 2 Private Agriculture Land Site Site 3 Sports Complex Site
Figure 2.1 The Three Potential Sites in Angeles City
As part of this PPTA, the Consultant has conducted a high-level site selection exercise to recommend the most viable site out of the three potential sites. It was agreed during the Inception meeting that the macro-analysis of the environmental and social impacts would be conducted in addition to the land use assessment and the preliminary geological assessments. The key components1 of the methodology on site selection assessment are outlined below.
2.1.1. Assessment Criteria and Scoring System
The scoring system constitutes a two-tier categorization of site selection criteria. Table 2.2 below summarizes the key parameters and criteria considered in this scoring and ranking system. Criteria such as planning, environmental, engineering, and social concerns are taken into account.
Four Basic Criteria are sub-classified into 17 Detailed Criteria in the scoring system. Basic Criteria includes (i) Planning, (ii) Environment, (iii) Engineering, and (iv) Social. Each of them carries different level of importance and was assigned with different weightings to reflect their relative importance for the site selection. Therefore, a higher weighting would be assigned to
1 Detailed Methodology in the Site Selection Assessment can be found in the Site Selection Report (Angeles City).
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those Basic Criteria considered as crucial factors and major contributors to the overall site selection process.
For Detailed Criteria, each and every one of them represents the area that could be of much concern for the development of MERFs. With each of the Detailed Criteria possibly a deciding factor in this site selection process, a weighting would also be assigned to reflect their relative importance under their affiliated Basic Criteria. Thus, the scores calculated were summed up to reflect the site that is desirable for the development of MERFs. The weighting of respective Basic/Detailed Criteria is specifically designed for this particular project taking the nature of the MERFs and solid waste management program in Angeles City into account.
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Table 2.2 Specific Site Selection Ranking Table
Scores Basic Criteria Overall Weighting Detailed Criteria Weighting (1 = least desirable; 5 = most desirable) Site 1 Site 2 Site 3 Zoning / Land Use Planning 30% Traffic Impact 30% Planning Concerns 25% Opportunity Cost of Land 25% Land Ownership 15% Sub-total = 100% Air 20% Ecology (Habitats & Species) 20% Visual Impact 10% Environment Impacts 25% Noise 10% Surface Water 20% Groundwater 20% Sub-total = 100% Site Accessibility 15% Utilities2 15% Engineering Feasibility 25% Flood Hazards 30% Site Geotechnical Constraints3 40% Sub-total = 100% Community Resettlement 40% Social Issues 25% Socio-Economic Impact 20% Indigenous People 40% Sub-total = 100% Total =
2 Utilities include the provision of water, electricity, sewage and drainage discharge. 3 Site Constraints include site topography, seismic impact zone and site stability.
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2.1.2. Criteria and Corresponding Weighting
A high-level site selection exercise would be conducted by first setting up basic site selection criteria as follows:
A. Planning Concerns (25% of Overall Weighting)
Planning Concerns are considered as an important matter due to the scarcity of land, the booming economy and the growing population that has resulted in increasing demand of land for infrastructure developments in Angeles City. Therefore, detailed criteria associated with Planning Concerns that would be examined are zoning/land use planning, traffic impact, opportunity cost of land, and land ownership. Each of the criteria was assessed as follows:
1. Zoning/land use planning
The initial zoning and current land use planning of the shortlisted sites and their surrounding would be assessed under this criterion. Sites which are defined under Production Area of the CLUPZO would be granted with higher score due to their compatibility to the Comprehensive Development Planning in Angeles City. Sites which may cause fewer impacts to the surrounding land use would also be granted with higher scores.
2. Traffic Impact
Adverse impact on traffic conditions during the process of waste collection and transfer, which includes waste collection and delivery, would be evaluated. Sites with higher adaptability to the increased traffic flow caused by the operation of the MERF would receive a higher score.
3. Opportunity Cost of Land
The Opportunity Cost of Land is the estimated value of the next best alternative forgone by developing MERF. This has implied that the higher the benefits and estimated potential value for alternative use of the site, the higher the potential value forgone by developing MERF. Thus, a lower score would be given.
4. Land Ownership
Land ownership determines the immediate availability and the right of usage of sites throughout a particular period of time. Sites with scattered government and / or private land ownership would involve higher cost, lengthier time and more complicated legal processes to claim their sole possession, and thus a lower score would be given. Also, land ownership impacts such as private lots that may be affected by land resumption and / or clearance, re-housing and compensation for the affected residents, creation of relevant easement and the involvement of other permanent / temporary rights would be considered. Sites that could cause larger impact to the private land lots would receive a lower score.
B. Environmental Impacts (25% of Overall Weighting)
Environmental Impact to the existing and surrounding areas should always be taken into consideration during the planning stage of a waste treatment facility. It is an important criterion for the selection of site(s) for the MERF development mainly due to the possibility of negative impact to the natural habitat and resources, as well as to the human settlement in areas nearby the site(s). In order to address such concerns, Air, Ecology, Visual and Landscape, Noise, Surface Water, and Groundwater were the detailed criteria that were assessed.
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Assessment and scores would be incorporated based on the site’s adaptability, robustness and sensitivity to the potential environmental impacts caused by the development of MERF. Sites with higher score would imply less impact to the environment.
1. Air
Possible emission of air pollutants and toxic substances (if any) from the facility as well as the odor generated during the operation of the MERF would be assessed. Both air pollutants and odor are regarded as highly sensitive issues to the surrounding human population. Sites that could acquire a more sizeable buffer zone to the surrounding human population and fewer impacts would be granted with a higher score.
2. Ecology
In this criterion, the impacts on terrestrial and river ecological habitats and species such as impacts on trees and aquatic organisms during the construction and operation phases were be assessed. In addition, any ecological impacts caused by the handling of dredged or excavated materials during the construction would also be considered. Sites located near natural landscapes, conservation areas and habitats with significant importance would receive a lower score. This criterion is of considerable importance because some of the potential sites are in close proximity to a river and / or creek where disturbance to riverine ecological system could possibly occur.
3. Visual Impact
In this criterion, assessment of visual impacts would be considered in the proposed sites when viewed from neighboring properties, main transport routes, and sensitive public vantage points. Furthermore, the nature of the local landscape and the possible integration of the constructed waste treatment facility into the local landscape would also be assessed. Both short and long distance views of the site and the effect of fence wall and other features, if applicable that may limit the views would also be assessed. Higher score would be granted to sites where the development of the waste treatment facilities could have fewer visual impacts and bring along unity and harmony to the surroundings.
4. Noise
The on- and off-site traffic movements particularly with the garbage trucks operated by haulers as well as facility during the construction and operation are considered as major sources of noise generation. These sources would cause negative impacts to the surrounding land uses, in particular to the sensitive receptors and wildlife. Sites located further away from sensitive receptors, such as schools, densely populated areas and residential developments, would be granted with a higher score.
5. Surface Water
The proximity of a proposed site to surface watercourses should also be considered in terms of environmental sensitivity. Water pollution from leachate, site runoffs and possible discharge to the surface water courses during the construction and operation phases would be causes of concern in this criterion. Adequate drainage treatment on site could effectively minimize the potential impacts placed on water quality in the surrounding area. Sites found in far proximity to natural rivers and reservoirs would be given a higher score while sites found in a close proximity to abstraction points for residential or industrial use would receive a lower score.
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6. Groundwater
The site’s hydrogeological characteristics and possible groundwater abstractions would be assessed in this criterion. Sites with land underlain by permeable deposits, major aquifers or areas that if developed are likely to have significant impacts on the ground water quality would receive a lower score.
C. Engineering Feasibility (25% of Overall Weighting)
Engineering feasibility is another important siting criterion. It covers all the siting requirements in relations to the construction and operation of the MERF. Detailed criteria to be evaluated include Site Accessibility, Flood Hazards, Utilities, and Site Geological Constraints.
1. Site Accessibility
Site Accessibility is a key factor in this site selection process, especially when it comes to the consideration of providing site access infrastructures. As such, this detailed criterion is applied to examine and assess sites’ existing and proposed road’s character and width to accommodate the proposed facility development, type and amount of access roads, their proximity to nearby highways or major roads, as well as potential impacts on the local transportation network and the surrounding neighborhood, etc. Sites with good transportation network, infrastructure, road conditions and less impact to the surrounding neighborhood would receive a higher score.
2. Utilities
Utilities are crucial factors in Engineering Feasibility, as their availability could heavily affect the construction cost and programme as well as operation efficiency of the proposed MERF. The provisions of water, electricity, the provision of sewage network and treatment facilities, as well as provision of storm water drainage are the key concerns in terms of utilities supply. Sites with all the above-mentioned facilities readily available would be granted a higher score.
3. Flood Hazards
Since flooding may possibly have a severe impact on the construction and operation stage of the MERF, the susceptibility of the site to flooding was assessed in this criterion. Site that is in close proximity to active river channels and areas with high susceptibility to flooding would have a higher risk in the construction and operation of waste treatment facility, and thus, the site would receive a lower score.
4. Site Geotechnical Constraints
Site Geotechnical Constraints include site topography, seismic impact zone, and site stability. The geology and geotechnical impacts would be taken into account in the assessment of this criterion. The MERF should not be located in an area where underground configurations are unknown or complex, areas that are highly fractured or faulted, unstable ground, area with a karst or sink hole terrain, seismically active areas, and areas that are subject to mass movement, etc. Site with less desirable conditions for the construction and operation of the waste treatment facility in terms of the abovementioned factors, would be given a lower score. A higher score would be given to site with areas available for expansion.
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D. Social Issues (25% of Overall Weighting)
In this criterion, potential social issues that may be raised from the construction and operation of the MERF development on each proposed site would be evaluated. This could serve to provide the potential impacts to the community and expected measures to tackle the issues. Detailed criteria assessed include Community Resettlement, Socio-Economic Impact, and Indigenous People (IPs).
1. Land Acquisition and Community Resettlement
Land Acquisition and / or Community Resettlement would involve additional costs for the construction of the waste treatment facility. For instance, the additional cost may include compensation for the losses of the affected community, assisting the community in relocation and enhancement or restoration of the livelihoods of all displaced people. As such, the needs for land acquisition and community resettlement for a waste treatment facility would be assessed. A site with little cost for land acquisition and minimal impacts to the community and least possibility to resettlement would receive a higher score.
2. Socio-Economic Impact
The benefit and cost of the MERF would be evaluated in the criterion. A balance should be sought between advantages of the operation and construction of the MERF for solving the waste problems and the negative impact it imposes on the surrounding neighborhood as well as the cost of operation and maintenance. Sites with minimal impact to the surrounding neighborhood and maximal benefits in handling the waste issues would receive a higher score.
3. Indigenous People
The presence of indigenous people or community in the surrounding area of the three proposed sites would be assessed in this criterion. Additional efforts and resources would be needed to resettle the indigenous people. Therefore, the impacts on the livelihoods of indigenous people, possible compensation of losses to the community and the needs for resettlement would be assessed. Sites with fewer or no indigenous people would receive a higher score.
2.1.3. Scoring and Ranking System
A scoring and ranking system is developed to assess the three shortlisted sites. After different criteria have been assessed and evaluated for each site, a score of 1 to 5 would be given to each site according to the detailed criterion. By summing up all the weighted scores of detailed criteria, a higher score obtained would indicate a higher desirability of a site for MERF development. The indication of each score is listed in Table 2.3 below. The site that obtains the highest score would be recommended for MERF development.
Table 2.3 Indication of Scores for Site Selection
Score 1 2 3 4 5
Qualitative Moderately Moderately Undesirable Fair Desirable Indication Undesirable Desirable
2.2. Site Ratings and Recommendations
The overall scoring for all the three sites are shown in Table 2.4 and the corresponding ranking is given in Table 2.5. The overall score of “Site 3: The Sports Complex Site” is the highest and followed by “Site 2: A Private Agriculture Land” and “Site 1: The former City Slaughterhouse Site” is the lowest.
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Since Site 3, as shown in Figure 2.2, is located on a piece of vacant land, the potential impacts towards environment and community induced towards the sensitive receivers would be comparatively lower. In terms of basic criteria of engineering feasibility, Site 3 scored the highest as vehicular accesses are readily available through the Mining Road and Capaya, and restrictions on construction and operation would be unlikely. In terms of Planning, Site 3 is currently vacant and it is also owned by the government. The site is anticipated not be affected by lengthy negotiations, land acquisition, and resettlement.
Figure 2.2 Photo Log of the Sports Complex Site
Outlook of the Sports Complex Site Outlook of the Sports Complex Site
Site 2, as shown in Figure 2.3, is next Site 1. The lowest aspect for this site is due to its ownership by private and the location which may require further road improvement works for site to be readily assessed by haulers. The site is also in a close proximity of the Taug Dike, which is an active stream that may possibly lead to periodic flooding. Although the land acquisition and resumption process would require some negotiations with the relevant stakeholders and owners, the site is located relatively far away from the major residential development. It is envisaged that the number of affected communities towards the MERF development would be insignificant.
Figure 2.3 Photo Log of the Private Agricultural Land Site
Taug Dike Access Road to the Site
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The Adjacent Game Cock Farm The Adjacent Residents
Outlook of the Private Agricultural Land Site Outlook of the Private Agricultural Land Site
Site 1, as shown in Figure 2.4, is found to be the least preferred for the MERF development. This is located in a highly populated area with several major residential developments in the surrounding area. A large number of sensitive receivers are located in a close proximity to the site. Site clearance work would also be required due to the site is currently occupied by resettlement villages. The villages are also expected to be resettled. In view of all the basic criteria that have been reviewed in this report, Site 1 would consider as undesirable for the development of MERF.
Figure 2.4 Photo Log of the Former City Slaughterhouse Site
The Former City Slaughterhouse Outlook of the Resettlement Village surrounding the Former City Slaughterhouse
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Outlook of the Resettlement Village Outlook of the Resettlement Village surrounding the Former City surrounding the Former City Slaughterhouse Slaughterhouse
From the results of detailed review on the perspective of Planning Concern, Environmental Impacts, Engineering Feasibility, and Social Issues, “Site 3: The Sport Complex Site” has obtained the highest score and is found to be the most preferred site for MERF development. Therefore, it is recommended that a detailed feasibility study shall be carried out the MERF to be developed at this site.
Table 2.4 Overall Scoring and Comparison
Site Planning Environmental Engineering Social Overall Concern Impacts Feasibility Issues Score
Weighting 25% 25% 25% 25% 100% Site 1 2.15 2.40 2.45 2.60 9.60 Site 2 2.10 2.90 2.30 3.80 11.10 Site 3 3.05 3.10 3.60 4.80 14.55
Table 2.5 Site Ranking
Ranking Site 1st Site 3 – The Sports Complex Site 2nd Site 2 – A Former Agriculture Land 3rd Site 1 – The Former Slaughterhouse Site
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3 MATERIAL SUPPLY MARKET AND LAND USE ASSESSMENT (TASK 1)
3.1. City Background
Material supply market and land use assessment would be the key to evaluate the commercial viability of the Project. According to the Angeles City government, Angeles City is classified as a highly urbanized city (HUC) and the city is subdivided into 33 barangays (Table 3.1). The city, which is independent from the Province of Pampanga, is also called as a chartered city (whose existence as corporate and administrative entities is governed by their own specific municipal charters in addition to the Local Government Code of 1991, which specifies their administrative structure and powers). As of 2015, the city has a population of 411,634, and in the Province of Pampanga, the population is 2,198,110.
Table 3.1 The 33 Barangays under Angeles City
Barangays under Angeles City 1. Agapito del Rosario 12. Lourdes Sur East 23. San José 2. Amsic 13. Malabañas 24. San Nicolas 3. Anunas 14. Margot 25. Santa Teresita 4. Balibago 15. Marisol (Ninoy 26. Santa Trinidad 5. Capaya Aquino) 27. Santo Cristo 6. Claro M. Recto 16. Mining 28. Santo Domingo 7. Cuayan 17. Pampang (Santo 29. Santo Rosario 8. Cutcut Niño) (Población) 9. Cutud 18. Pandan 30. Sapalibutad 10. Lourdes North West 19. Pulungbulo 31. Sapangbato 11. Lourdes Sur 20. Pulung Cacutud 32. Tabun (Talimundoc) 21. Pulung Maragul 33. Virgen Delos 22. Salapungan Remedios
3.2. Zoning / Land Use Planning of the Selected Site
The initial zoning and current land use planning of the selected site and the surrounding were assessed. “Site 3 – The Sports Complex Site” is the selected site for developing the MERF in Angeles City. It is located in Barangay Mining.
While MERF is an industrial facility, as shown in the land use and zoning map for Barangay Mining in Figure 3.1, Site 3 was originally zoned for agricultural use. However, this site has previously been set up to develop a sports complex, only for the city government to suspend the sports complex development later on to re-consider the use of this piece of land. Site 3 is currently zoned as residential and developmental use. At the northeastern side of the site, there is a large piece of land zoned as Medium Density Residential (R-2) Zone. According to Comprehensive Land Use Plan and Zoning Ordinance 2010 – 2020 (CLUPZO), the zoning shall be used for housing/dwelling purposes of high density. This area is intended for the development of residential condominiums, hotels, apartments, dormitories, etc.
Given that Site 3 is adjacent to the Medium Density Residential (R-2) Zone, the CLUPZO shall be revised to fit the MERF development, which is industrial use.
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Figure 3.1 Land Use and Zoning Map for Barangay Mining
3.3. City Collection Systems
In assessing the type of collection systems being deployed in the city, the Consultant has conducted field work in obtaining the type of collection trucks and equipment from various collectors and haulers ranging from public sectors, individual haulers, and hauling contractors, etc. and reviewed documents in related to the city collection system. Four collection systems are currently deployed, which may be further assessed on their routes under the Traffic Impact Study. They are:
1) Barangay Collection Trucks;
2) City Collection Trucks;
3) Private Collection Trucks; and
4) Other Trucks (e.g. pedicabs, which collects waste from nearby cities / neighborhoods / subdivisions).
As of 2015, the city is still using a door-to-door collection system for collecting the waste. In particular to the city’s door-to-door collection, waste is being collected in 12 Barangays and institutions. The waste from the remaining areas are mostly collected by Barangay Collection Trucks, while for those living in subdivisions, some of the waste is being collected by private haulers / private collection trucks. As observed at the city transfer station, residents also pay pedicabs for disposing of their waste at the TrS. Trucks in smaller sizes are mostly coming from subdivisions, while those larger in size are mostly coming from Barangays. Private haulers are engaged by large commercial establishments to haul their garbage.
In accordance with s.22 of Republic Act (RA) No.9003 of the Philippines, the city should make available separate containers for compostable, non-recyclable, recyclable and special waste or other separation scheme as determined by the National Solid Waste Management Commission. To this end, the city has implemented a binary waste separation scheme (the “Scheme”) on 1st March 2014 to implement the requirements as stated in section 3A06.01 (a) of the City Ordinance No. 302, Series of 2011. The Scheme requires citizens, the commercial and industrial sectors, markets, government, education and health care institutions of Angeles City to separate biodegradable from non-biodegradable material when they sent out waste for
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collection. Due to the implementation of the Scheme, most of the recyclables are sold to a total of 42 junkshops and/or private MRFs in the city. These junkshops and private MRFs are required to receive permits and licenses in order to operate their business. The collection system in Angeles City as of August 2017 is illustrated in Figure 3.2 below. Explanation on each sub component in the system would also be explained.
Figure 3.2 Solid Waste Management System in Angeles City (as of August 2017)
3.3.1. Waste Sources
There are four groups of waste generators in Angeles City (i) residential, small commercial and business establishments (including sari-sari stores, fast food chains, luxury hotels, restaurants, etc.); (ii) Malls (SM City-Clark, Robinson’s Place, Jenra Grand Mall, Nepo Mall, Saver’s Mall and the Ayala Marquee Mall); (iii) Public markets and institutions (mainly education institutions); and (iv) Industries (the Clark Freeport Zone, Clarkfield, Pampanga in the north and the Angeles Industrial Park).
3.3.2. Collection Systems
Waste at difference sources are collected by different systems in Angeles City. Waste generated from residential, institutional and small commercial are collected by some small private collectors, Barangay Collection Trucks and City Collection Trucks, while waste generated from commercial and industrial sources are collected by private haulers.
1. Residential, Institutional, Small Commercial and Business Establishments
Waste is being collected without segregation (mixed) through the door-to-door collection system. The system consists of three major collectors, including small private collectors, barangay collection trucks and city collection trucks. Under small private collectors, they can be classified into two types of collectors, i.e. formal and informal waste collectors/pickers. Formal waste collectors are registered under the Barangay to collect waste and dispose the waste to city’s collection truck. They also retrieve the recyclable waste from the mixed waste to sell to local junkshops. Informal waste pickers are eligible to keep the recyclable waste and collect fees from households as return to
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their work. Residual waste (non-recycle, non-biodegradable are placed to barangay collection trucks for final disposal.
Other waste that is not collected by the informal waste pickers are collected by barangay collection truck or collected and disposed of via other channels. City collection trucks mainly collect waste from institutions and other sources along major highways, such as MacArthur Highway and Andrew Fields.
2. Commercial / Industrial Sources
Waste generated from commercial and industrial sources adopt different approach in waste collection. Most of the waste generators have their own MRFs to retrieve recyclables from the mixed waste. Recyclables are then being sold to recycling companies in Angeles City and transported to other cities like Manila for selling / re- selling. These sources also hire private haulers to collect and haul their residual waste (food waste and other residual wastes) for final disposal, such as at the Kalangitan Engineered Sanitary Landfill (ESLF).
3.3.3. Waste Transfer / Recovery
Waste collected from different collection systems are to be transported to different facilities in the city for disposal and/or further handling. Major components are identified in the waste transfer / recovery stage as below:
1. City Transfer Station (TrS) / Central MRF / Barangay MRF
Waste collected by small private collectors, barangay and city are to be transported to the City Transfer Station (TrS) for centralization, composting and retrieval of recyclables. The city used to run one central TrS at Barangay Pampanga. Due to the opposition and complaints from the neighborhood, the TrS was closed down since 1 November 2014.
Then, as a temporary measure, the barangays were grouped into four clusters and established their own MRFs. Barangays that have no MRFs in place are required to cluster with other barangays in order to sort the waste collected before transporting the residual waste to the landfill for final disposal. It is noted that there are four MRFs currently operating in the city. However, those barangays who do not have access to any MRFs within their barangays or with other barangays would transport the waste directly to the landfill for final disposal.
In view of the fragmented collection and disposal system, in late-2015, the city has decided to open a new Central MRF in Barangay Anunas to temporarily serve the purpose of the former TrS. The new Central MRF is located at 15° 9'31.80"N latitude and 120°32'55.64"E longitude as shown in
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Figure 3.3 and Figure 3.4 below. It will be closed down as soon as the MERF in Angeles City is constructed and in full operation.
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Figure 3.3 New Angeles City Central MRF
Figure 3.4 Location of New Angeles City Central MRF in Barangay Anunas
2. Composting (biodegradable)
Biodegradable waste is sorted at the TrS / Barangay MRFs and placed at the on-site composting facility for composting. Yet, it is understood that mixed waste composting at Barangay MRFs is not technical and financially sustainable as originally planned.
3. Junkshops (Recyclables)
The recyclables would be salvaged by the formal (registered) waste collectors / pickers at the MRF. However, it is also understood that householders and other waste generators as well as waste collection crew would retrieve recyclable materials and sell to junkshops within the city whenever they see them from the waste.
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4. Recycling Company (Recyclables)
Large establishments, such as Marquee Mall, would have their own private MRFs in place to sort and store recyclables. Following the sorting on their own, the recyclables are being hauled to recyclers / junk dealers within the city, while residual waste is being hauled by private haulers / collectors from the private MRFs to the landfill for final disposal.
3.3.4. Final Disposal
Currently, there is only one option for final disposal of waste collected in Angeles City, which is landfill disposal.
1. Landfill
Waste would be sorted and segregated in the MRF during the Waste Transfer / Recovery stage. All residual waste would be hauled by city-contracted haulers (SWIMS International) to Kalangitan ESLF for final disposal.
The Consultant has also reviewed documents and conducted discussions with Lafarge Cement Services (Philippines), Inc. (“Lafarge”) and Holcim Philippines Inc. (“Holcim”)4 in 2014, which may have material supply arrangements with the Local Government Units (LGUs) and barangays to assess the potential impacts in terms of waste supply to the MERF. It is noted that a trial agreement between the Province of Pampanga and Holcim was arranged from February 2012 to October 2014 to transport source- separated recyclable waste, like plastics, textile and rubber, to Holcim’s cement manufacturing plant for cement kiln co-processing. The arrangement was suspended in October 2014 as the waste delivered by Angeles City to Holcim’s cement manufacturing plant could not meet the requirements set by Holcim on waste quantity and moisture content.
3.4. Material Supply, Contracts and Associated Fees and Costs
Based on a preliminary data collection, it was found that there were material supply contracts in Pampanga as well as in Angeles City with Holcim Philippines, Inc. (Holcim). Holcim is the leading cement manufacturer with cement plants and offices in the Philippine archipelago – in La Union, Bulacan, Davao, and Lugait in Misamis. The Consultant conducted several interviews with CENRO of Angeles City, Pampanga Provincial Environment and Natural Resources Officers (PENRO) as well as Geocycle (a Holcim company that is responsible for handling Refuse Derived Fuel (RDF)) back in September 2014. However, the material supply contracts or agreements were classified as confidential documents, so the Consultant was not able to assess and review the contracts.
3.4.1. Material Supply Agreements in Angeles City
In Angeles City, the mayor had previously agreed with Holcim regarding the provision of RDF to their facility. Even though no official contract was signed between the two parties, it was still considered as a trial practice on waste disposal in the city.
Under the arrangement, the city was required to provide at least eight (8) metric tons (MT) of material per hauling of a specified type of waste (plastic waste, textiles, wood waste, etc.) with at least 10% of moisture content. However, the city was only able to provide Holcim with 64 MT from February to May 2013 (which is equivalent to approximately 16 MT/month). The city was not able to provide the required materials, in which it could only achieve to 6MT per hauling sometimes. The moisture content requirement could not be attained as well due to the MRF was not covered and substantial moisture was evaporated especially during the dry months. In addition, the City does not have sufficient financial resources to hire sorters to sort the types of
4 Holcim acquired Lafarge in 2015.
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waste for Holcim. Since the waste provided by the city was not able to meet the standard by Holcim, the hauling was suspended and wastes were accumulated at the transfer station.
From January 2013 to May 2013, Angeles City did not dispose of the waste collected to the existing Engineered Sanitary Landfill in Sitio Kalangitan, Capas, Tarlac Province owned by the Metro Clark Waste Management Corporation. During the said period, waste collected was being hauled to Holcim as the trial practice on waste disposal. The city resumed the disposal of residual waste to landfill in Sitio Kalangitan after Angeles City and Holcim agreed to suspend the arrangement in October 2014.
According to the city government, there is no existing material supply contract between the city government and other parties in Angeles City. Yet, there are TrS and MRFs that serve the city, which are described in the next section. Currently, the new Central MRF is located in Barangay Anunas.
3.4.2. Transfer Stations & Barangay Materials Recovery Facilities in Angeles City
Most barangays adopted door-to-door waste collection by using the workforce from the Informal Waste Sector (IWS). The workforce is authorized to collect solid waste and is assigned to a street or route in a barangay. They collect waste from their street or route using their own pedicabs or colong-colong. Each of these pedicabs collects a certain amount of garbage fee from each of the household (about PHP 1.00 per household per day). However, it is noted that paying the waste collector a garbage fee is not a mandatory requirement, and that some of the households would not pay the waste collector. Even so, the IWS would still collect the mixed waste from the households due to the fact that the waste, including the recyclables, do have value to them and would belong to them once collected. Each collector brings the waste collected to the barangay MRF (for those barangays with existing MRF) or directly to the barangay collection trucks (for those barangays without MRF).
According to the previous arrangement, the IWS were allowed to dispose of waste directly to the Central MRF. However, the current policy of the city only allows the IWS to dispose their waste in the barangay collection trucks or bring their collected waste to the respective MRFs for handling. Residual wastes are hauled by barangay trucks to the landfill for disposal.
Based on the information collected by the Consultant, 14 of the 33 barangays in Angeles City had their MRFs operating in compliance with RA 9003. However, according to the CENRO Officer, some of the barangay MRFs were not fully operated or functional. Surveys were then conducted on 4 of 14 barangay MRFs in August 2014. Details are shown below.
1. Barangay San Nicolas
As of 2015, Barangay San Nicolas has a population of about 3,424. Based on the on- site survey, it is understood that the barangay had no ordinance on anti-littering. Segregation of waste at source is implemented and reported to the CENRO.
The Barangay San Nicolas has two (2) existing waste collection systems. The garbage collection truck collects solid waste from households and commercial areas during day time. All waste collected is delivered to the barangay MRF for sorting and processing. Residual waste is then collected and dispose of at the city’s central MRF. During the night time, the truck collects solid waste from the barangay market and dispose of directly at the central MRF. Biodegradable waste from the market is collected by the City’s collection truck.
Based on the interview with the Barangay Chairwoman, the MRF started operating in 2011 under the former Barangay Chairman as a Barangay MRF. A visit to the MRF in 2014 revealed that this MRF has turned into a private MRF managed by the former chairman. It was used to accept solid waste from the nearby barangay which is part of the San Fernando city. The MRF has not collected any tipping fee.
The operator operating the former Barangay San Nicolas MRF is BRIMAJ, in which it currently receives mixed waste and sorted within its premises in a 500m2 lot. The MRF
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used to be a community-based cooperative, but it is now operated by the private sector. There are approximately 15 sorters and two (2) drivers working at the MRF. In addition, BRIMAJ owns a recycling shop from across the street, which mainly trade cardboard boxes and PET bottles but also accepts all kinds of plastic recyclable waste.
Since Barangay San Nicolas‘s MRF is no longer in use, waste is collected by small carts driven by waste pickers (Junkers) or eco-aides, whom are paid by the Barangay at a rate of PHP 4,100.00/month. The Junker collects mixed waste from the households, sorts out the waste and keeps the recyclables for them to sell afterwards. According to the interview with a Junker, there were six Junkers being hired and paid by the barangay. Two (2) of them work as day shift, while four (4) of them work as night shift. In the past, the households paid the Junker PHP 3.00/household to collect and dispose of garbage. There are also other waste pickers who are not hired and paid by the barangay, but they would be the competitors of the Junkers in the collection of recyclables.
The collected waste is then dumped onto the barangay collection truck, which it would transfer and dispose of all collected waste directly into the City’s central MRF. Due to the implementation of the waste segregation ordinance, only residual waste is collected and disposed of at the central MRF. There is an initial plan on converting an old rice mill into a barangay MRF.
Figure 3.5 A “Junker” employed by Barangay San Nicolas to collect solid waste from residential households
2. Barangay Lourdes Sur
Barangay Lourdes Sur has a land area of approximately 23 hectares and a population of 4,797 as of 2015. Waste is collected through six (6) garbage collectors who collectively earn from the household payment, which is about a total of PHP 15,000.00/month being divided among themselves. They are not under the payroll of the barangay. Barangay Kagawad (councilor) Bernard U. Dayrit, the person in-charge of solid waste management (SWM) in the barangay, personally provides them with gloves, raincoat and cleaning tools such as dustpan, brooms and thermos bottles. All
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recyclables collected in the garbage by these collectors are sold to junkshops. They keep the earnings for themselves.
The barangay has two collection vehicles, one (1) was donated by the councilor and the other one (1) was provided by the mayor’s office. There are also three-wheeled collection vehicles also donated by the councilor.
All collected waste is dumped into the barangay MRF for processing. The residual waste is collected by the city collection truck and disposed of at the City’s Central MRF / Transfer Station.
Figure 3.6 Material Recovery Facility in Barangay Lourdes Sur
3. Barangay Pulung Maragul
Pulung Maragul has a population of 18,067 as of 2015. Its MRF has been closed since March 2014. The current collection system is that the Barangay’s collection trucks collect all the waste within the Barangay and deliver to the City’s Central MRF. Some subdivisions have their own haulers. Yet, the haulers have no authorization and registration from the Barangay Office.
4. Barangay Pulung Bulu
Barangay Pulung Bulu has a population of 12,198 as of 2015. It has a 2,500 m2 MRF operated on a privately-owned lot. However, it is understood that the owner has a plan to convert the existing property into a memorial park, therefore, the long term status of this MRF is uncertain.
There were seven (7) operators at the MRF which includes the sorters. The barangay has two (2) collection vehicles which consist of one (1) multi-cab and one (1) “colong- colong”. Each collects garbage once a day and delivers them to the barangay MRF where waste is being sorted. The recyclables collected are given to the collectors. The City collector hauls the waste from the barangay MRF to the nearby City MRF. An ordinance also mandates the households to pay PHP 30/month of garbage fee, which
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is collected by the garbage collector. Payment collection is divided among the collectors.
According to the Kagawad (councilor) in-charge of SWM, ten percent (10%) of the Internal Revenue Allocation (IRA) of the barangay is spent on SWM.
Figure 3.7 Material Recovery Facility in Barangay Pulung Bulu
5. Barangay Balibago
Barangay Balibago has a population of 40,087 (more than 50,000 if transients are included) as of 2015. This barangay has a lot of commercial establishments. The barangay MRF sits on a 3,000 m2 lot donated by a private citizen. The barangay has one (1) new compactor dump truck, one (1) old and dilapidated truck (Isuzu Elf), one (1) trike, and one (1) colong-colong donated by the City.
The barangay has 33 garbage collectors who have their own tri-bikes and collect garbage fee of PHP 50/household. Each collector assigns the route by himself and the total collection fee from the route would be divided among the collectors. Each tri-bike has a capacity of approximately 1-2 cubic meters. The collectors collect the mixed waste from the households, deliver them to the MRF and sort for recyclables. The residual waste are collected by the City’s garbage trucks. On the other hand, the barangay’s trucks collect waste around the barangay’s subdivisions and directly dispose of to the City’s Central MRF / Transfer Station in the afternoons as they are not allowed to dispose of in the morning.
Currently, all these barangay MRFs are being ordered to close down and all waste are being brought to the new Central MRF in Barangay Anunas. Also, all unsegregated waste is being sorted by the informal waste sector at the new Central MRF.
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Figure 3.8 Material Recovery Facility in Barangay Balibago
3.4.3. Material Supply from Other Areas in the Pampanga Province
Various contract arrangements on material supply has been established between different parties in a solid waste management system. According to Angeles City CENRO, waste collection and disposal contracts have been established between stakeholders / waste generators and waste haulers, which include contracts between (i) collector and the waste source; (ii) city collector and the city; (iii) city and the hauler; and (iv) hauler and the Metro Clark Waste Management Corporation.
In Pampanga Province, waste collection and disposal are required to comply with RA 9003. To comply with RA 9003, Pampanga Province has implemented two schemes for waste collection and disposal. The first scheme requires Barangay MRF to segregate waste on site, while the second scheme requires the household to segregate waste at source. The process of the two schemes can be found in Figure 3.9 and Figure 3.10 below.
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Figure 3.9 Segregation at Source with Barangay MRF (Scheme 1)
* Courtesy of Pampanga PENRO
Figure 3.10 Segregation at Source without Barangay MRF (Scheme 2)
* Courtesy of Pampanga PENRO
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For some areas in Pampanga Province, it is found that there is an existing Memorandum of Agreement (MOA) on waste material supply between different LGUs and Holcim. Holcim collects the waste from the participated LGU without any charges, but the LGU requires segregating the waste to fulfil the RDF requirements for Holcim. The Pampanga Province introduces a “Holcimable” approach to each of the participated LGU on waste collection to segregate the waste and fulfill the RDF requirements for Holcim. Figure 3.11 shows the segregation process and workflow for a “Holcimable” approach.
However, it is also noted that only a few of the LGUs were able to fulfil the RDF requirements, including Barangay Mexico, Mabalcat, Sta. Rita, and Porac. Although there is an MOA in place with each of the LGU, LGUs were not able to fulfill obligations in the MOA due to various constraints and limitations. For instance, some LGUs have encountered difficulties in implementing the segregation policy and having budget constraints on the recruitment of “segregators”. It is found that only Barangay Mabalacat and Pampanga are able to segregate 1 MT of non-recyclable plastics per day. To comply with the requirements as suggested by Holcim, the LGUs would accumulate plastic waste for a while until the amount has reached 8 MT. Truck from Holcim would haul the “Holcimable” waste upon notification by the respective LGUs. However, as of August 2017, it appears that only very limited amount of RDF (if any) is being delivered to Holcim.
