Technical Assistance Consultant’s Report

Project Number: 45146 December 2014

Republic of the : 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 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/ 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...... 80 1. Social Objectives in Project Formulation ...... 80 2. Mitigation Measures ...... 81 3. Gender ...... 82 C. Involuntary Resettlement and Indigenous People ...... 82 1. Review of Resettlement Policies and Legal Framework ...... 82 2. Asian Development Bank Policy ...... 87 3. Project Resettlement Policy ...... 89 4. Land Acquisition and Resettlement Impacts of Pilot Sub-projects ...... 91 D. Indigenous People ...... 93 1. Review of Indigenous Peoples Policies and Legal Framework ...... 93 2. Asian Development Bank Policy ...... 94 3. Project Indigenous Peoples Policy ...... 95 4. Indigenous Peoples Impacts of Pilot Sub-projects ...... 97 E. Environmental Considerations...... 98 1. Environmental Assessment of Sector Loan ...... 98 2. Overview of Sector Loan ...... 98 3. Environmental Assessment of Sector Impacts ...... 99 4. Summary of IEEs Prepared for Subprojects ...... 99 5. Environmental Criteria for Subproject Selection ...... 106 6. Environmental Assessment and Review Procedures ...... 107 7. Conclusion ...... 110

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V. PROJECT FINANCIAL AND ECONOMIC ANALYSIS ...... 111 A. Financial Analysis ...... 111 1. Methodology and Assumptions ...... 111 2. Proposed Fees and Affordability ...... 112 3. Financial Performance of SWM Operations ...... 112 4. FIRR and Sensitivity Analysis ...... 113 5. Subproject and Financial Sustainability ...... 114 B. Economic Analysis ...... 116 1. Economic Rationale ...... 116 2. Methodology and Assumptions ...... 117 3. Economic Benefits ...... 117 4. Results of Economic Analysis ...... 119 5. Subproject Economic Sustainability ...... 119 6. Poverty Impact Ratio ...... 120 VI. RISK MITIGATION MEASURES AND RECOMMENDATIONS ...... 121 A. General ...... 121 B. Risks Under the Control of the Project ...... 121 C. Risks that Depend on Decisions or Actions of GoP or Other Agencies ... 123 VII. CONCLUSIONS AND RECOMMENDATIONS ...... 124 A. General ...... 124

Appendices 1. Project Design Framework (DFW) PPTA 8115 PHI 2. Problem Tree Analysis 3. External Assistance 4. Subproject Brief 4.1 Del Carmen Subproject Profile 4.2 Janiuay Subproject Profile 4.3 La Trinidad Subproject Profile 4.4 Malay Subproject Profile 5. IPP Outline 6. to 9. GHG Emissions without and with the project in the pilot LGUs Annexes 1. LGU Selection Matrix for PSWMSP 2. LGU Selection Procedure for PSWMSP 3. Proposed Highly Urbanized Cities (HUCs) for PSWMSP and Mission reports 3.1 Baquio Mission Report 3.2 Mission Report 3.3 Mission Report 3.4 Santa Rosa Mission Report 3.5 Zambonga Proposal 4. List of Open and Controlled Dumpsites 5. Existing Sanitary Landfills 6. Sample MOU between DENR and LGU

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COPYRIGHT: The concepts and information contained in this document are the property of ADB and the Government of the Philippines. Use or copying of this document in whole or in part without the written permission of either ADB or the Government of the Philippines constitutes an infringement of copyright. Conversion Rates: In this report, $ represents US dollars. Conversion rate used is $1 = (P) 43.5 Abbreviations

ADB Asian Development Bank

BOT Build-Operate-Transfer DENR Department of Environment and Natural Resources ECC Environmental Compliance Certificate EIA Environment Impact Assessment EMB Environment Management Bureau FASPO Foreign-Assisted Special Projects Office (DENR) GDP Gross Domestic Product IEE Initial Environmental Examination IRR Implementing Rules and Regulations LGC Local Government Code of 1991 LGU Local Government Unit MDGs Millennium Development Goals MRF Materials Recovery Facility NGO Non-Government Organization NSWMC National Solid Waste Management Commission PPP Public-Private Partnership PPTA Project Preparatory Technical Assistance PSWMSP Philippine Solid Waste Management Sector Project RA Republic Act REA Rapid Environmental Assessment SLF Sanitary Landfill SPS Safeguard Policy Statement SWM Solid Waste Management TA Technical Assistance WTE Waste-to-Energy

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EXECUTIVE SUMMARY

A. Background and Rationale 1. The Project Preparatory Technical Assistance (PPTA) covers the preparation of 10-year solid waste management plans and feasibility studies for selected local government units (LGUs) nationwide from January to December 2013. The four subprojects are located in the municipalities of Del Carmen in Island, province of del Norte; Malay in the province of ; La Trinidad in the province of ; and Janiuay in the province of . 2. Solid waste management (SWM) is a high-priority sector of the Department of Environment and Natural Resources (DENR) and greatly supported by the Philippine Development Plan 2011-20161. The Government of the Philippines has requested the Asian Development Bank (ADB) to consider financing the Philippine Solid Waste Management Sector (PSWMS) project. As envisioned, the Project will include a variety of soft and engineering components to improve SWM services and infrastructure development such as sanitary landfills (SLF) development, landfill rehabilitation and landfill mining, dump site closure, emission control, establishment of material recovery facilities, institution of solid waste collection systems, acquisition of processing equipment, and adoption and establishment of waste-to-energy (WTE) technologies. The Project will also complement past and ongoing institutional capacity development actions for LGUs and technical assistance provisions for project implementation spearheaded by the DENR. 3. The PSWMS Project covers the entire Philippines encompassing urban and rural communities. Four pilot LGUs have been selected for the PPTA from January to December 2013: (i) a stand-alone project2 in Janiuay, Iloilo province in the island of ; ii) tourist destinations in Del Carmen, Siargao Island in , and Boracay island in the municipality of Malay, Aklan Province; and iii) a stand-alone project in La Trinidad, Benguet Province. The selection of pilot areas was conducted in cooperation with the Foreign-Assisted and Special Projects Office (FASPO) and the Environment Management Bureau (EMB) under the DENR. a) Municipality of Janiuay is classified as a first class municipality in the 3rd of Iloilo in the island of Panay. It has 16 urban and 46 rural barangays gathering a population of 66,000, which is expected to reach 91,000 by 2023. On a larger picture, the 3rd District of Iloilo has a population of 443,000 as of 2013, which is projected to grow to 608,000 by 2023. Janiuay currently generates about 21 tons per day (tpd) of solid waste, of which only 16% or 3.5 tpd is collected. Meanwhile, the entire 3rd District collectively generates 126 tpd. Waste collection within the district is about 19 tpd, or a mere 14% of the total waste generation. All LGUs in the District operate their respective collect-and-dump system employing ageing, if not antiquated, government-owned vehicles and dumpsites which have been outlawed since 2006.

1 PDP emphasizes equitable access to basic social services, such as education, health care and housing as well as stronger social safety nets in the context of inclusive growth. In addition, the environment and natural resources as well as peace and security are also included in the medium-term development plan. It also has the special attentions to i) environmental protection is in connection to the continuing deterioration in biodiversity and in natural resources and ii) the unreliable power supply due to the slow pace of investments in power generation and maintenance, which is a major obstacle to growth. 2 Possible cluster development during the phase II

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project b) Municipality of Del Carmen, a 5th class municipality, is one of the municipalities in Siargao Island which belong to the 1st District of Surigao del Norte. It bounds 20 barangays with an estimated population of 20,000. Based on projections made for the municipality, present population is expected to reach 31,000 by 2023. Meanwhile, the Island of Siargao has a population of 95,000 as of 2013, which is projected to rise to 140,000 by 2023. Del Carmen currently generates about 5.7 tpd of solid waste. The entire Siargao Island, on the other hand, collectively generates 21 tpd. Waste collection within Del Carmen and the Island of Siargao amounts to 0.54 tpd and 2 tpd, respectively, accounting for a meager 10% of the total waste generation. This may be attributed to irregular solid waste collection. Furthering this predicament, the LGU presently disposes its waste into an open dump. c) Municipality of Malay is a 1st class municipality situated in the northwestern section of Aklan and is composed of 14 barangays in the mainland and 4 barangays in Boracay Island. As of 2013, the population of Malay stood at 36,000. This is expected to reach nearly 86,000 by 2023. Boracay is one of the most famous tourist destinations in the Philippines with arrivals of 1.2 million tourists in 2012, which slightly rose to an estimated 1.3 million in 2013. It is estimated that 2.7 million tourists will visit Boracay by 2018. The estimated waste generation of Boracay in 2014 is about 45 tons tpd. By 2016, waste generation would reach 54 tpd and further balloon to 109 tpd by 2020. Solid waste generation in mainland Malay by 2014 is estimated at 7 tpd and is presumed to more than double to 16 tpd by 2020. Boracay Island has three materials recovery facilities (MRFs), which process the segregated wastes collected from the island. The residuals from the Boracay MRFs and those collected from Malay mainland are disposed of in the Kabulihan Sanitary Landfill which has now practically reached full capacity. d) Municipality of La Trinidad, the capital of Benguet Province, is a 1st class municipality and situated in a mountainous region of . It is composed of 16 barangays presently registering a total population of about 120,000, which is expected to reach about 188,000 by 2025. La Trinidad currently generates about 72 tpd of solid waste. In addition, agricultural waste from trading post is 20.9tpd. Waste collection efficiency tips at 83% of total waste generation. The municipality has carried out substantial investments over the last 10 years to improve its SWM. However, the present conditions of the sanitary landfill and composting facilities are still reflective of a below par SWM system. Increasing solid waste load and ineffective “black hole3” process are creating hygiene and health risks, increasing environmental pollution within the area and nearby environs. 4. Current solid waste management conditions. Of around 42,000 barangays nationwide, 8,843 have MRFs. In Metro , 956 barangays are served by MRFs, which is equivalent to 56.07% compliance rate. There are 995 existing disposal facilities in the country,

3 The Municipality of La Trinidad started using the so called super “black hole” in 2011 to treat organic waste. The facility uses low temperature plasma and magnets to turn waste into ash. The process consists of an inductive low- temperature heating chamber, a grinder for conditioning of high-medium calorific value material as well connected scrubbers for exhaust air purification purposes. Materials will be grinded and processed for 8 hours within the low- temperature chamber. The result is a carbonised material called “ash.”

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331 controlled dumpsites and 602 open dumpsites. To date, 72 SLFs are operational while 53 SLFs are under construction. Solid waste collection is largely limited to the urban population and reportedly varies from 15% to 90% in terms of efficiency. 5. According to the data given by the Metropolitan Manila Development Authority (MMDA), the total waste diversion in is 41%, and 38% outside of Metro Manila.4 Nationwide average of waste diversion is 26%5 according to the National Solid Waste Management Commission (NSWMC). The Philippines GHG emissions with current waste diversion rate 30% and daily waste disposal rate 32,300ton is in 9.0 Million t CO2-eq/yr6. 6. Out of 1,635 municipalities and cities in the country, 557 have submitted their 10-Year Solid Waste Management plans; 43 of these plans have been approved by the NSWMC. Out of 16 cities and one municipality in Metro Manila, only nine have submitted their plans, of which only one has been approved. This indicates weak and careless attitude of LGUs to comply with Republic Act (RA) 9003 for which targets set in the Philippine Development Plan 2011−2016 have yet to be attained. 7. In 2013, it is estimated that the municipalities and cities in the Philippines collectively generated 44,0007 tons of waste per day. About 32,300 tpd is collected according to the recent appraisal undertaken under PPTA 8115 Philippines SWM. 8. Key gaps in the current SWM system in the Philippines include the following: (i) ageing collection trucks, (ii) limited number of waste bins, (iii) limited space for MRFs, (iv) predicted inadequacy of manual sorting for increased waste generation and collection, (v) delay in hauling of residuals (vi) piling up of unprocessed biodegradables on MRF sites due to poor composting capacity and missing composting markets, (vii) absence of proper disposal sites, (viii) visual estimation of amount of waste collected and transported to deposal sites, (ix) many dumpsites having exceeded already their capacity, (x) the inadequacy of the present system of recording, storage, and retrieval of SWM data, and (xi) the non-imposition of garbage fees on the residential areas. Over the years, the Philippines has increasingly dumped waste to open dumpsites, rivers and water ways. 9. Low solid waste collection efficiency and poor waste disposal have contributed to environmental and health risks highlighted by ground water and surface pollution, and water borne diseases. These risks are related to poor dump site management, flooding, and unhygienic living conditions of the informal sector engaged in recovery of recyclables in many towns and cities. Altogether, these resulted in expensive SWM systems that have persisted through the various crises that have taken place from 2000 to the present. 10. Fast growing population and widening SWM infrastructure gap. Annual population growth from 1999 to 2013 has been at an average of 1.62 million during the past 15 years. This will require some $2.9 billion to satisfy the existing shortfalls in the delivery of SWM services for 24.3 million people. During the same period, LGUs have built new facilities worth $1billion according to the statistics of NSWMC. This, however, is only 34% of the requirement to fill the gap.8

4 Environment Management Bureau. Annual Report CY2012,. 5 The Philippine Development Plan 2011- 2016 has set waste diversion goal to 50%. 6 PPTA consultant’s assessment 7 PPTA 8115 waste generation assessment 8 PPTA 8115 SWM infrastructure vs. population growth assessment.

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11. Risk of ground and surface water pollution. Provision of adequate and good quality water and SWM are invariably linked.9 Based on records of the NSWMC, there are at least 607 open dumpsites and 339 controlled dumpsites in the 17 regions of the Philippines. These dumpsites generally correspond to the collect-and-dump systems employed by most LGUs. 12. Urban flooding intensifies on the combination of climate change, densification of urban cities, and poor management of storm water and surface runoff, and poor solid waste collection. Flooding will continue and be aggravated without strong law enforcement to control the proliferation of informal settlements and indiscriminate dumping of solid waste to drainage and waterways. 13. Waste is wasted energy source in the Philippines. It is anticipated that 600 megawatt (MW) can be generated from municipal waste with different technology applications such as biogas, bio-ethanol, and bio-diesel from organic waste and refuse-derived fuel (RDF) for electricity production alone in the area.10 However, most of these technology applications require in the beginning substantial financial inputs and are technically complex to operate for municipalities. 14. The distribution of generated waste among LGUs provides an indication on how this sector can be managed. Different approaches need to be taken for towns or cluster of towns with low waste generation and for cities or large municipalities with high generation rates. Obviously, MRFs and SLFs and current waste management approaches and practices cannot adequately handle this amount of waste which will grow at a faster rate in the next 20 years and beyond. 15. New technologies must be considered and applied progressively if appropriate waste management is to be attained. In many European and Asian countries, thermal methods have been successfully used in combination with basic SWM practices. The process usually begins with waste segregation at source, followed by collection of the pre-segregated wastes separately, residual processing with MRF and/or further waste reduction with composting and digesting technologies, and finally by thermal treatment of leftover carbon-based material. Landfilling varies from 10% to 15%, depending on public interest in waste minimization and waste processing technology.

B. THE PROJECT

1. Impact and Outcome 16. The expected impact of the Project will be improved public health and well-being of the citizens of the recipient municipalities through reduction of environmental pollution. Expected outcome will be improved access to efficient and reliable delivery of SWM services to residents, with the inclusion of the impoverished sector. Moreover, through the application of an appropriate SWM system, such as a suitable MSW thermal treatment and proper landfill management, not only local but, global impact is realized through significant reductions and abatement of CO2 emissions.

9 In La Trinidad, about 1,985 households use deep wells either for their own use or shared with other households. Some 272 households use shallow wells and 162 households use dug wells. Still, a big number of households totaling some 1,259 have level I water sources, i.e., directly from the rain, spring or rivers. 10 PPTA 8115 presentation to EXECOM on June 23, 2013

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17. The Project’s institutional development component will focus on capacity building, training, public awareness, and community development to improve the present SWM practices. The Project will further enhance capacities of the urban areas to attract more investments in WTE, increase productivity, and create an enabling environment for higher economic growth and global greenhouse gases (GHG) reduction. The design and monitoring framework (DMF) is presented in Appendix 1 and the Problem Tree in Appendix 2.

2. Outputs 18. The Project will follow the priorities identified during the study period for investments in SWM sector infrastructure improvement at the pilot LGUs. Outputs are consistent with overall Project goals and objectives and are geared to contribute to the economic development of, and well-being of residents in participating LGUs. The Project outputs will include the following:

Output 1: Priority Infrastructure Investments in SWM

Subproject Outputs Subproject and Location Subproject Component Description  Acquisition of waste collection 1. The Subproject will mitigate contamination vehicles and waste bins Janiuay ISWM of the local environment, contribute to the  Acquisition of sanitary landfill (SLF) reduction of health risks associated with equipment waste picking and open dumping, and  Construction of a semi-automated provide employment for waste pickers materials recovery facilities (MRF)  Construction of Category 2 Sanitary Landfill  Closure of Gibolo Dumpsite  Acquisition of waste collection 2. The Subproject will mitigate contamination vehicles and waste bins Malay/Boracay of the local environment, contribute to the ISWM  Acquisition of SLF and MRF reduction of health risks associated with equipment manual waste sorting, improve aesthetics  Landfill mining and MRF clean-up and generate additional revenues from sale  Construction of a Resource Recovery of electricity Facility and Energy Recovery Facility  Construction of Cell 2 of Kabulihan Sanitary Landfill  Centralized MRFs to Manoc Manoc ad community MRF to Kaiticlan  Acquisition of waste collection 3. The Subproject will mitigate contamination vehicles and waste bins La Trinidad ISWM of the local environment, contribute to the  Rehabilitation of access road reduction of health risks associated with  Acquisition of SLF equipment manual waste picking, generate additional  Modernization and upgrading of revenues from sale of compost composting plant  Construction of Category 2 SLF Cell 2  Rehabilitation of Cell 1  Landfill mining  Centralized and decentralized MRFs  Acquisition of waste collection 4.Del Carmen The Subproject will mitigate contamination vehicles and waste bins of the local environment, contribute to the ISWM

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Subproject and Location Subproject Component Description  Acquisition of SLF equipment reduction of health risks associated with  Construction of a Materials Recovery waste picking and open dumping, improve Facility aesthetics  Construction of Category 2 Sanitary Landfill  Closure of existing dumpsite ha = hectares, km = kilometer, m2 = square meter, MRF = materials recovery facility, NR9 = national road 9.. Details will be elaborated during detailed engineering design stage. Source: Asian Development Bank.

Output 2: Information, Education, and Communication (IEC) and Knowledge Management

This includes conduct of IEC and public awareness drives at the LGU level, augmenting capability to disseminate information and capturing project lessons efficiently via an accessible digital media platform to serve as a main repository of SWM knowledge Knowledge management will involve organizing symposia, case studies, and online discussion groups to promote a formal community of practice that will monitor and report the LGUs’ progress in compliance, enforcement, and recognition; sustainable SWM financing; SWM technology, innovation, and research; related economic opportunities; organizational development and enhanced inter-agency collaboration; and cross-cutting issues that include good governance, caring for vulnerable groups, and reducing disaster and climate change risks. Output 3: Capacity Building and Enhancement

NSWMC Secretariat/EMB: Strengthening or establishment of an integrated and national and regional SWM database and information and knowledge management system. This component is a mandated function of the NSWMC under RA 9003. DENR-EMB Regional Offices: Strengthening and improvement of local field staff capacity for technical and standards monitoring and enforcement. This is complementary to the improvement of air and water quality standards. It involves both additional personnel and training for DENR-EMB field staff, and (iii) revision and evaluation of the conduct and analysis of the waste analysis and characterization (WAC) module for LGUs to include ‘heat or calorific’ content analysis. The conduct of WAC and its analysis is the most critical step in the whole SWM process. National Ecology Center and Regional Ecology Centers (REC): This includes updating and revision of trainer’s training module/assistance to LGUs for WAC in cooperation with DENR- EMB based on the PPTA WAC enhancement. It will focus on updating and upgrading the technical skills and knowledge of SWM-related technical agencies (i.e. DENR, Department of Science and Technology [DOST], Department of Energy [DOE], Department of [DA], and Department of the Interior and Local Government [DILG]), other SWM training institutions or associations (i.e. Local Government Academy, SWAPP, LGU leagues) and LGU staff. LGUs: (i) Improvement in the technical monitoring and evaluation capacity of LGU staff (i.e. municipal environment and natural resources office [MENRO], engineering/general services offices) on environmental, physical, engineering and technical standards and criteria. This component will be coordinated with the appropriate national technical agencies such as the

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DENR, DOST or DOE or through the RECs, and including (ii) LGU training on SWM accounting, tariff setting, landfill operation, and collection. Output 4: Project Implementation and Management Support

Project Implementation and Management Support Consultant (PIMSC). The Project Implementation Assistance and Management Support consists of consulting services for project management including design, construction supervision, assistance on procurement and disbursement, benefit monitoring and evaluation systems, and other necessary technical, economic, financial, legal, and management advice.

3. Special Features 19. The Aquino administration is leading the way forward to long-term and sustainable SWM solutions. The national government has taken the initiative to improve sector governance by formulating and exploring alternative financing modalities in support of its investment programs. The proposed PSWMS is 100% grant. This fund may be utilized for the construction of SWM infrastructure and further, for the engagement and encouragement of private sector participation in municipal SWM. It has been an established fact that private sector involvement is a crucial, if not mandatory, to secure sustainable large-scale MRFs and WTE operation, which require technical skills and resources. The grant to LGUs takes on a performance-based incentive approach evaluated through a limited number of easily measurable key performance indicators. To ensure the subproject’s financial sustainability, revenues earned are required to be ring- fenced and used exclusively for the payment of SWM expenditures. In this regard, an improved SWM accounting system is necessary. 20. The Project will also pave the way for WTE in all major urban cities. The investment program will enable an environment for enhanced economic activities and job opportunities, specifically for the poor and the socially excluded sector, such as the waste pickers. The SWM sector can become an additional catalyst for growth and broad-based development while addressing poverty reduction and producing high economic returns through resource and energy recovery infrastructure.

4. Cost Estimates, Financing Plan and Lending Arrangements 21. The Project introduces landfill mining, which recovers from closed and open dumpsites’ valuable recyclable materials a combustible fraction, soil, and landfill space. The aeration of the landfill soil is a secondary benefit for the landfill's future use. The combustible fraction is useful for the generation of power. It is expected that landfill mining will take place in Metro Manila and many other economic hubs any time soon to restore dumpsites for other activities. Incentives are increased land value and eradication of environmental pollution and GHG emissions. 22. The total cost of the Project is estimated at $93.15 million equivalent, including taxes, duties, and physical and price contingencies (Table 2).

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Table 2: Cost Estimates by Outputs ($ million) Item Description Amounts a A. Base Cost b 1. ISWM Investment 68.56 2. IEC and Knowledge Management 2.00 3. Capacity Building and Enhancement 0.98

4. Project Implementation and Management Support 4.34

Subtotal (A) 75.88 B. Contingencies c 1. Physical Contingencies 7.58 2. Price Contingencies 6.95 Subtotal (B) 14.53 C. Financing Charges during Implementation d 4.71 Total (A+B+C) 95.13 a Includes taxes and duties of $10.83 million equivalent, involuntary resettlement of $0.10 million equivalent and land acquisition cost of $0.05 million equivalent, all to be financed from Government sources. Additional Government support is provided for administration and operational support during project implementation estimated at $1.2 million equivalent from DENR and $0.32 million equivalent from the LGUs. b In October 2014 prices. c Physical contingency was computed at 10% for civil works, equipment, goods, training, and consultancy. Price contingencies computed on the basis of domestic and international price escalation factors, which include a provision for potential exchange rate fluctuation assuming purchasing power parity exchange rates. Annual rates are as follows: foreign currency at 1.4% and local currency at 4.0% for the period 2015 to 2020. d Includes interest charges during implementation for ADB loan computed at 5-year LIBOR rate plus spread of 0.6% and commitment fee of 0.15%. Source: Asian Development Bank

23. ADB Financing. The Government has requested a $71.0 million equivalent ADB loan and grant to finance the Project. This amount will be sourced from an ADB grant (to be determined) for $1.0 million equivalent and $70.0 million equivalent from Ordinary Capital Resources (OCR) with 25-year term including a 6-year grace period, 0.15% commitment charge, and interest rates determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility plus 0.6 spread. The loan will finance civil works, equipment, capital goods, consulting services, and contingencies. 24. Grant Financing. The UEIF of the UFPF will provide the US dollar denominated co- financing of $2.0 million on a grant basis to be administered by ADB. The UEIF grant will finance one Subproject involving the establishment of a waste-to-energy facility. 25. Government Contribution. The Government of the Philippines, through the DENR, will provide $10.83 million equivalent to cover taxes and duties. Additional Government support will be provided for Project administration and operations during the six-year implementation estimated at $1.2 million equivalent from DENR and $0.32 million equivalent from the LGUs.

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The host LGU will cover land acquisition, involuntary resettlement and equity for the waste-to- energy facility. Financing plan is shown in the following table. Table 3: Financing Plan ($ million) Total Percent

ADB - OCR Loan 70.00 73.6 ADB Grant 1.00 1.0 Urban Financing Partnership Facility 2.00 2.1 National Government 16.56 17.4 Local Governments 5.57 5.9 95.13 100.0 Source: Asian Development Bank

5. Implementation Arrangements 26. The DENR will be the executing agency and the DENR-EMB will be the implementing agency responsible for overall strategic planning, guidance and management of the Project. LGUs are recipient partners. Both parties’ responsibilities are described in the memorandum of understanding (MOU).11 Once approved by the , overall management of the implementation of the subproject shall emanate from the Office of the Municipal through the Office of the Municipal Administrator. The key organizations in the implementation of the project are the SWM Board, the MENRO and other LGU offices. The MENRO shall be responsible for (i) project planning, implementation, monitoring, and supervision; (ii) reporting to SWM Board and DENR-EMB regional project management office (PMO); and (iii) coordination with DENR for all project activities. These will include consulting services, project management, engineering design, construction supervision, procurement of goods and services, institutional development, capacity building, and community awareness and participation.

C. PROJECT BENEFITS, IMPACTS AND JUSTIFICATION

1. Project Benefits and Beneficiaries 27. The Project aims to promote inclusive growth and avoid or mitigate impacts, social risks and vulnerabilities among the poor sectors of the community. Project beneficiaries will benefit significantly through the improvement of SWM facilities and collection system in all of the Project sites leading to improved environmental surroundings, better health and sanitation, and increased employment opportunities. Through an improved SWM service delivery, waste management at the household levels will improve with enhanced participation of all households and residents. With full participation of project beneficiaries, cleaner surroundings and better sanitation will be achieved in their immediate vicinities. An enhanced attitude and knowledge in proper waste disposal will help reduce indiscriminate throwing of garbage on the roadside,

11 See sample MOU between DENR and LGU in, Annex 6.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project rivers and coastal areas and seas. Consequently, the of environmental pollution and water borne diseases will expectedly decrease. 28. With the implementation of the Project, potential employment opportunities will be available for the project beneficiaries, including construction work at the land fill sites or at the MRF facilities, sorting or the creation of livelihood activities using recyclable materials into finished products. As the environment is improved, investments and business opportunities will increase. Overall, improvement in wellness will further improve productivity among the project beneficiaries. 29. As stakeholders expect to benefit from improved environmental condition and sanitation and business opportunities, contribution and participation to SWM project sustainability include: (i) compliance to SWM ordinances; (ii) payment of garbage fees; (iii) segregation of household waste and proper waste disposal; and (iv) assistance in the conduct of IEC and advocacy activities at the level. 30. Affordability and Willingness-to-Pay. An affordability analysis was conducted to determine if households, particularly those in the low-income group, can afford to pay the proposed garbage fee. The results of the analysis revealed that the percentage of monthly household income spent on garbage fee does not exceed 1%12. Based on generally accepted affordability principle that the expenditure on garbage shall not exceed 1% of household income, the proposed fees are considered affordable. The socio-economic survey conducted in each municipality revealed that a great majority of respondents expressed support to the proposed subprojects. The proposed fees are within the respondents’ willingness to pay. 31. Participation and Communication Strategy. The objectives of the communication strategy are to: (i) ensure the appropriate understanding of the stakeholders, particularly the beneficiaries, about the project objectives, benefits, and mechanisms; (ii) draw feedback from project beneficiaries during project implementation; and (iii) sustain interest and change of behavior of stakeholders on SWM. 32. One-on-one communication strategy and continuing dialogues with project beneficiaries and residents will be strengthened by the SWM teams to bring messages across and get feedback on the project implementation, including appropriate waste segregation, time schedules for garbage pick-up, issues and concerns on SWM activities, and garbage fees, among others, in their daily monitoring activities. 33. On attitude and behavioral change, the interpersonal approach will be used in discussing penalties, violations and reward system, and other concerns and issues. Strict compliance with established rules and penalties and rewards usually strengthen behavior change among the project beneficiaries. Interpersonal communication strategy establishes rapport and trust with stakeholders and beneficiaries, which will help in further actions towards positive change. 34. Income and Livelihood Restoration. The four pilot sub-projects do not involve any land acquisition, as identified infrastructure investments (construction and/or rehabilitation of SLF, MRF and Waste-To-Energy (WTE) Facility) will be carried out entirely on government- owned or government-leased property. There are also no affected households (AHs) in the Del

12 World Bank. Technical Paper. “MSW Incineration,” 3%-4% from an average household income for developing countries.

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Carmen and Malay/Aklan sub-projects as no non-land assets or existing livelihood/income- generating activities will be temporarily/permanently affected by sub-project investments. 35. However, project activities in the two remaining sub-projects (i.e. For the Janiuay sub- project, closure of the existing dumpsite in the municipality; and strict implementation of no mixed waste dumping in the La Trinidad sub-project) will have both direct and indirect adverse impacts on the livelihoods of active waste pickers who will no longer be able to continue waste picking activities in the existing dumpsites. 36. Sample RPs have thus been prepared for project appraisal for (i) the Janiuay sub- project; and, (ii) the La Trinidad sub-project. Involuntary resettlement impacts for the Janiuay sub-project involves permanent economic displacement (loss of livelihood/income source) of 18 affected households (95 affected persons) that currently derive income from separating and selling recyclable waste in the existing dumpsite the municipality. Of these, 17 AHs (87 APs) are considered severely affected, as the loss of livelihood/income from waste picking is equivalent to 10% or more of their total income. Involuntary Resettlement impacts for the La Trinidad sub- project likewise involves permanent economic displacement (loss of livelihood/income source) of 28 AHs (135 APs) that currently derive income from separating and selling recyclable waste in La Trinidad’s existing SLF. All 28 AHs (135 APs) in La Trinidad will be severely affected, as the loss of livelihood/income from waste picking is equivalent to 10% or more of their total income. 37. Given the identified impacts, the Project is proposed Category B for involuntary resettlement. Other RPs will be prepared during project implementation stage as and when the sites are identified and land acquisition and involuntary resettlement impacts are assessed. Public consultations with affected households have been undertaken during RP preparation and consultations with concerned stakeholders will continue throughout the project cycle. 38. Indigenous People (IP). There are no IPs in Siargao Island (where the Del Carmen sub-project is located) and thus no sub-project impacts on IPs. Although there are IPs ( Tribe and Aetas) residing in Janiuay Municipality, they are in the more mountainous areas and not where project civil works will be carried out. There are no affected IP households in the Janiuay sub-project. Boracay Island (Malay/Boracay sub-project) is home to the Ati (also referred to as Aetas) indigenous group, and they have a Certificate of Ancestral Domain Title (CADT) over a 2.1-hectare area in Barangay Manoc-Manoc. However, sub-project civil works will not overlap with their ancestral domain and there are no affected IP households for the sub- project. The livelihoods of 25 IP households (21 AHs are Ibaloi, another two (2) AHs are , and one (1) AH is Kalanguya) who engage in waste picking as a source of income will be affected due to project activities in the La Trinidad sub-project; however, waste picking is not a traditional livelihood source of the IP groups and the impacts will be addressed as part of income restoration measures described in the sub-project resettlement plan. 39. The ADB Safeguard Policy Statement (2009) states, “the Indigenous Peoples safeguards are triggered if a project directly or indirectly affects the dignity, human rights, livelihood systems, or culture of Indigenous Peoples or affects the territories or natural or cultural resources that Indigenous Peoples own, use, occupy or claim as their ancestral domain”. The project will not cause any of these conditions to occur, particularly as the sub- projects will be in primarily urban areas. The Project is thus proposed as Category C for the IP safeguard. However, an Indigenous Peoples Planning Framework (IPPF) has been prepared to guide the preparation of any Indigenous Peoples Plan (IPP) required during project implementation.

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40. Gender. A more in-depth poverty and social analysis (PSA) in the project design phase is necessary to assess whether the proposed Project could best promote inclusive growth and avoid or mitigate social risks and vulnerabilities. As an integral part of the project design process, and developed in parallel with the technical and economic considerations, the PSA provides the basis for setting targets in the Design and Monitoring Framework and mitigation plans, and as baseline for monitoring poverty reduction and social impacts of the Project during implementation.

2. Economic and Financial Analysis 41. All the four subprojects were subjected to economic analysis to determine their viability. In undertaking the analysis, the quantification and valuation of economic benefits varied depending on the subproject components. The EIRR was computed at 20% for Del Carmen, 22% for Janiuay, 32% for La Trinidad and 18% for Malay. They all exceeded the 12% economic opportunity cost of capital assumed by ADB. The EIRRs remained above 12% in all sensitivity tests. Quantified economic benefits included: (i) economic efficiency resulting from recovery of recyclable materials; (ii) economic value of compost materials; and (iii) health benefits to the people in the service and adjacent areas. The expected beneficiaries of the Project constitute a diverse group which includes households, business establishments, tourists, and service providers. Economic costs were derived from the financial estimates of capital investments and operation and maintenance (O&M) costs after eliminating all duties and taxes, estimating the traded and non-traded components of costs, and multiplying the net results by appropriate conversion factors (CFs) based on guidelines set by the Investment Coordination Committee of the National Economic and Development Authority (NEDA-ICC): a shadow exchange rate for traded goods of 1.2, and a shadow wage rate factor of 0.6 for unskilled labor. 42. The proposed subprojects are considered revenue-generating, thus financial internal rate of returns (FIRRs) were computed taking into consideration the level of fees that can be collected from their operations. These include garbage fee, tipping fee, environmental fee, and income from recyclables and compost materials. Resulting FIRRs are 7% for Del Carmen, 5% for Janiuay, 11% for both La Trinidad and Malay. All are above the computed weighted average cost of capital of 2.5%. Sensitivity analysis was likewise conducted to test the impact of adverse conditions such as decrease in revenue and/or increase in costs and positive results were demonstrated. Profit and Loss Statements. and Cash Flow Statements were likewise prepared to determine the sustainability of the subprojects. Except for Janiuay which will have negative net income after depreciation during the first three years of operation, the other three subprojects will be able to cover fully their O&M and depreciation expenses for the whole evaluation period.

3. Governance 43. An assessment of the financial management and fund disbursement system indicated that the transparency and accountability elements of good governance have been adhered to by the DENR. Through their direct participation and involvement in undertaking procurement procedures of ADB-financed projects, the DENR has developed an institutional capacity to undertake international and national competitive bidding for civil works, goods and consulting services. Capacity development and training assistance will be provided to the DENR on financial and procurement management and fund disbursement. ADB’s Anticorruption Policy (1998, as amended from time to time) was also explained to and discussed with the government.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project

4. Environmental Considerations 44. The provision of environmental safeguards in all development projects is mandated by Presidential Decree 1586 that establishes the Philippine Environmental Impact Statement System (PEISS). The implementing guidelines of the system are detailed in the Revised Procedural Manual for DENR Administrative Order No. 30, Series of 2003 (DAO 03-30), Implementing Rules and Regulations of Presidential Decree No. 1586, Establishing the Philippine Environmental Impact Statement System. The manual provides that the environmental impact assessment (EIA) study shall determine the environmental impacts of the project and shall provide recommendations or guidance at various stages of the project cycle. It further provides all requirements and processes for the issuance of environmental clearance certificate (ECC). It was agreed during the consultations with ADB that the required level of study that shall be conducted will be what the Government of the Philippines requires. 45. Overall, the potential impacts of the subproject are very positive, benefiting both the environment and the people. It is anticipated that some negative impacts shall emerge during implementation, but are nonetheless confined within the SLF and WTE areas and have short duration, i.e., dust and noise. In general, no significant adverse environmental impacts may be attributed to the implementation of the Project. Otherwise, these impacts can be easily, reasonably, and cheaply mitigated and prevented through adequate measures and regular monitoring during the design, construction, and operation phases. 46. As part of environmental impact assessment, the Consultant should assist the Proponent LGU in calculating the contribution of the current solid waste management practices of the LGU as well as the projected GHG emissions with the proposed project. These calculations shall be based on the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Information about the annual solid waste disposal, amount of waste collected, amount of waste brought to the open dumpsite or landfill sites, amount of recyclable wastes, amount of composted waste materials and amount o wastes that are burned needs to be gathered to calculate the GHG contribution. In all waste diversion and management methods, the percent composition of waste needs to be established. The GHG calculation model developed by the Institute for Global Environmental Strategies (IGES) can be downloaded the http://pub.iges.or.jp/modules/envirolib/view.php?docid=4273 As solid waste management data collection progresses with the implementation of the project, GHG emission calculation shall be continued to establish the GHG inventory with the project and its comparison with baseline GHG emissions. The list of data requirements for the estimation of the GHG emissions can be found in the EARF while further information on the IPCC 2006 Guidelines can be downloaded from the IPCC National Greenhouse Gas Inventories website http://www.ipcc-nggip.iges.or.jp/. Appendices from 6 to 9 present GHG Emissions without and with the project in the pilot LGUs 47. The Government will report the status of compliance with ADB’s Safeguards Policy Statement. The proponent LGU will prepare and submit periodic progress and monthly monitoring reports to the DENR-EMB and PMO. Semi-annual environmental monitoring reports shall be submitted to ADB describing the progress of implementation of the EMP and compliance issues and corrective actions, if any. In addition, semi-annual ECC compliance monitoring report and quarterly self-monitoring reports shall be submitted by the proponent LGU to the DENR in compliance with the Philippine Environmental Impact Statement System. Costs associated with environmental management and monitoring will be integrated in the subproject implementation package.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project

5. Risks and Mitigation Measures 48. Three categories of risks were considered in this study: (i) those under the control of the Project, (ii) those that depend on the decisions or actions of the Government and other agencies, and (iii) those associated with uncontrollable events. 49. Institutional and governance risks under the control of the Project were rated low to medium. Risks concerning policy, physical component, and procurement, social, environmental and financial were rated medium to high. Economic risks were rated low. 50. Risks that depend on decisions or actions of the Government or other agencies include non-approval by the National Economic and Development Authority (NEDA), delays in project implementation, uncertain and vacillating policies on investments in general, and poor governance and corruption that may affect project implementation. These have been rated medium to high. 51. Risks associated with uncontrollable and unforeseeable events include decline in economic conditions, low investor interest, occurrence of natural hazards specifically earthquakes and major storms, and delay in project implementation due to strikes, closure, opposition by civic society, and other politically-driven external factors. Risks related to low investor interest are rated medium to high due to the uncertainties in the proposed technology to generate power from waste. The rest of the identified risks are rated low to medium. 52. Appropriate mitigation measures shall be implemented to reduce, if not eliminate, the impacts of the identified risks so that the subproject components can be implemented on a sustained basis. To respond properly to possible opposition of political, civil society or activist groups for SWM fees, technology or site development, IEC program has been already prepared to increase transparency and knowledge and advocacy of the positive social and environmental impacts of the project to mitigate risks at project delay or low investor's interest. The technical risk of using WTE can be addressed through the participation of the private sector that possesses the knowledge and experience and the validation of the SWM conditions established in the feasibility study during the design stage.

6. Conclusions and Recommendations 53. The proposed PSWMP when implemented can address the current gaps on the SWM system of the concerned municipality. This will lead to the enhancement of the current segregated collection system; automated, faster, sanitary and more efficient recovery of recyclables; and address the issue of management of the unprocessed biodegradables by processing these materials together (at least 50 tpd) with residuals to produce RDF. This can be used to generate electricity though gasification and reduce the amount of residues to be disposed to 15%. Landfill mining and clean-up of the MRF sites will be common activities, including use of the stockpiled residuals for additional power generation; expansion of the capacity of the SLF; capacity building of the SWM staff of LGUs and institution of a systematic recording, storage and retrieval of SWM data. The semi-automated MRFs generate revenues from the sale of power and recyclables. 54. The operation of the resource recovery facility (RRF) and the waste to energy (WTE) facility will be undertaken by the private sector that will provide the technical know-how and experience which the LGUs currently do not possess. 55. Once the grant has been approved, detailed engineering studies on waste composition and generation, and for the facilities and collection system, should be conducted to validate and update the findings in the feasibility study.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project

I. BRIEF INTRODUCTION OF THE PHILIPPINE SOLID WASTE MANAGEMENT SECTOR PROJECT

A. Background 56. The Philippines is an archipelago of 7,107 islands having a population of about 98.7 million13 in 2013. Its total land area, including inland bodies of water, is approximately 300,000 square kilometers. It is bordered by the to the east, the West Philippine Sea to the west, and the Celebes Sea to the south. 57. The Philippine Solid Waste Management Sector Project (PSWMSP) comprises the entire islands of the Philippines with 1,635 urban and rural communities. Four pilot LGUs (see Figure 1.1) have been selected for the Project Preparatory Technical Assistance (PPTA), which covers three different categories: (i) clustered LGUs with a host municipality such as Janiuay in Iloilo Province on the island of Panay; ii) tourist destinations in Del Carmen, Siargao Island in Surigao Del Norte and Boracay Island in the municipality of Malay, Aklan Province; and iii) a stand-alone project in La Trinidad, Benguet Province. 58. The urban population has been growing very fast in recent years due to migration from rural to urban areas as people seek better employment prospects in the cities. It is estimated that 63% of the total population14 of the Philippines now reside in urban areas. It is projected that about 117 million or 84% of will be residing in urban areas by 2050. 59. The Department of Environment and Natural Resources (DENR) is aware of the local government units’ (LGUs’) massive challenge in managing rapid and largely unplanned urban growth. Its major concern is the lack of functional solid waste management (SWM) systems, which not only pollutes groundwater and surface water but also threatens the environment and public health. It has also recognized that the inadequate or inexistent land use law is associated with imbalanced urban development and furthermore poor SWM infrastructure provision. This has impact also on urban informal settlers who are mostly residing in low-lying coastal areas and riverbanks and have been used to the practice of disposing their garbage directly into the waterways15 causing frequent flooding during the rainy season. 60. However, the potential remains for SWM to achieve significant improvement and sustainability in the coming years. The current administration is leading the way forward but long-term, sustainable solutions for SWM have to be defined as soon as possible. To quote DENR Secretary Paje, “Without new technology adaptation and framework, regressive subsidies will continue for SWM. The Philippines’ future SWM shall shift focus from hauling to waste treatment, and resource and energy recovery, which bring the greatest benefits in terms of economy, environment, and climate change mitigation”. 61. To solve complex environmental infrastructure issues related to SWM development, massive SWM infrastructure program with capacity development and information, education, and communication (IEC) support are needed. This Project is expected to initiate further investment to SWM to increase operational efficiency, improve service delivery, and result in positive impact on urban economy, health, and well-being for the people of the Philippines. The

13 World Population Review. December 2013. 14 ADB. City Competitiveness and Cluster-Based Economic Development, Urbanization Trends, Selected Asian Countries and the World. 1950–2030. 15 The river sludge garbage survey conducted by the Department of Public Works and Highways in 2004 indicates that 2,075 tons per day were collected from five major pumping stations in Metro Manila.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project

Project Design and Monitoring Framework (DMF) and Problem Tree are presented in Appendices 1 and 2, respectively.

La Trinidad

Malay/Boracay

Janiuay Del Carmen

Source: PPTA consultant. Figure 1.1 The Project Sites

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B. Project Objectives 62. The PPTA objective is to develop the PSWMSP which supports the strategic objectives of the National Development Plan 2011−2016 and the recently approved National Solid Waste Management Strategy 2011−2016. The strategy complements the Ecological Solid Waste Management Act or Republic Act (RA) 9003 to foster economic development, competitiveness, and well-being in the Philippines, and is suitable for Asian Development Bank (ADB) financing. The PPTA will produce a sector project for ADB engagement over the next six years in the Philippines. 63. The Project’s primary objective will be focused on the following:  SWM at the LGU level to implement RA 9003, which mandates the LGUs to take primary responsibility for their SWM;  Improvement of SWM infrastructure, human resources, and institutional capacity for SWM; and  Strengthening of public heath, environment, and ecosystem in LGUs.

C. Selection Procedure for LGUs 64. The PPTA began on 7 January 2013 with the Inception Phase. One of the main tasks was to select candidate LGUs for the Project. The first selection took place on 22 March 2013 when the Environment Management Bureau (EMB) recommended Del Carmen and Janiuay as tourism and cluster pilot areas, respectively. A month later, on 22 April 2013, EMB selected La Trinidad. 65. During the field surveys, the consultant noted that solid waste generation at Del Carmen is very small, therefore, ADB requested the PPTA consultant to find another municipality or city which has greater solid waste generation and urgent need for improvement of its SWM system. Several LGUs were recommended to DENR during the selection procedure. Finally, the selection procedure was over when Boracay was accepted by the Foreign-Assisted and Special Projects Office (FASPO) on 8 May 2013. Malay/Boracay, Del Carmen, Janiuay, and La Trinidad are representative LGUs for a model for the PSWMSP, which is expected to start in the first quarter of 2015. The selection matrix for the four pilot LGUs is presented in Annex 1 and the procedure employed in the selection of the LGUs is presented in Annex 2. A summary of the selection of the Proposed Highly Urbanized Cities (HUCs) is presented in Annex 3 and 3.1 - 3.5

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II. RATIONALE: PERFORMANCE INDICATORS, PROBLEMS, AND OPPORTUNITIES

A. Performance Indicators

1. Population 66. The Philippines is one of the fastest urbanizing countries in Asia. Since 2000, the country’s population has increased by 1.9% annually on the average, and reached a total population of 100 million in 2014 according to the National Statistics Office (NSO). Fast-growing urbanization, population, migration, and economic development are increasingly requiring better services and infrastructure. Economic growth is fueled by , , , , and (CALABARZON), apart from Metro Manila, and having a combined population of 38 million. There are 43 cities and municipalities with over 300,000 inhabitants, and six cities and municipalities with over 1 million population, with alone having 2.7 million inhabitants. The Southern Luzon Economic Hub contributes over 70% of the Philippines’ gross domestic product (GDP), which directly reflects the waste generation and energy demand. Growing waste generation with changes in consumers’ and household’s behavior has increased waste generation to about 0.15 kg per capita during the last two decades. 67. During the same period from 2000 to 2013, the population in the entire Philippines has increased by 22.5 million people--exacerbating the demand for SWM services and infrastructure. Cities are facing severe flooding and natural disasters related to climate change, which is partially contributed by poor SWM. Problems will arise in the future, when urban population is expected to grow by as much as 67% by 2030, adding an additional 34.8 million inhabitants to the country’s urban areas. Urgent actions are needed from the Government of the Philippines to prepare services and infrastructure in response to current growth challenges.

2. Economy 68. The Philippines has shown steady progress in economic growth. Most particularly, in the last two years (2012-2013), the Philippines posted high GDP growth rates, reaching 6.6% in 2012 and 7.7% in the first quarter and 7.5% in the second quarter of 2013, the highest GDP growth rates in Asia during the first two quarters of 2013, overtaking the People’s Republic of China and Indonesia. The third quarter growth of 7.0 % was driven by the services sector with the robust performance of real estate, rental and business activities, trade and financial intermediation sustained by the accelerated growth of the industry sector (NSCB, 2013). The overall GDP growth rate in 2012 is 6.6 %, with the services sector posting the highest, 7.4%, followed by the industry sector, 6.5% and 2.7% for the agriculture, forestry and services sector. 69. As a newly industrialized country, the Philippine economy still relies heavily on the agricultural sector, however, services have come to dominate the economy. The agricultural sector makes up 12% of the GDP and employs 33% of the workforce. The type of activity ranges from small subsistence farming and fishing to large commercial ventures largely by multinational corporations. 70. Much of the industrial sector is based on processing and assembly operations in the manufacturing of electronics and high-tech components, usually from foreign multinational corporations. 71. The business process outsourcing (BPO) industry has contributed significantly to local employment demand. The Philippines is considered as a location of choice due to its many

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project outsourcing benefits such as less expensive operational and labor costs and high proficiency in spoken English and highly educated labor pool. In 2011, the BPO industry generated 700,000 jobs and some $11 billion revenues, 24% higher in 2010. By 2016, the industry revenue is projected to reach $27.4 billion in revenue with employment generation to almost double at 1.3 million workers. 72. Dollar remittances from overseas Filipino workers (OFWs) is expected to grow even more, with the record $22.5 billion sent by OFWs in 2013, a major source of the country’s foreign exchange reserves and contributing as buffer to financial shocks. Public-private partnerships (PPP) for major infrastructure that has been in place will help to spur growth in the industries including agriculture, manufacturing and mining industries. Such growth is expected to trickle down and reach the lower sectors of the poor which make growth really inclusive, in particular the 40% who lives on $2 a day.

3. Poverty 73. In eradicating poverty, the Philippines posted minimal achievement, particularly, in the rural areas. Two of every three poor people in the country are in the rural areas and depend predominantly on agricultural employment and incomes. Poverty incidence among agricultural households is about four times that of the rest of the population. Although the share of the agricultural sector in the total labor force has gone down from about one-half in the late 1980’s to only a little more than one-third by 2000’s, the sector continues to account for nearly two- thirds of poverty. 74. High poverty incidence was seen to be influenced by many factors such as (i) lack of productive employment opportunities due to low economic growth, (ii) unequal access to opportunities, and (iii) inadequate social safety nets. Unequal opportunities are caused by weak human capabilities due to unequal access to education, health, and other social services. Inadequate social safety nets include unequal access to infrastructures including credit, poor governance, weak institutions and deficient policies. Regional per capita thresholds and poverty incidence in the three regions and province of the four pilot LGUs are shown below. Table 2.1: Regional per capita Poverty Thresholds and Poverty Incidence in the Pilot Subproject Areas Per Capita Poverty Poverty Incidence Among Region/Province Threshold (PhP) Families (%) 2006 2009 2012 2006 2009 2012 Philippines 13,348 16,841 18,935 21.1 20.5 19.7 CAR 12,976 16,217 19,140 21.1 19.2 17.5 Benguet 12,944 15,820 19,140 4.0 4.2 2.8 Region VI 12,432 16,036 18,029 22.7 23.6 22.8 Aklan 13,182 16,907 17,707 32.2 36.7 20.4 Iloilo 12,827 16,584 18,827 16.8 19.9 20.8 12,935 16,858 19,629 41.7 46.0 31.9 Surigao Del Norte 13,233 17,261 20.566 41.6 48.9 33.8 Source: NSCB. December 2013.

