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Solid Waste Management Sector Project (Financed by ADB's Technical Assistance Special Fund [TASF- Other Sources])

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Solid Waste Management Sector Project (Financed by ADB's Technical Assistance Special Fund [TASF- Other Sources]) Technical Assistance Consultant’s Report Project Number: 45146 December 2014 Republic of the Philippines: Solid Waste Management Sector Project (Financed by ADB's Technical Assistance Special Fund [TASF- other sources]) Prepared by SEURECA and PHILKOEI International, Inc., in association with Lahmeyer IDP Consult For the Department of Environment and Natural Resources and Asian Development Bank This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. All the views expressed herein may not be incorporated into the proposed project’s design. THE PHILIPPINES DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES ASIAN DEVELOPMENT BANK SOLID WASTE MANAGEMENT SECTOR PROJECT TA-8115 PHI Final Report December 2014 In association with THE PHILIPPINES THE PHILIPPINES DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES ASIAN DEVELOPMENT BANK SOLID WASTE MANAGEMENT SECTOR PROJECT TA-8115 PHHI SR10a Del Carmen SR12: Poverty and Social SRs to RRP from 1 to 9 SPAR Dimensions & Resettlement and IP Frameworks SR1: SR10b Janiuay SPA External Assistance to PART I: Poverty, Social Philippines Development and Gender SR2: Summary of SR10c La Trinidad PART II: Involuntary Resettlement Description of Subprojects SPAR and IPs SR3: Project Implementation SR10d Malay/ Boracay SR13 Institutional Development Final and Management Structure SPAR and Private Sector Participation Report SR4: Implementation R11a Del Carmen IEE SR14 Workshops and Field Reports Schedule and REA SR5: Capacity Development SR11b Janiuay IEEE and Plan REA SR6: Financial Management SR11c La Trinidad IEE Assessment and REAE SR7: Procurement Capacity SR11d Malay/ Boracay PAM Assessment IEE and REA SR8: Consultation and Participation Plan RRP SR9: Poverty and Social Dimensions December 2014 In association with THE PHILIPPINES EXECUTIVE SUMMARY ....................................................................................5 A. Background and Rationale ........................................................................... 5 B. THE PROJECT ............................................................................................ 8 1. Impact and Outcome .......................................................................................... 8 2. Outputs .............................................................................................................. 9 3. Special Features .............................................................................................. 11 4. Cost Estimates, Financing Plan and Lending Arrangements .......................... 11 5. Implementation Arrangements ......................................................................... 13 C. PROJECT BENEFITS, IMPACTS AND JUSTIFICATION .......................... 13 1. Project Benefits and Beneficiaries ................................................................... 13 2. Economic and Financial Analysis .................................................................... 16 3. Governance ..................................................................................................... 16 4. Environmental Considerations ......................................................................... 17 5. Risks and Mitigation Measures ........................................................................ 18 6. Conclusions and Recommendations ............................................................... 18 I. BRIEF INTRODUCTION OF THE PHILIPPINE SOLID WASTE MANAGEMENT SECTOR PROJECT ................................................................. 19 A. Background ................................................................................................ 19 B. Project Objectives ...................................................................................... 21 C. Selection Procedure for LGUs .................................................................... 21 II. RATIONALE: PERFORMANCE INDICATORS, PROBLEMS, AND OPPORTUNITIES ............................................................................................... 22 A. Performance Indicators .............................................................................. 22 1. Population ........................................................................................................ 22 2. Economy .......................................................................................................... 22 3. Poverty ............................................................................................................. 23 4. Environmental Health....................................................................................... 24 5. Climate Change ............................................................................................... 25 6. Solid Waste Management in LGUs .................................................................. 26 B. Key Problems and Opportunities in the SWM Sector ................................. 28 1. Urban Economy and Competitiveness ............................................................ 28 2. Urban Planning ................................................................................................ 28 3. Environmental, Health, and Social Drivers ...................................................... 28 4. SWM Services Linked to Urban Environment Issues ...................................... 30 5. Consistency with ADB’s Country Partnership Strategy and the Philippines Sector Policies and Strategies ......................................................................... 31 6. Philippines Sector Policies and Legal Context of SWM .................................. 32 7. LGU Finance .................................................................................................... 36 8. Public-Private Partnerships ............................................................................. 38 9. Lessons Learned ............................................................................................. 39 10. LGU’s Challenges and Opportunities .............................................................. 40 11. Need for SWM Infrastructure and Services ..................................................... 40 C. Road Map for a New SWM Framework ...................................................... 43 1. Key Strategies of the SWM Roadmap ............................................................. 44 2. Paradigm Shift in Solid Waste Management ................................................... 45 3. Proposed Solid Waste Management Framework ............................................ 47 III. THE PROJECT .......................................................................................... 55 PPTA 8115 PHI: Philippines Solid Waste Management Sector Project A. Impact and Outcome .................................................................................. 55 B. Outputs ....................................................................................................... 55 1. Output 1: Priority Infrastructure Investments in SWM ..................................... 55 2. Output 2: IEC and Knowledge Management ................................................... 58 3. Output 3: Capacity Development and Enhancement ..................................... 58 4. Output 4: Project Implementation and Management Support ......................... 60 C. Proposed Selection Criteria for LGUs to Participate in PSWMSP Development ........................................................................................................ 63 D. Special Features ........................................................................................ 64 1. Innovative Technology ..................................................................................... 64 2. PPP and Large-scale Investments .................................................................. 64 E. Project Financing Plan and Lending Arrangements ................................... 65 1. Project Cost Estimate and Financing Plan ...................................................... 65 2. Disbursement Arrangements ........................................................................... 67 3. Accounting, Auditing and Reporting ................................................................ 68 F. Procurement ............................................................................................... 69 1. Assessment of Procurement Capacity ............................................................. 69 2. Advance Contracting........................................................................................ 69 3. Procurement of Goods, Works and Consulting Services ................................ 69 4. Procurement Plan ............................................................................................ 70 5. Process Thresholds, Review and 18-Month Procurement Plan ...................... 70 6. International Competitive Bidding .................................................................... 74 7. National Competitive Bidding ........................................................................... 75 G. Implementation Arrangements ................................................................... 75 IV. PROJECT BENEFITS, IMPACTS, AND JUSTIFICATION ......................... 80 A. Project Benefits and Beneficiaries .............................................................. 80 B. Social Development and Gender...............................................................
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