Figure 3.11 “Holcimable” Approach
* Courtesy of Pampanga PENRO
Other than Holcim, it has been reported in the news media that several cities in Pampanga Province were also planning to develop WTE facilities to improve their waste management practice. These include:
MacKay Green Energy, a subsidiary of the MacKay Group of Scotland, was planning to construct a 22-megawatt (MW) integrated waste management facility in Lubao, Pampanga, which would have an estimated capital cost of US$60 million. The facility would enable raw waste to be separated into component parts,
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recyclables and RDF. Ferrous and non-ferrous metals could also be recovered and refined for sale. In addition, the MacKay Energy system can also be expanded to allow the processing of electronic waste. A project proponent was planning to develop a PHP2 billion WTE facility in Porac, Pampanga. The facility would augment Porac’s existing MRFs. The waste segregation equipment and thermal treatment technology would be imported from Czech Republic. The city is considering to accommodate solid waste from other towns in Pampanga once the WTE facility is constructed. True Green Energy Group was planning to help the Philippines with US$240 million purchase of 30 RDF and gasification equipment. This purchase would cover the delivery and construction of the gasification systems to each one of the 30 sites under contract, which San Fernando, Pampanga, is one of them.
3.4.4. Associated Fees and Costs in Angeles City
Having evaluated the collection systems and material supply contracts, the costs and fees associated with the material fuel supply chain and landfill operations (such as potential tipping fees) have also been assessed through the interview and discussion with the sanitary landfills (Clark Landfill and Payatas Landfill) on operation costs. An interview discussion with the LGUs was also arranged to assess the existing and potential garbage fees from commercial and industrial sector including the City market. The Consultant has also taken into consideration of other costs and presented them in our findings.
In the existing solid waste management system, overhead costs and expenses would include:
a. The purchase and maintenance of waste collection trucks; b. Gasoline for the operation of waste collection trucks; c. Wages for operators of waste collection trucks and waste handling facilities; d. Tipping fee for the use of waste handling facilities; and e. Toll / passageway fee for the use of roads for waste collection.
In Angeles City, the total estimated solid waste management expenses paid by the City Government between 2010 and 2013 are amounted to an annual average of PHP 92.7 million, of which approximately 47.54% of the amount paid were accounted for hauling and tipping fee (see Table 3.2). The private contractor charges the city PHP 405.00 per/m3 of waste disposed of at Kalangitan ESLF, including the cost of hauling and transport.
Table 3.2 Solid Waste Management Expenses in Angeles City (2010-2013)
Year Total SWM Expenditure in Expenditure in Expenditure in Expenditure Tipping Fee PS* for SWM MOOE** for SWM (PHP) (PHP) (PHP) (PHP) 2010 166,280,538.70 51,971,341.00 17,200,219.76 36,867,019.00 2011 (31.26%) 18,374,637.00 41,867,322.97 2012 115,780,832.50 78, 231,408.75 19,318,015.00 18,231,408.75 (67.57%) 2013 88,756,851.34 46, 089,840.00 20,698,991.00 21,968,020.34 (51.93%) Total 370,818,222.50 176, 292,589.70 75,591,862.76 118,933,771.0 (47.54%) Annual 92,704,555.62 44, 073,147.42 18,897,965.69 29,733,442.75 average (47.54%) Remarks: *PS = Power Supply; ** MOOE = Maintenance and other operating expenses (includes maintenance and repair of government vehicles)
3.4.5. Associated Fees and Costs for Other Areas in the Pampanga Province
In Pampanga Province, waste that is not picked up by the truck from Holcim are considered as residual waste. The LGUs are responsible for hauling the residual waste to Kalangitan ESLF. According to available information, the cost of hauling to the Kalangitan ESLF is about PHP 700-800 per ton.
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Because of the arrangement between Holcim and some of the LGUs, hauling expenses for waste delivering to ESLF are reduced. Table 3.3 below shows the costs of SWM in each of the LGU in the Province of Pampanga (except Angeles City) and Table 3.4 shows the differences in SWM expenses between the two approaches, without segregation and with segregation and RDF supply to Holcim.
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Table 3.3 Costs and fees of managing solid waste in the different municipalities in Pampanga Province
PAMPANGA WEEKLY WEEKLY MONTHLY ANNUAL TOTAL ANNUAL TOTAL ANNUAL TOTAL 5% LGUs GENERATION TIPPING TIPPING TIPPING FEE NUMBER OF OVERHEAD ANNUAL INTERNAL OF WASTE (in FEE TO SLF FEE TO SLF (PhP) TRIPS COST EXPENSES REVENUE MT) (PhP) (PhP) (10mt/TRIP) @5,000.00/TRIP (in PhP) ALLOCATION Mabalacat 840 588,000.00 2,352,000.00 28,224,000.00 4,320 21,600,000.00 49, 824,000.00 11,018,978.40 Magalang 385 269,500 1,078,000.00 12,936,000.00 1,980 9,900,000.00 22,836,000.00 6,043,287.80 Porac 420 294,000.00 1,176,000.00 14,112,000.00 2,160 10,800,000.00 24,912,000.00 7,299,825.65 Sta. Rita 140 98,000.00 392,000.00 4,704,000.00 720 3,600,000.00 8,304,000.00 2,817,423.90 Lubao 560 392,000.00 1,568,000.00 18,816,000.00 2,880 14,400,000.00 33,216,000.00 8,475,375.55 Sasmuan 105 78,500.00 294,000.00 3,528,000.00 540 2,700,000.00 6,228,000.00 2,537,584.80 Guagua 420 294,000.00 1,176,000.00 14,112,000.00 2,160 10,800,000.00 24,912,000.00 6,190,288.70 Florida Blanca 420 294,000.00 1,176,000.00 14,112,000.00 2,160 10,800,000.00 24,912,000.00 6,707,014.85 Bacolor 119 83,300.00 333,200.00 3,998,400.00 612 3,060,000.00 7,058,400.00 2,702,618.15 San Fernando City 1,120 784,000.00 3,136,000.00 37,632,000.00 5,760 28,800,000.00 66,432,000.00 21,313,829.70 Sta. Ana 196 137,200.00 548,800.00 6,585,800.00 1,008 5,040,000.00 11,625,600.00 3,443,650.45 Sto.Tomas 140 98,000.00 392,000.00 4,704,000.00 720 3,600,000.00 8,304,000.00 2,739,682.85 Minalin 175 122,500.00 490,000.00 5,880,000.00 900 4,500,000.00 10,380,000.00 3,116,630.45 San Simon 175 122,500.00 490,000.00 5,880,000.00 900 4,500,000.00 10,380,000.00 3,360,268.55 Macabebe 273 191,100.00 764,400.00 9,172,800.00 1,404 7,020,000.00 16,192,800.00 4,578,116.60 Candaba 392 274,400.00 1,097,600.00 13,171,200.00 2,016 10,080,000.00 23,251,200.00 6,337,408.85 San Luis 210 147,000.00 588,000.00 7,056,000.00 1,080 5,400,000.00 12,456,000.00 3,404,768.25
* Courtesy of Pampanga PENRO.
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Table 3.4 Comparison of expenses for disposing of waste collected at ESLF (Metro Clark Waste Management Corporation) before and after Holcim’s involvement
Previous Disposal Expenses to Present Disposal Expenses to ESLF ESLF Daily P1,500,000.00 P771,400.00 Monthly P45,000,000.00 P23,142,00.00 Yearly P540,000,000.00 P277,704,000.00 At P800.00/MT Tipping Fee At P725.00/MT Tipping Fee and (exclusive of Hauling expenses to Hauling expenses (all-in) ESLF) * Courtesy of Pampanga PENRO. ** Estimated total waste generated/day at 1,064 MT – direct disposal.
3.5. Role of the Local Government Unit in the Waste and Energy Sector
As stipulated in RA 9003 (Sec. 10), there are several roles for LGUs in the waste and energy sector including:
The LGUs are primarily responsible for implementing provisions of the Ecological Solid Waste Management Act within their respective jurisdictions (while establishing a cooperative effort among the national government, LGUs, non- government organizations, and the private sector); The barangays shall conduct waste segregation and collection of solid waste for biodegradable, compostable and reusable wastes; and Municipalities or cities shall be responsible for the collection of recyclables and special waste (household hazardous wastes).
3.6. The Competitive Landscape
The Consultant has assessed the competitive landscape by profiling the existing entities which could be potentially competing for waste streams in the future such as current supplies to landfill as well as assessing the current demand in Angeles MRF, junkshop operators, consolidators, composting groups and waste pickers.
Based on the assessment above, if either the barangay MRFs or Holcim or both could compromise on the RDF quality, Holcim could still be competing for the material supply in Angeles City and in Pampanga Province potentially with the proposed MERF, as well as the ESLF of Metro Clark Waste Management Corporation. Private MRFs, such as BRIMAJ in Angeles City, could also be a potential competitor on material supply. Other Barangay MRFs in Angeles City would be closed when the proposed MERF is developed.
In addition, if SURE Global is considering expanding their service catchment to outside of Angeles City, WTE Projects planning to be developed in Pampanga Province, e.g. in Lubao, Porac and San Fernando, could be possible competitors for material supply once erected.
3.7. Political, Environmental & Regulatory Considerations
Relevant political, environmental and regulatory considerations in the Philippines in waste management and WTE development were identified which shown as below.
1. Republic Act No. 9003, Ecological Solid Waste Management Act 2000. The act contains the most comprehensive policy framework on solid waste management in the Philippines. It also clearly stipulates the establishment of an ecological solid waste management program, as well as the necessary institutional mechanisms and incentives. In addition, it also declares certain solid waste practices prohibited with corresponding penalties. This is the latest law on solid waste management, overriding all legal stipulations on SWM that came before it. 2. Department Administrative Order (DAO) 01-34, The Implementing Rules and Regulations (IRR) of RA 9003
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3. Republic Act No. 6969 (Toxic Substances and Hazardous and Nuclear Waste Act of 1990). The act calls for the regulation of and restriction on the import, manufacture, processing, sale, distribution, use and disposal of chemical substances and mixtures that pose risk and/or injury to health and natural environment. It prohibits the entry, transport and disposal of hazardous and nuclear wastes into the Philippine territory. It also mandates to provide advanced studies and research on toxic chemicals. 4. Republic Act No. 7160 (Local Government Code (LGC) of 1991). The LGC has devolved certain powers and functions to the LGUs, including enforcement of laws and cleanliness and sanitation, solid waste management, and other environmental matters. 5. Republic Act No. 8749 (Clean Air Act of 1999). This law mandates all government agencies to adopt the integrated air quality framework as a blueprint for compliance. Among its salient provisions are the “polluters must pay” principle, and the prohibition of the use of the incineration method, which is defined as the burning of municipal, biomedical and hazardous waste or the process, which emits poisonous and toxic fumes. It further mandates LGUs to promote, encourage, and implement segregation, recycling and composting within their jurisdiction. It also requires the phasing out of incinerators by July 2003. 6. Republic Act No. 9275 (Clean Water Act of 2004). The act protects the Philippines’ water bodies from pollution from land-based sources (industries and commercial establishments, agriculture and community/household activities). It provides for a comprehensive and integrated strategy to prevent and minimize pollution through a multi-sectoral and participatory approach involving all the stakeholders. 7. Republic Act No. 9513 (Renewable Energy Act of 2008). The act promotes the development, utilization and commercialization of renewable energy and for other purposes. The Act declared the policy of the government to: i) accelerate the exploration and development of renewable resources i.e. solar, geothermal, ocean, wind, and biomass, including hybrid systems for energy self-reliance, reduction of dependence on fossil fuel and bring down cost of fuel; ii) increase utilization of renewable energy by institutionalizing national as well as local capabilities and provide both fiscal and non-fiscal incentives on the promotion of efficient and cost effective energy systems; iii) encourage the use of renewable energy technologies to reduce air pollution, to protect the environment and health; and iv) establish the necessary infrastructure to implement the provisions of the law. Section 30 of RA 9513 provides for the use of “waste to energy” technology subject to requirements of RA 9003 and RA 8749 (Clean Air Act). Specifically, waste to energy technology refers to “systems which convert biodegradable material such as but not limited to animal manure or agricultural waste, into useful energy processes such as: anaerobic digestion, fermentation, and gasification, among others, subject to the provisions of the Clean Air Act of 1999 and the Ecological Solid Waste Management Act of 2000”. The Renewable Energy Act of 2008 also provides a series of incentives for renewable energy generation, including but not limited to: reduced corporate tax rate, VAT-free importation and energy transactions, tax rebates for equipment, accelerated depreciation, operating loss carryover, renewable portfolio standards, net metering and cash incentives for distributed energy. A feed-in-tariff for biomass and biogas is also in place, and subject to the following Guidelines:
"a. ERC Resolution No. 16 Series of 2010, or the "Resolution Adopting the Feed-in- Tariff Rules"; "b. ERC Resolution No. 15 Series of 2012, or the "Resolution Adopting Amendments to the Feed-in-Tariff Rules"; "c. ERC Resolution No. 24 Series of 2013, or the "Resolution Adopting the Guidelines for the Collection of the Feed-in-Tariff Allowance (FIT-ALL) and the Disbursement of the FIT-ALL Fund."
8. Presidential Decree 1586 - The Philippine Environmental Impact Statement (EIS). This provided the legal and procedural framework for conducting EIAs for projects that may potentially have significant environmental impacts. The DENR through the EMB is designated to be the implementing agency. The EIS System was designed to safeguard the Philippine environment and its natural resources in the midst of growing
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urbanization and industrialization in the country. This was revised through Administrative Order (DAO) 96-37 and revised the implementing rules and regulations. In 2000, the DENR issued DAO 2000-05 that highlight the importance of public participation and social acceptability in the environmental review process. 9. National Solid Waste Management Commission Resolution (NSWMC) Guidelines on Waste to Energy – The National Solid Waste Management Commission has issued NSWMC Resolution No. 669, Series of 2016, entitled “Adopting the Guidelines Governing the Establishment and Operation of Waste To Energy Technologies for Municipal Solid Wastes”, on 9 June 2016. According to Section 14, on Environmental Monitoring, it stipulates that a) Emissions from WtE facility must conform to the standards specified on Section 19 of RA 8749 or approved by DENR-EMB. Section 19 of RA 8749 further provides that “The Department shall, within two (2) years from the effectivity of this Act, and every two (2) years thereafter, review, or as the need therefore arises, revise and publish emission standards, to further improve the emission standards for stationary sources of air pollution. Such emission standards shall be based on mass rate of emission for all stationary source of air pollution based on internationally accepted standards, but not be limited to, nor be less stringent than such standards and with the standards set forth in this section. The standards, whichever is applicable, shall be the limit on the acceptable level of pollutants emitted from a stationary source for the protection of the public’s health and welfare.
The purpose of the Guidelines is to set the registration and permitting requirements, standards and procedure for the establishment and operation of commercial scale waste-to-energy technologies using municipal solid wastes, including the following5:
a) Pre-operation phase
b) Waste delivery control
c) Quality control
d) Operational control
e) Pollution abatement
f) Environmental monitoring
g) Documentation and monitoring
h) Social safeguards
i) Decommissioning or Closure
A WTE facility must be registered with the Environmental Management Bureau (EMB) upon meeting the specified conditions, including notification by the host LGU to the NSWMC of the WTE facility that will be established within its jurisdiction by submitting an updated 10-year solid waste management plan.6
In its Resolution No. 196, Series of 2015, the NSWMC approved the 10-year SWM Plan (2016- 2025) of Angeles City on October 27, 2015.
It is noted that the Angeles City 10-year Plan (for 2015-2024) provides for a reference to the 2013 Memorandum of Understanding between the LGU and the Proponent for the conduct of a feasibility study on the proposed MERF in Angeles City.
5 Section 3, Guidelines Governing the Establishment and Operation of Waste-to-energy Technologies for Municipal Solid Wastes, 2016 6 Section 5, Ibid.
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Further inquries with the office of the City Environment and Natural Resources Office (CENRO) of Angeles City reveal that LGU has not yet filed a request for the amendment of its 10-year Plan and inclusion of more detail regarding the MERF to be developed in Angeles City.
3.8. Market & Industry Trends within the Waste and Energy Sector
The market and industry trends within the waste and energy sector would have an influence on the composition of material supply to the MERF. Particularly, the supply of plastic waste would have significant impacts on the MERF operation. Therefore, desktop research, interviews and discussions were conducted on major industries, such as recycling company, plastic manufacturer to assess the market and industry trends in the future.
In 2015, the Angeles City Council has approved an ordinance regulating the use and distribution of plastic bags and polystyrene foam in the city. The ordinance, which is also known as “Plastic Bag and Styrofoam Ordinance of Angeles City” aims to reduce the amount of non- biodegradable material and assist in addressing the problem in solid waste management in the city. Under the ordinance, business establishments are prohibited from using non- biodegradable plastic bags on secondary packaging for dry goods and use of styropor and ultrathin polystyrene plastic materials or sando bags as containers for food and other products. Plastic waste in the city could potentially be reduced following the enforcement of the ordinance. For instance, major fast food chains in the city, such as Jollibee and McDonald’s, have switched from plastic cups to paper cups on food serving in order to comply with the regulations. These actions could further influence the recycling plastic industry as well as the waste pickers.
According to the Polystyrene Packaging Council of the Philippines (PPCP), the following was observed during a three-year implementation of their recovery project:
Figure 3.12 Amount of Recovered Polystyrene Packaging by Weight in Metric Tons
Amount of Recovered Polystyrene Packaging 100 90 80 70 60 50 40 30
Weight (Metric Tons) Weight(Metric 20 10 0 2012 2013 2014 2015 (Jan - Aug) Year
Source: PPCP, 2015.
With the current regulations on the use of polystyrene packaging by many LGUs in Metro Manila and surrounding areas, the materials being recovered are also becoming smaller as reflected in the above figure. It is expected that a similar trend could be developed in Angeles City.
Further, it was also reported that currently the prices of recyclable materials, especially plastic waste (e.g. PET bottles), and also other waste (e.g. aluminum cans and paper) have been reduced.
In addition, an interview was conducted with a plastic recycling company owner. During the interview, he has explained the decreasing trend on recyclable material, which was due to the downward trend of crude oil price in the global market. Since plastic is a by-product of petroleum, the fluctuations on oil process has also affected the plastic recycling industry, especially when
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the government does not offer support or provide incentives on the recycling industry. Out of the 20 plastic recyclers in the city, only seven (7) is still running business on recycling plastic waste.
3.9. Waste Generation Forecast & Anticipated Changes to the Waste Sector
Waste generation projection is important for the planning of the MERF in the long run. The Consultant has conducted a desktop research and analysis based on available information such as the Angeles City Solid Waste Management Plan on waste generation projection, while in Package 2 of this Project has projected the waste generation rate from 2014 to 2022 based on the field data from the sampling in Angeles City and population data.
3.9.1. Desktop Review on Waste Generation Projection
According to the City Ecological Solid Waste Management Plan (2012-2022), it is anticipated that the solid waste generation in the city could potentially increase due to the increasing trend in population and no. of tourists in Angeles City. Figure 3.13 below shows the projection of daily waste generation in Angeles City from 2012 to 2022 based on the City Ecological Solid Waste Management Plan (2012-2022).
Figure 3.13 Projected Daily Solid Waste Generation in Angeles City from 2012 to 2022
Projected Daily Waste Generation 300
250
200
150
100 Weight (Metric Tons) Weight(Metric 50
0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year
Source: Angeles City Solid Waste Management Plan (2012-2022).
The increasing trend is consistent with the data on the amount of waste collected in the city from 2010 to 2013, shown below (Figure 3.14):
Figure 3.14 Annual Waste Collected in Angeles City
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Average Daily Amount of Waste Collected in Angeles City
200 180 160 140 120 100 80 60 40 Weight (Metric Tons) Weight(Metric 20 0 2010 2011 2012 2013 Year
Source: Angeles City Solid Waste Management Plan (2012-2022).
Following the closure of the City TrS / Central MRF in Barangay Pampanga in October 2014, the CENRO’s strategy was to cluster the barangays and set up new MRFs to collect waste from the barangays, which is in accordance with RA 9003. According to the City Environment and Natural Resources Officer, all of the waste collected (mixed, non-segregated) by barangay collection trucks are hauled to the barangay MRFs, where sorting and handling would take place. Residual waste is then hauled to the Kalangitan ESLF for final disposal. As of August 2017, a new Central MRF is set up in Barangay Anunas.
3.9.2. Waste Generation Projection from the Sampling Data
Under Package 2 of this Project, a waste assessment and characterization study (WACS) and a waste density study was conducted at Angeles City’s Transfer Station (TrS). In order to project waste generation quantities for the city, a reliable estimate on the weight of the waste disposed of by the city is needed. Since there were no weighbridges at the TrS, CENRO’s estimate of 200 tons per day (tpd) of MSW disposal rate was obtained based on the volume of waste received at the TrS. This volume estimation process as observed by the team could only provide a very rough estimate on the quantity of waste being handled by the TrS due to the possible existence of:
i) Measurement errors;
ii) Visual inspection errors; and
iii) Estimation or judgement errors in the actual void space or density.
As a result, the team would like to find out the actual weight of the MSW from the City by synthesizing the waste disposal records provided by the Kalangitan ESLF. Amount of waste delivered to the Kalangitan ESLF and the number of truckloads were recorded during the two- week sampling period (2-14 May 2014) during the study. The Consultant managed to do this by requesting an area to be set aside for newly arrived waste loads during the said period.
Table 3.5 below summarizes the records. The average weight of waste delivered to the landfill during the two-week sampling period was about 128,741 kg/day (or 128.741 tpd). This daily waste arising figure represented post-waste picking figures as the waste pickers were allowed to pick any materials they want from the designated disposal area and for as long as they want. However, this amount should be treated as the lower bound of the waste disposal rate of Angeles City because some truck drivers, especially those hauling relatively pure truckloads of biodegradable waste, were not aware of the newly set up waste disposal area in the TrS during the said period and dumped the waste in the “old waste area” instead. Assuming there was about 17 tonnes of waste mis-disposed of in the “old waste area” every day (i.e., the upper
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bound of a landfill truck’s capacity), total daily waste disposed of at the TrS would amount to about 145 ton. This is still less than the original official estimates (200 tpd) made by the TrS office.
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Table 3.5 Amount of Waste Delivered from the TrS to the Kalangitan ESLF during Dry Season WACS
Date Biodegradable (B) No. of Total Weight of Average or Non- Trucks Waste to Weight Per Biodegradable (NB) Landfill Truckload waste (kg) (kg) 2 May 2014 (Fri) NB 6 92,320 15,386.67 3 May 2014 (Sat) B 8 127,580 15,947.50 4 May 2014 (Sun) B 3 53,340 17,780.00 5 May 2014 (Mon) B 9 158,300 17,588.89 6 May 2014 (Tue) NB 14 228,810 16,343.57 7 May 2014 B 8 134,040 16,755.00 (Wed) 8 May 2014 (Thu) B 6 94,040 15,673.33 9 May 2014 (Fri) NB 7 107,550 15,364.29 10 May 2014 B 8 138,700 17,337.50 (Sat) 11 May 2014 B 3 50,560 16,853.33 (Sun) 12 May 2014 B 11 192,380 17,489.09 (Mon) 13 May 2014 NB 11 168,250 15,295.45 (Tue) 14 May 2014 B 9 123,320 15,415.00 (Wed) 15 May 2014 B 8 131,180 16,647.50 (Thu) Daily Average 128,741 16,385.18
* Since Kalangitan ESLF was not willing to disclose their records on the amount of waste received from Angeles City during the Consultant’s wet season WACS, the analysis is only limited to the dry season.
Since it was projected that the population of the City is about 377,617 in 2014 (Angeles City 10-Year Solid Waste Management Plan (2012-2022), undated), this averaged out to be 0.384 kg/day/capita of MSW. However, this figure does not include the amount of industrial or commercial waste that are not disposed of through the TrS and it also does not include the amount of recyclables retrieved through the waste management streams, e.g. by householders, haulers and at the TrS.
Based on the population projection stated in Angeles City 10-Year Solid Waste Management Plan (2012-2022), and assuming that the per capita MSW disposal rate remains the same in the next 8 years, it is estimated that by 2022, total MSW (excluding certain industrial and commercial sources) arriving at the TrS would amount to about 175 tpd. Table 3.6 stated the projection.
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Table 3.6 MSW Generation Projection (2014-2022)
Year Population Amount of Waste Waste Disposal Rate Disposed of (tpd) (kg/day/capita) 2014 377,617 145 0.383987 2015 386,567 148 0.383987 2016 395,729 152 0.383987 2017 405,107 156 0.383987 2018 414,708 159 0.383987 2019 424,537 163 0.383987 2020 434,599 167 0.383987 2021 444,899 171 0.383987 2022 455,443 175 0.383987
These estimates are likely to be at the lower bounds because waste from industrial and commercial sources are not taken into account as mentioned above.
It is also noted that the waste generation projection value derived from the desktop review and field data are very different. For instance, it is estimated that by 2022, total MSW arriving at the TrS could be amounted to about 175 tpd, while the city government estimated that the waste generation rate in the city would be slightly above 250 tpd by 2022. It appears that the city could only achieve the lower range of waste generation rate based on the field data. As such, the City government could have over-estimated the amount of waste that would be disposed of in the future or they might have under-collected in the city.
In addition, based on the 2016 MSW collection records provided by the new Central MRF (Table 3.7 below), it could be further demonstrated that the City government may have over-estimated the current and future amount of waste that would be dispose of in Angeles City.
Table 3.7 Amount of Waste Collected at the New Central MRF in 2016
Month Number of Truck Amount of Waste Average Daily Trips Collected (tons)1 Collection (tons) January 287 4,282.40 142.75 February 303 4,593.26 153.11 March 330 4,367.94 145.60 April 319 4,136.14 137.87 May 305 4,601.74 153.39 June 405 6,335.71 211.19 July2 333 1,218.44 40.61 August2 437 2,184.68 72.82 September2 337 2,733.11 91.10 October2 480 3,426.14 114.20 November 489 5,784.43 192.81 December 433 4,650.34 155.01 Average 371.5 4,026.19 134.21
The new Central MRF does not have a truck weighing system, so the records on the tonnage of waste collected is only an estimated figure based on the volume of truck hoppers multiplied by the estimated density of waste in the truck hoppers.
The new Central MRF was not able to record the truck hoppers volume from 4 barangays, which resulted in the drastic drop in the record of waste collected.
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3.10. Joint Venture Agreement between SURE Global and Angeles City
On 21 March 2017, SURE Global (through SURE Global W2WI Philippines, Inc. – a 100% owned Philippine corporation) has entered into a 20-year Joint Venture Agreement (the “JVA”) with the Angeles City local government unit (“LGU”) for the development and operation a Material and Energy Recovery Facility in Angeles City. Prior to signing the JVA, SURE Global went through an unsolicited bid process in line with the requirements of the BOT, PPP and Procurement Laws.
The JVA shall provide for, among others:
1. An obligation by the LGU to provide rent free usage of a portion (3 hectare) of the abandoned sports complex site located in Barangay Capaya for the Project (Section 3.1-b); In this regard, the CENRO has indicated that there is no plan to execute a lease agreement containing detailed lease terms and conditions over the designated site; 2. An obligation on the part of the LGU to deliver all its collected MSW to the Waste to Worth Facility at a minimum weekly average of 230 tons per day (Section 3.1-c); The LGU shall pay tipping fee in accordance with the scale indicated in the JVA, where if the LGU can deliver a minimum weekly average of 230 tons per day, tipping fee to the Waste to Worth Facility will be exempted. However, if the LGU deliver less than the minimum weekly average of 230 tons per day to the Waste to Worth Facility, then the LGU will be charge a tipping fee; 3. SURE Global will develop and operate, and will get all revenues generated by the Project (Section 3.2), subject to a revenue sharing scheme when MSW delivered exceeds 250 up to 270 tons per day; 4. The term of the JVA shall be 20 years subject to review and extension after 20 years (Section 5); On May 23, 2017, the Angeles City Council issued Resolution No. 7712- S-2017 (PR320-05-17) ratifying the JVA; 5. The JVA does not provide for specific penalties or liquidated damages in case of failure of the LGU to deliver the required tonnage of MSW. However, the LGU savings will be reduced under the tipping fee scale. The LGU may acquire MSW from other local governments to ensure meeting the minimum; and 6. SURE Global has reported registering a special purpose company (the “SPC”) with the Securities and Exchange Commission (SEC), which shall serve as the corporate vehicle for the Project (Section 3.2-c). The LGU will not own equity in said SPC.
The provision for rent free usage (and no lease agreement) and delivery of the MSW (without award of the hauling service) may have contemplated that SURE Global W2Wi Philippines, Inc. is a foreign-owned company and not qualified to an award, as discussed in Section 10.
It is also noted that some of the JVA contract terms may need clarification. Section 3.1(a) of the JVA particularly provides that the City "shall review and translate the agreement to a legal contract, and also provide a 20-year JVA contract, as desired". However, the Angeles City CENRO has indicated that there is no intention to execute another and more detailed agreement.
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4 TECHNOLOGY AND PROCESS ENGINEERING REVIEW (TASKS 2 & 3)
4.1. Components of the Proposed MERF
4.1.1. The MERF
The proposed MERF in Angeles City will consist of three major components and a series of ancillary and supporting facilities, including:
. Waste Preparation Facilities; . Anaerobic Digestion Unit; . Thermal Processing Unit; and . Ancillary and supporting facilities.
The list of major components of the proposed MERF, is presented in Table 4.1. The simplified process flow diagram and indicative site layout of the proposed MERF are shown in Figure 4.1 and Figure 4.2 below. The actual site layout will be prepared during Front-End Engineering Design (FEED).
Table 4.1 Major Onsite Components of the Proposed MERF
Waste Reception & Anaerobic Digestion Unit Preparation Facilities MSW reception and storage area Buffer tanks Waste feeding system Anaerobic digesters Bag Opener and Pre-Shredder Biogas cleaning and storage Drum Magnet Digestate handling and storage Disc Screens and Fine Screens CHP Engine OREX Press Emergency Flare CLEANREX Dynamic Cyclone Process control and monitoring system Air Winsifter RDF Shredder Thermal Processing Unit Ancillary and Supporting Facilities RDF storage Weighbridge Weigh Hopper Site security Gasifier Administration building and control room Char Reactor / Ash Storage and Vehicle washing facilities Handling Maintenance workshop Hot Producer Gas Thermal Wastewater treatment plant Oxidizer Ventilation and odor control system Steam Turbine Flue gas treatment system Emergency Flare Cooling tower Process control and monitoring Utilities (including transformers for system electricity supply and export, water supply, drainage and sewerage piping, and road access, etc.) Source: SURE Global
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Figure 4.1 Simplified Process Flow Diagram of the Proposed MERF
Oth B O U
C
C h
l E
Heat + C Heat CH H2S Electricit O for P DR Y
Source: SURE Global
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Figure 4.2 Indicative Layout of the Proposed MERF in Angeles City
Source: SURE Global
4.1.2. Offsite Supporting Facilities
Major offsite supporting facilities would include the followings.
Access Roads
The Project will require the use of the existing access road within the Gatchalian Industrial Park in Barangay Banay-Banay, and the use of a new road planned to be constructed by International Container Terminal Services Inc. (ICTSI) in Barangay Niugan. These two roads will connect to the NIA road to access the project site, and will be approximately 12.2 m and 10 m wide, respectively.
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Transmission Facility
The transmission facility of the Project will consist of a substation and a transmission line. The transmission line will have a voltage of 115 kV that will connect to a Manila Electric Company (MERALCO) line, with a tapping point that will be approximately 2 km from the project site. The route and tapping point of the transmission line will be determined by MERALCO. The transmission line of the Project will be designed after the application for a Distribution Impact Study (DIS) and Distribution Asset Study (DAS) with MERALCO. Similarly, the design of the substation will be finalized during the FEED, and for approval by the distribution utility where the Project will connect.
4.2. Approach of the Technology and Process Engineering Review
The technology and process engineering review would focus on the three major components of the proposed MERF. They are the Waste Preparation Facilities, Anaerobic Digestion Unit, and Thermal Processing Unit.
AECOM has reviewed a number of documents prepared by SURE Global, key technology suppliers (i.e. DB Technologies, Anaergia and ICM) and other third-party auditors on the three major components, including information such as the site layout plan, process flow diagrams, technical specifications, equipment lists, budgetary proposals and performance test reports to come up with the preliminary technology review.
According to the current design (as per the model derived by SURE Global for the Waste to Worth Project) of the Angeles City MERF, it is estimated that around 230 tpd7 of MSW would be delivered to the MERF for processing. In the Waste Preparation Facilities, also known as front-end of the MERF (i.e. the MRF), the MSW would first go through manual picking and mechanical separation to remove recyclables and inert materials from the incoming waste stream. Then, the MSW would be separated into two fractions by an organic extrusion press. The wet organic fraction would be delivered to the anaerobic digestion facilities and the dry (inorganic) fraction would be delivered to the thermal processing facilities for further treatment and subsequent energy generation.
Based on the preliminary information provided by suppliers of the Separation and Cleaning Technologies, Anaerobic Digestion (AD) System and the Gasification System, AECOM has conducted a high-level technology review in the following sections. Detailed design documents have yet to be made available for the Consultant’s review.
In addition, it shall be noted that the Consultant has yet to receive information on the Balance of Plant or process unit termination point details to understand the full picture on how the technologies would be integrated. Furthermore, while it is understood that emission control on pollutants such as NOx, SOx, heavy metal, dioxin and particulate matters will be installed at the MERF, relevant equipment design and specifications from the power generation and emission control suppliers have not been received.
4.3. Understanding & Integrating the Technology Approaches
The integration of selected technologies (as selected for the Waste to Worth Project) was reviewed to determine their feasibility to the project. The major technologies include:
i) Separation and cleaning technologies:
After recyclables are picked out at the waste reception area by the waste pickers, waste will be conveyed to a bag opener and mechanical sorting systems before being fed into an organic extrusion press, called OREX. OREX separates the waste stream into a wet (organic) fraction and a dry (inorganic) fraction by a very high pressure in a perforated extrusion chamber that fluidizes the organic waste. The soluble inorganic fraction is separated from the material that is
7 According to the City Environment and Natural Resources Office (CENRO) of Angeles City.
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mechanically more resistant (inorganic or solid fraction). The soluble organic fraction is pressed through a perforation. When the compression phase is completed, the door of OREX would be unlocked. The solid fraction could be evacuated sideways with the solid fraction cylinder.
After OREX, the organic wet fraction would pass through a dynamic cyclone, called CLEANREX, to separate and remove stones and plastics prior to entering the Anaerobic Digester. The material is brought into a buffer tank where it is mixed with either process water coming from the digester or clean water to make the material more liquid. From here, the material is pushed with an auger into a cylindrical chamber that works as a cyclone that forces material outside of the cylinder through a strong centrifugal force.
Anaergia has suggested that a grit removal system will also be required to ensure that entrained grit does not settle out in the AD system, thus significantly reducing the operational time. The grit removal system could either be a hydrocyclone or by natural grit settling in the buffer tank. Due to the relatively small amount of designed throughput for the MERF in Angeles, Anaergia has suggested that natural grit settling in the buffer tank would be sufficient and cost-effective. The Consultant, however, do not agree with this approach as it is believe that significant grit/glass will settle out in the AD tank, leading to maintenance downtime.
Technology for mechanical separation for this Project will be sourced from DB Technologies BV, an Anaergia company.
ii) Bio-treatment technologies:
From the CLEANREX and buffer tank, the organic wet fraction would enter a bolted steel digester tank to produce a methane-rich biogas and digestate. Biogas will be combusted in a reciprocating gas engine to produce electrical power and heat, while the dry fraction and wet fraction of the digestate will be supplied to farmers as organic fertilizer and recycled as process water respectively. The digester tank will be designed with a hydraulic retention time of approximately 18 days. Feed from the mixing tank will be intermittently pumped into the digester where it will be mixed using two hydraulic mixers and recirculated to maintain homogeneity. A Digester Heat Exchanger will be used to maintain the mesophilic temperature range (32˚C to 45˚C) in the digester. Hot water used by the heat exchanger will be supplied by a heat loop that is pumped from the Combined Heat and Power (CHP) system.