75. The Philippines posted an annual per capita poverty threshold of about Php18,935 in 2012 from Php16,841 in 2009. Poverty incidence among families is decreasing from 21.0% in 2006 to 19.7% in 2012. Among the four provinces covered by the project in 2012, Benguet has

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project the lowest poverty incidence among families accounting for 2.8 % while Surigao del Norte posted the highest at 32%. 76. Reducing poverty incidence remains to be a continuing challenge for the Philippines. The Philippine Development Plan (2011-2016) has targeted poverty reduction with inclusive growth. It is expected that the poorest of the poor will be a priority in the provision of basic social services including livelihood and employment.

4. Environmental Health 77. Promoting environmental health is a mandate of the Department of Health (DOH), particularly the Environmental and Occupational Health Office of the National Center for Disease Prevention and Control. The program strategies and activities are focused on environmental sanitation, environmental health impact assessment, and occupational health through inter-agency collaboration. 78. “Environmental health deals with all aspects of the natural and built environment that may affect the health of a person. It addresses all the physical, chemical, and biological factors outside of the person, and all related factors affecting behavior. It encompasses the assessment and control of environmental factors that can potentially affect the health of the people.”16 79. The World Health Organization identifies five areas of concern in environmental health. These are  water, sanitation and hygiene: drinking water safety, excreta management, food sanitation, personal hygiene, and safe water recreation;  quality of the physical environment: control of outdoor and indoor air pollution, waste management, chemical safety, and noise pollution control;  health in specific settings such as in workplaces, public places, and housing;  emergency preparedness and response; and  adaptation to climate change. 80. The discussions below focus on SWM in the Philippines, specifically at the LGU level, as it relates to concerns on environmental health, disaster (emergency) preparedness and response, and climate change. 81. Some of the more commonly reported environmental health and injury issues related to SWM as documented by the World Bank (2006)17 in middle and lower-income countries, including the Philippines, are as follows:  contaminated leachate and surface runoff from land disposal facilities affecting down- gradient groundwater and surface water quality;  methane and carbon dioxide air emissions from land disposal facilities adding to global warming, and subsequently, vector-borne disease abundance and pathogen survival;  volatile organic compounds in air emissions and inconclusive evidence on altered cancer incidence, birth defects, and infant mortality, as well as psychological stress for

16 WHO. 1993. 17 Cointreau, Sandra. 2006. Occupational and Environmental Health Issues of Solid Waste Management: Special Emphasis on Middle- and Lower-Income Countries. Urban Papers UP-2. World Bank Group. Washington, DC.

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those living near solid waste incinerators or inadequately controlled land disposal facilities;  animals feeding on solid waste providing a food chain path for transmitting animal and human diseases;  uncollected wastes retaining water and clogged drains, thus leading to stagnant waters that encourage mosquito vector abundance; and  uncollected wastes providing food and breeding sites for insect, bird, and rodent disease vectors.

5. Climate Change 82. Climate change is a global phenomenon that requires global solutions. As more Asian nations became industrialized economies during the 20th century, energy consumption has increased greenhouse gas (GHG) emissions that are trapped in the ozone atmosphere of the earth, causing global warming. Climate change is the consequence of global warming. If no action is taken, it is likely to intensify in the years to come. Under a high-emission scenario developed by Intergovernmental Panel on Climate Change (IPCC, 2007), the global mean temperature increase could reach 4ºC and would have serious impact on the world’s growth and development. 83. Greater Metro Manila, the largest metropolitan region in the country has 34 million people; other large urban areas include Metro and . Overall, there are 326 cities and urban municipalities which are located in coastal areas. As a consequence of the archipelagic nature of the country, nearly all of these urban centers are located in or near the coast, which exposes a huge segment of the population as well as much of the country's economic infrastructure to risks associated with climate change. All actions to mitigate climate change should therefore be taken into consideration. 84. Fast-growing economy and improved living conditions are requiring more energy. During the last ten years, natural gas has supported energy productions at about 35%. However, increase in energy demand has currently been fulfilled by coal. Today, electricity production contributes to 28% CO2 emissions in Metro Manila. Traffic has the overwhelmingly highest CO2 emission of about 63%, while SW represents CO2 equivalent emission of only 9%. 85. The Philippines is prone to man-made and natural disasters. In recent years, tangible impacts of climate change have been experienced in the Philippines. According to the Joint Report18 of the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) and various United Nations agencies, the extreme weather events will continue to become more frequent in the near future. On 8 November 2013, super Yolanda hit City with full force, causing massive destruction. The death toll stands at 6,900 people in Eastern alone. Many are still missing. Infrastructures, public services, agriculture, forest, and livelihoods of the people were wiped out by the storm surges. Reconstruction will take years and is projected to cost billions of dollars19. Further, emission reduction using the best available technology should be taken into account and implemented systematically in SWM.

18 A joint study with Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) and United Nations Development Program (UNDP) Philippines and the various UN agencies (UNEP, FAO, WHO, UN Habitat) “Strengthening the Philippines’ Institutional Capacity to Adapt to Climate Change” in 2009. 19 ADB Assistance to Typhoon Recovery Reaches $1 Billion. 18 December 2013.

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6. Solid Waste Management in LGUs 86. Out of 1,635 municipalities and cities in the country, 557 have submitted their 10-Year Solid Waste Management plans; 43 of these plans have been approved and several conditionally approved by the National Solid Waste Management Commission (NSWMC). Out of the 16 cities and one municipality in Metro Manila, only nine have submitted their plans, of which only one has been approved. This indicates low progress of LGUs to comply with RA 9003 for which targets set in the Philippine Development Plan 2011−2016 have yet to be attained. Of the about 42,000 barangays nationwide, 8,486 have MRFs. In Metro Manila, 956 barangays are served by MRFs, which is equivalent to 56 % compliance rate. There are 995 existing disposal facilities in the country, 321 controlled dumpsites, and 602 open dumpsites. To date, 72 SLS serving 112 LGUs and 53 SLFs are under construction. 87. A 2007 World Bank-funded study20 commissioned by NEDA on the estimated volume of waste diversion and capacities for SLF facilities showed that with efficient waste diversion, 90% of municipalities and cities shall generate solid waste of less than 15 tpd, and more than 92%, if a 25% waste diversion is implemented as mandated by law. Based on this volume, LGUs would only need a Category 1 SLF (based on DENR DAO 10-2006) or only a simplified landfill with less stringent technical requirements than an engineered landfill.21 88. The waste diversion in Metro Manila has increased to 42% from the 34% recorded in 2011. This improvement can be attributed to the increase in operational MRFs, implementation of ecological SWM in areas with homeowner’s associations, implementation of LGU-wide SWM in 128 LGUs nationwide, and massive advocacy campaign and knowledge enhancement programs. Likewise, the closure of open and controlled dumpsites has also increased by 7.9%, from the 1,027 open and controlled dumpsites recorded in 2011 to 946 in 2012, Annex 422 89. According to the NSWMC, urban areas generate about 22,000 tons of solid waste per day. This volume is projected to increase to 28,000 tpd by 2025. CALABARZON, which accounts for 28% of the country’s population and covers 8% of the land area, generates about 38%23 of the total solid waste in the Philippines. Most of the existing dump sites in CALABARZON are nearly full. There is a looming solid waste crisis not only in Metro Manila and Cebu, but also in many LGUs24. Long-term solution for SWM is needed for urban hubs as well as at the LGU level. Given the extent and gravity of the problem, urgent actions are required to scale up investments in the SWM sector. 90. SWM at the national strategic economic hubs such as CALABARZON, Bulacan, Pampanga, Metro Iloilo, , and Metro Davao requires substantial financial and technological inputs. Private sector participation is necessary to expedite SWM infrastructure development. 91. LGU mandate on SWM. The management of solid waste in the Philippines is a basic service function of LGUs as provided in Section 17 (Basic Services and Facilities) of the Local Government Code (LGC). It states that barangays, municipalities, and cities shall be

20 NEDA and World Bank. 2007,Study on Cost-sharing framework for Solid Waste Management in the Philippines. 21 DENR Administrative Order (DAO) No. 10, Series of 2006, refers to the guidelines on the categorized final disposal facilities into four categories based on net residual waste generation, after taking into account the waste diverted through composting, recycling, and recovery efforts and taking into consideration the environmental, financial, and socio-economic conditions of the LGUs, including its hydro-geological dimensions. These guidelines comply with Sections 37, 40, 41 and 42 of RA 9003 and DAO No. 2001-34. 22 EMB statistical records. 23 PPTA 8115 study. 24 PPTA Fact Finding Missions from February to May 2013.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project responsible for the effective and efficient provision of basic services such as SWM. Barangays, in particular, shall provide for services and facilities related to general hygiene and sanitation, beautification, and solid waste collection. 92. Municipalities and cities are mandated to provide for “solid waste management disposal system or environment system and services or facilities related to general hygiene and sanitation.”25 The role of the provinces in the provision of SWM services is not directly stated in the LGC but is implied in the provision of infrastructure facilities that may be funded from provincial funds.26 93. RA 9003 and its implementing rules and regulations (IRR) reiterate and define the roles of barangays, cities, municipalities, and provinces with respect to SWM as follows:27  creation of a Solid Waste Management Board at the city, municipal, and provincial levels;  creation of an SWM Committee at the barangay level;  submission of a 10-year SWM Plan at the provincial, city or municipal levels;  establishment of MRF in each barangay or cluster of barangays, and city or municipal centralized MRF;  closure of open dumpsites and conversion into controlled dumpsites by 2004 at the city or municipal levels; and  banning of controlled dumpsites by 2006 at the city or municipal levels 94. In July 2012, the NSWMC released a report on the state of SWM28 in the Philippines, which informed the preparation of the National Solid Waste Management Strategy (NSWMS). The report identified key issues and challenges in the implementation of RA 9003, including key institutional and local implementation arrangements and challenges. This study takes off from many of the findings of the NSWMC report. 95. Although a few dozen cities and municipalities have complied with most of their mandates, other LGUs have shown minimal headway in implementing RA 9003 due to political influences, varying availability of resources, and low grasp of the technical nature of SWM. These reasons, according to the GIZ SWM4LGUs Project, are further compounded by the frequent replacement of SWM officers alongside political transitions since the creation of an LGU environment and natural resources office (ENRO) is merely optional and not mandated under the LGC. 96. Local elections in the Philippines happen every three years. Local chief executives and councilors usually have bare knowledge of the intricacies of waste management techniques and rely on their city/municipal SWM focal persons for actual implementation. These LGU technical personnel, whether existing or newly appointed, often do not have formal education on SWM.

25 See Sec. 17 (b)(2)(vi) and 17 (b)(4) of the Local Government Code. 26 See Sec. 17 (b)(3) (vii) of the Local Government Code. 27 NSWMC. 2012. Status of Solid Waste Management in the Philippines. Quezon City (Part 1, July 2012 draft). 28 Assessment of Policy Gaps, Harmonization of Policies and Needs Analysis in the Management of Solid Waste in the Philippines November 2012 by NSWMC.

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Often, they perform their duties based on existing local programs and obtain new information on selected aspects by attending any available seminars and conferences.29

B. Key Problems and Opportunities in the SWM Sector 97. Low solid waste collection efficiency and poor waste disposal have contributed to environmental and health risks highlighted by ground water and surface pollution, and water borne diseases. These risks are related to poor dump site management and flooding, and unhygienic living conditions of the informal sector engaged in the recovery of recyclables in many towns and cities. Altogether, these resulted in expensive SWM systems that have persisted through the various crises that have taken place from year 2000 to the present. 98. This section discusses the background of the SWM sector investment program, highlighting trends in population growth and its distribution, urban economy, and poverty incidence, as well as the financial and institutional background and the enabling environment for public-private partnerships (PPPs). An analysis of key problems and opportunities in the SWM sector is undertaken. The section ends with an overview of lessons learned on SWM implementation.

1. Urban Economy and Competitiveness 99. Urban areas are engines of economic growth, accounting for over 75% of the Philippines’ GDP. CALABARZON including Metro Manila, Bulacan, and Pampanga contribute more than half of the total GDP. Since 2010, the economic growth has been strong. President Aquino’s administration has tackled corruption and set a fresh business environment in the Philippines. The GDP is expected to grow by 7% in 201330. The growth was fuelled by the robust performance of the services sector led by trade and real estate, rent and business activities, as well as substantial improvements in the manufacturing and construction sectors. According to ADB, the growth is expected to lose some momentum in 2014; however, the forecast will be about 6.1%.

2. Urban Planning 100. Theoretically, the Philippine urban planning system has stagnated during the last three decades. The Land Use Bill has been in the Philippine Congress since 199231. The bill should provide four major functional uses of land to guide the determination of physical framework plans. Specifically, the categories are (i) protection of land use; (ii) production of land use; (iii) settlements development; and (iv) infrastructure developments. The bill reflects directly to all urban infrastructure development. Investment in SWM and sanitation cannot be made in isolation from other urban infrastructure planning. This situation is not only hampering the performance of urban services, but also the competitiveness of the Philippines. The current administration has set a target for the Congress to approve the Land Use Act.

3. Environmental, Health, and Social Drivers 101. Incidence of water-borne diseases is closely linked to poor SWM and sanitation access. The absence of communal sewer systems in urban areas has meant that storm water

29 Solid Waste Management for LGUs (SWM4LGUs), GIZ, http://www.swm4lgus.net/download.php?id=4&sub=task1 30 Asian Development Outlook 2013 Update, Economic trends and prospects in developing Asia 31 Senate Bill 3091 or the NLUA is pending on third reading in the Senate, while House Bill 6545 or the National Land Use and Management Act passed third and final reading in the lower chamber in September 2012.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project drains are also frequently used for waste and wastewater disposal. Although septage is collected, generally by private collectors, there is little or no treatment due to the absence of appropriate facilities. Septage thus is dumped in an uncontrolled manner in waterways, dumpsites, or apicultural lands. Service providers are required by law to do wastewater treatment, but regulation and monitoring are inefficient; thus, investment is seldom undertaken and proper treatment is rare. There are clear health implications, especially in the incidence of water-borne diseases. The study conducted at Metro Manila’s main open dump in 1981 covering 750 waste pickers revealed that 40% had skin disease and 70% had upper respiratory ailments.32 In another study on child scavengers in the Smokey Mountain in Tondo, Manila, 98% of these pickers had elevated levels of parasitic infection. 102. On 14 October 2013, the Department of Health (DOH) reported the outbreak of leptospirosis in City in Province. The outbreak has caused the death toll of the disease to rise to 11. According to DOH, there are 631 cases of leptospirosis in Olongapo City. The outbreak hit Olongapo City after the massive flooding in September 2013. Most of the cases were caused by urine of infected animals, particularly rats. Specifically, leptospirosis has increased within the people in the vicinity of the dumpsite, since the flood water hit the dumpsite where there is a great number of rats. Rats are commonplace in dumpsites which are not properly compacted. 103. There are several environmental health issues that need to be addressed in dealing with SWM. Increasing public concern and sensitivity to environmental issues are driving this expanded agenda. These include:  health and environmental impacts of accumulated uncollected waste and clandestine disposal sites;  health and environmental impacts of bad and chaotic management of designated/authorized dump-sites;  unsustainable technologies and methodologies in managing dumpsites;  health and environmental impacts of solid waste facilities, including transfer, composting, and landfill facilities;  air emissions from waste collection and transfer vehicles;  special handling and disposal of hazardous wastes, including healthcare and industrial hazardous waste.  potential smoke from open burning, odors, insects, rodents, and gaseous emissions; and  landfill leachate and resulting water contamination and pollution. 104. Poverty is often perceived as a major concern in urban environment. However, environmental degradation poses greater concern when improving the well-being of the poor. This is a vicious cycle which can be broken only through environmentally sustainable and pro- poor urban policies and practices and their sincere implementation. SWM is one area for such policy and practice. 105. As per the report, Solid Waste Management in the World’s Cities,33 published by the Nairobi-based UN-HABITAT: “The MDGs were ratified by 189 heads of state at the United Nations Millennium Summit in September 2000 with the overall objective of halving world

32 Torres E. B., Subida R. D., and Rabuco L. B. 1991. The Profile of Child Scavengers in Smokey Mountain, Balut, Tondo, Manila.. of the Philippines of Public Health. 33 UN-HABITAT. 2010. Solid Waste Management in the World’s Cities.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project poverty by 2015. Improving solid waste management systems would contribute to achieving many of them, in spite of the fact that solid waste is never explicitly mentioned in the MDGs.” 106. All of the eight Millennium Development Goals (MDGs) are interconnected. Success or failure on any one will affect the achievement of the other goals. Environmental sustainability and poverty abatement interlink all the goals and would form the bulwark of the success of MDGs.

4. SWM Services Linked to Urban Environment Issues 107. There are several urban environmental issues linked to SWM. These include the risks of ground and surface water pollution, flooding, climate change and wastage of valuable land space in metropolitan areas. Each of said issues is individually discussed in the succeeding paragraphs. 108. Groundwater and surface water pollution. Local water utilities are mainly using groundwater resources to fulfill the growing water demand, however, poor quality water is often interrupting adequate supply. Poor SWM has resulted in contaminated drinking water and waterborne diseases, which remain a major public health concern. 109. Provision of adequate and good quality water and SWM are invariably linked34. Based on records of the NSWMC, there are at least 602 open dumpsites and 331 controlled dumpsites in the 17 regions of the Philippines. These dumpsites generally correspond to the collect-and- dump systems employed by most LGUs. These sites, including municipal solid wastes dumped next to waterways and other water bodies, generate leachate, which eventually infiltrates into the subsurface and recharge the shallow unconfined aquifer systems. The leachate may contain organic and inorganic components that can render the groundwater unfit for human consumption. The threat of groundwater contamination from leachate becomes more apparent if one considers that most dumpsites are situated in low-lying areas proximate to rivers or upstream section of perennial or intermittent waterways. 110. Typical examples of disposal sites include where leachate gradient is well above the La Mesa Dam and Rodriguez hence can contaminate downstream aquifer or surface water systems by way of infiltration into the banks of River; City, which has a large dumpsite on a nearby limestone sinkhole; and the LGUs in the floodplains of by way of direct infiltration into the permeable alluvial deposits. In Boracay, a substantial amount of organic waste has been literally buried in Yapac, Balabag and Monoc- Manoc for over five years. This will cause long-term contamination of the unconfined aquifer systems locally. 111. The lack of sufficient land for landfilling has created massive waste dumping on both sides of Laguna Lake. Dumping has started in the open water, which has direct connection to the main lake. The location of existing dumpsites or proposed areas for sanitary landfills needs to be evaluated with respect to potential impact on well fields, springs, or catchments serving as recharge areas for groundwater systems. As much as possible and where practicable, disposal facilities must not be located upstream of water sources. Where necessary, appropriate mitigating measures such as the use of liners, solid waste treatment systems, and regular

34 In La Trinidad, about 1,985 households use deep wells either for their own use or shared with other households. Some 272 households use shallow wells and 162 households use dug wells. Still, a big number of households totaling some 1,259 have level I water sources, i.e., directly from the rain, spring or rivers.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project monitoring must be implemented by the concerned LGU or agency. Local initiatives to protect the environment is a rising trend in many LGUs35 such as in Benguet. 112. Solid waste in a drainage system is causing frequent floods. Urban flooding intensifies on the combination of climate change, densification of urban cities, and poor management of storm water and surface runoff, and solid waste collection. Flooding will continue and will be aggravated without strong law enforcement to control informal settlements and indiscriminate dumping of solid waste to drainage and waterways. However, it also requires efficient waste collection and monitoring system from LGUs. In fact, there is no short-term solution for flood mitigation because in major cities, the storm water and drainage systems are all well undersized to convey current rainwater. 113. Climate Change. Solid waste disposal and wastewater are significant sources of methane (CH4). They are estimated to contribute about one-fifth of global anthropogenic methane emissions according to the International Energy Agency (IEA, 2005). Landfills and open dumps remain the dominant waste disposal options worldwide. In managed and unmanaged landfills, anaerobic degradation of organic material occurs, causing CH4 emissions. Landfill gas is about 50% to 60% methane with the remainder consisting of CO2 and traces of non-methane volatile organics, halogenated organics, and other compounds (IPCC, 2006). Incineration and open burning of wastes containing fossil carbon are the most important sources of CO2 emissions in the waste sector. 114. Solid waste is wasted energy and wasting space in the metropolitan areas. The National Climate Change Action Plan36 Priority No.6 includes (i) promotion and expansion of energy efficiency and conservation; (ii) development of sustainable and renewable energy; (iii) environmentally sustainable transport; and (iv) rehabilitation of energy systems infrastructures. Solid waste could provide substantial input to energy generation in the Philippines. It is anticipated that 600 MW37 can be generated from municipal waste with different technology applications such as biogas, bio-ethanol and bio-diesel from organic waste and refuse-derived fuel (RDF) for electricity production. However, most of technology applications require, in the beginning, substantial financial inputs and are, most of the time, technically complex to be operated by the municipalities. Private sector involvement is thereby necessary in implementing energy generation solutions for SWM.

5. Consistency with ADB’s Country Partnership Strategy and the Philippines Sector Policies and Strategies 115. ADB has committed funding for solid waste sector initiatives among other urban environment projects in the Philippines. The proposed Project is in line with ADB’s Philippine Country Partnership Strategy38 and the strategic thrust of ADB's urban operations in the Philippines. The operational strategy supports sustainable urban economic growth and development. ADB will align its future operations with three of the five elements of the strategy-- urban competitiveness, sustainable communities, and performance-oriented governance-- which call for economically viable, environmentally sustainable, and socially acceptable solutions for SWM.

35 http://balilisrc.org/pages/Monitor/monsys.html 36 National Climate Change Commission. Philippine Strategy on Climate Change Action Plan, 2011-2028. 37 PPTA 8115 presentation to EXECOM on June 23, 2013 38 The ADB Country Partnership Strategy 2011–2016 extends assistance to the key sectors that are expected to receive high priority under the Philippine Development Plan 2011−2016.

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116. The Philippine Development Plan 2011−2016 outlines the overall development policy guidelines of the government. It aims for inclusive growth that is rapid, sustained, creates jobs, and reduces poverty. Special attention is paid to infrastructure development using PPP schemes, governance, human development, and strengthening of public finance and of financial institutions. Reducing poverty and inequality is another important priority. Similarly, enhancing the business environment, especially for small and medium enterprises (SMEs), and improving their productivity are critical for inclusive growth. The importance of sustainable agriculture and fisheries is also highlighted by the medium-term development plan. 117. The Philippine Development Plan emphasizes equitable access to basic social services, such as education, healthcare, and housing as well as stronger social safety nets in the context of inclusive growth. Environment and natural resources as well as peace and security are also included in the development plan. Special attention is given to (i) environmental protection in connection with the continuing deterioration of biodiversity and natural resources, and (ii) unreliable power supply due to the slow pace of investments in power generation and maintenance, which is a major obstacle to growth. The proposed PSWMSP supports the plan’s strategic targets. 118. Competitiveness. Urban systems play a major role in the economic development of the country. Given the increasing global integration, the extent to which the cities that comprise an urban system can play this role depends on their competitiveness relative to other cities of the region and of the world. The Philippines’ strategy focuses on five main elements. Three out of the following five strategic elements are directly linked to improved sustainable SWM:  Improve national competitiveness by increasing productivity and efficiency of urban industrial regions. Build on existing strengths in manufacturing and producer services. Focus on export-oriented activities in core export areas (e.g., CALABARZON, Cebu, and ) which are potentially globally competitive.  Support the development of strategic clusters (SWM). Enhance the added value of existing clusters, support local enterprises, orient development planning, research, and data collection to clusters.  Increase Metro Manila’s attractiveness as a global service center and visitors destination by improving basic functions, addressing traffic congestion, mobility, pollution, etc., essentially taking steps to demonstrate that the city works efficiently.  Support information technology-enabled services to further enhance the country’s competitive advantage in the sector.  Support the tourism sector and its regional/urban-rural linkages.

6. Philippines Sector Policies and Legal Context of SWM 119. The 1987 Philippine Constitution contains state policies that highlight the concern of the government on solid waste and related issues. One provision (Article II, Section 16) mandates the state to protect and advance the right of the people to a balanced and healthy ecology in accord with the rhythm and harmony of nature. The other provision (Article XIII, Section 11) directs the government to adopt an integrated and comprehensive approach to health development, which shall endeavor to make essential goods, health, and other social services available to all people at affordable cost. 120. The Constitution (Article X, Section 13) likewise recognizes the role of LGUs in providing social services to the people and authorizes the LGUs to group themselves, consolidate, or coordinate their efforts, services, and resources for purposes commonly

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project beneficial to them in accordance with law. This constitutional mandate and the specific roles of the LGUs are emphasized in the LGC, specifically Section 3 which provides for the operative principles of decentralization. Section 16 or the “General Welfare Clause” empowers the LGUs to promote health and safety, to enhance the right of the people to a balanced ecology, and to preserve the comfort and convenience of their inhabitants. The code directs the national government agencies that implement projects and programs involved in the maintenance of ecological balance to consult with LGUs, non-government organizations (NGOs), and other sectors concerned and explain the goals and objectives of such project or program, its impact upon the people and the community in terms of environmental or ecological balance. The LGUs are also authorized to enter into joint ventures or linkages with people’s organizations and NGOs in promoting ecological balance. 121. The National Solid Waste Management Strategy 2011-2016 comprises eight components, namely: 1. Bridging Policy Gaps and Harmonizing Policies; 2. Social Marketing and Advocacy; 3. Sustainable SWM Financing Mechanisms; 4. Creating Economic Opportunities; 5. Support for Knowledge Management on Technology, Innovation, and Research; 6. Organizational Development and Enhancing Inter-agency Collaboration; 7. Compliance Monitoring, Enforcement, and Recognition; and 8. Cross-cutting Issues: Good SWM Governance, Caring for Vulnerable Groups, Reducing Disaster and Climate Change Risks. 122. Cross-cutting issues. These components are envisioned to address the identified strategic issues and gaps that hinder the smooth implementation of RA 9003 or the Ecological Solid Waste Management Act of 2000 and the National Solid Waste Management Framework that gives emphasis to waste avoidance, source reduction, reuse, recycling, and composting. 123. Prior to the enactment of RA 9003, several laws relating to the environment had been promulgated. Perhaps, the earliest legislation on waste management is the Commonwealth Act 383 enacted on 5 September 1938, which punished the dumping of refuse or waste matter or substances of any kind that may bring about the rise or filling in of river beds, or cause artificial alluvial formations. Foremost of the environmental laws is Presidential Decree 1152 or the Philippine Environmental Code (Title V) dealing with waste management, its enforcement, and guidelines. Another major piece of legislation is Presidential Decree 1586 that established the Environmental Impact Statement System (EISS). This law requires that all agencies and instrumentalities of the national government, including government-owned and controlled corporations as well as private corporations, firms and entities, must prepare an environmental impact statement for every proposed project and undertaking that significantly affects the quality of the environment. DENR Administrative Order (DAO) 03-30: PEIS Implementation Guidelines and Procedures, was issued thereafter. 124. Also worth noting is Presidential Proclamation 2146 which declares certain areas and projects as environmentally critical and within the scope of the EISS. Another relevant decree is Presidential Decree 825 issued in 1975 penalizing improper disposal of garbage and other forms of uncleanness. The Code on Sanitation (PD 856) promulgated on 23 December 1975 contains provisions of refuse disposals and industrial hygiene. 125. On 10 June 1987, Executive Order 192 that reorganized the DENR and created the EMB was issued. The National Environmental Protection Council, National Pollution Control

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Commission (NPCC), and the Environmental Center of the Philippines were abolished and their powers and functions were integrated into the EMB. EMB is headed by a director who advises the secretary of DENR on matters relating to environmental management, conservation, and pollution control. 126. On 19 October 1993, a Presidential Task Force on Waste Management was set up and a Project Management Office on Solid Waste Management was created under the said task force, pursuant to DAO 98-49. 127. RA 8749: Philippine Clean Air Act and its Implementing Rules and Regulations (IRR) - a comprehensive air pollution control policy; intends to apply air quality management in all sources in order to implement the abatement and control of air pollution.

128. The Clean Air Act outlines the government’s measures to reduce air pollution and incorporate environmental protection into its development plans. It relies heavily on the “polluter- pays” principle and other market-based instruments to promote self-regulation among the population. It sets emission standards for all motor vehicles and issues registration only upon demonstration of compliance. It also issues pollutant limitations for industry. Polluting vehicles and industrial processes must pay a charge. Any individual, enterprise, corporation, or group that installed pollution control devices or retrofitted its existing facilities to comply with the emissions standards in the act can apply for tax incentives of accelerated depreciation, deductibility of research and development (R&D) expenditures, or tax credits on the value added tax (VAT) of the equipment, and is exempt from real property tax on the machinery or equipment used to comply. It also establishes an R&D program for air pollution reduction mechanisms and technologies. It bans incineration and smoking in public places. At the local and municipal levels, governments are allowed to set emission quotas by pollution source, and the development of recycling programs is encouraged. 129. The Clean Air Act provides incentives to LGUs, enterprises, private entities, and individuals to develop or undertake efforts that would result to effective air quality management and pollution abatement. Specifically, it encourages efforts on ERF, cleaner production, and adoption of technologies that are not combusting or burning carbon-based materials. 130. RA 9275: Philippine Clean Water Act and its IRR - a comprehensive water pollution control policy; intends to apply water quality management in all water bodies in order to implement the abatement and control of pollution from land-based sources. 131. Related laws and issuances were also issued:  DENR Administrative Order (DAO) 03-30: PEIS Implementation Guidelines and Procedures  PD 1067: Water Code of the Philippines  RA 6969: Philippine Toxic Substances and Hazardous and Nuclear Waste Act and its IRR - mandates the regulation, restriction, or prohibition of the importation, manufacture, processing, sale, distribution, use, and disposal of chemical substances and mixtures that present unreasonable risk and/or injury to health and the environment  RA 9512: Environmental Awareness and Education Act of 2008 - promotes environmental awareness through environmental education; integrates environmental education into the school curricula at all levels of public and private schools, barangay day care and pre-school, and non-formal, vocational, and indigenous learning.

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 RA 9729: Climate Change Act of 2009 - declares as a Philippine policy the adoption of the ultimate objective of the UNFCC convention, which is the stabilization of greenhouse gas concentration in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system  Executive Order (EO) No. 774 issued on 26 December 2008 reorganized the Presidential Task Force on Climate Change (PTFCC); Executive Order (EO) No. 785 issued on 26 February 2009 mandates the Presidential Task Force on Climate Change to develop the National Climate Change Framework  RA 10121 - The Philippine Disaster Risk Reduction and Management Act of 2010  RA 10068: Organic Agriculture Act of 2010 - establishes a comprehensive organic farming program that includes incentives for farmers engaged in the production of agricultural crops free from harmful chemical pesticides and fertilizers  P.D. No. 1151, Philippine Environmental Policy of 1977  RA 4850: Laguna Lake Development Authority Act  RA 7611: Strategic Environmental Plan for Act  RA 7942: Philippine Mining Act  RA 8371: Indigenous Peoples Rights Act  RA 9593: Renewable Energy Act of 2008  RA 9637: Philippine Biofuels Act  A.M. No. 09-6-8-SC Rules of Procedure for Environmental Cases issued by the Supreme Court  Kyoto Protocol, Basel Convention, and Stockholm Convention on Persistent Organic Pollutants  DENR administrative orders, memorandum circulars as well as joint orders and circulars with other departments and agencies of the government 132. RA 9003 and its IRR are the current governing laws and rules on SWM. It created the NSWMC composed of representatives from 14 government departments and agencies and three private sectors, and provided with a secretariat support by the DENR-EMB. The secretariat is headed by an executive director nominated by the commission members and appointed by the chair. RA 9003 likewise established the National Ecology Center tasked to facilitate training and education in the integrated ecological SWM. 133. The policies laid down in RA 9003 are grouped into four as follows:  source reduction (avoidance) and minimization of waste generated at source;  reuse, recycling, and resource recovery of wastes at the barangay level;  efficient collection, proper transfer, and transport of wastes by city or municipality; and  efficient management of residuals and of final disposal sites and/or any other related technologies for the destruction/reuse of residuals. 134. The law mandates the LGUs to accomplish the following:  creation of an SWM board at the city/municipal and provincial levels;  creation of an SWM committee at the barangay level;  submission of a 10-year SWM plan at the city/municipal levels;

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 establishment of MRF per barangay or cluster of barangays and city/municipal centralized MRF;  closure of open dumpsites and their conversion into controlled dumpsites by 2004 at the city/municipal levels; and  banning of controlled dumpsites by 2006 at the city/municipal levels.

7. LGU Finance 135. Overall LGU Finance. Local government finance is governed by the relevant provisions of the LGC. The LGC mandates the devolution of functions of the national government in agriculture, health, education, environment, social welfare and development, including the planning and development of basic infrastructure. In addition, each LGU is entitled to a share in the proceeds of the national internal revenue taxes collected and the utilization and development of national wealth within their respective areas based on pre-determined sharing formula. LGUs are also empowered to directly avail of credit facilities to finance local infrastructure and other socio-economic development projects in accordance with the approved local development plan and public investment program. LGUs shall spend local government funds solely for public purposes and no money shall be paid out of the local treasury except in pursuance of an appropriations ordinance or law. 136. Cities are better off on taxation powers compared to other LGUs and can impose all taxes assigned under the LGC. Both highly urbanized and independent component cities retain all their tax receipts. Municipalities can impose the same taxes but tend to impose lesser and at lower rates. Provinces are neither allowed to collect business, real property, nor community taxes, which are among the more lucrative receipts, but do get a share in the receipts of those collected by municipalities and component cities. 137. Local revenue sources. Local sources of revenue are categorized into tax revenue and non-tax revenue. Tax revenue consists of real property tax, business tax, and other local taxes. Examples of other local taxes are the tax on transfer of real property ownership, professional tax, and community tax. Non-tax revenue includes regulatory fees, service/user charges like garbage fee, income from own economic enterprise like waterworks system or markets, and other non-tax revenues like interest and dividend income. 138. For 2011, data from the Bureau of Local Government Finance (BLGF) of the Department of Finance revealed that local revenue sources contributed 30% of the LGUs’ total income. Tax revenue accounted for 20% while non-tax revenue contributed 10%.39 There are no readily available data on the overall amount of garbage fees collected by the LGUs in 2011 as they are not reported separately in the BLGF regular financial reporting system. 139. External revenue sources. Local government external sources of revenue come in the form of (i) internal revenue allotment (IRA); (ii) shares from national tax collection; (iii) inter- local transfer, which is a subsidy received from other LGUs; and (iv) extraordinary income/receipts, which generally consist of grants, donations, and aids. Examples of shares from national tax collection are share in the proceeds from the utilization and development of national wealth within their respective locality, share from excise tax, and share from the Philippine Gaming Corporation or Philippine Charity Sweepstakes Office (lotto).

39 BLGF. 2011. Accomplishment Report. Manila.

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140. Operating Profit. For 2011, external revenue sources accounted for 70% of the LGUs’ total income. IRA and other shares from national tax collection contributed 65%, inter-local transfers accounted for 4%, and extraordinary income was at 1%.40 141. Table 2.2 below shows the details of the LGU financial performance in 2009−2011. Table 2.2 LGUs Financial Performance 2009−2011 (million pesos) Item 2009 2010 2011 Income 284,366 329,554 355,732 Local sources (tax and non-tax) 91,993 98,490 106,272 Share from national taxes 183,167 213,937 230,851 Others (e.g., extra-ordinary receipts/grants, inter-local transfers) 9,206 17,128 18,609 Operating expenditures 252,522 295,451 321,008 Surplus 31,844 34,103 34,724

Source: BLGF. 2011. Accomplishment Report. 142. Key issues. Since the enactment of the LGC, most LGUs, particularly those in the lower income classes, have been heavily dependent on their share in national taxes. From the LGUs’ perspective, however, their share in national taxes is inadequate to meet the budgetary requirements of the devolved functions, especially health services, and the demands of decentralization.41 143. LGUs need to have greater awareness and improve their understanding of their local taxing and revenue-raising powers to broaden their base of locally-generated resources. Valuations for real property taxation are considered low while collection efficiency of real property tax and business tax remains below acceptable level.42 Most LGUs are still unwilling to levy their constituents the right level of fees for the delivery of municipal services such as garbage collection. 144. LGU access to the resources of private financial institutions is still limited. While some of these institutions have been investing in LGU projects indirectly by purchasing LGU bonds,43 most of them are not yet ready to take a direct credit risk by lending directly to LGUs. Private banks are not accredited as depository banks for LGUs and do not have the same arrangement as government financial institutions in having access to the IRA of the LGUs who fail to service their debts promptly. 145. Private sector participation in the delivery of municipal services through build-operate- transfer (BOT) and other similar schemes is still quite limited. The national government should identify measures to make BOT or similar arrangements more attractive for both LGUs and private sector proponents. Wider dissemination and understanding among LGUs of the use of private sector resources through BOT and other similar schemes is needed.

40 Ibid. 41 M.S. Sarmiento. 2006. LGU Perspectives on Local Government Finance Issues. Consultation Workshop of the Working Group on Decentralization and Local Government under the Philippine Development Forum. City. 42Roberto Tan. 2006. Progress Report and Proposed 2006 Action Program on Local Government Finance. Consultation Workshop of the Working Group on Decentralization and Local Government under the Philippine Development Forum. Pasig City. 43 These are guaranteed by the LGU Guarantee Corporation.

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8. Public-Private Partnerships 146. The private sector plays a significant role in the government’s pursuit of bridging the gaps in the economy. The PPP program has been the vehicle for private sector participation in the provision of infrastructure services. In 1986, the private sector played a leading role in national development when the government undertook massive divestment, disposition, and sale of all business-related assets. This was later formalized in 1990 when the then newly- restored Congress enacted RA 6957, “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for other purposes, better known as the “Build-Operate-Transfer (BOT) Law.” After the successful implementation of national projects, the BOT Law was amended in 1994 through the enactment of RA 7718 or An Act Amending Certain Sections of RA 6957. The Philippine BOT Law and its subsequent amendments have provided national implementing agencies and LGUs with a new avenue for financing and fast-tracking the implementation of infrastructure and development projects. The legal and regulatory framework for PPP expanded its coverage to include non- traditional infrastructure sectors such as health, education, information and communications technology, and other social infrastructure and development projects.44 147. As provided in the amended BOT Law and its IRR, collaborative partnerships between the government and the private sector can be made possible through a broad spectrum of modalities. The BOT Law identifies a number of variants and includes a catch-all provision for other variants that may be identified later. Table 2.3 below summarizes the general features of the different contractual arrangements identified and supported by existing Philippine laws, rules and regulations, and delineates the respective roles of government and the private proponent under each PPP modality. The table also shows the basic differences among the three PPP modes. Table 2.3 General Features and Differences of PPP Modalities Government Issue BOT Joint Venture Procurement Reform Act Purpose Development of Joint undertaking of an Procurement of goods and infrastructure/ project enterprise services within the budget through project finance and cycle of the government other financing modes agency

Financing Financed by private sector Jointly financed by Financed by public sector public and private sector

Term Long term Short term Short term Ownership of the Ownership stays with Ownership allowed to be Ownership of procured project government turned over to private goods transferred from sector private sector to public sector Fees Fees may be adjusted No prescribed fees Fixed fees or price according to predetermined parametric formula Price escalation Allows price escalation ----- Prohibits price escalation

44 PPP Center. 2012. Developing Public Private Partnerships in Local Infrastructure and Development Projects, A PPP Manual for LGUs (Volume 1: Understanding PPP Concepts and Framework). Quezon City.

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Payment / proceeds Operator or contractor Proceeds are shared by Procuring government remits fees to public sector public sector and private agency pays to private sector proportionate to sector entity /seller ownership share

Approval limit/ P300 million-NEDA/ICC Head of agency P500 million, Government authority Procurement Policy Board

New concept / Required if unsolicited Not required Not required technology mode Incentives Provides incentives for No incentives Prohibits incentives large-capital projects Application Applies to all government Limited to specified Applies to all government entities government entities entities Income Fees Income/ dividends None

Contract Approval per 30 days Internal rules 30 days Overall bidding period 250-410 days 75-165 days 200 days Source: PPTA consultant.

9. Lessons Learned 148. ADB experience in high-level loan cancellations. Almost all ADB-funded45 urban projects have had loan cancellations largely because of the inability to disburse funds as scheduled. Weak project design, inflexibility during implementation, and incorrect targeting appear to be the usual reasons why many previous ADB-funded urban projects have not been completed on time. Moreover, the local project ownership is weak, capacity of participating governments is low, and there has been little continuity or follow through. 149. According to ADB, other development partners or multilateral agencies involved in the urban sector have similar experience in loan cancellation. Expensive non-revenue generating infrastructure development such as sanitation and SWM are hard to sell after the municipal election. Consumers’ willingness to pay and municipal borrowing capacity are low, which was recognized in the Clark and workshops in 2013. IRA allotment will be used in revenue generating infrastructure rather than in SWM. LGUs have learned over the years under grant financing projects that new innovative technologies and financing arrangements are needed to force SWM development in LGUs. See Appendix 3 on external assistance. 150. Ad-hoc and short-term urban management and development. SWM and flood control projects have been at the top of the donor agencies’ development aid in the last two decades resulting in a scenario where many institutions are involved in project and program implementation characterized by a lack of proper coordination, and overlapping roles and responsibilities. For example, the DENR, Department of Interior and Local Government (DILG), and Department of Public Works and Highways (DPWH) implement SWM, among others. At the local level, the local government election, which is held at a three-year interval, also complicates development efforts. Non-revenue generation project such as sanitation and SWM projects are commonly developed on an ad-hoc basis focusing on equipment. The LGU’s three-year management cycle does not support strategic, longer-term development. 151. Timing has become an important element in project preparation. The short-term (three years) interval in the local election may change political situation and ultimately lead to the

45 PIH Urban ASR. August 2010.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project cancellation of the subproject. Assessing support from local must take into account the three-year election term of local officials. When investment proposals have been included in the local development plan, the Sanggunian Bayan also needs to approve it, to secure longer-term commitments to the project.

10. LGU’s Challenges and Opportunities 152. Responsibilities without resources and capacities. Local governments are at the forefront of meeting the challenges of urbanization. The LGC mandates LGUs to plan, manage, and implement local development, but many do not have the resources to carry out these responsibilities. Most cities, municipalities, and provinces lack basic guidelines and reliable data system for strategic SWM planning and operation. As a basic principle to minimize the cost of the services it requires a separate account for SWM. Further, poor engagement of the private sector with new technology applications have meant that investments in SWM services have not been able to respond properly to the increased and changed demand on services and infrastructure. 153. Operationally, SWM is flavored with an ad hoc planning without a strategic thinking of long-term solution. The key problem is the LGUs’ limited capacity for SWM financing and law enforcement. Situation has been aggravated by adopting highly technical WM development policy, plans, strategies, and programs such as RA 9003 and Clean Air Act, which are way beyond the major LGUs’ capacity to comply. As a reference, only 3.4% of the LGUs have approved SWM plans. 154. LGUs’ SWM operation is further aggravated, despite planning efforts and guiding acts, by other factors such as lack of political will at the national and local levels, technical capacity and poor sector coordination, apparent lack of sites for SWM facilities, not-in-my-backyard mentality, and absence of legal mechanisms for the use of new technologies46, among others.

11. Need for SWM Infrastructure and Services 155. The NSWMS was formulated in 2009. It recommends limited solutions for SWM for highly urbanized cities and municipalities. In the present collect-and-dump system in the Philippines, the basic infrastructures currently used are sanitary landfills, open dumps, MRFs and a few transfer stations, which are generally supported by collection vehicles operated either by the LGUs or contracted to the private sector as practiced in big cities. However, considerable achievements have been made in waste reduction, recycling and material recovery in Metro Manila during the past few years. 156. The 13 years that passed since the passage of the Ecological Solid Waste Management Act (RA 9003) have been marked by the following SWM statistics:  The NSWMC has received 557 out of the required 1,635 municipal SWM plans. Of these, 43 have been approved.  Waste segregation at source and segregated waste collection are implemented only in a few LGUs and not on a nationwide scale.  Solid waste collection is largely limited to the urban sector of the population and reportedly varies from 15% to 90% in terms of efficiency. According to the data given by

46 Some aspects of certification by the Department of Science and Technology need to be reviewed to ensure good technologies are not blocked.

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MMDA the total waste diversion is 41% in Metro Manila, and 38% outside of Metro Manila. Nationwide average of waste diversion is 26%47 according to NSWMC.  A total of 8,843 MRFs have been established. This number represents 21% of the required 42,027 for all the barangays in the country. Most of these established MRFs are used as storage areas for recyclables and for other purposes and not for processing solid waste. Actual capacities of the MRF are not known.  The required closure of all dumpsites and controlled dumpsites has not been attained and strictly enforced. Currently, there are 602 open dumps and 321 controlled dumps in the country.  Fifty-five SLFs of different categories have been established. The nature of operation of these facilities is not known. Of these, less than ten can be considered as regional disposal facilities while the rest cater to the requirements of small municipalities. Obviously, the total capacities of these landfills cannot accommodate the waste generated by the entire country. 157. Missing technical data. Comprehensive data on these infrastructures and the extent of collection services are not available at the national level. While the NSWMC has a list of the SLFs (70+), MRFs (8,000+) and dumpsites (600+), data on design and operating capacities, remaining life, inputs and outputs, specific locations and spatial distribution are not available. There are no official records of the number and capacities of transfer stations. On top of that, materials input and output of the existing infrastructures are either not known or not properly recorded. Currently EMB is developing nationwide data bank, which will also get support from the proposed PSWMSP. 158. Poor monitoring. Collection in big cities is reported at 90% coverage while those at the towns and smaller cities reportedly vary from 30% to 70%. In the case of Boracay and La Trinidad, collection is estimated at 90%, while Janiuay collects only 17% of its waste. There is no established collection system in Del Carmen and the whole island of Siargao. In general, collection in areas outside of big cities and towns is limited to the urban barangays. 159. The national and locally-based agencies do not have an estimate of the mass balance of the existing system in terms of updated waste generation, rate of collection, diversion, composting, recycling, open dumping, landfilling, and wastes which are unaccounted for. 160. Fast growing population and widening SWM infrastructure gap. Annual population growth from 1999 to 2013 has been at an average of 1.62 million during the past 15 years. This will require some $2.9 billion48 to satisfy the existing shortfalls in the delivery of SWM services for 24.3 million people. During the same period, LGUs have built new facilities with a total worth of $1 billion according to the statistics of NSWMC. This, however, is only 32% of the requirement to fill the gap. In addition, replacement or reconstruction of SWM facilities for the remaining 76.5 million people must be in the pipeline. According to NSWMC, SLFs with a total size of 542 hectares (ha) are now under construction and these can cover the waste of 5.5 million people (see Annex 5, Existing SLF Sites). The construction of SLFs takes more or less one year with the state of the art technology; thus, over the next 15 years, LGUs have to invest in SLFs (550 ha) with a total of $0.83 billion every year to accommodate all residues in

47 The Philippine Development Plan 2011- 2016 has set waste diversion goal to 50%. 48 Calculation is taking to account following a) waste diversion 30% b) 15cm soil cover per day, c) SFL life span 15 year d) 1.64 million population with waste generation 0.35kg/day/capita requires an 4ha cell constriction every year, and e) costing: land value $0.8million/ha and construction of SLF $1.1/ha

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project the SLFs. Not-in-my-backyard mentality and land availability are the main issues regarding establishment of new SWM facilities. 161. There is an urgent call for LGUs to change direction in respect to SWM. After 13 years of experience with RA 9003, there are more questions than answers on RA 9003 as a solution for SWM problems. Despite an average of 42% waste diversion, Metro Manila still dumps mixed waste to its dumping sites in , San Mateo, and Rodriquez. Most of the recently built SLFs and MRFs have been turned into open dumps such as the MRFs in Boracay49 and many of LISCOP50 sites, including KfW-managed and developed SLFs51, among others. It is a fact that SWM requires hard commitment by the LGUs for better management of the system. Successful implementation does not secure sustainable SWM system at all, which is one of the justifications for the adoption of PPP in municipal SWM. It is a well-known fact that 3Rs (reduce, reuse and recycle) are the key elements in SWM, but it may not be enough to manage bio-waste and residuals, which consist of 60% of waste. 162. An alternative. European Union states such as Germany, the Netherlands, Sweden, Denmark, Belgium and Austria have well-developed policy for recycling. This policy can be combined with a policy to reduce landfilling to less than 10%52 of the waste and to use residual waste to produce energy. In these countries, WTE is not competing against recycling; rather, it complements the policy that reduces disposal to the minimum. 163. How do LGUs fulfill their mandates on SWM? According to the estimates of the PPTA 8115 study, over $2.9 billion will be required to satisfy the existing shortfalls in the delivery of SWM services. Another $12.4 billion will be required to construct new SLFs and to expand existing services by 2025. As a conclusion, the infrastructure gap is so massive that it is self-evident that the Philippines dispose off more waste than ever before to open dumpsites53, rivers and lakes. Annex 4 shows the NSWMC statistics of open and controlled dumpsites and SLFs. Figure 2.1 below presents ESWM compliance in 2012.

49 PPTA Malay/Boracay SPAR report December 31, 2013. 50 Monitoring and Evaluation Report of WB Laguna De Bay Institutional Strengthening and Community Participation Project (LISCOP) dated on 22 March 2013; (i) Poor perforce in SWM components; (i) According to the Report after one-year operation already 75% of MRFs are non operational due to the lack of technical capability, and poor quality of equipment, or/and MRF sites are bailing up waste and recyclables turning sites to open dumps. Similarly, only one SLF located in Municipality is operational from KfW support to the Philippines SWM. 51 PPTA fact finding mission to Bais Municipality. 52 Source: Eurostat 53 NSWMC: 923 open or controlled dumpsites

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Figure 2.1: ESWM Compliance in 2012

Open Dumpsites Controlled Disposal Sites Sanitary Landfills Source: NSWMC. 164. Obviously, there is a big gap in the required SWM infrastructures and services which needs to be addressed immediately.

C. Road Map for a New SWM Framework 165. For several decades, the Government of the Philippines through the LGUs has made huge investments in infrastructure to support SWM services through construction of disposal and waste processing facilities, acquisition of collection vehicles, and contracting out collection services and subsidies for disposal. Evidently, the role oof adequate solid waste infrastructure in maintaining a liveable urban environment has been recognized. This vital component though requires alignment of technology cost, improved efficiency and governance, and better overall planning. Without new technology adaptation, regressive subsidies on hauling and dumping will continue and drain resources from infrastructure development, maintenance and expansion. Without improved efficiency and governance, the provision of quality of services will continue to decline and invested resources will be wasted. Without better planning, the resources that are available could and will continue to be misallocated without attaining the intended economic returns. 166. The proposed SWM framework is intended to guide the national government’s efforts in providing infrastructure for improving the performance and efficiency of SWM. It focuses on reduction of the massive infrastructure gap in SWM through the use of appropriate WTE technology along with compliance with RA 9003 and increased participation of the private sector. The following chapters describe the main strategic targets, rationale, principles, challenges, opportunities and benefits of the SWM framework.

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1. Key Strategies of the SWM Roadmap 167. Key strategy targets. These include (i) reduction of cost of SWM implementation and operation; (ii) improvement of urban environmental conditions; (iii) creation of employment opportunities and economic development through energy generation; (iv) scaling up of benefits such as service level, public health, and well-being of the people in the participating LGUs; and (v) reduction of global CO2 emissions. 168. Rationale. The strategic framework is strongly anchored on the strict and sustained enforcement of RA 9003, Clean Air Act, Waters Act, and Climate Change Act. 169. Principles. The main difference compared to existing SWM policy and programs is the utilization of residuals for power generation instead of disposing them off to landfills. The conventional SWM hierarchy consisting of waste minimization, source reduction, improved waste collection (segregated collection), recycling, composting and disposal of residuals will now include efficient resource and energy recovery from residuals and emission reduction using new WTE technology applications (Figure 2.1).

Reduction

Reuse

Recycling

Resource Recovery To SLF 15%{ Gasification MRF 8% Landfill Thermal Treatment 7%

Source: PPTA consultant. Figure 2.1 Waste Hierarchy

170. Challenges. The new implementation framework for SWM will be a driver of change for a sustainable SWM. The basic principle is to reduce SWM costs and stimulate economic activities. Therefore, LGUs would be better off to take full advantage of the new technology development and urbanization process, rather than restrict the rising opportunities. To ensure that solid waste infrastructure improve urban environment development, the following challenges have to be taken into account: (i) maximize the favourable economic environment to implement reforms in the SWM framework; (ii) create positive impact of economic growth on human development and employment within SWM; and (iii) expedite development of physical, institutional, and social infrastructure such as PPP and good governance in support of meeting the challenges.

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2. Paradigm Shift in Solid Waste Management 171. In 2013, it is estimated that the municipalities and cities of the Philippines collectively generated 44,000 tons of waste per day. About 32,300 tons/day is collected. The distribution of generated waste among the LGUs is shown in Table 2.4.

172. The distribution of generated waste among LGUs Table 2.4: Distribution of provides an indication on how this sector can be managed. Generated Waste Different approaches need to be taken for towns or cluster of towns with low waste generation and for cities or large Waste Generation No. of municipalities with high waste generation rates. Obviously, Rate (tpd) LGUs MRFs and SLFs and the current waste management 1 to 3 166 approaches and practices cannot adequately handle this amount of waste, which will grow at a faster rate in the next 4 to 6 251 20 years and beyond. 7 to 8 193 173. New technologies must be considered and applied 9 to 10 147 progressively if appropriate waste management is to be attained. In many European and Asian countries thermal 11 to 12 133 methods have been successfully used in combination with 13 to 15 121 basic SWM practices. Waste segregation at source, separate 16 to 25 238 collection, residual processing with MRF and/or further waste reduction with composting and digesting technologies, 26 to 50 255 among others, and finally by thermal treatment of left over 51 to 100 72 carbon based material. Landfilling varies from 10% to 20% depends on public interest in waste minimization and waste 101 to 200 33 processing technology. 201 to 400 12 174. A new target of 15% landfilling has been estimated > 400 13 based on measures to reduce waste that cannot be recycled. Source: PPTA consultant. To achieve this, recycling level should consistently exceed 45%, RA 9003 should be enforced, and WTE technology must be employed. 175. As a reference, the accomplishment report of the Metropolitan Manila Development Authority (MMDA) as of August 2013 reported that a total of 1,166 out of the 1,705 barangays in the National Capital Region (NCR), or about 62.7% are implementing separate collections to compel wastes segregation. The percentage distribution of the barangays in the different LGUs of the NCR implementing separate collection is summarized below. Table 2.5 presents current waste diversion in NCR and highlights the difficulty of attaining the 15% landfilling level without the use of WTE technology.  100% separate collection - , Navotas, Paranaque, Marikina, Pasig, and Valenzuela  50-90% separate collection - City, San Juan, , , Las Pinas, Quezon City, , and Manila  37% or less separate collection - , Pateros, and 176. Table 2.5 below demonstrates current waste diversion in NCR and highlights the difficulty of attaining the 15% landfilling level without the use of WTE technology.

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Table 2.5 Waste Diversion Data in NCR

Diversion Diversion LGU LGU Rate,% Rate,% Marikina 2 Navotas 35 Quezon City 38 Pasay 59 Makati 56 Caloocan 35 Malabon 30 Manila 58 San Juan 32 Paranaque 30 Muntinlupa 37 Mandaluyong 35 Las Pinas 36 Taguig 37 Valenzuela 46 Pateros 19 Pasig 36 Source: MMDA. 177. As an example, the Project Preparatory Technical Assistance (PPTA) study established that the inert material percentages vary in municipal solid waste from 4.91% in La Trinidad to 12% in Del Carmen. In five cities in Metro Manila, percentages of fines vary from 2.2% to 6.7%. Modern thermal treatment facility processes nearly all carbon-based waste. Residue accounts for about 5%-7%, which can be used as a construction material base or disposed off to landfill safety. With this perspective, it can be anticipated that 15% landfilling is achievable thereby extending the existing capacity of SLF five to seven folds. 178. Overall waste management issues relate to pollution control, economic, infrastructure and policy issues; institutional coordination, management and technical capacity; and public and private financing needs and arrangements. 179. DENR’s future role is to build an enabling environment, overseeing and guiding strategic infrastructures and to create the right kind of incentives to support private sector involvement in SWM. 180. The Proposed SWM Framework (Table 2.6) and the corresponding action plan are presented below. As indicated, sector practices and technologies can be applied to the Philippines, which link RA 9003 compliance with use of technologies. The municipal LGUs were classified under three tiers based on the collected waste54 and method of disposal and technology to be applied. Each LGU will have a guiding framework which forms the basis for the appropriate methods to be used in waste management. 181. All tiers will require compliance with RA 9003, such as waste segregation at source, segregated and efficient waste collection and diversion, and the practice of 3Rs (reduce, reuse and recycle). The basic institutional set up for SWM must be present in all tiers, i.e. personnel and funds for collection, diversion, processing and treatment and disposal headed by the Municipal Environment and Natural Resources Officer (MENRO), or its equivalent officer in the LGU.

54 Population forecast by 2013, nominal waste generation per capita, and collection efficiency.

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3. Proposed Solid Waste Management Framework Tier 1:  Tier 1 includes 1,028 LGUs collecting waste within a range of 1 to 11 tons per day (tpd), assuming a range of 15% to 67% collection. The main framework is basic compliance with RA 9003. These LGUs have population ranging from 12,000 to 30,000 and have financial limitations and technical capacities. The SWM approach is backyard composting or centralized fully manual MRFs and disposal of residual waste in Category 1 sanitary landfills.

 Tier 1 LGUs can primarily use only their internal revenue allotment (IRA) to finance infrastructure projects. Projects are generally very small and therefore local banks have best opportunity to facilitate SWM improvement in Tier 1. Also, local and international nongovernment organizations (NGOs) and the United Nations Development Programme (UNDP) can provide technical assistance for basic SWM practices. The estimated required investment for SWM for Tier 1 is about $0.4 billion over the next 15 years, Table 2.6.

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Source: PPTA Consultant

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Tier 2: 182. Tier 2 includes 555 LGUs collecting waste within a range of 12 to 150 tpd, assuming a collection range of 67% to 87%.  Tier 2 consists of LGUs near major population or economic centres whose economy is driven by a combination of agriculture, trading and some industries. These LGUs still cover significant tracts of land, a large part of which have been converted for purposes other than agriculture. The new SWM framework can support substantially the local economy and bring good health and environmental benefits

 The SWM framework is resource recovery, and includes 555 LGUs having current collection waste from 12 to 73 tpd. These LGUs have a population ranging from 50,000 to 300,000. The recommended SWM approach is centralized semi-automated MRFs linked to small capacity WTE plants. The LGUs need to cluster to shift to the WTE level to attain the required amount of waste for power generation. Operation of the WTE will be contracted to the private sector which has the technology and experience in running these types of power plants. Otherwise, these LGUs can initially band together and comply with basic RA 9003 requirements until such time that the collection reaches the required minimum.

 About 16 million people (17%) do not have an access to electricity in the Philippines. Reliable electricity is in the Central Luzon, but in many parts of service level is very poor.55 WTE could play a vital role to improve local electricity supply. Tier 2 WTE with plant capacities of 0.5 MW to 1.5 MW would provide additional electricity for 214 LGUs with a total population of 2 million, or about 500,000 households.

 Increasing access to reliable modern energy services using clean energy is directly linked to lighting for homes and schools, better health services, increasing in small and medium-sized enterprises with income-generating opportunities. WTE alone provides working opportunities for 8,500 people. LGUs, communities, students and households will benefit primarily from improved lighting and communications technologies connecting them to the rest of the world. This scale-up of WTE would achieve annual emission reductions of around 2.5 million tons of CO2. Cost estimate of WTE component is $1.2 billion. In addition, SLF construction will cost $340 million. Tier 2 provides international donors such ADB, WB and JICA an appropriate window for SWM improvement. The estimated required investment on SWM for Tier 2 is U$3.1 billion over the next 15 years.

183. All in all, 555 LGUs under Tier 2 and the 11 LGUs previously selected by the PPTA (Table 2.7) have been targeted for the next phase of the PSWMS project. These LGUs have been evaluated using the following criterion: minimum waste collection ≥ 50 tpd, which is needed to sustain the operation of a WTE facility. The target LGU can stand alone, or serve as

55According to the consultant report under TA-7781 (PHI): Rural Community-Based Renewable Energy Development in Mindanao, only 10% of the people in the Autonomous Region of Muslim Mindanao has reliable electricity supply.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project the core of a cluster of contiguous towns or cities. The selection process and the selected LGUs or LGU clusters are presented in Annex 2.

Table 2.7 LGUs Originally Shortlisted by the PPTA Team for the Pilot Study No. Feature Region Urban area with large population and potential 1 CAR for clustering 2 Dumaguete City Urban area with potential for clustering 7 3 – Baler Small LGU cluster 3 4 Tagaytay Urban area with potential for clustering 4A 5 Albuquerque Cluster of small towns and one big urban area 7 6 Carmen – Dagohoy Small LGU cluster 7 7 – Naujan Small LGU cluster 4B 8 Talavera Medium LGU with potential for clustering 3 9 Small cluster of LGUs in an island 10 10 Small town with potential for clustering 1 11 Lapu-Lapu Urban area where technology will be employed 7 Source: PPTA Consultant. TIER 3 i. Public-Private Partnership 184. SWM projects under PPP arrangements could be implemented by individual LGUs or cluster LGUs as long as the system is economical to operate. Clustering of LGUs under provincial or district arrangements could provide the best opportunity for sustainable SWM. PPTA experience from Siargao Island Based Cluster was initiated largely through the efforts of the . The core of the Janiuay SWM cluster corresponds to the LGUs of the 3rd district of Iloilo. The success of these upcoming clusters is dependent on the effectiveness of the collection system and waste delivery system that will be implemented by the participating LGUs. 185. SWM improvement in CALABARZON, including Bulacan and Pampanga, is important. The Southern Luzon economic hub accounts for over 70% of the country’s GDP. Its competitiveness is vital in local, and moreover, international economies. Several factors affect these areas’ competitiveness and decision-making related to future investments to include economic strength, human capital, institutional effectiveness, financial maturity, global appeal, physical capital, social and cultural character and environment and natural hazards. The last two mentioned categories are highly connected to SWM. 186. Tier 3 will include large cities and highly urbanized cities (HUC) with limited suitable land for SLF and large centralized MRFs and private, existing or new disposal site operators. The most feasible and fast tracking WTE projects could be implemented with existing SLF operators, which have a long-term agreement with MMDA to receive and dispose municipal waste from Metro Manila. Similarly, existing SLF operators in other national strategic urban hubs such as CALABARZON, including Bulacan, Pampanga, Metro Iloilo, Metro Cebu, and Metro Davao could engage WTE operators and financiers to improve their solid waste disposal. Most of these LGUs utilize SLF and disposal facilities designed as landfills but operated as dumpsites. The potential for PPP in WTE projects is about 400 MW capacity, or electricity

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project generation of 3.5 million MWh per year, which is enough to meet the electricity demand of 4.6 million inhabitants or 1 million households. This scale up of WTE would achieve annual emission reductions of around 4.1 million tons of CO2. ii. Highly Urbanized Cities (HUC) 187. The listing of proposed HUCs is meant to provide well-defined interventions to expedite SWM implementation in selected HUCs. Table 2.8 presents shortlisted HUCs, which has a conditional or approved SWMP. An ultimate objective of these proposed subprojects is to achieve goals of the Investment Program of PSWMSP to improve public health and well-being of citizens of the recipient HUCs. The procedure adopted in the selection of four pilot LGUs is presented in Annex 1 and 2. Summary Reports on the proposed HUCs Baquio, Dumaguete, General Santos, Santa Rosa and Zambonga City are presented in Annex 3 and supporting PPTA Mission Reports and proposal are in Annexes from 3.1 to 3.5. Table 2.8: HUC Shortlisted to PSWMSP

Waste Waste Population Income Collection Waste Disposal 10-year SWM LGU Gen. Notes 2013 Class Gen. Efficiency Method Plan kg/day/p ton/d Dumaguete City 132,245 3rd 0.4 53 85% Open Dumpsite Approved 2006 Urgent need to improve SWM City 288,956 1st 0.4 116 86% SLF cat. 4 Return for rev. Interested in PSWMSP OLONGAPO CITY 237,693 2rd 0.5 119 86% SFL cat. 4 Return for rev. FS ready DBP CITY 318,960 1st 0.4 128 86% Control Dump site Conditional Lapu-Lapu City 386,925 1st 0.4 155 86% Control Dump site Conditional Santa Rosa City 399,367 1st 0.5 200 87% San Pedro SLF Approved Urgent, LOI sent to SEC BAGUIO CITY 332,928 1st 0.6 200 87% Urdaneta SLF NG and Private Urgent: Several proposal for WTE City of Valenzuela 637,364 Spe 0.7 446 87% Rizal Provincial SLF Conditional RDF production GENRAL SANTOS CITY 749,088 1st 0.6 449 87% SLF cat. 4 Conditional Urgent, FS funded by USAID CITY 920,049 1st 0.6 552 88% SLF cat 2 Approved Urgent Request to ADB DAVAO CITY 1,610,235 1st 0.6 966 88% SLF cat. 4 Evaluation FS under USAID Quezon City 2,737,313 Spe 0.7 1,916 88% SLF Approved Private sector, landfill mining

Posibble candidates for PSWMSP Recommneded HUC for PSWMSP

Source: PPTA consultant.  Tier 3 includes 52 LGUs collecting waste within a range greater than or equal to 150 tpd assuming a collection range greater than or equal to 87%. Spatially, Tier 3 includes the seven (7) major cities in southern Philippines, namely Iloilo, , , Cebu, de Oro, Zamboanga and Davao, the major cities in CALABARZON namely , Calamba, Dasmariñas, and and the populous cities of NCR namely Muntinlupa, Makati, Marikina, Pasig, Valenzuela, Paranaque, Las Piñas, Taguig, Manila, Caloocan and Quezon City.

 In Tier 3, the minimum recommended SWM system is semi-automated MRFs in combination with large WTE plants. Operation may include landfill mining with a combination of other technologies to maximize benefits and minimize residues to be disposed. LGUs may also cluster to build a WTE plant in scale of economy. The combination of MRF and WTE could be constructed and operated under a PPP arrangement. To ensure smooth plant assembly and operation, it is highly

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recommended that suppliers shall be engaged both in plant construction and operation, either through direct involvement or through the employment of an attached subsidiary company with the sufficient know-how.

 The proposed SWM framework points the way for the use of WTE with PPP. At the moment, available ADB funds for the sector can accommodate only some pilot projects. Due to large required investment, specifically on technology, private-sector involvement is necessary. Technology providers and financing institution's partnership with major cities and/or waste management operators are necessary to enhance economic activities, provide job opportunities and contribute to much-needed energy production. It is a well-known fact that Luzon urgently needs more energy to sustain its economic activities. WTE plants from 2-10 MW can be implemented in 6-9 months to support local economies, when necessary licenses and permits are in place. Thus, the SWM sector can become an additional catalyst for growth and broad-based development with poverty reduction and high economic returns through resource and energy recovery infrastructure. Required investment on SWM for Tier3 is about U$2 billion over the next 15 years. Immediate action plan is presented below.

188. The new, technology-guided framework needs to be supported by a strong political will on the part of the LGUs and the national government and monitored strictly by agencies which include the DENR, Department of Energy (DOE), Department of Interior and Local Government (DILG) and Department of Health (DOH), among others.

iii. Opportunities for a large-scale WTE Plants

 Rodriquez: ISWIMS is the private owner and operator of the landfill. Currently, the Montalban disposal site receives 3,000 tpd of solid waste from Metro Manila. This amount could facilitate the establishment of WTE plant with 75 MW electricity production. The estimated investment cost is about $350 million.

 Quezon City: The current solid waste collection of 1,700 tpd could potentially translate to the generation of 48 MWe power in Payatas (Figure 2). The system should also include landfill mining to reduce the size of (30 ha) Payatas dumpsite to a manageable 5 to 10 hectares. Benefits include electricity production, GHG reduction recyclables and rehabilitation of contaminated land for other purposes. The estimated cost is about $280 million.

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Figure 2.2: Process Flow for WTE Application in Payatas

Source: PPTA consultant.

 Navotas: Philippine Ecology Systems Corporation (PhilEco) is one of the pioneers in the design, construction and operation of an integrated sanitary SWM and disposal facility in the country. It started to venture into this line of work in the implementation of the Smokey Mountain Development and Reclamation Project (SMDRP). In 1992, the Time Magazine featured the Smokey Mountain as the symbol of poverty in the Philippines. By then, the dumpsite has occupied more than 21 hectares, with a height of an 11-storey building and was a mountain of 2 million cubic meters of waste.

 Pier 18 is a transfer station which receives about 2,000 tpd of solid waste from NCR. Due to its negative environmental and social images, Pier 18 as Smokey Mountain is also associated with poverty linked to SWM. Over the years, PhilEco has done new SWM arrangements at Pier 18 such as waste transportation safety and efficiency, and dumping site and leachate management improvements in Malabon. However, management is still looking for long-lasting sustainable solution for its SWM.

 The WTE concept at Pier 18 could be a model for the new SWM economy. Establishment of a state of the art 50 MWe WTE facilitiy will include a semi-automated material recovery facility (MRF) to process waste from Manila, Tondo and Malabon, including residuals stockpiled in Smokey Mountain. The Project shall bring the best environmental and social measures and economic benefits to the poor sector in Manila and minimize dumped waste by 95%. It will provide hygienic waste sorting environment for waste sorters and electricity for 18,000 households as well as regular working

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opportunities for 150 persons in the MRF/WTE facilities and reduction of 1, 500 ton of global GHG emissions per year.

 Metro Clack Waste Management Corporation (MCWMC): MCWMC manages The SLF in Sub Zone D, Clark Special Economic Zone, Kalangitan. SLF is built based on international accepted standards, which fulfil the standards stipulated in RA 9003 substantially. MCWMC is owned 30% by the Germans and the remaining 70% by various Filipino investors.

 A 70-hectare SLF was established in 2003. It is located in municipality. Daily mixed waste disposal varies from 650 m3 to 900 m3. Current amount of disposed waste 3 3 is more than 1 million m . Total capacity of SLF is 43.5 million m . The SLF was built in phases. The first phase with an area of about 3 hectares was implemented in 2002 whereas the second phase with additional 1.5 hectares landfill pit area was built in 2007.

 The drainage system for the leachate was built out of an HDPE pipe system (which can sustain more than 80 m3 waste load) and an areal gravel filter, which would ensure that all incoming leachate would be conveyed to the leachate treatment plant (LTP). Also the temporary LTP for phases 1 and 2 was built as aeration ponds with the additional utilization of specialized enzymes for the complete cleaning of the water. However, filtration through a purification tower does not work properly over the years of trials. Therefore MCWMC is forced to find out proper leachate treatment system.

 Phase I landfill gas extraction project has been implemented. The project will initially involve the installation of a 0.5 MW generation capacity on-site to supply electricity for the consumption of landfill operations and an additional 0.5 MW capacity each year for the next 2 years for further cell developments.

 However, technological barriers in the project activity arise from the uncertainty of landfill gas generation. To reiterate the significant gas shortfall, it was found that a registered CDM project in the Philippines, Quezon City (Payatas) experienced approximately 49% shortfall of gas in comparison to the expected output. In general, major reasons for shortfall of gas are poor capping of SLF and extraction system.

MCWMC is exploring options for WTE such as thermal treatment and electricity production to get rid of leachate problems and unexpected shortfall of LFG production. The plan to further municipal solid waste processing through the installation of the refuse-derived fuel (RDF) equipment that will generate income for the constituents of the local government. Is also underway RDF and landfill mining solid recovered fuel (SRF) is a fuel produced by shredding and drying solid waste. Current 650 m3 MSW per day could facilitate the development of power plant with 13 MW electricity output. The needed investments are approximately $55 to $60 million.

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III. THE PROJECT

A. Impact and Outcome 187. The expected impact of the Project will be improved public health and well-being of the citizens of the recipient municipalities through reduction of environmental pollution. Anticipated outcome will be improved access to efficient and reliable delivery of SWM services to residents, with the inclusion of the impoverished sector. Moreover, through the application of an appropriate SWM system, such as a suitable MSW thermal treatment and proper landfill management, not only local but, global impact is realized through significant reductions and abatement of CO2 emissions. 188. The Project will further enhance capacities of the urban areas to attract more investments in WTE, increase productivity, and create an enabling environment for higher economic growth and global GHG reduction.

B. Outputs 189. The Project will follow the priorities identified during the study period from January to November 2013 for investments in the SWM sector infrastructure improvement, capacity building and enhancement, training and information, education and knowledge management and project implementation and management support for the pilot LGUs. Annexes 4, 4.1-4.4 present the subproject and project summary descriptions. The Project outputs will include the following:

1. Output 1: Priority Infrastructure Investments in SWM SUBPROJECT OF DEL CARMEN Output 1: Acquisition of two waste collection vehicles. Two dump trucks, each with a capacity at least 10 m3, will be acquired. These additional vehicles will facilitate expansion of the coverage into the rural barangays and increase the number of collection trips in the entire Siargao Island. Output 2: Acquisition of HPDE 250 waste bins. 250 units with 1.1m3 capacity HDPE bins will be acquired. This will facilitate temporary storage of segregated waste prior to collection. Currently, waste has been collected in sacks by the roads. Output 3: Acquisition of SLF and MRF Equipment. The equipment will include a bulldozer with blade capacity of at least 1.6 m3 and a weighbridge with capacity of at least 20 t for the SLF and a wheel loader with capacity of at least 1.3 m3 for the MRF. Output 4: Construction of a Category 2 SLF and a Central MRF. A 2 ha SLF will be located in a 4 ha site in Sitio Boyhogon, Barangay Cancoho. It will be progressively developed into two cells and containment area with an effective capacity of about 120,000 m3 net of the space to be occupied by the soil cover. The Central MRF will be housed in a 360 m2 building complete with hopper, conveyor and trommel set for sorting capacity of about 2 t/hr.

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Output 5: Closure of Existing Dumpsite. The existing dumpsite covers an area of about 5,000 m2. Dumping has not been done systematically, waste is gathered on the vast area consisting mainly of mixed wastes. There is no leachate formation. Closure will include systematic clean- up of other area and removal of remaining waste from dump site to SLF. SUBPROJECT OF JANIUAY Output 1: Acquisition of two waste collection vehicles. Two dump trucks, each with a capacity of 10m3-13 m3, will be acquired. These additional vehicles will facilitate expansion of the coverage to the rural barangays and increase the number of collection trips. Output 2: Acquisition of 270 waste bins. The HDPE bins will have 240- liter capacity. These will facilitate temporary storage of segregated waste prior to collection and complement the currently available, 100-liter plastic bins being used by the LGU. Output 3: Acquisition of SLF Equipment consists of a bulldozer and a weigh bridge. Output 4: Construction of MRF with power substation. The MRF will occupy 900 m2 section of the 6.2 hectare lot allotted for the SLF in Barangay Caraudan. It will be designed to process 15 to 30 tons of waste per day in an 8-hour shift using a combination of mechanical and manual processing. The MRF will be used to recover the recyclables from the collected waste. The substation will be used to connect the MRF and the SLF to the grid. Output 5: Construction of a Category 2 Sanitary Landfill. The SLF will be located in a 6.2 hectare lot in Barangay Caraudan. It will be progressively developed into two cells with an effective capacity of 346,000 m3 net of the space to be occupied by the soil cover. Output 6: Closure of Gibolo dumpsite. The Gibolo dumpsite covers an area of about 4,500 m2 and is expected to have an accumulated waste of about 7,500 tons. Closure will include: removal of waste from barangay road, grading and compaction, slope modification, application of soil cover, drainage control and leachate collection SUBPROJECT OF MALAY/BORACAY Output 1: Landfill Mining at Balabag, Manoc-Manoc and Yapak. This will consist of (i) mobilization and site preparation, (ii) excavation and recovery of recyclables and high-energy value materials; (iii) cleaning of Balabag, Manoc-Manoc and Yapak (iv) preparation of g transportable bales (1.2 m x 0.85 m x1.1 m) of 47,100m3, (v) storing 20,000 bales and transporting and storing 9,000 bales to Manoc Manoc, (vi) managing incoming waste over a period of six months to Manoc-Manoc 10,550 m3 and to Balabag 20,000 m3, (vi) preparing transportable bales 9,200 m3, (vii) storing 3,600 bales and transporting and storing 5,600 bales to Manoc-Manoc, (viii) transporting fines and residues of 14,950 m3 to Kasibulan SLF and (ix) remediation of Yapak MRF site, application of soil cover of 400 m3 and greening an area of 1,400 m2. Output 2: Construction of a MRF/WTE at Manoc-Manoc. This output will include (i) procurement and installation of mechanical/manual processing facility (MRF) with the design capacity of 50 tons/day; (iii) procurement and installation of estimated 1 MW electricity output WTE plant, which consists of thermal waste treatment unit and heat/energy conversion unit; and (iv) a sub-station to connect the power plant to the network. Output 3: Construction of a new cell at Kabulihan SLF. This will consist of (i) a gate, fencing and lighting of the area, surface water drainage system and internal road; (ii) cell with HDPE lining and leachate collection system; (iii) procurement of landfill equipment; and (iv) construction of leachate circulation system.

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Output 4: Waste collection and hauling improvement. This will consist of: (i) the purchase of barge for hauling of waste and recyclables from Boracay to Caticlan; (ii) purchase of four (4) brand new compaction trucks of 5 m3 capacity; (iii) two (2) brand-new open trucks with a capacity of 8-10 m3; and (iv) purchase of 450 pieces of 240-liter capacity HDPE waste bins. Output 5: Acquisition of SWM equipment. This will consist of (i) purchase of bulldozer for SLF operation in Kabulihan, (ii) a weigh bridge for the mechanized MRF in Manoc-Manoc; and (iii) four wheel loaders, three forklifts, four weighing scales, and two standard tool sets for MRF operations in Balabag and Manoc-Manoc. Output 6: Construction of MRF at Katiclan. It will be designed to process 10 tons of waste per day in an 8-hour shift using a combination of mechanical and manual processing. The MRF will be used to recover the recyclables from the collected waste. It will mainly support increasing waste generation at the entry point of Boracay. SUBPROJECT OF LA TRINIDAD MUNICIPALITY Output 1: Acquisition of waste collection vehicles. Eight (8) compaction trucks (each with 5m3 capacity) and two (2) skip trucks will be acquired. These additional vehicles will facilitate replacement of the aging fleet of dump and compaction trucks. Output 2: Acquisition waste bins. 620 waste bins and 6 skip bins will be acquired. HDPE bins with 1.1m3 capacity and steel skip bins with 8m3 capacity will be acquired. These bins will facilitate temporary storage of segregated waste prior to collection and complement the currently available, 100-liter plastic and steel-wire bins being used by the LGU. Output 3: Acquisition of SLF equipment. The equipment will include a bulldozer and leachate pumps. Output 4: Modernization and upgrading of the compost plant. New piping system will increase air supply/convey leachate from composting boxes. Six (6) aerated composting boxes will be added to the existing compost plant. The amount of blowers will likewise be increased and the blowing/suction concept employed will be improved or changed. Output 5: Acquisition of equipment for compost plant. The equipment to be acquired include a trailer, tools, sieve drum, wheel loader, shredder, and water pump. Output 6: Acquisition of Barangay MRFs. Establishment of 5 Clustered Barangay level MRFs consisting of a semi-automated MRF equipped with two Eco Compost Receptacle systems. One centralized MRF unit shall process MSW from the five most urbanized barangays directed to the Alno SLF. Output 7: Construction of a category 2 Cell III. The Cell is located in a 9.6 hectare (ha) lot in Barangay Alno. SLF size is 2.7 ha. It will be progressively developed into four cells with an effective capacity of 350,000 m3 net of the space to be occupied by the soil cover. Cell III construction also consists of an installation of weighing bridge.. Output 8: Landfill mining. The landfill mining is one of the first measures before the rehabilitation of Cell I and to recover recyclables, combustible fractions, soil, and landfill space to extend the life span of the cell from 7 to 12 years. This includes excavation and processing of 21,140 tons of waste, backfilling of 11,800 m³, and preparing 28,990 bales (650kg/pc) for intermediate storage or transportation to a thermo/energy recovery facility. Output 9: Rehabilitation of access road to Alno SLF. This includes 750 m rehabilitation work. The road was established within the compound of Alno Sanitary Landfill owned by the

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project municipal government. The access road should be an 'all weather' road at least 4 m wide and well passable even during the rainy season. Output 10: Rehabilitation of Cell I. To operationalize Cell I after landfill mining the following measures have to be taken: (i) proper site investigation to confirm activities to be carried out; (ii) rehabilitation of the existing on-reinforced retention wall; (iii) rehabilitation of leachate dewatering ditch; (iv) rehabilitation of leachate treatment facility; and (v) construction of leachate circulation or/and treatment system.

2. Output 2: IEC and Knowledge Management 190. The minimum target of the IEC plan for the PSWMSP is to make the participating pilot municipalities fully comply with RA 9003. The situation in most of the pilot areas reflects the nationwide findings of the NSWMC indicating low public awareness on solid waste issues and lack of motivation to compel the practice waste of avoidance and the 3Rs. 191. Additionally, IEC tools will help persuade the participating LGUs to invest in a long-term SWM solution that is environment-friendly, efficiently managed, technology-driven, and socially acceptable to the affected communities. 192. Another target of the IEC is to rationalize the need to implement SWM across a “cluster” of adjacent municipalities to achieve economies of scale for some pilot areas. 193. The IEC strategies that the project will adopt include the optimization of audience reach through various media (i.e. print, electronic, face-to-face events, etc.), while the IEC capabilities of those who will carry out and sustain the communication strategy at the municipal, LGU cluster, and provincial levels will likewise be enhanced. 194. Knowledge management activities will involve organizing symposia, case studies, and online discussion groups to promote and establish a practice or culture of monitoring and reporting the LGUs’ progress in the following: compliance, enforcement, and recognition; sustainable SWM financing; SWM technology, innovation, and research; related economic opportunities; organizational development and enhanced inter-agency collaboration; and cross- cutting issues that include good governance, caring for vulnerable groups, and reducing disaster and climate change risks. 195. A communication work plan covering 24 months from January 2016 to Dec 2017 will chart specific IEC tools and activities, their target audiences, budgets and indicators of successful implementation. Stakeholder’s Communication Strategy and Stakeholder Communication and Knowledge Management Action Plan are presented in the Supplementary Report 8.

3. Output 3: Capacity Development and Enhancement 196. While most of the key enabling policies and management plans are already in place at both national and local levels, failures in the effectiveness of the delivery of SWM services could be attributed to poor access to updated and accurate SWM information and knowledge sources; weak technical knowledge, information, and capacity, and access to ‘new’ and ‘emerging’ SWM technologies and SWM database of information and knowledge systems; and lack of training modules/programmes on SWM technical approaches, systems, and processes. 197. Based on these core areas for improving technical and operational capacities of local and national implementing agencies, the recommended areas for strengthening and improvement their capacities are outlined below.

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198. The proposed training and capacity building for SWM of national implementing agencies or bodies are as follows: a. NSWMC Secretariat: i. strengthening the establishment of an integrated and national and regional SWM database and information and knowledge management system ii. strengthening strategic policy research and analysis of SWM issues and challenges, including conduct of primary surveys/research and projections/scenario building or modeling exercises iii. strengthening strategic planning and management b. DENR-EMB regional offices: i. revision and evaluation of the conduct and analysis of WACS module for LGUs to include ‘calorific value’ content analysis ii. strengthening and establishment of an open, publicly accessible integrated national/regional SWM database and knowledge management information system iii. revision and upgrading of air quality and water quality monitoring standards for SWM and WTEs iv. strengthening and improvement of local field staff capacity for technical and standards monitoring and enforcement c. National and regional ecology centers: i. updating and revision of trainer’s training module/assistance to LGUs for WACS in cooperation with DENR-EMB units; WACS should be adopted at the national level to have standard modules. ii. updating and revision of trainer’s training module for SWM plan preparation and formulation in cooperation with DENR-EMB units 199. The proposed training and capacity building for SWM local implementing agencies or bodies are as follows: i. enhanced conduct and analysis of WACS ii. enhanced preparation and formulation of SWM plans iii. technical analysis and evaluation of appropriate and alternative options for SWM facility, detailed SWM systems and facility design and engineering, operations and management, among others iv. technical review, preparation and conduct of contract negotiations for SWM joint venture, service contract/procurement, and PPP options v. technical support in the establishment and operations of an LGU SWM corporate entity or body vi. improvement in the technical monitoring and evaluation capacity of local LGU staff (i.e., MENRO, Engineering/General Services offices) in environmental, physical, engineering and technical standards and criteria vii. SWM site visits and technology familiarization seminars/workshops/fairs (local and regional).

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4. Output 4: Project Implementation and Management Support 200. PIMSC Team shall cover the provision of expert technical adviser and support to the PMO in the review and evaluation of submitted LGU SWM project proposals under the SWMSP grant/loan facility. 201. The SWM PIMSC team provides expert inputs and specialist information to the PMO and appropriate agencies on the different aspects of a economically viable and sustainable solid waste management programme from the technical and data analysis, identification and preparation of project proposals or feasibility studies for a SWM project, including WTE options, detailed engineering design and standards, financing schemes and business plans, contracting and procurement of services, legal/institutional and administrative structures and arrangements from the proposed LGU SWM projects. However, a participating LGU shall have an approved or conditionally approved SWMP. The team also provides over-all project management support to the PMO including formulation and development of project management plan, monitoring and evaluation, IEC and communication/marketing, financial management and grant facility administration. 202. Land Acquisition and Involuntary Resettlement Impacts. The four pilot sub-projects do not involve any land acquisition, as identified infrastructure investments (construction and/or rehabilitation of SLF, MRF and Waste-To-Energy (WTE) Facility) will be carried out entirely on government-owned or government-leased property. There are also no affected households (AHs) in the Del Carmen and Malay/Aklan sub-projects as no non-land assets or existing livelihood/income-generating activities will be temporarily/permanently affected by sub-project investments. 203. However, project activities in the two remaining sub-projects (i.e. For the Janiuay sub- project, closure of the existing dumpsite in Janiuay Municipality; and strict implementation of no mixed waste dumping in the La Trinidad sub-project) will have both direct and indirect adverse impacts on the livelihoods of active waste pickers who will no longer be able to continue waste picking activities in the existing dumpsites. 204. Resettlement Plans prepared during the PPTA. Given the aforementioned impacts, sample RPs have been prepared for project appraisal for (i) the Janiuay Cluster sub-project; and, (ii) the La Trinidad sub-project. Involuntary resettlement impacts for the Janiuay cluster sub-project involves permanent economic displacement (loss of livelihood/income source) of 18 affected households (AHs) with 95 affected persons (APs) that currently derive income from separating and selling recyclable waste in the existing dumpsites of Janiuay, and Cabatuan Municipalities. Of these, 17 AHs (87 APs) are considered severely affected, as the loss of livelihood/income from waste picking is equivalent to 10% or more of their total income. Involuntary Resettlement impacts for the La Trinidad sub-project likewise involves permanent economic displacement (loss of livelihood/income source) of 28 AHs (135 APs) that currently derive income from separating and selling recyclable waste in La Trinidad’s existing SLF. All 28 AHs (135 APs) in La Trinidad will be severely affected, as the loss of livelihood/income from waste picking is equivalent to 10% or more of their total income. 205. Income and Livelihood Restoration Measures. The La Trinidad and Janiuay RPs discuss livelihood and income restoration measures that will be put in place to ensure that AH’s standards of living are restored to at least pre-project conditions. At feasibility study stage, the preliminary income restoration program (IRP) included in the draft RPs was designed based on identified resettlement impacts of the sub-project and consultations with AHs. The IRP and its implementation mechanism will be finalized during RP updating with the active involvement of participating AHs (vulnerable AHs and severely affected HHs). Particular attention will be

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project provided for vulnerable AHs to: (i) ensure their participation in meetings involving consultation and planning of livelihood and other income generating projects, and in monitoring of progress of activities, and (ii) track improvements in income and general well-being of the households. 206. The finalized IRP will be in the form of an activity plan with clear objectives, achievable milestones, time table, resource allocation, and responsible unit/person drawn up jointly by the LGU and the waste pickers. The plan should contain an integrated and coordinated set of activities that will connect: (i) employment skills learned to actual jobs and (ii) microfinance project to marketable goods and services produced. Financial management training must likewise be carried out to help affected households properly manage the income earned. IRP activities will be implemented along with implementation of other measures described in the resettlement plans and will be covered by internal monitoring. The project executing agency and concerned LGUs will ensure the timely availability and disbursement of adequate resources (financial and human resources, venues for trainings, etc.) for the IRP. Income restoration measures must already be in place prior to displacement and prior to issuance of Notice to Proceed (NTP) for any civil works. 207. In the Janiuay subproject, all affected households will be affected by permanent loss of livelihood and are thus eligible to participate in the IRP. As per the project entitlement matrix, identified vulnerable affected households will also receive priority employment in project-related jobs. IRP measures in Janiuay include livelihood skills and financial management training, job placement, establishment of a buy-back center for recyclables and support for entrepreneurial activities, establishment of a revolving fund to support other productive activities, microfinance support, and medical check-up and health support. 208. Similarly, in the La Trinidad subproject, all affected households will be affected by permanent loss of livelihood and are also considered severely affected. They are thus eligible to participate in the IRP, which will include livelihood skills training, training in practical financial management and bookkeeping, job placement, priority employment in the proposed SLF, establishment of a buy-back center for recyclables, revolving fund to support other productive activities, microfinance support, and medical check-up and health support. 209. Resettlement Plan Implementation Arrangements. For the Janiuay cluster subproject implementation arrangements are as follows: 210. The DENR, through the Project Management Office (PMO), and the LGU of Janiuay have the overall responsibility for preparing, updating, implementing and financing the RP. Through the PMO, the DENR will (i) monitor and evaluate the progress of activities under the RP by way of coordination with the LGU; and, (ii) report to ADB progress of activities, and feedback to LGU comments and suggestions from ADB. 211. The PMO, which will have a social safeguards focal/officer will: (i) carry out internal monitoring and evaluation of resettlement activities including income and livelihood restoration for the APs; (ii) assist DENR in reporting to ADB, and in obtaining comments and suggestions for LGU implementation of resettlement activities; (iii) support the LGU in updating the RP; and, (iv) ensure the timely delivery of budget for the implementation of resettlement activities by the LGU. 212. Janiuay LGU shall serve as the main local implementing agencies responsible for the management of the sub-project from its development, through implementation and subsequent operations and maintenance. The Janiuay Municipal Environment and Natural Resources Office (MENRO) will be the lead agency in the implementation of the Solid Waste Management Plan (SWMP).

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213. The LGU of Janiuay will (i) participate in all activities involved in resettlement planning and implementation for the sub-project; (ii) secure legal instruments (e.g., Executive Orders, Municipal Resolutions, Memorandum Orders, Deeds of Donation etc.) that are necessary to implement the RP; (iii) mobilize concerned units such as Barangay officials, the Municipal Social Welfare and Development Office, Municipal Agriculture Office, Department of Labor and Employment – Public Employment Service Office (DOLE-PESO), and Solid Waste Management Office, as necessary, to assist in implementing the Plan; (iv) identify and mobilize possible program partners such as but not limited to the Technical Education and Skills Development Authority (TESDA), Department of Trade and Industry (DTI), NGO’s, and business sector to assist in activities that are within the organizations’ mandate and expertise; and, (v) secure from their municipal treasury the budget for developing and implementing the RP, ensuring that funds and human resources are available in a timely manner and in sufficient amounts. 214. The Project Management and Implementation Support Consultants (PMISC) to be recruited by DENR will include one national social safeguards specialist (30 person-months, intermittent). The social safeguards specialist will assist in updating Resettlement Plan and implementation for the entire Project. 215. The PMO will be the Project’s internal monitor. During resettlement plan implementation, which is expected to begin at the time of the detailed measurement survey (DMS), quarterly internal monitoring reports will be submitted to ADB. The PMISC will prepare a resettlement completion report per civil works contract and submit this to DENR and ADB prior to the award of civil works contracts. 216. For La Trinidad Sub-project, RP implementation arrangements are as follows:  The DENR, through the Project Management Office (PMO), and the La Trinidad LGU have overall responsibility for preparing, updating, implementing and financing the RP. Through the PMO, the DENR will (i) monitor and evaluate the progress of activities under the RP by way of coordination with the LGU; and, (ii) report to ADB progress of activities, and feedback to LGU comments and suggestions from ADB.  The PMO, which will have a social safeguards focal/officer will: (i) carry out internal monitoring and evaluation of resettlement activities including income and livelihood restoration for the APs; (ii) assist DENR in reporting to ADB, and in obtaining comments and suggestions for LGU implementation of resettlement activities; (iii) support the LGU in updating the RP; and, (iv) ensure the timely delivery of budget for the implementation of resettlement activities by the LGU.  The La Trinidad LGU will (i) participate in all activities involved in resettlement planning and implementation for the sub-project; (ii) secure legal instruments (e.g., Executive Orders, Municipal Resolutions, Memorandum Orders, Deeds of Donation etc.) that are necessary to implement the RP; (iii) mobilize concerned units such as Barangay officials, the Municipal Social Welfare and Development Office, Municipal Agriculture Office, Department of Labor and Employment – Public Employment Service Office (DOLE- PESO), and Solid Waste Management Office, as necessary, to assist in implementing the Plan; (iv) identify and mobilize possible program partners such as but not limited to the Technical Education and Skills Development Authority (TESDA), Department of Trade and Industry (DTI), NGO’s, and business sector to assist in activities that are within the organizations’ mandate and expertise; and, (v) secure from the municipal treasury the budget for developing and implementing the RP, ensuring that funds and human resources are available in a timely manner and in sufficient amounts.

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217. The Project Management and Implementation Support Consultants (PMISC) to be recruited by DENR will include one national social safeguards specialist (30 person-months, intermittent). The social safeguards specialist will assist in Resettlement Planning and Implementation for the entire Project. 218. As in Janiuay, the PMO will be the internal monitor for RP implementation in La Trinidad. During resettlement plan implementation, which is expected to begin at the time of the detailed measurement survey (DMS), quarterly internal monitoring reports will be submitted to ADB. The PMISC will prepare a resettlement completion report per civil works contract and submit this to DENR and ADB prior to the award of civil works contracts. 219. Involuntary Resettlement Categorization. Given the number of severely affected persons, the Project is proposed Category B (involuntary resettlement impacts not deemed significant). Other RPs will be prepared during project implementation stage as and when the sites are identified and land acquisition and involuntary resettlement impacts are assessed. Public consultations with affected households have been undertaken during RP preparation and consultations with concerned stakeholders will continue throughout the project cycle. 220. Resettlement Framework as guide for Resettlement Plan Preparation and Updating. A Resettlement Framework (RF) was prepared to guide the preparation and updating of resettlement plans (RPs) for pilot sub-projects with land acquisition and resettlement impacts. It will likewise guide RP preparation for any sub-projects identified after project appraisal that involve land acquisition and resettlement impacts.

C. Proposed Selection Criteria for LGUs to Participate in PSWMSP Development 221. This Report represents the Investment Program on the PSWMSP, which is made available to provinces, cities and municipalities. 222. Criteria for the LGUs selection will be primarily based on (a) urgency and well-defined investment needs for solid waste management improvement; (b) financial management, commitment to establish a specific account for SWM and governance; (c) inclusion of serving low-income communities; (d) project preparedness such as approved Feasibility Study or/and approver or conditionally approved SWM plan; (e) potential for establishing regional SWM facility; and (f) opportunities for private sector participation. Participating LGUs shall meet the following eligibility criteria: a) Approved and conditionally approved Solid Waste Management Plan b) Letter of Intent (LOI) from the Mayor’s Office or Office expressing interest to participate in the Investment Program of PSWMS for the identified subproject; c) Resolution from the Sangguniang Bayan confirming the need for the proposed subproject and authorizing the Mayor to enter, on behalf of the LGU, into the PSWMS project with DENR, and incur obligations and expenses relating to the subproject such as resettlement, IP or waste pickers’ permanent loss of working opportunities, taxes and duties; 223. The listing of proposed HUCs is meant to provide well-defined interventions to expedite SWM implementation in selected HUCs. An ultimate objective of these proposed subprojects is to achieve goals of the Investment Program of PSWMSP to improve public health and well- being of citizens of the recipient HUCs. The selection procedure employed in short listing the four pilot LGUs is presented in Annexe 1 and 2. A long list of the proposed HUCs is also

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project presented in Annex 3. Supporting mission reports on Baquio, Dumaguete56, General Santos Santa Rosa and Zambonga City Proposal are as presented in Annexes 3.1 to 3.5.

D. Special Features 224. The Aquino administration is leading the way forward to long-term and sustainable SWM solutions. The national government has taken the initiative to improve sector governance by formulating and exploring alternative financing modalities in support of its investment programs. Under the present SWM sector project, the National Government will take the loan from ADB and use it to fund SWM projects of the selected LGUs. The selected LGUs will receive a 100% grant for all basic SWM infrastructure development excluding energy recovery from waste with PPP arrangements. It has been an established fact that private sector involvement is a crucial, if not mandatory, to secure sustainability of MRFs and WTE operation. The grant to LGUs takes on a performance-based incentive approach evaluated through a limited number of easily measurable key performance indicators. To ensure subproject financial sustainability, revenues earned are required to be ring-fenced and used exclusively for the payment of SWM expenditures. In this regard, it is necessary to establish an SWM accountancy system.

1. Innovative Technology 225. The Project will pave the way for WTE technologies, which is expected to take place in all major urban cities. In this connection, the investment program is an enabling environment for enhanced economic activities and job opportunities. The sector can become an additional catalyst for growth and broad-based development with poverty reduction and high economic returns through resource and energy recovery infrastructure. 226. The Project introduces the concept of landfill mining, which is essentially the recovery of valuable recyclable materials from closed and open dumpsites including the dumped waste’s combustible fraction, soil, and landfill space. The aeration of the landfill soil is a secondary benefit regarding the landfill's future use. The separated combustible fraction may then be further processed into commercially marketable RDFs for use in cement factories or treated as a high-energy input to WTE Facilities. It is expected that landfill mining will take place in Metro Manila and many other economic hubs in the near future with the fast depletion of available spaces, rising land value and the pressing need to restore dumpsites for other activities. Aside from its merit of increasing/maximizing land value, the concept of landfill mining and use conversion, most importantly, contributes to the eradication of environmental pollution and GHG emissions. The general process of landfill mining involves a sequence of processing machines laid out in a functional conveyor system. The operating principle is to excavate, sieve, and sort the landfill material.

2. PPP and Large-scale Investments 227. The PPP regulatory framework, as laid down in the pertinent laws, gave mandates to certain regulatory institutions over infrastructure and development projects. Thus, for BOT projects, the approving authorities are as follows: 228. National Projects. The projects must be part of the development programs of a public sector entity. Projects costing up to Php300 million shall be submitted to the NEDA-Investment Coordination Committee (ICC) for approval. Those costing more than Php300 million shall be

56 Dumagete is not HUC. However, its need to improve entire SWM system is very high

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project submitted to the NEDA Board for approval upon the recommendation of the ICC. Regardless of the amount, however, negotiated projects shall be submitted for approval upon recommendation by the ICC. 229. Local Projects. Projects to be implemented by LGUs shall be submitted by the concerned LGU for confirmation by the (a) municipal development council for those costing up to Php20 million; (b) provincial development council, if more than Php20 million up to Php50 million; (c) city development council, if up to Php50 million; (d) regional development council, or in the case of Metro Manila project, the Regional Development Council for Metropolitan Manila, if more than Php50 million up to Php200 million; and (e) ICC, for those cost if more than Php200 million. The final approval of LGU projects is vested in the local Sanggunian under the LGC. 230. In addition, clearances from other government agencies such as DENR, Department of Budget and Management (DBM), and Department of Finance (DOF) are required. Upon review and qualification, the DENR issues an environmental clearance certificate; the DBM issues a Certification of Budget Cover Availability, if needed; and the DOF identifies government guarantee requirements or confirms that the project requires no government undertaking (if the project is unsolicited). 231. Projects undertaken through the build-own-operate (BOO) scheme or through contractual arrangements or schemes other than those defined above shall require presidential approval. For this purpose, the government entity shall submit the proposed project to the NEDA Board through the ICC, which shall evaluate the proposal and forward its recommendations to the President. Projects shall be deemed to have been approved by the President when approved at a NEDA Board meeting presided over by the President. 232. Joint Venture. In a joint venture, whether contractual or corporate, the approving authorities are as follows: (i) For a national government department, the Secretary must approve the joint venture; (ii) For an LGU, the Sanggunian, local chief executive concerned and supervising LGU must approve the joint venture; (iii) For a government owned and controlled corporation (GOCC) like the water district, government corporate entity, government financial institution, and state and , the venture must be approved by the governing board of the entity concerned. 233. Procurement. For procurement worth Php500 million, the approval of the Government Procurement Policy Board is required. All procurement transactions must be approved by the head of the procuring entity. 234. The Office of the President is also the approving authority over projects that will go through the BOO scheme. Other BOT variants that are not listed in the BOT Law will have to be approved by the Office of the President. By virtue of Executive Order No. 8 series of 2010 signed on 9 September 2010, the Build, Operate and Transfer Center was renamed and reorganized into the Public-Private Partnership Center of the Philippines. Its attachment was transferred from the DTI to NEDA to efficiently and effectively implement the Medium-Term Philippine Development Plan by facilitating the coordination and monitoring of the PPP programs and projects.