Technology for anaerobic digestion for this Project will be sourced from Anaergia Asia Inc., an Asian operating arm of Anaergia, Inc.
iii) Thermal treatment technologies:
Dry inorganic material coming from OREX will be conveyed into a gasifier to produce Syngas or Producer gas. The Syngas is then combusted in a Thermal Oxidizer to ensure complete combustion, and the heat being removed by a boiler. After that, the steam would be used to produce power with a high-efficiency turbine generator set. The solid residual or char would be combined with recovered ash and cooled for safe handling. The flue gas is processed with emission control equipment to meet the most stringent requirements in accordance with the best standards, meeting all regulatory targets, and is exhausted through a stack. For this Project, the gasification technology will be sourced from ICM, Inc.
It shall be noted that biogas and Syngas will be combusted in separate systems for heat and power generation.
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4.3.1. Separation & Cleaning Technologies
DB Technologies BV was established in 2008. As a subsidary of Anaergia, DB Technologies BV has more than 60 years of experience in waste separation areas with wide knowledge of generating quality products through efficient waste separation.
AECOM paid a visit to an AD Facility that included the OREX of DB Technologies BV. The facility was located nearby Kaiserslautern, Germany and the visit took place on 9 May 2014. AECOM were showed around the facility and introduced to the OREX technology by Mr. Wibo Koggel of DB Technologies. The AD Facility was designed to treat around 70,000 tons per annum of residual MSW. However, the AD facility in Kaiserslautern was using a different AD system to that being considered for this project, hence, that AD system was not being studied on site. The dynamic cyclone (or CLEANREX) was also not installed at this site, so the Consultant was not able to inspect this equipment on site.
Based on the Consultant’s understanding, at the beginning of the treatment process, following manual picking, waste is being fed into a feed hopper to the OREX without pre-treatment or removal of large items and/or metals. The OREX would then separate the waste into two fractions, a wet organic fraction and an inorganic dry fraction.
The separation process consists of a chamber with a very strong mesh, in which waste is compressed using an extremely high pressure depending on the required Calorific Value of the dry fraction of waste. The extremely high pressure converts the wet organic fraction into liquid slurry and this is pressed through the mesh. This wet organic fraction can then be treated in AD Facilities following further separation of the non-digestable parts.
The dry (inorganic) fraction would remain inside the chamber. This dry (inorganic) fraction would then undergo additional separation process, if required, by sorting out recyclables before forming RDF. The OREX can process up to 35 tons of waste per hour.
4.3.2. Bio-Treatment Technologies
Anaergia was established in 1960s. They position themselves as a global leader in the production of clean energy, fertilizer and recycled water from organic waste streams, and offers the widest range of anaerobic digestion technologies for municipal, industrial, commercial and agricultural markets. Anaergia delivers solutions globally through offices established across North America, Europe and Asia.
On 9 May 2014, AECOM also paid a visit to the AD Facility of Anaergia in Bieringen, Germany. AECOM were showed around the facility and introduced to the technologies by Mr. Tim Huang of Anaergia. The facility is based upon UTS technology, part of the Anaergia group of companies. 50 tpd of maize silage was being digested in the facility. The digestion approach is the UTS Triton system.
This maize silage was pre-chopped, forming small particle size and homogeneous feedstock (when compared to typical waste), and fed into a solids feeding / dosing hopper system. The maize is fed into dosing system using a wheeled loading shovel. The maize is then screw-fed into the outer section of the digesters.
The triton digesters have two rings providing an inner section and an outer section. The maize silage is delivered into the outer section which serves as a primary digestion area. Then, it is pumped into the central ring which is a secondary digestion area. The outer ring (primary digestion) operates at a higher rate with a higher solids concentration whilst the second stage is a lower rate with a lower solids concentration. This approach, according to Anaergia, reduces the footprint size of the digestion plant.
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The digester would mix the maize using a hydraulic operated mixing system. There were five mixers, and the mixers were positioned in the outer ring and in the inner ring. Each mixer had a service box to allow easy access for maintenance if required.
The hydraulic systems for the mixers were located in a central distribution room along with the chopper pump for moving the contents of the tank from the outer section to the inner section. The same pump was used to feed the digestate separator. The digestate separating device separates the fibers from the liquor. The separated digestate is located in an elevated position above a concrete bay for the fibrous material to be collected. The separator is a compact screw filter press, where the liquor separated is sent to the adjacent tank. The fiber and the liquor would both be used as fertilizers in agricultural land use. The digester would be heated via hot water pumps in the wall of the digester.
For biogas generated in the digesters, it would be cleaned in two ways:
Small injection of oxygen to reduce the hydrogen sulfide concentration; and Use of an activated carbon unit upstream of the gas engines to further reduce the concentration of contaminant gases8. Note that waste derived biogas may contain different contaminant gases that would require further treatment. The expected treatment requirement shall be confirmed with Anaergia.
The biogas generated at the Bieringen plant was used to produce power and also heat in CHP reciprocating engines. The majority of the heat was exported in order to gain renewable energy financial credits.
In addition to Bieringen, Germany, AECOM paid a visit to another Anaergia’s facility in Cape Town, South Africa, on 8 May 2017, where Anaergia’s separation and bio-treatment technologies were installed at the same facility. AECOM were showed around the facility and introduced to the technologies by Mr. Bruce Thorndike of Anaergia. Again, the facility is based upon UTS technology, and the designed capacity is 500 tpd of MSW. The digestion approach is the UTS Helios system. More details can be found in Section 5.3 below.
4.3.3. Thermal Treatment Technologies
AECOM understand at the start of the Waste to Worth Project for Angeles City, SURE Global has considered various thermal treatment technologies, which includes mass burn, gasification and plasma gasification. A comparison of the thermal treatment technologies can be found in Annex A. Then, based on the designed capacity, the footprint of technologies and cleaner flue gas emission, gasification is selected for the Waste to Worth Project for Angeles City. It should be noted that mass burn technologies do not have a significant track record at throughputs as low as those identified for the projects outlined in this document.
Afterwards, during inception stage of the TA, the selected gasification technology supplier was Concord Blue Energy. AECOM met with Concord Blue Energy’s technical personnel, Mr. Sebastian Flahs in particular, at their office in Herten, Germany on 13 May 2014.
However, for commercial reasons, the selected gasification technology supplier has now changed and become ICM. Headquartered in Colwich, Kansas, USA, ICM was founded in 1995 and is specialized in biofuel technology. Their equipment and processes are being used in many of the ethanol plants in USA. In addition, ICM has pioneered technology in power plants and grain processing facilities outside the ethanol industry in USA and around the world, including Canada, Mexico, Argentina, Hungary, India, and Mozambique. Particularly, ICM’s proprietary gasification technology, air-
8 Subject to confirmation with Anaergia on whether the gas generated will be used in a CHP engine or other systems.
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blown gasification system, is based on platform technology developed in the early 1980s (which was supported by the U.S. Department of Energy and Boeing Company).
AECOM began communications with ICM on technical aspects since September 2015. According to ICM, their process design typically consists of the feed system, the gasifier, biochar / ash handling system and a Syngas combustor, all of which are modular in construction. Particularly, the gasifier is a horizontal, positive-displacement auger-transport gasification unit comprised of multiple air injection zones, allowing for the injection of air both at the top and bottom of the biomass bed. A visit by AECOM to ICM head office in Colwich, Kansas, USA, on 27 April 2017 provided a presentation of the basic operating system of the ICM gasifier together with a visit to an operational gasifier in Newton, Kansas, USA, being fed with waste wood.
4.4. Separation & Cleaning Process
4.4.1. Initial Technology Review of the Separation & Cleaning Process
The separation and cleaning system is designed specifically for the separation of organic and non-organic waste fractions, and pre-treatment for anaerobic digestion. It can turn household / municipal solid waste into relatively cleaner and purer products for subsequent treatment. According to DB Technologies, the separation system can achieve a separation efficiency of up to 98 percent, which is an improvement of 30 percent compared to many typical separation methods.
DB Technologies’ solution consists of two technologies working in an integrated system that firstly separates incoming MSW (or other potentially polluted organic waste) with a high- pressure hydraulic press (i.e. OREX), into a biogenic fraction and a dry non-organic fraction. The OREX treatment process can be summarized into the following phases:
Phase 1 – MSW is loaded to the system with a conveyor belt where it would fall from the feed hoppers into bag openers, metal and non-ferrous metal magnetic separation system, and disc screens (80mm) before being fed into into OREX.
Phase 2 – The high pressure inside OREX separates the biogenic fraction from the non-organic fraction. Dry non-organic fraction (paper, plastic, grit, cellulosic material, etc.) remaining inside OREX would undergo further separation process as described below. The wet pulped fraction separated out by OREX would fall down into a conveying system.
Phase 3 – The outlet gate opens and pushes out the dry non-organic fraction onto a conveyor belt. This entire process takes less than a minute.
The dry non-organic fraction from OREX would undergo additional separation processes. In some of DB Technologies’ reference plants, inert waste and fine fractions are separated from the material flow. A metal and non-ferrous metal magnetic separation system would sort out the metal parts. Recyclables would be retrieved from the material.
For the case of the MERF, the dry non-organic fraction would go through rejects lump breakers and screens (50mm) before being transferred to wind sifters. The ballistic wind sifters would separate the light fraction, thus, leaving the heavy fraction consisting of stones and glass from the high caloric fraction. This fraction would go through RDF shredders and be shredded into pieces of maximally 30mm large particles, resulting in high quality fuel for thermal treatment.
In terms of the biogenic fraction, a further two-step cleaning process would be carried out. First, the CLEANREX would extract plastic film. Then, buffer tanks would allow both storage capacity for the biogenic fraction and time for grits to settle.
Initial assessment on the information provided by DB Technologies has found that grit removal efficiency is not provided. However, for instance, if 0.1 percent of the incoming waste is grit, then there could be as much as 0.23 tpd of grit. Assuming 90 percent removal efficiency, there would be 0.023 tpd of grit remaining in the waste stream. Over a year’s time, assuming all the grit sinks, there could be over 8 tons at the base of the AD digester, where the method of removal is currently unknown to the Consultant. Anaergia have provided removal efficiencies,
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but the Consultant note that this is on different waste. It should be noted that DB Technologies is part of Anaergia, so Anaergia shall be responsible for the overall design of the separation and cleaning process as well as the bio-treatment process for the Angeles MERF.
4.4.2. Findings of Technical Visit to a Reference Plant in Cape Town, South Africa
Description of the Site
Anaergia is currently operating New Horizons Waste to Energy Project in Cape Town, South Africa. It is a mechanical and biological treatment (MBT) plant that is installed with Anaergia’s separation and bio-treatment technologies. The separation technologies that are being installed at this plant include Anaergia’s Bag Opener, screens, OREX, CLEANREX, wind sifter, etc. The designed capacity of the plant is 500 tpd.
Waste Reception & Storage
The incoming waste is delivered onto a flat floor and is then subsequently loaded into the front on of the materials recycling with a front loader. Large items are manually removed from the flat floor. The feed rate was, however, significantly less than the design throughput of 500 tpd as the supply contracts had not been finalized.
OREX
According to Anaergia, they have plants operating OREX since 2013 without reporting significant issues. The inlet size of OREX should be 100 mm x 100 mm, while the operating pressure can reach a maximum of 4,000 psi (or 280 bar). Based on Orex model 400H3P, it can handle an MSW throughput of 15 tons per hour.
CLEANREX
According to Anaergia, separation of the feedstock by CLEANREX would result in approximately 12- 15% TS. The mixer would generate a centrifugal acceleration of up to 170g.
Grit Removal
This is not specifically undertaken at this site.
Technical Visit Constraints
The plant was only able to be fed at about 60% of design due to delivery constraints of the raw feed material. The plant was thus being operated on a stop/start basis to enable the process systems to, as far as possible, work at design capacity.
The AD system, although operational, was not only operating at reduced capacity due to the feedstock constraints, it was not an ideal design as Anaergia had taken over an existing tank system and other infrastructure.
The basic infrastructure and the AD tanks were made available to Anaergia and they have not designed these systems, although the existing AD tanks are similar in design to the Anaergia ‘Helios’ design. The plant was designed to receive 250 t/day of municipal waste but the delivery is currently limited to 150 t/day by the importer, thus the plant is not operating to capacity. The plant has been in commission since January 2017.
4.5. Bio-Treatment Process
4.5.1. Initial Technology Review of the Bio-Treatment Process
Most of the pre-treatment equipment and process equipment for the anaerobic digestion process would be supplied by Anaergia Asia Inc. This includes a few conveyors and sorting platforms, a bag opening shredder, a permanent belt magnet, an OREX, a CLEANREX, a buffer tank and an anaerobic digester. From the mass balance summary included in the budgetary proposal for MSW prepared by Anaergia in September 2015, it is estimated that around 20.2%
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of the incoming waste is the total solids (TS) (i.e. 44.4 tpd) to be handled by the anaerobic digester and around 85.0% of the TS is the volatile solids (VS) (i.e. 37.7 tpd) to be processed by the anaerobic digester. This would result in around 171.4 kg of VS per ton of MSW to be treated at the site, which is considered to be a reasonable figure for the proposed anaerobic digestion process.
The performance of the anaerobic digestion process depends on several physical and chemical parameters such as pH, temperature, carbon to nitrogen (C/N) ratio, organic loading rate (OLR), hydraulic retention time (HRT) and biogas quantity and quality, etc. For instance, the pH, temperature and C/N ratio have to be maintained within a suitable range for the bacteria to react with the organic material.
The optimal pH for anaerobic digestion is between 6.0 and 7.5. If the amount of VS fed into the digester exceeds the capacity of the bacteria to break down the constituents, acid accumulation would occur and the methanogenic bacteria could no longer perform its function. To avoid acid accumulation, the operator has to monitor the amount of fresh material being fed to the anaerobic digester.
The optimal temperature for anaerobic digestion is between 30°C and 40°C (for mesophilic process) or between 50°C and 60°C (for thermophilic process). The proposed anaerobic digester would operate in a condition similar to the mesophilic range (i.e. between 32°C and 45°C). Mesophilic digesters are more biologically robust in general and can tolerate greater changes in environmental parameters when compared to thermophilic digesters.
For C/N ratio, a value between 25 and 30 is ideal for the anaerobic digestion process. Since the wet organic fraction from the proposed OREX mainly consists of the biodegradable portion of the MSW such as food waste and other organics, it is expected that the C/N ratio would be close to or slightly less than the optimal range for anaerobic digestion.
The OLR and HRT, on the other hand, can be determined based on the design criteria and requirements set out for the project. The OLR indicates the amount of organic material being added to the digester each day and the HRT indicates the period of which the biodegradable material remains in the digester. Normally, a high OLR would be selected because it means a high turnover of the organic material could be achieved in the anaerobic digester. Nevertheless, too high of an OLR can overload the system and inhibit the conversion of organic material. Also, a high OLR usually correlates to a low HRT, which would result in low biogas yield due to low VS reduction. According to the industry best practice, a wet mesophilic anaerobic digestion process typically has an OLR between 1.0 and 4.0 kg VS/m3/d and a HRT between 14 and 30 days, the VS reduction is around 75% and the biogas production is around 125 m3 per ton of MSW input.
As indicated in the design summary provided by Anaergia, the OLR is set at 4.5 kg VS/m3/d, which means a minimum digester volume of 8,378 m3 is required. Assuming no further dilution is applied to the system, the hydraulic retention time is around 38 days. A VS reduction of around 49.7% is assumed for the proposed anaerobic digestion process, this results in around 19,873 Nm3/d of biogas being produced from the wet organic fraction of the MSW with 60% methane content. The above correlates to a biogas production of around 90 m3 per ton of MSW received at the site. The biogas produced from the anaerobic digestion process would be used in the subsequent heat and power generation system to generate heat and electricity for internal use and export to the grid.
4.5.2. Review of Reference Plant Data provided by Anaergia
Based on the supplementary information provided by Anaergia, it is noted that similar anaerobic digestion systems designed to treat municipal organic waste have been in operation elsewhere. The reference plant data would serve as a benchmark for the existing plant design.
For the anaerobic digestion plant in Glenfarg, Scotland, where the feedstock is source- separated commercial and municipal food and organic waste, it is noted that the pH of the system was maintained at around 4 and the operating temperature of the system was kept between 10°C and 40°C from June 2012 to November 2013. These phenomena are quite
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unusual for an anaerobic digestion process as most of the bacteria would die out if the pH drops below 6 or if the temperature falls below 20°C. The biogas production at the plant, however, was quite reasonable. The plant can achieve a biogas production of between 90 m3 and 170 m3 per ton of waste input from September 2013 to December 2013. The biogas was comprised of around 60% CH4 and 40% CO2.
For the anaerobic digestion plant in Jinan, China, where the feedstock is also source-separated commercial and municipal food and organic waste, it is observed that the pH and the operating temperature of the system were maintained within reasonable range for anaerobic digestion. However, there were slight fluctuations in the incoming feedstock. For example, the %TS and %VS of the incoming feedstock suddenly peaked out on 21 and 24 July 2014, rising from around 10% to 20%. Assuming the plant is accepting the same waste sources on a day-to-day basis, the drastic change in waste composition is not common. Other than that, it is realized that the chemical oxygen demand (COD), volatile fatty acid (VFA) and alkalinity were all within the acceptable range for anaerobic digestion. Similar to the %VS, COD is a measure of the biological conversion capacity of the anaerobic digestion system. A COD level between 2,000 mg/L and 50,000 mg/L are considered suitable for the anaerobic digestion process. VFA is an intermediate product in the anaerobic digestion process. It is usually used as an indicator to check the stability of the system. A VFA level between 200 mg/L and 2,000 mg/L are considered appropriate for the anaerobic digestion process. Last but not least, alkalinity is a measure of the acid-neutralizing capacity of the anaerobic digestion system. An alkalinity level between 2,000 mg/L and 4,000 mg/L are considered optimal for the anaerobic digestion process.
Since the feed material, design capacity and operating conditions of the reference plants are somewhat different from what are being considered for this project, it is hard to deduce whether the AD system supplied by Anaergia for this project would perform the way the reference plants do. In general, the operator has to monitor the performance indicators as discussed above such as pH, temperature, C/N ratio, OLR and HRT, etc. to ensure the anaerobic digestion system is operating according to the design specification and meeting the requirements of the project.
4.5.3. Findings of Technical Visit to a Reference Plant in Cape Town, South Africa, and Subsequent Conference Call with Anaergia
Description of the Site
Anaergia is currently operating New Horizons Waste to Energy Project in Cape Town, South Africa. It is a mechanical and biological treatment (MBT) plant that is installed with Anaergia’s separation and bio-treatment technologies. The bio-treatment technology being installed at this plant is based upon UTS technology, the Helios system, and is designed with a MSW throughput capacity of 500 tpd.
Feedstock
The feedstock was MSW from a third party. The rate of supply was only about 60% of that in the design due to contractual issues.
Grit Removal
Anaergia suggest that the grit and glass present in the waste will be minimal; and that presence will tend to be mostly over 2mm (and thus be rapidly removed by gravity settling systems). The Consultant’s view is that this is based on waste that is not typical in the Philippines, so may be different. It is understood that the proposal will include for a gravity settling system, which forms part of the buffer tank prior to the AD tank.
The Consultant’s concern remains that this may not settle out all lighter solid fractions, which will subsequently settle out in the AD tank, due to a longer settling period of around 18 days, despite mixing. As a minimum, it is recommended that maintenance is allowed for (to dig out settled solids in the AD tank) in the budgeting, and that this may be required fairly frequently – frequency cannot be advised by the Consultant as the reference plants are not available.
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Anaerobic Digester Design & Construction
Anaergia currently only have expertise with the Helios design of AD tank when processing waste derived organic fractions. It has been decided by SURE Global to utilize the Triton design for Angeles, which is a tank inside a tank. Anaergia are confident that the Triton tank will provide enhanced flexibility for the Angeles MERF. The Consultant, however, re-iterate concerns that, although mixing of the tank contents local to each of 4 mixers is a high rate, the overall mass of the AD fluid rotates only slowly and thus small solid particles not settled prior to the AD system are likely to settle out and require manual intervention to remove. As a minimum, it is recommended that the Triton tank system is fitted with appropriate man-access systems for maintenance.
It was not possible to assess the potential for settling in any of the Anaergia reference plants as the systems have not been in operation for very long.
Biogas Generation & Cleaning
The reference plant was only fed with about 50% of the design organic rate – together with the different design of AD tank it was thus not possible to take a view on gas production rates. The reference plant gas cleaning system is completely different to that proposed for the Angeles MERF. This is solely due to the destination of the cleaned gas.
At the reference plant the end user is gas to grid, thus, the gas is required to be cleaned such that only high quality methane remains. Carbon dioxide is also exported as a clean gas. For the proposed plant the gas will be utilized to power a reciprocating gas engine, thus, the gas is required to be cleaned to remove hydrogen sulphide and siloxanes. A description from Anaergia suggests that this is proposed to be water based clean-up for hydrogen sulphide, a cooling process to lower the dew point of the gas to provide a dry gas and subsequent activated carbon to remove siloxanes. The Consultant have a concern that the activated carbon may quickly become de-activated as all remaining contaminants as well as siloxanes will be removed. This will cause high replacement (of activated carbon) costs. It is suggested that catalytic removal of siloxanes is investigated during the FEED stage.
Technical Visit Constraints
The final use of gas at the reference plant in Cape Town is completely different to that proposed in Angeles, thus, any reference systems are not relevant.
4.6. Thermal Treatment Process – Gasification System
4.6.1. Initial Technology Review of the Gasification System
The gasification system will be supplied by ICM Inc. Similar to the anaerobic digestion system, the gasification system would be installed after the pre-treatment process. That is, once gone past the pre-treatment process, waste would be fed into an OREX and a CLEANREX that separates the waste into a wet organic fraction for the AD system and a dry (inorganic) fraction (or RDF) for the gasification system. The dry (inorganic) fraction would be size-reduced by a shredder and sorting equipment to suit the gasifier sizing requirements before feeding into the gasification system, which would then produce synthesis gas (Syngas). Syngas is high in carbon monoxide and hydrogen content. Gasifier fuel feed dictate that a shredder is placed before the gasifier to limit the maximum particle dimension to 100mm in any direction. ICM confirmed that there is no limit on the size or degree of fines entering the gasifier. The requirement and identification of such RDF sizing equipment shall be discussed with ICM during the FEED stage to ensure complete gasification of all particles during the process. The Syngas would be combusted in a Thermal Oxidizer to ensure complete combustion and the heat used to produce steam in a boiler. The steam would be used to produce power with a high-efficiency turbine generator set. The solid residual or char would be combined with recovered ash and cooled for safe handling. The flue gas would be processed with emission control equipment.
Gasification is a chemical process for converting carbonaceous materials at a high temperature to a combustible synthetic gas (e.g. H2, CO and CO2). It involves the reaction of carbon with air,
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oxygen, steam, carbon dioxide or a mixture of these gases at 1,300°F (equivalent to 704.44°C) or higher to produce Syngas for power and/or heat generation. In contrast to combustion, which work with excess air, gasification processes operate at sub-stoichiometric conditions with the oxygen supply controlled (generally 35% of the amount of oxygen theoretically required for complete combustion or less), such that both heat and a new gaseous fuel are produced as the feed material consumed – the feedstock is thus chemically broken down into its constituent molecular parts. The presence of gasification agent (air, oxygen, or steam), gasifier operating temperature and pressure, feedstock composition, feedstock preparation and particle size, reactor heating rate, residence time and plant configuration can all affect the quality of Syngas produced.
The Consultant has met with ICM’s technical team at their headquarter in Colwich, Kansas, USA, and conducted to technical visit to their demonstration gasifier in Newton, Kansas, USA, to understand their technology. ICM has also provided some technology information and past performance test reports of the demonstration gasifier for the Consultant’s review. Based on the technical meeting, site visit, information provided and performance test reports, AECOM has conducted a technology review as follows.
4.6.2. Key Technology Design and Operation Parameters
Design Life
Design life is the period for which a component, device or system is expected to function at its designated capacity with proper maintenance and without major repairmen or breakdown. According to ICM, all parts susceptible to wear are designed for replacement. Such replacement frequency will depend on the condition of feedstock, and whether the operator has followed the recommended operation and maintenance procedures. ICM opines that minimum design life would be in excess of 20 years.
Design, Procurement, and Construction Period
Whilst the design and procurement timelines are to be determined in the detailed design phase, the manufacturing and shipment period of the equipment, according to ICM, will take approximately 10 months in total.
Operating Hours
Operating hours is the period of time of which a component is expected to be in operation. As the frequency of stoppages correlates with equipment life, thorough planning on project operation is expected. According to ICM, project operation shall be planned for continuous operation with planned maintenance breaks. The planned operating hours should be at least 80% per year.
Operating Conditions
Operating conditions are the parameters which allows the facility to optimize its performance. According to ICM, the operating temperature of the facility shall be approximately 500 – 870oC. The waste tonnage input shall be approximately 135 metric tons per day. The maximum dimension of the in-feed particle shall be 15mm on one side. Other parameters such as air conditions and carbon contents requirements should be determined in the engineering design phase.
Feedstock
The feedstock requirement outlines the conditions where the feedstock is the most suitable for plant operation. As mentioned above, the maximum dimension of the feedstock shall be 15mm on one side. According to ICM, the waste density shall be between 80-500 kg/m3, as waste with density higher than 500 kg/m3 will be problematic or require blending with RDF or other materials with lower density. The suggested Calorific Value ranges from 12 to more than 20MJ/kg. The suggested moisture content should be approximately 10-45%. When the
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moisture content exceeds 35%, it is recommended that the feedstock shall be blended with drier ones. It is suggested that the metal contents shall be removed from the feedstock stream.
Syngas Conversion Rate
Syngas is the flue gas produced from the gasification of the feedstock. It contains H2, CO, CH4, Ethylene, Propylenes, H2O, H2S and other gas components. According to ICM, the carbon conversion shall be around 95% to more than 97%. The Feedstock-to-Producer gas carbon conversion can be determined indirectly by measuring carbon content of incoming feedstock and comparing with the residual carbon in char and fly ash produced by gasification and producer gas combustion processes.
Operating Mechanisms
According to ICM, while the typical operating mechanisms and parameters should be defined in the engineering design phase of the project, some general parameters are suggested as follows:
i) Gasifier: In general, one feed system is required for each gasifier train. The duty of the gasifier is assumed to be 100%. The energy requirement for the gasifier’s drive mechanism is relatively low. According to ICM, even their largest model requires less than 30 kW only. ICM estimated that based on the size of this project, the energy requirement to drive the gasifier will approximately be 15 kW. The actual energy requirement has to be determined in the engineering design phase. In addition, the retention time correlates to the feed rate. According to ICM, the retention time is approximately 10 to 30 minutes in the gasifier and 30 to 50 minutes in the char reactor. ii) Ash handling: The ash produced in the gasification process can be cooled with a water spray quench and conveyed to the loadout point. iii) Control and Monitoring Mechanism: According to ICM, control logic is used for system control. Sensors on temperature, pressure, flow, level and other measurement elements will be installed. Detailed arrangements will be determined in engineering design phase. iv) Storage According to ICM, appropriate storage facilities for raw and prepared feedstock should be included in the project design. No syngas storage mechanism is required as the syngas is generated at high temperatures and nearly atmospheric pressure, and then combusted in the boiler immediately. Guarantees According to ICM, no operational guarantees on plants are provided unless ICM is responsible for plant operation and maintenance. Also, the performance of equipment highly depends on the feedstock. ICM will likely guarantee the conversion only based on the limited project scope at the moment. Operation and Maintenance Procedures i) Emergency Shutdown Procedure According to ICM, the Emergency Shutdown Procedure will be included in the Recommended Operating Procedures (ROP), with necessary steps which varies based on situations. Although the processes has already gone through hazard and operability study (HAZOP) analyses, ICM would not preclude the need to conduct similar analyses for the project facility. ii) Emergency gas discharge Procedure According to ICM, in the case of an uncontrolled combustion event within the gasifier, rupture panels are provided and would be vented to atmosphere. During startup, shutdown and emergency shutdown sequences, nitrogen purging is usually recommended and provisions for are included in the basic design. Such gas can normally be dealt with in the combustion section of the boiler. Alternatively, a small flare could be included. iii) Safety Provisions for Syngas Leakage
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According to ICM, since very small amount of syngas will be accumulated in the system, and the gas will be close to atmospheric pressure, no specific leak provisions will be provided apart from basic combustion control safety devices.
4.6.3. ICM Biomass Gasification Technology Review (2010)
Based on a performance test report provided by ICM, issued by R.W. Beck, Inc. (hereinafter “R.W. Beck”), titled “ICM Biomass Gasification Technology Review” and dated 21 May 2010, it is understand that ICM has developed, engineered and operated an industrial-scale biomass gasifier. They are offering the gasifier as part of a turnkey unit for commercial use to supply biomass-based fuel to power new or existing boilers, kilns, pulverized coal burners or other direct combustion systems.
With the biomass gasifier, ICM has constructed a commercial-scale demonstration facility in Newton, Kansas, USA. It consists of the feed system, the gasifier, biochar / ash handling system and a Syngas combustor (flare). Particularly, the gasifier is a horizontal, positive- displacement auger-transport gasification unit comprised of multiple air injection zones, allowing for the injection of air both at the top and bottom of the biomass bed, is approximately 6 feet in diameter and 40 feet long and can process up to 200 tpd of biomass.
Prior to R.W. Beck’s review, ICM has operated the demonstration facility for approximately 9 months, and reported the operational data as follows:
1,000+ hours of operation; and 3,000+ tons of feedstock processed. Feedstock types used included wood chips, corn stover and wheat straw.
During the 35-day review period, the demonstration facility produced Syngas for approximately 650 hours, and was down for maintenance and to correct operating issues for approximately 175 hours. The relatively large portion of downtime, according to R.W. Beck, was due to oversized woody feedstock and metal contained in off-specification fuel caused the majority of unit downtime.
The system is apparently capable of using a variety of biomass-based feedstocks, including wood chips, bark, corn stover, wheat straw, grasses and clean RDF. However, its compatibility with treating MSW / RDF feedstocks is not mentioned.
Normally, gasifiers’ exit temperatures would be designed at 1,300°F (or 704.44°C) or above. However, while the gasifier exit temperatures were targeted to be approximately 1,400°F (or 760°C), during the review period, results indicated that the temperatures were frequently above 1,200°F (or 648.89°C), with only a few tests exceeding the 1,400°F (or 760°C) level.
During the review period, the gasifier successfully processed multiple biomass feedstocks (wood chips, corn stover, and wheat straw) with moisture contents ranging from 26 to 45 percent. However, in the feedstock specification sheet, it is estimated that the RDF stream would have average moisture content ranging from 21 to 33 percent. With slight modification to the system, this should be an acceptable range.
The Syngas produced by the ICM technology has a typical energy content of 120 to 150 Btu/ft3 (equivalent to 4.47 to 5.59 MJ/m3), including potentially condensable gases. This range is slightly broader than the 4.5 to 5 MJ/m3 range that a typical gasification system has.
At the time of review by R.W. Beck, the gasifier design appears capable of producing approximately 70 MMBtu/hr of Syngas from 204 tpd of wood chips. The conversion efficiency to chemical energy in the form of Syngas, in this case, has been demonstrated at 64 percent. Typical conversion efficiencies of the gasification processes are 60 to 70 percent.
4.6.4. ICM RDF Gasification Technology Review (2012)
Based on a performance test report provided by ICM, issued by SAIC Energy, Environment & Infrastructure LLC (hereinafter “SAIC”), titled “ICM RDF Gasification Technology Review” and
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dated 20 June 2012, on the same industrial-scale biomass gasifier constructed in the demonstration facility in Newton, Kansas, USA. With some modifications, the gasification system this time consists of the feed system, the gasifier, char / ash handling system, the Syngas scrubber and a Syngas combustor (flare). The gasifier is still a horizontal, positive- displacement auger-transport gasification unit comprised of multiple air injection zones, allowing for the injection of air both at the top and bottom of the biomass bed, is approximately 6 feet in diameter and 40 feet long and can process up to 200 tpd of biomass.
Prior to SAIC’s review, ICM has operated the demonstration facility for over two years on various biomass feedstocks, and reported the operational data as follows:
. 2,500 hours of operation; and . 8,000 tons of biomass feedstock processed.
During the 7-day review period, the demonstration facility produced Syngas for approximately 168 hours, and was down for maintenance and to correct operating issues for less than one hour.
The system is apparently capable of using a variety of biomass-based feedstocks, including wood chips, bark, corn stover, wheat straw, grasses and clean RDF. It also demonstrated the capability of treating RDF from Ames, Iowa MSW processing facility. According to SAIC, the RDF was primarily a mixture of paper and plastic with occasional small metal particles and other small inerts.
Normally, gasifiers’ exit temperatures would be designed at 1,300°F (or 704.44°C) or above. The gasifier exit temperatures during the review period this time indicated that the temperatures were generally in the 1,400°F (or 760°C) to 1,600°F (or 871.11°C) range, with several periods of testing exceeding the 1,800°F (or 982.22°C) level.
During the review period, the gasifier demonstrated the capability to process the Ames Iowa RDF with moisture contents of approximately 26 percent. This appears within the range estimated in the feedstock specification sheet for the RDF stream, which would have average moisture content ranging from 21 to 33 percent.
The Syngas produced by the ICM Technology has a typical energy content of 120 to 150 Btu/ft3 (equivalent to 4.47 to 5.59 MJ/m3), including potentially condensable gases. This range is slightly broader than the 4.5 to 5 MJ/m3 range that a typical gasification system has. It should be noted that the performance testing results discussed that gasification of the RDF produced a hot Syngas that was burned effectively by adding air without an ignition source in the combustion. However, the total volume available in the stack was not sufficient at time to complete combustion without visible flames above the stack tip. The resulting combustion temperature was hot enough to melt ash (fly ash) that was carried over in the exit duct.
At the time of review by SAIC, the gasifier design appears capable of producing approximately 34 MMBtu/hr of Syngas from 90 tpd of RDF. The conversion efficiency to chemical energy in the form of Syngas, in this case, has been demonstrated in the 66 to 68 percent range. Typical conversion efficiencies of the gasification processes are 60 to 70 percent.
The performance test report has also pointed out several areas where ICM’s system should improve on, including:
. Throughput of the gasifier ranged from 65 to 96 tpd of RDF based on 12-hour averages. A higher production rate of 100 tpd was demonstrated during a 2-hour period late in the testing period, where one of the heat and material balance runs was conducted. However, during this period, the throughput rate ranged from 81 to 114 tpd (10-minute averages) with an average throughput of 101 tpd and a standard deviation of 8.7 tpd. This indicates a potential unstable condition, and may not support a nameplate capacity of 100 tpd. . The Char/Ash Handling System needs to be upgraded (a refractory lined trough with controlled air addition) to act as a polishing gasifier and increase both the level of carbon conversion and energy output.
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. A cyclone should be added to avoid particulate carryover into the product Syngas and capture additional biochar. . The tar scrubber on the slip stream did not operate for a sufficient period during the performance test to obtain meaningful data. This is not deemed a problem as a tar scrubber is not likely to be required if the Syngas is combusted immediately following the gasifier in a thermal oxidizer.
However, who shall be responsible for designing the improvement works and how should the improvement works be tested is not mentioned in the review document. It is assumed that this issue would be ICM’s responsibility.
4.6.5. Findings of Technical Visit to a Reference Plant in Newton, Kansas, USA
Description of the Reference Plant
The reference plant in Newton, Kansas, USA is a circa 10 tons per day demonstration gasifier installed with a two-stage thermal oxidizer. Feedstock is prepared off site and the syngas produced is combusted in the thermal oxidizer. The demonstration gasifier is fully instrumented and is fitted with a production control system.
The reference plant was originally set up for a commercial gasifier, designed with 150 tpd of treatment capacity, syngas flaring, and had RDF as feedstock. According to the Technology Review Reports provided by ICM dated 2010 and 2012 (as discussed in previous sections), the commercial gasifier was operating in reasonable condition. However, ICM decided to shut down the plant in 2015 for commercial reasons, as they were unable to secure sufficient feedstock for the plant from nearby cities and towns.