E. Project Financing Plan and Lending Arrangements

1. Project Cost Estimate and Financing Plan 235. The total cost of the Project is estimated at $95.13 million equivalent, including taxes, duties, and physical and price contingencies (Table 2).

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Table 3.1: Cost Estimates by Outputs ($ million) Item Description Amounts a A. Base Cost b 1. ISWM Investment 68.56 2. IEC and Knowledge Management 2.00 3. Capacity Building and Enhancement 0.98 4. Project Implementation and Management Support 4.34 Subtotal (A) 75.88 c B. Contingencies 1. Physical Contingencies 7.58 2. Price Contingencies 6.95 Subtotal (B) 14.53 C. Financing Charges during Implementation d 4.71 Total (A+B+C) 95.13 a Includes taxes and duties of $10.83 million equivalent, involuntary resettlement of $0.10 million equivalent and land acquisition cost of $0.05 million equivalent, all to be financed from Government sources. Additional Government support is provided for administration and operational support during project implementation estimated at $1.2 million equivalent from DENR and $0.32 million equivalent from the LGUs. b In October 2014 prices c Physical contingency was computed at 10% for civil works, equipment, goods, training, and consultancy. Price contingencies computed on the basis of domestic and international price escalation factors, which include a provision for potential exchange rate fluctuation assuming purchasing power parity exchange rates. Annual rates are as follows: foreign currency at 1.4% and local currency at 4.0% for the period 2015 to 2020. d Includes interest charges during implementation for ADB loan computed at 5-year LIBOR rate plus spread of 0.6% and commitment fee of 0.15%. Source: Asian Development Bank

236. ADB Financing. The Government has requested a $71.0 million equivalent ADB loan and grant to finance the Project. This amount will be sourced from an ADB grant (to be determined) for $1.0 million equivalent and $70.0 million equivalent from Ordinary Capital Resources (OCR) with 25-year term including 6-year grace period, 0.15% commitment charge, and interest rates determined in accordance with ADB’s London interbank offered rate (LIBOR)- based lending facility plus 0.6 spread. The loan will finance civil works, equipment, capital goods, consulting services, and contingencies. 237. Grant Financing. The UEIF of the UFPF will provide the US dollar denominated co- financing of $2.0 million on a grant basis to be administered by ADB. The UEIF grant will finance one subproject involving the establishment of a waste-to-energy facility. 189. Government Contribution. The Government of the Philippines, through the DENR, will provide $10.83 million equivalent to cover taxes and duties. Additional Government support will be provided for Project administration and operations during the six-year implementation estimated at $1.2 million equivalent from DENR and $0.32 million equivalent from the LGUs. The host LGU will cover land acquisition, involuntary resettlement and equity for the waste-to- energy facility. Financing plan is shown in the following table.

Table 3.2: Financing Plan ($ million)

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Total Percent

ADB - OCR Loan 70.00 73.6 ADB Grant 1.00 1.0 Urban Financing Partnership Facility 2.00 2.1 National Government 16.56 17.4 Local Governments 5.57 5.9 95.13 100.0 Source: Asian Development Bank

2. Disbursement Arrangements 238. The Loan proceeds including ADB administered co-financier funds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time),57 and detailed arrangements agreed upon between the Government and ADB. 239. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),58 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to subprojects financed by ADB. 240. The Project funds are composed of the ADB and co-financier loan and grant proceeds and government counterpart funds. Government counterpart funds are in the form of taxes and duties and recurring administrative expenses. ADB and co-financier loan and grant funds will be disbursed by imprest account method. Government counterpart funds will be disbursed in accordance with the Philippine budgetary system and the New Government Accounting System (NGAS). 241. To ensure the timely release of ADB and co-financier loan and grant proceeds and to expedite Project implementation, the DENR will, immediately upon loan effectiveness, open Project imprest account at a bank acceptable to ADB. The DENR will be responsible for managing, replenishing, and liquidating the imprest account. The advance to the imprest account will be limited to 10% of the eligible expenditures to be financed by the ADB and co- financier loan and grant funds, or 6 months projected eligible expenditures, whichever is less. ADB’s SOE procedure will be used for replenishment and liquidation of the imprest account. The maximum ceiling of $100,000 per payment will apply. 242. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet 59 setting out the estimated expenditures for the first six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the DENR will furnish to ADB (a) Statement of Account (Bank Statement)

57 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 58 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf 59 Available in Appendix 29 of the Loan Disbursement Handbook.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the DENR records.60 243. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.61 244. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing. 245. To ensure the timely release of the loan and grant proceeds and to expedite Project implementation, DENR will, immediately upon loan effectiveness, open and maintain an imprest account where the loan and grant proceeds will be deposited. ADB will deposit to the imprest account an initial amount equivalent to the estimated disbursements of approved sub-loans and grants to the LGU beneficiaries for the first 6 months of project implementation, or 10% of the their sub-loan and grant proceeds, whichever is lower. DENR-FMS will be responsible for establishing, managing, replenishing, and liquidating the imprest account. 246. The loan and grant proceeds shall be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time), and detailed arrangements should be agreed upon between the Government and ADB. The statement of expenditures (SOE) procedures shall be used for reimbursement and to liquidate and replenish the imprest account for eligible expenditures. Each individual payment reimbursed or liquidated using the SOE procedures shall not exceed the amount mutually agreed upon between the Government and ADB.

3. Accounting, Auditing and Reporting 251. The DENR will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles and practices and those prescribed by the Government's accounting laws and regulations. 252. The FMS and participating EMB Regional Offices will maintain separate project records and accounts in accordance with sound accounting principles. Their records and accounts will be sufficiently detailed to identify sub-grants and subprojects financed by the loan and grant proceeds and to disclose the sources and expenditure of funds, including counterpart contributions provided in cash or in kind. The FMS will submit project accounts provided by participating EMB Regional Offices to ADB within 3 months of the end of the fiscal year. The FMS and participating EMB Regional Offices will (i) have the project accounts and their financial

60 Follow the format provided in Appendix 30 of the Loan Disbursement Handbook. 61 Checklist for SOE procedures and formats are available at: http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project statements audited annually, according to generally accepted auditing standards, by the Commission on Audit; and (ii) submit to ADB, within 9 months of the end of each fiscal year, a copy of the auditor’s report on the project accounts and audited financial statements. The auditor’s report on project accounts will include a separate audit opinion on the use of the imprest account and the SOE procedure.

F. Procurement

1. Assessment of Procurement Capacity 249. DENR has a Customized Manual for Procurement which was already approved for use by the Government Procurement Policy Board (GPPB) in 2007. The Manual is found to be consistent with Government Procurement Reform Act (GPRA) also known as RA 9184 and the ADB Procurement Guidelines. A Procurement Unit under the DENR-FASPO has also been established which has a main task of acting as a secretariat and supports the Bids and Awards Committee (BAC) of the DENR-FASPO. 250. Advisory and consultancy services on procurement will be made available before and during project implementation by the DENR-FASPO.

2. Advance Contracting 251. To prevent delays in project implementation due to procurement, advance contracting is envisioned in this Project. The procurement of services for advance contracting will be undertaken in accordance with ADB’s Procurement Guidelines (2013, as amended from time to time) and issuance of the invitation to bid will be subject to the approval of ADB. 252. The scope of services for advance contracting will focus on (i) engagement of a team of consultants for project implementation and support, and (ii) individual consultants that will assist the DENR-FASPO in the selection and recruitment of the Project Implementation and Management Support Consultant (PIMSC) and Design Supervision Consultant (DSC) consultants.

3. Procurement of Goods, Works and Consulting Services 253. All procurement of goods, works and consulting services will be in accordance with ADB’s Procurement Guidelines. International competitive bidding (ICB) will be applied for civil works packages exceeding $5,000,000 equivalent. 254. Within a year of loan effectiveness, the DENR-FASPO shall submit a revised procurement plan to ADB for approval. This revised plan will contain all ongoing procurement activities and those that are planned for the succeeding 18 months. The plan shall be updated annually or as required after every loan review mission or after award of each major ICB contract. 255. For changes in the procurement arrangements involving threshold, procurement methods and review requirements and contract packaging during project implementation, the DENR-FASPO shall present its justification for the changes and submit an updated procurement plan for ADB approval. ADB will be responsible for posting the initial procurement plan and subsequent updates on the ADB website. 256. All consulting services shall be recruited in accordance with the Guidelines on the Use of Consultants by ADB and its Borrowers (2013 as amended from time to time). The scope of services and terms of reference for the consulting services are presented in Section E and in

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project the Attachment 1. Consulting firms will be engaged by the DENR-FASPO and ADB using the quality-and cost-based selection (QCBS) method with a standard quality:cost ratio of 80:20. 257. Modification in Civil Works Contracts. For any contract variation, which would be in aggregate increase in the original contract amount by more than 15%, the DENR-FASPO shall provide detailed justification and seek the no objection position of ADB to the proposed contract variation. If the proposed variation is inconsistent with the procurement plan and the provision of the financing agreement, the ADB shall promptly advise the DENR-FASPO stating the reasons for its position. The DENR-FASPO shall furnish the ADB all amendments to the contracts for civil works for legal and record purposes.

4. Procurement Plan Basic Data

Project Name: PHI: Solid Waste Management Sector Project Country: PHI Executing Agency: DENR Loan and Grant Amounts: $ 70M Loan (Grant) Number: XXXX Date of First Procurement Plan: Date of this Procurement Plan: Source: PPTA consultant.

5. Process Thresholds, Review and 18-Month Procurement Plan

258. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works:

Table. 3.3: Project Procurement Thresholds Method Threshold International Competitive Bidding (ICB) for Works62 Equal or above to $5,000,000 International Competitive Bidding (ICB) for Goods1 Equal or above to $1,000,000 National Competitive Bidding (NCB) for Works1 Below $5,000,000 down to $100,000 National Competitive Bidding for Goods1 Below $1,000,000 down to $100,000 Shopping for Works Below $100,000 Shopping for Goods Below $100,000 Source: PPTA Consultant. 259. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for project.

62 See ADB Procurement Guidelines, 2013.

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Table. 3.4: ADB Review Requirements Procurement Method Prior or Post Comments ICB for Works Prior ICB for Goods Prior NCB for Works Prior Prior review is required for the actual first bidding documents after which NCB for Goods Prior post review applies. Shopping for Works Post Shopping for Goods Post Recruitment of Consulting Services Quality and Cost Based Selection (QCBS) Prior Quality-cost weighting ration 80:20 Quality Based Selection (QBS) Prior Other selection methods: Consultants In accordance with the Guidelines on Qualification Selection (CQS), Least Cost Post the Use of Consultants (2010 as Selection (LCS), Fixed Budget (FBS) and amended from time to time) Single Source (SSS) Recruitment of Individual Consultants In accordance with the Guidelines on Individual Consultants Prior the Use of Consultants (2010 as amended from time to time) Source: PPTA consultant.

260. The following table lists goods and works contracts for which procurement activity is expected to commence within 18 months of the start of the project: Table 3.5 Goods and Works Contracts Estimated to Cost More Than $1 Million Contract Advertisement Procurement Prequalification General Description Value ($ Date Comments Method of Bidders (y/n) millions) (quarter/year) A. Civil Works 1. Sanitary Landfills 1.1 Del Carmen 2.53 NCB Y QIII/2015 1.2 Janiuay 2.05 NCB Y QIII/2015 ADB Funded 1.3 La Trinidad 2.99 NCB Y QIII/2015 1.4 Malay 2.61 NCB Y QIV/2015 2. Materials Recovery Facility 3.1 La Trinidad 1.15 NCB N QIII/2015 ADB Funded 3. Waste to Energy Plant 4.1 Malay 9.70 ICB Y QIV/2015 ADB Funded 4. Non-pilot LGUs 44.80 NCB Y/N QI-QIV/2016 ADB Funded (multiple contracts) Goods/Equipment 1. Waste Collection Equipment 1.1 Malay 1.10 ICB N QIV2015 ADB Funded Source: PPTA consultant.

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261. The following table lists goods and works contracts for which procurement activity is expected to commence within 18 months of the start of the project: Table 3.6: Goods and Works Contracts Estimated to Cost Less than $1 Million Contract Number of Advertisement Recruitment General Description Value ($ Contracts Date Comments Method millions) (quarter/year) A. Civil Works 1. Materials Recovery Facility 1.1 Del Carmen 0.26 1 NCB QIV/2015 1.2 Janiuay 0.50 1 NCB QI/2016 1.3 Malay 0.11 1 NCB QIII2015 2. Dumpsite Closure 2.1 Del Carmen 0.10 1 NCB QIV/2016 2.2 Janiuay 0.41 1 NCB QIV/2016 3. Compost Plant 3.1 La Trinidad 0.26 1 NCB QIV/2015 4. Landfill Mining 4.1 La Trinidad 0.75 1 NCB QIV/2015 5. MRF Mining and Clean-up 5.1 Malay 0.85 1 NCB QII/2015 B. Goods/Equipment 1. Waste Collection Equipment 1.1 Del Carmen 0.16 1 NCB QIII/2016 1.2 Janiuay 0.16 1 NCB QIV/2015 1.3 La Trinidad 0.94 1 NCB QIV/2015 2. Sanitary Landfill (O&M) Equipment 2.1 Del Carmen 0.39 1 NCB QIII/2016 2.2 Janiuay 0.18 1 NCB QIV/2016 2.3 Malay 0.54 1 NCB QIV/2016 3. MRF Equipment 3.1 Janiuay 0.06 1 Shopping QIV/2015 3.2 Malay 0.03 1 Shopping QI/2016 4. Waste Collection Bins 4.1 Del Carmen 0.05 1 Shopping QIV/2015 4.2 Janiuay 0.001 1 Shopping QIV/2015 4.3 La Trinidad 0.17 1 NCB QIV/2015 4.4 Malay 0.05 1 Shopping QIV/2015 Source: PPTA consultant.

262. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the project period: Table 3.7: Consulting Service Contracts Estimated to Cost More Than $100,000 Contract Advertisement International Recruitment General Description Value Date or National Comments Method ($million) (quarter/year) Assignment 1. Project Management and 4.80 QCBS QIII/2014 International Cost ratio 80:20 Implementation Support and National (Full Technical Proposal) 2. Design and Construction

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Supervision Consultants (4 packages – 4 subprojects) 2.1 Del Carmen 0.23 QCBS QI/2015 International Cost ratio 80:20 2.2 Janiuay 0.23 QCBS QI/2015 and National (Full Technical 2.3 La Trinidad 0.32 QCBS QI/2015 Proposal) 2.4 Malay 1.06 QCBS QI/2015 3. IEC and Knowledge 2.09 Individual QIII/2014 National Management 4. Capacity Building & 1.04 Individual QIII/2014 National Enhancement Source: PPTA consultant. 263. The following table provides an indicative list of procurement (goods, equipment, works and consulting services) over the life of the project. Contracts financed by the borrower and others should also be indicated, with an appropriate notation in the comments section. Table 3.8: Indicative List of Packages Required Under the Project Estimated value Estimated Procurement General Description ($ million No. of Comments Methods accumulative) Contracts A. Civil Works 1. Sanitary Landfill (for the 4 With Pre- 10.18 4 NCB pilot subprojects) qualification 2. Material/Resource Recovery Facilities (for the 4 pilot 2.04 4 NCB Post qualification subprojects) 3. Landfill/MRF Mining and Clean-up (for Malay & La 1.60 2 NCB Trinidad with dump closure) 4. Dumpsite Closure (for Del 0.51 2 NCB Carmen & Janiuay) 5. Compost Plant (La Trinidad) 0.26 1 NCB With Pre- 6. WTE Plant (Malay) 9.70 1 ICB qualification 7. Non-pilot LGUs 44.80 ≥5 NCB Total Project Cost B. Equipment and Goods 1. Waste Collection 69.9 2.37 4 NCB/ICB Vehicle/Equipment 2. Sanitary Landfill (O&M) Equipment (Del Carmen, 1.12 3 NCB Janiuay and Malay) 3. Materials/Resource Recovery 0.09 2 Shopping Facility (Janiuay and Malay) 4. Waste Collection Bin 0.27 4 Shopping Total Project Cost 3.85 C. Consultancy Services 1. Project Management and 4.80 1 QCBS/FTP Cost ratio 80:20 Implementation Support 2. Design and Construction 1.84 4 QCBS/FTP Cost ratio 80:20 Supervision Consultants 3. IEC and Knowledge 2.09 1 individual

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Management 4. Capacity Building & 1.04 1 individual Enhancement Total Project Cost 9.77 Source: PPTA consultant.

6. International Competitive Bidding 268. The procedures to be followed for international competitive bidding shall be that of ADB Procurement Guidelines (2013, as amended from time to time). 269. Eligibility. (i) All members and donor countries can join the bid provided that they are not blacklisted or disbarred by any multilateral donor banks or by the UN. 270. (ii) A firm which has been engaged by the borrower to provide consulting services for the preparation or implementation of a project, and any of its affiliates, shall be disqualified from subsequently providing goods, works, or services, resulting from or directly related to the firm's consulting services for such preparation or implementation. 271. Advertising. Bidding of ICB contracts shall be advertised not only on ADB’s website but also on the website of UN’s Development Business to attract more international bidders. 272. Pre-qualification/post-qualification. (i) Post qualification shall be used unless prequalification is explicitly provided for in the loan agreement/procurement plan. Irrespective of whether post qualification or prequalification is used, eligible bidders (both national and foreign) shall be allowed to participate. 273. (ii) In the event where pre-qualification is used, interested firms shall be given no less than 42 days to prepare their pre-qualification submission. 274. (iii) When pre-qualification is required, the evaluation methodology shall be based on pass/ fail criteria relating to the firm’s experience, technical and financial capacities. 275. (iv) Qualification criteria shall be clearly specified in the bidding documents, and all criteria so specified, and only criteria so specified shall be used to determine whether a bidder is qualified. The evaluation of the bidder’s qualifications should be conducted separately from the technical and commercial evaluation of the bid. 276. (v) In carrying out the post-qualification assessment, the Employer/ Purchaser shall exercise reasonable judgment in requesting, in writing, from a bidder missing factual or historical supporting information related to the bidder’s qualifications and shall provide reasonable time period (a minimum of 7 days) to the bidder to provide response. 277. Preferences. (i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods. 278. (ii) Suppliers and contractors shall not be required to purchase local goods or supplies or materials. 279. (iii) Foreign suppliers and contractors from ADB member countries shall be allowed to participate, if interested, without first being required to associate with, or enter into joint venture with, local firms. 280. (iv) Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations, leaving compliance with these requirements for after award and before signing of contract.

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281. Member Country Restrictions. Bidders must be nationals of member countries of ADB, and offered goods must be produced in member countries of ADB.

7. National Competitive Bidding 282. The procedures to be followed for national competitive bidding shall be those provisions referring to open competitive bidding procedures set forth in Republic Act 9184, the Republic of the Philippines, effective 26 January 2003, and its Revised Implementing Rules and Regulations, effective 2 September 2009, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines, Section I and paras. 3.3 and 3.4 of Section III. 283. Eligibility (i) Eligibility screening shall not be applied. However, bids that do not contain any of the following documents will not pass the documentary compliance check: (1) evidence of the required financial, technical or production capability; (2) audited financial statements; (3) credit line, or cash deposit certificate; (4) bid security; and (5) authority of the bid signatory. 284. (ii) National sanction lists may be applied only with prior approval of ADB 285. Advertising. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised concurrently with the general procurement notices on ADB’s website. 286. Price of Bidding Documents. The price of bidding documents should be nominal, covering only reproduction and mailing/courier costs. 287. Price Ceiling. The approved budget for the contract (ABC) may be published, but it shall not be stated or implied that bid prices may not exceed the ABC, or that bid evaluation will in any way take into account the ABC. The ABC, budgetary allocation, ceiling price, or similar estimates of contract value may not be used to reject bids without prior concurrence of ADB. 288. Anticorruption provisions in Bidding Documents. Anticorruption provisions in the Instructions to Bidders section of ADB standard bidding documents (SBDs) shall be incorporated into NCB bidding documents including those under “Corrupt Practices” and “Eligible Bidders” clauses of the SBDs. 289. Single Bid Submission. When a lone bidder obtains a bidding document and submits a bid at the deadline for bid submission under a post qualification bidding, bid opening and evaluation shall not proceed but it shall be considered a failure of bidding. Before taking any alternative procurement action, a proper assessment of the cause of lack of participation shall be made and ADB prior approval shall be sought for any proposed subsequent action. 290. Shopping Method. Shopping for small value procurement shall be undertaken in accordance with the ADB Procurement Guidelines (2013, as amended from time to time).

G. Implementation Arrangements 291. Inter-Agency Project Steering Committee (IPSC). An inter-agency Project Steering Committee (IPSC) to be chaired by the DENR Secretary or designated supervising Undersecretary will be established to provide policy guidance, accomplish reform measures, oversee project implementation and ensure cooperation of all agencies involved in the Project. Indicative members of the IPSC are Secretary, DENR (chair); DOF (Vice Chair); Members: EMB Director, FASPO Director, DOST Director, NSWMC Executive Director, NGA representatives (DILG, DPWH, DOE, NEDA, DBM); one representative each from the League of provinces, cities and municipalities, mayors of subproject sites, and representative from the

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ADB. FASPO and PMO will be the IPSC secretariat. The IPSC will convene on a quarterly basis, or as the need arises. 292. The executing agency (EA) of the Project is the DENR and the implementing agency (IA) is the DENR-EMB. 293. EMB-Project Management Office (PMO). The DENR, through PMO established by EMB, will be the executing agency responsible for overall planning, implementation and management of the Project to attain the Project’s deliverables as defined under the loan agreement. The PMO will be responsible for (i) overall project planning, day-to-day implementation, monitoring and supervision; (ii) reporting to the IPSC, DENR and ADB; (iii) liaison with all stakeholders; and (iv) coordination of all activities in the Project. The PMO will need to be staffed with sufficient number of experienced professionals including a Project Director (Assistant Secretary level), and will have an independent office in the DENR Central Office, complete with equipment, furniture, and vehicles. 294. The participating LGUs will be the main local implementing agencies responsible for management of their respective subprojects from development, through implementation and subsequent operations and maintenance. A pool of technical experts/specialist or TA team, contracted either through a firm or individual technical specialists, will be provided to directly assist and support the PMO in project management, engineering design, construction supervision, procurement of goods and services, institutional development, capacity building, monitoring, community awareness and participation, and through awareness raising in schools. 295. A Memorandum of Agreement (MoA) shall be entered into by the Project (through DENR-EMB) and partner LGU that shall identify the coverage, agreements and commitments, roles and responsibilities of the Project and partner LGU, including the creation of necessary local implementation and monitoring structures (i.e. local project steering committee), approvals of local ordinances and resolutions (i.e. 10-year SWM Plan), compliance with necessary environmental and social safeguards, local financial and resource support in the implementation of the SWM project. Such MoA shall be endorsed and approved by the local Sanggunian and signing authorities provided to LGU representatives, as provided for under the LGC (RA 7160), to ensure the implementing LGU’s institutional and formal commitment and accountability. 296. The PMO shall be assisted by Project Implementation and Management Support consultants (PIMSC), composed of a pool of international and national technical specialists who shall be contracted and mobilized by the Project to provide technical advice and implementation support to the PMO as well as assist qualified LGU SWM project proponents in the preparation a detailed technical and financial feasibility study of LGU SWM options for submission to the Project’s loan-grant facility. 297. The cost of technical advisory services rendered by PIMSC to LGUs shall be part of the grant component to LGUs. Should the LGU SWM proponent opts to submit their Project- supported detail to another financing facility (i.e. GFI or private commercial loans or PPP), the proponent LGU shall be made to pay for the total cost of the technical advisory services provided by the Project. 298. National Solid Waste Management Commission Secretariat. As the agency primarily mandated to implement RA 9003, the NSWMC, through its Secretariat, shall provide national policy and technical advice and guidance to the IPSC/PMO on Project implementation issues and subproject options. It shall also be the venue to address strategic policy gaps and implementation issues that may arise or encountered during the implementation of the Project. The NSWMC also facilitate coordination with key national agencies support to the implementation of Project objectives and goals.

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299. EMB Regional Offices and Regional Ecology Centers. The EMB regional offices/ecology centers will (i) be the conduit of support from the PMO to the participating LGUs in coordination and partnership with the provincial government PENRO, DILG regional and provincial offices and other relevant partners; (ii) assist the Project in the implementation, coordination and monitoring of subproject activities with partner LGUs and agencies; (iii) provide additional training support and assistance to implementing partner LGUs and communities; and (iv) serve as the conduit of feedback to the national level for monitoring and evaluation of the project and to help guide development and refinement of SWM strategies. As such, they will also act as facilitators of training and awareness-raising for the participating LGUs and other stakeholders in the region. Training and awareness raising activities to the stakeholders will be delivered through the existing academic institution in the region (e.g. university and colleges) and through awareness-raising in schools. 300. Proponent LGUs. The proponent LGU shall be the main recipient entity responsible for the implementation of the approved SWM project and compliance with the grant facility conditions of their approved SWM project. The proponent LGU shall create and mobilize the necessary institutional, administrative, policy and resource support, to ensure that project objectives are satisfied and in compliance with the grant agreement. The implementing LGU shall create a local project steering committee chaired by the Mayor, which shall serve as the main local project monitoring and implementation body with the City/Municipal Environment and Natural Resource Office (C/MENRO) or Solid Waste Management Office/Unit (SWMO/U) as local implementing unit63. The local project steering committee (PSC) shall be responsible for ensuring that the overall objectives and provisions of the project grant agreement are complied with and fully implemented. It shall also be responsible for providing overall implementation guidance and policy support to the effective implementation of the project. The PSC shall be responsible for the submission of progress and implementation reports to the DENR-EMB. The members of the PSC comprise the following:  Sanggunian Bayan representative (i.e. Committee on Environment)  Association of Barangay Chairs president  Local private sector representative (1)  Local NGO/CSO representative (1)  Local SWMB representative (1); and,  Local C/MENRO or SWMU/O 301. The C/MENRO shall serve as the lead local implementing unit of the SWM Project and responsible for the day-to-day implementation of all local SWM-related activities and programs in the LGU. It shall also be responsible for the submission of accurate and updated monitoring reports to the local project steering committee and coordination of Project implementation especially with respect to necessary training and technical assistance to the LGU and local communities (Figure 3.1). Figure 3.1: LGUs PSWMS Project Implementation Arm

63 In highly mature or developed LGUs, a local solid waste management unit/office (SWMU/O) is created distinct from the C/MENRO. On the other hand, in poorer LGUs, the local engineering or general services office (GSO) is given the task of handling SWM operations, particularly, collection and disposal.

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Source: PPTA consultant. 302. The proponent LGU shall be responsible for obtaining and submitting aall the necessary formal and legal resolutions and authorities from their local councils to participate and enter into a loan agreement under this Project as provided for under the LGC (RA 7160). These shall include passage and adoption of its 10-year SWM Plan, creatioon of local project steering committee, SWM project grant agreement and supplementary documents, among others. 303. In the case of an alliance or cluster of LGUs, a lead LGU proponent shall serve as the main recipient entity in behalf of the alliance. The members of the LGU alliance shall be responsible for ensuring and obtaining the necessary resolutions, ordinances, and authority from their respective local councils and executives for their participation and engagement in the LGU alliance as well as in the SWM project proposal and grant application. A Memorandum of Agreement (MoA) or joint undertaking of the LGU allliance members for the common SWM facility, which shall specifically define among other things each LGU member’s roles, responsibilities, institutional, administrative, resource and financial commitments, shall be formally established and ratified by their respective local councils. All members of the LGU alliance shall ensure their commitment and compliance with approved loan conditions under the Project, including timely payments and release of their agreed loan sharing/payment arrangements/contributions. 304. The Project, through, the PIMSC can support the LGUs in the technical and financial preparation and design of their SWM project proposal as well as subsequently assist the LGUs in the formulation, preparation, bidding and negotiation of service contracts with potential private sector groups in the operations and maintenance of the SWM facility, among other things. 305. Other LGU implementing bodies. Other LGU units or implementing bodies (e.g. Environment and Natural Resources Office, Engineering/General Services Offices, Building and Business Permits and Licensing Offices, among others) maybe designated or continue to directly handle specific aspects of the operations, mannagement and monitoring of the LGU’s SWM program not covered by Project-supported SWM facility. These may incclude

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project establishment and operations of community-level MRFs and recycling/reuse/reduce (3Rs) programmes through barangay IEC campaigns; monitoring of technical and environmental emission; handling, storage and disposal standards and safeguards for air, water and special/hazardous wastes; building and location permits; contract obligations; and compliance, among others. 306. The overall implementation arrangement is depicted in Figure 3.2 Figure 3.2 Project Organization Structure

Source: PPTA consultant. ADB = Asian Development Bank, CBE = Capacity Building and Enhancement, DENR = Department of Environment and Natural Resources, DILG = Department of Interior and Local Government, DSC = Design, supervision and management consultant, EMB = Environment Management Bureau, IECKM = Information, Education, Communication and Knowledge Management, LGU = Local Government Unit, NEC = National Ecological Center, NSCMCS = National Solid Waste Management Commission Secretariat, PMIS = Project Management and Implementation Support, PMO = Project Management Office, PENRO = Provincial Environment and Natural Resources Office, PSC = Project Steering Committee, REC = Regional Ecological Center

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IV. PROJECT BENEFITS, IMPACTS, AND JUSTIFICATION A. Project Benefits and Beneficiaries 307. The project will aim to promote inclusive growth in the participating LGUs, and avoid or mitigate impacts, social risks and vulnerabilities among the poor sectors of the community arising from inefficient SWM. 308. The project beneficiaries will benefit from the project significantly through the improvement of SWM facilities and collection system in all of the project sites which will result in improved environmental surroundings, better health and sanitation, and increased employment opportunities due to project implementation. Through an improved SWM service delivery, waste management at the household levels and their immediate vicinities is also expected to improve with enhanced participation of households and residents. With enhanced attitude and knowledge in proper waste disposal, reduction in indiscriminate throwing of garbage on roadsides, rivers, coastal areas and the seas may be considered as an important upshot. Consequently, incidence of environmental pollution and water-borne diseases will decrease. 309. Potential employment opportunities will be available for the project beneficiaries, including construction work at the land fill sites or at the MRF facilities, and sorting or the creation of livelihood activities using recyclable materials into finished products. As the environment is improved, investments and business opportunities will increase (e.g. Boracay for tourism and indirectly, hotels, food business, goods and services, etc.). Overall, improvement in wellness will further enhance productivity among the project beneficiaries.

B. Social Development and Gender

1. Social Objectives in Project Formulation 310. Development of major SWM infrastructure can have impacts on individuals or communities including their demographic and economic development. This means that people are affected if they lose their income, private property, income source, or become displaced from their homes or properties. These losses, in turn, would have negative impacts on the livelihoods of affected persons. So, the main social objective in project formulation is to avoid or minimize the adverse social impacts. Where the negative impact is unavoidable, it should establish measures to mitigate adverse social impacts through compensation or any other means so that their living standard can be restored in the pre-project condition at no cost to themselves or if possible improve their standard of living to better than before. 311. The key social objectives in the formulation of the project address the three core issues of SWM: collect, practice 3R (reuse, recycle, reuse), and dispose. The objective of SWMSP is to equip the LGUs with proper infrastructure and capacities to help them fulfil their responsibility for SWM in accordance with RA 9003. Quality of services will determine the ownership and willingness to pay by the community thereby ensuring sustainability of the project investment by making it a vital factor in improving public health and quality of urban life. Affordability of the services to the community has to be considered as one of the key factors during project formulation to make the components viable and easily acceptable to the community. The project is expected to increase the operational efficiency of SWM and to improve service delivery. 312. A socio-economic study has also been undertaken to (i) determine the socio-economic profile of project beneficiaries in the proposed four pilot areas; (ii) establish an indicative amount residents can afford to pay and are willing to pay for SWM services, (iii) determine

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project residents’ concerns and issues (e.g., gender/women and poverty issues, etc.) which may affect their full participation and in accessing the full benefit of the project; and (iv) assess and define stakeholders’ practices, what they can contribute and their capacity needs to strengthen their participation and contribution to project sustainability. 313. Implementation of the Project will have a range of positive and negative socio-economic impacts. Positive impacts include effective SWM, improved ground water and surface within the service area, and positive impacts on health and quality of life for the LGU residents due to improved solid waste collection and disposal. The Project will provide a net positive socio- economic impact by improving solid waste treatment facility to the urban poor as well as to other groups. Furthermore, it will provide employment opportunities to the urban poor during and after construction of the facility. 314. There will be no acquisition of land or private assets as a result of the Project. There will be no displacement of people either. The Project falls under Category B, which requires a Resettlement Plan as approved by ADB.

2. Mitigation Measures 315. While there is a high percentage among sample household heads who perceive that the Project has positive impacts which include benefits from cleaner environment and decreased air and land pollution, there is a segment who are not willing to pay for SWM services indicating a need for sustained public participation, IEC component, incorporating a participatory and collaborative process that would involve stakeholders and adopting a one-on-one communication strategy and interpersonal approach to discuss violations, penalties, and issues and concerns to ensure strict implementation of SWM ordinance and sanctions, all of which are embodied in the Participation Plan and Stakeholder Communication Strategy for each of the areas. 316. The Malay SWM practice of creating a Barangay Solid Waste Management Team (BSWAT) who make the rounds daily touching base with households and constantly reminding them of the need for waste segregation and proper disposal of waste is a good practice that can be adopted in the other areas. Similarly, in Brgy. Balili in La Trinidad, a group of women solid waste advocates are hired by the barangay at Php1,700 a month each to educate households on waste segregation, monitor household segregation and guard collection points to ensure compliance with garbage disposal times and ensure that garbage from other barangays are not dumped in their collection bins. Furthermore, in other barangays (Beckel, Wangal, Alapang), women advocates do these activities on a voluntary basis. 317. Overall, the project design measures were formulated to effect a positive attitudinal and behavioural change among residents to ensure sustained SWM practice. Face-to-face or personal modes of communication and the employment of various communication platforms, for instance print/radio media, along with creative programs such as annual contests/recognition awards for Best SWM community practice are among the proposed mechanisms. The schools’ IEC and advocacy role shall also be encouraged starting with the increased awareness and education of teachers and students on SWM which is foreseen to diffuse and propagate SWM knowledge to entire communities. To address project associated gender issues, a Gender Action Plan has also been developed to include, among others, the provision of alternative livelihood to low-income male/female households and waste pickers/sorters, as well as to address the issue on women’s limited participation in SWM due to work overload and preoccupation on household chores. To help implement and strengthen community participation and gender concerns, a community participation specialist with gender background/experience shall be hired locally.

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3. Gender 320. A poverty and social assessment was conducted to determine the socio-economic characteristics of the project beneficiary community, including status of SWM practice, issues and problems. It included poverty, social and gender analyses. The assessment identified needs and priorities, and opportunities for project beneficiaries. Based on this assessment, a Summary Poverty and Reduction Strategy, Gender Action Plan and Stakeholders Communication Strategy were prepared, with measures to enhance project benefits and mitigate potential risks or negative impacts to the project beneficiary population. 321. The Project will improve environmental condition and public health and promote investment opportunities including those for the poor and vulnerable households. While it brings benefit to women from cleaner collection points and more regularize pick-up services of garbage, lower income male and female-headed households run the risks of not being able to pay garbage fees due to negative income. Providing them livelihood skills training and capital assistance and support from LGU-MSWDO support services will mitigate this problem. In addition to ensuring access through government social services, key poverty and social inclusive design features of the Project include provision of SWM materials for better appreciation of project benefits and their responsibilities, and helping them in time management and enhancing awareness of the need to take care of their environment. 322. Changing attitude and behaviour towards SWM has always been a challenge, requiring continuous follow-up of household segregation efforts and proper waste disposal by SWM monitors, including discussions of issues and problems with households to resolve them. 323. A gender analysis was conducted to determine specific gender actions and measure. The Gender Action Plan (GAP) addresses identified issues following key gender design features and targets. The GAP provides mitigation measures on issues of affordability and willingness to pay among lower income male- and female-headed households. In addition, it provides skills enhancement to current women SWM monitors on monitoring and conducting advocacy and mobilization activities. It also provides training on gender-sensitive approaches to LGU SWM staff to enable them to do more gender-effective planning, implementation and monitoring of SWM activities. Gender-sensitive designs in developing educational and SWM materials are also a focus. Gender-disaggregated indicators for project performance monitoring and evaluation will be identified with the project management unit. 324. A Gender Specialist will be hired to help develop and implement gender-based SWM activities and provide LGU SWM staff with advice during project implementation.

C. Involuntary Resettlement and Indigenous People

1. Review of Resettlement Policies and Legal Framework 325. There are existing laws that govern land acquisition and resettlement in the Philippines. These laws, together with the ADB’s Safeguard Policy Statement, shall govern the land acquisition and compensation of affected households under the Project. 326. The Philippine Constitution (1987) Article III, Section 1 states that “No person shall be deprived of life, liberty or property without due process of law, nor shall any person be denied equal protection of the law.” Section 9 provides: “Private property shall not be taken for public use without just compensation; and Article XIII, Section 10 states: “Urban or poor dwellers shall not be evicted nor dwellings demolished, except in accordance with the law and in a just and humane manner. No resettlement of urban or rural dwellers shall be undertaken without adequate consultation and the communities where they are to be relocated.” Section 14 of

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Article II states that “it recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men.” 327. DENR is guided by the Environmental Impact Statement or EIS system, which was established under Presidential Decree (PD) No. 1586 with its implementing rules and regulations (IRR) contained in DENR Administrative Order (AO) No. 2003- 30. The EIS System requires all projects to be subject to assessment of impacts, one of which is on the human environment in order that any adverse effects are mitigated. In its implementation, resettlement and compensation assistance including provision of income and livelihood opportunities for the affected have been among the important measures to counteract socio-economic displacement. 328. DILG is the national agency that primarily enforces the Local Government Code of 1991 (R.A. 7160), Section 19 of which allows the local government units to exercise the power of eminent domain64 for public use, with several conditions. Also, under the Code’s Section 16 - General Welfare, “… local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self- reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants.” 329. R.A. 7160 further states that “It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations with appropriate local government units, nongovernmental and people's organizations, and other concerned sectors of the community before any project or program is implemented in their respective jurisdictions (Section 2.c). 330. Section 26. Duty of National Government Agencies in the Maintenance of Ecological Balance - It shall be the duty of every national agency or government-owned or controlled corporation authorizing or involved in the planning and implementation of any project or program that may cause pollution, climatic change, depletion of non-renewable resources, loss of crop land, rangeland, or forest cover, and extinction of animal or plant species, to consult with the local government units, nongovernmental organizations, and other sectors concerned and explain the goals and objectives of the project or program, its impact upon the people and the community in terms of environmental or ecological balance, and the measures that will be undertaken to prevent or minimize the adverse effects thereof. 331. Section 27. Prior Consultations Required - No project or program shall be implemented by government authorities unless the consultations mentioned in Sections 2 (c) and 26 hereof are complied with, and prior approval of the sanggunian concerned is obtained: Provided, That occupants in areas where such projects are to be implemented shall not be evicted unless appropriate relocation sites have been provided, in accordance with the provisions of the Constitution.

64 A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property.

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332. The Urban Development and Housing Act of 1992 (R.A. 7279), which applies to urban and urbanizable areas, defines in Section 22 the Livelihood Component of, among others, resettlement projects where government agencies dealing with development of livelihood programs and grant of livelihood loans shall give priority to social housing beneficiaries. Section 29 on Resettlement provides for relocation, resettlement, access to employment and livelihood opportunities for persons living in danger zones, including garbage dumps. 333. Section 21. Basic Services - Socialized housing or resettlement areas shall be provided by the local government unit or the National Housing Authority in cooperation with the private developers and concerned agencies with the following basic services and facilities: (i) Potable water; (ii) Power and electricity and an adequate power distribution system; (iii) Sewerage facilities and an efficient and adequate solid waste disposal system; and, (iv) Access to primary roads and transportation facilities. The provision of other basic services and facilities such as health, education, communication, security, recreation, relief and welfare shall be planned and shall be given priority for implementation by the local government unit and concerned agencies in cooperation with the private sector and the beneficiaries themselves. 334. Section 22. Livelihood Component - To the extent feasible, socialized housing and resettlement projects shall be located near areas where employment opportunities are accessible. The government agencies dealing with the development of livelihood programs and grant of livelihood loans shall give priority to the beneficiaries of the Program. 335. Section 23. Participation of Beneficiaries - The local government units, in coordination with the Presidential Commission for the Urban Poor and concerned government agencies, shall afford Program beneficiaries or their duly designated representatives an opportunity to be heard and to participate in the decision-making process over matters involving the protection and promotion of their legitimate collective interests which shall include appropriate documentation and feedback mechanisms. They shall also be encouraged to organize themselves and undertake self-help cooperative housing and other livelihood activities. They shall assist the Government in preventing the incursions of professional squatters and members of squatting syndicates into their communities. 336. The Indigenous Peoples' Rights Act (IPRA) of 1997 (R.A. 8371) explicitly upholds the right of Indigenous Peoples (IPs)/Indigenous Cultural Communities (ICCs) to “determine and decide priorities for development affecting their lives, beliefs, institutions, spiritual well-being, and the lands they own, occupy or use. They shall participate in the formulation, implementation and evaluation of policies, plans and programs for national, regional and local development which may directly affect them” (Sec. 17). They also have the “right to participate fully, if they so choose, at all levels of decision-making in matters which may affect their rights, lives and destinies through procedures determined by them as well as to maintain and develop their own indigenous political structures (Sec. 16). It further states that IPs/ICCs shall have the priority rights in the harvesting, extraction, development or exploitation of any natural resources within the ancestral domains” (Sec. 57). 337. The IPRA’s IRR (National Commission on Indigenous Peoples AO No.1 Series of 2008) identifies policies, programs, projects, plans and activities subject to free and prior informed consent, including (but not limited to) displacement and relocation, and policies affecting the general welfare and the rights of ICCs/IPs. 338. Free and prior informed consent is defined under IPRA as “the consensus of all members of the IPs/ICCs, to be determined in accordance with their respective customary laws and practices, free from any external manipulation, interference and coercion, and obtained

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project after fully disclosing the intent and scope of the activity in a language and process understandable to the community” (Sec. 3.g). 339. Republic Act 9710 and Implementing Rules and Regulations (series of 2010), known as the “Magna Carta of Women” provides for the following, in regards to the rights of women: equal treatment before the law; protection from all forms of violence; participation and representation; equal access and elimination of discrimination against women in education, scholarships and training; equal rights in all matters related to marriage and family relations; comprehensive health services and health information/education; non-discrimination in employment; and other items. 340. Section 7 of RA 6389 of 1971 (An Act Amending Republic Act Numbered Thirty-Eight Hundred And Forty-Four, As Amended, Otherwise Known As The Agricultural Land Reform Code, And For Other Purposes) states the following for agricultural land subsequently determined as suited for urban land uses: “The landholding is declared by the department head upon recommendation of the National Planning Commission to be suited for residential, commercial, industrial or some other urban purposes: Provided, That the agricultural lessee shall be entitled to disturbance compensation equivalent to five times the average of the gross harvests on his landholding during the last five preceding calendar years". 341. Specific to activities of the Department of Agrarian Reform (DAO), Section 17 of R.A. 6389 further states, “In determining the just compensation of the land to be expropriated pursuant to this Chapter, the Court shall consider as basis, the fair market value, without prejudice to considering the assessed value and other pertinent factors.” 342. R.A. 6657, The Comprehensive Agrarian Reform Law (1988), states that landowner shall retain his share of any standing crop un-harvested at the time the DAR shall take possession of the land under Section 16 of this Act, and shall be given a reasonable time to harvest (Section 28). 343. R.A. 7192, the Women in Development and Nation Building Act (1992) promotes the integration of women as full and equal partners of men in development and nation building. All government departments will ensure women benefit equally and participate directly in the development programs and projects specifically those funded under foreign development assistance, to ensure their full participation and involvement in the development process; to provide income and employment opportunities to women and asses extent to which such programs helped in enhancing their self reliance. 344. R.A. 7835 (1994) describes the National Shelter Program Implementation/Resettlement Program. The National Housing Authority shall acquire land and develop it to generate serviced home lots for families displaced from sites earmarked for government infrastructure projects, those occupying danger areas such as waterways, railroad tracks and those qualified for relocation and resettlement under RA 7279. 345. R.A. 8974, an Act to facilitate the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure Projects (November 2000) provides the different basis for land valuation for modes of acquisition, negotiated sale and expropriation. The law also provides for the valuation of structures and/or improvements on the land based on the amount necessary to replace the structure or improvements thereon. 346. DPWH’s Land Acquisition, Resettlement, Rehabilitation and Indigenous Peoples Policy (LARRIPP) (March 2007) provides uniform standards in resettlement planning. It also contains safeguard instruments for IPs affected by both foreign and locally funded infrastructures implemented by DPWH. The LARRIP contains policies related to involuntary resettlement, the

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project legal basis for land acquisition and involuntary resettlement, compensation and entitlement, policy framework for IPs, implementation procedures that ensure grievances are appropriately acted upon, and measures to ensure public participation both during Resettlement Action Plan preparation and implementation. The document also provides for internal and external monitoring of the action plan implementation. 347. Executive Order (EO) 113, s. 1955 (Establishing the Classification of Road) states that national roads shall have a right-of-way (ROW) width of at least 20 meters in rural areas which may be reduced to 15 meters in highly urbanized areas and shall be at least 60 meters in unpatented public lands; ROW shall be at least 120 meters though natural forested areas for aesthetic or scientific value. 348. E.O. 152, S. 2002. Designating The Presidential Commission For The Urban Poor (PCUP) As The Sole Clearing House For The Conduct Of Demolition And Eviction Activities Involving The Homeless And Underprivileged Citizens And Establishing For The Purpose A Mechanism To Ensure Strict Compliance With The Requirements Of Just And Humane Demolition And Eviction Under The Urban Development And Housing Act Of 1992, And For Other Purposes. Prescribes the broad monitoring of all types of eviction and demolitions involving the underprivileged and homeless citizens by the PCUP. All national government agencies and local government units should apply for Certificate of Compliance prior to the implementation of eviction and demolition 349. E.O. 1035, June 25, 1985 (Providing The Procedures And Guidelines For The Expeditious Acquisition By The Government Of Private Real Properties Or Rights Thereon For Infrastructure And Other Government Development Projects) states the following: 350. Acquisition through Negotiated Sale. As an initial step, the government implementing agency/instrumentality concerned shall negotiate with the owner of the land that is needed for the project for the purchase of said land, including improvements thereon. In the determination of the purchase price to be paid, the Department of Finance and the provincial/city/municipal assessors shall extend full assistance and coordinate with the personnel of the government implementing agency concerned in the valuation of lands and improvements thereon taking into consideration the current and fair market value declared by the owner or administrator of the land, or such current market value as determined by the assessor, whichever is lower, prior to the negotiation (Section 6). 351. Expropriation. If the parties fail to agree in negotiation of the sale of the land as provided in the preceding section, the government implementing agency/instrumentality concerned shall have authority to immediately institute expropriation proceedings through the Office of the Solicitor General or the Government Corporate Counsel, as the case may be. The just compensation to be paid for the property acquired through expropriation shall be in accordance with the provisions of P.D. No. 153365. Courts shall give priority to the adjudication

65 Establishing A Uniform Basis For Determining Just Compensation And The Amount Of Deposit For Immediate Possession Of The Property Involved In Eminent Domain Proceedings. Section 1. In determining just compensation for private property acquired through eminent domain proceedings, the compensation to be paid shall not exceed the value declared by the owner or administrator or anyone having legal interest in the property or determined by the assessor, pursuant to the Real Property Tax Code, whichever value is lower, prior to the recommendation or decision of the appropriate Government office to acquire the property. Section 2. Upon the filing of the petition for expropriation and the deposit in the Philippine National Bank at its main office or any of its branches of an amount equivalent to ten per cent (10%) of the amount of compensation provided in Section 1 hereof, the government or its authorized instrumentality agency or entity shall be entitled to immediate possession, control and

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project of cases on expropriation and shall immediately issue the necessary writ of possession upon deposit by the government implementing agency/instrumentality concerned of an amount equivalent to ten per cent (10%) of the amount of just compensation provided under P.D. No. 1533; Provided, That the period within which said writ of possession shall be issued shall in no case extend beyond five (5) days from the date such deposit was made (Section 7). 352. Conditions Precedent to Foreign Loan Negotiation. As a general rule, negotiations for foreign loans to finance specific construction projects and other projects requiring acquisition of private real property or rights thereon shall be undertaken only after the negotiation for such acquisition with the property owner/s have been completed or the expropriation proceedings have been initiated: Provided, That before the filing of expropriation proceedings, the financing institution must have already favorably appraised the project: Provided, further, that exceptions to the above rule may be allowed by the Investment Coordination Committee (ICC) on a case- to-case basis depending on the type, size and technology of the project involved. In such case, the ICC shall determine the extent/stage of property acquisition that may be required as a pre- condition for project approval or for negotiation of a foreign loan to finance the project (Section 8). 353. The amount of financial assistance to be given to tenants or farmers of agricultural lands which is to be determined by the implementing agency concerned in consultation with appropriate agencies, shall be equivalent to the value of the gross harvest for one year on the principal and secondary crops of the area acquired, based on the average annual gross harvest for the last three preceding crop years: Provided, that in no case shall the financial assistance be less than P15,000.00 per hectare. Payment of the financial assistance shall be made at the time of relocation of the tenants/farmers (Section 18). 354. The Harmonized Gender and Development Guidelines (2007), published by NEDA and on Women, aims to provide a common set of analytical concepts and tools for integrating gender concerns into development programs and projects.

2. Asian Development Bank Policy 355. The objectives of the ADB Safeguard Policy Statement (2009) are (a) to avoid impacts on people and the environment, where possible; (b) where avoidance is not possible, minimize, mitigate, or compensate for adverse project impacts on the environment and the affected people; and (c) help the executing agency strengthen its safeguard system. Towards this end, ADB resettlement policy includes the following principles: - Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of affected persons, including a gender analysis, specifically related to resettlement impacts and risks. - Improve, or at least restore, the livelihoods of all affected persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be

disposition of the real property and the improvements thereon, including the power of demolition of necessary, notwithstanding the pendency of the issues before the courts.