Feedstock
The feedstock being utilized during the AECOM inspection was a nominally waste wood, chipped to approximately 200mm maximum dimension. According to ICM, the following feedstock have all been tested previously:
. Wood . Corn Stover . Wheat Straw . Sorghum Stalks . Construction and Demolition (C&D Waste) . Paper Pulp + Plastics . Switchgrass . Corn Bran + Syrup . Auto Shredder Residual . MSW (RDF) . Minimally Processed MSW . MSW (RDF) + Tires . Chicken Litter . Dairy Manure . Manure + Wood chips
It is evident from the various tests and reports that many different feedstock have previously been utilized, including the RDF. According to SAIC’s performance test report (2012) mentioned above, the RDF was primarily a mixture of paper and plastic with occasional small metal particles and other small inerts. The composition of RDF is, in a way, similar to that intended to be provided for the MERFs to be developed and installed in Angeles City. It was noted that the inlet feed system had a tendency for sudden pressurization. It is assumed to be due to the dust present in the feedstock at the time of visit. The RDF feedstock for the MERFs in the Philippines is anticipated to have minimal dust due to the upstream pre-treatment, thus, this issue is less likely to occur in the Philippines. It is recommended however that the pressure relief system is re-engineered to provide a safer pressure relief direction.
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Throughput
The demonstration plant is a scaled-down system of 10 tpd, although it is noted that the previous commercial scale facility had 150 tpd of throughput. Test data back in 2011 indicates that the 150 tpd gasifier should be capable of the stated throughput.
Maintenance
ICM stated that the demonstration gasifier had undergone extensive inspections at the end of each campaign. No significant maintenance was required. It was noted that the refractory would require inspection in the production facility on an annual basis, with repairs as necessary. Access to undertake this exercise was reasonable. ICM also noted that the main wear item, the screw feeder, has been inspected following numerous thermal cycles and the wear found to be minimal. The material of construction of this item was suitable for high temperature and high wear applications, but the stainless steel grade was not provided for the Consultant’s review. According to discussion with ICM, the auger in the gasifier is made of stainless steel (steel grade not provided), and that the operating temperature is approaching the upper end of stainless steel's tolerance level. Consideration needs to be made when choosing the grade of stainless steel for manufacturing the gasifier. Overall, AECOM believe that the material is appropriate and, at the very low turning rate, erosion is likely to be minimal.
Installation
It is understood that the production facility will be partially assembled at ICM’s manufacturing facility in Colwich, Kansas, USA, and tested as far as possible, then shipped to the Philippines for final assembling and installation, with ICM’s assistance. According to ICM, the process of equipment procurement, manufacturing, delivery to the Philippines for installation should take approximately 9 to 10 months. There was no evidence of manufacturing onsite requiring specialist skills to ensure a successful installation. It is assumed that all instrumentation would be pre-installed. AECOM recommend that the instrument suppliers are defined in the contract to ensure local back-up if required.
ICM are currently undertaking installation in Brazil, as well as previously in Canada, Argentina, Hungary and Mozambique, thus, they have knowledge of logistics overseas.
Design Life
There is nothing evident from the demonstration gasifier that suggests the basic design will not achieve a design life of 25 years. The test machine has undergone numerous start/stops in its life, leading to numerous thermal cycles. ICM reported that the internal refractory lining had been inspected and showed no signs of requiring maintenance. There was slight corrosion on the support structure, but nothing to suggest gross corrosion would be a long term problem. The framework on the gasifier was showing a significant degree of corrosion and thus galvanizing and/or painting is likely to be required to ensure reasonable design life for the intended outdoor use.
Design & Construction of the Previous Full-Scale Gasifier
Designs exist for gasifiers from 100 tpd to 450 tpd. The basic design is a simple mechanical device and scaling is unlikely to cause operational problems. The main components of the gasifier will be manufactured (and hence QA controlled) by ICM in the U.S. before transporting to the Philippines for installation. ICM will provide experienced installation engineers to ensure the installation is correct. ICM have specific experience of installing gasification systems overseas.
Syngas Generation & Cleaning
ICM do not undertake syngas cleaning in their gasifier. All syngas produced will be combusted in the thermal oxidizer prior to the boiler. The flue gas will then be treated by the flue gas treatment system prior to existing the plant via the stack.
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Technical Capability of ICM and Constraints of the Technical Site Visit
As the demonstration facility is not a commercial installation, ICM are reliant on external companies for provision of feedstock – they, therefore, are not in a position to exactly match the feedstock intended for the Philippines. With the variety of feedstocks utilized by the demonstration facility, it is unlikely that the intended feedstock will not gasify as intended.
The demonstration facility had been lying idle for several months prior to starting up just prior to the visit – following a restart, it was apparent that ICM had not had time to optimize the control of the process using the supplied feedstock. It is thus imperative that ICM engineers are available for future commission and process optimization of any new facility.
Again, since the feed material, design capacity and operating conditions of the reference plant are somewhat different from what are being considered for this project, not possible to definitely deduce whether the gasification system supplied by ICM for this project would perform the way the reference plant do. Particularly, the information that was reviewed by SAIC (including the reference plant’s design calculations, equipment specifications, operation and maintenance records, etc.) has not been provided for the Consultant’s review. Also, even though the system has been tested at over 8,000 tons of throughput and over 2,500 hours of operation, the length of service is rather minimal when compared to the design life, so the system’s durability has not been put to test yet.
However, it appears from the site visit that ICM have a capable team of engineers and project staff to undertake the design, manufacture, delivery and installation supervision of their 150 tpd, 300 tpd and 450 tpd gasifier units.
AECOM also suggest that the framework on the gasifiers provided into the Philippines receive a higher specification coating to minimize corrosion, with the potential to galvanise prior to painting. This is especially relevant for any installation within 1 mile of the sea, as onshore wind could be corrosive.
4.7. Conclusions and Recommendations for Technology and Process Engineering Review
Based on the Consultant’s experience, it is suggested that each supplier should be given clear input and output requirements, with an allowance / deviation for fluctuations in the receiving process. In return, the suppliers should be providing performance guarantees based on the accepted or agreed input and output requirements. Otherwise, the suppliers could choose to design and supply their systems to their likings, which may not suit the local waste characteristics well and/or may not integrate well with other systems in the facility. This could potentially be design and capital risks to the project proponent. The Balance of Plant, if not designed and managed properly, could make it difficult to estimate related costs, which could in turn become a capital risk as well to the project proponent.
4.7.1. The Separation & Cleaning Process
Based on the Consultant’s visit to the reference plants, the DB Technology supplied OREX appears to work in the manner defined.
4.7.2. The AD System
The AD system for Angeles has been proposed as a Triton design. As noted elsewhere, there is a potential for small solids/grits (e.g. glass) to settle out in the AD tank and not be re- suspended by the mixers. Anaergia believe that any settled solids would be re-suspended by moving the mixers. For this, the Consultant believe there is a risk that the mixers, on guide rails in a high corrosion environment, would not be easily moved and, even if they were moved easily, it is likely that only very local settled solids would be re-suspended. This raises the risk that periodically, the tanks will need digging out. It is recommended that this, which will require a lengthy shutdown, is allowed for in the financial model and appropriate man access is designed into the tanks.
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The gas clean-up system relies on activated carbon to remove siloxanes (which will shorten the life of the gas engine). The Consultant recommend that appropriate allowance is made in the financial model for regular replacement of the carbon. The area around the carbon system should also be designed to allow easy emptying and subsequent refilling. It is recommended that catalytic systems for siloxane removal are investigated during the FEED stage.
4.7.3. The Gasification System
Following a visit by the Consultant on 27 April 2017 to ICM Inc.’s office and manufacturing facility in Colwich, Kansas, USA, and gasifier test facility in Newton, Kansas, USA, the Consultant believe that, judging from the statements made by ICM and the data viewed at the gasifier test facility, there is no reason to believe that an ICM gasifier, based on the inspected facility, would not achieve treatment of 150 tpd RDF as provided by the intended plant in the Philippines, and produce a syngas suitable for combustion in a boiler.
The Consultant suggest that the framework on the gasifiers provided into the Philippines receive a higher specification coating to minimize corrosion, with the potential to galvanise prior to painting. This is especially relevant for any installation within 1 mile of the sea, as onshore wind could be corrosive.
The Consultant believe that it essential that, during detail design, the balance of plant designers enter into detail discussions with ICM in order to ensure all utility requirements are met and that all termination point details are fully understood. The Consultant understand that ICM will define such requirements, but we still believe that face-to-face discussions are essential.
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5 FINANCIAL AND ECONOMIC ANALYSIS (TASK 4)
5.1. Financial Analysis
5.1.1. Approach
The financial analysis was undertaken in accordance with the following ADB Guidelines:
Framework for Economic and Financial Appraisal of Urban Development Sector Projects; Financial Management and Analysis of Projects; and Preparing and Presenting Cost Estimates for Projects and Programs Financed by the Asian Development Bank.
The “Manual for Project Development and Evaluation” of the National Economic and Development Authority was also referenced when conducting the financial analysis.
Discounted cash flow analysis was used to determine the financial viability of the proposed MERF in Angeles City. Free cash flows to the project will be computed on the “with-project” and “without-project” scenarios to measure the financial impact of the proposed project. Free cash flow to the project is computed as gross revenues less operating and maintenance expenses less capital expenditures. The free cash flow is adjusted for changes in working capital such as accounts receivable, inventories and accounts payable. Non-cash expenses such as depreciation and amortization are not included in the computation of the free cash flow. Detailed analysis and breakdown could be found in Annex B.
In the financial analysis, the computed financial internal rate of return (FIRR) is compared with the weighted average cost of capital (WACC) to determine financial feasibility. The proposed MERF is considered to be financially viable if the computed FIRR is at least equal to the WACC that is used in the financing of the project.
Sensitivity analyses for various scenarios where changes in certain parameters are likely to occur shall be conducted in terms of the FIRR. The scenarios evaluated are the unexpected increases in project costs, delays in construction, and changes in the volume of feedstock input.
5.1.2. Project Cost Estimates
The proposed 10MW Angeles City Waste-to-Worth project is estimated to cost US$53.03 million. The breakdown of the major components of project cost is presented in Table 5.1 below. These costs include 12% value-added tax (VAT), construction all-risk insurance, provision for contingency, engineering, procurement and construction (EPC) fees, project development fees, debt service reserve account (DSRA) requirements, and financial charges during implementation.
The site of the project is located in Barangay Mining, Angeles City, Province of Pampanga. The target date for full commissioning of the MERF is expected to be in the first quarter of 2020 as per the Initial Project Implementation Plan presented in Section 11. However, it should be noted that the Consultant has conducted the financial analysis based on the financial model constructed by SURE Global, which has assumed an earlier timeline (i.e. construction commences in January 2017 and full operation begins in October 2019).
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Table 5.1 Estimated Project Cost (In current prices)
Amount % of Items US$MM PhpMM* Total 1. Materials Recovery Facility 3.52 176.23 6.6% 2. Anaerobic Digestion System 5.28 264.00 10.0% 3. Thermal System (ICM System) 11.88 594.20 22.4% 4. Power Generation System 11.57 578.67 21.8% 5. Land Development 1.25 62.50 2.4% 6. Powerhouse, Substation and Transmission Lines 0.86 43.13 1.6% Total Equipment and Installation Cost 34.37 1,718.73 64.8% EPC Fee 2.75 137.50 5.2% Total EPC Cost 37.12 1,856.23 70.0% 7. Miscellaneous Equipment / Expenses 0.98 49.19 1.9% 8. Total Equipment Cost 38.11 1,905.41 71.9% Value Added Tax 4.45 222.75 8.4% 9. BASE COST 42.56 2,128.16 80.3% 10. Miscellaneous Costs 2.42 120.84 4.6% 11. Initial Working Capital 0.55 27.40 1.0% 12. TOTAL PROJECT COST (excluding financing cost) 45.53 2,276.40 85.8% 13. Financing Charges During Implementation 4.25 212.66 8.0% 14. Initial DSRA Funding 3.25 162.55 6.1% 15. ALL-IN PROJECT COST 53.03 2,651.61 100.0% Source: SURE Global * Peso-Dollar Rate: Php50.0-to-US$1
5.1.3. Financing Plan
The proposed Waste to Worth Project in Angeles City will be implemented through a joint venture arrangement with the Angeles City Government, where land will be the equity contribution of the local government unit. Financing of the project will consist of 70% debt (or US$36.12 million) and 30% equity (or US$16.91 million). Debt financing will be sourced from domestic universal banks and multilateral agencies. Aside from SURE Global, equity constructions are expected to come from potential strategic partners. For instance, ADB has provided commitment to fund up to 15% of project equity and 40% of project debt.
5.1.4. Financial Assumptions and Operating Plan
Project Duration and Estimated Useful Life of the Assets. The proposed Waste to Worth Project will have an operating period of 20 years. This is consistent with eligibility period for developers applying for the feed-in tariff (FiT) provided in the Renewable Energy (RE) Law. Under FiT Rules issued by the Energy Regulatory Commission (ERC) in 2010, “eligible renewable energy plants shall be entitled to the applicable FiT for a period of 20 years. After this period, should these plants continue to operate, their tariffs shall be set based on prevailing market prices or whatever prices they should agree with an off-taker.”
Construction of the MERF will commence as soon as the project proponent reaches financial closure with various lending institutions. Construction of the entire plant is estimated to be completed within a period of 21 months. Hence, if construction of the plant started in January 2017, commercial operations would commence in October 2018. Fixed assets will be depreciated over a 20-year estimated useful life computed using the straight-line depreciation method with zero salvage value.
Revenues. The project will depend on the amount of MSW that the city government can collect and deliver. Under the base case, the study team estimates that the city can deliver at least 230 to 250 tons of MSW per day to the project site. Based on the recent sampling of MSW, the facility can realize an initial gross plant capacity of approximately 9.39 MW, which about 18% is generated from the anaerobic digester and 82% is generated from the gasifier. It should be noted that the project capacity can reach as high as 10.25 MW if the city can deliver as much as 270 tons of MSW per day. Under the long-term agreement of the project concessionaire with
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the city government on the MSW feedstock, there are penalties clauses when delivery is less than 230 per day and revenue sharing arrangement in cases delivery is greater than 250 tons per day. Table 5.2 summarizes the estimated plant capacity given the daily MSW feedstock input.
Table 5.2 Estimated Plant Capacity, MSW Feedstock Input
MSW Input Estimated Plant Capacity (MW) (tons per day) Anaerobic Gasifier Total Digester 150 0.95 4.37 5.32 160 1.02 4.69 5.70 170 1.09 5.01 6.10 180 1.16 5.33 6.49 190 1.23 5.66 6.89 200 1.31 5.99 7.30 210 1.38 6.33 7.71 220 1.45 6.67 8.12 230 1.53 7.01 8.54 240 1.61 7.35 8.96 250 1.68 7.70 9.39 260 1.76 8.06 9.82 270 1.84 8.41 10.25 Source: SURE Global
Full-year operation of the MERF will start in 2019. The facility will only be operating for 91 days in 2018. With a combined plant capacity of 9.39 MW and plant efficiency at 95%, gross generation will be 70,604 megawatt-hours (MWh) starting in 2019 (see Table 5.3). Given a combined parasitic load of 12.4%, annual electricity available for sale would be about 61,820 MWh throughout the 20-year life of the project.
Table 5.3 Gross Generation and Net Electrical Output
Particulars Estimated Value Plant Capacity (MW) Anaerobic Digester 1.68 Gasifier 7.70 Plant Factor / Efficiency (%) 95.0 Operating Hours Anaerobic Digester 8,000 Gasifier 7,900 Parasitic Load (kW) Material Recovery Facility 296.0 Anaerobic Digester 158.0 Gasifier 652.2 Annual Gross Generation (MWh) 70,604 Annual Net Electrical Output (MWh) 61,820 Source: SURE Global
The project could realize additional revenues from the sale of recyclables. The city government is currently buying the recyclables from the waste pickers based on the prevailing market price. The project would maintain this scheme where recyclables are purchased from waste pickers and then sold to traders. It is estimated that 13.56 kg of recyclables could be extracted from every ton of MSW delivered to the facility. Assuming a profit margin of Php7,614 per ton, revenue from the sale of recyclables could be some Php10.64 million per annum over the life of the project.
The Energy Regulatory Commission (ERC) has approved last July 2012 a FiT of Php6.63 per kWh for biomass energy with a corresponding initial installation target of 250 MW. The
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approved degression rate is 0.5% after year 2 from the effectivity of the FiT for biomass energy. The Department of Energy (DOE) has revised the FiT rules wherein FiT eligibility would be granted on a “first come, first served” basis. The new rule means that FiT eligibility would be granted to the renewable energy projects that would be first to operate. As of 31 September 2016, 6 biomass plants with a combined capacity of 50.35 MW have been issued certificates of confirmation of commerciality by the DOE, while 15 biomass plants with a total capacity of 105.05 MW have been issued certificates of endorsement to ERC under the FiT system.
The FiT rules allow for the pass-through of local inflation and foreign exchange rate variations in the FiT. The adjustment in the initial FiTs would be based on the weighted average of the local inflation rate and the depreciation of the peso-dollar rate with the percentage shares of local and foreign capital as weights. Since there are no precedence to benchmark the proposed FiT adjustment and for purposes of simplicity, annual increases in the FiT were indexed to the local inflation rate in the financial model.
Operating and Maintenance Expenses. Operation and Maintenance (O&M) costs would amount to an average of Php104.58 million per annum or some Php1.69 per kWh over the life of the project. The largest component of O&M costs is repairs and maintenance, which accounts for nearly 46% of the total. Other major components of O&M cost are personnel and administrative costs with shares to total of 19.5% and 16.7%, respectively.
The parameters and assumptions used in the calculation of the O&M costs are summarized in Table 5.4.
Table 5.4 Operating and Maintenance Expenses: Parameters and Assumptions
Parameters Estimated Values Projected Domestic Inflation Rate (%) 1.5 Personnel Cost (Php million) Materials Recovery Facility 0.90 Anaerobic Digester 3.89 Gasifier 12.59 Repairs and Maintenance Materials Recovery Facility (% of MRF Cost) 7.50 Anaerobic Digester System (% of AD Cost) 3.00 Thermal System (% of TS Cost) 2.25 Other Facilities and Equipment (% of Common Cost) 1/ 3.00 Selling, General and Administrative Costs (% of Revenues) 3.00 PEMC Market Fees (2017) (Php/kWh) 0.0142 Miscellaneous Cost (% of Repairs and Maintenance and Labor Costs) 5.0 Local Business Tax (%) 0.75 Real Property Tax (%) Assessment Level (%) 80.0 Tax Rate (%) 1.5 ER 1-94 Contribution (Php/kWh) 0.01 Income Tax Holiday (ITH) (years) 7 Corporate Income Tax (% after ITH) 10.0 Source: SURE Global
1/ Consists of land development, powerhouse, substation, transmission line, and miscellaneous equipment / expenses.
A summary of the O&M costs in the first five years of operations of the Angeles City Waste-to- Worth is presented in Table 5.5.
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Table 5.5 Summary of Operating and Maintenance Costs (In million pesos, current prices)
Items 2019 2020 2021 2022 2023 Administrative Cost 12.96 13.35 13.75 14.17 14.60 Personnel Cost 17.64 17.90 18.17 18.44 18.72 Repairs and Maintenance 39.74 40.33 40.94 41.55 42.18 PEMC Market Fees 0.88 0.88 0.88 0.88 0.88 Miscellaneous Costs 2.87 2.91 2.96 3.00 3.04 Local Business Tax 0.79 3.19 3.24 3.29 3.34 Real Property Tax 24.01 22.79 21.58 20.36 19.15 ER 1-94 Contribution 0.62 0.62 0.62 0.62 0.62 TOTAL O&M Costs 99.50 101.98 102.13 102.31 102.52 Sources: SURE Global and Consultant’s estimates
Working Capital and Input VAT Recovery. The financial analysis assumes the following working capital parameters: (i) days receivable, 45 days; (ii) days, 15 days; and (iii) days inventory, 15 days. These assumptions are necessary in the calculation of the free cash flows and the preparation of the pro-forma balance sheet. Under the RE Law, sales of power generated from renewable energy sources are subject to zero VAT. With no output VAT to match with, this results in excess input VAT for the project proponent, which is refundable from the Bureau of Internal Revenue. For purposes of conservatism, the analysis assumes the excess input VAT would not be recovered during the operating life of the project.
Loan Disbursement and Amortization Schedule. The financial analysis assumes a debt-to- equity ratio of 70:30. The terms of the loan are presented in Table 5.6. The loan proceeds would be drawn down in two tranches – 55% in the first year of the construction period and the remaining 45% in the second year. The entire equity contribution of the project proponent would be infused in the first six months of the construction period.
Table 5.6 Indicative Terms of the Loan
Particulars Assumptions Loan Amount (US$ million) 36.12 Interest Rate (%) 8.0% Loan Repayment Buffer After COD (months) 6 Loan Repayment Start Date 01 April, 2019 Loan Term (years) 12 Loan Repayment End Date 31 December, 2028 Repayment Term 10 Upfront and Other Financing Fees (%) 1.5% DSRA Requirements (months) 6 Source: SURE Global
5.1.5. Financial Projections and Highlights
The financial projections utilized an initial FiT of Php6.63 per kWh. Over the operating life of the MERF, the annual average net income after tax (NIAT) would be Php241.70 million. Moreover, the proposed project could register average earnings before interest, taxes and depreciation (EBITDA) and net income margin of 78.7% and 49.1%, respectively.
The project could realize an average free cash flow to the project of Php253.31 million per annum. The largest negative cumulative free cash flow would be posted in 2018 at Php2,524.22 million. Project payback period is estimated at 8.8 years.
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Table 5.7 Financial Highlights (In million pesos, current prices)
Particulars 2018 2019 2020 2021 2022 Gross Revenues 425.58 431.96 438.44 445.02 451.69 EBITDA 326.08 329.98 336.31 342.71 349.17 % margin 76.6% 76.4% 76.7% 77.0% 77.3% Depreciation 108.43 110.77 110.77 110.77 110.77 Interest Expense 104.38 126.38 111.93 97.48 83.03 Net Income 113.26 92.84 113.61 134.46 155.38 % margin 26.6% 21.5% 25.9% 30.2% 34.4% Cash 140.84 632.07 837.25 1,087.12 1,863.64 Current Assets 349.13 1,070.94 1,265.04 1,503.48 2,268.60 Net Fixed Assets 1,899.40 3,769.47 3,560.05 3,350.64 3,141.22 Total Assets 2,653.21 5,686.86 5,651.86 5,661.19 5,715.04 Current Liabilities 3.04 6.93 7.07 7.20 7.32 Long-Term Debt 1,670.06 3,245.31 2,903.55 2,561.79 2,220.03 Shareholders’ Equity 980.10 2,434.63 2,741.24 3,092.20 3,487.69 Free Cash Flow to Project 253.92 777.09 792.89 810.25 1,309.55 Free Cash Flow to Equity 13.46 162.03 205.18 249.88 776.52 Current Ratio (X) 114.68 154.64 178.97 208.95 309.72 Debt-to-Equity Ratio 63:37 57:43 51:49 45:55 39:61 DSCR (X) 2.22 1.24 1.33 1.42 2.43 Sources: SURE Global and Consultant’s estimates
The project would generate sufficient cash flows to cover investment cost, operating and maintenance expenses, capital expenditures, and debt servicing. With debt-to-equity ratio at 70:30, project FIRR and equity FIRR of the proposed MERF was calculated at 12.7% and 17.7%, respectively. Its lowest debt service coverage ratio (DSCR) will be in 2020 at 1.07 times (see Table 5.8).
Table 5.8 Summary of Results of the Financial Analysis
Parameters Estimates Project Cost In million US dollars 53.03 In US$ million per kW 5,650 Project FIRR (%) 12.7% Equity FIRR (%) 17.7% FNPV at 10% (Php million) 541.38 Payback Period (years) Project 8.8 Equity 8.9 Average EBITDA Margin (%) 78.7% Average Net Profit Margin (%) 49.1% Minimum DSCR (times) 1.07 Sources: SURE Global and Consultant’s estimates
The computed project FIRR is compared with the WACC to determine the financial viability of the proposed Angeles MERF. The project FIRR should be at least equal to the computed WACC for the project to be considered financially viable (See Table 5.9). The proposed project is considered to be financially viable since the estimated FIRR of 12.7% is greater than the computed WACC of 9.7%.
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Table 5.9 Calculation of Weighted Average Cost of Capital
Financing Component Particulars Domestic ADB LGU SURE Total Loan Loan Share Global A. Amount (Php million) 1,806.14 - - 845.47 2,651.61 B. Weighting (%) 68.1% - - 31.9% 100.0% C. Nominal Cost 8.00% - - 15.00% D. Tax Adjusted Nominal Cost 7.20% - - 15.00% E. Weighted Component of - - 4.90% 4.78% 9.69% WACC Source: Consultant’s estimates
5.1.6. Sensitivity Analysis
The results of the sensitivity analyses are presented in
Table 5.10 to Table 5.13. Four factors – project cost, project delays, tariff scenarios and MSW input – were analyzed to determine the impact of changes in their assumed values on the viability of the project.
Based on the sensitivity analysis, every 5% increase in the estimated project cost could result in a 0.8 percentage point reduction in the project FIRR (see
Table 5.10). However, project cost would have to increase by more than 20% for the project FIRR to be less than the computed WACC.
Table 5.10 Sensitivity Analysis – Project Cost
Changes in Project Cost Project IRR Equity IRR -20.0% 16.7% 26.2% -15.0% 15.6% 23.7% -10.0% 14.5% 21.5% -5.0% 13.6% 19.5% 0.0% 12.7% 17.7% 5.0% 11.8% 16.1% 10.0% 11.1% 14.7% 15.0% 10.3% 13.3% 20.0% 9.7% 12.1% Source: SURE Global and Consultant’s estimates
Delays in project construction are not expected to significantly affect the financial viability of the proposed MERF (see Table 5.11). Even with a 24-month delay in project construction, the proposed MERF could still be financially viable with a project IRR of 10.0%.
Table 5.11 Sensitivity Analysis – Project Delay
Project Delay (months) Project IRR Equity IRR 0 12.7% 17.7% 3 12.0% 16.8% 6 11.8% 16.3% 9 11.4% 15.5% 12 11.1% 14.8% Source: SURE Global and Consultant’s estimates
The sensitivity analysis examines to possible scenarios for the electricity tariff – FiT and power purchase agreement (PPA). The FiT, which is currently at Php6.63 per kWh for biomass, was set by the ERC and limited to eligible developers as provided under the RE Law. In the case of the PPA, the tariff will depend on the negotiations of the project proponent with potential off- takers. The project proponent is hopeful that they would be able to forge at long-term PPA with
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off-takers at price of Php6.50 per kWh. Given the small variance in the electricity tariff under the two scenarios, it is not surprising that differences in the FIRRs are not significant (see Table 5.12).
Table 5.12 Sensitivity Analysis – Electricity Tariff
Electricity Tariff Project IRR Equity IRR FIT 12.7% 17.7% PPA 12.3% 17.1% Source: SURE Global and Consultant’s estimates
The base case assumes 250 tons of MSW per day would be delivered to the MERF. Under the long-term agreement, the minimum MSW volume that would be delivered by the city government to the facility is 230 tons per day. Table 5.13 summarizes the impact of changes in the MSW input on the IRRs. There seems to be some asymmetry in results of the sensitivity analysis. This is largely attributed to penalty provisions and revenue-sharing arrangement in the long-term agreement. Hence, it appears that it is still possible to realize IRRs greater than the base case when the city government delivers less than the guaranteed minimum MSW volume.
Table 5.13 Sensitivity Analysis – Amount of MSW Received
Amount of MSW Received Project IRR Equity IRR (tons per day) 200 11.8% 16.2% 210 12.7% 17.9% 220 13.6% 19.7% 230 11.1% 14.6% 240 11.9% 16.2% 250 12.7% 17.7% 260 13.2% 18.8% 270 13.9% 20.1% Source: SURE Global and Consultant’s estimates
5.1.7. Financial Model Assumptions
In addition to the financial analysis, based on the financial model constructed by SURE Global (dated 18 August 2017), the Consultant has reviewed the financial model assumptions from a technical perspective. Comments on the financial model assumptions are listed below:
1. The start of construction is defined as January 2017, but the FEED is still ongoing. 2. Quantity of power transformers is assumed to be 0, which is likely not the case. 3. Operating hours assumed at 8,000 per annum may be reasonable, but this does not appear to have taken into account the downtime necessary for grit removal every few years, especially for the buffer tank and anaerobic digester. 4. An assumption of 20-year depreciation appears to be a simplified approach. Particularly, some of the equipment (e.g. shredders) may have a shorter depreciation period, while others may have longer depreciation period.
5.2. Economic Analysis
5.2.1. Approach
The economic analysis was undertaken in accordance with the following ADB guidelines:
(i) Framework for the Economic and Financial Appraisal of Urban Development Sector Project; and (ii) Guidelines for the Economic Analysis of Projects.
The “Reference Manual of Project Development and Evaluation” of the National Economic and Development Authority (NEDA) was also referenced in the analysis. The economic internal
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rates of return (EIRRs) and economic net present values (ENPVs) will be computed to determine the economic viability of the proposed MERF in Angeles City.
The analysis would focus on the “with-project” and “without-project” scenarios to measure the incremental impact of the proposed project. This means that the analysis would identify the economic costs and benefits associated only with the project, and exclude other economic costs and benefits that would exist whether or not the project would be implemented. Hence, incremental project cash flows would be cash flows with the project less cash flows without the project. Detailed analysis and breakdown can be found in Annex C.
The operating life of the project is assumed to be 20 years. The proposed capital expenditures for the MERF will be implemented over a two-year period starting in 2017. All items of capital costs were depreciated on a straight-line basis and have zero salvage value at the end of the project life. Economic costs and benefits are expressed in terms of constant 2017 prices.
5.2.2. Economic Costs
As prescribed by the NEDA, the economic costs were determined by converting the financial costs into their economic equivalents using the relevant domestic price numeraire. The conversion factors that were used are: unskilled labor, 0.6; skilled labor, 1.0; foreign exchange, 1.2; and local materials, 1.0. Taxes and duties would have zero economic cost since they represent transfers to the government. Price contingencies will not be included in the analysis because costs and benefits would be expressed in terms of real prices.
The proposed MERF in Angeles City has an estimated total financial cost of Php2,741.61 million, including land acquisition cost amounting to Php90 million. Total capital cost (net of duties, taxes and other transfers) consisted of about 78.2% in tradable goods and services, 3.0% in unskilled labor and the remaining 18.7% in other non-tradable goods and services such as materials, equipment rental and skilled labor. Using the conversion factors previously mentioned, the resulting economic cost of project was computed to be Php2,128.8 million. The breakdown of the major components of project cost is presented in Table 5.14 below.
Table 5.14 Estimated Project Cost (In constant 2017 prices)
Financial Costs Economic Costs Particulars US$MM PhpMM US$MM PhpMM Total Equipment Cost 38.11 1,905.41 40.73 2,036.43 Value-Added Tax 4.45 222.75 0.00 0.00 Base Cost 42.56 2,128.16 40.73 2,036.43 Miscellaneous Costs 2.42 120.84 0.05 2.37 Initial Working Capital 0.55 27.40 0.00 0.00 Total Project Cost (Excluding financing costs) 45.53 2,276.40 40.78 2,038.80 Financing charges during implementation 4.25 212.66 0.00 0.00 Initial Debt Service Reserve Account 3.25 162.55 0.00 0.00 Land Acquisition Cost 1.80 90.00 1.80 90.00 All-In Project Cost 54.83 2,741.61 42.58 2,128.80 Sources: SURE Global and Consultant’s estimates
O&M costs from the financial analysis were converted into their economic equivalent using the conversion factors prescribed by NEDA. Projected O&M costs in the first five full years of operations of the material energy recovery facility are shown in Table 5.15.
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Table 5.15 Schedule of Operating and Maintenance Costs (In thousand pesos, constant 2017 prices)
Particulars 2019 2020 2021 2022 2023 Selling and Administrative Cost 12,767 12,959 13,153 13,350 13,551 Personnel Cost 15,986 15,986 15,986 15,986 15,986 Repairs and Maintenance 32,652 32,652 32,652 32,652 32,652 Miscellaneous Cost 2,826 2,826 2,826 2,826 2,826 Total O&M Costs 64,231 64,423 64,617 64,814 65,015 Sources: SURE Global and Consultant’s estimates
5.2.3. Economic Benefits
The economic benefits considered in the analysis are energy delivered, cost savings from the non-operation of the sanitary landfill, reduced dependence on imported fossil fuel, and reduced carbon dioxide emissions. The analysis assumed that full economic benefits would only be realized once the construction of material energy recovery is completed.
Energy Delivered. Once fully completed, the MERF can potentially generate an annual electrical output of 61,820 MWh after adjusting for operating hours, plant efficiency and parasitic load. The electrical output is assumed to be incremental in character, as it will expand power supply to meet the demands of a rapidly growing domestic economy. Energy delivered will be valued based on the average wholesale electricity spot market (WESM) price and not the FiT for biomass plants. Presently, there is an embedded subsidy in the FiT to promote the development of renewable energy resources in the country. The WESM price used in the economic analysis is Php4.00 per kWh, which is much lower than the FiT for biomass plants of Php6.63 per kWh.
Cost Savings to the City. Another benefit of the MERF is that it can take waste that is harmful to the environment and convert them to energy. This reduces the need for an engineered sanitary landfill, which is a method where waste is buried underground or in large piles. Cost savings will be based on the O&M expenses incurred by the city government in running the sanitary landfill. This is estimated to be some Php146 million based on an average daily dumpsite disposal of 250 metric tons. The annual figure for operating expenses has been adjusted for taxes and non-cash expenses such as depreciation.
Avoidance in Greenhouse Gas (GHG) Emission. Biomass energy and WTE both generate GHGs (e.g. CO2 and CH4), which is understood to be contributing to global warming. However, for biomass energy and WTE, the amount of GHGs generated per kWh should be considerably lower than coal-fired power plants under normal circumstances. As such, in the computation of avoidance in GHG emission, coal-fired power plants were used as the basis of comparison since it accounts for some 49% of gross generation in the Luzon power grid.
Based on recently completed studies, GHG emission from a coal-fired power plant is estimated 9 to be 980 grams CO2eq per kWh . For the incineration of municipal solid waste, GHG emission 10 is estimated to be 0.415 ton CO2 per metric ton of MSW . Given an annual gross generation of 70,604 MWh, total emissions for a representative coal-fired power plant will be 69,192 tons CO2 per year. On the other hand, assuming 250 tons of MSW is delivered daily to the facility for 333 days a year (approximately 8,000 hours per annum), total emissions will be 34,549 tons CO2 per year. The resulting differential or reduction in GHG emission will be 34,644 tons CO2 per annum. Value of savings in GHG emission will be based on the prevailing price of carbon credit, which traded in the world market at an average of €8 per ton CO2 in 2017.
9 Based on “Life-cycle Greenhouse Gas Emissions of Coal-Fired Electricity Generation Systematic Review and Harmonization” published in Journal of Industrial Ecology, Whitaker et al, Vol 16, S 1, 2012, Yale University. 10 http://www.ipcc-nggip.iges.or.jp/public/gp/bgp/5_3_Waste_Incineration.pdf (Page 459).
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Fuel Cost Savings. The operation of the MERF will lessen the dependence on imported fossil fuel. In the computation of the fuel cost savings, total coal (in metric tons) required to generate an equivalent volume of MWh is estimated. As previously mentioned, coal is used as the basis of comparison since coal-fired power plants account for 49% of gross generation in the Luzon power grid. Coal requirements will depend on its heating value and net plant heat rate. In the economic analysis, the heating value and net plant heat rate were set at 11,010 British Thermal Unit (BTU) per pound and 9,614 BTU per kWh. Annual deration of net plant heat rate is assumed to be 1% but there will be a 0.5% improvement if periodic maintenance will be undertaken every five years. The landed price of coal is assumed to be US$70 per metric ton.
The resulting estimates of the economic benefits are summarized in Table 5.16.