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restored, and (iv) additional revenues and services through benefit sharing schemes where possible. - Provide physically and economically affected persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. - Improve the standards of living of the affected poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. - Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement. - Ensure that affected persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. - Prepare a resettlement plan elaborating on affected persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.. - Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an acceptable place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. - Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s cost and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. - Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. - Monitor and assess resettlement outcomes, their impacts on the standards of living of affected persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 356. The objective of ADB Policy on Indigenous Peoples as set out in the Safeguard Policy Statement (2009) is to design and implement projects in a way that fosters full respect for Indigenous Peoples’ identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the Indigenous Peoples themselves so that they (i) receive culturally appropriate social and economic benefits, (ii) do not suffer adverse impacts as a result of projects, and (iii) can participate actively in projects that affect them. 357. The ADB Policy on Gender and Development (2006) adopts gender mainstreaming as a key strategy for stimulating gender equity, and for guaranteeing that women participate and that

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project their needs are unambiguously addressed in the decision-making process for development activities. For projects that have the potential to have substantial gender impacts, a gender plan (GAP) is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. 358. Along with the ADB Safeguard Policy Statement (2009), ADB’s Public Communications Policy (2011) also requires timely disclosure of key project information to the general public and project stakeholders, including women, the poor and other vulnerable groups in a manner, form, and language(s) accessible to them and in an accessible place. Information to be disclosed includes the scope of land acquisition, compensation and rehabilitation policy and measures that will be taken to restore the living standards of Project-affected persons to at least pre- project level.

3. Project Resettlement Policy 359. In light of foregoing Legal and Policy Framework discussions, the Government of the Philippines (GOP), through DENR, commits itself to the following principles in the implementation of the Project: - Acquisition of land and other assets, and resettlement of people will be avoided or minimized as much as possible by identifying potential alternative project designs and suitable social, economic, operational and engineering solutions that have the least impact on the population. - Project stakeholders, especially AHs and host communities (where subprojects involve physical displacement), will be meaningful consulted and given the opportunity to participate in matters that will have impacts on their lives during the planning, design, implementation and operation of the Project. Plans for the acquisition of land and other assets will be carried out in consultation with AHs who will receive prior information of the compensation, relocation and other assistance available to them. The comments and suggestions of AHs and host communities will be taken into account. - Particular attention will be given to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. - Existing cultural and religious practices of displaced persons and their host populations shall be respected and, to the extent possible, preserved. - No land acquisition or site clearing will be done inside the ROW in anticipation or ahead of it being considered for implementation under the Project. Similarly, no land acquisition or site clearing will be done inside the ROW until and after the RP has been agreed upon by GOP and ADB, and until and after all entitlements due to the AHs as provided for in this resettlement policy have been delivered. - All the affected households (without any discrimination such as household headed by women, disabled elderly, landless and people living below the national poverty line) confirmed to be residing in, doing business, or cultivating land or having right over resources within the sub project affected area or land to be acquired or used for sub project during the conduct of the DMS and census of AH (Cut-off-Date) are eligible for resettlement assistance and compensation for non-land assets at replacement cost as mentioned in the entitlement matrix.

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- AHs residing, working, doing business and/or cultivating land within the Project impacted areas during the detailed measurement survey (prior to the cut-off-date), are entitled to be compensated for their lost assets, incomes and businesses at replacement cost prevailing at the time of compensation, and, depending on the severity of impact on their livelihood and income capacity, will be provided with rehabilitation measures to improve or restore their pre-Project living standards, income-earning capacity and production levels. - There will be no deductions in compensation payments for structures or other affected non-land assets for (i) salvage value and/or depreciation; (ii) taxes; (iv) fees or other transaction costs. For affected land, there will be no deductions in compensation payments for (i) taxes; (ii) fees or other transaction costs; (iii) registration and documentation fees. - If ownership over any affected asset is under dispute, the compensation for the same will be held in a court designated bank until its lawful owner is decided by competent legal authorities. - AHs that lose only part of their physical assets will not be left with a portion that will be inadequate to sustain their current standard of living as determined by AHs together with Project engineers during detailed design. If not adequate to sustain current standard of living, the entire asset will be considered as totally affected and will be acquired by the Project. - Affected shop/business owners, if any, will be assisted in gradually dismantling and setting up their shops in a new location to be agreed with the LGU, preferably in the residual area of the ROW (to be confirmed during detailed design) and in a way that will allow them to gradually phase out their operation in their present location place and gradually begin their operation in their new place. Under this arrangement, disruption in the operation of shop/business owners will be minimized, thereby averting severe impact on the AHs’ livelihood. - Affected households presently cultivating plots inside the ROW will be allowed to continue cultivating the residual area of their cultivated plots in the ROW but outside the COI. If DMS indicates that the loss of these farmers is equivalent to 10% or more of their total livelihood or income from various sources, the LGU in coordination with concerned government agencies will assist in finding an affordable replacement land with similar productive attributes for the farmers to lease, or based on preference of the affected household. - Temporarily affected land and communal infrastructure will be restored to pre-project conditions. - Any acquisition of, or restriction on access to, resources owned or managed by the AHs as a common property, e.g., communal forest, communal farm, will be mitigated by arrangements that will ensure access of those AHs to equivalent resources on a continuing basis. - There shall be an effective mechanism for hearing and resolving Project-related grievances during the planning, updating and implementation of the RP/CAP. - Special measures will be incorporated in the RP/CAP to protect socially and economically vulnerable groups who face greater risk of further hardship. Appropriate assistance will be provided to help AHs belonging to any of these vulnerable groups improve their socio-economic status.

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- Resettlement planning, implementation and management will guarantee that gender concerns are incorporated. - Adequate resources will be identified and committed during the preparation of RPs and any required CAP. This includes sufficient budgetary support that is fully committed and made available to cover resettlement costs within the agreed implementation period; and, adequate human resources for supervision, liaison and monitoring of land acquisition, resettlement and rehabilitation activities. - Culturally appropriate and gender-sensitive reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. - The RP/CAP will be translated in Filipino and/or other local dialects, as appropriate to the subproject area, and placed in barangay halls for the information of the AHs as well as other interested groups. A Project information booklet (PIB) will be prepared in Filipino and/or other local dialects as appropriate (PIB will contain information on sub- project activities; scope of involuntary resettlement; policy on resettlement; grievance redress mechanism; and schedule of project implementation) and will be distributed to each AH. - No civil works shall take place for any project component until (a) compensation has been fully paid to AHs; (b) agreed rehabilitation measures are in place, and (c) the acquired land is free from all encumbrances. Civil works contractors will not be issued notice of possession or notice to proceed (NTP) for any section or segment until these conditions are fulfilled. 360. All AHs identified in the project-impacted areas as of the cut-off date66 will be entitled to compensation and/or assistance for their affected assets as described below. Those who encroach into the project area and build any new structures after the cut-off date will not be entitled to compensation or other assistance. These entitlements may be enhanced, as necessary, following the conduct of DMS during RP preparation in consultation with the AHs to ensure that their livelihoods are restored, if not improved. 361. A Resettlement Framework (RF) has been prepared to guide the preparation of sample resettlement plans (RPs) for pilot sub-projects with land acquisition and resettlement impacts and other RPs. The RF sets out the objectives, principles, eligibility criteria and entitlements for AHs who may be affected by the Project based on (i) the national and legal context; and, (ii) ADB’s Safeguards Policy Statement (SPS) (2009). It outlines the details on entitlements, compensation and assistance, participation and consultation procedures and grievance redress mechanisms that will be set up to assist AHs through the process of land acquisition and resettlement in order to enable them to attain an equivalent or better living standard than they had before the project.

4. Land Acquisition and Resettlement Impacts of Pilot Sub-projects 362. La Trinidad Sub-project. All civil works apart from the establishment of 5 Barangay Materials Recovery Facilities (MRFs) will be carried out within (i) the existing SLF site, which is

66 This will be the date the DMS is held, preceded by public meetings held with affected barangays to discuss said components, compensation policy, the need to conduct the DMS, and the policy regarding cut-off date.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project located on land owned by the LGU67; and, (ii) the old Wangal dumpsite (for closure/rehabilitation), which is on land owned by former La Trinidad Mayor Artemio Galwan68. The existing access road to the SLF site that has been available since the SLF started operations in 2010 is within the Barangay Alno compound owned by the government and the rehabilitation works can be accommodated within the compound. No specific sites/locations have yet been identified for the 5 MRFs, as these will be defined within the barangay level SWM groups during detailed design. Any land acquisition and resettlement (LAR) impacts associated with the MRF component will be addressed as per the Project Resettlement Framework. Based on preliminary design, no land acquisition and physical displacement is linked with the sub- project. However, it is expected that households that currently derive income from separating and selling recyclable waste in the SLF will be economically affected due to project investments that support more efficient segregation at source (only residual wastes should be disposed in the SLF). One household that has been operating a materials recovery facility business in the old Wangal dumpsite will also experience economic displacement due to rehabilitation of said dumpsite. 27 households (121 persons) that currently derive income from separating and selling recyclable waste in the Alno SLF will experience economic displacement (loss of livelihood/income sources) due to the Project. Additionally, one (1) household (14 persons) that currently derives income from MRF operation in the old Wangal dumpsite will no longer be able to continue business operations once said dumpsite is rehabilitated. All 28 affected households (AHs) with 135 affected persons (APs) are considered severely affected, since the income they derive from waste picking/MRF operation contributes 14% to 100% of their total monthly household income. Hence a Resettlement Plan (RP) has been prepared in accordance with ADB safeguards requirements. 363. Janiuay Sub-project. All civil works will be carried out within a 6.2 ha plot of land in Barangay Caraudan that was acquired by the LGU via negotiated acquisition from a single land owner in 2013. There is an existing access road to the site that can accommodate the proposed civil works. Thus, there will be no land acquisition and physical displacement linked with the sub-project. However, the closure of the existing Barangay Jibolo dumpsite in Janiuay and enhanced SWM system to be supported by the Project will involve more efficient segregation at source (i.e. individual houses and establishments), particularly because only residual (not mixed) waste should be disposed in a SLF facility. Hence, the eighteen (18) households with 95 affected persons (APs) that currently derive income from separating and selling recyclable waste in the existing dumpsite in Barangay Jibolo, Janiuay will experience economic impacts (loss of livelihood/income sources) due to the Project. Seventeen (17) out of these 18 affected households (AHs), or 94% of the total, with 87 APs, will lose 10% or more of their total income sources due to closure of the Jibolo dumpsite and are thus considered severely affected. A resettlement plan (RP) has been prepared for the sub-project in accordance with ADB’s Safeguard Policy Statement (SPS) requirements. 364. Del Carmen Sub-project. Implementation of the Del Carmen sub-project will not involve any land acquisition or any permanent or temporary involuntary resettlement impacts. The Del Carmen LGU purchased the proposed SLF site for the solid waste management facility in 2011,

67 The 9.8-hectare land in Sitio Induyan, Barangay Alno was acquired by the LGU in the period 2003 to 2004 through negotiated acquisition of 2 adjacent parcels from a single land owner (Refer to Appendix 5 for supporting documentation). 68 According to Mr. Arth Pedro from La Trinidad LGU (correspondence was on June 16, 2014), former Mayor Galwan has long been aware of the need to close the old Wangal dumpsite, as the LGU’s plans to establish a sanitary landfill in Barangay Alno had already started during his term.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project two (2) years before the inclusion of the municipality as a pilot area for the PPTA. While the same property is currently used as a dumpsite for the irregular collection of solid waste from the households and establishments, there are no waste pickers that can possibly be affected by dumpsite closure. An involuntary resettlement and indigenous peoples due diligence report was prepared for the sub-project in compliance with ADB requirements. Due diligence findings will be confirmed through the Detailed Measurement Survey (DMS), which will be based on detailed engineering design. 365. Malay/Boracay Sub-project. Implementation of the Boracay/Malay sub-project will not involve any land acquisition or any permanent or temporary involuntary resettlement impacts. The properties where the MRFs in Balabag (total area leased by the LGU is 49,426 sq.m) and Manoc Manoc (total area leased by the LGU is 10,000 sq.m) are located are leased by the Malay LGU from local land owners. The site for the MRF in Caticlan is owned by the Municipality of Malay (purchased in 2007) with a total land area of 1,533 sq.m. The land where the SLF in Kabulihan is located is owned by the Kabulihan Forest Farmers and Developers Association and used for the purpose by the Malay LGU under a Forestland agreement (total area covered by the agreement is 52,131 sq.m). The additional cell for the SLF will be constructed within the same property. Access to the Kabulihan SWM Facility site is currently provided by an all weather 2-lane concrete paved road. The access road was built in 2010 when the initial SLF Cell 1 was constructed through a Design-Build Contract. Therefore no land acquisition is required for construction of Cell 2. There are 59 existing waste sorters (from 53 households) employed on a contractual basis by the Malay local government (LGU) and assigned to work in the MRFs of the three (3) barangays in Boracay island; namely, Yapac, Balabag, and Manoc-Manoc. They receive regular fixed monthly salaries (Php 250 to Php 300 per day) and work for 8 hours a day as do other government employees. General Manager Glenn Y. Sacapano, the Municipal Officer in charge of the Boracay Solid Waste Management operation, has expressed plans to retain the current waste sorters as employees. According to Mr. Sacapano, present waste sorters will be given other assignments (related or not related to solid waste) should waste sorting not be needed. The PPTA SWM design specialist also confirmed waste sorters would still be needed to carry out final waste sorting to ensure that only residual waste will go to the SLF. Given this, it is not expected that any of the waste sorters will experience adverse impacts due to the Project (additional details are provided in the next chapter of this report). The 26 persons currently employed in the Barangay Caticlan MRF will not be affected by project activities and will continue to work in the MRF. An involuntary resettlement and indigenous peoples due diligence report was prepared for the sub-project in compliance with ADB requirements. Due diligence findings will be confirmed through the Detailed Measurement Survey (DMS), which will be based on detailed engineering design D. Indigenous People

1. Review of Indigenous Peoples Policies and Legal Framework 366. The national policies on IPs are embodied in Republic Act (RA) 8371, the Indigenous Peoples Rights Act of 1997 (IPRA). The IPRA enumerates and explains the basic rights and obligations of IPs to their ancestral domains, including self-governance, social justice, and cultural integrity, and the primacy of customary laws. It created the National Commission on Indigenous Peoples (NCIP), the government institution mandated to administer and implement

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project the IPRA. It defines the role and extent of NCIP’s jurisdiction in protecting IP rights.69 Efforts have also been to regularize the IPRA with existing laws. An example of this is the joint DENR- NCIP Memorandum Circular No. 2007–01 on Management of Overlapping Protected Areas And/Or Their Buffer Zones And Ancestral Domains/ Lands. The following laws also affect IPs and their rights, which may in turn affect project implementation: The Comprehensive Agrarian Reform Law or CARL (RA 6657); The Local Government Code of 1991 (RA 7160); The National Integrated Protected Areas System (NIPAS) Act of 1992 (RA 7586); The Philippine Mining Act of 1995 (RA 7942) requires proponents of mining projects in IP areas to secure an IPs’ free and prior informed consent; and, the Conservation and Protection of Wildlife Resources and their Habitats Act of 2001(RA 9147) mandates that the collection of wildlife by IPs may be allowed for traditional use and not primarily for trade.70

2. Asian Development Bank Policy 367. The objective of ADB’s Indigenous Peoples Safeguards Policy is to design and implement projects in a way that fosters full respect for Indigenous Peoples’ identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the Indigenous Peoples themselves so that they (i) receive culturally appropriate social and economic benefits, (ii) do not suffer adverse impacts as a result of projects, and (iii) can participate actively in projects that affect them (ADB SPS, 2009). Towards this end, ADB Indigenous Peoples policy includes the following principles: - Screen early on to determine (i) whether Indigenous Peoples are present in, or have collective attachment to, the project area; and (ii) whether project impacts on Indigenous Peoples are likely. - Undertake a culturally appropriate and gender-sensitive social impact assessment or use similar methods to assess potential project impacts, both positive and adverse, on Indigenous Peoples. Give full consideration to options the affected Indigenous Peoples prefer in relation to the provision of project benefits and the design of mitigation measures. Identify social and economic benefits for affected Indigenous Peoples that are culturally appropriate and gender and inter-generationally inclusive and develop measures to avoid, minimize, and/or mitigate adverse impacts on Indigenous Peoples. - Undertake meaningful consultations with affected Indigenous Peoples communities and concerned Indigenous Peoples organizations to solicit their participation (i) in designing, implementing, and monitoring measures to avoid adverse impacts or, when avoidance is not possible, to minimize, mitigate, or compensate for such effects; and (ii) in tailoring project benefits for affected Indigenous Peoples communities in a culturally appropriate manner. To enhance Indigenous Peoples’ active participation, projects affecting them will provide for culturally appropriate and gender inclusive capacity development.

69 Other pertinent issuances are (i) AO No. 1, Series of 2004. Guidelines On The Formulation Of The Ancestral Domain Sustainable Development And Protection Plan (ADSDPP); (ii) AO No. 1 Series of 2012.The Indigenous Knowledge Systems and Practices (IKSPs) and Customary Laws (CLs) Research and Documentation Guidelines of 2012; (iii) AO 2 Series of 2012. The General Guidelines On The Confirmation Of Indigenous Political Structures And The Registration Of Indigenous Peoples’ Organizations; (iv) AO No. 3 Series of 2012. The Revised Guidelines On Free And Prior Informed Consent (FPIC) And Related Processes Of 2012; (v) AO No. 4 Series of 2012. Revised Omnibus Rules on Delineation and Recognition of Ancestral Domains and Lands of 2012. 70 “Traditional use” means utilization of wildlife by indigenous people in accordance with written or unwritten rules, usage, customs, and practices traditionally observed, accepted and recognized by them.

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Establish a culturally appropriate and gender inclusive grievance mechanism to receive and facilitate resolution of the Indigenous Peoples’ concerns. - Ascertain the consent of affected Indigenous Peoples communities to the following project activities: (i) commercial development of the cultural resources and knowledge of Indigenous Peoples; (ii) physical displacement from traditional or customary lands; and (iii) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual uses that define the identity and community of Indigenous Peoples. For the purposes of policy application, the consent of affected Indigenous Peoples communities refers to a collective expression by the affected Indigenous Peoples communities, through individuals and/or their recognized representatives, of broad community support for such project activities. Broad community support may exist even if some individuals or groups object to the project activities. - Avoid, to the maximum extent possible, any restricted access to and physical displacement from protected areas and natural resources. Where avoidance is not possible, ensure that the affected Indigenous Peoples communities participate in the design, implementation, and monitoring and evaluation of management arrangements for such areas and natural resources and that their benefits are equitably shared. - Prepare an Indigenous Peoples plan (IPP) that is based on the social impact assessment with the assistance of qualified and experienced experts and that draw on indigenous knowledge and participation by the affected Indigenous Peoples communities. The IPP includes a framework for continued consultation with the affected Indigenous Peoples communities during project implementation; specifies measures to ensure that Indigenous Peoples receive culturally appropriate benefits; identifies measures to avoid, minimize, mitigate, or compensate for any adverse project impacts; and includes culturally appropriate grievance procedures, monitoring and evaluation arrangements, and a budget and time-bound actions for implementing the planned measures. - Disclose a draft IPP, including documentation of the consultation process and the results of the social impact assessment in a timely manner, before project appraisal, in an accessible place and in a form and language(s) understandable to affected Indigenous Peoples communities and other stakeholders. The final IPP and its updates will also be disclosed to the affected Indigenous Peoples communities and other stakeholders. - Prepare an action plan for legal recognition of customary rights to lands and territories or ancestral domains when the project involves (i) activities that are contingent on establishing legally recognized rights to lands and territories that Indigenous Peoples have traditionally owned or customarily used or occupied, or (ii) involuntary acquisition of such lands. - Monitor implementation of the IPP using qualified and experienced experts; adopt a participatory monitoring approach, wherever possible; and assess whether the IPP’s objective and desired outcome have been achieved, taking into account the baseline conditions and the results of IPP monitoring. Disclose monitoring reports.

3. Project Indigenous Peoples Policy 368. In light of foregoing Legal and Policy Framework discussions, the Government of the Philippines (GOP), through DENR, commits itself to the following principles in the implementation of the Project:

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- Sub-projects will be screened early on to determine (i) whether Indigenous Peoples are present in, or have collective attachment to, the project area; and (ii) whether project impacts on Indigenous Peoples are likely. - If sub-project screening and Social Impact Analysis (SIA) indicate that project activities will have impacts, positive and/or negative, on Indigenous Peoples (IPs) or ethnic minorities, the concerned local government unit (LGU) will prepare an Indigenous Peoples Plan (IPP) in the context of the SIA and through meaningful consultation with the affected IPs/ethnic minorities. The IPP will set out the measures whereby the borrower/client will ensure (i) that affected Indigenous Peoples (IPs) and/or other ethnic minorities receive culturally appropriate social and economic benefits; and (ii) that when potential adverse impacts on IPs or ethnic minorities are identified, these will be avoided to the maximum extent possible. Where this avoidance is proven to be impossible, based on meaningful consultation with indigenous and ethnic minority communities, the IPP will outline measures to minimize, mitigate, and compensate for the adverse impacts. A proposed IPP outline is found in Appendix 5. Steps to be followed in producing the IPPs are outlined in succeeding sections of this framework. The IPPs will be submitted to and agreed upon by the EA and ADB. - Consensus will be required from all members of the affected IP community (as described in NCIP AO No.1 Series of 1998 and AO No.3 Series of 2002) on project components/activities that are carried out within IP ancestral lands/domains and/or trigger the IP Safeguard. Based on meaningful consultations, any concerns raised will be addressed through project design and mitigation measures so that projects impacts/benefits are gender-sensitive, culturally-appropriate and acceptable to affected IP communities. - A Memorandum of Agreement (MOA)71 will be prepared for sub-project activities that require free and prior informed consent of affected IPs as per RA 8371, its implementing rules and regulations (Administrative Order No.1, Series of 1998), and NCIP Administrative Order No.3, Series of 200272. The MOA shall be executed by and between the Project proponent, host ICC/IP community, and the NCIP, written in the dialect or language of the concerned ICCs/IPs, with corresponding English and Pilipino translation. The MOA shall stipulate, among others: (1) Benefits due to the host ICCs/IP communities; (2) Measures to protect IPs’ rights and value systems;

71 For the purposes of validity of the Memorandum of Agreement referred to above, the signatories thereto shall be; a) for corporations, partnerships or single proprietorship entities, the authorized officers, representatives, or partners as per Board resolution; b) for the ICC/IP community, all the authorized community elders or traditional leaders, who are registered with the NCIP in accordance with Section 2, Part III, Rule IV; and c) the NCIP or authorized representative. The NCIP shall keep a copy of the MOA for records and monitoring purposes. 72 As per NCIP Administrative Order No.1, Series of 1998, Section 7 (Development and Cultural Activities Subject to Free and Prior Informed Consent), Policies, programs, projects, plans and activities subject to free and prior informed consent shall include but not limited to the following: (i) Exploration, development, exploitation and utilization of natural resources within ancestral domains/lands; (ii) Research in indigenous knowledge, systems and practices related to agriculture, forestry, watershed and resource management systems and technologies, medical and scientific concerns, bio-diversity, bio-prospecting and gathering of genetic resources; (iii) Displacement and relocation; (iv) Archeological explorations, diggings and excavations and access to religious and cultural sites; (v) Policies affecting the general welfare and the rights of ICCs/IPs; and, (vi) Entry of the Military or paramilitary forces or establishment of temporary or permanent military facilities within the domains.

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(3) Responsibilities of the project proponent as well as those of the host ICC/IP community and the NCIP73; and, (4) Penalties for non-compliance and or violation of the terms and conditions. - The sub-project proponent will prepare an action plan for legal recognition of customary rights to lands and territories or ancestral domains that is compliant with IPRA requirements when the project involves (i) activities that are contingent on establishing legally recognized rights to lands and territories that Indigenous Peoples have traditionally owned or customarily used or occupied, or (ii) involuntary acquisition of such lands. 369. An Indigenous Peoples Planning Framework (IPPF) has been prepared that clarifies principles and objectives governing the preparation and implementation of Indigenous Peoples Plans for the Project, based on (i) ADB’s Safeguards Policy Statement (SPS) (2009); and, (ii) the national and legal context. It sets out the steps for preparation of an IPP for sub-projects with component(s) that impact on IPs directly or that indirectly affect the dignity, human rights, livelihood systems, or culture of Indigenous Peoples or affects the territories or natural or cultural resources that Indigenous Peoples own, use, occupy, or claim as an ancestral domain or asset. It describes the process of carrying out social impact assessments to determine potential project impacts, both positive and adverse, on Indigenous Peoples; principles and methods in undertaking meaningful consultation with affected Indigenous Peoples communities and concerned Indigenous Peoples organizations to solicit their participation throughout the Project cycle.

4. Indigenous Peoples Impacts of Pilot Sub-projects 370. There are no IPs in Siargao Island (where the Del Carmen sub-project is located) and thus no sub-project impacts on IPs. Although there are IPs (Bukidnon Tribe and Aetas) residing in the municipality of Janiuay, they are in the more mountainous areas and not where project civil works will be carried out. There are no affected IP households in the Janiuay sub-project. Boracay Island (Malay/Boracay sub-project) is home to the Ati (also referred to as Aetas) indigenous group, and they have a Certificate of Ancestral Domain Title (CADT) over a 2.1- hectare area in Barangay Manoc-Manoc. However, sub-project civil works will not overlap with their ancestral domain and there are no affected IP households for the sub-project. The livelihoods of 25 IP households (21 AHs are Ibaloi, another two (2) AHs are Ifugao, and one (1) AH is Kalanguya) who engage in waste picking as a source of income will be affected due to project activities in the La Trinidad sub-project; however, waste picking is not a traditional livelihood source of the IP groups and the impacts will be addressed as part of income restoration measures described in the sub-project resettlement plan. 371. The ADB Safeguard Policy Statement (2009) states, “the Indigenous Peoples safeguards are triggered if a project directly or indirectly affects the dignity, human rights, livelihood systems, or culture of Indigenous Peoples or affects the territories or natural or cultural resources that Indigenous Peoples own, use, occupy or claim as their ancestral domain”. The project will not cause any of these conditions to occur, particularly as the sub- projects will be in primarily urban areas. However, an Indigenous Peoples Planning Framework

73 In case of change of proponent as a result of partnership, joint venture, reorganization, merger, acquisition, sale, or transfer of rights, the terms and conditions of the MOA shall bind the new proponent without necessarily executing another MOA.

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(IPPF) has been prepared to guide the preparation of any Indigenous Peoples Plan (IPP) required during project implementation.

E. Environmental Considerations

1. Environmental Assessment of Sector Loan 359. The PSWMS project is classified as Category B for environment in accordance with ADB’s Safeguard Policy (SPS 2009). IEE reports have been prepared for all subprojects. The objectives of the IEE are: a) Assess the existing environmental and socio-economic conditions of the project areas, including identification of environmentally sensitive areas that may be affected by the proposed subproject; b) Identify the likely positive and negative impacts of the proposed subproject on the physical, biological and socio-economic environment; c) Develop mitigation measures through an Environmental Management Plan (EMP) that addresses the potential impacts and risks of the subproject; d) Determine the environmental monitoring and reporting requirements, emergency response procedures, institutional or organizational arrangements, and capacity development measures to ensure the implementation of the EMP. 360. The IEE reports are based on site assessment and field visits, consultations with stakeholders, LGUs, non-government organizations (NGOs), and sectoral groups in the subproject area, and from related studies and available secondary information.

2. Overview of Sector Loan 361. The PSWMS aims to improve the solid waste management services and infrastructures in urban and rural communities through a variety of soft and engineering components such as sanitary landfill (SLF) development, landfill rehabilitation and landfill mining, dump site closure, emission control, establishment of material recovery facilities, institution of solid waste collection systems, acquisition of processing equipment, and adoption and establishment of waste-to- energy (WTE) technologies. The project will also complement past and ongoing institutional capacity development actions for local government units (LGUs) and also technical assistance for project implementation spearheaded by the Department of Environment and Natural Resources (DENR) as Executing Agency (EA). 362. Four pilot LGUs have been selected for inclusion in this sector loan under the Project Preparatory Technical Assistance (PPTA), namely: a) Municipality of Janiuay, Iloilo Province in the island of Panay b) Municipality of Del Carmen, Surigao del Norte in Siargao Island c) Municipality of Malay, Aklan Province in Boracay Island d) Municipality of La Trinidad, Benguet Province. 363. The following table outlines the components of the pilot subprojects: Table 1: Components of Pilot Subprojects Components Subproject (i) Acquisition of waste collection vehicles and waste bins; Janiuay (ii) Acquisition of SLF equipment; (iii) Construction of a semi-automated Materials Recovery Facility (MRF);

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Components Subproject (iv) Construction of Category 2 Sanitary Landfill; and (v) Closure of existing Gibolo dumpsite. (i) Acquisition of waste collection vehicles and waste bins; Del Carmen (ii) Acquisition of SLF equipment; (iii) Construction of a Materials Recovery Facility; (iv) Construction of Category 2 Sanitary Landfill; and (v) Closure of existing dumpsite. (i) Mining at Balabag, Manoc-Manoc and Yapak; Malay (ii) Construction of a MRF/WTE at Manoc-Manoc; (iii) Construction of a new cell at Kabulihan SLF; (iv) Waste collection and hauling improvement; (v) Acquisition of SWM equipment; and (vi) Construction of MRF at Caticlan. (i) Acquisition of waste collection vehicles and waste bins; La Trinidad (ii) Closure of existing dumpsite; (iii) Rehabilitation of access road; (iv) Acquisition of SLF equipment; (v) Modernization and upgrading of composting plant; (vi) Construction of Category 2 SLF Cell 2; (vii) Rehabilitation of Cell 1; (viii) Landfill mining; and (ix) Centralized and decentralized MRFs.

3. Environmental Assessment of Sector Impacts 364. Baseline study of the physical, biological, socio-economic, and cultural attributes of the project sites of the subprojects where the SWM facilities will be developed was conducted. Consultations with affected stakeholders were held to gather views and concerns of the community on the proposed SWM project. 365. Overall, the impacts of the PSWMS project will be positive. There will be improvement in the sanitation, health and environmental conditions due to proper waste management and reduced exposure of people to hazards of uncollected and unprocessed wastes. The project can thus improve the quality of life of the people. With the proposed sector loan, contamination of the environment from poor solid waste management will be mitigated. 366. The anticipated adverse environmental impacts of the project are localized and can be easily avoided or minimized with the implementation of mitigation and monitoring measures which are detailed in the Environmental Management Plan (EMP) and Environmental Monitoring Plan (EMoP). The components that may pose environmental impacts under the project consists of (i) landfill mining activities from closure of existing dumpsites and rehabilitation of filled cells of sanitary landfills, (ii) construction and operation activities of new sanitary landfills and materials recovery facilities, (iii) operation of waste to energy projects.

4. Summary of IEEs Prepared for Subprojects 367. The identification of significant impacts and formulation of the mitigation measures have been guided by the Rapid Environmental Assessment (REA) checklist, the results of the site visits and stakeholder consultations and the ADB SPS 2009. Findings of the IEE of the four

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project subprojects suggest that the overall impacts will be positive since it will benefit the environment and the people. The findings of the IEE of each pilot subproject are summarized below: a) Janiuay Subproject 368. The municipality uses an open dump located in Barangay Gibolo. It has acquired a 6.2 hectare lot in Barangay Caraudan, which is planned to be developed into a common disposal facility for the entire 3rd District of Iloilo. However, the current SWM system does not comply with RA 9003 because there is absence or limited implementation of ordinances requiring segregation of source, unsanitary practice of waste picking and recovering recyclables, and disposal of mixed waste into open dumps. 369. The proposed subproject would bring significant economic, environmental and health benefits to the municipalities and nearby areas. The benefits would accrue to the affected communities and not only to the direct beneficiaries of the SWM service. The economic benefits include (i) reduced natural resources use due to recycling; (iii) savings from the use of compost materials instead of commercial fertilizer; (iv) resource savings from replaced energy source; and (v) health benefits. 370. The project site is not located in an ecologically or culturally protected area. There are no sites with historical, religious and archaeological importance that will be disturbed by the proposed subproject facilities. The site and immediate vicinity is primarily characterized as rural and agricultural in nature. Major environmental and social issues that need to be considered in the design and implementation of the Janiuay subproject are discussed hereunder. 371. Economic displacement of waste pickers. As part of the subproject, the existing Gibolo dumpsite will be closed. It is anticipated that a total of 18 waste picker households will be economically displaced. Apart from participation in the income restoration program, severely affected households will be entitled to a transition allowance. Socioeconomic characteristics of the affected households (AHs) are discussed further in the Janiuay subproject Resettlement Plan. 372. Geologic Hazards. The regional seismicity at the proposed sanitary landfill (SLF) site is influenced by earthquake generators within the 150 km radius, particularly the West Panay Fault and the Negros Trench. Being within the Philippine Mobile Belt, the island of Panay in general is situated in an area prone to ground shaking. This should be considered in the design of the SLF facilities. Although the site has low susceptibility to landslide owing to the rolling to gently sloping topography in the area, stabilization of slopes that may arise as a result of the building up of waste should be ensured particularly in a “landraise” type of sanitary landfill. Provisions for the installation and monitoring of slope stabilization measures (e.g. benching) should be made, bearing in mind their capacity to support the volume of materials (maximum load limit) and to arrest pore water pressure build up. Similarly, waste materials and soil cover should be compacted accordingly. 373. Impacts during construction. During the construction phase, the civil works that are anticipated include: (i) site clearing and earthworks such as excavation and site grading; (ii) site development including exposed soil piles, materials hauling and dumping by trucks, vehicle movement on unpaved roads, and concrete mixing; and (iii) excavation and construction of leachate drainage, bottom liner installation and other SLF appurtenances. Impacts related to the construction activities include the generation of wastes from site clearing, including removal of trees and stripping of shrubs and other vegetation at the SLF site, generation of excavated soil, dust emission from earthworks, emission from vehicle movement, noise, water pollution

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project from runoff of silt, spill of fuels and lubricants, traffic and damage to infrastructure, occupational and community health and safety hazards. 374. Impacts during operation. During the operational phase, the activities that may potentially contribute to anticipated environmental impacts include: (i) collection and transport of solid wastes; (ii) operation and maintenance of the SLF that includes spreading and compacting of wastes and covering wastes with soil; (iii) operation of the MRF that includes unloading and sorting of wastes; (iv) handling of biodegradable wastes at the MRF; and (v) closure of the existing open dump. Anticipated impacts of the subproject implementation include the runoff of silt from improper grading, thus, requiring the provision of sediment control measures and drainage interceptor system. The operation of the SLF is also anticipated to generate leachate, odor and landfill gas from decomposition of organic matter, dust from frequent movement of collection vehicles and heavy equipment, noise, potential collapse of landfill slope, health hazard from presence of vectors, stray animals and pests, occupational health and safety risks from exposure to wastes, fires and explosion due to gas build up, and unaesthetic appearance and loss of property value from scattering of litter and poor maintenance at the SLF site. The frequent movement of collection vehicles to the SLF and MRF site may also cause traffic and damage to existing roads and infrastructures. Mitigation for these impacts during the construction and operational phases of the subproject is outlined in the subproject EMP. b) Del Carmen Subproject 375. The Municipality of Del Carmen forms part of the Siargao Island Protected Landscape and Seascape by virtue of Presidential Proclamation No. 902. There is no established collection system in Del Carmen and the whole island of Siargao in general. Of the 20 barangays in the municipality, existing solid waste collection only covers two urban barangays in the with an irregular collection schedule due to the lack of a designated truck for waste collection. Aside from the intermittent waste collection schedule, SWM is barely implemented due to the lack of equipment and facilities for an efficient and effective SWM. 376. The proposed site for the sanitary landfill is located at Sitio Buyhugon in Barangay Cancohoy which is approximately 7 km from downtown Del Carmen. The site can be accessed through an all-weather concrete road along the national road and a combination of gravel and earth-paved road going to the site from the national road. 377. Impact on Ecologically Protected Area. The project site itself falls within the multiple use zone based on the proposed Management Zoning Plan of Siargao Protected Landscape and Seascape. The site is primarily characterized as a rural, agricultural land, therefore the siting of the proposed SLF is allowed in the area. 378. In support of the Protected Area Management and Action Plan (PAMAP) of the Siargao Island Protected Landscape and Seascape, the proposed subproject will provide a long-term solution to the current solid waste management problems of Siargao Island. The project is foreseen to help in the abatement of pollution caused by the inadvertent disposal of solid wastes as well as in the conservation of habitats of vulnerable and endangered species that are still present in the island. In addition, with the projected improvement in solid waste collection in the island, the current solid waste disposal into the sea will be minimized. This will also contribute to the protection of the mangrove areas in Del Carmen. 379. Although, the project will provide positive benefits to the environment, the subproject needs to be presented to the Protected Area Management Board (PAMB) for approval of the Special Agreement within Protected Area (SAPA). In addition, an Environmental Compliance Certificate (ECC) needs to be secured from the concerned DENR Regional Office.

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380. Geologic Hazards. The proposed SLF site and immediate vicinity is located in an area that is considered by PHIVOLCS as prone to ground shaking which can trigger landslides or rockfalls, settlement or collapse of sinkholes. Ground rupture because of movement of a fault is unlikely at the site since there is no active fault within the site itself. The risk of liquefaction is low because the site is located inland where limestone formation is not composed of recent deposits. However, the presence of cavities, caverns and sinkholes in other areas adjacent to the site need to be further investigated and findings should be considered in the detailed design of the SLF and any foundation or structure to be put in place at the SLF and MRF sites. 381. Impacts during construction. During the construction phase, the civil works that are anticipated include: (i) site clearing and earthworks such as excavation and site grading; (ii) site development including exposed soil piles, materials hauling and dumping by trucks, vehicle movement on unpaved roads, and concrete mixing; and (iii) excavation and construction of leachate drainage, bottom liner installation and other SLF appurtenances. Major environmental impacts include generation of wastes and excavated soil from site clearing activities, cutting of trees, dust emission from construction activities, air emission from movement of vehicles, noise from frequent movement of vehicles to the site, runoff of silt to the receiving Baban lagoon, spill of fuels and lubricants, traffic and damage to existing rural roads, bridges, and canals, risks to occupational health and safety, and nuisance to community. 382. Impacts during operational phase. During the operational phase, the activities that may potentially contribute to anticipated environmental impacts include: (i) collection and transport of solid wastes; (ii) operation and maintenance of the SLF that includes spreading and compacting of wastes and covering wastes with soil; (iii) operation of the MRF that includes unloading and sorting of wastes; (iv) handling of biodegradable wastes at the MRF; and (v) closure of the existing open dump. The anticipated environmental impacts and mitigation measures during the operational phase for SLF and MRF operation are outlined in the subproject EMP. c) Malay Subproject 383. Malay is a 1st class municipality situated in the northwestern section of Aklan Province. Rapid increase in population and waste generation prevails in the municipality due to the booming tourism industry in Boracay Island. The municipality has three MRFs located in Yapak, Balabag and Manoc-Manoc in Boracay Island and a SLF in Kabulihan in Malay mainland. The SLF has already reached its full capacity while pile-up of large amounts of waste in the MRFs poses health risks to workers and inhabitants in the surrounding areas. 384. In general, the implementation of the subproject loan will contribute to significant decrease in the volume of wastes that shall be brought to Kabulihan SLF. The WTE will convert wastes to energy in Boracay Island. The proposed cell at Kabulihan SLF will only accommodate the residuals while the existing and future cells that were earlier designed for the Kabulihan SLF will now cater to the residual wastes from the urban barangays of mainland Malay. 385. The subproject sites of the MRF and SLF are not located in ecologically and culturally/historically protected areas. The MRF and SLF sites have been classified by the Municipality of Malay for SWM facilities. 386. Geologic Hazards. The project site is located in an area that is considered by PHIVOLCS as prone to ground shaking, although in low varying degrees. However, the project area is not prone to landslide, volcanic hazard, flooding and coastal hazard such as coastal

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project erosion and storm surge74. The site of the proposed waste-to-energy (WTE) project in Manoc- Manoc is located in an elevated terrain about 500m from the coastline. Ground rupture because of movement of a fault is unlikely at the site since there is no active fault within the sites itself. 387. Impacts of landfill mining and clean-up of MRF sites. Mining of the piled residual materials and the dumped biodegradable materials is the initial activity prior to clean-up and closure of the MRFs. The wastes that will be recovered from the mining activities can be processed further and will help avoid further environmental pollution at the MRF sites and vicinity. The mining activities will also allow land reuse given the limited space available for SWM. 388. During landfill mining, foul odor may be generated from the waste mining operation. With the presence of biodegradable materials in the mixed wastes at the MRFs, the process of decomposition generates foul odor emanating from the disposal area. This will be a short-term impact and can be mitigated through proper sanitation and use of the gas collection system. Workers will also be provided with protective masks while doing the waste mining operations. 389. Fires or explosion from mining may possibly occur due to gas build-up within the MRFs. This may pose a safety risk to workers on site. To mitigate this potential risk, a simplified drainage and gas collection system will be required which can be later on integrated into the integrated solid waste management treatment system. 390. There is also proliferation of flies and other vectors at the sites which are both unsightly and a health hazard. However, this should be only for a short time during the mining activity when the wastes are exposed. A vector management plan will be in place to prevent their proliferation during the construction phase. 391. The excavation, processing, segregation and windblown litter of wastes may result to litter and unaesthetic conditions within the surrounding area. The risk of creating an untidy site will only be during the mining activities and is anticipated to end once the MRFs have been fully mined and cleaned up. This will be addressed through good housekeeping. In addition, mining shall preferably be carried out during the dry-season. 392. Another potential impact is the piling up of waste materials from the waste mining and processing activities. Since the sanitary landfill for residual materials is located in the mainland, the residual wastes are placed in sacks and piled at designated areas within the MRF. The areas where the residual materials are currently piled are not roofed thus they get wet during rains. Also they are exposed to other elements. The sacks of older piles are torn and thus plastic bags become wind-blown litter. They also attract birds and other animals. 393. Mining needs an area for the temporary storage of the baled materials while awaiting for the operation of the WTE. Based on assessment of the existing MRFs, there is an area within the MRFs of Manoc Manoc and Balabag for the temporary storage of bales. Fines and residues can be transported to the Kabulihan SLF through a barge. Extra caution should be implemented to avoid accidental spill of these residues while on transport. 394. At the end of the clean-up activities, the general landscape of the sites is expected to improve and open the sites for other uses. Remediation should be undertaken to prevent adverse effects to the environment. A closure/abandonment plan needs to be created at least one year prior to actual closure.

74 Source: EGGAR, Boracay Subproject.

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395. Impact of WTE Facility and Mechanical/Manual MRF. The proposed construction and installation of a 2-MW WTE is expected to generate short-term construction-related impacts that includes dust emission, traffic from frequent movement of hauling and construction vehicles. During WTE facility operation, air pollutants may be emitted as a by-product of the waste conversion process. Regular maintenance of equipment and source emission tests should be conducted on a regular basis to confirm compliance with the emission standards of the Philippine Clean Air act. The results of such tests should be submitted quarterly to DENR-EMB. 396. The WTE operation will generate residues consisting of bottom ash which can be recycled for construction purposes or disposed at the SLF without special measures. 397. Noise may also be generated during handling and processing of waste and residues. A buffer zone of trees around the proposed waste thermal plant should be established to minimize the noise impact. 398. Overall, the WTE will result to a significant decrease in the volume of wastes for disposal at the Kabulihan SLF. As the WTE will be supplemented with the proposed improved SLF and enforcement of at-source segregation and a materials segregation facility on-site, there will be expected significant decrease in the volume of wastes for burial. As such, this will lengthen the life of the SLF and will save the LGU from seeking and using additional precious land area. 399. Impacts of Expansion of Kabulihan SLF. Immediate works must be done at Cell 1 to accommodate Cell 2 and maximize the size of the SLF. The excavation and sloping works may result to short-term construction-related impacts such as soil disturbance, runoff of sediments, dust emission, noise, accidental spill of fuel and lubricants, traffic from frequent movement of construction vehicles to and from the site, damage to existing roads, bridges and canals, and occupational health and safety hazards. 400. During the operation and maintenance of the Kabulihan SLF, activities that may potentially contribute to anticipated environmental impacts include: (i) collection and transport of solid wastes; (ii) operation and maintenance of the SLF that includes spreading and compacting of wastes and covering wastes with soil; and (iii) unloading of wastes. Anticipated impacts include soil runoff, generation of leachate and contamination of groundwater resources, generation of foul odor and landfill gas from decomposition of organic matter, possible collapse of landfill slope, health hazard from presence of vectors, stray animals and pests at the landfill site, and risks to worker and community health and safety. d) La Trinidad Subproject 401. The municipality operates the Alno sanitary landfill and composting facilities but the present conditions are reflective of below par SWM system, which is not fully complying with RA 9003 requirements. The increasing solid waste load and inappropriate SWM technology creates hygiene and health risks and increase environmental pollution within the area and nearby environs. There is mixing of waste during collection that reduces the capacity of the landfill. In addition, unsanitary waste picking practices on the recovery of recyclables at the landfills prevails. The municipality also needs to close the Wangal dumpsite. 402. With the proposed expansion of the waste collection system, improvement of waste treatment system, reuse of existing landfill site, construction of a new cell for the sanitary landfill and closure of the Wangal dumpsite, the La Trinidad subproject is expected to reduce health, environment and safety risks associated with poor SWM practices. It is expected to contribute to the reduction of health risks associated with manual waste picking. It is also expected to generate additional revenues from the sale of compost materials. The proposed improvement of the composting facility will reduce the volume of wastes to be disposed and treated at the

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SLF and thus extend the SLF’s economic life estimated at 20 years. The compost materials are also expected to generate savings to farmers. By partially substituting commercial fertilizer with compost materials, it reduces the cost to farmers and likewise minimizes environmental degradation. The proposed subproject support’s La Trinidad’s ultimate goal of establishing an Integrated Solid Waste Management System (ISWMS). 403. The project site in Barangay Alno, La Trinidad is not located in any of the declared ecologically or culturally protected areas in the Cordillera Autonomous Region (CAR). The project area is designated as a Special Use Zone, specifically for solid waste management by the municipality of La Trinidad. 404. Geologic Hazards. In terms of geologic hazards, the SLF site and immediate vicinity is located in an area that is prone to ground shaking, landslides, and slope failures, which may be induced by earthquakes. However, ground rupture because of movement of a fault is unlikely at the site since there is no active fault within the site itself. The design of the SLF and other related infrastructures should take into consideration these EGGAR findings and the results of the soil investigation. During project operation, the stability of slopes of wastes and of waste bottom liner interfaces in the landfill should be monitored to manage the fill effectively and to protect the safety of landfill workers. 405. Impacts of landfill mining. Major environmental issues that need to be considered in the design and implementation of the La Trinidad subproject are related to the generation and management of wastes from landfill mining of Cell I and closure of the Wangal open dumpsite. Cell I of the sanitary landfill have reached dangerous level of residual wastes and landfill mining will be the initial activity of the subproject prior to the rehabilitation of Cell I. Landfill mining aims to recover recyclables, combustible fractions, soil, and landfill space in order to extend the life of the cell from 7 to 12 years. 406. It is necessary that before loan signing, the Municipality of La Trinidad should be able to explore definite options to convert the residuals through baling and/or pelleting and through co- processing with interested companies (cement kilns, thermo power stations, and other facilities). In addition, the LGU needs to enter into an agreement with Urdaneta or Clark SWM operator to transfer daily waste to partially reduce the load at Cell I and to secure safety in the area. 407. During landfill mining, there is also the possibility of explosion or fire due to gas build-up within the site. This poses a safety risk for all workers on site. The gas is made up mainly of methane and carbon dioxide with trace amounts of other gases. To mitigate this potential risk, a simplified drainage and gas collection system will be required which can be later on integrated into the integrated solid waste management treatment system. 408. Foul odor may be generated from the landfill mining operation. With the presence of biodegradable materials in the mixed wastes dumped at Cell I, the process of decomposition generates foul odor emanating from the disposal area. This will be a short-term impact and can be mitigated through proper sanitation and use of the gas collection system. Workers will be provided with protective masks while doing the landfill mining operations. 409. Impacts of sanitary landfill construction and operation. In the construction of the sanitary landfill, trenching and excavation activities may result to runoff from stockpiled materials which could contaminate the receiving Pao creek located downstream of the SLF site. Although this will be a short-term impact during the construction of Cell III, prior to the trenching and excavation activities, a spoils management plan should be developed to include characterization of the materials and estimate of volume, measures to ensure proper transport, storage, reuse, and disposal, and activities for monitoring and recording. To the maximum extent possible, all earthworks must avoid the rainy periods of May to October. Stockyards for

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project construction materials and spoils and storage areas for fuels and lubricants should not be located near the watercourses. If applicable, excess spoils and materials generated during the construction activities should be reused. Temporary silt traps or sedimentation basins should be installed and that the diversion of storm water flow during construction should not lead to inundation and other nuisances in low-lying areas. 410. During landfill operation, although only residuals will be buried at the proposed SLF, there is still a risk of contaminant leachate generation. Based on information gathered during the site visits, there was not an occurrence of leachate overflow despite the relatively small size of the leachate holding ponds compared to rainfall intensity in the area. It was learned that the third pond was only provided with sand and gravel and does not have concrete flooring to allow filtration of the effluent. With this set-up the leachate ponds are not actually designed to treat leachate from Cell I but are acting as mere holding ponds. The effluents reaching the third pond may have percolated the groundwater table. Although the results of the spring water sampling indicated compliance of water quality with Class A standards, the households living below the site said that there were instances where water coming out from the spring was gray to black in color. The households are no longer using the springs for domestic water supply after the LGU provided them with piped water system. 411. The design of the leachate holding pond should be modified in such as way that it would be able to contain the leachate and protect it from groundwater percolation. Environmental controls will be through the provision of impermeable liners, leachate collection and treatment system. The final effluent from the treatment plant should comply with the prescribed Effluent Standards of DAO 35. 412. Landfill gas will be formed at the SLF from the decomposition of organic matter in the landfill. This will be controlled through a gas collection system with control and monitoring facility which will be integrated in the design of the SLF. The LGU is also looking at the possibility of installing a waste-to-energy facility to supplement the design and operation of the subproject gas collection system of the SLF. The WTE facility aims to recover and seal off methane from the land and water environment and to utilize collected gas as fuel. 413. Traffic congestion. Another potential environmental impact of the subproject implementation will be traffic congestion along the access road to the site since the construction of Cell III will be simultaneous with the landfill mining and the delivery of newly generated solid wastes. The frequent movement of construction vehicles to and from the site may disrupt normal traffic patterns and expose the local community to risk of injury or accidents. As part of the rehabilitation of Alno SLF, the road that was established within the compound will be developed into an all-weather road with at least 4m width. The access road will be designed to be passable even during the rainy season. Also sections with deep blind curves will be widened or at least provided with warning signs. Drivers will be reminded to limit speed of construction vehicles when passing near settlement areas.