Table 5.16 Summary of Economic Costs and Benefits (in million pesos, constant 2017 prices)
Energy Avoided Costs Fuel Cost Year CO Savings Delivered from Landfill 2 Savings 2018 62.3 36.9 3.4 24.7 2019 247.3 146.3 15.0 98.1 2020 247.3 146.3 15.0 99.1 2021 247.3 146.3 15.0 100.1 2022 247.3 146.3 15.0 101.1 2023 247.3 146.3 15.0 102.1 2024 247.3 146.3 15.0 101.6 2025 247.3 146.3 15.0 102.6 2026 247.3 146.3 15.0 103.6 2027 247.3 146.3 15.0 104.6 2028 247.3 146.3 15.0 105.7 2029 247.3 146.3 15.0 105.2 2030 247.3 146.3 15.0 104.6 2031 247.3 146.3 15.0 104.1 2032 247.3 146.3 15.0 103.6 2033 247.3 146.3 15.0 103.1 2034 247.3 146.3 15.0 104.1 2035 247.3 146.3 15.0 105.1 2036 247.3 146.3 15.0 106.2 2037 247.3 146.3 15.0 107.2 2038 247.3 146.3 15.0 108.3 Source: Consultant’s estimates
The economic analysis has adopted a social discount rate of 15%. However, the NEDA decided to reduce the social discount rate to 10% for the cost-benefit analysis of recently approved public infrastructure projects. The economic planning authorities deemed the hurdle rate of 15% to be high by today’s interest rate regime.
5.2.4. Results of Economic Evaluation
The economic analysis (see Table 5.17) for the base case yields an EIRR of 18.8% and an ENPV Php415.2 million relative to a social discount rate of 15% and given a project life of 20 years. These indicate that the proposed MERF is economically viable.
The results of the economic analysis are summarized in Table 5.18.
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Table 5.17 Summary of Economic Analysis (in million pesos, constant 2017 prices)
Capital Economic Net Economic Year O&M Costs Total Costs Costs Benefits Benefits 2017 1,458.2 1,458.2 -1,458.2 2018 670.6 16.1 686.7 127.4 -559.4 2019 64.2 64.2 506.7 442.5 2020 64.4 64.4 507.7 443.2 2021 64.6 64.6 508.7 444.0 2022 64.8 64.8 509.7 444.8 2023 65.0 65.0 510.7 445.7 2024 65.2 65.2 510.2 444.9 2025 65.4 65.4 511.2 445.8 2026 65.6 65.6 512.2 446.6 2027 65.8 65.8 513.2 447.4 2028 66.1 66.1 514.3 448.2 2029 66.3 66.3 513.8 447.5 2030 66.5 66.5 513.2 446.7 2031 66.7 66.7 512.7 446.0 2032 67.0 67.0 512.2 445.2 2033 67.2 67.2 511.7 444.5 2034 67.4 67.4 512.7 445.3 2035 67.7 67.7 513.7 446.1 2036 67.9 67.9 514.8 446.9 2037 68.2 68.2 515.9 447.7 2038 68.4 68.4 516.9 448.5 Source: Consultant’s estimates
Table 5.18 Results of Economic Evaluation
Indicator Unit Estimated Value EIRR at 15% % 18.8% ENPV Php million 415.2 B/C Ratio --- 1.20
Source: Consultant’s estimates
5.2.5. Sensitivity Analysis
There are many possible outcomes for economic costs and benefits, which are the bases of economic analysis. Hence, it is highly improbable that the actual economic cash flows will be equal to the expected economic cash flows used to estimate the project’s ENPV and EIRR. Sensitivity analysis is one possible approach to address this dilemma. Sensitivity analysis evaluates the effects of changes in critical variables on the project’s ENPV and EIRR. It also helps to identify the variables that have the most impact on the ENPV and EIRR.
The sensitivity analysis assessed the following cases:
a) One-year delay in the implementation of the project (or one-year lag in the economic costs and benefits); b) 20% increase in capital and O&M costs; c) 20% decrease in economic benefits; and d) 20% decrease in economic benefits combined with a 20% increase in capital and O&M costs.
The computations of the resulting ENPV, EIRR, switching values (SV), and sensitivity indices are set out in Table 5.19.
Switching value is the percentage change in the selected variable for the project decision to change, which is for the ENPV to become zero or for the EIRR to fall to 15%. A high value
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indicates that the economic viability is insensitive to changes in the selected variable. The computed values indicate that the economic costs have to increase by at least 19.8% or economic benefits have to decrease by at least 16.5% for the project to become no longer economically viable.
Table 5.19 Results of Sensitivity Analyses
ENPV Particulars EIRR (%) SI SV (%) (PhpMM) Base Case 415.2 18.8% 1-Year Implementation Lag 343.0 18.7% 20% Increase in Project Cost -4.1 15.0% 5.05 19.8% 20% Reduction in Economic Benefits -87.2 14.2% 6.05 16.5% 20% Increase in Capital and O&M -506.5 10.8% 11.10 9.0% Costs and 20% Reduction in Benefits Source: Consultant’s estimates
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6 TRAFFIC IMPACT STUDY (TASK 5)
6.1. Description of the Host City
Angeles City, located in Central Luzon, Philippines, is a highly urbanizing city. According to the National Statistics Office (NSO), with a population of 326,336 (May 2010 census) and an average annual growth rate of 2.5%, the population of Angeles City is expected to grow to 455,422 by 2022. As of 2015, the population of Angeles City has already reached 411,634, equivalent to an average annual growth rate of 4.52%. As such, the population of Angeles City by 2022 could possibly be more than the figure projected by NSO in 2010.
Clark Freeport Zone, which is within the city of Angeles has added to the magnet of the city, attracting more tourists and foreign investors and expats. Because of this, many hotels and other recreational establishments have sprung and developed in the city. Other factors such as its proximity to major national road arteries, other economic centers as well as structured governance of the city’s leadership provide an inertia and catalyst for rapid development of the city.
Today, Angeles City is a bustling highly urbanizing city. Together with this high urbanization comes positive developments, which at the same time creates urban problems. These issues include an increase in solid waste generation, which is expected to grow over the years as the population continues to increase. The increase in solid waste generation would also result in an increase in waste collection truck trips, potentially putting pressure on the city’s traffic network.
6.2. Description of the Proposed Development
The proposed development aims to address the growing solid waste management problem in the city. It is recognized that management of MSW is a serious environmental challenge, one that poses health risks to the community if not managed properly. However, due to budget constraints, the collection, treatment and disposal of solid waste is a common problem among most, if not all, of the LGUs.
The project broadly encompasses the following:
1) Collection of all fractions of MSW from both the residential and commercial establishments; 2) Segregation of recyclable materials from its MRF employing IWS; 3) Convert residual waste into valuable component for thermal treatment and anaerobic digestion technologies; 4) Create new markets and solicit new buyers of the new products (i.e. renewable energy generated by the MERF plant); and 5) Enable the city to sustain a safe integrated solid waste management (ISWM) system by involving local and national stakeholders, including LGUs, industries, NGOs and the residents.
The proposed development will be located at the former Sports Complex in Barangay Capaya. It is accessible through Mining Road from Pandan Road for those vehicles coming from the South, using the northbound lane of Pandan Road. It is also accessible via the Tabun Road coming from Pandan Road, which will take the San Vicente Street going south and turning east at Mining Road. In addition, it is accessible from New Mexico City and San Fernando City via the eastern portion of the Mining Road (refer to Figure 6.1 below).
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Figure 6.1 Main Junctions / Intersections and Access Roads of the Study Area
Source: Google Maps, 2016 Note: Arrows indicate the Intersections in the study area.
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The proposed MERF site is directly adjacent to a middle class housing subdivision owned by Fiesta Communities. It is the site previously proposed for the development of a City Sports Complex, owned by the Angeles LGU. The plan to build the sports complex did not push through, hence, the Mayor recommended the site to be used for the proposed MERF. The site selection process was conducted with consideration of potential environmental, social and traffic impacts, as well as any potential legal barriers. This site was selected among three sites proposed for this project.
The proposed MERF is approximately 2.3 km from the corner of Pandan-Mining Road to the current entrance to the site, which is about 40 meters from the wall of the subdivision. It is part of Barangay Capaya. Figure 6.2 below shows the proposed layout of the development.
Figure 6.2 Proposed Facility Block Layout of the MERF in Angeles City
Source: SURE Global.
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6.3. Objectives and Scope of the Study
The Traffic Impact Study (TIS) aims to assess the current traffic conditions along the intersections of Pandan-Mining, Pandan-Tabun and Tabun-San Vicente Roads, the traffic conditions along Mining Road and Tabun Road, and traffic impact of the proposed project. These are the roads and intersections that are likely to receive traffic impacts of the proposed development since they are access points going to the proposed site.
Specifically, the traffic study has the following objectives:
To determine the present traffic volume at peak hour periods along Pandan Northbound lane (Pandan-Mining towards Marquee Mall), along Pandan Southbound lane (Pandan-Mining to Centro); Pandan-Tabun Northbound lane (Pandan-Tabun to Marquee); Pandan- Tabun Southbound lane (Pandan-Tabun to Centro); along Mining Road (both lanes), Tabun Road (both lanes), and San Vicente St. (both lanes). To estimate the future traffic volume along Mining Road to factor the proposed project and the normal growth of traffic in the vicinity. To propose traffic management measures to address potential traffic impacts of garbage hauling trucks going in and out of the proposed MERF and, if possible, come up with a proposed traffic management plan.
The study is limited to the aforementioned intersections and the surroundings of the proposed project development.
6.4. Methodology
The Traffic Impact Assessment (TIA) process guide published by the University of the Philippines National Center for Transport Studies Foundation, Inc. (U.P. NCTS Foundation) was adopted for the TIS. The impact assessment process is summarized in Figure 6.3 below:
Figure 6.3 Summary of TIA Process Guide (UPNCTS Foundation, Inc.)
Step 1: Determination of Scope of Work
Step 2: Data Collection Primary Data from Traffic Survey and Secondary Data
Step 3: Traffic Impact Analysis Intersection and Arterial Capacity Analysis; Assessment of Infrastructure
Step 4: Traffic Impact Mitigation Identification of Traffic Mitigation Measures and Traffic Management Plan
6.4.1. Identification of Peak Hours and Days of Observation
The study was conducted for the purpose of determining the traffic impact of solid waste collection trucks on the identified access points. Hence, it was deemed necessary to conduct a compact and short-term study only. The peak hours were identified with the help of the City Engineer and CENRO Officer. Having discussed with the City Engineer and CENRO Officer, and subsequently with SURE Global, it was decided that the team should observe and conduct
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the traffic volume count during the peak hours, since peak hours traffic is considered to be the busiest time of the day, and thus, the increased traffic from the proposed development is anticipated to have some traffic impacts during those hours. The traffic volume count was conducted for three days in January 2016 on Sunday, Monday and Friday during the following time period (identified as peak hours in Angeles City):
6:00 – 8:00 AM
11:00 AM – 1:00 PM
5:00 – 7:00 PM
6.4.2. Selection of Survey Locations
Table 6.1, Figure 6.4, Figure 6.5 and Figure 6.6 below illustrate the selected survey locations. These locations / intersections were selected because they are the main access points for the proposed site of the MERF.
Table 6.1 Traffic Survey Locations
Location Direction* No. Pandan to Marquee (Pandan-Mining Intersection) (Northbound) In 1 Pandan to Marquee (Pandan-Mining Intersection) (Northbound) Out 2 Pandan to Centro (Pandan-Mining Intersection) (Southbound) In 4 Pandan to Centro (Pandan-Mining Intersection) (Southbound) Out 3 Mining Road (Pandan-Mining Intersection) (Westbound) In 5 Mining Road (Pandan-Mining Intersection) (Eastbound) Out 5 Pandan (Pandan-Tabun Intersection) (Northbound) In 6 Pandan (Pandan-Tabun Intersection) (Southbound) Out 7 Pandan-Tabun Road (Pandan-Tabun Intersection) (Westbound) In 8 Pandan-Tabun Road (Pandan-Tabun Intersection) (Eastbound) Out 8** Pandan-Tabun Road (Tabun-San Vicente Intersection) (Westbound) In 9 Pandan-Tabun Road (Tabun-San Vicente Intersection) (Eastbound) Out 9 San Vicente (Tabun-San Vicente Intersection) (Northbound) In 10 San Vicente (Tabun-San Vicente Intersection) (Southbound) Out 10 Magnolia (cor Magalang) (Eastbound) In ** Magnolia (cor Magalang) (Westbound) Out ** Note: * “In” means coming into the intersections and “Out” means going out of the intersection. ** Traffic counts done by volunteer
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Figure 6.4 Intersection 1 – Pandan-Mining Intersection
Source: Google Maps, 2016
1 = Pandan to Marquee (IN); 2 = Pandan to Marquee (OUT); 4 = Pandan to Centro (IN); 3 = Pandan to Centro (OUT); 5 = Pandan-Mining Road (IN & OUT); 12 = Magnolia St)
Figure 6.5 Intersection 2 – Pandan-Tabun Road Intersection
Source: Google Maps, 2016 Note: Station 11 was combined with Station 8.
6 = Pandan Road (IN); 7 = Pandan Road (OUT); 8 = Pandan – Tabun Road (OUT); 11 = Pandan-Tabun Road (IN)
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Figure 6.6 Intersection 3 – Pandan-Tabun Road & San Vicente Street Intersection
Source: Google Maps, 2016
9 = Tabun-San Vicente Road (IN & OUT); 10 = San Vicente St (IN & OUT)
6.4.3. Preparation for the Survey
A reconnaissance survey of the study area was conducted prior to the actual survey to check on observation areas. The first reconnaissance survey was conducted in August 2015 and the second survey was conducted in December 2015. These were done to firm up location points of observers during actual count and also to check on possible problems during counting and create strategies for smooth observations.
Tally sheets were prepared for distribution to 11 observers (counters)11. Counters counted the traffic flow three times a day for three days at intervals of 30 minutes per selected time slot. As such, every counter should have 4 sets of tally sheet for every assigned peak hour. In all, a total of 144 tally sheets per day and a total of 432 tally sheets were used for the whole observation period.
Although 12 stations were identified (see Table 6.1, Figure 6.4, Figure 6.5 and Figure 6.6), during the counting, the hired counters were reduced to 10 as one of the counters experienced some difficulties with counting on both side of the street during peak hours. As such, a volunteer pitched in to do the counting in place of the hired counter. Station number 12 was taken over by the Consultant. However, since the Consultant had to leave the post to monitor the survey and to do another portion of the study, a portion of the time period was not counted as was thus, not included in the analysis. The data here will be compensated by the counts at Mining Road and along Pandan Road since the vehicles coming from this street go either straight to Mining Road, turn left to Pandan Road (northbound lane) or turn right to Pandan Road (southbound lane), which have counters. Hence, the cars coming in are already counted along the stations.
11 Traffic Count Survey Form is provided in Annex D.
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Also, those going out of Pandan Road into this road no longer impacts the traffic at the intersection.
Traffic safety vests were also procured and provided to all observers/counters for their safety.
6.4.4. Traffic Count
10 hired observers (counters) were posted at stations 1-10 (refer to Figure 6.4, Figure 6.5 and Figure 6.6 for more details). Two volunteer counters pitched in as it was realized that one of the hired counter found it difficult to count both lanes when the traffic is heavy and all types of vehicles are going back and forth on the opposite lanes.
Counting of vehicles was done according to the schedule mentioned, but counting was done at interval of 30 minutes for two continuous hours within the selected peak time period for 3 selected days (i.e. Sunday, Monday and Friday). The following types of vehicles were counted:
1) Big trucks – all types of big trucks
2) Small trucks – all types of small trucks
3) Cars
4) Vans
5) Motorbikes
6) Tricycles
7) Jeepneys
Buses are not regularly seen in the city, but were noted when they passed by during the traffic count survey.
All counters assembled at the Mining Barangay Hall, given tally sheets on a clip board with pens and traffic safety vests. They were also briefed and then ferried to their stations at 5:30 AM, 10:30 AM and 4:30 PM respectively during the days of counting. They were also picked up from their stations after the counting and taken back to Mining Barangay Hall.
Counting of vehicles started at 6:00 AM for the interval of every 30 mins thereafter until 8:00 AM in the morning. Then, they start again at 11:00 AM, every 30 minutes until 1:00 PM, then at 5:00 PM, every 30 minutes until 7:00 PM. As such, each counter counted in one tally sheet from 6:00-6:30 AM, changed tally sheet and counted from 6:30-7:00 AM and so forth. Each tally sheet is already marked for counting so that counting was continuous.
6.4.5. Desktop Review of Literature
In addition to the preparation of the survey, a desktop literature review was conducted to find related literature to be used as references for methodology and analysis of data for this study.
6.5. Primary Impact Areas
6.5.1. Pandan Road12
General Description
This is a major two-way, 2-lane, 2.5 kilometer stretch of national road connecting Manila North Road to the North Luzon Expressway. As shown in Figure 6.7, this is a major access point for those going to Mining Road (Barangay Mining) or to the subdivisions of Fiesta Communities along Tabun Road and Metrogate (Barangay Tabun). Pandan Road is an asphalt-paved road,
12 Also known as Angeles-Magalang Road.
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with concrete shoulders, and is primarily used by all dump trucks going to Capaya MRF, located to the northeast of the proposed project site. This is a very busy road and is characterized by a mixed land use, where commercial establishments, schools, as well as residential subdivisions can be found.
Figure 6.7 Pandan Road (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersectionz under this Study)
Source: Google Maps, 2016
This road is reasonably traversed by all types of vehicles and is oftentimes characterized by heavy traffic throughout most of the day as it is a major access road gong to the major subdivisions around the area. Figure 6.8 shows a portion of Pandan Road (Magalang) from the stand point near Tabun Road. Without any other access to the proposed site of the MERF at the time of TIS, this road will be the main access road for all garbage trucks going to the MERF from most collection points within the city.
Land Use
Pandan Road is a major thoroughfare surrounded with mixed use development such as commercial, institutional and residential land uses. However, it is predominantly developed as a commercial area, lined primarily by various commercial establishments.
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Figure 6.8 Pandan Road (Magalang) nearby Tabun Road
6.5.2. Mining Road
General Description
As the major access road to the proposed site for the MERF, Mining Road in Barangay Mining is considered to be the primary impact area. The proposed MERF is approximately 2.3 km from the intersection of Pandan-Mining Road. The route from Pandan-Mining intersection to the proposed site is shown in Figure 6.9.
Mining Road is a fully concreted two-way road, about 5.3 meters wide, mostly constructed with no sidewalks as shown in Figure 6.10.
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Figure 6.9 Mining Road (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersections under this Study)
Source: Google Maps, 2016
Figure 6.10 Entrance of Mining Road from (Magalang) Pandan Road
Mining Road continues eastward to Capaya from the proposed MERF then veers southwestward then southwards to Barangay Malino, which is already part of San Fernando City, the capital city of Pampanga.
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It should be noted that, as of the traffic count survey in January 2016, 16 barangays in addition to Capaya Barangay were sending their waste to the Capaya cluster MRF (see the list in Table 6.2 below). The Capaya Cluster MRF is located to the northeast of the proposed MERF and that all the garbage disposal trucks going to Capaya Cluster MRF would pass through Mining Road. To access Capaya Cluster MRF, the trucks would use the same access road as the proposed site (on Mining Road) and go further on Capaya I Road (see Figure 6.1 for more details). The waste from these barangays is transported to the assigned cluster MRF before it is further segregated and collected by the hauler to the Kalangitan ESLF.
Table 6.2 Cluster Barangay MRFs and Individual MRFs
Cluster MRF Barangays Anunas Pampang Sta. Trinidad Margot Sapang Bato Sto. Rosario San Nicolas Lourdes Northwest Capaya Capaya Tabun Pandan Pulung Maragul Pulung Cacutud Pulung Bulu Sapalibutad Ninoy Aquino Salapungan Sto. Cristo San Jose Claro M. Recto Lourdes Sur East Virgen De Los Remedios Sto. Domingo Balibago Sta. Teresita Individual MRFs Cut-cut Malabanas Cuayan Cutud Lourdes Sur/Agapito Del Rosario Mining
Land Use
The area surrounding Mining Road was mainly and formerly an agricultural area. However, the destructive eruption of Mt. Pinatubo back in 1991 rendered the area not suitable for agriculture due to the surge of lahar, volcanic ash and other pyroclastic materials that practically covered the area.
Since then, the area had a shift of land use from agricultural to residential and institutional uses. Currently, the area on both sides of the road are dotted with sari-sari stores, public schools (Mining Day Care Center and Barangay Mining Elementary School), private school (Dominican School of Angeles City Foundation), businesses, function and resort areas, residential areas
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(middle class housing subdivisions), small houses, Christian churches (Catholic and Jehovah), event hall, barangay hall of Barangay Mining, and some still vacant lots that have been earmarked for future developments. Some portions are planted with coconuts, while others are merely grassland areas, which are remnants of rice fields (see Figure 6.9).
6.6. Secondary Impact Areas
6.6.1. Pandan-Tabun Road
General Description
Pandan-Tabun Road (shown in
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Figure 6.12) is located in a more commercialized area compared to Mining Road. It leads straight into another Fiesta Communities Subdivision, which is a very densely populated middle class housing subdivision. Therefore, this road is comparatively busier. The road is the main access road to a housing development called Citicenter. Pandan-Tabun Road is a fully concreted two-way, with a roadway size of 4 m, but with more space for expansion on the right side (shown in Figure 6.11).
Some dump trucks going to Capaya MRF Cluster were seen using this road during the traffic count survey.
Figure 6.11 Pandan-Tabun Road is dominated by Institutional Land Use
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Figure 6.12 Pandan-Tabun Road (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersections under this Study)
Source: Google Maps, 2016
Land use
Pandan-Tanbun Road is characterized by mixed use development on both sides. Located along the road are a tricycle terminal at the entrance, a fundamental Christian church, ambulant food vendors, a Montessori School, a private high school, convenience store, and other small stores and private businesses. Two large middle class housing subdivisions are bisected by this road. It ends right at the entrance of Fiesta Communities.
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Figure 6.12 shows the location of Pandan-Tabun Road.
6.6.2. San Vicente Street
General Description
As we can see from Figure 6.13, San Vicente Street is a relatively narrow barangay road, which lies perpendicular to Pandan-Tabun Road and connects this road to Mining Road. It is approximate 1.4 km from Pandan-Tabun Road to Mining Road. Although concreted at the start from Pandan-Tabun Road, concreting ends at Metro Gate where it continues as a gravel road, very narrow and with a huge swath of untilled farmland on both sides after Metro Gate Subdivision.
Figure 6.14 shows the location of San Vicente Street and how it connects to Mining Road and Pandan-Tabun Road.
Figure 6.13 San Vicente Street
Figure 6.14 San Vicente Street (Blue) relative to the Project Site (Red Pin) (Green pins refer to the three intersection under this Study)
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Source: Google Maps, 2016
Land use
San Vicente Street traverses a residential area, with two huge subdivisions dominating the landscape. At the traffic count survey, there is a vacant farm lot on the southern portion of the road from Pandan-Tabun Road.
6.7. Results of the Traffic Count Survey
6.7.1. Characterization of Baseline Traffic
Since there were no previous traffic studies for this area, the results of this survey constitute the baseline traffic flow for this particular study. A summary of the three-day traffic count (peak hour volume) is provided in Annex D. The actual traffic count survey data can be found in Annexes E-H of this report.
In general, observations showed that during the morning hours, at 6:00 AM, at the start of the observation, traffic condition is considered as “Light” to “Moderate” at all the intersections13. Traffic starts to build up by 6:30 AM and becomes congested before 7:00 AM especially along the Pandan-Mining intersection, reaching its peak at around 7:30-8:00 AM. After that the rush hour has passed and the traffic condition becomes “Moderate” again. Similarly, during the noon time and evening observations, traffic was “Moderate” at the start of each counting period. Traffic builds up and starts to slowly dwindle after the end of each counting period.
13 Traffic condition is being categorized with the rating and definition presented in Table 6.3.
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Analyses representing the volume of traffic (number of vehicles) from the resulting traffic volume count survey can be found in the following sections. The floating car survey conducted along the entire length of Pandan Road recorded an average speed of 4.6 kph, which is an indication of saturated flow.
6.7.2. Pandan-Mining Road Intersection
The Pandan-Mining Road intersection has been observed to be heavily congested during the peak hours of the day as this is a common access point for vehicles coming from various places in Angeles City. Figure 6.15 indicates the directions of traffic flow going in and out of Pandan- Mining intersection, which shows that it is a major intersection and a major access point for vehicles coming from all directions. Figure 6.16 shows the actual traffic at the intersection around noontime, where different kinds of vehicles are converging at the intersection.
Figure 6.15 Direction of Traffic at the Pandan Road-Mining Road Intersection
Source: Google Maps, 2016
Pandan Road
In general, the average daily traffic at this intersection on the northbound lane of Pandan Road going towards the Marquee Mall comprises of a huge volume of cars, motorbikes and tricycles as well as jeepneys going in and out of the intersection. Although big trucks would occupy a large portion of the road when they pass by, there were not many big trucks and they do not come by as often as the smaller types of vehicles. In Figure 6.17 below, it can be seen that there are more vehicles going out of the intersection on the northbound lane than coming in, except for big trucks and vans. This is due to the merging of vehicles coming from Mining Road and Magnolia Street.
Figure 6.16 The Traffic at Pandan-Mining Intersection around Noontime
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Figure 6.17 Computed Average Peak-Hour Traffic on the Northbound Lane of the Pandan-Mining Intersection during the Peak Hour Periods of the Study
1800 1600 1400 1200 1000 800 600 400 200 0 Big trucks Small Cars Vans Motorbikes Tricycles Jeepneys Trucks
Coming IN Going OUT
The percentage of the different types of vehicles passing through the Pandan-Mining intersection were then computed and presented in Figure 6.18. It can be observed that motorbikes occupy a huge percentage of the total vehicles passing by during the peak-hour periods of the study, followed by tricycles, private cars and jeepneys. It can also be observed that lighter vehicles (private cars, vans, jeepneys, tricycles, and motorbikes) occupy a higher percentage of the traffic, while heavier vehicles (big and small trucks) occupy a smaller percentage of the traffic (2% coming in and 6% going out).
Nevertheless, all the vehicles traversing the route and converging at this access point creates traffic congestion as observed during the peak-hour periods. Traffic enforcers can be seen manning the traffic only during the peak hour periods.
Figure 6.18 Percentage of Types of Vehicles Travelling through the Northbound Lane of Pandan-Mining Intersection during the Peak Hour Periods of the Study
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On the southbound lane of Pandan Road (Mining intersection), the computed average peak- hour traffic comprises a large volume of motorbikes, cars and tricycles going into the intersection. A moderate volume of jeepneys join these vehicles together with a smaller volume of small trucks and vans. The average daily traffic of big trucks is relatively small compared to the aforementioned vehicles. This trend is followed as the vehicles go out of the intersection on the southbound lane going to Centro (Poblacion) as shown in Figure 6.19. From Figure 6.19, it is also found that more vehicles are going out compared to those coming in, except for the vans and small trucks. These additional vehicles come from Mining Road and Magnolia Street turning to Pandan Road on the southbound lane going towards the direction of the old town center (Centro).
Figure 6.19 Computed Average Peak-Hour Traffic on the Southbound Lane of the Pandan-Mining Intersection during the Peak Hour Periods of the Study
1800 1600 1400 1200 1000 800 600 400 200 0 Big trucks Small Cars Vans Motorbikes Tricycles Jeepneys Trucks Coming IN Going OUT
The percentage composition of vehicles was likewise computed for the southbound lane of the Pandan-Mining intersection as shown in the Figure 6.20 below. It indicates a huge percentage composition is occupied by motorcycles, followed by private cars, tricycles and jeepneys. Heavy vehicles occupy a small percentage of the traffic as has been observed. However, they occupy large space on the road when the traffic in their lanes grounds to a halt to allow vehicles from
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other lane to pass through14. Vans occupy a small percentage of the traffic in this intersection, similar to that of the northbound lane.
Figure 6.20 Percentage Composition of Vehicles Travelling through the Southbound Lane of the Pandan-Mining Intersection
Mining Road
The Mining Road is, at the time of traffic count survey, serving as the main access road to Capaya Cluster MRF and it will serve as the main access for the proposed MERF. The average daily traffic for Mining Road is relatively smaller in volume than that of Pandan Road since this is not a major highway. Considering that Mining Road is dotted by schools (public and private) and other institutions, resort function area and two big middle-class housing subdivisions and that it serves as the main access for dump trucks for the Capaya cluster, the more dominant vehicles observed on this road are the tricycles and motorbikes. Those modes of transportation are considered the most convenient forms of transportation for small barangay roads such as Mining Road.
Figure 6.21 below shows the average number of vehicles on both lanes of the Mining Road during the peak hours. The data shows that there are more tricycles coming from Mining Road into Pandan Road. The average number of motorcycle traffic follows that of tricycles. The number of cars, even though not as many as those of tricycles and motorcycles, are still quite high (average of 408 cars of the 2,240 vehicles that passed along this route during the peak- hour period). The cars are most likely coming from the middle-class housing subdivisions. It can be seen that jeepneys, small trucks and vans also take this route. Big trucks also use this route, but only in small amount (16 trucks out of 2,240 vehicles that came in to the intersection and 2,180 that went out respectively).
14 By DPWH standards, big trucks have a passenger car equivalent of 2.5 time the size.
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Figure 6.21 Computed Average Peak-Hour Traffic on Both Lanes of Mining Road during the Peak Hour Periods of the Study
900 800 700 600 500 400 300 200 100 0 Big trucks Small Cars Vans Motorbikes Tricycles Jeepneys Trucks
Coming IN (westbound) Going OUT (eastbound)
Figure 6.22 below also shows the percentage composition of vehicles along Mining Road coming in and going out of the Intersection. It shows that tricycles (36% in and 35% out) and motorbikes occupy a high percentage (33% in and 33% out) of all the vehicles coming in and going out. Also, the percentage of all vehicles coming in and going out of this intersection is similar during the peak-hour periods of the study.
Figure 6.22 Percentage Composition of Vehicles Travelling through the Intersection during the Peak-Hour Period of the Study
In general, based on actual visual observation and as recorded in the traffic count survey, it can be observed that there was a large number of vehicles (a total of 37,923 vehicles or an average of 12,641 vehicles per observation day during the peak-hour period) passing through the Pandan-Mining Intersection during the indicated peak-hour periods of the study. According to the traffic enforcer stationed at that intersection, the congested traffic situation is a daily occurrence and it could get even worse on given days (such as public holidays). This large volume of vehicles (an average of 1,405 vehicles per peak-hour) creates the traffic congestion experienced by the motorists during the peak-hour periods along this Pandan-Mining Intersection. Along Pandan Road alone, the average daily peak-hour traffic (for the three-day observation period) was computed to be 15,550 vehicles on a regular flat terrain. Day 2, which
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was a Monday, recorded a total of 17,178 vehicles. This volume of vehicles surpassed the standards set by the DPWH of 16,000 vehicles (daily capacity) on a multiple peak-hour traffic, with each vehicle no more than 8% of daily traffic, for a 7-m wide road with a shoulder with of 2-2.5 m on either side, similar to Pandan Road (but without intersection).
6.7.3. Pandan-Tabun Intersection
Both Pandan and Tabun Roads are two-way lane paved roads, without any concrete sidewalks. This is a very busy intersection, especially during the peak hours. The traffic is oftentimes slow, coming from all directions due to the volume of incoming and outgoing vehicles. Figure 6.23 below is a photo of the intersection and Figure 6.24 shows the directions of traffic along this intersection.
Figure 6.23 Pandan-Tabun Road Intersection
Figure 6.24 Directions of Traffic flow at the Pandan-Tabun Road Intersection
Source: Google Maps, 2016
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Pandan Road
During peak-hour period of observation, the average number of vehicles that passed through Pandan Road on the northbound lane is 4,675 vehicles, while there were an average of 5,092 vehicles going out towards the southbound lane of Pandan Road in this intersection. Pandan Road is dominated by motorcycles (total count of 3,968 or an average of 1,322 vehicles per daily peak-hour period of observation) coming from the southern portion towards the direction of Marquee Mall on the northbound lane. The volume of tricycles is also relatively large (a total of 3,570 vehicles or a computed average is 1,190 vehicles). It can be assumed that these vehicles are going to Pandan-Tabun Road to ferry students as Pandan-Tabun Road is occupied by private schools on both sides.
There was also a large volume of jeepneys (a total of 4,442 vehicles or an average of 1,480 vehicles per day of peak-hour observation) but fewer than tricycles (7,784 vehicles or an average of 2,595 tricycles per daily peak-hour observation period). The daily average number of cars coming in to the intersection is about 532, which is considerably less than the Pandan- Mining Intersection. Outgoing traffic (southbound) contains more vehicles such as tricycles, motorbikes, cars, and jeepneys in that order. The volume of vans is considerably lower than big trucks. The volume of small trucks was also low (an average 64 trucks out of the 4,675 vehicles that passed through the northbound lane and an average of 301 out of the average 5,092 vehicles respectively) as can be seen in Figure 6.25 below.
Figure 6.25 Computed Average Peak-Hour Traffic on Both Lanes of Pandan Road during the Peak Hour Periods of the Study
1400
1200
1000
800
600
400
200
0 Big trucks Small Cars Vans Motorbikes Tricycles Jeepneys Trucks Coming IN (Northbound) Going OUT (Southbound)
The computed average peak-hour traffic based on the traffic count survey shows that there is a large volume of motorbikes dominating the traffic, followed by tricycles, then cars and jeepneys going through this route. From the data gathered, there was an average of 1,319 motorbikes out of 4,675 vehicles on the northbound lane and an average of 1,275 motorbikes out of the average 5,092 vehicles that passed through the southbound lane of this road.
From Figure 6.25, it can be noted that cars on the southbound lane (1,128) are more than the northbound lane (534), which is 47% more than those on the northbound lane. Since counting for this was done at Station 7 (refer to Figure 6.5), it can be attributed to the fact that cars from Tabun Road are turning left to go to the southbound lane.
Figure 6.26 below shows the average percentage peak-hour traffic on both lanes of Pandan Road along the Pandan-Tabun Intersection.
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Figure 6.26 Percentage Vehicle Composition on Both Lanes of Pandan Road along Pandan-Tabun Intersection
Tabun Road
The computed average daily traffic based on the traffic count survey shows that there is a large volume of tricycles dominating the traffic, followed by motorbikes, then cars and jeepneys going through this route. From the data gathered, there was an average of 1,319 motorbikes out of an average of 4,675 vehicles on the westbound lane and an average of 1,275 motorbikes out of the average 5,092 vehicles that passed through the eastbound lane of this road. Figure 6.27 below shows the average number of vehicles (computed as average peak-hour traffic) on both lanes of Tabun Road.
Figure 6.27 Computed Average Peak-Hour Traffic on Both Lanes of Pandan-Tabun Road during the Peak Hour Periods of the Study
1600 1400 1200 1000 800 600 400 200 0 Big trucks Small Cars Vans Motorbikes Tricycles Jeepneys Trucks Coming IN (Westbound) Going OUT (Eastbound)
Figure 6.28 shows the percentage composition of vehicles along this portion of the intersection. It is noted that tricycles have dominated the mix of vehicles along this section of the road, with 37% (1,305) of the average number of vehicles (3.778) coming into the intersection and 41% or 941 of the average number of vehicles (2,273) going out of the intersection on the eastbound lane.
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Figure 6.28 Percentage Composition of Vehicles Travelling through Tabun Road along Tabun-San Vicente Intersection
6.7.4. Tabun-San Vicente Intersection
Tabun Road
Tabun Road, also called Pandan-Tabun Road, is a wide city road. It is partially paved and without any sidewalks on the side. Tabun Road is surrounded by various land uses on both sides, primarily commercial, institutional and residential. The mixed use character along Tabun Road is primarily due to the presence of large middle class housing subdivisions around this area. Schools and commercial establishments cater to the needs of the surrounding communities. Due to the presence of private high school and grade schools in this area, many children can be seen during the peak hours of the study since this is the time of dismissal from classes and many vehicles come dropping off the children in the morning and picking up the school children to take them back home in the late afternoon.
In this portion of the Tabun Road, the land use of the surrounding area is mainly residential with some small commercial establishments. At this intersection, the Tabun Road becomes the Fiesta Road as it proceeds towards the entrance to the Fiesta Communities, a middle class housing subdivision with about 1,500 houses, which are currently partially occupied.