5. Environmental Criteria for Subproject Selection 414. The potential negative impacts associated with the SWM subprojects can be avoided or minimized through careful selection of location, design, route and/or process. Specific environmental criteria for subproject selection have been designed in the Environmental Assessment and Review Framework (EARF) of the project. 415. Janiuay Subproject. The DENR-EMB recommended the municipality of Janiuay as candidate LGU for the project to represent a cluster pilot area. The municipality has a cluster agreement documented with 8 other LGUs in the district, with Janiuay as the SWM focus and

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project with an association formed under the Securities and Exchange Commission (SEC) to minimize political disruption. The cluster has potential to expand beyond the 9 LGUs for alternative technologies. The cluster LGUs also committed to support the preparation of the Feasibility Study. 416. The projected growth of Janiuay, its plan to attain cityhood by 2017, and its commitment to host the disposal facility for the entire 3rd District of Iloilo will increase its solid waste generation and inputs from adjacent areas and affect the prevailing collect and dump system being employed by the LGU. 417. Del Carmen Subproject. The DENR-EMB recommended the municipality of Del Carmen as candidate LGU for the project as a tourism pilot area. Strict implementation of waste segregation, regular waste collection, provision for a central MRF and SLF with a capacity sufficient for the entire Siargao Island is necessary for an efficient and effective SWM. This also includes the expansion of waste collection system that will cover all municipalities within the island, effective information, education and communication (IEC) and capacity building for SWM stakeholders. 418. It has been recognized that the growing population, tourism prospects and economic development are going to increase waste generation in the island accordingly. To avoid an unmanageable solid waste situation, Del Carmen municipality has been looking for a long-term SWM solution for Siargao Island. The proposed subproject is intended to achieve a sustainable Integrated Island-Based Siargao Solid Waste Management System (IIBSSWMS). 419. Malay Subproject. The DENR-Foreign Assisted and Special Projects Office (FASPO) selected Boracay on 8 May 2013 as one of the pilot LGUs for the PSWMS project. Malay/Boracay has carried out substantial investments on solid waste management (SWM) with financial support from JICA between 2007 and 2010. However, the present system still needs improvement because there is limited composting capacity and technology at the existing MRFs. Malay also needs to address the increasing waste generation to protect Boracay, one of the most famous tourist destinations in the Philippines. 420. La Trinidad Subproject. The Municipality of La Trinidad in the province of Benguet was selected by the DENR as a pilot LGU for the Project. It is recognized that improvements in waste minimization programs and increase in solid waste treatment capacity in La Trinidad are necessary.

6. Environmental Assessment and Review Procedures 421. Republic Act 9003 or the Ecological Solid Waste Management Act of 2010 and its implementing rules and regulations are the current governing laws and rules on solid waste management. The policies laid down in RA 9003 are grouped into four, as follows: a) Source reduction (avoidance) and minimization of waste generated at source; b) Reuse, recycling, and resource recovery of wastes at the barangay level; c) Efficient collection, proper transfer, and transport of wastes by city or municipality; and d) Efficient management of residuals and of final disposal sites and/or any other related technologies for the destruction/reuse of residuals. 422. The law mandates the LGUs to accomplish the following: a) Creation of an SWM board at the city/municipal and provincial levels; b) Creation of an SWM committee at the barangay level; c) Submission of a 10-year SWM plan at the city/municipal levels;

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d) Establishment of MRF per barangay or cluster of barangays and city/municipal centralized MRF; e) Closure of open dumpsites and their conversion into controlled dumpsites by 2004 at the city/municipal levels; and f) Banning of controlled dumpsites by 2006 at the city/municipal levels. 423. In accordance with the Philippine Environmental Impact Statement system (PEISS) undertakings or projects that have potential adverse effects on the environment must obtain an Environmental Compliance Certificate (ECC) or a Certificate of Non-Coverage (CNC) as pre- requisite to implementation. Under the PEISS, the EIA Coverage and Screening Checklist of DAO 2003-30 was developed to determine the coverage and requirements for projects and undertakings. The guideline for coverage screening was recently amended/updated by virtue of EMB Memorandum Circular No. 2014-005, which was issued on 07 July 2014. Project thresholds for coverage screening and categorization are provided in the guidelines. Under the new circular, projects are classified into the following groups, namely: a) Category A – Projects or undertakings which are classified as Environmentally Critical Projects (ECPs). Proponents of these projects implemented from 1982 onwards are required to secure an ECC; b) Category B – Projects or undertakings which are not classified as ECP under Category A, but which are likewise deemed to significantly affect the quality of the environment by virtue of being located in an Environmentally Critical Area (ECA). Proponents of these projects implemented from 1982 onwards are likewise required to secure an ECC; c) Category C – Projects or undertakings not falling under Category A or B which are intended to directly enhance the quality of the environment or directly address existing environmental problems. Project proponents may be issued a CNC subject to evaluation of a submitted Project Description report.; d) Category D – Projects or undertakings that are deemed unlikely to cause significant adverse impact on the quality of the environment according to the parameters set forth in the Screening Guidelines. These projects are not covered by the Philippine EIS System and are not required to secure an ECC but may opt to secure a CNC from the DENR. 424. The documentary requirement for ECC application for Category A (ECPs) is an EIS while the documentary requirement for Category B (non-ECPs but located in ECA) could be an EIS or an IEE report or IEE checklist, depending on the project threshold defined under the screening checklist. Category C project are required to prepare a Project Description report (Parts 1 and 2) to confirm non-coverage, hence, may be issued a CNC by the DENR or to further classify as either Category A or B which requires an ECC. 425. An Environmental Performance Report and Management Plan (EPRMP) is required in securing an amendment of the ECC for existing SWM projects for which an ECC has been earlier issued but are being proposed for modification either due to expansion of land area, increase in capacity or auxiliary component, and/or change in process flow or methodology . 426. According to Annex A of the revised guidelines for coverage screening and standardized requirements of the Philippine EIS System under EMB Memorandum Circular No. 2014-005, solid waste management projects are classified as either Category A or B projects. Table 2 lists the category and documentary requirements for the pilot subprojects of the PSWMS project.

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Table 2. EIA Category and Documentary Requirements for Pilot Subprojects Subproject Category Documentary Remarks Requirement La Trinidad Subproject B EPRMP The DENR-EMB-Cordillera Autonomous Region (CAR) has issued an ECC for the Alno sanitary landfill in La Trinidad. The proposed modifications will require an amendment of the ECC from the EMB CAR. The composting component of the subproject, which has a daily production rate of less than 3,750 MT, will require the preparation of a Project Description in securing the Certificate of Non-Coverage (CNC). Malay Subproject B EPRMP An ECC has been issued for the existing sanitary landfill. The proposed modifications require an amendment of the ECC from the DENR Regional Office. The proposed WTE project in Manoc Manoc require a new ECC. Janiuay Subproject B EIS The proposed sanitary landfill will be designed as Category 2. The proponent LGU is required to secure the ECC from the DENR-EMB Regional Office. Del Carmen Subproject B EIS The proposed sanitary landfill will be designed as Category 2. The proponent LGU is required to secure the ECC from the DENR-EMB Regional Office. 427. The proposed subprojects forwarded for funding by the SWM sector loan are required to comply with the following milestones during the design, construction and implementation of the subprojects with respect to Philippine regulatory requirements: Table 3: Milestones for Environmental Compliance of Subprojects Project Stage Environmental Regulatory Approving Purpose Requirement Entity Detailed Engineering Environmental Compliance Certificate DENR In compliance with PD1586. and Design (ECC) or ECC amendment (for existing ECC is needed prior to ICC projects with ECC) NEDA Board approval. Special Agreement within Protected Area PAMB Applicable to the Malay (SAPA) Subproject and Del Carmen Subproject Bidding ECC and EMP in bid documents For reference for bidders Notice to Proceed Updated EMP prepared by contractor For reference of contractors and with budget (if necessary) subcontractors Construction Permit to Cut/Ball Out trees DENR-FMB Applicable if the proposed project will cut/ball out trees Semi-annual Compliance Monitoring In compliance with PD1586. To Report submitted to DENR-EMB document implementation of Regional Office EMP Operation Discharge Permit DENR-EMB In compliance with RA9275. Applicable for the treatment and discharge of wastewater effluent.

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Project Stage Environmental Regulatory Approving Purpose Requirement Entity Permit to Operate – Air Pollution Source DENR-EMB In compliance with RA8749. Equipment Applicable for WTE subprojects and if the proposed project will utilize generator sets even if as standby units only. Water Rights Permit NWRB For the abstraction from surface water and/or groundwater. Hazardous Waste Registration DENR-EMB In compliance with RA6969. Applicable for management of hazardous wastes such as empty chemical containers, used oil, busted fluorescent lamps Semi-annual Compliance Monitoring In compliance with PD1586. To Report submitted to DENR-EMB document implementation of Regional Office EMP Quarterly Self-Monitoring Report To document monitoring of submitted to DENR-EMB Regional Office environmental parameters.

428. GHG Emissions. As part of environmental impact assessment, the Consultant should assist the Proponent LGU in calculating the contribution of the current solid waste management practices of the LGU as well as the projected GHG emissions with the proposed project. These calculations shall be based on the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Information about the annual solid waste disposal, amount of waste collected, amount of waste brought to the open dumpsite or landfill sites, amount of recyclable wastes, amount of composted waste materials and amount o wastes that are burned needs to be gathered to calculate the GHG contribution. In all waste diversion and management methods, the percent composition of waste needs to be established. The GHG calculation model developed by the Institute for Global Environmental Strategies (IGES) can be downloaded the http://pub.iges.or.jp/modules/envirolib/view.php?docid=4273 As solid waste management data collection progresses with the implementation of the project, GHG emission calculation shall be continued to establish the GHG inventory with the project and its comparison with baseline GHG emissions. The list of data requirements for the estimation of the GHG emissions can be found in the EARF while further information on the IPCC 2006 Guidelines can be downloaded from the IPCC National Greenhouse Gas Inventories website http://www.ipcc-nggip.iges.or.jp/. Appendices from 6 to 9 present GHG Emissions without and with the project in the pilot LGUs

7. Conclusion 429. Findings of the environmental assessments suggest that there are no significant adverse or complex environmental impacts associated with the four proposed subprojects. Identified environmental and social impacts can be readily mitigated to meet environmental standards and regulations through incorporation, application and implementation of each impact’s corresponding mitigation measures and procedures as outlined in the EMP. 430. With this, the subproject IEE reports will suffice as the environmental assessment for the PSWMS. The conduct of further studies or detail environmental impact assessment is no longer necessary.

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V. PROJECT FINANCIAL AND ECONOMIC ANALYSIS A. Financial Analysis

1. Methodology and Assumptions 371. The financial analyses of the subprojects were conducted to (i) determine the appropriate level of fees that would achieve the financial viability of the subprojects; (ii) ensure that fees are affordable to households, particularly those in the low-income group; and (iii) forecast the financial performance of the LGUs to determine their financial condition and the sustainability of their various operations, including the subprojects. 372. The analyses were undertaken in accordance with the ADB's Framework for the Economic and Financial Appraisal of Urban Development Sector Projects, Guidelines for the Financial Management and Analysis of Projects, and the publication, Financial Due Diligence, A Methodology Note.75 373. The financial internal rate of return (FIRR) was calculated through comparison of the ‘without project’ and ‘with project’ conditions at constant 2014 price. Price contingencies, inflation and interest during construction (as a result of debt financing, if any) were excluded in the calculation of the FIRR. Revenues and costs in the subprojects’ profit and loss and cash flow statements were stated at constant 2014 price. Price contingencies were calculated using local inflation factors (4% in 2015 and thereafter) for local currency costs and foreign inflation factors (1.0% in 2015, 1.4% in 2016 and thereafter). An exchange rate of Php43.50 per US$1.00 was used when converting foreign currency costs to local currency equivalent. 374. Operating revenues and costs. Operating revenues were derived from proposed garbage fees, tipping fees, environmental fees, income from recycling, and sale of compost and electricity76. Prevailing market prices of recycled materials and compost in the areas were assumed in the analysis. The initial biomass feed-in-tariff approved by the Energy Regulatory Commission on 27 July 2012 to apply to generation from renewable energy sources was used in calculating electricity sales. Annual O&M costs for the subprojects were based on the technical team’s estimates, calculated on the basis of the operating characteristic of the components. 375. Subproject capital costs and financing plan. The subprojects’ capital costs were based on the technical team’s estimate, inclusive of engineering base costs, taxes and duties, physical and price contingencies, and consulting services. The financial analyses assumed that the subprojects’ capital costs would be financed by a 100% grant from the national government, except for Malay. Malay would provide equity equivalent to $5.1 million or 29% of total subproject cost due to the waste-to-energy plant component. The national government grant would be sourced from the proceeds of the loan and grant from ADB and co-financiers and the counterpart contribution from the national government for the sector project. The national government would be responsible for the repayment of the loan from ADB and co-financiers. The weighted average cost of capital (WACC) for the subprojects was estimated at 2.5%, in real terms.

75 ADB. 1994. Framework for the Economic and Financial Appraisal of Urban Development Sector Projects. Manila; ADB. 2005. Financial Management and Analysis of Projects. Manila; ADB. 2009. Financial Due Diligence A Methodology Note. Manila. 76 Sale of electricity applies to Malay; tipping fees apply to Del Carmen and Janiuay; sale of compost applies to La Trinidad; income from recycling applies to Del Carmen, Janiuay and Malay; and garbage fees apply to all.

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2. Proposed Fees and Affordability 376. Garbage fee. The revenue ordinances in the LGUs are proposed to be amended to include garbage fee to be collected from households and simplify77 the entire schedule of garbage fee for business establishments for cost-effectiveness and easier implementation. The proposed garbage fees would ensure the recovery of at least the O&M costs for SWM without being subsidized by internal revenue allotment (IRA) funding. Table 5.1 Proposed Garbage Fee

Annual Fee (Php) LGU Household Business Del Carmen 500 3,000 Janiuay 600 3,000 La Trinidad 500 3,500 Malay 360 4,000 Source: PPTA consultant.

377. Tipping fee. The subproject in Del Carmen (Siargao) was designed with the assumption that the proposed SLF components would also be used by the other municipalities in the island of Siargao. It is assumed that other LGUs would collect solid wastes from their respective municipalities and transport them to the SLF site in Del Carmen for processing, treatment and eventual disposal. Each municipality shall pay a tipping fee of Php1,000/ton to defray Del Carmen’s operating expenses for the SLF. 378. Affordability and willingness to pay. An affordability analysis was conducted to determine if households, particularly those in the low-income group, can afford to pay the proposed garbage fee. The results of the analysis revealed that the percentage of monthly household income spent on garbage fee does not exceed 1%. Based on generally accepted affordability principle that the expenditure on garbage shall not exceed 1% of household income, the proposed fees are considered affordable. 379. The socio-economic survey conducted in each municipality revealed that a great majority of respondents expressed support to the proposed subprojects. The proposed fees are within the respondents’ willingness to pay.

3. Financial Performance of SWM Operations 380. Recent financial performance. In recent years, the SWM operations of the LGUs were subsidized by IRA funding, except in Malay78. Garbage fees collected in the municipalities were not enough to cover even the O&M costs for SWM. The losses were largely due to low level of fees on businesses and non-imposition of fees on households, except in the case of La Trinidad. 381. Projected financial performance. The projected financial performance of the subprojects is summarized below for the period 2015-2025. The financial projections show that

77 LGUs have various business classifications for garbage fee (e.g., Del Carmen has over 500) making implementation of fee collection very cumbersome and time consuming. 78 Malay SWM operation is subsidized by the environmental fee collected from tourists.

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Del Carmen, La Trinidad and Malay will recover full O&M costs and depreciation. No annual operating subsidy from IRA will be required when subproject facilities become fully operational by 2017. These municipalities could accumulate enough cash from the SWM operations to fund the acquisition of equipment and vehicles as they become due for replacement. Janiuay will be able to cover full O&M costs but not the depreciation cost. No annual operating subsidy from IRA is required for O&M. Capital subsidy for replacement of run-down SWM capital assets will be required. Table 5.2: Summary of SWM Financial Projections (in million Php)

DEL CARMEN 2018 2019 2020 2025 2030 2035 Total Revenue 11.3 12.1 12.9 17.1 22.8 30.0 Total O&M Expenses 1.5 1.8 2.1 2.9 2.9 2.9 Income before Depreciation 9.8 10.3 10.8 14.2 19.9 27.1 Total Depreciation 2.1 2.1 2.1 2.1 2.1 2.1 Net Income 7.7 8.2 8.7 12.1 17.9 25.0 JANIUAY 2018 2019 2020 2025 2030 2035 Total Revenue 8.3 8.7 12.1 18.8 32.8 42.6 Total O&M Expenses 4.4 4.6 5.6 7.8 8.7 8.7 Income before Depreciation 3.9 4.1 6.6 11.0 24.1 34.0 Total Depreciation 0.9 8.6 8.6 8.6 8.6 8.6 Net Income 3.02 (4.51) (2.02) 2.46 15.57 25.38 LA TRINIDAD 2018 2019 2020 2025 2030 2035 Total Revenue 39.8 42.3 49.7 64.6 102.3 136.5 Total O&M Expenses 18.3 19.3 20.1 23.5 24.0 24.8 Income before Depreciation 21.5 23.0 29.6 41.2 78.3 111.7 Total Depreciation 11.3 11.3 11.3 17.4 17.4 17.4 Net Income 10.2 11.7 18.3 23.8 60.9 94.3 MALAY 2018 2019 2020 2025 2030 2035 Total Revenue 88.5 99.4 110.8 191.3 191.3 191.3 Total O&M Expenses 23.1 26.0 29.0 44.8 44.8 44.8 Income before Depreciation 65.4 73.3 81.8 146.5 146.5 146.5 Total Depreciation 41.4 41.4 41.4 37.7 37.7 37.7 Net Income 24.1 32.0 40.4 108.8 108.8 108.8 Source: PPTA Consultant

4. FIRR and Sensitivity Analysis 382. The results of the FIRR calculation and sensitivity analysis for subprojects are shown below. The fees used in the analysis are consistent with the fees as discussed in paragraphs 6 and 7. Based on the results, it can be concluded that all the proposed subprojects are financially

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project viable under the base case scenario and also under adverse changes in conditions. The FIRR and sensitivity analysis results would not require annual operating subsidy as it could recover full O&M costs and partial capital costs. The sensitivity analysis for the four subprojects indicates that the subprojects are most sensitive to a subproject delay and decrease in revenues, but remains well above the WACC calculated at 2.5%. Table 5.3: FIRR and Sensitivity Analysis

DEL CARMEN Change NPV FIRR SI (IRR) SV (IRR) Base Case 72.4 7% Case 1 - Increase in Capital Costs 10% 56.4 6% 2.69 37% Case 2 - Increase in O&M Costs 10% 68.9 7% 0.45 224% Case 3 - Decrease in Revenues 10% 45.7 5% 3.44 29% Case 4 - Project Delay 1 Year Delay 48.4 5% NPV lower by 33% JANIUAY Change NPV FIRR SI (IRR) SV (IRR) Base Case 57.0 5.2% Case 1 - Increase in Capital Costs 10% 39.4 4.2% 3.5 0.3 Case 2 - Increase in O&M Costs 10% 46.9 4.7% 1.7 0.6 Case 3 - Decrease in Revenues 10% 23.6 3.6% 5.6 0.2 Case 4 - Project Delay 1 Year Delay 26.5 3.7% NPV lower by 0.5 LA TRINIDAD Change NPV FIRR SI (IRR) SV (IRR) Base Case 398.4 11.39% Case 1 - Increase in Capital Costs 10% 361.5 10.11% 1.44 69% Case 2 - Increase in O&M Costs 10% 367.4 10.75% 0.72 139% Case 3 - Decrease in Revenues 10% 290.7 9.30% 2.35 43% Case 4 - Project Delay 1 Year Delay 290.7 8.77% NPV lower by 27% MALAY Change NPV FIRR SI (IRR) SV (IRR) Base Case 936 11% Increase in Capital Costs 10% 850 10% 1.42 70% Increase in O&M Costs 10% 879 11% 0.49 203% Decrease in Revenues 10% 700 9% 2.10 48% Project Delay 1 Year Delay 764 9% NPV lower by 18% 1/ NPV = Net Present Value discounted at WACC 2/ SI = Sensitivity Indicator (ratio of % change in FIRR above the cut-off rate of WACC to % change in a variable) 3/ SV = Switching Value (% change in a variable to reduce the FIRR to the cut-off rate of WACC) Source: PPTA Consultant

5. Subproject and Financial Sustainability 383. The projected financial performance of the subprojects shows that the SWM operations of all pilot LGUs would be able to fund all O&M expenses and would not require annual operating subsidy. The municipalities would be able to accumulate enough cash to fund future

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project asset replacement without the need for capital subsidy. Achieving such financial performance indicates financial sustainability. 384. Except for Malay, financial sustainability of the subprojects would however require that the revenues earned are ring-fenced and used exclusively for the payment of SWM expenditures. This is already being done by Malay LGU. An improved SWM accounting system for the other LGUs would be necessary. SWM subsidiary ledger accounts should be created in the LGU accounting system to separately record SWM fees and operating expenses to improve monitoring and analysis of SWM operations. The subsidiary ledger system should have sub- cost centers (e.g. waste collection, sanitary landfill operations, resource recovery operations, etc.) while the details of expenses should be appropriately classified into personnel cost; fuel, oil and lubricants cost; repair and maintenance cost; materials and supplies; and other operating expenses. The LGUs should conduct an annual review of the SWM fees and revise them, if necessary, to ensure 100% recovery of at least the annual O&M costs, periodic major maintenance and depreciation of equipment. 385. A forecast of the General Fund79 of the municipalities for the period 2014-2020 was conducted. The objectives of the forecast were to: (i) ascertain the financial capability of the municipality to contribute equity if required, as in the case of Malay, in the implementation of the subproject; (ii) determine the financial sustainability of the entire LGU operations in the municipality, including the subproject; and (iii) establish the LGU’s compliance with the annual debt service ceiling80 and development expenditure threshold81 under the 1991 LGC. 386. The fiscal conditions of the LGUs were projected based on the review of past trends and the results of subproject analyses. The financial projections show that Malay has the capacity to contribute equity to the subproject; the entire LGU operations in the municipalities, including the subprojects, are financially sustainable; and the debt service ceiling and development threshold are complied with during the forecast period.

79 Consist of taxes, fees, and revenues received which are available for the payment of expenditures, obligations or purposes not specifically declared by law as accruing and chargeable to, or payable from, any other fund. 80 Not to exceed 20% of annual regular income. 81 Not lower than 20% of internal revenue allotment.

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Table 5.4: Summary of Financial Projections on General Fund Balance (million Php)

BUDGET PROJECTION 2013 2014 2015 2016 2017 2018 2019 2020 DEL CARMEN Local Revenues 53.34 60.44 68.61 78.00 88.82 101.26 111.35 122.49 External Sources 46.30 53.25 61.23 70.42 80.98 93.13 102.44 112.68 Less: Current Operating Expenditures 57.28 61.89 66.90 74.46 83.04 92.77 102.04 112.25 Net Operating Income (3.94) (1.45) 1.71 3.54 5.78 8.50 9.31 10.24 Add: Non‐Income Receipts 5.00 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Less: Non Operating Expenditures 1.03 1.03 1.03 1.03 1.03 1.03 1.13 1.24 Net Increase/Decrease in Funds 0.03 (2.48) 0.68 2.51 4.75 7.47 8.18 8.99 JANIUAY Local Revenues 16.55 21.18 23.45 25.93 28.65 31.64 34.94 38.59 External Sources 89.09 94.50 100.19 106.22 112.61 119.39 126.58 134.20 Total Current Operating Income 105.64 115.69 123.64 132.15 141.26 151.03 161.52 172.80 Less: Current Operating Expenditures 55.06 56.67 58.32 60.03 61.78 63.59 63.95 65.87 Net Operating Income 50.58 59.02 65.32 72.13 79.48 87.44 97.57 106.93 Add: Non‐Income Receipts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Less: Non Operating Expenditures 19.40 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net Increase/Decrease in Funds 31.18 59.02 65.32 72.13 79.48 87.44 97.57 106.93 LA TRINIDAD Local Revenues 184.67 204.76 231.38 261.98 297.19 337.74 371.02 408.12 External Sources 116.00 133.40 153.41 176.42 202.88 233.32 256.65 282.31 Total Current Operating Income 300.67 338.16 384.79 438.40 500.08 571.06 627.67 690.43 Less: Current Operating Expenditures 182.40 201.78 223.66 248.40 276.41 308.16 338.98 372.88 Net Operating Income 2.27 2.99 7.72 13.58 20.78 29.58 32.04 35.24 Add: Non‐Income Receipts 1.20 Less: Non Operating Expenditures 3.47 3.47 3.47 3.47 3.47 3.47 3.81 4.19 Net Increase/Decrease in Funds ‐ (0.48) 4.26 10.12 17.32 26.11 28.22 31.05 MALAY Local Revenues 241 269 299 334 372 416 464 519 External Sources 51.26 54.33 57.59 61.05 64.71 68.59 72.71 77.07 Total Current Operating Income 292.37 322.95 356.99 394.92 437.21 484.39 537.08 595.96 Less: Current Operating Expenditures 231.58 254.65 281.00 311.15 345.68 385.26 430.70 482.93 Add: Non‐Income Receipts Less: Non Operating Expenditures 18.35 18.35 18.35 18.35 18.35 18.35 18.35 18.35 Net Increase/Decrease in Funds 60.79 68.30 75.99 83.77 91.53 99.13 106.38 113.04 Source: PPTA consultant.

B. Economic Analysis

1. Economic Rationale 387. The proposed investments aim to improve and expand access to the solid waste management services provided by municipalities. The improved and expanded service would bring about better environmental and sanitation conditions in the municipalities and nearby areas. 388. The present waste collection systems are limited. Collected wastes are disposed into open dumpsites without treatment. With growing population, the lack of investments in capacity expansion and environmentally sound methods and facilities in handling, treating and disposing wastes would continue to deprive an increasing number of people of a basic and essential municipal service. With mounting wastes left uncollected, improperly treated and disposed off,

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project this could lead to further deterioration of the environment which could affect the health and well- being of the population.

2. Methodology and Assumptions 389. The economic analyses of the subprojects were conducted in accordance with ADB’s Guidelines for the Economic Analysis of Projects82 and the Framework for the Economic and Financial Appraisal of Urban Development Sector Projects83. 390. Alternative project designs were assessed, in consultation with the LGUs and other stakeholders, to ensure that the subprojects are in accordance with technical and environmental standards and the most cost effective option within the financing capacity of the LGUs. 391. Benefits and costs were arrived at through comparison of the ‘without project’ and ‘with project’ conditions. Benefits and costs were estimated over a period of 20 years at constant 2014 price. An exchange rate of US$1.00 to Php43.50 was used when converting foreign exchange costs to local currency equivalent. All costs were valued using the domestic price numeraire. Economic costs were derived from the technical team’s financial estimates of capital and O&M costs, adjusted for transfer payments and any other market distortions. Taxes and duties were excluded because they represent transfer payments. Traded goods, net of taxes and duties, were adjusted by the shadow exchange rate factor of 1.2 while a factor of 1.0 was applied for non-traded goods (except for unskilled labor). For unskilled labor, the shadow wage rate factor of 0.6 was used. These parameters are consistent with those used in recent ADB- financed projects in the Philippines. Economic opportunity cost of capital (EOCC) of 12% was assumed for the analysis.

3. Economic Benefits 392. The proposed subprojects would bring significant economic, environmental and health benefits to the municipalities and nearby areas. The benefits would accrue to the affected communities as a whole, both poor and the rich, and not only to the direct beneficiaries of the SWM service. The economic benefits quantified were (i) reduced natural resources use due to recycling; (iii) savings from the use of compost materials instead of commercial fertilizer; (iii) resource savings from replaced energy source; and (iv) health benefits. 393. The proposed MRF84 and composting85 components would reduce the volume of wastes to be disposed and treated at the SLFs and thus extend the SLFs’ economic lives. Recyclable materials would be segregated at the MRF and sold to recycling centers to generate revenues. By substituting recovered scrap materials for the use of new trees, metal ores, minerals, oil, and other virgin materials, recycling would reduce the pressure to expand forestry and mining production, which could be environmentally damaging. The benefit from reduced natural resources use is conservatively valued at 70% to 80% of the market price of recycled materials. 394. The compost materials would also be sold and generate revenues. By partially substituting commercial fertilizer with compost materials, it would reduce the cost to farmers and likewise minimize environmental degradation. The benefit is conservatively valued at almost half of the market price of commercial fertilizers.

82 ADB. 2007. Guidelines for the Economic Analysis of Projects. Manila. 83 ADB. 1994. Framework for the Economic and Financial Appraisal of Urban Development Sector Projects. Manila. 84 Applies to Del Carmen, Janiuay and Malay. 85 Applies to La Trinidad.

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395. As of October 2013, the energy plants in the Visayas power grid consisted of 54% geothermal, 36% coal, 9% diesel and 1% renewable energy86. Malay is in the Visayas and is supplied with electricity from the grid. The analysis assumes that with the proposed waste-to- energy (WTE) plant in Malay, the equivalent kWh of energy generated from coal, a relatively cheaper but less environment-friendly source of energy, would be displaced from the grid. Domestic coal production accounted for 14% of the country’s demand for coal in 2010 and imported coal supplied the gap87. The proposed WTE plant would generate resource savings equivalent to the economic value of coal importation displaced from the grid. 396. Many causes of diseases may be due in part to environmental factors. In the 2006 World Bank (WB) study88 for the country, it was estimated that air pollution accounted for 5% of the environmental causes of diseases while 17% were due to water pollution, poor sanitation conditions and hygiene practices. Inadequate and environmentally ineffective SWM service contributes to air pollution, water pollution and poor sanitation. The subproject will increase the coverage of wastes collection while in some areas, the existing dump site will be closed and a new sanitary landfill will be constructed, operated and maintained in accordance with the best principles of public health and environmental protection. The subproject will bring about quality improvements in public health. 397. Health benefit was quantified using the Disability Adjusted Life Year (DALY) approach89. A DALY is a measure of overall disease burden, expressed as the number of years lost due to ill-health, disability or early death. The health benefit attributable to the subproject is reduced health risks from outdoor pollution as measured through savings in DALYs. It was observed that the lack of proper SWM in the municipalities prompted many households to result in burning their trash—one of the major causes of outdoor pollution. 398. The World Health Organization (WHO) estimated the total DALYs of the Philippines at 19,078 per 100,000 population90.The WHO approach of calculating the annual economic value of a DALY as equivalent to a country’s gross national income (GNI) per capita was adopted91 .The country’s estimated GNI per capita in 2012 was $6,170 (purchasing power parity)92. The analysis conservatively assumes a GNI per capita growth in real terms at 1% per annum. Savings in DALY attributable to the subproject is assumed at 1% of the economic value of the calculated DALYs for the municipality based on its projected population.

86 NGCP. 2013. National Grid Corporation of the Philippines Generation Mix. Manila. 87 APEC. Energy Demand and Supply Outlook for Philippines. 5th Edition. 88 World Bank. 2006. Philippines Environment Monitor. Washington D.C. 89 The approach was developed by Harvard University for the World Bank in 1990 for a study that provided a comprehensive assessment of mortality and disability from diseases, injuries and risk factors. The WHO subsequently adopted the method in 1996. Determination of DALY is continually revised by the WHO. 90 World Health Organization. 2004. World Health Report. Geneva, Switzerland. 91 The WHO Commission of Macroeconomics and Health assumes that each DALY can be valued at one year of per capita GNI to arrive at a conservative estimate of the economic value of a DALY. 92 World Bank. 2012. World Development Indicators. Washington D.C.

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4. Results of Economic Analysis 399. The results of the economic and sensitivity analysis of the subprojects are shown below. Based on the results, it can be concluded that the proposed subprojects are economically viable under the base case scenario and under adverse changes in conditions. The sensitivity analysis indicates that the proposed subprojects are most sensitive to a subproject delay and a decrease in subproject benefits, but remains above the EOCC. Table 5.5: EIRR and Sensitivity Analysis

DEL CARMEN Change NPV EIRR SI (IRR) SV (IRR) Base Case 80 20% Case 1 - Increase in Capital Costs 10% 68 19% 2.08 48% Case 2 - Increase in O&M Costs 10% 79 20% 0.13 791% Case 3 - Decrease in Benefits 10% 59 18% 2.42 41% Case 4 - Benefits Delay 1 Year Delay 52 17% NPV lower by 35% EIRRs: Change NPV EIRR SI (IRR) SV (IRR) Base Case 94 22% Case 1 - Increase in Capital Costs 10% 82 20% 1.91 52% Case 2 - Increase in O&M Costs 10% 91 21% 0.29 349% Case 3 - Decrease in Benefits 10% 69 19% 2.40 42% Case 4 - Benefits Delay 1 Year Delay 61 18% NPV lower by 35% LA TRINIDAD Change NPV EIRR SI (IRR) SV (IRR) Base Case 399 32% Case 1 - Increase in Capital Costs 10% 374 30% 1.32 76% Case 2 - Increase in O&M Costs 10% 390 32% 0.22 449% Case 3 - Decrease in Benefits 10% 324 29% 1.68 60% Case 4 - Benefits Delay 1 Year Delay 302 25% NPV lower by 24% MALAY Change NPV EIRR SI (IRR) SV (IRR) Base Case 332 18% Increase in Capital Costs 10% 269 17% 2.40 42% Increase in O&M Costs 10% 315 18% 0.47 213% Decrease in Benefits 10% 220 16% 3.14 32% Benefits Delay 1 Year Delay 173 15% NPV lower by 48% 1/ NPV = Net Present Value discounted at EOCC of 12% 2/ SI = Sensitivity Indicator (ratio of % change in EIRR above the cut-off rate of 12% to % change in a variable) 3/ SV = Switching Value (% change in a variable to reduce the EIRR to the cut-off rate of 12%) Source: PPTA Consultant

5. Subproject Economic Sustainability 400. The economic sustainability of the proposed subprojects largely depends on the subprojects’ financial sustainability. Unless the subprojects are financially sustainable, the

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project economic benefits assumed in the analysis would not materialize. The results of the projected financial performance of the subprojects as well as the LGUs as owners of the subproject facilities show that both the subprojects and the LGUs are projected to earn profits each year over the forecast period when the subproject facilities become operational. The financial sustainability of the subprojects would require, however, that fees are periodically reviewed and adjusted to keep pace with the rising operating costs due to inflation.

6. Poverty Impact Ratio 401. The costs and benefits of the subprojects are shared among different groups. Based on the results from the financial and economic analyses, an assessment of the distribution of subproject benefits and costs was undertaken to determine which participant would gain from the subprojects or incur a loss. An evaluation was also conducted to ascertain which portion of the net gains of the subprojects would ultimately benefit the poor. The results of the evaluation revealed that the poverty impact ratio (PIR) were 36.3% in Del Carmen, 27.7% in Janiuay, 22.8% in La Trinidad and 31.2% in Malay. With the PIR results, it can be concluded that the implementation of the proposed subprojects would have a positive poverty reducing impact in the areas.

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VI. RISK MITIGATION MEASURES AND RECOMMENDATIONS

A. General

402. Three categories of risks were considered in this study: (i) those under the control of the Project, (ii) those that depend on the decisions or actions of the Government and other agencies, and (iii) those associated with uncontrollable events.

B. Risks Under the Control of the Project

403. The risks under the control of the Project correspond to the institutional and governance, policy, physical component, procurement, social, environmental, financial and economic aspects (Table 6.1). Table 6.1 Risks Under the Control of the Project Risk Risks under the Control of the Project Mitigation Level Institutional and Governance Risks Limited capacity for, and knowledge of ADB’s Low - Provide training on ADB’s procurement procurement guidelines medium guidelines to PID staff Procurement processes cause delays in Low- Follow ADB agreed timetable for Project implementation. medium evaluation and award of tenders Weaknesses in procurement controls reduces Low- Follow ADB procedures with disclosure of or prevents transparency or effectiveness medium procurement related information in PID websites Corruption during Project implementation Low - Ensure transparency in financial matters. medium Provide and disseminate regular bulletin on Project expenditures Project delay due to poor timing of recruitment Low - Monitor progress regularly; performance and /or unsatisfactory performance of design Medium standards included in consultant’s and supervision consultants contracts Policy Risks Non-inclusion of use of WTE in RA 9003 Medium Use of WTE encouraged under Renewal Energy Act None acceptance or imposition of garbage fees Medium Dialogue with stakeholders supported by on residential areas - High financial, economic and environmenal analyis Physical Component Risks Non-compliance by contractors with the Medium Strict monitoring supported by well crafted required technical specifications. - High contracts with provisions for penalties, suspension and replacement Limited resources (equipment or financial) or Medium Capacity building for LGU and DENR staff technical know of LGU and DENR to monitor - High construction and operation of facilities Procurement Risk Lack of bidders complying with tender Medium Early invitations for expressions of interest requirements – High

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Excessively high tenders Medium FS cost estimate to be validated during design stage Social Risk Host barangay object to the use of identified High IEC, dialogue with barangay officials and site for SWM facilities local residents Inadequate/inappropriate provision for income Low Monitor progress regularly and take early restoration of affected wste pickers preventive measures steps thru grievance mechanisms NGOs, civil societies and groups Medium Fully compliance with the related lows, oppose a site and technology selections for rules and regulation Philippines and SWM, NIMBY appropriate IEC campaigns

Environmental Risks Site selected for SWM facilities vulnerable to Medium Proper design measures based on seismic ground shaking due to proximity to major active risk analysis, engineering geologic fault mapping of SLF site

Highly permeable limestone formation in Medium Use HDPE liner to reduce potential for Boracay entry of leachate into the local groundwater system; effluent monitoring Overflow of leachate pond Low Recirculation of leachate; accept only residual waste into the SLF Financial Risks Reluctance or non-willingness of stakeholders Low- Proposed fee structure is supported by to pay for collection of waste medium willingness to pay studies; strict Project implementation and customer focused management approach Revenue collection insufficient to cover Revenue collection insufficient to cover Medium Operation and Maintenance costs Operation and Maintenance costs Economic Risks Project cost overrun due to delays in Low Monitor progress regularly and take construction appropriate action early Project output is below target Low Monitor progress regularly and take action early; confirmatory surveys during design stage; Project targets based on updated design Service provided by the improved infrastructure Low Proposed SWM fee structures are to be and equipment is less than Projected due to supported by willingness to pay studies limited consumer affordability or willingness to pay Medium Operation and Maintenance costs are adequately covered d in the financial plan; venue collection insufficient to cover Operation review and update of financial and and Maintenance costs technical analysis during the design stage Source: PPTA Consultant

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C. Risks that Depend on Decisions or Actions of GoP or Other Agencies

404. These risks shall be mitigated through Project design and incorporated into implementation management and procedures. Table 13.2 summarizes these risks.

Table 6.2 Risks that depend on Decisions or Actions of GoP or Other Agencies Risks that depend on Decisions or Risk Level Mitigation Actions of GoP or Other Agencies Prepare sound feasibility study and NEDA does not approve or delays the High EA appropriate consultation with the Project implementation main stakeholders Include safeguards in procurement Poor governance and corruption that may and Project operations in design, affect Project implementation Medium policy change such as direct NG support to SWM through feed in tariff Monitor progress regularly and take Project delay/cancellation due to slow appropriate action early, reduce Medium disbursement in the project implementation unnecessary bureaucracy by capacity building and training Present sound investment plan and a full compliance with the related Uncertain and vacillating policies on WTE High lows, rules and regulation in the and PPP and investments in general Philippines and appropriate IEC campaigns Source: PPTA Consultant

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VII. CONCLUSIONS AND RECOMMENDATIONS A. General

405. The proposed PSWMP, when implemented, directly addresses the current gaps in the present solid waste management systems confronting the target LGU beneficiaries. This will serve as an antecedent to the following positive benefits: the enhancement of the current segregation and collection system through the adoption of automated, faster, sanitary and more efficient recovery of recyclables; management of combustible or high-energy value waste, which are otherwise, a high-potential energy resource if further processed into RDF or considered as input to generate electricity through gasification; reduction of residues to be disposed from 15% to 25%; expansion of SLF capacities; capacity building of LGUs through enhanced SWM knowledge and institution of a systematic recording, storage and retrieval of SWM data; and potential additional revenue stream from sale of RDF, recyclables and power. 406. The operation of the MRF and the WTE will be undertaken by the private sector that will provide the technical know-how and experience which the LGUs currently do not possess. Sustained operations can be attained provided the following conditions are satisfied: 1. LGU should continue and enhance its current practice of source segregation of waste and segregated waste collection, a full enforcement of RA 9003. 2. The Environmental and project implementation staff should undergo a comprehensive training with emphasis on operation of facilities and equipment, SWM data management system and contract management. 3. Strengthening of the current institutional set up 4. Continued ring-fencing of SWM revenues 407. Once the loan or grant has been approved, detailed engineering studies for the facilities, collection system and waste composition and generation should be conducted to validate and update the findings in the feasibility study.

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Appendices

1. Project Design Framework (DFW) PPTA 8115 PHI 2. Problem Tree Analysis 3. External Assistance 4. Subproject Brief 4.1 Del Carmen Subproject Profile 4.2 Janiuay Subproject Profile 4.3 La Trinidad Subproject Profile 4.4 Malay Subproject Profile 5. IPP Outline 6. GHG Emissions Del Carmen without and with the project in the pilot LGUs 7. GHG Emissions Janiuay without and with the project in the pilot LGUs 8. GHG Emissions La Trinidad without and with the project in the pilot LGUs 9. GHG Emissions Malay/Boracay without and with the project in the pilot LGUs

Appendix 1

Design and Monitoring Framework APPENDIX 1

1

Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets and Data Sources and Assumptions Indicators Reporting and Risks Mechanisms Impact By 2020: Pre-Project Assumption Improved public Improved health situation related to benchmarking and LGUs remain health and well incidence of vector and water-borne post-Project committed to being and diseases by 10% in the eight evaluation improving SWM economic participating LGUs infrastructure and opportunities in 8 MW WTE capacity established to Health monitoring services. participating LGUs support local economy and statistics report Risks Working opportunity 230 people at LGU’s MENRO Urban growth MRF/WTE reports and statics including migration Sanitary recovery of recyclables exceeds forecasts. Eradication of six open dump sites NSWMC annual in participating LGUs out of 602 as reports Weak environmental of 2013 law enforcement

Outcome By 2020: Annual reports of Assumptions 1. Improved 85% of solid waste collected and participating LGUs’ SWM agenda has efficiency and disposed properly compared to ENRO been adopted as a reliability of present average of 55% in national priority. delivery of SWM participating LGUs NSWMC statistics services LGUs are committed 50% of waste diversion in EMB regional to improve their SWM participating LGUs compared to reports practice. present national of 26% national average waste diversion rate ADB completion Relevant institutions and 3R concept enforced at the reports mechanisms are in place participating LGUs 60% of women practice LGUs annual report Risks 2. Sustained segregation and proper waste of waste Technology participation of disposal at home disposal/Energy applications restricted women in SWM production by existing policies activities 60% of women are involved as volunteers in IEC, advocacy and NSWMC statistics Land not available for monitoring activities SLF and other SWM facilities Outputs 1. SWM priority By 2020: . ADB project Assumptions Infrastructure will 1.1 Construction of 6 SLF, MRFs completion report . The 4 pilot LGUs be implemented 1.2 Construction of 2 WTE systems . NSWMC statistics endorse the SPAR 1.3 Closure of 5 existing dumpsites . Performance and associated  SWM 1.4 Mining of 4 landfill sites report (based on budget infrastructure 1.5 Full range of waste handling baseline survey . Private sector is completed equipment purchased for 8 data) prepared interested in  SWM LGUs by LGU managing and Equipment and 1.6 2 WTE plant has been . LGUs subproject operating WTE goods implemented by PPP concept completion . Women’s access to purchased 1.7 4 number of women’s group reports and capability for  Working have established community MSWDO / entrepreneurship women and based businesses out of Municipal SWM ensured housewives recyclables Board annual . Environmental and

2

Appendix 1

are reduced 1.8 All identified Affected Persons report social risks can be burden from (AP’s) in Project areas (e.g., . NSWMC statistic mitigated engaging in waste pickers, and waste reports Risks additional SWM sorters, among others) . Private sector . The 4 pilot LGUs do activities assisted to engage in and LGU not subscribe to outside of the alternative income-generating contracts Project design home activities thru livelihood skills . FGD and . NIMBY  Low income training, micro- baseline study . GOP does not men and entrepreneurship, and job . List of low income subscribe to sector women are placement female and male reform initiatives prioritized 1.9 Improvement of income headed relative to the Clean /assisted for (minimum of 20% increase) of household Air Act skills training AP’s with Project or at least . List of . Weak private sector using restored to pre-Project levels participants to the involvement in SWM recyclable 1.10 At least 70 % in each barangay livelihood skills financing, materials and attend orientation meetings on training implementing and have increased project mechanisms and benefit . List of low income operation of income 1.11 At least 50 % in each barangay female and male infrastructure  Low income attend leadership /planning household heads . SWM fee not men and workshops to develop plan for given capital applied and /or women headed distributing tasks and activities assistance increased to meet households among household members . Trimestral O&M costs willing to pay 1.12 At least one elder household monitoring report . Other livelihood for garbage fee member involved in SWM . List of low income support for men and  Women activities at home female and male women households community 1.13 100% of low income headed after livelihood skills volunteers’ households through the 4 Ps household training are in- SWM program of MSWDO are . List of place knowledge ,IEC identified participants to the . Male- and female- and advocacy 1.14 60% of low income women livelihood skills headed households and /men are given livelihood skills training are convinced on mobilization training . List of low income SWM benefits and skills 1.15 At least 60% of low income female and male comply with SWM strengthened male/female households household heads ordinances.  LGU staff in received capital assistance for given capital . Attendance to charge with their business assistance trainings prioritized SWM 1.16 At least 50 % of female and . Trimestral . GU male and female capacitated in male headed household not monitoring report staff have the time planning, willing to pay are reached and . List of names of to attend trainings implementing convinced during follow-up and those who are and and monitoring monitoring visits to discuss full willing to pay SWM gender project benefits and SWM garbage fees sensitive SWM ordinances after follow up approaches 1.17 At least 20 volunteers /SWM visits advocates’ training needs . Trimestral identified monitoring report 1.18 All identified women volunteers . List of women attended SWM enhancement SWM volunteers trainings or advocates 1.19 At least 60 % of LGU male and attended female staff trained on gender enhanced SWM sensitive approaches in the trainings implementation of SWM . Trimestral 1.20 SWM gender monitoring and monitoring report evaluation instrument s and . List of LGU Male forms prepared for the conduct and female staff

3

Appendix 1

of monitoring activities trained on Gender Sensitive SWM approaches . Copy of SWM gender monitoring forms . Trimestral monitoring report 2. Information, By 2020: . Subproject Assumptions Education, and At least 80% of rural and 70% progress reports . Households are Communication urban barangays men and women convinced on SWM (IEC) and receive SWM awareness education . IEC training benefits and comply Knowledge by media and print, electronic, face- reports with SWM Management to-face events. ordinances. Risks 50 % of participants and at least Barabgay SWM . Modern media info 50% of trainers are women dealing board record does not reach all with SWM issues due to expensive smart phones, tablets, etc 3. Capacity Building and 40 staffs are hired and technical . PMO, LGU staff Assumptions Enhancement and financial management, training records . Audiences are contacting and technical capacity willing to participate training provided to PMO and 240 in SWM tailings well staff for LGUs (50%-male-50% Risks female staff trained) . Specifically, NSWNC, DENR- NSWMC, DENR-EMB regional EMB training Offices and National and Regional . PMO, LGU staff requires also from Ecological Centers all in all, 200 training records trainers a good people receive training and . PIMSC reports capacity to deliver capacity-building data the proposed management, information and education modules knowledge management system, strategic planning and policy analysis of SWM (50%-male-50% female staff trained) 4. Project PMO and technical and financial Project Monthly Assumptions Implementation management improvement report/annual . Project and Non-Pilot Project design, bidding reports implementation Management construction and commissioning performance is Support GAP activities reasonable. Environmental Monitoring reports Risks Annual/Mid Term reviews Coming election Project completion report may hinder the project implementation. Activities with Milestones Inputs 1. SWM priority Infrastructure will be implemented 1.1 Consultants are recruited by June 2016 ADB loan: $70 million 1.2 Detailed Engineering design is prepared by December 2016 ADB grant: $1 million 1.3 First Contract awarded by December 2016 UEIF grant: $2 million 1.4 Land acquisition is completed by December 2016 Government: $22.13 1.5 Environmental clearance obtained ( before award contract) by Dec. 2016 million

4

Appendix 1

1.6 Civil works are commenced by January 2017 1.7 Infrastructure constructed, commissioned, and made operational in phases between from January 2017 to March 2021 2. EC and Knowledge Management is conducted 2.1 Publicity initiatives for public awareness campaigns are conducted by December 2016 to December 2018 2.2 Knowledge Management by January 2017 to December 2018 3. Capacity Building and Enhancement is improved 3.1 PMO and LGU trainings are completed by December 2016 to March 2019 3.2NSWMC, DENR-EMB regional and national, and Ecological Centers regional and national training and capacity building are competed by December 2016 to March 2019 4. Project Implementation and Management Supports are provided 4.1 PMO technical and management support is completed by March 2011 4.2 Non-Pilot Project design, bidding, awarding, construction and commissioning by March 2011 4.3 Gender Action Plan activities are implemented by March 2011 4.4 Implementation of income generating and livelihood projects for AP’s are provided by March 2011 4.5 PMO manage project Implementation and monitoring by Marc 2011 4.6 Annual/Mid-Term review missions form December 2016 to March 2011

5

Problem Tree Analysis APPENDIX 2

Appendix 2

Problem Tree Analysis

Deteriorating urban Poor public health Low urban EFFECTS environment and quality of life competitiveness

CORE

PROBLEM POOR SOLID WASTE MANAGEMENT

Inadequate Lack of Suitable Ineffective SW Low Compliance Institutional CAUSES Land for SWM Collection of RA 9003 capacity of NG Facilities and LGUs

Weak Limited Weak enforcement / resources enforcement at regulatory (funds, NIMBY NG and LGU capacities of equipment, levels LGUs and expertise) NGAs

Limited Weak Ineffective/lack Expensive knowledge of enforcement of of Institutional land/Lack of good practice in NG and LGU structure at LGU capital funding SWM and level level governance

Lack of cost Insufficient Changes in recovery Low priority of coordination leadership at strategies and LGUs and knowledge LGUs private sector dissemination participation

Appendix 3

External Assistance and Development Coordination APPENDIX 3

1

Appendix 3

EXTERNAL ASSISTANCE AND DEVELOPMENT COORDINATION Asian Development Bank Assistance from July 1993–June 20081 Date Title Amount (U$ m) Approved A. Loans Municipal Water Supply 25 Nov 1993 72.00 Small Towns Water Supply Sector Project 30 Sep1996 83.00 Regional Municipal Development Project 30 Aug 1995 198.20 Subic Bay Area Municipal Development Project 08 Dec 1997 37.00 Clark Area Municipal Development Project 15 Dec 1998 41.80 Metro Manila Air Quality Improvement Sector Development Program 1 Mar 1998 71.00 Pasig River Environmental Management and Rehabilitation Sector Development 20 Jul 2000 75.00 Program 27 Sep 2001 22.68 Mindanao Basic Urban Services Sector 14 Oct 2003 3.26 MWSS New Water Source Development 18 Dec 2003 30.5 Development of Poor Urban Communities 29 Sep 2005 24.03 SME Development Support 22 Nov 2005 150.00 Microfinance Development Program Integrated Coastal Resource Management Project 2007-2013 51.71 Subtotal 860.18 B. Advisory Technical Assistance Grants MWSS Operational Strengthening 1994 0.60 MWSS Privatization Support 1995 0.58 Private Sector Participation in Urban Development 1995 0.50 National Urban Policy Framework 1999 0.15 Institutional Strengthening Housing and Urban Development Sector 2000 0.15 Capacity Building for Regulatory Office of Metropolitan Waterworks and Sewerage 2001 0.80 System 2002 1.25 Metro Manila Solid Waste Management 2002 1.50 Capacity Building for Housing Microfinance 2008 0.10 Capacity Building for Housing Microfinance (Supplementary) 2008 0.50 Capacity Building – e-Asia (Supplementary) Subtotal 6.13 C. Project Preparatory Technical Assistance Grants Manila North-East Water Supply (Supplementary) 1993 0.05 MWSS Water Supply Improvement Study 1993 0.58 Small Towns Water Supply and Sanitation Sector 1994 0.10 Infrastructure Improvement of Subic Bay Area Municipalities 1994 0.80 Pasig River Environmental Management and Rehabilitation 1996 0.80 Metro Manila Air Quality Improvement 1997 0.15 Mindanao Urban Planning and Basic Services Sector 1997 1.00 Development of Poor Urban Communities 1998 0.85 Metro Manila Urban Services for the Poor 1999 1.00 Development of Poor Urban Community (Supplementary) 2001 0.15 Metro Manila Urban Services for the Poor 2002 0.70 Metro Manila Urban Services for the Poor/Cities Alliance 2005 0.50 Philippine Basic Urban Services Sector Project 2008 0.85 Solid Waste Management Sector Project (SWMSP) – TA 8115 2012 1.00 Subtotal 8.53

D. Japan Fund for Poverty Reduction Grants On-Site Urban Upgrading for Vulnerable Slum Communities of Payatas 2000 1.00 Off-Site and Off-City Relocation of Vulnerable Slum Communities of Muntinlupa 2000 1.00 Strategic Private Sector Partnerships for Urban Poverty Reduction in Metro Manila 2002 3.60 Social Protection for Poor Women Vendors in Mindanao Cities 2002 1.00 Subtotal 6.60 Total 828.73

1 PHI SAR Urban August 2010

2

Appendix 3

MWSS = Metropolitan Waterworks and Sewerage System, SME = small- and medium enterprise. World Bank Assistance from 2007–2017 Date Title Amount (U$ m) Approved

Integrated Persistent Organic Pollutants Management Project 2010-2017 24.67 National Program Support to Environment and Natural Resources Management Project (NPS-ENRMP) 2007-2012 57.00 Laguna de Bay Institutional Strengthening and Community Participation Project (LISCOP) 2013-2014 12.45 Total

Japan Bank for International Cooperation Assistance from 1995–2015 Date Title Amount Approved

Formulation of Ecological SWM Plan for LGUs 2002- 2003 48.9 Local Government Units Support Credit Program (LGUSCP) 1995- 2005 11.71 BN Yen Support for Strategic Local Development and Investment Project (S2LDIP) 2008- 2012 24,846 M Yen Environmental Development Project 2010- 2015 Total

Other Assistance from 2002–2012 Date Title Amount Approved

Construction of Sanitary Landfill (Spanish Gov’t. via AECID) 2009- 2010 1.5 M EUR Credit Line for Solid Waste Management (KfW) 2005- 2009 16.5 M EUR Establishment of Ecological Solid Waste Management System in Three (3) Cities (JICA) 2007- 2010 366 M Yen Solid Waste Management For LGUs (SWM4LGUs) (GTZ) 2005-2012 2 M EUR Philippine Environmental Governance Project (ECOGOV) (US AID) 2001- 2012 19.00USD Public and Private Sectors Convergence for Solid Waste Co-operation Governance on Urban Poor Communities (UNDP) 2002- 2004 Community Based Ecological Solid Waste Management Project (CBESWMP) (UNDP_JICA_AUSTRALIA) 2002- 2005 0.3

Total

A. Institutional Arrangements and Processes for Development Coordination B. Summary of Urban Development Program Interventions C. — International Financing Institutions D.