Figure 6.29 below is a photo showing a portion of the Tabun Road, view from Fiesta Communities Entrance gate. The carwash is located at the corner of Tabun Road and San Vicente Street.
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Figure 6.29 Tabun Road at the Corner of San Vicente Street and the Gate of Fiesta Communities
Based on the traffic count survey, the average peak-hour traffic shows a huge volume of tricycles, followed by motorcycles using both lanes of the road. The volume of cars is about half of the volume of tricycles counted in this area as can be seen in Figure 6.30.
Figure 6.30 Computed Average Peak-Hour Traffic on Both Lanes of Tabun Road (San Vicente Intersection) during the Peak Hour Periods of the Study
1000 900 800 700 600 500 400 300 200 100 0 Big trucks Small Cars Vans Motorbikes Tricycles Jeepneys Trucks
Coming IN (Eastbound) Going OUT (Westbound)
Taking the percentage of vehicle composition passing along this route, it can be seen from Figure 6.31 that tricycles and motorbikes are the most common form of vehicle using this route as they occupy a large portion of the total average vehicle composition at this intersection. For example, as shown in Figure 6.31, motorbikes occupy 32.38% (an average of 722 motorbikes out of the total average 2,200 vehicles) of the average number of vehicles coming into Tabun Road from San Vicente Street and 31.97% (an average of 727 motorbikes out of the total average 2,273 vehicles) going out of Tabun Road to San Vicente Street respectively. Also, tricycles occupy 41.67% of the 2,200 vehicles coming from San Vicente Street to Tabun Road and and 41.39% of the average 2,273 vehicles going out from Tabun Road to San Vicente Street.
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Figure 6.31 Percentage of Vehicle Composition Travelling through Tabun Road from San Vicente Street
San Vicente Street
San Vicente Street is a major access point for vehicles going to and from Metro Gate and Fiesta Communities, both big middle-class housing subdivisions in the Eastern portion of Angeles City. San Vicente is a narrow barangay road, with various land uses on both sides but primarily a residential zone. This street connects Mining Road to Tabun Road and vice-versa. The land uses on both sides are primarily residential. On the eastern side is the Metro Gate, a big upper middle-class housing which extends to Mining Road. Figure 6.32 below shows the average number of vehicles (computed as average peak-hour traffic) at San Vicente Street during the traffic count survey.
Figure 6.32 Average Peak-Hour Traffic at San Vicente Street during the Traffic Count Survey
800 700 600 500 400 300 200 100 0 Big trucks Small Cars Vans Motorbikes Tricycles Jeepneys Trucks
Coming IN (Northbound) Going OUT (Southbound)
Percentage composition of vehicles (Figure 6.33) shows tricycles are 41% (an average of 764 of the total average 1,776 vehicles) of the vehicles on the northbound lane and 40% (757 of 1,814 average number of vehicles) on the southbound lane, followed by motorcycles, which are 32% of all vehicles on the northbound lane and 34% on the southbound lane. Cars follow at 11% on the northbound lane and 12% on the southbound lane. Jeepneys and vans have a similar percentage to the total vehicle traffic on the north and southbound lanes passing the road during the peak-hour traffic.
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Figure 6.33 Percentage Composition of Vehicles on the Northbound and Southbound Lanes of San Vicente Street
6.8. Traffic Impact Analysis
6.8.1. Level of Service (LOS) Standards
Level of Service (LOS) is a qualitative measurement, which describes traffic conditions in terms of speed, travel time, freedom to maneuver, comfort, convenience, traffic interruptions and safety as well as the quality of service of road traffic. It is used to analyze highways by categorizing traffic flow and assigning quality levels of traffic based on performance measure like speed, density, etc.
Table 6.3 below shows the LOS ratings developed by the Department of Public Works and Highways (DPWH) based on the Highway Capacity Manual (HCM) of the Highway Research Board, Washington D.C., 1965. This table is used to describe the LOS observed during the peak hour periods in the intersections studied.
Table 6.3 Level of Service Rating Scale
LOS Volume- Traffic Description Average Rating Capacity Condition Speed of Ratio Vehicles A 0.00-0.19 Very Light Free flow, low volumes and densities; drivers can 95-110 kph maintain their desired speeds with little or no delay and are unaffected by movement of other vehicles B 0.20-0.44 Light Reasonably free flow, operating speeds beginning 80-95 kph to be restricted somewhat by traffic conditions. Drivers still have reasonable freedom to select their speeds C 0.45-0.69 Moderate Speeds remain near free flow speed, but freedom 64-80 kph to maneuver is noticeably restricted. D 0.70-0.84 Moderately Speed begins to decline with increasing volume. 56-64 kph heavy High density flow in which freedom to maneuver is further reduced and traffic stream has little space to absorb disruptions E 0.85-1.00 Heavy Unstable flow, with volume at or near capacity. 45-56 kph Freedom to maneuver is extremely limited with poor levels of comfort and convenience. F >1.00 Very heavy Forced traffic flow in which the amount of traffic 0-45 kph approaching a point exceeds the amount that can be served; saturation traffic volumes; stop and go situation
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Note: Developed by the Department of Public Works and Highway based on the Highway Capacity Manual of the Highway Research Board, Washington, D.C., 1965.
6.8.2. Peak Hour Analysis
During the peak-hour periods, the traffic count survey revealed a total count of 20,724 (10 January 2016), 23,395 (11 January 2016) and 23,808 (15 January 2016) vehicles respectively were recorded to have traversed Pandan Road along the Pandan-Mining Intersection. During the peak-hour periods, i.e. three peak time observations (AM, Noon, PM) on Monday, Friday and Sunday, this recorded number of vehicles is considered to be extreme traffic situation15. Translating to the LOS of the intersection studied, the rating based on the above table falls between the “E” to “F” scale16, wherein, as actually observed, the traffic was “Heavy” to “Very Heavy” since it gets congested (traffic sometimes comes to a gridlock) during the peak hour periods as observed in the intersections. The Pandan-Mining Intersection becomes very congested at the observed peak hours. These are also the times, as observed, when a traffic enforcer is posted along this intersection to direct the traffic to prevent grid lock situations.
Along Pandan Road at the Pandan-Tabun Intersection, it was observed that the total number of vehicles that traversed this road were 6,967 (10 January 2016), 10,532 (11 January 2016) and 11,729 (15 January 2016) respectively. Thus, a rating of “D” to “F” was assigned for this road. The traffic was observed to be “Heavy” to “Very Heavy” at this intersection. Again, it was observed that a traffic enforcer is posted at this intersection during the peak hour periods to direct the traffic to prevent gridlock.
For both intersections, i.e. Pandan-Mining and Pandan-Tabun, the traffic condition are better at certain times. The LOS during non-peak hour periods17 becomes a “C” and sometimes “B”, but the traffic starts to build up as the peak-hour period approaches. According to the conversation with the traffic enforcers, sometimes these peak-hour traffic stretches out throughout the day, which becomes a near-congestion situation (“Moderately Heavy” to “Heavy”) outside of the peak-hour periods.
Along Mining Road at the Pandan Mining Intersection, the number of cars that traversed this road during the period of TIS was 3,268 (10 January 2016), 4,855 (11 January 2016) and 6,021 (15 January 2016) respectively. The traffic condition during the peak hour period was inferred, based on Table 6.3 to be “D” to “E”. Although the traffic during the peak hours is usually directed by traffic enforcers, all vehicles turning right or left or going straight to Magnolia are stopped due to the level of congestion along Pandan Road. According to the chairman of Barangay Mining, sometimes traffic would be at standstill until the point of the barangay hall, which is about 700 meters away from the intersection.
Likewise, along Tabun Road at the Pandan-Tabun intersection, the 3-day traffic count during the peak hour period recorded a total of 5,533 vehicles (10 January 2016), 9,157 vehicles (11 January 2016) and 8,460 (15 January 2016), which also indicate a “Moderately Heavy” to “Heavy” LOS (“D” to “E”) during the peak hour periods as observed.
15 Extreme traffic conditions refer to that situation on the road or intersections wherein demand approaches the capacity of the road, resulting in queuing of vehicles and comes to a full stop. The situation causes frustration among drivers. 16 Due to lack of data, the rating was inferred based on the observation of the traffic condition during the traffic survey in relative to the description of the traffic condition presented in Table 6.3. 17 Peak hour periods here refer to the time of observation (6:00-8:00 AM; 11:00 AM-1:00 PM, 5:00 -7:00 PM). Non-peak hours or after the peak hours are the periods in-between.
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6.8.3. Estimation of Traffic Generation Attributed to the Project
During construction of the MERF, heavy vehicles delivering materials and equipment to the Project site could possibly add burden to the access roads and intersections being studied in the TIS.
CENRO also reported in 2012 that there were approximately 78 waste collection truck-trips utilizing the TrS / Central MRF per day. Assuming the city will not be replacing the existing waste collection trucks with larger capacity ones, these some 78 waste collection truck-trips or roundtrips would be added to the access road and intersections during the MERF operation stage.
Since solid waste generation is correlated to population growth, such that when the population in the city increases, the quantity of solid waste generation also increases. Table 3.6 presents the population projection of Angeles City from 2014 to 2022 provided by NSO. With the probable increase in population, especially in the community of Mining18, Tabun and Capaya nearby that are residential zone with developing subdivisions, the quantity of solid waste generation could also increase proportionally. As such, it is anticipated that more waste collection trucks or waste collection truck-trips could be deployed to deliver waste collected to the proposed MERF after it commences operation. Potentially adding pressure to the access roads and intersections during the operation stage.
A new road development could also potentially impact the traffic conditions of the access roads to the proposed MERF. For instance, there is a plan to construct a road to connect Mining Road and Manila North Road (MacArthur Highway). Should that plan goes through after the MERF construction and/or operation commences, the future traffic impact study should also take the road development into considerations.
6.9. Recommendations
6.9.1. Traffic Management
There are various reasons for the decrease of LOS Standards along the access roads and intersections. Notable among them is the proliferation of tricycles and motorcycles as the most common mode of transportation19. Other potential reasons could be attributed to the location of tricycle waiting areas (along the road of Mining right at the corner of Pandan-Mining intersection), parking of vehicles at the corner of Pandan and Mining to buy food or other goods, the relative lack of discipline among some drivers as observed, and the relatively narrow roads and intersections.
Below are several measures that SURE Global could discuss with Angeles City Government to potentially ease the traffic congestion issue in the MERF access roads and intersections nearby:
Road widening: It was observed during the traffic count survey that some of the access roads (e.g. Pandan-Tabun Road) could be widened to accommodate larger heavy-duty vehicles and/or more traffic flow. Harden road pavement: If found necessary, road pavements should be hardened to minimize the need of road maintenance during the construction and operation of MERF. This could possibly reduce the amount of road works that could block the traffic.
18 Fiesta Communities beside the proposed development has an estimated 1,135 houses, Metrogate along the Mining Road has over 1,000 houses and Fiesta Communities at the corner has over 1,500 houses. 19 These modes of transportation, which are smaller compared to other vehicles, and could seat only a few passengers could easily clog the roads when they come in numbers all at the same time. In the standards set by DPWH regarding its passenger car equivalent, it was given a value of 2.5 similar to those of trucks, “because this slow-moving vehicle (25-30 km/hour as normal maximum speed) causes considerable queuing on roads particularly along areas with heavy roadside friction where stopping to load/unload passengers is frequent” (DPWH).
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Traffic enforcement: Traffic enforcers on duty should not allow vehicles parking on the side of the roads, especially during peak hours, to avoid blocking the traffic. In any case, it is recommended that during the detailed design of the MERF, a more thorough Traffic Impact Assessment should be conducted to include the traffic impact that will be caused by the adjacent subdivisions.
6.9.2. Timing of Collection and Delivery
As have been seen from the traffic count survey, the intersections studied were congested during the peak periods. A summary of the traffic count is shown in Annex E. Angeles City’s major thoroughfares have become generally congested during daytime. In order to help ease the traffic congestion currently being experienced in Angeles City, the City Administration decided to change the schedule of the city collection trucks from its usual daytime route to night time route. As a result, the City’s collection trucks are now collecting at night from 5:00 PM – 5:00 AM.
Based on the result of the study conducted, it is suggested that one way to ease the congestion issue is to re-schedule the timing of collection and disposal to avoid the peak hours. The schedule should be designed in a way that the time of disposal by trucks after collection will not coincide with the peak hours as far as possible, and hence, will not pass through the intersections during the peak hour periods. It was observed during this study that there were some garbage collection trucks passing through the intersection during the peak hours. The timing and schedule of waste collection that avoid the peak-hour periods will help to reduce the traffic impacts of the garbage collection/disposal trucks that will be going to and from the MERF.
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7 Optimization of Waste Collection and Transportation within the Service Area (TASK 5)
7.1. Introduction
In order to come up with a model for optimization of waste collection and transportation within the service area, it is necessary to conduct a Time and Motion Study, observing all types of collection methods (i.e. a barangay collection truck, a city collection truck, and a private collection truck). The main objectives of optimization of waste collection and transport are:
1) To improve the quality of waste collection service in the city; and 2) To reduce collection and transport cost once the proposed MERF is established and operationalized.
It has been mentioned in published literature that collection and disposal of solid waste take up a huge portion of the MSW management budget (Sakurai, 1990, UN Habitat 2010). Often, collection and disposal take up approximately 10-50% of the municipal operational budget and typically 10-20% in large cities (WB, 2000). Effective MSW management not only requires political will, but it also requires an efficient collection and appropriate equipment in order to achieve the purpose of managing solid waste at lower cost.
The objective of conducting the Time and Motion Study is to determine the efficiency and the effectiveness of current solid waste collection practices. The study will also assess the routing, method of collection and the time requirement for collection, to develop the recommendations to adjust policy to improve waste collection system, and ultimately to optimize SWM collection in the future.
7.2. Methodology
For the purpose of conducting the Time and Motion Study, the Consultant has observed one shift of barangay collection vehicle, one shift of city collection truck and one shift of private collection truck to determine the approximate level of efficiency of service of garbage collection. The routes analyzed are micro-routes20 for one single shift as sample for each type of collection (barangay, city and private collection).
Aside from the data collected (refer to Section 7.2.1), the following were also ascertained:
1) Maximum use of legal working hours; and 2) Maximum use of vehicle capacity.
To determine the efficiency of collection and make appropriate recommendations for improvement, it is important to assess the baseline and observe the current situation of service level of the garbage collection truck. The study will determine their collection route, collection day/time, number of “paleros” or collection crew per shift. The observation will be done for one shift of currently employed collection methods. A single shift is just a sampling of the service collection of the garbage collectors.
7.2.1. Information and Data Collected
With the use of the Time and Motion Study Data Collection Sheet shown in Table 7.1, the following information was collected during the observation:
1) Map of the barangay (via Google Map); 2) Day and time of collection; 3) Crew Composition (No. of paleros); 4) Characteristics of collection vehicle; and 5) Others (type of road, collection practice, etc.).
20 The path of the daily collection service area that the collection vehicle follows as it collects from each service on its route.
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Table 7.1 Time and Motion Study Data Collection Sheet
COLLECTION ROUTE INFORMATION Barangay: ______Date: ______Day of study: ______Crew Size: ______No. of Households Served Time Distance (km) Volume (cu Discharge ______m) Point (km) Leave Motorpool Start Collection Leave Route Go to discharge point (MERF) to simulate Finish
7.2.2. Equipment and Tools
To collect required data, the following equipment and tools were used:
1) Car (for conducting the survey and monitor the waste collection truck); 2) Mobile phone with apps, WAZE and MY Workout, to determine exact speed, time, mileage and exact route to be mapped out on Google Map; and 3) Camera with video.
7.2.3. Coordination Support
In preparation of the survey, the Consultant contacted Mr. Kiko Pangilinan, Environmental Officer of CENRO, for coordination support during survey implementation. Mr. Pangilinan provided coordination support with the barangay and private collection trucks, while the City Engineer, Engineer Dizon, provided coordination support with the city collection truck operators.
A letter to the Barangay Chairman of Barangay Balibago was sent by Angeles CENRO to inform him of the Time and Motion study. Barangay Balibago was chosen as the sample study for the barangays as it is the biggest barangay with the biggest collection coverage. It is also one of the barangays that are located farther away from the proposed MERF site. In addition, this barangay has two big collection trucks (a compactor truck and a big dump truck with hydraulic fittings). The one that was observed under this study was the big dump truck (10 m3) as it collects directly from door to door, within a swathe of collection area that is a mixed-use development (residential, commercial and institutional). Meanwhile, the other collection truck engages primary collectors (the informal waste sector) and waits at a certain point for the primary collectors to load their collection, hence not advisable for a time and motion study.
7.2.4. Safety
For safety and avoidance of traffic accidents, it was necessary to pay attention to the movement of the collection vehicles and to have proper coordination with the driver of the collection truck.
7.2.5. Mapping
The mobile app, My Workout, was used in this Study. The mobile app can record the collection route in real time and map out the collection route on Google Map. The mobile app can also provide data on time spent at each location as well as the average speed.
The following information was collected during the study survey to assess the efficiency of collection:
1) Record of any unnecessary duplication of trips; 2) Record of whether route is smooth or fragmented; 3) Record of traffic regulations along the route; 4) Record on the number of turns (left, right and U-turns); 5) Record on whether the first and last collection points were on the way to the disposal site;
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6) Record of the road condition; 7) Record of the crew behavior (i.e. cooperativeness, material recovery effort, etc.); and 8) Take note of areas that are difficult to access.
In order to determine the time it required for the trucks to travel to the proposed MERF site, simulation of trucks travelling from end of collection to the proposed site was conducted for each truck.
The findings from the above study were analyzed for improvement of collection system and to create and optimized model of collection system.
7.3. Observations
7.3.1. Barangay Balibago Collection Truck
Collection Route and Time
The barangay collection truck that was followed for this study was a dump truck with a capacity of 15 cu.m with plate number of AAV6025. The truck was painted white with the motto and logo of the barangay as well as the name of the chairman, Hon. Tony Mamac Sr. (see Figure 7.1). The height of the truck is about 2 meters from the rim of the truck to the ground.
Figure 7.1 Barangay Balibago Garbage Collection Truck
This particular shift has a crew of 5 paleros including the driver, which acts as the foreman. During the shift, it was observed that approximately 2-3 paleros are on board while the other paleros are picking up garbage on the curbside. When there is a large quantity of waste to collect, 3 paleros would carry out the curbside pick-up, while 2 of them remained on board, sorting and arranging the sacks of waste properly on the dump truck.
The barangay collection truck started operation at 6:00 AM at T. Aguas Street, beside the barangay hall. Collection started along Dona Rosario St, perpendicular to T. Aguas, moving in the southward direction. The collection area has a mix of residential, commercial and institutional use. As it turns right to MacArthur Highway, it collects mostly from a commercial area, though there are some residential areas along this highway. Figure 7.2 below shows the route for this shift, which is the first shift of the day for this collection crew, while Figure 7.3 shows the route that the truck took to go to Capaya Cluster MRF where the collected waste
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was disposed. It was also noted that the route went passed the proposed site for the MERF. Table 7.2 below presents the data collected for observed Barangay truck.
Figure 7.2 Barangay Balibago Collection Truck Shift 1 route from start to end of shift (orange arrows)
Source: Google Maps, 2016
Table 7.2 Data Collected for Observed Barangay Truck
COLLECTION ROUTE INFORMATION Barangay: Balibago Date: 1/7/2016 Day of study: Thursday Crew Size: 5 paleros + Driver No. of Households Time Distance Volume (cu m) Discharge Served NA (km) 15 Point (km) Leave Motorpool 6:30 AM21 N/A Start Collection 6:48 AM 0 Leave Route 8:50 AM 3 Go to discharge point 9:00 AM 5.5 (MERF) to simulate Finish 9:15 AM 8.5 15 8.5
Figure 7.3 From Balibago to disposal site at Capaya MRF (red arrows)
21 The collection usually starts at 6:00 AM. However, the truck started at 6:30AM for the observed collection to go over the study with the Consultant before the shift starts.
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Source: Google Maps, 2016
Results showed that during collection time, the average speed of the dump truck is 1.5 km/hr, while on the way to the disposal site after collection, the dump truck ran at an average speed of 23.73 km/hr. Table 7.3 shows the speed of the truck for every kilometer traveled.
Table 7.3 Speed of the dump truck per kilometer travelled (Barangay Balibago)
Distance Travelled (km) Average Speed (km/hr) Leave motorpool and start collection 1st 1.696 2nd 1.456 3rd 1.358 Leave route and go to discharge point 4th 14.67 5th 27.15 6th 18.87 7th 19.29 8th 39.22 8.5th 23.17 Finish
Note that the collection area covers a total distance of 3 kilometers from the starting point and ran a total distance of 5½ kilometers from its last collection point to the disposal site at Barangay Capaya cluster MRF for further treatment. The entire duration from collection to disposal was a total of 2 hours 16 mins and 57 secs. From collection to the proposed MERF, the duration was approximately 2 hours, which was similar to the estimate of the driver of the collection vehicle had suggested prior to the survey.
Average turn time was 30-40 secs, since there was less traffic during the time of survey. Average staying at discharge point was 30 mins since at this point they still had to eat breakfast and take some rest. The truck is so full by the time it reaches the end of its collection route, at which time they stop collecting garbage.
Collection Crew
The collection crew was observed to be adept at waste collection. They would go along the street, picking up garbage disposed of at the curbside, ahead of the truck. Average pick-up time
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was recorded at 2 mins per pick-up. The process was: i) move along ahead of the truck while the truck slows down but not to a complete stop, and ii) pick-up garbage on curbside and go back to haul the garbage into the truck, and repeat the same procedures over again.
In areas where there are alleys, the collection crew would go into the alleys and collect the garbage. This type of collection delays the collection time by a few minutes. Oftentimes, the garbage that was dumped are scattered and not in any containment such that the crew have to use a sack or wide container to collect the garbage so they could haul it up into the trucks, many of the times using their bare hands or some other material they found in the garbage, like a piece of cardboard.
It was also observed that the collection crew did not use any protective gear, picking up the garbage with their bare hands, a practice that could take toll on their health. In addition, they appear to have no protection from weather – from the sun or rain. Moreover, during collection, the crew continuously picked up waste, without much rest. They rested only when they reached the MRF.
At the end of the collection in this shift, the truck stopped at the roadside where the other collection trucks of Barangay Balibago also parked. The crew of both trucks exchanged greetings while they started to cover the dump truck with a blue canvas sheet to keep the lighter solid waste materials from being blown by the wind once the truck picks up speed to go to the MRF (see Figure 7.4 below).
Figure 7.4 Dump truck (white) is covered to keep lighter solid waste from being blown away by wind as the truck picks up speed towards the MRF
As the truck proceeds to Capaya MRF, the crew settled down for the ride, 2 crew members with the driver, while 3 crew members stayed at the back of the truck. Figure 7.5 shows the truck as it reached the MRF.
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Figure 7.5 Dump truck at the Capaya MRF with the crew preparing the truck to unload waste collected
7.3.2. City Collection Truck
Collection Route and Time
The city collection truck that we followed in this study has a capacity of 10 m3. The city collection truck collects from major thoroughfares of Angeles City, which usually have heavy traffic during the day. Considering that, a new ordinance was enacted, requiring city collection trucks to collect from 5:00 PM to 5:00 AM only (night time collection).
The major thoroughfares are roads that are mostly surrounded by commercial and institutional infrastructures. There are also some surrounding areas being used for residential use.
The route of the observed city collection truck was recorded as follows: The truck leaves the motorpool at the former Pampang Tansfer Station, running at an average speed of about 12- 15 km/hr. It goes out into Richthofen Street, turns left at Henson Street, crosses Graciano Valdez Street and straight into Jake Gonzalez Blvd, crosses Pag-asa Street and makes a U- turn at approximately 200 m before it reaches the intersection of Manila North Road. From this point, it starts collecting garbage deposited along the road, mostly below lamp posts. This route of collection goes straight towards Henson Street. Details can be found in Table 7.4.
In Figure 7.6 below, the observed collection route is shown as green arrows. The route of the city collection truck goes along a straight path, along Jake Gonzalez Blvd, where it crosses Pag-asa Street, and again crossing Carlota de Leon Street, towards Henson Street, then crossing Richthofen Street, then crossing Pampang Road, and then crossing Jesus Street, and goes towards a busy commercial district, which they call Divisoria. From there, it crosses Miranda Extension and turn right to Rizal Street, where collection continues, and crosses five (intersections). It turns slightly right to Angeles-Porac_Floridabalnca-Dinalupihan Road, passes by a cemetery, crosses Sampaguita Street, and as it proceeds, crosses Camia Street, and passes by a mall and a middle-class housing subdivision in this part. This portion of collection route is a mix of residential, commercial and institutional establishments. At approximately 80- 100 m from Fil-Am Friendship Highway, the truck makes a U-turn and starts collecting at the opposite side, following the same route. Along this route, it was noticeable that where the paleros have already collected, a new set of garbage has been deposited such that the paleros have to repeat the process, where it was supposed to have been finished, crossing the opposite side of the road, delaying the collection process. This process continues until they reach Sto.
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Rosario Street, where they have to turn right because of the one-way policy on this part of Rizal Street. This is the end of the collection route for this shift but somehow the paleros still collected garbage. The tucks turn left at the corner of Plaridel Street, moves along Plaridel Street, where it stops collection and then turns left to Miranda Street.
The disposal site for city collection trucks is at the cluster MRF of Barangay Anunas, where it should proceed after Miranda Street, which becomes Miranda Extension.
For simulation purposes, the truck turns right and proceeds towards Manila North Road and then turns right and run along Manila North Road until it reaches the intersection of Entiero Street and Pandan Road. It goes around the roundabout and turn right to Pandan Road to proceed to Mining Road and then end at the proposed MERF. The whole process was observed to have lasted for about 2 hours, 31 mins and 13 secs and a total of 12.5 km-distance from the motor pool to the proposed MERF.
Table 7.4 Data Collected for Observed City Collection Truck
COLLECTION ROUTE INFORMATION Type: City Collection Truck Date: 1/7/2016 Day of study: Thursday Crew Size: 5 paleros + Driver No. of Households Served Time Distance Volume (cu m) Discharge NA (km) 10 Point (km) Leave Motorpool 6:08 PM 0 0 Start Collection 6:16 PM 1.62 0 Leave Route 8:16 PM 6.22 10 4.57 Go to Discharge point 8:16 PM 6.39 10 (MERF) to simulate Finish 8:36 PM 12.61 10 10.79
Figure 7.6 Route of the City Collection Trucks
Source: Google Maps, 2016 Note: Green Arrows = Actual Route; Orange Arrows = Simulation to the Proposed MERF; Blue Arrows = To Current Disposal at Barangay Anunas Cluster MRF
This particular shift has a crew of 4, including the driver. 2 paleros are on board sorting and arranging the sacks of waste properly on the dump truck, while the other 2 paleros were on foot running and collecting the garbage.
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For this particular study, the city engineer participated, to assist us and explain the route. The truck was relatively worn out. It is old and rusty, with plate number that can hardly be read. The truck is shown in Figure 7.7 below.
Figure 7.7 Paleros for city collection truck without personal protective gear
The average collection time was about 2 minutes per stop. The stop is typically at every lamp post where the people deposit their garbage. The crew also have to exert more effort in putting the garbage into the truck since the height of the truck is about 2 m. Although unlike the barangay collection truck, this truck has no back door so the truck is open at the back hence no impediments in putting the collected garbage.
Results shown in Table 7.5 reveal that the distance travelled during collection was about 4.76 km, distance of simulation from end of shift to proposed MERF was 6.12 km, while distance from motorpool to start of collection was approximately 1.62 km. The entire duration from leaving the motorpool up to proposed MERF was 2 hours 31 minutes and 13 seconds. Collection speed during collection was 0-5 km/hr with an average speed of 3.8 km/hr.
Table 7.5 Speed of the dump truck per kilometer travelled (City Collection Truck)
Distance Travelled (km) Average Speed (km/hr) Leave motorpool and start collection 1st 13 2nd 4.5 3rd 2.34 4th 4.48 End of shift to proposed MERF 5th 5.0 6th 4.0 7th 3.0 8th 3.29 9th 3.86 Leave route and go to discharge point 10th 17.19 11th 19.42 12th 24.69 Finish
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Collection Crew
Similar to the barangay collection truck, the city collection truck crew were actively collecting garbage all throughout the process. They use no protective gears but instead only use their bare hands to collect garbage, which are sometimes loose. 22 The crew collect the loose garbage with their hands with the use of a cardboard of or flat wooden board and a plastic containment like a big basin. The crew on board then sort out the recyclables from the residual waste. It was observed they can sort the recyclables from the residual waste really quickly as they receive the garbage.
The paleros or collection crew go ahead of the truck while the truck is slowly moving forward, to pick up the trash. The paleros then come back with their haul of waste. The practice allows speedier collection of solid waste.
7.3.3. Private Hauler
Collection Route and Time
The private hauler was only available on Friday, which appears to be the only collection day of this private contractor for Villa Angela Subdivision. It appears that the collection was done only once a week. The time and motion study was conducted at the Villa Angela Subdivision, an upper middle-class housing subdivision located in Barangay Sto. Domingo, located at approximately 2 km south of Mining. The subdivision’s entrance is along Sto. Rosario Street.
The time and motion study for this hauler was conducted on 15 January 2016 at about 2:00 PM. The collection vehicle was an unmarked truck (shown in Figure 7.8 below) with license plate number of RCO 407. The hauling vehicle is a FUSO 2-axle cargo truck open-topped and about 2 meters in height from the ground to loading platform. It has a crew of 4 paleros including the driver, who acts as the foreman.
Figure 7.8 Truck of private solid waste collector
22 Garbage that are not in any form of containment.
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Villa Angela Subdivision consists of about 400 households. The monthly garbage fee is PhP150.00. Yet, not all households pay this monthly fee, according to a crew member.
Since Villa Angela is strict gated residential subdivision, the route is simply within the subdivision (shown in Figure 7.9). However, this trip is slightly different because it collects from door to door and therefore requires to make 2 trips down a street (i.e. it goes into a street up to the end and then goes back again).
Figure 7.9 Route of Private Hauler at Villa Angela Subdivision
Source: Google Maps, 2016
Collection started as the truck entered the subdivision on Maria Teresa Street. The truck continued to go around the Trinity Square, to collect from the houses around it. Then it went back into Maria Teresa Street, turning right into the Avenue of Americas, which is a dead end, then it went back out and turning right into Maria Teresa Street, turned right into Trinity Triangle, then turned left to Don Pablo, up to the end which is the gate of the subdivision on this side. It then backed up and turned left to Embassy Road, then left to Bayanihan, then left to Calle Pilipina, left to Trinity Triangle, then left again to Don Pablo. It turned left again to return to Embassy Road, collecting on the opposite side of the road that were not previously collected. It turned left to another Bayanihan Road, then went back again to Embassy Road, and later turned left to the next street, parallel to Bayanihan, and goes back out into Calle Pilipina, collecting along this road on the right side. The truck then turned right to Maria Teresa Street again, and then right to Avenue of Americas all the way to Stephen Strassen Street, turned right at this street and then made a U-turn to go back and collected along the whole stretch of Stephen Strassen. Later, it turned left to Rue de Paree, then left to Henry Street, collecting along this street. The crew then stopped at the corner of Henry Street and Via Roma to have a little rest and some refreshments. From here, it went out and turned left to Paseo de Espana collecting along this route all the way to Via Arturo where it again turned left, and made a U- turn to go back and collect along the street and then turned right to rue de Paree then right again to Paseo de Eduardo. The route continued on Rue de Paree and right to Alley Road, going back out and turning right to Rue de Paree where it later made a U-turn at Stephen Strassen Street to go back the full length of Rue de Paree and then left Villa Angela to go to the disposal site.
Simulation going to the proposed MERF, which is about 4 ½ km from Villa Angela. To go to the proposed MERF, the truck took the Pandan Road to Mining Road route, which would take less
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than 15 minutes on regular traffic but at the same time, if there is heavy traffic, it could be longer. Considering that the collection was done at approximately 6:00 PM (i.e. during the rush hour), it is anticipated that the truck will take longer than 15 minutes to reach the porposed MERF.
For the private collection truck, the entire duration of the collection process took more than 3 hours to complete. The long shift and the heat tired the crew out such that they had to stop to catch their breath and had some drink. The truck was observed to be filled to its carrying capacity by the end of the collection shift.
Collection crew
Similar to the barangay collection truck and the city collection crew, the private hauler’s crew were actively collecting garbage all throughout the process. They did not use personal protective gears and only use their bare hands to collect garbage, from house to house, sometimes going inside the gate to take the trash at the house in which the homeowner is not around. Figure 7.10 and
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Figure 7.11 demonstrates the collection process of the observed private hauler.
Figure 7.10 Collection crew passing empty trash bin to the user
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Figure 7.11 Collection truck filled to capacity after collecting over half of the subdivision, but appears to be low density due to collection of foliage
Similar to the collection practice of other trucks observed under this study, the crew on board sort out the recyclables from the residual waste in an efficient manner. The paleros or collection crew of the private hauler also go ahead of the truck while the truck is slowly moving forward, to pick up the trash, then come back with their haul of waste, for speedier collection of solid waste. In some cases, it was observed that the crew sometimes hurl the trash bin after it is emptied to the other paleros or to the homeowner’s residence.
Table 7.6 Data Collected for Observed Private Collection Truck
COLLECTION ROUTE INFORMATION Subdivision: Villa Angela Date: 1/15/2016 Day of study: Friday Crew Size: 5 No. of Households Served: Time Distance Volume (cu Discharge Point 400 1:30-6:00 PM (km) m) Kalangitan 18 (Metro Clark ESLF) Leave Motorpool N/A N/A Start Collection 1:30 PM N/A Leave Route 6:00 PM 6.73 Go to Discharge point 6:00 PM 2.81 (MERF) to simulate Finish 6:24 PM 9.54 N/A
7.4. Analysis of the Field Survey Results
7.4.1. Working Hours Utilization
Barangay Balibago Trucks
The barangay truck typically starts the shift on time at 6:00 AM, where it leaves the barangay hall onto the street where the crew starts collecting at once. As observed, since there were no
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collection bins, all garbage was dumped at a certain point on the street or in front of houses and establishments / institutions. The crew then picked those waste up at those spots.
It was observed that loading consumes some time because they oftentimes go for door-to-door collection and whenever some garbage is dumped in a corner, the crew takes time collecting them as some of these are loose garbage. Such practice decreases the efficiency of the collection vehicle. It was also noted, that for every garbage dumping point, the crew takes a minimum of 2 minutes to complete loading the garbage and a maximum of 5 minutes if there is a lot of garbage.
City Collection Trucks
City collection trucks schedule is now changed to night time collection (5:00 PM – 5:00 AM daily) to avoid the daytime traffic and to help ease the traffic congestion during the day. This is noted as a good practice for collection of solid waste.
As previously discussed, these city collection trucks collect garbage in the major highways of the city, which are mostly in commercial and institutional district mixed with some residential areas. The situation is similar to the barangay collection such that there are no standard collection bins around the city. Instead the people (waste generator) dump garbage at the base of every street lamp post, and that was where the crew collect the waste. These wastes were oftentimes contained in plastic bags but were sometimes loose. That is probably because some informal waste pickers have already sorted through them and left the trash lying around. This, in turn, takes more time for the crew to collect, decreasing the efficiency on waste collection.
Similar to the Barangay Balibago collection truck, the average collection time was 2 minutes. Sometimes the truck would come to a complete stop but sometimes would run at a speed of approximately 2 to 5 km/hr, with an average speed of 3.8 km/hr., waiting for the crew who were going around and ahead of the truck to collect waste.
The truck appears reasonably maintained in terms of its functionality (e.g. car engine), but the truck frame itself is old and looks dilapidated and rickety.
Private Haulers
Collection for the observed private collection truck is door-to-door as there are no standard collection bins in the subdivision. Waste collected are mostly garden waste and kitchen waste. The residents oftentimes throw out mixed waste, which were then sorted out on the collection truck by the crew.
Similar to the barangay and city collection truck, the crew of this truck also works non-stop, collecting from every household. As observed, they appear to be trusted by the residents as they can go through the gate to take the garbage bin even when the house owners were not around. Since the truck is also high, the crew would, oftentimes, after emptying the trash bin, just throw it down to the waiting crew on the ground or to the person who handed in the trash bin. This practice is not observed in other areas. However, this method of collecting is not very efficient and therefore lowers the productivity of the collection vehicle because it is more time- consuming compared to the system that have a centralized waste bins for the community.
Furthermore, because of the hot temperature during daytime collection, could deplete crew members’ energy, resulting in more rests in the middle of the collection shift.
In respect to the condition of the truck, the private hauler’s truck is old but appears to be functional and not rickety.
7.4.2. Loading Capacity
Barangay Balibago Trucks
For this particular collection shift, it was observed that the truck is loaded to its full capacity at the end of the collection route. Once full, it was then covered to signal the end of collection round and starts moving to the disposal facility.
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There were no breakdowns observed and the driver was reasonably trained and careful in driving. He also acts as the foreman of the crew and knows exactly where to stop for the crew to conveniently pick up the waste. The collection route is reasonably paved, although the way to disposal site (i.e. MRF) after it crosses NLEX is not paved. Overall, the truck appears reasonably maintained.
City Collection Trucks
Similar to the barangay collection truck, the city collection truck has also reached its full capacity by the time it finished the end of its shift. The truck was also covered after it has reached its capacity before heading to its disposal site. In the case of the observed city collection truck, the disposal site was cluster MRF of Barangay Anunas.
Private Haulers
Similarly, the truck of the private hauler is filled to its maximum capacity (approximately 18 m 3 according to the proprietor) by the end of its collection shift. Unlike the other trucks, the private hauler disposes the collected waste at the Kalangitan ESLF (Metro Clark ESLF) in Capas, Tarlac, which is located in the neighboring province.
7.4.3. Waste Bin Study
There are no standardized waste bins observed along all the routes of all the collection trucks studied. The waste was either in plastic bags or sacks or dumped on the curbside, below the lamp posts or taken from the residents or establishments in plastic trash bags or sacks.
From the residents in the subdivision, solid waste is contained in their own respective trash bins, which were either made of polyvinyl chloride (PVC) or in reused cardboard boxes, since there were no standardized solid waste bins within the subdivision.
7.4.4. Route study
Barangay Balibago Truck
For this particular shift of Barangay Balibago collection truck, it was observed that the truck made 4 left turns (from T. Aguas to Dona Rosario, then make a left from 1st St. at the opposite end of Astro Parkway to cross towards Manuel Roxas and then left to Manuel Roxas Street and left to Mitchell Avenue from Teodoro Street) and 5 right turns (first in an alley that connects Dona Rosario Street to MacArthur Highway, then to MacArthur Highway, then to 1st Street after collecting around the Shell gasoline Station at the corner of 1st Street and MacArthur Highway, the right to Teodoro Street from Manuel Roxas Street, then finally exiting to MacArthur Highway to go to disposal site), and 1 U-turn along MacArthur Highway, about 100 meters from 1st Street. The truck was observed to be following traffic regulations at all time. As the crew is picking up the waste from the curbside, the vehicle was observed to run slowly and sometimes halt to a complete stop when the crew goes inside alleys to pick up garbage.
This particular route is not fragmented; it is continuous and smooth and runs toward the route to the disposal site.
City Collection Truck
The city collection truck shift was observed to have travelled an approximate distance of one and a half kilometer from the location where the collection shift starts. Since it was already sunset, traffic appeared to have eased a bit and the traffic was relatively faster.
Although this route is not fragmented, it was observed to be collecting waste along a stretch that runs through a road that changes names as it crosses intersections. The truck collects the garbage on the right side of the road up to the end of the stretch. It then made one U-turn to go back and pick up waste on the opposite site of the road until the end of its route at Rosario Street. Overall, the route appears to be continuous and not fragmented. After the shift, it then proceeds to the disposal site (Barangay Anunas MRF cluster for city collection trucks).
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The absence of collection bins makes the collection time consuming as the crew have to pick up sometimes loose waste deposited at the base of lamp posts. The crew takes time gathering the waste to a container so that it can be hauled up the truck. The availability of standardized bins would make the collection faster and easier for the crew and would not tire them needlessly. Also, the crew did not have to go running about trying to find waste at the curbside with the presence of standardized bins as they would already just pick up the bins and haul them up the truck.
Private Hauler
The private haulers route is a simple collection within the subdivision. However, since they do a door-to-door collection, they have to go into every street and alley to pick up the waste and would go back and forth on the same street just to go around, which makes the route seemingly tiring, going around and around and back on every street just to get to the next street. Similar to other collection trucks, presence of standardized bins located along major streets would make it easier and faster for the collection crew to carry out their job.
7.4.5. Road condition
For the Barangay Balibago collection truck, the urban traffic on this shift, which is early, from 6 AM to 9 AM did not coincide with heavy traffic and the collector was continuously picking up waste. There were no road barriers encountered either. However, during disposal transportation, there were some traffic causing the trucks to slow down on Pandan Road going to Mining Road (it was stopped at intersection for 30 seconds to turn right to Mining Road). Along this route, the road was mostly paved. However, the road to MRF after crossing the NLEX becomes a dusty farm to market road at Suclaban in Barangay Capaya. The road was smooth even though it is an unpaved road.
The city collection truck shift was continuous as it collects waste at night time. Without heavy traffic, the collection process was continuous. The road traversed by this shift was also paved.
In addition, the Private hauler’s shift did not coincide with much traffic in the city and the road was fully paved in the subdivision until the proposed MERF.
7.4.6. Crew Behavior
As observed, the crew during the shift studied were all working properly. They picked up waste disposed of almost non-stop. It also appears the crew already has an agreement on where to go to collect waste.
The crew helped each other when there is a large volume of waste to be collected and quickly do the work. They appear to be friendly with the residents and other users. They recover recyclable materials by themselves as the users throw mixed waste or sometimes give the recyclables to the crew for free. Further, it is not known whether they are given tips by the residents. The crew would not disclose how much they get either, though they estimate roughly that within a day’s work, sometimes they would get PhP 2,600.00 worth of recyclables. The money from the sales are equally divided among themselves. This provides incentives for more proper segregation, because they can earn additional income with the sales of recyclables.
The crew did not wear protective gear and collected the garbage with their bare hands. Some crew members scoop up loose waste with their bare hands or with the aid of some cardboard found in the trash. This is an unhygienic way of collecting garbage and poses risk to the crew members. Garbage collectors must wear protective clothing as prescribed in RA 9003 to protect themselves from injuries during waste collection using bare hands.
7.4.7. User Cooperation
The users in this route are residents and sometimes business owners along the commercial portion and their employees. The residents/users were aware of the collection time and know where to dump the garbage despite not having a designated waste bins. Along the commercial district, it is normally curbside collection along the commercial area. Meanwhile for the
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residential areas, door-to-door collection is employed. The crew would sometimes go into an alley or houses that are farther from the street to get the garbage. The users would sometimes hand over their waste to the crew.
While the user appears to be cooperating properly with the waste collection crew, door-to-door collection is relatively more time consuming as shown by the collection in the subdivision. Putting up standardized waste bins in a gated subdivision such as Villa Angela will save time and improve the productivity of the collection truck.
7.4.8. Areas of Difficult Access
As previously mentioned, the waste generated in areas difficult to access (such as alleyways or those farther from the streets) are collected by the crew. They will go into the alleys to collect the garbage and bring back to the truck parked on the street as there were no primary collections23 being done for this route (see Figure 7.12).
For the Barangay Balibago route, there were only 2 areas that were “difficult” to access by the truck, but the crew can easily access the compounds for collection. All were located near the streets and there were no hilly portions.
Figure 7.12 Primary Collection Vehicle
23 Primary collection is done using hand carts, push carts or a small three-wheeled vehicle to collect from narrow alleyways and from households in a dense neighborhood. This is usually done with the help of the informal waste sector.
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7.5. Optimization of Collection and Transport in Angeles City (Application of the Study Findings)
7.5.1. Current Collection System
The current system of solid waste collection in Angeles City is more or less similar to other LGUs in the country, such that the collection system uses different method of collection rather than a centralized method. For instance, Barangay Pulung Bulu uses multi-cab (i.e. a small truck) as well as a vehicle called “colong-colong” (see Figure 7.13) for solid waste collection. These are small waste collection vehicles which are proven to be inefficient at collection due to their small size. Thus, rather than collecting majority of the waste in a few shifts, it may require many shifts in order to collect all the waste in the coverage area. Meanwhile, Barangay Balibago, a more progressive barangay where many commercial establishments are located, has a compactor truck with primary collection and a hydraulic (10 m3) truck. Other barangays have small collection trucks (about 4-6 m3) or three-wheeled vehicles for solid waste collection.
Figure 7.13 Colong-colong used in some of the Barangays for Waste Collection
7.5.2. How to Optimize Collection
As observed during previous visits as well as during the time and motion study, the current method of waste collection (refer to Section 7.5.1) adopted by the three types of garbage collectors (i.e. barangay collection truck, city collection truck and private hauler) do not appear to be compatible with the proposed MERF, particularly with the consideration of the form of transportation being used to collect and transport waste (colong-colong shown in Figure 7.13 for example).
Considering the potential incompatibility, the entire collection system of Angeles City shall be modified to fit into the kind of disposal facility being proposed in view of the current collection system, wherein, different barangays employ different methods of collection, most of which are inefficient and time consuming.
To optimize the collection and transportation of solid waste collection system, the following steps have to be carried out:
1) Develop a waste collection strategy in order to reduce loading time and the time of filling the truck by increasing the number of containers in collection areas, which are much cheaper than trucks. Bigger and standardized containers can be introduced, especially in strategic places like markets or shopping centers.
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2) Introduce automated trucks that have loading and compacting systems with larger capacity as many as possible.
3) Reorganize routes and timetable in order to avoid the peak traffic hours. For example, collection in the city center at night, and collection in the suburbs during the day.
4) Reduction of the distance travelled by the trucks by optimizing collection routes in order to have all trucks full at or near 100 percent at the end of the route and to reduce time and travel distance. In order to do this, there is a need to limit waste collection in main streets by reducing the number of collection points, avoiding a full door-to-door collection system and defining a maximum distance for the citizen to reach the bins – for example 100 or 200 meters.
5) Optimize the time used for each truck trips by:
a) Organizing regular inspection and maintenance of the trucks and of the bins in order to reduce the frequency and the duration of breakdowns.
b) Operating in two or three shifts per day – or six or seven days per week, if possible.
c) Collecting outside the city centers and transporting outside of the peak hours.
d) Improving the management of the service by defining a new rule system such as defining tasks of all the stakeholders and especially the collection team.
e) Organizing a good supervision of the service, night and day, with an adequate reporting of older data and using this data to improve the service.
f) Organizing a training of the staff: the drivers, the workers and the supervisors.
g) Organizing a communication campaign in order to inform the population about the new service, about the timetable of the service, the new rules, the tasks of the citizen, the tariffs / fees (if tariffs / fees will be collected), etc.
7.5.3. Optimization of Collection and Transport for Angeles City
In the case of Angeles City, the following are the recommendations for optimized collection and transport to the proposed MERF:
1) System of Collection – the current system, which is door-to-door collection, can be revised by providing containers along designated collection points in order to reduce collection time. This kind of system requires strong political will and massive information, education and communication (IEC) campaigns. 2) Type of Truck – The type of truck is a consideration to improve the collection system of Angeles City. Collection trucks should be compatible with the proposed MERF. For example, a colong-colong may not be compatible with the tipping area of the facility. As such, trucks such as hook lifts or other type of dump trucks fitted with hydraulics for easy tipping are the most suitable ones. Shown in
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3) Figure 7.14 below are examples of trucks suitable for WTE facilities. Such type of trucks are used for easy tipping of waste.
A locally made truck is recommended here and if possible, tailored to the needs of the city, with spare parts that are locally and easily accessible. If possible, a type of truck with loading pushcarts used for primary collection, that can be mechanically clipped on to the truck is highly recommended. Dual collection trucks are also worth exploring as they can collect two types of material streams at the same time, which could recyclables and non-recyclables in this case.
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Figure 7.14 Examples of Modern Automated Trucks Suitable for WTE Facilities
1) Truck Route – the truck routes observed for the barangay and city collection trucks were reasonable. For the private hauler, since the truck collection route is only within the subdivision, collection is quite time-consuming as it goes around and around to collect waste from every household using the system of door-to-door collection. To improve and optimize the truck route of collection within a subdivision and to make truck route smooth, it is recommended that standardized waste bins be provided along major streets, within a maximum distance of about 100m to 200m from the houses to be able to collect within the subdivision effectively and efficiently in as little time as possible. The aim is to reduce collection points in order to cover a bigger area within a short period of collection.
To further analyze the routes of collection trucks for the whole city, it is recommended that a study of different collection trucks be conducted by the City itself, and their routes be analyzed to determine a better design on collection route.
2) Truck Workers and Collection Schedule – Personal protection gears, such as gloves, must be provided to and put on by truck workers to protect them from injuries. Street sweepers could also be assigned on these collection routes to assist during collection of loose garbage. An efficient collection schedule such that collection during rush hours is avoided is recommended for a more efficient collection. To optimize the truck collection time, regular truck inspection and maintenance is recommended to reduce frequency of break downs and avoid delays. Shifts can also be studied to cover a big swathe of collection area within a shorter time such as 2 to 3 shifts daily, seven days a week. A proper time schedule must be created to prevent queuing at the MERF. 3) Waste Collection (Collection Points, Bins, Collection Time) – Collection points must be assigned so that users will not dump garbage anywhere, everywhere and at any time of day. Standardized collection bins must be used along major thoroughfares for easy retrieval of garbage. For hard to reach areas, primary collectors must be engaged, such as informal waste sector, using carts to collect waste. Taking a model from Hani collection vehicles, these primary collection carts should be designed to be compatible to the collection truck. These carts can be hooked up to the truck during loading to mechanically tip them into the truck. The residents should also be disciplined to bring out their garbage at the proper time for the trucks to collect them. It would be a waste of time should the trucks have to come back to the routes they already traversed just to collect the garbage of the uncooperative residents. 4) Container Loading Time – Container loading time for each can be reduced to 1 minute, maximum of 2 minutes. As was observed, the minimum loading time was 2 minutes because the garbage is dumped on the curbside without any bin, such that the crew had to pick the garbage in the sack or trash bag one by one. Provision of waste bins would help to reduce loading time. 5) Waste Collection Tariff System – If the tariff system has not yet been employed, the City is recommended to conduct a study to assess and set up the appropriate tariff rate for collection
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and transport of waste. The tariff would help the city in the provision of budget to finance SWM services. 6) Policy Management – New policies in support of the MERF operations must be created for the City. In this regard, the city’s Solid Waste Management Plan is recommended to be updated, particularly to include a new SWM Office that would have sufficient authority and resources to supervise SWM services, regulation enforcement and implementation. At present, waste management services in the City is fragmented – there are various offices handling different aspects of SWM. Training of all SWM workers, supervisors and staff is important as well as communication to all stakeholders (via IEC campaigns). Whether collection and transport is privatized or handled by the government, all the recommendations in this section (if implemented) must be properly coordinated to carry out an optimized collection system. A new waste collection and transportation system should be developed to ensured improvement of efficiency and service to the community. It is recommended that the proposed collection system should be piloted first before complete implementation. Change is difficult for any system particularly when it requires sustainable funding and change in behavior. Nevertheless the change would optimize the SWM with the new MERF. Therefore, the support of the local chief executive and other city government leaders is the encompassing factor in this endeavor. 7) Continuous Monitoring and Improvement – Taking into consideration the various factors that affect the time duration for solid waste collection, the personnel effort and required logistics, it is important to have a proper monitoring and evaluation system in place. Traffic situation can change overtime. Land use and increase in commercialization and urbanization add on to the volume of the traffic as well. In order to optimize the collection time and efforts, the management should continuously monitor and evaluate the effectiveness and efficiency of the system, and most importantly, implement measures to improve and systematize SWM of the city. These measures may include ascertaining the optimum collection time for a certain zone, the volume of waste generated (whether they can be aggregated in collection points or not), and manner of collection with possibility of compaction. The collectors can also determine whether it can reduce the collection time and effort should recyclable materials be separated for normal collection and collected separately. In short, the collection effort can always find room for improvement.
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8 ENGINEERING GEOLOGICAL AND GEOHAZARD ASSESSMENT FOR THE SELECTED SITE (TASK 6)
8.1. Geology and Seismicity
8.1.1. Regional Geological Setting
Regional Tectonic Setting
The regional tectonic setting is indicated in Figure 8.1. The Philippines consists of Mesozoic and Cenozoic island arcs, ocean basins and continental blocks that were emplaced during the Tertiary (Geary and others, 1988). It is surrounded by two opposite trending subduction zones: Manila Trench, Negros Trench and Sulu Sea Trench to the west and East Luzon Trough and Philippine Trench to the east. The trenches are the result of oblique convergence of the Philippine Sea Trench and the Eurasian Trench. Most of the major earthquakes, volcanic activity and orogenic processes are associated with plate tectonics. Apart the subduction zones, major active faults are known to occur in the country. The most prominent of these is the Philippine fault Zone (PFZ). Other prominent active fault systems that are expected to influence the project area seismicity include Casiguran Fault and West Valley Fault.
Manila Trench
MbnnbD4875anila Trench is a north-south trending subduction zone located in South China Sea, off the coastal area of northwestern Luzon. It is a deep elongated trough stretching from 20 degrees N to 13 degrees N in northwest Mindoro Island. The oceanic crust is being subducted eastward along the Manila Trench. Landward of the trench is West Luzon Trough which is a sediment filled forearc basin (Karig, 1973). Subduction along the Manila Trench is associated with the formation of the Neogene to Recent volcanic arc from north Luzon to west of Mindoro (Hamburger, et al, 1983)
Slabs of oceanic crust having been translated eastward and now comprising largely the Zambales mountain range apparently originated from the west. Associated Quaternary volcanism and moderate to high level seismicity as well as the highly deformed sediments in the West Luzon Trough are considered manifestations of active subduction.
The southern portion of the trench south of Manila, near the coastal area of northwest Mindoro, appears relatively more active. The latest earthquake activity, mB 7.6 on April 4, 1942 whose epicenter lies near the coastal area of northwest Mindoro is the largest recorded historical earthquake generated by the Manila Trench. Considering its strike length however stronger earthquakes of about Ms 8.0 could be expected. The nearest projection of the fault with respect to the project site is about 160 km.
East Luzon Trough
East Luzon Trough is also a subduction Zone located on the offshore area of northeastern Luzon. The Philippine Sea Plate is being subducted northwestward below the Eurasian Plate/ Philippine Platelet. On the landward side the East Luzon Trough is manifested by a cluster of shallow earthquakes with a maximum depth of 80 km. Seismicity along the East Luzon Trough occurs primarily at depths of 60 km between 15 degrees N and 18 degrees N (Hamburger, et al 1983). In accordance with the earthquake data the convergence of the Luzon Arc with the Luzon Sea Plate is slightly inclined to a west- northwest dip.
At about 15 degrees N the East Luzon Trough is separated from the Philippine Trench by an east-west trending transform fault (Hamburger, et al 1983). The East Luzon Trough is apparently a younger structure than the Manila Trench. Several large earthquakes generated in the East Luzon Trough include the Ms 6.1 seismic event on August 3, 1968 and the Ms 6.5 earthquake on April 7, 1970. A maximum credible earthquake of Ms 7.4 assigned to East Luzon Trough, based on geological criteria. The strike projection of East Luzon Trough nearest the site is about 240 km.
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Philippine Fault System
With more than 1200 km of mapped strike length, the Philippine Fault System (PFS) is a major contributor of large earthquakes in the entire country. It dissects the entire Philippine Archipelago, from northern Luzon, through eastern Visayas and eastern Mindanao (Allen, 1962). Geomorphic features characteristic of active faults such as displaced Recent Gravel, stream off-sets, sag ponds, fault scarp and closed depressions are closely associated. The PFS is a left lateral strike slip fault that generally trends northwest, oblique to the Manila Trench and the East Luzon Trough. It accommodates the northward component of movements along the east and west subduction zones.
In northwestern Luzon, wherein the project area is located, the fault trace extends from Dingalan Bay to Lingayen Gulf. Passing through south of Central Cordillera and Caraballo mountains, it main fault separates into several splays trending north-northwest comprised of Digdig Fault, Abra River Fault and Tubao Fault, Figure-2. In southern Luzon, east and southeast of Manila, the PFS passes through the isthmus between Ragay Gulf and Lamon Bay. The PFS is a highly active fault system comparable to the more widely known San Andreas Fault of California. According to Coleman (1984), the PFS has ruptured throughout most of its length but that instrumental records of its movement is utterly lacking.
The most recent tectonic event generated by PFS is the Ms 7.8 Nueva Ecija earthquake on July 16, 1990.This last tectonic event had caused extensive damages to structures in Baguio City, Nueva Ecija and Pangasinan. It also resulted to liquefaction failures of the loose sand foundation of several buildings and bridges in Dagupan City, Pangasinan. The rupture length during that seismic event is at least 120 km according to Punongbayan, et al. Other large earthquakes generated by the fault include the Ms 7.3 Ragay Gulf earthquake in 1973 and the Ms 7.3 event on August 17, 1937 whose epicenter is located in the offshore area of Lamon Bay in Quezon.
According to Allen, 1962, the PFS is characterized by a wide zone of interlacing and branching fractures but the most recent displacements are confined to a single distinct zone. Maximum credible earthquake assigned to PFS based on its mapped fault length is Ms 8.0. The fault trace nearest the project area is about 48 km.
Casiguran Fault
Casiguran Fault is located on the coastal area of northeastern Luzon, about 104 km northeast of the site. It is a highly active fault as manifested by several large earthquakes it had generated during the past 50 years. Some of these include the Ms 7.3 Baler earthquake in 1970 and another Ms 7.0 earthquake in 1977. Although located relatively far from the Metro- Manila area, the Casiguran fault generated the intensity VII earthquake on August 2, 1968 that caused the collapsed of Ruby Tower in downtown Manila. Maximum credible earthquake assigned to Casiguran Fault is Ms 7.4
West Valley Fault System
West Valley Fault System (WVFS) consists of two parallel dextral faults located on the western and eastern flanks of Marikina Valley. The fault located on the west side of the valley is referred to as the West Valley Fault (WVF) while the one on the east side, the East Valley Fault (EVF). The WVF is a northeast trending right lateral fault with a mapped length of about 150 km. It extends from the northern shore area of Taal Lake up north to Angat, Bulacan. The northern half of the fault had been mapped by PHIVOLCS but its southern continuity was established mainly on the basis of photo-geologic interpretation and satellite imagery, Punongbayan, et al 1997. Studies made on the EVF indicated a large vertical component of movement. The fault trace on the north is apparently manifested by a fault scarp which appears to coincide with the western boundary of Sierra Madre Mountain.
No historical earthquake record exists which suggest that the VFS is active. The VFS is known to have displaced Pleistocene Diliman tuff. Recent mapping done by PHIVOLCS however indicated displaced alluvial fans and stream offsets. Appreciable vertical component of
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displacement is noted but the most recent movements appear to indicate more of right lateral mode of movement.
The results of detailed trench mapping and sampling done by PHIVOLCS in cooperation with the USGS (US Geological survey) led to the conclusion that the fault is active and that it had ruptured at least 3 to 4 times during the past 1200 to 1400 years. On the basis of the mapped strike length of the fault the maximum credible earthquake assigned to the fault is about Ms 7.1. The projection of the fault nearest to the project area is about 56 km.
Figure 8.1 Major Tectonics Features in Philippines
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8.1.2. Peak Ground Acceleration
Deterministic Procedure
Peak Ground Acceleration (PGA) is the most important earthquake parameter used in structural design. Deterministic procedure uses attenuation relationship to estimate the peak ground acceleration. The PGA coupled with the penetration resistance value is also the earthquake parameter used to assess the susceptibility to liquefaction of fine grained sand foundation. Owing to the utter lack of strong ground motion records in this country, it is very difficult to evaluate the PGA. The common practice is to assume the validity of the attenuation relations developed in other countries provided however that the prevailing tectonic setting in that country is similar to that of the Philippines. The equation developed in Japan by Fukushima and Tanaka in 1990 finds wide acceptance in this country. The Fukushima-Tanaka equation is shown below:
0.41M Log10 A = 0.41 M – log10 (R + 0.032 x 10 ) -0.0034 R + 1.30
Where: A = peak ground acceleration in cm/sec M = surface wave magnitude R = distance of fault rupture to the site in km
Maximum credible earthquake (MCE) is used to calculate the PGA. MCE is the largest conceivable earthquake that an active fault is capable of generating. It is difficult to assess MCE especially for the fault system without any earthquake record. In the absence of available information, the MCE is usually determined with the aid of geological criteria based on rupture length, rupture area and displacement. A plot of the epicenters of strong earthquakes indicates that most of these are located near known earthquake generators. However, a few of these would be found highly isolated, appearing unrelated with the major structural features. It is quite possible that some of the isolated earthquakes that had occurred in the past were generated by yet unknown active faults.
Considering medium ground condition, the expected peak ground accelerations at the site are summarized in Table 8.1.
Table 8.1 Peak Ground Acceleration
Earthquake Sources Distance, km Maximum Credible Peak Ground Earthquake, Ms Acceleration in g’s Philippine Fault 48 8.0 0.21 System West Valley Fault 56 7.1 0.11 Casiguran Fault 104 7.4 0.06 Manila Trench 160 8.0 0.044 East Luzon Trough 240 7.4 0.01
Thus, based on the above table, it is recommended that PGA of 0.21 g which is credited to tectonic movements along the Philippine Fault System shall be used for structural design as well as for assessment of the liquefaction susceptibility of the site soils.
Seismic Design Parameters – NSCP
In accordance with the National Structural Code of the Philippines (NSCP) C101-01 Volume-1, the following seismic parameters may be used for structural design:
Seismic factor, Z = 0.40
Soil profile = dense
SPT Values > 50 (for 30 meters depth)
Estimated shear wave velocity, Vs = 360 to 760 m/s
Seismic source type = Type A (M 7.0)
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Seismic coefficient = 0.44 Na; Cv = 0.64 Nv
Near source factor: Na = 1.0 and Nv = 1.0
Control periods Ts = Cv/2.5 Ca = 0.64 second and To = 0.2 Ts = 0.128 second
8.1.3. Stratigraphy
Figure 8.2 is Regional Geological Map of Central and Southern Luzon based on MGB Geological Map of the Philippines. Directly west of and nearer to the project area is Zambales Mountain and on the east the Sierra Madre Mountain Range. The core of Zambales Mountain is made up of basic and ultrabasic rocks, mainly dunite and layered gabbro. These rocks are generally highly fragmented and serpentinized. It is associated with isolated patches of undifferentiated Cretaceous to Paleogene strata consisting mainly of regionally metamorphosed sedimentary and volcanic rocks. The volcanic rocks are mainly andesite and basalt and it also includes spilites and chert. The sedimentary rocks are mainly shale and sandstone. The old rocks are intruded by diorite intrusive stocks and dikes. East and west of Zambales Mountain the ophiolite is overlain by successively younger but highly folded rock formations. The map also includes active and inactive Pliocene, Pleistocene and Recent volcanic centers, NQV in the geological map. The NQV volcanic belt occurs in the Bataan Peninsula as well as in the provinces of Batangas and Laguna. Most notable of the volcanos near the site are Mt Pinatubo to the west and Mt Arayat to the east. Andesite and basalt flows with closely associated agglomerate and tuff generally comprise the volcanic centers.
Sierra Madre Mountain, east of Central Luzon Plain, is underlain by basement rock consisting of Cretaceous to Paleogene undifferentiated volcanic and sedimentary rocks (KPg and K in the map) similar to those in Zambales Mountain. However ultramafic rocks are absent. In turn, the old rocks are overlain by a thick succession of Paleocene to Oligocene sediments and volcanics. Shale and sandstone with limestone comprise mainly the sedimentary rocks while andesite and dacite constitute the volcanics. Stocks and dikes of diorite, granodiorite, and quartz diorite intrude the older rocks. The old rocks are highly faulted and folded. Thin belts of Late Oligocene to middle Miocene folded sediments and volcanics overlie unconformably the older rock formations. The foothills of Sierra Madre to the east are dominated by upper Miocene to Pliocene to Pleistocene sedimentary and volcanic rocks.
As indicated in the geological map the Luzon Central Plain, within which Angeles City is included, is underlain by Quaternary Alluvium.
8.1.4. Structural Geology
Folds
As the regional geological map indicates the Late Oligocene to Upper Miocene sediments are highly folded both at the Zambales and Sierra Madre mountains. The anticlines and synclines generally trend N-S more or less concordant with the major faults. The older rocks dated Cretaceous to Paleogene are more tightly folded.
Faults
The major faults generally trend N-S, N-W and N-E in Zambales Mountain. As these fault structures affect only the older rocks, these are inactive. Most of the fault systems are either strike slip fault or gravity fault. However, the more prominent are the thrust faults that are believed to have transported the ultramafic rocks.
In Sierra Madre Mountain the most prominent is the NW trending Philippine Fault System (PFS). With a mapped length of 1200 km, this fault system dissects the entire Philippine Archipelago. In Luzon, the main fault is divided into several splays that cut through the Cordillera and Caraballo mountains. The main fault is located more or less at the northern limit of Central Luzon Plain. Northeast trending faults and thrust faults also occur in Sierra Madre Mountain.
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8.2. Project Site Geology
Figure 8.3 is Geological Map of Angeles City adopted from the MGB. As indicated in the map the majority of the city area is underlain by Quaternary alluvium. The Bamban Formation which apparently represents the underlying bedrock beneath the site was mapped on the northwest corner of the quadrangle. An isolated volcanic dome surrounded by low lying flat topography occurs east of the site.
Figure 8.2 Regional Geological Map of Central and Southern Luzon
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Figure 8.2 Regional Geological Map of Central and Southern Luzon (cont’d)
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8.2.1. Quaternary Alluvium
Central Luzon Plain is underlain by a thick succession of alluvial soil. It is generally a heterogeneous mixture of clay, sand, silt and gravel. In Angeles City, however, the alluvium is apparently comprised mainly of sand. The sand is apparently commonly associated with thin beds of clayey sand, clay and gravel. However, the sand, the most common, is fine to medium grained, and generally non-plastic. On the basis of its composition, the sand in Angeles City appears to comprise largely of lahar deposits (volcanic sand). Drilling at Clark Economic Zone, formerly a US Air Force Base in Angeles City, the alluvial sediments is more than 100 meters thick. Near the surface the sand is predominantly medium grained silty sand but at the bottom section the sand is largely coarse grained poorly graded (minus 200 mesh sieve less than 5 %) and gravelly. The sand is so thick and highly pervious. It is a relatively good aquifer.
Drilling information undertaken at various locations in Angeles City proper generally indicated also the prominence of medium grained poorly graded sand. The poorly graded sand is so thick that even at the Final depths of drilling at 30 meters the same soil type persists. The only difference is that the sand is relatively coarser grained. Water table lies closer to the surface in Angeles City Proper than at Clark Economic Zone.
The alluvium rests on bedrock consisting of Bamban Formation. The depth to reach the bedrock level is not generally known.
8.2.2. Bedrock Lithology
As mentioned above no bedrock is expected to lie within about 100 meters beneath the site. Drilling information available from deep well contractors as well as factual drilling information done by the undersigned at the site of Texas Instrument, Philippines at Clark Economic Zone indicates that the alluvium is more than 100 meters. Consequently, thick sedimentation consisting largely of sand is expected at the Sports Complex site.
8.2.3. Superficial Deposit
The type of sediments underlying the site is based on drilling information done by drilling contractors in Angeles City. The type of sediments encountered are mainly sand. The sand classification however varies because of differences in texture, plasticity and amount of fines contained in the soil (% passing 200 mesh sieve). The clay layer within the predominantly sand bed is limited in thickness. The clay is medium plastic and it includes large percentage of sand such that in some cases it is classified as clayey sand.
8.3. Geotechnical Considerations
8.3.1. Soil Types Based on Available Information
The soil types underlying Central Luzon Plain are geologically lumped under the Quaternary Alluvium classification. Quaternary alluvium is generally a complex admixture of layers of clay, silt, sand, and gravel which occurs in various thicknesses and proportion. The type of soil that predominates in a given area highly depends upon the location of the site with respect to the type of parent rocks and surrounding volcanoes. This is because the sediments are derived from volcanic eruptions (lahars) and weathering breakdown of the surrounding bedrock. Thus, if the source rock is shale or fine grained sedimentary rock the common end product is clay. If the parent rock is hard igneous rock, the end product is likely either sand, gravel or silt depending upon the degree of weathering. In Pampanga, however, one of the other major sources of the alluvium besides weathering and erosion of pre-existing rocks is lahar deposits. Lahar deposits are soil types derived from volcanic eruptions. Lahar deposits are mostly sand although near the volcanic apron gravel and rock boulders are common.
As the present work is limited to pure research it is difficult to characterize the foundation soils in terms of its engineering properties. For lack of drilling information, the soil types and related field tests data assumed below were taken from other sites explored in Angeles City. The city engineer’s office provided drilling information on two sites in Angeles City: (a) 2 boreholes at Villa Teresa and (b) 2 boreholes for exploration of building foundation for Central Park Hotel.
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The location of these sites with respect to the project site is not known. Additional drilling information is also available at the Texas Instrument project site explored by the undersigned at Clark Special Economic Zone (CSEZ). However, CSEZ is relatively far from the present area of interest. As the soil types described below were determined for other project sites there is a possibility that the actual founding beds beneath the project site are different. Besides knowing the soil types it is also necessary to determine the relative density and water table characteristics beneath the site for the assessment of the geological hazards. In general, soil strength is not a major consideration because the structure involve is not more than 2- storey building.
The following generalizations could be made on the results of drilling information derived from the city engineer’s office:
(a) The soil types underlying Villa Teresa and Central Park Hotel sites are similar in terms of classification and texture. In both sites the founding bed consists of fine to medium grained poorly graded sand. (b) At Villa Teresa the upper 10 meters of the soil column is medium dense sand with N- Value varying from 10 to 27 blows. N-Value consistently increases with increasing depth below the surface. Below 10 meters the sand is dense to highly dense, N-Value 32 to 88 blows (c) At Central Park Hotel the top 5 meters of the soil column is similarly medium dense, N- Value varies from 6 to 22 blows with higher values at increasing depth. Below 5 meters the poorly graded sand becomes dense to very dense, N-Value 37 to refusal. (d) Depth of water table beneath the two sites widely differ. At Villa Teresa the water table in May lies only 0.50 meters below the surface while at Central Park Hotel it was measured to lie 18 meters beneath the surface.
Other subsurface information available is obtained from exploration of the soil foundation at Texas Instrument, Phil and at site for Clark Electric Power Substation both located at Clark Special Economic Zone, based on drilling done by the undersigned. These sites are located about 8 km northeast of the site. The following relevant information were obtained:
(a) The soil foundations are similar with only minor differences. While the main soil foundation consists of thick beds of medium to coarse poorly graded sand in both cases, the soil beds underlying Texas Instrument, Phil include thin layers of soft clay and loose clayey sand. (b) The top 6 meters of sand is medium dense, with N-Value varying from 6 to 27 blows. N-Values of the one-meter thick clay bed are generally low. (c) The sand is clayey sand and clay beds vary from 4 to 5 blows. The N-Value increases with increasing depth. Its relative density becomes dense to very dense below 6 meters (d) Water table varies from 4 to 9 meters beneath the sites.
8.3.2. Potential Founding Bed
Based on above it is likely that the founding bed beneath the site shall consist of poorly graded sand and/ or silty sand with medium dense relative density. The sand is possibly very similar to those encountered in Angeles City at Villa Teresa and Central Park Hotel. The relative density is very likely to be medium dense and non-plastic. For structures less than 2-storeys high the sand is adequate as foundation. Assuming the sand is medium dense and with a conservative design N-Value of 8 blows, the friction angle is approximately 29 degrees, based on the correlation of penetration resistance value to phi angle by Peck, Hanson and Thornburn (1974) and mathematically approximated by Wolff (1989). Such equation is reproduced below:
Effective angle phi = 27.1 + 0.3N (adj) – 0.00054 N2
Considering that the sand is semi pervious owing to the limited amount of fines (% passing 200 mesh sieve) that it contain, the settlement expected is comparatively immediate. It shall also be uniform because of the generally uniform soil distribution expected at the site. However, the actual soil strength for structural design could only be obtained through subsurface investigation. Excessive and uncontrolled withdrawal of groundwater in the project area could result to excessive settlement.