World Bank Assists national and local governments to develop sustainable cities, which are ‘ livable, competitive, well governed and managed, and bankable”. Four main activities in the urban sector: (i) formulation of national urban strategies; (ii) support to city development strategies; (iii) scaling-up programs of services for the poor; and (iv) enhanced assistance for capacity-building. The aim of its urban and local government strategy is to promote sustainable cities and towns by improving the

3

Appendix 3

lives of the poor and promoting equity, while contributing to the progress of the country as a whole. Urban development programs support four major themes— access to urban services for the poor, municipal finance, municipal governance and institution building, and other urban development International Supports the expansion and attraction of private investment to infrastructure Finance through investment and advisory services for the private sector. Infrastructure Corporation eligible for financing includes airlines, airports, , logistics, ports, ports services, power, railways, shipping, toll services, water, and gas. Also helping local banks explore energy efficiency financing as part of its response to climate change. Through its SME Banking Initiative, developing strategic partnerships with local banks to allow small and medium enterprises greater access to credit. KfW German Financial cooperation focuses on social and economic infrastructure, financial Development systems and resource protection. Three priority areas have been identified: (i) Bank sustainable economic development—including development of the financial sector, the private sector and vocational training; (ii) environmental and resource protection—including forest development, sewage and waste disposal and renewable energies; and (iii) healthcare, family planning, and HIV/AIDS prevention. Australian Overall strategy is to improve prospects for economic growth, poverty reduction, Agency for and national stability. Support for infrastructure development focuses on: (i) International improving poor people's access to essential infrastructure such as water supply Development and sanitation, transportation and energy; (ii) assisting the creation of enabling environments for private and public financing and management of infrastructure; and (iii) supporting human resources development, institutional strengthening and capacity building in the infrastructure sector. Programs for infrastructure involve financing infrastructure maintenance and upgrading in poor areas; supporting communities’ effective participation and monitoring infrastructure investments; and technical and systems support for governments to plan, finance, build, and maintain infrastructure. Five main programs: (i) Economic development and governance – supports Agency for improvements in judicial efficiency and in government policy and administration, International and promotion of innovations in trade and investment. (ii) Energy and environment Development – focuses on energy sector performance, environmental governance and urban environmental management. (iii) Family health - to enhance capacity of provinces, cities, municipalities and the private sector to provide quality health services. (iv) Conflict reduction – help consolidate peace in Mindanao through: development of needed economic infrastructure, expansion of economic opportunity in conflict- affected areas, and improvement of governance and social services. (v) Education – aims at increasing the access to education and livelihood. Canadian Technical assistance to local governments to improve the delivery of services to International the poor and enhance the participation by local communities in setting Development development plans in areas such as investment, taxation, and social services. The Agency (CIDA objectives of CIDA’s strategy are to: (i) foster efficient, responsive, transparent and accountable governance at all levels; and (ii) support the development of sustainable small and medium-sized enterprises that create more, better, and decent jobs for both men and women. A major technical assistance initiative is the local government support program- local economic development component Swedish Development cooperation focused on democratic governance and greater respect International for human rights; and natural resources and the environment. Support is mainly Cooperation provided through major multilateral donors, including the World Bank and United Agency Nations bodies and to Swedish agencies and institutions in contract-financed technical cooperation. No infrastructure projects have been funded except for technical assistance and policy reforms relating to water and sanitation, and

4

Appendix 3

environmental management. European Union Development co-operation covers broad-based equitable growth, capacity and institution building, private sector development, social services, environment, good governance and human rights. No specific strategy for urban development, and development co-operation policy and international action generally supports the attainment of the Millennium Development Goals. Japan Official development assistance loans support economic growth focusing on (i) International strengthening economic structures and helping overcome the bottlenecks for Cooperation sustainable economic growth—projects include transport, such as roads and Agency bridges, railways, air transport, port, maritime and shipping; energy sectors, and development finance—strengthening of industrial structure; (ii) reducing poverty and regional disparities—assists in regional development activities, agriculture, , fishing industry, fishing ports, water supply and sewerage; (iii) environmental protection and disaster mitigation, including flood control; and (iv) human resource development—elementary and secondary education. Policy- based financing supports five thematic areas—environment, energy and natural resources, international business development, catalyzing international finance and knowledge assistance. Eligible sectors—roads and bridges, railways, port and maritime shipping, air transport, power and energy, development finance, regional/industrial special economic zones, agriculture, water and sanitation, environment, flood control, and education. Korean Export- Targets projects to reduce poverty and promote economic development— Import Bank specifically, rural development, education, infrastructure—roads, bridges, power plants, airports, and railways, health, and the environment. Government of Enhances cooperation, including the North Rail and the South Rail projects under China Philippines-China Bilateral Agreements, 1975–2007 infrastructure Asian Improving the urban environment through capacity development and financing Development focusing on water and sanitation, solid waste management, urban transport, urban Bank renewal and basic services for the poor, and multi-sector interventions

E. Summary and Recommendations

1. Resources issues: Several donors, including but not limited to CIDA, SIDA, NDF, USAID, UNDP, GTZ, and NGOs, have provided LGUs with TA programs to strengthen their capacity so far. Under the RA 9003 City/Municipality is obligated to develop SWM Plan that shall ensure the long-term management of solid waste, as well as integrate the various solid waste management plans and strategies of the barangays in its area of jurisdiction F. Referceses

ADB. TA 7062: Philippines Basic Urban Services Sector Project, 2009. 1The Municipal Development Fund Office (MDFO) of the Department of Finance (DOF) maintains a small portfolio of lending operations as well, and is channeling government subsidies to LGUs through a mix of loan-grant assistance. 1See ADB TA 3476–PHI: Institutional Strengthening of Housing and Urban Development Sector. This TA recommended the strengthening of HUDCC, and its ultimate conversion to a full-fledged Department. 1World Bank. 2005. Philippines: Meeting Infrastructure Challenges. Manila. Chapter 7 - Water Supply and Sanitation; CONCEP. 2005. Metro Iloilo— Integrated Urban and Regional Infrastructure Plan (MIG-02). Water Resources Profile for Metro Iloilo and Guimaras. AusAID, CIDA, and World Bank. Manila. December. 1Explanatory Note, Senate Bill 1688, 4th Congress of the Republic of the Philippines: An Act to Make Road Traffic Safety Rules and Signs a Separate subject and Compulsory at Grade 6 and 4th Year High School Level. 1Housing and Urban Development Coordinating Council (HUDCC). National Urban Development and Housing Framework, 2009–2016. Manila.

5

Appendix 3

1Metropolitan Cebu Water Supply Project; Municipal Water Supply Project; Manila South Water Distribution Project; Angat Water Supply Optimization Project; Subic Bay Municipal Development Project. 1ADB. 2006. Urban Sector and Strategy Operations. Special Evaluation Study. Manila (June). 1Loan 1367-PHI Philippine Regional Municipal Development Project; Loan 1599-PHI Subic Bay Area Management Project; and Loan 1658-PHI Clark Area Municipal Development Project. 1ADB’s Loan 2387-PHI: Local Government Financing and Budget Reform Program (LGFBR) focuses on fiscal aspects of local government unit (LGU) reform, targeting (i) improved shares, timeliness and transparency in the release of local government revenues and grants; (ii) deepening reforms in fiscal management, planning, and public expenditure management by enhancing efficiency and accountability; (iii) enhancing effectiveness and transparency in the delivery of critical public services at the local level through performance measurement. The LGBRF supports policy reforms which will help overcome the binding constraints in revenue mobilization, improve intergovernmental fiscal relationships and the regulatory framework for access to private sources of financing, and stimulate better own- source revenue generation. This reform agenda will provide the framework for supporting public infrastructure investments at LGU level. 1Refers to problems in right-of-ways and involuntary resettlement, prolonged process and time-consuming procedures for procurement, inexperienced executing agencies and serious lack of project preparation and implementation facilities and capacity at both national and LGU levels. 1Loan 1843-PHI: Mindanao Basic Urban Services Sector Project, for $33.4 million, approved on 27 September 2001. 1Serious conflicts arose between LBP and Department of Interior and Local Government under MBUSSP which were not conducive to project implementation. 1Loan 2063-PHI: Development of Poor Urban Communities Project, for $30.2 million, approved on 18 December 2003. 1JFPR: Strategic Private Sector Partnerships for Urban Poverty Reduction (STEP-UP) has three components: (i) strategic partnership building to promote corporate involvement and public-private sector partnerships for site- specific urban poverty reduction initiatives; (ii) funds for housing improvement, livelihood, and community infrastructure; and (iii) risk reduction and management that include physical design of houses, small infrastructure projects to protect communities from floods and , and educational activities. The Project was implemented by Philippine Business for Social Progress—an NGO representing a conglomerate of corporate social responsibility programs of 158 Filipino corporations supporting business sector involvement in social development. STEP-UP was preceded by two other JFPRs: On-Site Urban Upgrading for Vulnerable Slum Communities in Payatas (2000); and Off-Site and Off-City Relocation for Vulnerable Slum Communities of Muntinlupa City (2001). 1ADB. 2008. Urban Sector in the Philippines. Rapid Sector Assistance Program Evaluation. Manila. (March), p.9; ADB. 2008. Water Supply and Sanitation Sector in the Philippines. Rapid Sector Assistance Program Evaluation. Manila. (April). 1ADB.2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008–2020 Manila. 1In line with Strategy 2020, ADB will employ its financial and institutional resources in the five core areas: infrastructure, environment, regional cooperation and integration, finance sector development, and education. 1Economic infrastructure is broadly defined to comprise investments that are revenue-generating such as transport terminals, municipal markets and public transit systems. 1Environmental infrastructure comprises infrastructure and services that positively impact the environment and human health and welfare such as water supply and sanitation, solid waste management, flood control and drainage. 1While a single subsector focus is intended, there may be scope to design projects that include interrelated subsectors, such as water supply and sanitation or municipal markets and public transport terminals. 1This document defines ADB support for urban competitiveness to be through economic infrastructure, namely municipal markets and public transport terminals. However, ADB will also support urban competitiveness through economic infrastructure investments in roads, rapid transit systems, and energy. ADB's interventions in these subsectors are more fully described in the assessment, strategy and roadmap (ASR) for the transport and energy sectors, respectively. 1ADB's support for sustainable communities, as described in this document, concentrates on solid waste management, water supply and sanitation, flood control, primarily in secondary cities. ADB's operational strategy for large-scale water supply, sanitation, and flood control projects is described in the ASR for the water sector.

6

Appendix 4.

Philippine SWM Sector Project Profile APPENDIX 4

1

Appendix 4.

PHILIPPINE SOLID WASTE MANAGEMENT SECTOR PROJECT

PROJECT PROFILE

A. Project's Rationale, Location and Beneficiaries 1. The Philippine Solid Waste Management Sector Project (PSWMSP) will improve solid waste management (SWM) services in the Philippines by assisting local governments with investments in related infrastructure such as sanitary landfills (SLF), landfill rehabilitation, dump site closure, emission control, material recovery facilities, solid waste collection, processing equipment, and waste-to-energy (WTE) technologies. The project will also be complemented by institutional capacity development and technical assistance. 2. This project will help to improve the quality of life and urban environmental conditions to (i) achieve the environmental targets of the Philippine Development Plan (PDP) 2011-2016, (ii) support the strategic objectives of the National Development Plan 2011−2016, and (iii) help implement the recently approved National Solid Waste Management Strategy 2011−2016. The strategy complements the Ecological Solid Waste Management Act, otherwise known as the Republic Act (RA) 9003 to support economic development, competitiveness, and well-being in the Philippines though sustainable SWM. 3. The Philippines ranks as the 12th most populated country in the world with a population of almost 100 million, more than 60% of which resides in urban areas. A rapid population growth has resulted in a population increase of over 2 million every year since 2000, which requires a new 150 hectare (ha) size sanitary landfill each year just to fill the gap. Since 2000, only 55 sanitary landfills have been constructed with total landfill area of less than 300 has, and many of these have turned into open dumps. As a summary the Philippines dispose more waste than ever before to open dumpsites1, rivers and lakes. 4. SWM is a pervasive problem and a looming crisis in many urban areas in the Philippines. For decades, SWM has focused on collection and hauling, not on waste treatment and disposal, and has become very expensive. Many well-meaning projects, laws, rules and regulations have achieved little so far. Local government units (LGUs) are facing a massive challenge in managing rapid and largely unplanned urban growth. Absence of land-use plans and overall town planning have resulted in repeated solid waste problems followed by ad-hoc site designation for landfills and dump sites. 5. After 13 years of RA 9003, continuing challenges exist in solid waste collection, establishment of material recovery facilities (MRF), and promotion of 3R practices, the lack of enforcement of the basic requirements of RA 9003, open dumpsites and poor solid waste diversion. 6. Urban development is a continuing process of economic, social, technological and financial interventions to stimulate efficient growth and ultimately, a better living environment. Over the past decades, the Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), and other agencies including international donors have challenged LGUs to improve their SWM infrastructure and management, providing a great variety of financing modalities. While funding support to the

1 NSWMC: 946 open or controlled dumpsites 2

Appendix 4. sector in recent years has progressively increased, many projects and loans have been cancelled. Despite high expectations in the beginning about project and program outcomes, too little has been achieved. To this end, the proposed project supporting the Government’s strategic objectives for the waste management sector was developed using lessons from previous ADB interventions2 and recent DENR3 experience in LGU loan projects. 7. The proposed implementation arrangements are built on innovative institutional and financial arrangements to encourage LGUs to improve their SWM systems and achieve significant improvement and sustainability in the coming years. 8. Through the national government, ADB’s financial assistance to the sector provides about a dozen LGUs with US$72 million for project implementation, which is approximately 1- 2% of the total sector demand. The sector project includes a pilot project with a WTE component which will play a catalytic role over the next six years to (i) minimize waste disposal to SLF, (ii) extend existing SLF life span from 7 to 20 years, (iii) widen the private sector role in municipal SWM, and (iv) global emission reduction4 contributing to climate change with 726 kg CO2 eq per ton of waste. 9. The project is in line with ADB’s Philippines Country Partnership Strategy 5 and the strategic thrust of ADB's urban operations in the Philippines. The operational strategy supports sustainable urban economic growth and development. ADB will align its future operations with three of the five elements of the strategy—urban competitiveness, sustainable communities, and performance-oriented governance—which call for economically 6 viable, environmentally sustainable, and socially acceptable solutions for SWM. 10. Location. The PSWMS Project comprises the entire the islands of the Philippines with 1,635 urban and rural communities. Four pilot LGUs have been selected for the Project Preparatory Technical Assistance (PPTA) which covers the preparation of 10-year solid waste management plans and subproject feasibility studies for (i) clustered LGUs with a host municipality such as Janiuay in Iloilo province on the island of Panay; ii) tourist destinations in Del Carmen, Siargao Island in Surigao Del Norte and Boracay island in the municipality of Malay, Aklan Province; and iii) a stand-alone project in La Trinidad, Benguet Province from January to December 2013. The selection of pilot areas was conducted in cooperation with DENR Foreign Assisted and Special Projects Office and the Environmental Mamagement Bureau. 11. In general, this project benefits the health and living conditions of citizens of the recipient municipalities as well as the global human population through GHG emission reductions. The

2 According to ADB, almost all ADB-funded urban projects have had loan cancellations due to slow disbursement process or projects have not been completed in time. 3 Monitoring and Evaluation Report of WB Laguna De Bay Institutional Strengthening and Community Participation Project (LISCOP) dated on 22 March 2013; (i) Poor perforce in SWM components; (i) All in all, 11 Local Government Units (LGUs) out of 21 LGUs around Laguna Lake will be participated in LISCOP by the end of the remaining one- year implementation period; (iii) Delay in disbursement of around two months; (iv) less than half will be used from US $10Million loan. Sub-project types include also material recovery facilities, sanitary landfill, flood control, wastewater treatment facility, reforestation and eco-tourism enhancement. According to the Report after one-year operation already 75% of MRFs are non operational due to the lack of technical capability, and poor quality of equipment, or/and MRF sites are bailing up waste and recyclables turning sites to open dumps. Similarly, only one SLF located in Bayawan Municipality is operational from KfW long-term support to the Philippines SWM. 4 PPTA 8115 PHI 5 The ADB Country Partnership Strategy 2011–2016 extends assistance to the key sectors that are expected to receive high priority under the Philippine Development Plan 2011−2016. 6 ADB Strategy 2020 defines that economic infrastructure covers with investments that are revenue-generating such as transit system or municipal market. WTE will play a same role in the future municipal infrastructure development. Furthermore, it will divert positive economic impact on the environment and human health and welfare improvement. 3

Appendix 4. project will also pave the way for WTE in all major urban cities. The investment program will enable an environment for enhanced economic activities and job opportunities, specifically for the poor and the socially excluded such as waste pickers. The SWM sector can become an additional catalyst for growth and broad-based development while addressing poverty reduction and producing high economic returns through resource and energy recovery infrastructure. B. Impact and Outcome 12. The expected impact of the Project will be improved public health and well-being of citizens of the recipient municipalities through reduction of environmental pollution, while the outcome will be improved efficiency and reliable delivery of SWM services for residents in the recipient LGUs, including the poor women and men, and moreover, local and global impact of CO2 emission reductions of MSW thermal treatment, waste segregation and through landfill management. 13. The project’s institutional development component will focus on capacity building, training, public awareness, and community development to improve SWM practices. The project will further enhance capacities of the urban areas to attract more investments in WTE, increase productivity, and create an enabling environment for higher economic growth and global GHG reduction. The design and monitoring framework (DMF) is in Appendix 1. C. Outputs Output 1: Priority Infrastructure Investments in SWM 14. The project will follow the priorities identified during the study period from January to November 2013 for investments in SWM sector infrastructure improvement at the pilot LGUs. The project outputs will include the following: Sub-project of Del Carmen Sub-Component 1: Acquisition of two waste collection vehicles. Two dump trucks, each with a capacity at least 10 m3 will be acquired. These additional vehicles will facilitate expansion of the coverage into the rural barangays and increase the number of collection trips in the entire Siargao Island. Sub-Component 2: Acquisition of HPDE 250 waste bins. 250 units with 1.1m3 capacity HDPE bins will be acquired. This will facilitate temporary storage of segregated waste prior to collection. Currently, waste has been collected in sacks by the roads. Sub-Component 3: Acquisition of SLF and MRF Equipment. The equipment will include a bulldozer of blade capacity at least 1.6 m3and a weighbridge of capacity at least 20 t for the SLF and a wheel loader of capacity at least 1.3 m3 for the MRF. Sub-Component 4: Construction of a Category 2 SLF and a Central MRF. A 2 ha SLF will be located in a 4 ha site in Sitio Boyhogon, Barangay Cancoho. It will be progressively developed into two cells and containment area with an effective capacity of about 120,000 m3 net of the space to be occupied by the soil cover. The Central MRF will be housed in a 360 m2 building complete with hopper, conveyor and trommel set for sorting capacity of about 2 t/hr. Sub-Component 5: Closure of Existing Dumpsite. The existing dumpsite covers an area of about 5,000 m2. Dumping has not been done systematically, waste is gathered on the vast area consisting mainly of mixed wastes. There is no leachate formation. Closure will include systematic clean up of other area and removal of remaining waste from dump site to SLF.

4

Appendix 4.

Sub-project of Janiuay Sub-Component 1: Acquisition of two waste collection vehicles. Two dump trucks, each with a capacity of 10m3-13 m3, will be acquired. These additional vehicles will facilitate expansion of the coverage to the rural barangays and increase the number of collection trips.

Sub-Component 2: Acquisition of 270 waste bins. The HDPE bins will have 240- liter capacity. These will facilitate temporary storage of segregated waste prior to collection and complement the currently available, 100-liter plastic bins being used by the LGU.

Sub-Component 3: Acquisition of SLF Equipment. The equipment will include a bulldozer and a weigh bridge.

Sub-Component 4: Construction of MRF with power substation. The MRF will occupy 900 m2 section of the 6.2 hectare lot allotted for the SLF in Barangay Caraudan. It will be designed to process 15 to 30 tons of waste per day in an 8-hour shift using a combination of mechanical and manual processing. The MRF will be used to recover the recyclables from the collected waste. The substation will be used to connect the MRF and the SLF to the grid.

Sub-Component 5: Construction of a Category 2 Sanitary Landfill. The SLF will be located in a 6.2 hectare lot in Barangay Caraudan. It will be progressively developed into two cells with an effective capacity of 346,000 m3 net of the space to be occupied by the soil cover.

Sub-Component 6: Closure of Gibolo dumpsite. The Gibolo dumpsite covers an area of about 4,500 m2 and is expected to have an accumulated waste of about 7,500 tons. Closure will include: removal of waste from barangay road, grading and compaction, slope modification, application of soil cover, drainage control and leachate collection

Sub-project of Malay/Boracay Sub-Component 1: Landfill Mining at Balabag, Manoc-Manoc and Yapak. This will consist of:(i) mobilization and site preparation; (ii) excavation and recovery of recyclables and high energy value materials; (iii) cleaning of Balabag, Manoc-Manoc and Yapac; (iv) preparation of transportable bales (1.2 m x 0.85 m x1.1 m) of 47,100m3; (v) storing 20,000 bales and transporting and storing 9,000 bales to Manoc-Manoc; (vi) managing incoming waste over a period of six (6) months to Manoc-Manoc (10,550 m3) and to Balabag (20,000 m3); (vii) preparation of transportable bales 9,200 m3; (viii) storing 3,600 bales and transporting and storing 5,600 bales to Manoc-Manoc; (ix) transporting fines and residues of 14,950 m3 to Kabulihan SLF; and (x) remediation of Yapac MRF site, application of soil cover of 400 m3 and greening an area of 1,400 m2.Annex 3, Cost of Landfill Mining. Sub-Component 2: Construction of a WTE at Manoc-Manoc and MRF at Balabag. This output will include:(i) the procurement and installation of mechanical/manual processing facility (MRF) with the design capacity of 50 tpd; (ii) procurement and installation of a waste-to-energy (WTE) plant with an estimated 1 MW electricity output, consisting of a thermal waste treatment unit and heat/energy conversion unit; and (iii) procurement and installation of a sub-station to connect the WTE plant to the power network. Annex 4 Power Purchase Agreement, Annex 5 Balabag MRF.

5

Appendix 4.

Sub-Component 3: Construction of a New Cell to Kabulihan SLF. This will consist of: (i) the installation of a gate, fencing and lighting of the area, surface water drainage system and internal road; (ii) cell with HDPE lining and leachate collection system; (iii) procurement of landfill equipment; and (iv) construction of a leachate circulation system. Sub-Component 4: Waste Collection and Hauling Logistics. This will consist of: (i) the purchase of barge for hauling of waste and recyclables from Boracay to Caticlan; (ii) purchase of four (4) brand new compaction trucks of 5 m3 capacity; (iii) two (2) brand- new open trucks with a capacity of 8-10 m3; and (iv) purchase of 450 pieces of 240-liter capacity HDPE waste bins. Sub-Component 5: Acquisition of SWM equipment. This will consist of: (i) the purchase of bulldozer for SLF operation in Kabulihan; (ii) a weigh bridge for the mechanized MRF in Manoc-Manoc; and (iii) four (4) payloaders, three (3) forklift, four (4) weighing scales and two (2) standard tool sets for MRF operations in Balabag and Manoc-Manoc. Sub-Component 6: The MRF will occupy about 900 m2 area in Katiclan. It will be designed to process 10 tons of waste per day in an 8-hour shift using a combination of mechanical and manual processing. The MRF will be used to recover the recyclables from the collected waste. It will mainly support increasing waste generation at the entry point of Boracay

Sub-project of La Trinidad Municipality Sub-Comp 1: Acquisition of waste collection vehicles. Eight (8) compaction trucks (each with 5m3 capacity) and two (2) skip trucks will be acquired. These additional vehicles will facilitate replacement of the aging fleet of dump and compaction trucks. Sub-Comp 2: Acquisition waste bins. 620 waste bins and 6 skip bins will be acquired. HDPE bins with 1.1m3 capacity and steel skip bins with 8m3 capacity will be acquired. These bins will facilitate temporary storage of segregated waste prior to collection and complement the currently available, 100-liter plastic bins being used by the LGU. Sub-Comp 3: Acquisition of SLF equipment. The equipment will include a bulldozer and leachate pumps Sub-Comp 4: Modernization and upgrading of the compost plant. This includes the installation of a new piping system to increase air supply and improve conveyance of leachate from composting boxes through the addition of six (6) aerated composting boxes to existing compost plant, increasing the amount of blowers and application of a more appropriate blowing/suction concept. Sub-Comp 5: Acquisition of compost equipment. The equipment to be acquired include a trailer, tools, sieve drum, wheel loader, shredder, and watering pump. Sub-Comp 6: Acquisition of Barangay MRFs. Establishment of 5 Clustered Barangay level MRFs consisting of a semi-automated MRF equipped with two Eco Compost Receptacle systems. One centralized MRF unit shall process MSW from the five most urbanized barangays directed to the Alno SLF. Sub-Comp 7: Construction of a category 2 Cell III. The Cell is located in a 9.6 hectare (ha) lot in Barangay Alno. SLF size is 2.7 ha. It will be progressively developed into four cells with an effective capacity of 350,000 m3 net of the space to be occupied by the soil cover. Cell III construction alos consists of an installation of weighing bridge.

6

Appendix 4.

Sub-Comp 8: Landfill mining. Landfill mining shall be one of the first measures to be implemented before the rehabilitation of Cell I. Through the process, recyclables, combustible fractions and soil shall be recovered and sufficient space shall be freed up, consequently extending the life span of the cell from 7 to 12 years. This includes excavation and processing of 21,140 tons of waste, backfilling of 11,800 m³, and preparing 28,990 bales (650kg/pc) for intermediate storage or transportation to a thermo/energy recovery facility. Sub-Comp 9: Rehabilitation of access road to Alno SLF. This includes the rehabilitation of the access road to the Alno SLF spanning 750m. The road was established within the compound of the Alno Sanitary Landfill which is owned by the municipal government. The access road shall be rehabilitated to qualify as an 'all weather' road, with width of at least 4 m, and is well passable even during the rainy season.

Sub-Comp 10: Rehabilitation of Cell I. To operationalize Cell I after landfill mining the following measures have to be taken; (i) proper site investigation to confirm activities to be carried out; (ii) rehabilitation of the existing un-reinforced retention wall; (iii) rehabilitation of leachate dewatering ditch; (iv) rehabilitation of leachate treatment facility; and (v) construction of leachate circulation or/and treatment system. Output 2: Information, Education, and Communication (IEC) and Knowledge Management 15. The minimum target of the IEC plan for the PSWMSP is to make the participating pilot municipalities fully comply with RA 9003. The situation in most of the pilot areas reflects nationwide findings of the NSWMC of low public awareness and poor motivation to practice waste avoidance and 3Rs. 16. Additionally, IEC tools will help persuade the participating LGUs to invest in a long-term SWM solution that is environment-friendly, efficiently managed, technology-driven, and socially acceptable to the affected communities. 17. Another target of IEC is to explain why some pilot areas must implement SWM across a “cluster” of adjacent municipalities to achieve economies of scale. 18. The IEC strategies that the project will adopt optimize print media, electronic media, and face-to-face events, while the IEC capabilities of those who will carry out and sustain the communication strategy at the municipal, LGU cluster, and provincial levels will also be enhanced. 19. Knowledge management will involve organizing symposia, case studies, and online discussion groups to promote a formal community of practice that will monitor and report the LGUs’ progress in: compliance, enforcement, and recognition; sustainable SWM financing; SWM technology, innovation, and research; related economic opportunities; organizational development and enhanced inter-agency collaboration; and cross-cutting issues that include good governance, caring for vulnerable groups, and reducing disaster and climate change risks. 20. A communication work plan covering 24 months from January 2014 to Dec 2015 will chart specific IEC tools and activities, their target audiences, budgets and indicators of successful implementation. Output 3: Capacity Building and Enhancement 21. While most of the key enabling policies and management plans are already in place at both national and local levels, failures in the effectiveness of the delivery of SWM services could be attributed to poor access to updated and accurate SWM information and knowledge sources; 7

Appendix 4. weak technical knowledge, information and capacity and access to ‘new’ and ‘emerging’ SWM technologies and a SWM database of information and knowledge systems; and lack of training modules/programmes on SWM technical approaches, systems and processes. 22. Based on these core areas for improving technical and operation capacities of local and national implementing agencies, the recommended areas for strengthening and improvement in both technical and operational capacities of the key national and local implementing agencies are outlined below. 23. The proposed training and capacity building for SWM national implementing agencies/bodies are as follows: a. NSWMC Secretariat: i. Strengthen the establishment of an integrated and national and regional SWM database and information and knowledge management system. ii. Strengthen strategic policy research and analysis of SWM issues and challenges, including conduct of primary surveys/research and projections/scenario building or modeling exercises. iii. Strengthen strategic planning and management. b. DENR-EMB/Regional offices: i. Revision and evaluation of the conduct and analysis of WACS module for LGUs to include ‘calorific value’ content analysis. ii. Strengthening and establishment of an open, publicly accessible integrated national/regional SWM database and knowledge management information system. iii. Revision and upgrading of air quality and water quality monitoring standards for SWM and WTEs. iv. Strengthening and improvement of local field staff capacity for technical and standards monitoring and enforcement. c. NECs/RECs: i. Updating and revision of trainer’s training module/assistance to LGUs for WACS in cooperation with DENR/EMB units. ii. Updating and revision of trainer’s training module for SWM plan preparation and formulation in cooperation with DENR/EMB units. 24. The proposed training and capacity building for SWM local implementing agencies/bodies are as follows: i. Enhanced conduct and analysis of WACS. ii. Enhanced preparation and formulation of SWM plans. iii. Technical analysis and evaluation of appropriate and alternative SWM facility options, detailed SWM systems and facility design and engineering, operations and management, among others. iv. Technical review, preparation and conduct of contract negotiations for SWM joint venture, service contract/procurement, and PPP options. v. Technical support in the establishment and operations of an LGU SWM corporate entity or body. vi. Improvement in the technical monitoring and evaluation capacity of local LGU staff (i.e., MENRO, Engineering/General Services Offices) of environmental, physical, engineering and technical standards and criteria.

8

Appendix 4.

vii. SWM site visits and technology familiarization seminars/workshops/fairs (local and regional.) Output 4: Project Implementation and Management Support 25. Project Implementation and Management Support Consultant (PIMSC). Project implementation assistance and management Support consists of consulting services for project management including design, construction supervision, assistance on procurement and disbursement, benefit monitoring and evaluation systems, and other necessary technical, economic, financial, legal, and management advice. 26. The scope of work of the SWM PIMSC Team shall cover the provision of expert technical adviser and support to the PMO in the review and evaluation of submitted LGU SWM project proposals under the SWMSP grant/loan facility. 27. The SWM PIMSC team shall provide expert inputs and specialist information to the PMO and appropriate agencies on the different aspects of a economically viable and sustainable solid waste management programe from the technical and data analysis, identification and preparation of project proposals or feasibility studies for a SWM project, including WTE options, detailed engineering design and standards, financing schemes and business plans, contracting and procurement of services, legal/institutional and administrative structures and arrangements from the proposed LGU SWM projects. 28. The team shall also be expected to provide over-all project management support to the PMO including formulation and development of project management plan, monitoring and evaluation, IEC and communication/marketing, financial management and grant facility administration. D. Income and Livelihood Restoration/Involuntary Resettlement 29. Land Acquisition and Involuntary Resettlement. The four pilot subprojects do not involve any land acquisition as identified infrastructure investments (construction and/or rehabilitation of SLF, MRF and WTE facility) will be carried out entirely on government-owned or government-leased property. There are also no affected households in the Del Carmen and Malay/Aklan subprojects as no non-land assets or existing livelihood and income-generating activities will be temporarily or permanently affected by subproject investments. 30. However, project activities in the two remaining subprojects (i.e. for the Janiuay subproject, closure of the existing dumpsite in the municipality and strict implementation of no mixed-waste dumping in the La Trinidad subproject) will have both direct and indirect adverse impacts on the livelihoods of active waste pickers who will no longer be able to continue waste picking activities in the existing dumpsites 31. Indigenous Peoples (IP). There are no IP in Siargao Island (where the Del Carmen subproject is located) and thus no subproject impacts on IP. Although there are IP (Bukidnon Tribe and Aetas) residing in the municipality of the Janiuay subproject, they are in the more mountainous areas and not where the project civil works will be carried out. There are no affected IP households in the Janiuay subproject. Boracay Island (Malay/Boracay subproject) is home to the Ati (also referred to as Aetas) indigenous group, and they have a Certificate of Ancestral Domain Title (CADT) over a 2.1-hectare area in Barangay Manoc-Manoc. However, subproject civil works will not overlap with their ancestral domain and there are no affected IP households for the subproject. The livelihoods of 25 IP households (21 Ibaloi, 2 Ifugao, and 1 Kalanguya) who engage in waste picking will be affected due to project activities in the La Trinidad subproject; however, waste picking is not a traditional livelihood source of the IP and

9

Appendix 4. the impacts will be addressed as part of income restoration measures described in the subproject resettlement plan. 40. RP Implementation Arrangements. The owner of the project is DENR, the Executing Agency; therefore, it has over-all responsibility for the successful implementation of resettlement. An Inter-Agency Project Steering Committee (IPSC)7, to be chaired by the DENR Secretary or designated Supervising Undersecretary, will be established to provide policy guidance, accomplish reform measures, oversee project implementation and ensure cooperation of all agencies involved in the Project. 41. DENR will be assisted by a number of offices; namely, the Project Management Office (PMO) that is tasked with undertaking the Project. The PMO will work closely with the LGUs, as the latter will take primary responsibility for implementation of any required Resettlement Plans (for subprojects with land acquisition and resettlement impacts) and corrective action plans, as needed. 42. Resettlement-related tasks of DENR include: (i) Monitor and evaluate the progress of activities under the RP by way of coordination with the LGU; and, (ii) Report to ADB progress of activities, and feedback to LGU comments and suggestions from ADB. 43. Project Management Office. The PMO will be responsible for (i) overall project planning, day-to-day implementation, management, monitoring and supervision; (ii) reporting to the IPSC, DENR and ADB, (iii) conduct of liaison works with all stakeholders; and, (iv) coordination of all activities in the Project. The PMO shall be composed of a sufficient number of experienced professionals including an Assistant Secretary-level Project Director. It shall have an independent office headquartered in DENR. 44. A Social Safeguards Focal/Officer will be assigned to the PMO. The PMO’s resettlement-related tasks will include the following: (i) Carry out internal monitoring and evaluation of resettlement activities including income and livelihood restoration for the APs; (ii) Assist DENR in reporting to ADB, and in obtaining comments and suggestions for LGU implementation of resettlement activities; (iii) Support the LGU in preparing the RPs as per the process and policies described in this RF; and, (iv) Ensure the timely delivery of budget for the implementation of resettlement activities by the LGU. 45. EMB Regional Offices/Regional Ecology Centers. These will: (i) act as the conduit of support from the PMO to the participating LGUs in the respective region in coordination and partnership with the provincial government Provincial Environment and Natural Resources Office (PENRO), Department of Interior and Local Government (DILG) Regional and Provincial offices and other relevant partners; (ii) assist the Project in the implementation, coordination and monitoring of sub-project activities with partner LGUs and agencies; and, (iii) serve as the conduit of feed-back to the national level for monitoring and evaluation of the Project and providing guidance in the development and refinement of SWM strategies. 46. EMB Regional Offices will work together with the sub-project LGUs in conducting the DMS, with support from PMISC.

7 Indicative members of the IPSC are: Secretary, DENR (chair); Department of Finance (Vice Chair); Members: Environmental Management Bureau Director, Foreign Assisted and Special Projects Office Director, National Solid Waste Management Commission Executive Director, National Government Agency (NGA) Representatives – Department of the Interior and Local Government (DILG), Department of Public Works and Highways (DPWH), Department of Energy (DOE), National Economic Development Authority (NEDA), Department of Budget and Management (DBM); One (1) Representative each from the League of Provinces, Cities and Municipalities and Liga ng mga Barangay (LnB), Asian Development Bank (ADB). 10

Appendix 4.

47. Local Government Units. Participating LGUs shall serve as the main local implementing agencies responsible for the management of respective Sub-Projects from development, through implementation and subsequent operations and maintenance. Specific to LAR, it will carry out the following tasks: - Participate in all activities involved in resettlement planning and implementation for the sub-project including (i) taking part in public consultations and meetings; (ii) conducting the DMS; (iii) preparation of the RP and the PIB, and submitting the RP to DENR (for endorsement) and ADB (for approval); and, (iv) disclosing the approved RP to AHs, including through the distribution of PIB; - Secure legal instruments (e.g., Executive Orders, Municipal/City Resolutions, Memorandum Orders, Deeds of Donation etc.) that are necessary for timely implementation of all measures described in the RP; - Mobilize concerned units such as Barangay officials, the Municipal Social Welfare and Development Office, Municipal Agriculture Office, Department of Labor and Employment – Public Employment Service Office (DOLE-PESO), and Solid Waste Management Office, as necessary, to assist in implementing the Plan; - Identify and mobilize possible program partners such as but not limited to the Technical Education and Skills Development Authority (TESDA), Department of Trade and Industry (DTI), NGO’s, and business sector to assist in activities that are within the organizations’ mandate and expertise; and, - Secure from the city/municipal treasury the budget for developing and implementing the RP, ensuring that funds and human resources are available in a timely manner and in sufficient amounts. Procedures for funds disbursement to APs will follow the accounting rules and regulations of the Philippine Government. 48. The Project Management and Implementation Support Consultants (PMISC) will be recruited by the DENR based on full technical proposals. The successful bidder will assist GOP in implementation of the Project and will include one national social safeguards specialist (30 person-months, intermittent). The specialist will assist in Resettlement Planning and Implementation for the entire Project 49. The PMISC will work closely with the LGU in developing RPs through the conduct of the DMS in a participatory and transparent way and consistent with the Project resettlement policy. Once approved by the Municipal/City Council, endorsed by DENR, and concurred by ADB, the PMISC will provide technical support in the implementation of the agreed RP. The PMISC will likewise provide capacity-building orientation and skills training, as needed, to concerned personnel of the PMO, EMB Regional Offices/Regional Ecology Centers and the LGU. 50. The PMISC will support the PMO and LGU in supervising civil works activities to ensure that (i) contractors adhere with the terms of their contract relative to avoiding and/or minimizing land acquisition and resettlement impacts; and, (ii) contractors provide the necessary compensation and/or assistance for any temporary impacts for land and non-land assets during construction to the AHs as described in the entitlement matrix. 51. All costs for resettlement, including compensation for affected assets, allowances, and livelihood and income restoration activities; operation and administration costs; surveys; monitoring; and reporting, will be included in the overall cost estimates for each subproject and will be financed by the LGUs as counterpart fund. Procedures for funds disbursement to APs will follow the accounting rules and regulations of the Philippine Government, as described in the main sub-project technical proposal. Payment of compensation and other entitlements,

11

Appendix 4. except for land-for-land arrangements, will be in cash and will be given in barangay halls to AHs. The AHs will be notified through the barangay officials of the schedule of payment of compensation and other entitlements.

E. Costs and Financing The total cost of the Project is estimated at $93.15 million equivalent, including taxes, duties, and physical and price contingencies (Table 1). Table 1: Cost Estimates by Outputs ($ million) Item Description Amounts a A. Base Cost b 1. ISWM Investment 65.01 2. IEC and Knowledge Management 2.24 3. Capacity Building and Enhancement 1.98 4. Project Implementation and Management Support 4.86 Subtotal (A) 74.09 B. Contingencies c 1. Physical contingencies 7.40 2. Price contingencies 6.90 Subtotal (B) 14.30 C. Financing Charges during Implementation d 4.76 Total (A+B+C) 93.15 a Includes taxes and duties of $9.46 million equivalent, involuntary resettlement of $0.10 million equivalent and land acquisition cost of $0.05 million equivalent, all to be financed from Government sources. Additional Government support is provided for administration and operational support during project implementation estimated at $1.21 million equivalent from DENR and $0.36 million equivalent from the LGUs. b In October 2013 prices. c Physical contingency was computed at 10% for civil works, equipment, goods, training, and consultancy. Price contingencies computed on the basis of domestic and international price escalation factors, which include a provision for potential exchange rate fluctuation assuming purchasing power parity exchange rates. Annual rates are as follows: foreign currency at 1.4% and local currency at 4.0% for the period 2015 to 2020. d Includes interest charges during implementation for ADB loan computed at 5-year LIBOR rate plus spread of 0.6% and commitment fee of 0.15%. Source: Asian Development Bank

16. ADB Financing. The Government has requested a $72.0 million equivalent ADB loan and grant to finance the Project. This amount will be sourced from an ADB grant (to be determined) for $2.0 million equivalent and $70.0 million equivalent from Ordinary Capital Resources (OCR) with 25-year term including 6-year grace period, 0.15% commitment charge, and interest rates determined in accordance with ADB’s London interbank offered rate (LIBOR)- based lending facility plus 0.6 spread. The loan will finance civil works, equipment, capital goods, consulting services, and contingencies.

12

Appendix 4.

17. Grant Financing. The UEIF of the UFPF will provide the US dollar denominated co- financing of $2.0 million on a grant basis to be administered by ADB. The UEIF grant will finance one Sub-Project involving waste-to-energy facility.

18. Government Contribution. The Government of the Philippines, through the DENR, will provide $9.46 million equivalent to cover taxes and duties. Additional Government support will be provided for Project administration and operations during the six-year implementation estimated at $1.21 million equivalent from DENR and $0.36 million equivalent from the LGUs. The host LGU will cover land acquisition, involuntary resettlement and equity for the waste-to- energy facility. Financing plan is shown in the following table.

Table 2: Financing Plan ($ million) Total Percent

ADB - OCR Loan 70.00 75.1 ADB Grant 2.00 2.1 Urban Financing Partnership Facility 2.00 2.1 National Government 16.48 17.8 Local Governments 2.67 2.9 93.15 100.0 Source: Asian Development Bank %% Total (Php Million) (US$ Million) Foreign Base Local Foreign Total Local Foreign Total Exchange Costs I. Investment Costs A. Recurrent Costs 60 - 60 1.37 - 1.37 - 2 B. Involuntary Resettlement 4 - 4 0.09 - 0.09 - - C. Civil Works 1,609 745 2,353 36.98 17.12 54.10 32 73 D. Equipment 91 286 376 2.09 6.57 8.65 76 12 E. Consulting Services 258 135 393 5.93 3.09 9.02 34 12 F. Project Management Operation 17 2 18 0.39 0.04 0.42 9 1 G. Capital Goods 4 13 17 0.09 0.29 0.38 76 1 H. Land Acquisition 2 - 2 0.05 - 0.05 - - Total BASELINE COSTS 2,044 1,179 3,223 46.99 27.11 74.09 37 100 Physical Contingencies 204 118 322 4.69 2.71 7.40 37 10 Price Contingencies 258 42 300 5.94 0.96 6.90 14 9 Total PROJECT COSTS 2,506 1,339 3,845 57.62 30.78 88.40 35 119 Interest During Implementation 204 - 204 4.70 - 4.70 - 6 Commitment Charges 3 - 3 0.06 - 0.06 - - Total Costs to be Financed 2,713 1,339 4,052 62.37 30.78 93.15 33 126

13

Appendix 4.

F. Implementation plans Project Readiness Activities

ADB= Asian Development Bank, LGU = Local Government Unit, PMO = Project Management Office, REC = Regional Ecological Center.

14

Appendix 4.