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It is not possible to obtain information regarding the depth of water table beneath the site. Information available at Villa Teresa indicates very high water table, lying almost near the surface (0.50 meters depth) while at Central Park Hotel the water table lies 18 meters below the surface. Because of such large discrepancy it is possible that the measurements made by the drilling contractors are not accurate. At Clark Special Economic Zone the water table lies 4 to 7 meters below the surface. The water table depth also depends upon the time the investigation was undertaken.
Subsurface investigation is required during detailed engineering stage to characterize as closely as possible the foundation soils. Most vital soil properties needed are resistance to penetration and particle size distribution. These are needed for assessment of the susceptibility to liquefaction of the foundation soils.
8.4. Geological Hazard Assessment
8.4.1. Fault Related Ground Rupture Hazard
As the project area is fully covered with alluvium it is not possible to determine the presence of active fault at the site. Rock exposures are located relatively far from the site and that up to this time no active faults have been mapped. Furthermore, geological evidences suggestive of active fault presence such as fault scarp, fault line valley, stream offsets, and gravel offsets were not recognized at the site. Also, major fault systems that influence the site seismicity are too far from the site. Consequently, the absence of active fault traversing the site could be assumed.
8.4.2. Ground Shaking Hazard
As discussed under the section on Section-2 Geology and Seismicity, the major active faults and subduction zones that occur within a radius of 200 km of the site includes: (a) Philippine Fault System, (b) Valley Fault System, (c) Manila Trench, (d) Casiguran Fault and (e) East Luzon Trough. Intense ground shaking shall be experienced at the site especially if the Philippine Fault System and the Valley Fault System rupture. Moderate ground shaking shall be experienced should the Manila Trench and the Casiguran Fault moved. However, as the active faults are located relatively far from the site no violent shaking is anticipated.
Earthquake ground shaking shall cause foundation settlement. However, as the soil distribution is fairly homogeneous, uniform settlement is anticipated.
8.4.3. Soil Liquefaction
Susceptibility of the soil foundation to liquefaction depends upon many factors. Historical data indicates that the potentially liquefiable soils are fine grained impervious sand which occurs under an environment of high water table. In addition, the fine sand is loose (low N-Value), highly saturated and it occurs in a region with high seismicity. Because of the generally limited amount of fines of the sands in Pampanga (% passing 200 mesh sieve), the sand foundation is generally fairly pervious. It is thus possible that the poorly graded Pampanga sands are not prone to liquefaction. However, the susceptibility to liquefaction could only be determined by actual field and laboratory tests. Susceptibility to liquefaction is analyzed by taking into consideration the penetration resistance, the soil types and peak ground accelerations of the active faults.
One of the strongest earthquakes that had recently affected Pampanga was the Ms 7.8 Nueva Ecija earthquake which occurred on July 16, 1990. Despite the very strong ground shaking associated and heavy damage to property and loss of lives, no liquefaction was reported in Pampanga. Extensive liquefaction failures were reported largely in Dagupan, Pangasinan.
8.4.4. Tsunami
The project area is far from the coastal area, hence no tsunami is expected.
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8.4.5. Landslide
The characteristic topography is extremely flat. No landslide is therefore expected.
8.4.6. Flood
The project area is far from the major drainage systems in Angeles City. Abacan River, the major drainage system north of the city lies about 1 km away. Closely located is a minor creek about half km south of the property. Because of the generally flat topography flood occurrence is highly possible during heavy and prolonged downpour. A highly efficient surface drainage system is required to minimize flood occurrence.
8.5. Conclusion and Recommendation
On the basis of the foregoing discussions, the following are concluded and recommended:
(a) The approved project site for the proposed Waste to Energy Facility in Angeles City is the Sports Complex located at Barangay Mining. (b) Pampanga province is included within the Central Luzon Plain. The topography is flat and the site is underlain by a thick succession of alluvial soil. The alluvium usually consists of layers of clay, silt, sand and gravel in highly varying thicknesses and proportion. (c) The type of soil underlying Angeles City is based on drilling information obtained from the City Engineers Office and on experience of the writer at Clark Special Economic Zone, also in Angeles City. In Angeles City, the alluvium consists mainly of thick beds of sands which are mainly lahar deposits (volcanic origin). The sand is generally fine to medium grained, non-plastic and largely classified as poorly graded sand to silty sand (dual classification). As this type of sand contains less than 10 % of fines (passing 200 mesh sieve), it is fairly pervious. At appreciable depths the sand generally becomes coarser in texture. At Clark Special Economic Zone the sand beds are similar except that it includes thin beds of clay and clayey sand. Thickness of the alluvium is not known. (d) The soil type beneath the site is very likely similar to above, namely fine to medium grained sand with medium dense relative density. Borehole information indicated widely differing depth of water table. At Villa Teresa the water table lies 0.50 meters below the surface while at Central Park Hotel it was measured to lie about 18 meters below the surface. The large discrepancy appears to indicate erroneous measurement. At Clark the water table lies n4 to 6 meters below the surface. (e) On the basis of the MGB Geological Map, the alluvium is expected to rest on Bamban Formation. Bamban Formation consists of layered pyroclastic rock and sedimentary rock. It includes active and inactive volcanic centers. The volcanic belt occurs largely in Bataan Peninsula and it extends southeastwards to Cavite, Batangas and Laguna. Mt Pinatubo, an active volcano, lies few tens of km west of the site while Mt Arayat, a volcanic dome, lies to the east. (f) The project site is embraced in a region considered with high seismicity. It is surrounded by active faults and subduction zones that include Manila Trench, East Luzon Trough, Philippine Fault System (PFS), West Valley Fault (WVF), and Casiguran Fault. (g) Site specific analysis of seismic parameters is thus necessary for structural design and for assessment of the susceptibility of the site soils to liquefaction. The peak ground acceleration (PGA) is calculated for each of the earthquake generators based on maximum credible earthquakes (MCE). Calculation of MCE is based on geological features of the fault such as fault length, displacement, etc. The attenuation relation developed in Japan by Fukushima and Tanaka is used in the calculation of the PGA. (h) Table below indicates the major earthquake generators within a radius of about 200 km, the relative distance to the site, earthquake magnitude and the associated PGA.
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Earthquake Distance from Earthquake PGA in g’s Generators Site, km Magnitude, Ms (1) Philippine Fault 48 8.0 0.21 System (2) West Valley Fault 56 7.1 0.11 (3) Manila Trench 160 8.0 0.044 (4) Casiguran Fault 104 7.4 0.06 (5) East Luzon Trough 240 7.4 0.01
(i) Thus, for structural design and for assessment of liquefaction, a PGA of 0.21 based on movement along the Philippine Fault System is recommended. (j) The allowable bearing capacity is not a major consideration because the proposed structure is not more than 2-storey’s high. However, as the site is located in a region with high seismicity the major consideration is liquefaction and settlement. Liquefaction depends upon the relative density of the soil, depth of water table and permeability of the foundation soil. Loose, fine grained and impervious sand which occurs in an environment of high water table is particularly vulnerable to liquefaction. (k) Because of the above drilling of few shallow holes prior to construction is a must. However, on the basis of present information, it is possible that the sand is not prone to liquefaction. The sand appears fairly pervious as it contains limited amount of fines (less than 10 % passing 200 mesh sieve). No liquefaction was noted in Pampanga following the Ms 7.8 earthquake in Nueva Ecija on July 16, 1990. (l) In case of occurrence of strong earthquakes, the foundation soil shall settle. However, owing to the regular soil distribution the expected settlement shall be uniform. Considering that the trace of the Philippine Fault System lies only 48 km from the site, intense ground shaking is expected.
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9 ENVIRONMENTAL AND SOCIAL ANALYSIS (TASK 7)
9.1. Initial Meeting with City Government
An initial meeting was conducted between Kiko Pangilinan (Environmental Officer of CENRO, Angeles City) and the Consultant in October 2015. Summary of the key notes and discussions are presented below,
1. Sensitive Receiver There are some sensitive receptors within the 1 km radius of the project site including some schools and chapel. An ongoing housing development can also be found next to the Project site. 2. Water bodies nearby the site No significant water bodies are identified nearby the project site. 3. Affected Barangays All barangays will be impacted by the project as the waste collection and transfer practices will be changed (refer to the waste collection system) 4. Waste Collection System Three types of collection system are currently in place, city, barangay and private haulers. 27 out of 33 barangays have their own trucks to collect garbage. No waste pickers are identified since the TrS was closed down. Barangays were required to establish their respective MRFs. There are currently four MRFs operating in the city. 5. Household Perception Survey According to the city government, the results of the planned perception survey could possibly be negative. 6. Stakeholder Engagement The city government has conducted consultation meetings regarding the proposed project at the barangay level in 2014 and particularly for Barangay Mining in June 2015.
9.2. Stakeholder Engagement Exercise
Two focus group discussions (FGDs) were organized and arranged to present the proposed project and identify the issues, perception and concerns from the stakeholders about the project. The first FGD was conducted on 24 November 2015 at the Angeles City Hall, Pampanga, in which representatives of the 32 barangays in Angeles City (except barangay Mining) and CENRO were participated. These participants consisted of Barangay captain, and Barangay council – Environment Committee Chair and Barangay health representative.
The second FGD is expected to be conducted during the week of 7 December 2015, in which representatives of Barangay Mining (host barangay) are expected to be participated. These participants would consist of Barangay captain, Barangay council – Environment Committee Chair and Barangay health representative.
A key informant interviews (KIIs) would also be conducted with the waste pickers at Barangay MRFs during the period of the FGD. Through the KIIs, the Consultant would be able to determine their income sources and if they are satisfied with their income. The details of the proposed project would not be discussed during the KIIs.
9.3. Initial Environmental Examination, Social Impact Assessment and Resettlement Safeguard Assessment
The Consultant has also undertaken an initial environmental examination (IEE) study following all the Philippine regulations and policies and in accordance with ADB’s Safeguard Policy Statement (2009) and ADB’s Environmental Assessment Guidelines (2003). The findings of the IEE, together with the social impact assessment, gender analysis, following ADB’s Handbook on Social Analysis (2007), Guidelines for Gender Mainstreaming Categories of ADB projects, ADB’s Safeguard Policy, and all Philippine regulations and polices as well as the resettlement
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safeguard assessment, are all presented in the IEE report. The report will be submitted separately from the Final Report.
9.3.1. Policy, Legal, and Administrative Framework
Philippine Regulatory Requirements
The legal framework to be adopted for the implementation of the Project is influenced by the regulatory framework governing solid waste in general, the characterization of the solid waste subject of the MERF as an asset, and applicable renewable energy laws. The implementation of the Project within Angeles City is also envisioned to involve transactions with the Angeles City local government unit (LGU), namely, the provision of service by the MERF for the receipt, storage, separation, conversion, or otherwise processing of solid waste. Laws, rules, and regulations relevant to the Project include:
Republic Act 9003, the Ecological Solid Waste Management Act of 2000 and its implementing rules and regulations;
Republic Act 8749, the Clean Air Act of 1999 and its implementing rules and regulations;
Republic Act 9513, the Renewable Energy Act of 2008 and its implementing rules and regulations;
Republic Act 9136, the Electric Power Industry Reform Act and its implementing rules and regulations;
Revised Rules, Terms and Conditions for the Provision of Open Access Transmission Service;
Republic Act 7160, the Local Government Code and its implementing rules and regulations;
Republic Act 6957, the Build-Operate-Transfer Law and its implementing rules and regulations;
Executive Order No. 226, the Omnibus Investment Code of 1987
Republic Act 9184, the Government Procurement Reform Act;
Republic Act 5183, An Act Regulating the Award of Contracts for the Supply to, or Procurement by, any Government-owned or Controlled Corporation, Company, Agency, or Municipal Corporation of Materials, Equipment, Goods, and Commodities, and Providing Penalty for the Violation thereof; and
National Solid Waste Management Commission (NSWMC) Resolution No. 669 Series of 2016, Adopting the Guidelines Governing the Establishment and Operation of Waste to Energy Technologies for Municipal Solid Wastes.
Permitting requirements of the Project include but are not limited to:
Incorporation documents from the Securities and Exchange Commission (SEC), and licenses from the Bureau of Internal Revenue (BIR), and Board of Investments (BOI) for availment of incentives;
Local approvals;
Local government permits (e.g. business permit, building permit, wiring permit, sanitary permit, etc.);
Approvals from the NSWMC;
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Environmental permits such as the Environmental Compliance Certificate, authority to construct and permit to operate from the Department of Environment and Natural Resources;
Renewable Energy operating contract, confirmation of the declaration of commerciality, and certification of eligibility for feed-in-tariff (FIT) from the DOE (and required documentary attachments related thereto), grid/system impact studies and interconnection agreements, various certificates of endorsements, Memorandum of Agreement under ER 1-94, among others;
Transmission services agreement, connection agreement and metering services agreement with the National Grid Corporation of the Philippines, or interconnection agreement with the local distribution utility;
Submission of Environmental Technology Verification Protocol with the Department of Science and Technology (DOST);
Certification from the National Commission on Indigenous Peoples (NCIP);
Permits for land use, and acquisition of right of way; and
Compliance with bidding requirements for the construction and operation of the Project.
9.3.2. Asian Development Bank Safeguard Requirements
The Project is also set to comply with the ADB’s safeguard requirements in accordance with the 2009 ADB Safeguard Policy Statement (ADB SPS) for three key safeguard areas:
Safeguard Requirements 1: Environment - outlines the requirements that borrowers/clients are required to meet when delivering environmental safeguards for projects supported by ADB, and aims to ensure the environmental soundness and sustainability of projects and to support the integration of environmental considerations into the project decision-making process
Safeguard Requirements 2: Involuntary Resettlement - outlines the requirements that borrowers/clients are required to meet in delivering involuntary resettlement safeguards to projects supported by ADB, and aims to avoid or minimize involuntary resettlement, enhance or restore the livelihoods of all displaced persons relative to pre- project levels, and improve the standards of living of the displaced poor and vulnerable groups
Safeguard Requirements 3: Indigenous Peoples - outlines the requirements that borrowers/clients are required to meet in delivering indigenous peoples safeguards to projects supported by ADB, and aims to design and implement projects in a manner that fosters full respect for Indigenous People’s identity, dignity, human rights, livelihood systems, and cultural uniqueness
9.3.3. Description of the Project
The Waste to Worth Project is a project that involves the development of a MERF in Angeles City by combining the design, construction and operation of mechanical and biological treatment (MBT) and Waste to Energy (WTE) facilities at the same site. It aims to create worth from municipal solid waste (MSW) that would otherwise be disposed of in landfills by:
Recovering recyclables;
Anaerobically digesting biodegradables to produce biogas for electricity generation; and
Thermalizing residuals to produce syngas for electricity generation.
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The proposed MERF is expected to generate up to 8 MW to 10 MW of electricity daily by operating at 95% plant capacity. It is anticipated that the MERF will require approximately 230 tons of MSW per day in order to produce this power. To ensure that the required feedstock volume of the MERF is achieved, the Angeles City Government plans to improve the city’s waste collection system by requiring large businesses and establishments to dispose their wastes through the city government. Utilizing commercial feedstock from agricultural residues and biomass is also being considered.
SURE Global W2Wi (SURE Global), a joint venture partnership between W2Worth Innovations and LLC, Solutions Using Renewable Energy Inc. will be the owner/operator of the MERF. The Angeles City Government will be a local JV partner who will provide land for the MERF development and waste collection and delivery services for the Project.
The Project will consist of three components, which include the MERF, access roads, and transmission facilities. The MERF will consist of Waste Preparation Facilities, an Anaerobic Digestion Unit, a Thermal Processing Unit, and ancillary and supporting facilities.
The Project is currently undergoing a feasibility study to determine its viability. Commercial operation of the MERF is expected to commence on a staggered basis because of the varying construction periods required for the various components. The target date for the commissioning of the MERF is expected to be January 2019. The total capital cost of the Project is estimated to be approximately USD 44.97 million (as of 2017).
The local government officials of Angeles City have faced challenges in the management of the city’s solid wastes due to the large number of relocation and migration of families and individuals into the city. This has resulted in the increase of volume of waste. Economic benefits associated with the Project include:
Generating an annual electrical output of 61,820 megawatt-hours (MWh) (after adjusting for operating hours, plant efficiency and parasitic load);
Converting waste that is harmful to the environment to energy, thereby reducing the need for a sanitary landfill that may translate to cost savings for the city;
Avoidance in Greenhouse Gas Emission; and
Fuel cost savings.
9.3.4. Analysis of Project Alternatives
9.3.4.1. Site Selection
A high-level site selection exercise was conducted by the Consultant last July 2014 as part of the PPTA to determine the most viable site for the development of the Project in Angeles City. These include:
Site 1 – The former City Slaughterhouse Site
Site 2 – A Private Agricultural Land
Site 3 – The Sports Complex Site
The three sites were assessed based on a scoring system that constitutes a two-tier categorization of site selection criteria using Four Basic Criteria (Planning, Environment, Engineering, and Social), which were sub-classified into 17 Detailed Criteria in the scoring system.
Site 3, the current site of the Project located in Barangay Mining, had the highest score among the three sites assessed last July 2014. The site is found to be the most preferred site for the MERF development.
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9.3.4.2. Technology and Process Engineering Review
A high-level technology review to determine the feasibility of the integration of technologies that were selected for the Project was undertaken as part of the PPTA. These technologies include:
Separation and cleaning technologies offered by DB Technologies BV 24 (DB Technologies) that separate organic and non-organic fractions in the waste stream;
Bio-treatment technologies offered by Anaergia Asia Inc. (Anaergia) that receive the organic fraction from the waste stream. The technologies apply anaerobic digestion to stabilize the organic waste and generate biogas for heat and power generation; and
Thermal Treatment technologies offered by ICM Inc. (ICM) that receive the non-organic fraction from the waste stream. The technologies apply gasification to chemically convert the non-organic fraction of waste into Syngas for heat and power generation.
9.3.4.3. No Project Option
The “no project” option must be weighed against the social and economic benefits of the Project and the development plans of Angeles City in terms of managing the solid waste of the city. If the W2W Project will not proceed, the Angeles City local government may pursue other Waste to Energy undertakings from other interested proponents. Angeles City may also continue to dispose their solid waste in landfills if a Waste to Energy project does not materialize, or they may implement other strategies as they see fit. The land may also be utilized for a completely different purpose.
Anticipated economic benefits of the Project will also not materialize if the Project does not proceed.
9.3.5. Description of the Environment and Social and Cultural Conditions
Environment
The Project is proposed to be located in a publicly owned land in Barangay Mining in Angeles City, in the Province of Pampanga. The proposed project site has an approximate area of 3 ha and is currently vacant. The project site may be directly accessed via Mining Road. The site is also predominantly flat, with an elevation ranging from approximately 72 to 75 meters above sea level. Most of the site remains unutilized with the exception of the temporary barangay MRF within the project area.
The project site’s location makes it invulnerable from storm surges, tsunamis, and lahar flooding. It also has a very low susceptibility to earthquakes and liquefaction as confirmed by the City Environment and Natural Resources Head, Mr. Francis Pangilinan. The soil type within the proposed project site is Angeles Fine Sand.
Based on the Philippine Atmospheric, Geophysical and Astronomical Services Administration’s (PAGASA) Modified Corona System of Climate Classification, Angeles City has a Type I climate which has two pronounced seasons – dry season from December to May and wet season from June to November. The principal wind regimes affecting the Angeles area and the project site are the northeast wind flow from January to February and the southwest wind flow from June to September while the annual prevailing wind is south-westerly. The area is visited by at least one cyclone a year.
There are no rivers or streams within the project site. The nearest water body is a creek located approximately 500 m west of the project site. The creek is mainly used as a discharge point of wastewater coming from nearby canals, as per the Angeles City Government.
24 DB Technologies BV is an Anaergia Company.
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The groundwater class of the entire project site is Class I(C), consisting of rocks in which flow is dominantly inter-granular, with local and less productive aquifers. Known production well yields mostly about 2 liters per second (L/s) but as high as 20 L/s at some sites. The project site has a groundwater pump (Figure 5.9 and Plate 5 2) which is approximately 36 meters deep. However, as per the on-site security officer (Mr. RJ Abarico), water from this groundwater pump is only utilized for washing by the guards on duty and is not suitable for drinking.
The project site is located in a highly degraded open area covered with various grass species. All recorded flora species are associated with highly degraded habitats. Based on available secondary data, all recorded mammal species in the province of Pampanga that thrive in the habitat types represented by the project site (agricultural, grassland, garden and open areas, and human habitation) are not listed under the IUCN Red List of 2016, the Philippine Wildlife Act of 2001, and the CITES 2016 list. The presence of these species in the project site potentially indicates a degree of tolerance to occupy highly-degraded and highly-urbanized habitats.
Out of the 358 bird species, only 45 species may be associated with the conditions in the project site. These bird species thrive in non-forest habitats such as built-up areas, grasslands, brush/shrubland, and agricultural land. None of the bird species associated with the project site were listed under the Philippine Wildlife Act of 2001, the International Union for Conservation of Nature (IUCN) Red List of Threatened Species 2016, and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) 2016.
Three amphibians and two reptiles were identified to be associated with open degraded habitats, built-up areas and human habitations, or areas that have been modified by anthropogenic activities (agricultural lands) such as the project site. All amphibian and reptile species identified are either unlisted or considered as ‘least concern’ under the Philippine Wildlife Act of 2001, the IUCN Red List of Threatened Species 2016, and the CITES 2016.
There are no environmentally sensitive ecosystems within and in the vicinity of the project site.
Social and Cultural Conditions
Angeles City has a total land area of 6,337.39 hectares composed of 33 barangays. Based on the National Statistics Office’s (NSO) last census in 2010, Angeles City has a total population of 326,336 with an annual population growth rate of 2.14%. Latest data from the Angeles City Government show that the city’s population in 2014 was at 355,229, with a population density of 56 persons per hectare. There are 83,786 households in Angeles City as of 2014. There are a total of eight resettlement areas in the city with a total land area of 98 hectares occupied by 7,662 families. In Barangay Mining, about 80 families are informally settling in the Rivera property located approximately 1.5 km from the project site. These families were transferred after the Mt. Pinatubo eruption in 1991.
The highest educational attainment in Angeles City for both genders is at secondary level (high school) with 124,253 graduates, followed by elementary education with 92,067 graduates, and college level education with 29,193 graduates. The city has 25,004 out-of-school youths (OSY). Angeles City has 42 public elementary schools, 11 public high schools, 1 City College, and 8 private colleges and universities.
Angeles City has seven private hospitals and one government-owned hospital. Aside from these hospitals, there are 38 licensed clinics, nine birthing homes, and 20 diagnostic laboratories in Angeles City. Barangay Mining has one rural health unit, one barangay health center (Mining Health Center), and one hospital (Rafael Lazatin Memorial Medical Center). In 2014, the leading causes of morbidity in Angeles City were respiratory diseases, hypertension, and diarrhea while the leading causes of mortality were diabetes mellitus, heart disease, and pneumonia.
For the Central Luzon Region (Region III) where Angeles City is located geographically, the annual per capita poverty threshold in 2012 was PhP 20,071.00. The annual per capita poverty threshold of the region in 2006 was PhP14,422 or PhP1,201.83 a month, and in 2009, PhP18,188.00 or PhP1,515.67 a month. Based on data from the NSCB, the annual poverty
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incidence among families in Region III in 2012 was at 10.10%, which means that 10.10% of the total number of families had incomes lower than the established per capita poverty threshold of the region.
In the absence of available data on employment in Angeles City, as stated in their CLUP 2010 to 2020, regional-level data from the National Statistics Office (NSO) was used to discuss employment. The National Statistics Office (NSO) reported that the average Labor Force Participation Rate (LFPR) of Region III in January 2016 was estimated to be at 63.0%. The employment rate at the region during the same period was at 92.5%.
No indigenous peoples are found in the project area. The forest and watershed area located in Barangay Sapangbato is one of the main sources of economic activity of the Indigenous Peoples (IPs) along with non-indigenous people, specifically living in Sitio Target – a community adjacent to the forest area. Barangay Sapangbato is located approximately 10.6 kilometers northwest of Barangay Mining. There are no known structures or sites of historical, archaeological, or architectural significance within the project site.
The Angeles City CLUP lists a total of six types of land uses which include built-up areas, agricultural/cultivated lands, agricultural/tropical grass lands, bush/forest cover, Diosdado Macapagal International Airport (DMIA) Runway/Complex, and the Abacan River. Majority of the city consists of built-up areas which include residential, commercial, institutional, and industrial areas as well as open spaces. Built-up areas are dominated by residential areas consisting of 199 residential subdivisions. The proposed project site in Barangay Mining is located on an institutional area within the built-up areas of the city. At present, the project site remains unutilized after the sports complex development was abandoned.
The Angeles City Water District (ACWD) and the Balibago Waterworks System are the main sources of water supply of the city of Angeles. About 90% of Barangay Mining’s population is connected to the ACWD. The remaining 10% either make use of their own water pumps or are serviced by the Balibago Waterworks System. The project site has a groundwater pump which is not potable and is only used for washing by guards on duty in the site. The city’s electric requirement is provided by the Angeles Electric Corporation (AEC), the sole provider of the power requirements of Angeles City.
Modes of transport in the city include rail, road, passenger airlines, and water with road transportation being the most utilized. Existing transport infrastructure consists of road networks, railways, bridges, and terminals. Angeles City has a total of 229.113 kilometers of roads consisting of national roads, city roads, and barangay roads. The city has a road density of 3.615 kilometer for every square kilometer.
9.3.6. Anticipated Environmental and Social Impacts and Mitigation Measures
The construction and operation of the MERF in Angeles City is expected to have limited impacts (if any) in terms of land acquisition and resettlement, encroachment of environmentally sensitive areas and historical/cultural monuments, and vegetation loss based on the current status of the Project’s proposed location. The perceived environmental impacts are also anticipated to be acceptable, mitigatable and contained within the Project site and its vicinity. There will also be no significant impact on livelihood displacement and/or the earnings of pickers/sorters during the pre-construction and construction stages of the Project since the waste pickers are allowed to continue picking.
The key potential environmental and social impacts of the Project include the:
Potential increase in ground level concentrations of air pollutants from vehicular and plant equipment emissions, and the flue gas that will be generated by the MERF;
Generation of dust, odor, and noise;
Attraction of feral animals and disease-carrying pests which may cause nuisance in sensitive receptors surrounding the project site;
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Change in soil quality in the project site by leachate from MSW;
Generation of traffic;
Exposure of workers and communities to hazards associated with the transport, handling, and storage of MSW (or unacceptable waste in some cases) and the construction and operation of the MERF and its associated facilities;
Generation of employment for local skilled and unskilled workers during construction and operations, respectively;
Increase in the number of waste pickers/sorters and/or more working days available (with more regular and predictable earnings) for pickers/sorters during the operations phase of the Project; and
Impacts associated with informal settlements or temporary accommodations (i.e., make-shift overnight dwellings) adjacent the project site as a result of people seeking employment and income-earning opportunities which could lead to uncontrolled growth and its attendant problems
The Project’s front-end engineering design will address these potential impacts as much as practicable, and will be mitigated along with proposed measures in the Project’s Environmental and Social Management Plan. SURE Global will also comply with all local regulations and relevant international standards throughout all the phases of the Project.
9.3.7. Public Consultation and Information Disclosure
Engagement of the project’s stakeholders through consultation meetings, interviews, and focus group discussions were undertaken to involve the public in project planning and also identify recommendations for continuing public participation. SURE Global has also worked extensively with the wastepicker community to ascertain how they wished to be leveraged in the Project and how their working conditions can be improved.
Salient issues and concerns that emerged from these consultations are:
The proposed site of the Project (i.e., in an urban area), the details and timeline of the Project, and the effect of the Project’s operations on the environment and public health;
Expedite the construction of the proposed MERF
The threshold and magnitude of the waste required by the Project vs the waste produced by Angeles per day;
Role of the ACRA during the operation phase of the proposed MERF as well as their benefits from their project;
Vehicular traffic resulting from the magnitude of waste that will be transported to the transfer station and the inadequacy of the road system;
The benefits the city will gain from the Project;
The potential smell and other nuisance the Project may generate citing the experience with the present MRF;
How the wastes will be managed if the facility is not able to process the MSW immediately;
Effects of the Project to wastepickers/sorters;
Compliance to legislation; and
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Community and social acceptability.
Some of the stakeholders consulted expressed their support for the Project while the remaining are still uncertain since the concept of a MERF is new to them. However, as long as the safety of the environment and the health of the community is assured, they are willing to accept the project.
The Project’s front-end engineering design will address these concerns as much as practicable, and will be mitigated along with proposed measures in the Project’s ESMP. SURE Global will comply with all local regulations and relevant international standards throughout all the phases of the Project. A continuing stakeholder engagement program will also be implemented by SURE Global, to foster transparency, ensure that stakeholders have access to timely and correct information, and make informed judgments on concerns that affect their lives and their communities. Information disclosures for the Project will be conducted in the local language of affected communities (as necessary), will be made with consideration to targeting disadvantaged or vulnerable groups, and will be free from external manipulation, interference, coercion, and intimidation.
9.3.8. Grievance Redress Mechanism
A Grievance Redress Mechanism (GRM) will be established by SURE Global to receive and manage community complaints or concerns associated with the construction and operation of the Project. It is proposed that the Project adopts the principles and practices of the International Finance Corporation (IFC) enunciated in its ‘Good Practice Note: Addressing Grievances from Project-Affected Communities: Guidance for Projects and Companies on Designing Grievance Mechanisms.
The GRM will provide procedures on how to receive and record complaints or concerns, identify appropriate representatives who will address them, and provide a feedback mechanism to stakeholders who raised them. Stakeholders will be given the opportunity to raise complaints through multiple means including meetings, written complaints, a hotline number that will be established by SURE Global, drop-boxes, and email. The identity of and the concerns raised by stakeholders will be kept confidential.
The Environmental and Social Management Unit that will be set-up for the Project will be responsible for regularly liaising and coordinating with project stakeholders and implement the Grievance Redress Mechanism for the Project.
9.3.9. Institutional Requirements and Environmental Monitoring Plan
Mitigation measures to address the potential environmental and social impacts of the Project will form part of an Environmental and Social Management Plan (ESMP) that will be developed and implemented for the Project, to ensure that the Project meets all local regulations and relevant international standards, and that potential impacts are minimized or mitigated. The Project will also have a monitoring plan that identifies the critical aspects that will be monitored periodically throughout the various phases of the Project, along with the scope and timetable for the monitoring activities. This plan is a live document, and will be continually updated as further details about the Project are determined. SURE Global will form an Environmental and Social Management Unit to efficiently implement and monitor the ESMP and Environmental Monitoring Plan for the Project. The Environmental and Social Management Unit will also be responsible for reporting on the environmental and social performance of the Project based on:
Compliance with relevant environmental regulations;
Compliance with international standards e.g. European Union Waste Incineration Directive 2000/76/IEC on dioxins and nitrogen oxide;
Compliance with ADB’s SPS 2009 and social protection principles;
Compliance with labor standards and applicable national laws; and
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Actual impacts against predicted impacts in the IEE.
While the FEED for the MERF has not been completed, the estimated cost for implementing the ESMP is approximately 4-6% of the project capital cost.
9.3.10. Conclusions and Recommendations
Results of the IEE conducted for the proposed construction and operation of the Waste to Worth Project in Angeles City show that the project will have nil to negligible impacts in terms of resettlement, encroachment of environmentally sensitive areas and historical/cultural monuments, and vegetation loss because of its proposed location.
The key potential environmental and social impacts of the Project include the:
Potential increase in ground level concentrations of air pollutants from vehicular and plant equipment emissions, and the flue gas that will be generated by the MERF;
Generation of dust, odor, and noise;
Attraction of feral animals and disease-carrying pests which may cause nuisance in sensitive receptors surrounding the project site;
Change in soil quality in the project site by leachate from MSW;
Generation of traffic;
Exposure of workers and communities to hazards associated with the transport, handling, and storage of MSW (or unacceptable waste in some cases) and the construction and operation of the MERF and its associated facilities;
Generation of employment for local skilled and unskilled workers during construction and operations, respectively;
Increase in the number of waste pickers/sorters and/or more working days available (with more regular and predictable earnings) for pickers/sorters during the operations phase of the Project; and
Impacts associated with informal settlements or temporary accommodations (i.e., make-shift overnight dwellings) adjacent the project site as a result of people seeking employment and income-earning opportunities which could lead to uncontrolled growth and its attendant problems
The Project’s front-end engineering design will address these potential impacts as much as practicable along with proposed measures in the Project’s EMP. SURE Global will comply with all local regulations and relevant international standards throughout all the phases of the Project.
This IEE that does not form any part of the application process of the Environmental Compliance Certificate (ECC) for the Project, SURE Global shall complete the documentary requirements of DENR’s IEE Checklist through their online application system in the next stage. It is recommended however that SURE Global coordinate with DENR-EMB Region III to confirm if they have additional requirements for the Project’s ECC application.
It is also recommended that the following studies be completed to provide further details for the Project:
Air quality and noise modeling; Assessment of potential land and groundwater contamination and landfill gas migration at the site to determine if site remediation is necessary; Detailed Traffic Impact Assessment; and Detailed EGGAR (with drilling).
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10 REGULATORY REVIEW (TASK 8)
This PPTA aims to determine the viability of constructing two (2) MERFs in the Philippines. It is understood that the MERF may consist of both material recovery facilities (which may include the facilities for hauling, receiving, handling and segregation of the MSW), and power plant facilities (for the conversion or generation of energy from MSW). The Consultant has conducted a regulatory review to ensure the Project’s compliance with applicable laws, rules and regulations.
10.1. Identification of Various Implementation Options for the Project Structure
The Consultant examined relevant laws, rules, and regulations on the possible mode or mechanism of cooperation between the LGU and Private Proponent to implement the MERF. Following such review, various options were explored, taking into account their advantages and disadvantages in relation to the Project.
Attached as Annex I is a Memorandum dated 20 March 2015 (updating the initial Memorandum dated 17 July 2014) which highlights the proposed cooperation option between the relevant LGUs and Private Proponent based on inputs received on the envisioned role or participation of the LGUs in the MERF projects.
The Memorandum also took into account the regulatory framework governing solid waste in general and the characterization of the solid waste, which is subject of the MERFs as an asset, including applicable renewable energy laws.
For the implementation of the Angeles City MERF, as of the preparation of the Memorandum dated 20 March 2015, it was envisioned that the host LGU would not provide any form of Government Undertaking25. Rather, the participation or role of Angeles City in the development and construction of the MERF would be limited to the following:
o The proposed site for the MERF is on government property within the jurisdiction of Angeles City (the “Angeles City Project Site”). The Private Proponent intends to lease the Angeles Project Site from Angeles City.
o The Private Proponent proposes to enter into an arrangement with the Angeles City Local Government Unit (“LGU”), whereby the Angeles City LGU would be allowed to deliver the waste so collected and hauled to the MERF, which waste shall be received, stored, separated, converted or otherwise processed in the MERF and serve as
25 As defined under Section 1.3(m) in relation to Section 13.3 of the Revised Implementing Rules and Regulations of R.A. No. 6957, “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector and for Other Purposes,” as Amended by R.A. No. 7718, Government Undertaking refers to any form of government support or contribution, such as, but not limited to (a) Cost Sharing, which entails the LGU bearing a portion of capital expenses associated with the establishment of an infrastructure development facility, such as the provision of access infrastructure, right-of-way, transfer of ownership over, or usufruct, or possession of land, building or any other real or personal property for direct use in the project and/or any partial financing of the project, or components thereof; (b) Credit Enhancements, which refers to support to a development facility, which may include government guarantees on the performance or the obligation of the LGU, (c) Direct Government Subsidy, which involves, among others, the LGU defraying, or paying a portion of the costs or expenses for operating or maintaining the project, or providing any contribution of any property or asset, or (d) Direct Government Equity, or (e) Security Assistance, such as the deployment of government security forces in the vicinity of the project site.
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