Overall Project Implementation Plan

15

Project Implementation Arrangements

Source: PPTA Consultant

ADB = Asian Development Bank, CBE = Capacity Building and Enhancement, DENR = Department of Environment and Natural Resources, DILG = Department of Interior and Local Government, DSC = Design, supervision and management consultant, EMB = Environment Management Bureau, IECKM = Information, Educattion, Communication and Knowledge Management, LGU = Local Government Unit, NEC = National Ecological Center, NSCMCS = National Solid Waste Management Commission Secretariat, PMIS = Project Management and Implementation Support, PMO = Project Management Office, PENRO = Provincial Environment and Natural Resources Office, PSC = Project Steering Committee, REC = Regional Ecological Center

Organizational Structure of PMO

Project Director 1 Ass’t Sec level Appointee

Secretariat: 1. Senior Assistant/PA 1 2. Office Assistant/Messenger 1 3. Driver/Messenger 1

Deputy Project Director 1 Deputy Project Director 1 Management and Coordination Technical and Sub-project Support

Engineering/ DSC Coordination: 1. Engineer 1 2. Assistant Engineer 1 Planning and M&E: Financial Admin: Communications: 1. M&E Specialist 1 1. Financial Manager 1 1. Coms Specialist 1 2. Sr. Accountant 1 2. KM coordinator 1 Training/ IDCC Coordination: 3. Accounts Ass’t 1 1. Engineer 1

Safeguards: General Admin: REC/LGU Coordination: 1. Safeguards Expert 1 1. Admin Manager 1 1. Engineer 1 2. Ass’t/Secretary 1 3. Ass’t/Messenger 1 4 Driver/Messenger 1

17 Appendix 4.1

Profile of Del Carmen SWM Project APPENDIX 4.1

1

Appendix 4.1

PROFILE OF DEL CARMEN SOLID WASTE MANAGEMENT PROJECT

A. PROJECT BACKGROUND 1. The municipality of Del Carmen is one of the four local government units (LGUs) included in ADB’s Project Preparatory Technical Assistance (PPTA) for the Philippines Solid Waste Management Sector Project. The PPTA covers the preparation of 10-year solid waste management plans and feasibility studies of selected subprojects for Janiuay in Iloilo Province Island of Panay, Malay in Aklan Province, La Trinidad in Benguet Province, and Del Carmen in Siargao Island in Surigao del Norte from January to December 2013. 2. The Municipality of Del Carmen, a 5th class municipality, is one of the municipalities in Siargao Island which is part of the 1st district of Surigao del Norte. It has 20 barangays with a population of about 20,000, which is expected to reach 31,000 by 2023. 3. The Island of Siargao has a population of 95,000 as of 2013. This is projected to grow to 140,000 by 2023. B. PROJECT RATIONALE 4. Del Carmen currently generates about 5.7 tons per day (tpd) of solid waste. The entire Siargao Island collectively generates 21 tpd. Waste collection within Del Carmen and the Island of Siargao amounts to 0.54 tpd and 2 tpd, respectively, accounting for about 10% of the total waste generation. 5. The projected growth of Del Carmen, its plan to attain cityhood by 2017, and its commitment to host the disposal facility for the entire Island of Siargao will increase its solid waste generation and inputs from adjacent areas and affect the prevailing collect and dump system being employed by the provincial government and the LGU, respectively. However, Del Carmen SWM sub-project will be developed in the fires phase as a standalone project. 6. Key gaps in the current solid waste management (SWM) system of Del Carmen and other municipalities in Siargao Island include the following: (i) inadequate and inefficient collection, (ii) mixed waste collection, (iii) absence of or limited implementation of ordinances requiring segregation at source and segregated waste collection and prohibiting littering, (iv) limited information campaign on proper SWM, (v) unsanitary practice of recovering recyclables through waste picking, (vi) disposal of mixed waste into open dumps, (vii) limited technical knowhow to implement sustainable SWM system, and (viii) non-collection of garbage fees from households in the municipality. 7. The proposed SWM subproject which includes the expansion of waste collection system, establishment and operation of a sanitary landfill (SLF), and closure of the existing dumpsite will contribute to the improvement of SWM system and reduce the health risks and safety issues associated with uncollected waste, waste picking, and open dumping. C. THE SUBPROJECT 8. The Del Carmen SWM subproject shall have the following sub-components: Sub-Component 1: Acquisition of two waste collection vehicles. Two dump trucks, each with a capacity at least 10 m3 will be acquired. These additional vehicles will facilitate expansion of the coverage into the rural barangays and increase the number of collection trips in the entire Siargao Island. Sub-Component 2: Acquisition of HPDE 250 waste bins. 250 units with 1.1m3 capacity HDPE bins will be acquired. This will facilitate temporary storage of segregated waste prior to collection. Currently, waste has been collected in sacks by the roads.

2

Appendix 4.1

Sub-Component 3: Acquisition of SLF and MRF Equipment. The equipment will include a bulldozer of blade capacity at least 1.6 m3and a weighbridge of capacity at least 20 t for the SLF and a wheel loader of capacity at least 1.3 m3 for the MRF. Sub-Component 4: Construction of a Category 2 SLF and a Central MRF. A 2 ha SLF will be located in a 4 ha site in Sitio Boyhogon, Barangay Cancoho. It will be progressively developed into two cells and containment area with an effective capacity of about 120,000 m3 net of the space to be occupied by the soil cover. The Central MRF will be housed in a 360 m2 building complete with hopper, conveyor and trommel set for sorting capacity of about 2 t/hr. Sub-Component 5: Closure of Existing Dumpsite. The existing dumpsite covers an area of about 5,000 m2. Dumping has not been done systematically, waste is gathered on the vast area consisting mainly of mixed wastes. There is no leachate formation. Closure will include systematic clean up of other area and removal of remaining waste from dump site to SLF. Project Cost (Direct)

Unit Cost (US Total (US Subproject Component Units $) $)

Equipment and machineries 1 200,000 200,000

Collection Trucks 2 70,000 140,000 Goods: Waste bins HDPE 1.1m3 250 180 45,000

Clean up of existing dumpsite 1 80,000 80,000 MRF 1 225,000 225,000

Construction 2.0 SLF 1 2,168,000 2,168,000

TOTAL 2,858,000 Implementation Schedule

3

Appendix2 4.

Profile of Janiuay SWM Project APPENDIX 4.2

1

Appendix2 4.

PROFILE OF JANIUAY SOLID WASTE MANAGEMENT PROJECT

PROJECT BACKGROUND 1. The municipality of Janiuay is one of the four local government units (LGUs) included in ADB’s Project Preparatory Technical Assistance (PPTA) for the Philippines Solid Waste Management Sector Project. The PPTA covers the preparation of 10-year solid waste management plans and feasibility studies of selected subprojects for Del Carmen in Siargao Island, Malay in Aklan Province, La Trinidad in Benguet Province, and Janiuay in Iloilo Province from January to December 2013. 2. Janiuay is a first class municipality situated at the south central part of Iloilo, Island of Panay. It has 16 urban and 46 rural barangays with a population of 65,600 that is expected to reach 91,200 by 2023.

3. The 3rd District of Iloilo where Janiuay is located has a population of 443,500 as of 2013. This is projected to grow to 607,900 by 2023. PROJECT RATIONALE 4. Janiuay currently generates about 21 tons per day (tpd) of solid waste. The entire 3rd District collectively generates 126 tpd. Waste collection within the district is about 19 tpd, or 14% of the total waste generation. 5. The projected growth of Janiuay, its plan to attain cityhood by 2017, and its ultimate aim is hosting in the future the disposal facility for the entire 3rd District of Iloilo. However, Janiuay SWM sub-project will be developed in the first phase as a standalone project. 6. Key gaps in the current solid waste management (SWM) system of Janiuay include the following: (i) inadequate and inefficient collection, (ii) mixed waste collection, (iii) absence of or limited implementation of ordinances requiring segregation at source and segregated waste collection and prohibiting littering, (iv) limited information campaign on proper SWM, (v) unsanitary practice of recovering recyclables through waste picking, (vi) disposal of mixed waste into open dumps, (vii) limited technical know-how to implement sustainable SWM system(s) and (viii) non-collection of garbage fees from households in the municipality 7. Similar gaps were observed in the rest of the 3rd District of Iloilo. 8. The proposed SWM subproject which includes the expansion of waste collection system, establishment of a Materials Recovery Facility (MRF), development and operation of a sanitary landfill (SLF), and closure of the Gibolo dumpsite will contribute to the improvement of the municipality’s SWM systems and reduce the health risks and safety issues associated with uncollected waste, waste picking, and open dumping. THE SUBPROJECT 9. The Janiuay SWM subproject shall have the following sub-components: 1. Acquisition of Solid Waste Management equipment which includes the following: a. 2 collection vehicles b. 270 waste bins c. 1 bulldozer for SLF operation d. MRF Equipment 2. Construction of Category 2 Sanitary Landfill (SLF) and Materials Recovery Facility (MRF)at Barangay Caraudan, Janiuay and Closure of the Gibolo Dumpsite

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Appendix2 4.

Component 1: Priority Infrastructure Investments in SWM

Sub-Component 1: Acquisition of two waste collection vehicles. Two dump trucks, each with a capacity of 10m3-13 m3, will be acquired. These additional vehicles will facilitate expansion of the coverage to the rural barangays and increase the number of collection trips.

Sub-Component 2: Acquisition of 270 waste bins. The HDPE bins will have 240- liter capacity. These will facilitate temporary storage of segregated waste prior to collection and complement the currently available, 100-liter plastic bins being used by the LGU.

Sub-Component 3: Acquisition of SLF Equipment. The equipment will include a bulldozer and a weigh bridge.

Sub-Component 4: Construction of MRF with power substation. The MRF will occupy 900 m2 section of the 6.2 hectare lot allotted for the SLF in Barangay Caraudan. It will be designed to process 15 to 30 tons of waste per day in an 8-hour shift using a combination of mechanical and manual processing. The MRF will be used to recover the recyclables from the collected waste. The substation will be used to connect the MRF and the SLF to the grid.

Sub-Component 5: Construction of a Category 2 Sanitary Landfill. The SLF will be located in a 6.2 hectare lot in Barangay Caraudan. It will be progressively developed into two cells with an effective capacity of 346,000 m3 net of the space to be occupied by the soil cover.

Sub-Component 6: Closure of Gibolo dumpsite. The Gibolo dumpsite covers an area of about 4,500 m2 and is expected to have an accumulated waste of about 7,500 tons. Closure will include: removal of waste from barangay road, grading and compaction, slope modification, application of soil cover, drainage control and leachate collection

Project Cost (Direct) The direct cost of the Janiuay Subproject Components using 2013 prices amounted to US$ 2,931,723. The cost of each component is presented in Table below.

Item Facility/Activity Capacity Quantity Unit Cost Total (US$) (US$) 1 Collecti on T rucks 10m3 2 70,000 140,000 2 Waste Collection bins 240 li ter 270 80 21,600 3 Materials Recovery Facility lot 1 435,483 435,483

4 MRF Equipment lot 1 56,000 56,000 Sanitary Landfill inclusive of 5 weigh bridge lot 1 1,768,640 1,768,640 6 SLF Equipment (bulldozer) D6 1 160,000 160,000 7 Dump Closure lot 1 350,000 350,000 TOTAL 2,931,723 Source: PPTA 8115 PHI Consultant Team

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Appendix2 4.

Implementation Schedule

Figure 1 shows the subproject implementation schedule. Assuming the loan or grant is processed within 2014, actual project activities could commence in 2015. Detailed engineering design will be undertaken in the 1st 6 months of 2015. Acquisition of the waste collection trucks and waste bins could take place in the first quarter of 2016 immediately after the prequalification and bidding of contractor. Construction of the SLF and MRF will commence and be completed in 2016. The SWM facilities are expected to be operational by 2017. Closure of the Gibolo Dumpsite could be implemented as soon as the SLF becomes operational.

Implementation Schedule

4

Appendix 4.3

Profile of La Trinidad SWM Project APPENDIX 4.3

1

Appendix 4.3

PROFILE OF LA TRINIDAD SOLID WASTE MANAGEMENT PROJECT

A. PROJECT BACKGROUND 1. The Municipality of La Trinidad is one of the four local government units (LGUs) included in ADB’s Project Preparatory Technical Assistance (PPTA) for the Philippines Solid Waste Management Sector Project. The PPTA covers the preparation of 10-Year solid waste management plans and feasibility studies of selected subprojects for Del Carmen in Siargao Island, Malay in Aklan Province, La Trinidad in Benguet Province, and Janiuay in Iloilo Province from January to December 2013. 2. La Trinidad is a first class municipality and the capital of Benguet Province situated in the mountainous region in Luzon. It has 16 barangays with a population of about 120,000, which is expected to reach nearly 188,000 by 2025.

B. PROJECT RATIONALE 3. La Trinidad currently generates about 72 tons per day (tpd) of solid waste. Waste collection efficiency is 83% . In addition, La Trinidad generates agriculture waste from the trading post about 20.9tpd, which is mainly composted in Alno. 4. La Trinidad has carried out substantial investments over the last 10 years to improve its SWM. However, the present conditions of the sanitary landfill and composting facilities are still poor. Increasing solid waste load and ineffective “black hole”1 process are creating a hygienic and health risk, increasing environmental pollution in the surrounding areas and a tributary. 5. Key gaps in the current solid waste management (SWM) system of La Trinidad include the following: (i) mixed waste collection that shortens the landfill life span, (ii) absence of or limited enforcement of source segregation, (iii) limited infrastructure to collect, segregate and dispose MW, (iv) manage waste disposal information campaign on proper SWM, (v) unsanitary practice of recovering recyclables through waste picking, and (vi) limited technical knowhow to implement sustainable SWM system. 6. Waste minimization with the improvement and increased solid waste treatment capacity in La Trinidad is necessary. This includes the expansion of waste collection system, improvement of waste treatment system, reusing existing landfill site, and construction of a new cell to reduce health, environment and safety risks associated with SWM. The proposed project supports La Trinidad’s ultimate goal to establish the Integrated Solid Waste Management System (ISWMS).

C. THE SUB-PROJECT 7. The La Trinidad SWM subproject will have the following components; (i) acquisition of waste collection vehicles, waste bins, barangay MRFs and sanitary landfill (SLF) equipment; (ii) landfill mining to reuse existing cell again; (iii) Closure of existing dumpsite; (iv) rehabilitation of access road and construction of a Category 2 Cell; and (v) rehabilitation and upgrading of existing compost plant. Project sub-components have been presented detailed below.

1 The Municipality of La Trinidad started using the so called super “black hole” in 2011 to treat organic waste. The facility uses low temperature plasma and magnets to turn waste into ash. The process contains of an inductive low- temperature heating chamber, a grinder for conditioning of high-medium calorific value material as well connected scrubbers for exhaust air purification purposes. Material will be grinded and 8 hours processed within the low- temperature chamber. The result is a carbonised material later on called “Ash”. 2

Appendix 4.3

Sub-Comp 1: Acquisition of waste collection vehicles. Eight (8) compaction trucks (each with 5m3 capacity) and two (2) skip trucks will be acquired. These additional vehicles will facilitate replacement of the aging fleet of dump and compaction trucks. Sub-Comp 2: Acquisition waste bins. 620 waste bins and 6 skip bins will be acquired. HDPE bins with 1.1m3 capacity and steel skip bins with 8m3 capacity will be acquired. These bins will facilitate temporary storage of segregated waste prior to collection and complement the currently available, 100-liter plastic and steel-wire bins being used by the LGU Sub-Comp 3: Acquisition of SLF equipment. The equipment will include a bulldozer and leachate pumps Sub-Comp 4: Modernization and upgrading of the compost plant. This includes the installation of a new piping system to increase air supply and improve conveyance of leachate from composting boxes through the addition of six (6) aerated composting boxes to existing compost plant, increasing the amount of blowers and application of a more appropriate blowing/suction concept. Sub-Comp 5: Acquisition of compost equipment. The equipment to be acquired include a trailer, tools, sieve drum, wheel loader, shredder, and water pump. Sub-Comp 6: Acquisition of Barangay MRFs. Establishment of 5 Clustered Barangay level MRFs consisting of a semi-automated MRF equipped with two Eco Compost Receptacle systems. One centralized MRF unit shall process MSW from the five most urbanized barangays directed to the Alno SLF. Sub-Comp 7: Construction of a category 2 Cell III. The Cell is located in a 9.6 hectare (ha) lot in Barangay Alno. SLF size is 2.7 ha. It will be progressively developed into four cells with an effective capacity of 350,000 m3 net of the space to be occupied by the soil cover. Cell III construction also consists of an installation of weighing bridge. Sub-Comp 8: Landfill mining. Landfill mining shall be one of the first measures to be implemented before the rehabilitation of Cell I. Through the process, recyclables, combustible fractions and soil shall be recovered and sufficient space shall be freed up, consequently extending the life span of the cell from 7 to 12 years. This includes excavation and processing of 21,140 tons of waste, backfilling of 11,800 m³, and preparing 28,990 bales (650kg/pc) for intermediate storage or transportation to a thermo/energy recovery facility. Sub-Comp 9: Rehabilitation of access road to Alno SLF. This includes the rehabilitation of the access road to the Alno SLF spanning 750m. The road was established within the compound of the Alno Sanitary Landfill which is owned by the municipal government. The access road shall be rehabilitated to qualify as an 'all weather' road, with width of at least 4 m, and is well passable even during the rainy season. Sub-Comp 10: Rehabilitation of Cell I. To operationalize Cell I after landfill mining the following measures have to be taken; (i) proper site investigation to confirm activities to be carried out; (ii) rehabilitation of the existing un-reinforced retention wall; (iii) rehabilitation of leachate dewatering ditch; (iv) rehabilitation of leachate treatment facility; and (v) construction of leachate circulation or/and treatment system.

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Appendix 4.3

Project Cost (Direct) Unit Cost Item Units (US$) Total (US$) Total (Php) Acquisition of SLF equipment and machineries 1 165,000 165,000 7,177,500 Goods: HDPE waste bins 1.1m3 620 180 111,600 4,854,600 Compaction truck (5m3 capacity) 8 70,000 560,000 24,360,000 Skip truck 2 50,000 100,000 4,350,000 Skip container 8m3 6 6,000 36,000 1,566,000 Landfill mining 1 639,615 639,615 27,823,253 Construction of Cell III 1 1,891,835 1,891,835 82,294,829 Centralized MRF at Alno 1 474,700 474,700 20,649,450 Barabgay MRFs 5 97,700 488,500 21,249,750 Widening of service road 1 169,500 169,500 7,373,250 Rehabilitation of Cell I 1 450,000 450,000 19,574,997 Rehabilitation and upgrading of Compost plant 1 99,820 99,820 4,342,170 Acquisition of equipment for Compost Facility 1 124,800 124,800 5,428,800 Involuntary Resettlement 3,030,503 TOTAL 5,311,370 231,044,598

Implementation Schedule

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Appendix 4.4

Profile of Malay/Boracay SWM Project APPENDIX 4.4

1

Appendix 4.4

PROFILE OF MALAY/BORACAY SOLID WASTE MANAGEMENT PROJECT

A. PROJECT BACKGROUND 1. The Municipality of Malay is one of the four local government units (LGUs) included in ADB’s Project Preparatory Technical Assistance (PPTA) for the Philippines Solid Waste Management Sector Project. The PPTA covers the preparation of 10-year solid waste management plans and feasibility studies of selected subprojects for Del Carmen in Siargao Island, Malay in Aklan Province, La Trinidad in Benguet Province, and Janiuay in Iloilo Province from January to December 2013. 2. Malay is a first class municipality situated in the north of Aklan. It has 14 barangays in the mainland and 4 barangays in Boracay. As of 2013, the population of Malay stood at 36,000. This is expected to reach nearly 86,000 by 2023. 3. Boracay is one of the most famous tourist destinations in the Philippines with arrivals of 1.2 million tourists in 2012 and an estimated 1.3 million in 2013. It is estimated that 2.7 million tourists will visit Boracay by 2018.

B. PROJECT RATIONALE 4. Boracay currently generates about 40 tons per day (tpd) of solid waste. Waste collection efficiency within its barangays is 92%. Waste generation is expected to reach 158 tpd in 2023. 5. Malay/Boracay has carried out substantial investments on solid waste management (SWM) with JICA financial support between 2007 and 2010. Waste is segregated at source and segregated collection is practiced. Waste is collected regularly and brought to the materials recovery facilities (MRF) at Yapac, Balabag and Manoc-Manoc for processing. The system however needs improvement. The present fleet of collection vehicles is aging. Collected biodegradables cannot be processed by the limited composting capacity and technology at Balabag MRF. Storage of biodegradables leads to leachate generation and emission of foul odor. The hauling of the residuals to Caticlan and the Kabulihan SLF is not done on a regular basis and this has led to a pile up of large amounts of waste in the three MRFs. These conditions pose health risks to MRF workers and nearby inhabitants and bring about soil pollution and deep groundwater system. The Kabulihan SLF has already reached its capacity. 6. The rapid growth of local population and continued increase in tourist arrivals has translated to very significant increase in waste generation, which has exceeded the projections made in previous studies. 7. Clearly, major changes need to be introduced and implemented to the current SWM system of Malay, particularly Boracay Island. 8. An improved system which will address the identified gaps in collection and transport logistics, processing and treatment, marketing of recyclables and technical know-how of the staff responsible for SWM management must be put in place. The system should utilize the best available technology for treating waste which will address most of the incoming waste and minimize hauling and disposal to the SLF. Coupled with the well-entrenched system of segregation at source, this system could provide a long-term solution to the growing SWM problem of Boracay

C. THE SUBPROJECT 9. The Malay/Boracay SWM subproject will have the following components: improvement of waste collection system, mining of residuals and clean-up of the three MRFs sites,

2

Appendix 4.4 establishment of a waste-to-energy (WTE) plant supported by mechanical and manual sorting facility in Boracay, construction of a new cell in Kabulihan SLF, and acquisition of SWM equipment. The details are presented as follows: Sub-Component 1: Landfill Mining at Balabag, Manoc-Manoc and Yapak. This will consist of:(i) mobilization and site preparation; (ii) excavation and recovery of recyclables and high energy value materials; (iii) cleaning of Balabag, Manoc-Manoc and Yapac; (iv) preparation of transportable bales (1.2 m x 0.85 m x1.1 m) of 47,100m3; (v) storing 20,000 bales and transporting and storing 9,000 bales to Manoc-Manoc; (vi) managing incoming waste over a period of six (6) months to Manoc-Manoc (10,550 m3) and to Balabag (20,000 m3); (vii) preparation of transportable bales 9,200 m3; (viii) storing 3,600 bales and transporting and storing 5,600 bales to Manoc-Manoc; (ix) transporting fines and residues of 14,950 m3 to Kabulihan SLF; and (x) remediation of Yapac MRF site, application of soil cover of 400 m3 and greening an area of 1,400 m2.Annex 3, Cost of Landfill Mining. Sub-Component 2: Construction of a WTE at Manoc-Manoc and MRF at Balabag. This output will include:(i) the procurement and installation of mechanical/manual processing facility (MRF) with the design capacity of 50 tpd; (ii) procurement and installation of a waste-to-energy (WTE) plant with an estimated 1 MW electricity output, consisting of a thermal waste treatment unit and heat/energy conversion unit; and (iii) procurement and installation of a sub-station to connect the WTE plant to the power network. Annex 4 Power Purchase Agreement, Annex 5 Balabag MRF. Sub-Component 3: Construction of a New Cell to Kabulihan SLF. This will consist of: (i) the installation of a gate, fencing and lighting of the area, surface water drainage system and internal road; (ii) cell with HDPE lining and leachate collection system; (iii) procurement of landfill equipment; and (iv) construction of a leachate circulation system. Sub-Component 4: Waste Collection and Hauling Logistics. This will consist of: (i) the purchase of barge for hauling of waste and recyclables from Boracay to Caticlan; (ii) purchase of four (4) brand new compaction trucks of 5 m3 capacity; (iii) two (2) brand- new open trucks with a capacity of 8-10 m3; and (iv) purchase of 450 pieces of 240-liter capacity HDPE waste bins. Sub-Component 5: Acquisition of SWM equipment. This will consist of: (i) the purchase of bulldozer for SLF operation in Kabulihan; (ii) a weigh bridge for the mechanized MRF in Manoc-Manoc; and (iii) four (4) payloaders, three (3) forklift, four (4) weighing scales and two (2) standard tool sets for MRF operations in Balabag and Manoc-Manoc. Sub-Component 6: The MRF will occupy about 900 m2 area in Caticlan. It will be designed to process 10 tons of waste per day in an 8-hour shift using a combination of mechanical and manual processing. The MRF will be used to recover the recyclables from the collected waste. It will mainly support increasing waste generation at the entry point of Boracay.

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Appendix 4.4

Project Cost (Direct) 10. The direct cost of the Malay Subproject Components, Phase 1, using 2013 prices amounted to US$ 13,019,000. The cost of each component is presented in Table below.

Item Capacity No. of Units Unit Cost ($) Total ($)

SWM Equipment 3 Compaction Trucks 5 m 4 70,000 140,000 3 Open trucks 8‐10 m 2 60,000 240,000 Waste Bins (HDPE) 240 liter 450 80 36,000 3 Payloader 1.5 m bucket 4 65,000 260,000 Bulldozer D6 1 160,000 160,000 Baler 4tons/hr 4 6,000 24,000 Fork lift 3ton 3 18,000 54,000 Garbage Barge 1 600,000 600,000 Toolset 2 3,500 7,000 Miscellaneous equipment 1 3,000 3,000 Subtotal 1,524,000 Activities and Facilities Mining of 3 MRFs 1 565,970 565,970 Clean up of 3 MRFs 1 178,263 178,263 Caticlan MRF 1 97,700 97,700 Malay Landfill construction with wigh bridge 1 2,253,520 2,253,520 Balabag MRF 1 1,700,000 1,700,000 RDF Plant, Gasifier, IC‐Engine/Generator 1MW 1 6,700,000 6,700,000 Subtotal 11,495,000 TOTAL OF PHASE 1 13,019,000

Implementation Schedule 11. Figure 1 shows the subproject implementation schedule. Assuming the loan or grant is processed within 2014, actual project activities could commence in 2015. Detailed engineering design will be undertaken in the 1st 6 months of 2015. Acquisition of the waste collection trucks and waste bins could take place in the first quarter of 2016 immediately after the prequalification and bidding of contractor. Construction of the 2nd cell of the Kabulihan SLF and MRF will commence and be completed in 2016. MRF clean-up will start on the 2nd half of 2016 to be immediately followed by mining of the residuals. The SWM facilities including WTE are expected to be operational by 2017.

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Appendix 4.4

Implementation Schedule

5

Appendix 5.

Outline of an Indigenous Peoples Plan APPENDIX 5

1

Appendix 5.

APPENDIX 5: OUTLINE OF AN INDIGENOUS PEOPLES PLAN1

This outline is part of the Safeguard Requirements 3. An Indigenous Peoples plan (IPP) is required for all projects with impacts on Indigenous Peoples. Its level of detail and comprehensiveness is commensurate with the significance of potential impacts on Indigenous Peoples. The substantive aspects of this outline will guide the preparation of IPPs, although not necessarily in the order shown.

A. Executive Summary. This section concisely describes the critical facts, significant findings, and recommended actions.

B. Description of the Project. This section provides a general description of the project; discusses project components and activities that may bring impacts on Indigenous Peoples; and identify project area.

C. Social Impact Assessment. This section: - Reviews the legal and institutional framework applicable to Indigenous Peoples in project context. - Provides baseline information on the demographic, social, cultural, and political characteristics of the affected Indigenous Peoples communities; the land and territories that they have traditionally owned or customarily used or occupied; and the natural resources on which they depend. - Identifies key project stakeholders and elaborate a culturally appropriate and gender-sensitive process for meaningful consultation with Indigenous Peoples at each stage of project preparation and implementation, taking the review and baseline information into account. - Assesses, based on meaningful consultation with the affected Indigenous Peoples communities, the potential adverse and positive effects of the project. Critical to the determination of potential adverse impacts is a gender-sensitive analysis of the relative vulnerability of, and risks to, the affected Indigenous Peoples communities given their particular circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to those available to other social groups in the communities, regions, or national societies in which they live. - Includes a gender-sensitive assessment of the affected Indigenous Peoples’ perceptions about the project and its impact on their social, economic, and cultural status. - Identifies and recommends, based on meaningful consultation with the affected Indigenous Peoples communities, the measures necessary to avoid adverse effects or, if such measures are not possible, identifies measures to minimize, mitigate, and/or compensate for such effects and to ensure that the Indigenous Peoples receive culturally appropriate benefits under the project.

D. Information Disclosure, Consultation and Participation. This section: - Describes the information disclosure, consultation and participation process with the affected Indigenous Peoples communities that was carried out during project preparation; - Summarizes their comments on the results of the social impact assessment and identifies concerns raised during consultation and how these have been addressed in project design; - In the case of project activities requiring broad community support, documents the process and outcome of consultations with affected Indigenous Peoples communities and any agreement resulting from such consultations for the project activities and safeguard measures addressing the impacts of such activities; - Describes consultation and participation mechanisms to be used during implementation to ensure Indigenous Peoples participation during implementation; and - Confirms disclosure of the draft and final IPP to the affected Indigenous Peoples communities.

E. Beneficial Measures. This section specifies the measures to ensure that the Indigenous Peoples

1 Source: ADB. 2009. Safeguard Policy Statement. Manila.

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Appendix 5. receive social and economic benefits that are culturally appropriate, and gender responsive.

F. Mitigative Measures. This section specifies the measures to avoid adverse impacts on Indigenous Peoples; and where the avoidance is impossible, specifies the measures to minimize, mitigate and compensate for identified unavoidable adverse impacts for each affected Indigenous Peoples groups.

G. Capacity Building. This section provides measures to strengthen the social, legal, and technical capabilities of (a) government institutions to address Indigenous Peoples issues in the project area; and (b) Indigenous Peoples organizations in the project area to enable them to represent the affected Indigenous Peoples more effectively.

H. Grievance Redress Mechanism. This section describes the procedures to redress grievances by affected Indigenous Peoples communities. It also explains how the procedures are accessible to Indigenous Peoples and culturally appropriate and gender sensitive.

I. Monitoring, Reporting and Evaluation. This section describes the mechanisms and benchmarks appropriate to the project for monitoring, and evaluating the implementation of the IPP. It also specifies arrangements for participation of affected Indigenous Peoples in the preparation and validation of monitoring, and evaluation reports.

J. Institutional Arrangement. This section describes institutional arrangement responsibilities and mechanisms for carrying out the various measures of the IPP. It also describes the process of including relevant local organizations and NGOs in carrying out the measures of the IPP.

K. Budget and Financing. This section provides an itemized budget for all activities described in the IPP.

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Appendix 6

Estimation of Greenhouse Gas Emission Del Carmen Subproject APPENDIX 6

1

Appendix 6

APPENDIX 6: ESTIMATION OF GREENHOUSE GAS EMISSION DEL CARMEN SUBPROJECT

Using the simulation developed by the Institute for Global Environmental Strategies (IGES) for solid waste management options, the GHG emissions with and without the proposed solid waste management project was quantified. The simulation was based on the IPCC 2006 guidelines which was adapted to quantify GHG emissions from different phases of waste management. The greenhouse gas effect is measured in terms of carbon dioxide equivalents (CO2-eq). The calculation covers different aspects of solid waste management practices in Del Carmen such as transportation and collection of wastes, mixed waste landfilling, composting, recycling, and open burning.

Under the existing scenario, Del Carmen generates 5.5 tons per day of solid waste which is approximately equivalent to 165 tons per month. Waste collection efficiency is 28%, representing 47 tons per month of waste. For waste transportation, the municipality uses a dump truck which collects wastes thrice a week for open dumping at the site located about 6.6 km away from the Poblacion. There is low volume of biodegradables from households since food wastes and cuttings are being fed to animals such as pigs and dogs. Based on the survey, about 0.22% of waste, mostly composed of leftover food and fruit and vegetable peelings, undergoes backyard composting. In addition, households practice burning of garden and yard wastes constituting about 32.8% of the total waste generated.

Using these information gathered during the Waste Analysis and Characterization Survey (WACS) and from the social survey of stakeholders, the amount of waste transported, composted, and open burned were determined. Since there is no landfill in Del Carmen, the amount of solid wastes that is unmanaged and disposed elsewhere in the environment was used in the estimation of GHG emission from landfilling in an uncategorized landfill. This was estimated using the following:

Amount of unmanaged = Total waste generated – (Waste for composting) – (Waste for solid waste (either recycling) – (Waste in open burning) thrown in environment, rivers or canals)

Based on the simulation, the current solid waste management practices in the municipality directly contribute 50,026 kg CO2-eq/monthly managed waste. Indirect GHG savings primarily from existing backyard composting and household waste recycling practices was computed as 6,770 kg CO2-eq/month. In terms of open burning of wastes, majority of households in the municipality burn yard wastes that contribute 48 kg CO2-eq/month of waste. Overall, the GHG emissions per month of the current solid waste management system results to a net GHG emission of 43,256 kg CO2-eq/month.

With the proposed project, it is expected that waste collection efficiency and recycling will improve and the practice of open burning will be eliminated. A central MRF is proposed to segregate collected recyclable wastes such as glass, plastics, and metals which will be baled, temporarily stored and eventually sold to recycling or manufacturing firms. The existing practice of feeding leftover food to animals and backyard composting is expected to continue while a portion of the garden waste will be diverted to the composting facility at the provincial nursery which will serve as central composting

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Appendix 6 facility of the municipality. Resulting compost will be used at the nursery and also given to farmers.

With the project scenario, two trucks will be acquired by the project to collect and transport the solid waste to the proposed SLF site. The total amount of solid waste generated by the municipality was assumed to be the amount of waste collected. The amount of waste to be disposed at the Category 2 landfill is estimated as 121 tons/month. Since the proposed project will encourage segregation and that the MRF will further support proper waste segregation and management, waste to be recycled is projected as 12 tons per month. Because of the diversion of yard waste to the composting facility, the amount of waste for composting will increase to 31 tons per month.

Using the IGES simulation, the implementation of the project and improvement in solid waste collection, segregation, and recycling in the municipality of Del Carmen is projected to result to indirect GHG savings of 120,800 kg CO2-eq/month of managed waste and net GHG emissions of -23,811 kg CO2-eq/month.

Comparing the existing situation and the scenario with the proposed project, the avoided direct emissions because of the project is calculated as 67,067 kg CO2-eq/month. Table 1 presents the summary of the GHG emissions with and without the project.

Table 1: GHG Emissions With and Without the Project Existing SWM System With the Project Direct Indirect Direct Indirect Activity Net GHG Net GHG Unit GHG GHG GHG GHG Emissions Emissions Emissions Savings Emissions Savings Transportation 0.4 0 0.4 0.3 0 0.3 kg CO2-eq/ton of waste Landfilling of 426 0 426 604 0 604 kg CO2-eq/ton of mixed municipal mix waste solid waste Composting 177 1,706 -1,529 177 2,274 -2,097 kg CO2-eq/ton of organic waste Recycling 1,407 3,722 -2,316 1,407 3,722 -2,316 kg CO2-eq/ton of mixed recyclables Open burning 48 0 48 0 0 0 kg CO2-eq/ton of open burned waste GHG reduction 303 41 262 587 731 -144 kg CO2-eq/ton of from the whole collected waste system Total GHG 50,026 6,770 43,256 96,990 120,800 -23,811 kg CO2- emissions per eq/monthly month managed waste

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Appendix 6

Annex GHG Calculation

EXISTING CONDITION: Transportation by diesel-fueled trucks

Total amount of waste transportation by "Diesel" fueled trucks 47 Tonnes/month Total diesel fuel consumption for transportation 7.92 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 0.45 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste

Direct GHG emissions from transportation 0.45 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 21.35 kg of CO2-eq/month

Total amount of mix waste landfilling 105.3 tonnes/month Select the type of landfill in your municipality Uncategorized

Compostion of landfilling waste

Component Percentage (%) Garden waste 36.82 Plastics 4.98 Paper 6.97 Glass 1.74 Hazardous waste 0.24 Others 49.25 Total 100.00

Results

Emission of CH4 from organic waste landfilling 20.28 kg of CH4/tonne Direct GHG emission from mixed waste landfilling/open dumping 425.85 kg of CO2-eq/tonne of mix waste Total GHG emission from landfilling per month 44841.84 kg of CO2-eq/month Total amount of garden waste use for composting 0.36366 Tonnes /month Total amount of compost production 0.18183 Tonnes /month Percentage of compost use for agricultural and gardening purposes 100 % Results

GHG emissions from waste degradation 177.00 kg of CO2-eq/tonne of waste

Direct GHG emissions from composting 177.00 kg of CO2-eq/tonne of waste

Avoided GHG emission sfrom chemical fertilier production 1075.65 kg of CO2-eq/tonne of waste

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Appendix 6

Avoided GHG emissions from organic waste landfilling 630.00 kg of CO2-eq/tonne of waste

Net GHG emissions from composting (life cycle perspective) -1528.65 kg of CO2-eq/tonne of organic waste Total GHG emission from composting per month -555.91 kg of CO2-eq/month <<

Total amount of seperated recyclables 1.652055 tonnes/month Compostion of recyclables Percentage Type of recyclable (%) Paper 40.00 Plastic 36.80 Aluminium 12.60 Steel 0.00 Glass 10.60 Total 100.00 kg of CO2-eq/tonne of mixed Direct GHG emissions from recycling 1406.67 recyclables kg of CO2-eq/tonne of mixed Avoided GHG emissions from recycling 3722.21 recyclables Net GHG emissions from recycling (life cycle kg of CO2-eq/tonne of mixed perspective) -2315.54 recyclables <<

Total GHG reduction from recycling per month -3,825.40 kg of CO2-eq/month

Total amount of waste open burned 57.98 tonnes/month

Compostion of waste of open burning Component Percentage (%) Food waste 0.00 Garden waste 36.60 Plastics 3.00 Paper 5.50 Others 54.90 Total 100.00

Fossil-based CO2 emissions from open burning 47.85 kg of CO2-eq/tonne of open burned waste 2,774.3 Total GHG emission from open burning per month 4 kg of CO2-eq/month

WITH PROJECT SCENARIO: Transportation by diesel-fueled trucks

Total amount of waste transportation by "Diesel" fueled trucks 165 Tonnes/month

5

Appendix 6

Total diesel fuel consumption for transportation 15.84 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 0.26 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste Direct GHG emissions from transportation 0.26 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 42.69 kg of CO2-eq/month

Total amount of mix waste landfilling 120.6 tonnes/month Managed (has landfill cover Type of landfill in your municipality and liner)

Compostion of landfilling waste

Component Percentage (%) Food waste 42.00 Gardeb waste 36.82 Plastics 4.98 Paper 6.97 Glass 1.74 Hazardous waste 0.25 Others 49.24 Total 100.00 Results Emission of CH4 from organic waste landfilling 28.73 kg of CH4/tonne kg of CO2- Direct GHG emission from mixed eq/tonne of mix waste landfilling/open dumping 603.51 waste Total GHG emission from landfilling kg of CO2- per month 72783.20 eq/month Total amount of food waste use for composting 0.36366 Tonnes /month Total amount of garden waste use for composting 31.1199 Tonnes /month Total amount of compost production 15.92 Tonnes/month Percentage of compost use for the agricultural and gardening purposes 100 %

Results GHG emissions from waste kg of CO2-eq/tonne of degradation 177.00 waste Direct GHG emissions from kg of CO2-eq/tonne of composting 177.00 waste

Avoided GHG emissions from organic waste kg of CO2-eq/tonne of landfilling 1087.83 waste

6

Appendix 6

Net GHG emissions from composting (life cycle kg of CO2-eq/tonne of perspective) -2097.39 organic waste

Total GHG emission from composting per kg of CO2- <<

Total GHG reduction from recycling per month -30,603.18 kg of CO2-eq/month

7

Appendix 7.

Estimation of Greenhouse Gas Emission Janiuay Subproject APPENDIX 7

1

Appendix 7.

APPENDIX 7: ESTIMATION OF GREENHOUSE GAS EMISSION JANIUAY SUBPROJECT

Using the simulation developed by the Institute for Global Environmental Strategies (IGES) for solid waste management options, the GHG emissions with and without the proposed solid waste management project was quantified. The simulation was based on the IPCC 2006 guidelines which was adapted to quantify GHG emissions from different phases of waste management. The greenhouse gas effect is measured in terms of carbon dioxide equivalents (CO2-eq). The calculation covers different aspects of solid waste management practices in Janiuay such as transportation and collection of wastes, mixed waste landfilling, composting, recycling, and open burning.

Under the existing scenario, Janiuay generates 21 tons per day of solid waste which is approximately equivalent to 630 tons per month. Waste collection efficiency is only 17%, representing 105 tons per month of collected waste. The collection coverage is located within a 3-km radius from the center of the municipality. The municipality uses three surplus vehicles for collection of waste and transport to the dumpsite located about 7 km away. On the average, two vehicles collectively make 3 – 4 trips per day to collect mixed wastes.

The biodegradable wastes which include vegetable and fruit peelings, wet paper and carton, food waste, and leaves make up the bulk of the waste generated in Janiuay. These are mainly due to the agricultural nature of the economy and the practice of including swept tree leaves and trimmings in waste collection. Vermi composting of food wastes is being practiced in four rural barangays while some households of the Gawad Community are practicing simple backyard composting in containers. The recyclable materials constitute about 0.26% of the municipal waste. Most of these recyclables are sold to junkshops.

Using these information gathered during the Waste Analysis and Characterization Survey (WACS) and from the social survey of stakeholders, the amount of waste transported, composted, and open burned were determined. Since there is no landfill in Janiuay, the amount of solid wastes that is unmanaged and disposed elsewhere in the environment was used in the estimation of GHG emission from landfilling in an uncategorized landfill. This was estimated using the following:

Amount of unmanaged = Total waste generated – (Waste for composting) – (Waste for solid waste (either recycling) – (Waste in open burning) thrown in environment, rivers or canals)

Based on the simulation, the current solid waste management practices in the municipality directly contribute 166,041 kg CO2-eq/monthly managed waste. Indirect GHG savings from composting was computed as 1,706 kg CO2-eq/month while from recycling is about 3,653 kg CO2-eq/month. Overall, the GHG emissions per month of the current solid waste management system results to a net GHG emission of 239 kg CO2- eq/month, which also represents potential GHG savings from avoided organic waste landfilling due to composting and waste recycling.

With the proposed project, it is expected that waste collection efficiency and recycling will improve and the practice of open burning will be eliminated. A MRF is proposed to

2

Appendix 7. segregate collected recyclable wastes such as glass, plastics, and metals which will be baled, temporarily stored and eventually sold to recycling or manufacturing firms. The current practice of household and barangay composting and recycling will continue with a projected increase in the amount of wastes to be composted and recovered waste for recycling because of improvement in waste segregation and increase in collection efficiency. Resulting compost will be used at the municipal and barangay nurseries and also given to farmers.

To calculate the GHG emission with the project scenario, the total amount of solid waste generated was assumed to be the amount of waste collected. Two new and bigger capacity trucks will be acquired by the project to collect and transport the solid waste to the MRF site for segregation while residual wastes will be transported to the proposed SLF. It is assumed that the number of trips will be reduced with the purchase of two bigger 13 m3 capacity trucks and that the old surplus trucks will be decommissioned. In addition, it is assumed that since these are new collection trucks, fuel efficiency will be greater than the old surplus vehicles of the LGU.

Using the IGES simulation in calculating the GHG emissions, the implementation of the project will result to potential direct GHG emissions of 346,278 kg CO2-eq/month but with the improvement in the solid waste collection, segregation, and recycling, there will be indirect GHG savings of 197,794 kg CO2-eq/monthly managed waste and net GHG emissions of 148,484 kg CO2-eq/month.

Comparing the existing situation and the scenario with the proposed project, the avoided direct emissions because of the project is calculated as 1,289 kg CO2-eq/month. Table 1 presents the summary of the GHG emissions with and without the project.

Table 1: GHG Emissions With and Without the Project Existing SWM System With the Project Direct Indirect Direct Indirect Activity Net GHG Net GHG Unit GHG GHG GHG GHG Emissions Emissions Emissions Savings Emissions Savings Transportation 2 0 2 0.3 0 0.3 kg CO2- eq/ton of waste Landfilling of 464 0 464 577 0 577 kg CO2- mixed eq/ton of municipal solid mix waste waste Composting 177 1,706 -1,529 177 2,235 -2,058 kg CO2- eq/ton of organic waste Recycling 1,297 3,653 -2,356 1,297 3,653 -2,356 kg CO2- eq/ton of mixed recyclables Open burning 82 0 82 0 0 0 kg CO2- eq/ton of open burned waste GHG reduction 265 26 239 550 314 236 kg CO2-

3

Appendix 7.

Existing SWM System With the Project Direct Indirect Direct Indirect Activity Net GHG Net GHG Unit GHG GHG GHG GHG Emissions Emissions Emissions Savings Emissions Savings from the whole eq/ton of system collected waste Total GHG 166,041 16,268 149,773 346,278 197,794 148,484 kg CO2- emissions per eq/monthly month managed waste

4

Appendix 7.

GHG Calculation (Using IGES Simulation Tool)

EXISTING CONDITION: Transportation by diesel-fueled trucks Total amount of waste transportation by "Diesel" fueled trucks 105 Tonnes/month Total diesel fuel consumption for transportation 78.4 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 2.01 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste

Direct GHG emissions from transportation 2.01 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 211.29 kg of CO2-eq/month

Total amount of mix waste landfilling 292.348 tonnes/month Select the type of landfill in your municipality Uncategorized

Compostion of landfilling waste

Component Percentage (%) Food waste 4.00 Garden waste 40.00 Plastics 4.00 Paper 6.00 Textile 0.20 Leather/rubber 2.00 Glass 2.00 Metal 2.20 Hazardous waste 0.20 Others 39.40 Total 100.00

Results

Emission of CH4 from organic waste landfilling 22.09 kg of CH4/tonne Direct GHG emission from mixed waste landfilling/open dumping 463.94 kg of CO2-eq/tonne of mix waste Total GHG emission from landfilling per month 135632.56 kg of CO2-eq/month

Total amount of food waste use for composting 6 Tonnes /month Total amount of garden waste use for composting 0 Tonnes /month Total amount of compost production 3 Tonnes /month Percentage of compost use for the agricultural and gardening 100 %

5

Appendix 7. purposes

Results

GHG emissions from waste degradation 177.00 kg of CO2-eq/tonne of waste

Direct GHG emissions from composting 177.00 kg of CO2-eq/tonne of waste

Avoided GHG emission sfrom chemical fertilier production 1075.65 kg of CO2-eq/tonne of waste

Avoided GHG emissions from organic waste landfilling 630.00 kg of CO2-eq/tonne of waste

Net GHG emissions from composting (life cycle perspective) -1528.65 kg of CO2-eq/tonne of organic waste Total GHG emission from composting per month -9,171.92 kg of CO2-eq/month <<

Total amount of separated recyclables 1.652 Tonnes/month Type of recyclable Percentage (%) Paper 28.50 Plastic 33.20 Aluminium 13.70 Steel 5.40 Glass 19.20 Total 100.00

Results

Direct GHG emissions from recycling 1296.57 kg of CO2-eq/tonne of mixed recyclables

Avoided GHG emissions from recycling 3652.73 kg of CO2-eq/tonne of mixed recyclables

Net GHG emissions from recycling (life cycle perspective) -2356.17 kg of CO2-eq/tonne of mixed recyclables <<

Total amount of waste open burned 330 tonnes/month

Compostion of waste of open burning Component Percentage (%) Food waste 0.00 Garden waste 75.00 Plastics 5.00 Paper 17.00 Textile 0.50 Leather/rubber 0.00 Glass 0.00 Metal 0.00 Hazardous waste 0.00 Others 2.00

6

Appendix 7.

Total 100.00

Fossil-based CO2 emissions from open burning 81.80 kg of CO2-eq/tonne of open burned waste Total GHG emission from open burning per month 26,993.19 kg of CO2-eq/month

WITH PROJECT SCENARIO: Transportation by diesel-fueled trucks Total amount of waste transportation by "Diesel" fueled trucks 630 Tonnes/month Total diesel fuel consumption for transportation 65 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 0.28 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste Direct GHG emissions from transportation 0.28 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 175.18 kg of CO2-eq/month

Total amount of mix waste landfilling 549.884 tonnes/month Total amoun to diesel fuel use for operation of machineries at the landfill 32 L/month Managed (has landfill Type of landfill in your municipality cover and liner)

Compostion of landfilling waste

Component Percentage (%) Food waste 1.84 Garden waste 41.04 Plastics 4.42 Paper 2.58 Textile 0.74 Leather/rubber 2.12 Glass 2.48 Metal 2.47 Hazardous waste 0.35 Others 41.96 Total 100.00 Results Emission of CH4 from organic waste landfilling 27.45 kg of CH4/tonne kg of CO2- Direct GHG emission from mixed waste eq/tonne of mix landfilling/open dumping 576.70 waste Total GHG emission from landfilling per kg of CO2- month 317120.83 eq/month Total amount of food waste use for composting 6.9 Tonnes /month Total amount of garden waste use for composting 60 Tonnes /month

7

Appendix 7.

Total amount of fossil-fuel use for operational activities 2 L/month Total amount of compost production 33.45 Tonnes/month Percentage of compost use for the agricultural and gardening purposes 100 %

Results GHG emissions from operational kg of CO2-eq/tonne of activities 0.08 waste GHG emissions from waste kg of CO2-eq/tonne of degradation 177.00 waste Direct GHG emissions from kg of CO2-eq/tonne of composting 177.08 waste

Avoided GHG emissions from chemical fertilizer kg of CO2-eq/tonne of production 1075.65 waste Avoided GHG emissions from organic waste kg of CO2-eq/tonne of landfilling 1159.32 waste Net GHG emissions from composting (life cycle kg of CO2-eq/tonne of perspective) -2057.89 organic waste

Total GHG emission from composting per kg of CO2- <<

<<

Total GHG reduction from recycling per month -31,139.14 kg of CO2-eq/month

8

Appendix 8.

Estimation of Greenhouse Gas Emission La Trinidad Subproject APPENDIX 8

1

Appendix 8.

APPENDIX 8. ESTIMATION OF GREENHOUSE GAS EMISSION LA TRINIDAD SUBPROJECT

Using the simulation developed by the Institute for Global Environmental Strategies (IGES) for solid waste management options, the GHG emissions with and without the proposed solid waste management project was quantified. The simulation was based on the IPCC 2006 guidelines which was adapted to quantify GHG emissions from different phases of waste management. The greenhouse gas effect is measured in terms of carbon dioxide equivalents (CO2-eq). The calculation covers different aspects of solid waste management practices in La Trinidad such as transportation and collection of wastes, mixed waste landfilling, composting, recycling, and open burning.

The information gathered during the surveys is used in calculating the GHG contribution under the existing scenario. Based on available information, the municipality of La Trinidad generates 72.57 tons per day of solid waste that is approximately equivalent to 2,177 tons per month. Food waste constitute about 36% of the total waste, followed by plastics (21.3%); paper/cardboard (15.1%); nappies/disposable diapers (7.8%); textiles (5.2%); mineral waste (4.4%); wood (3.9%); glass (1.7%); metals (0.1%); rubber/leather (1.6%); aluminum (0.6%); and residuals (1.9%).

Current waste collection efficiency is 71%, representing 1,545 tons per month of waste. The municipality uses 11 dump trucks that collect wastes around the municipality thrice a day for dumping at the existing controlled dumpsite/landfill located about 16.12 km away from the Poblacion.

The current practice of waste segregation by households and at existing MRFs was also considered in the calculation. About 71% of waste is disposed at the existing controlled dumpsite/landfill while the remaining are composted (0.3%), recovered for recycling (6.2%), and burned (22.5%).

Using these information gathered during the Waste Analysis and Characterization Survey (WACS) and from the social survey of stakeholders, the amount of waste transported, composted, recovered for recycling and open burned were determined. Based on the IGES simulation, the current solid waste management practices in the municipality directly contribute 951,775 kg CO2-eq/monthly managed waste. Indirect GHG savings primarily from existing composting activities at MRFs and from household and waste picking and recycling practices was computed as 383,260 kg CO2-eq/month. The contribution of open burning of wastes to GHG emission was calculated as 160 kg CO2-eq/month of open burned waste. Overall, the GHG emissions per month of the current solid waste management system results to a net GHG emission of 568,516 kg CO2-eq/monthly managed waste.

With the proposed project, it is expected that coverage of waste collection in La Trinidad will increase to 100%. A new cell of the sanitary landfill will be constructed and the operation of the MRF will be improved. It is estimated at about 21.5% of waste will undergo segregation, recycling and composting while 78.5% will be disposed at the sanitary landfill. A proposed waste to energy facility option is being considered by the LGU although this is not included in the ADB loan. Of the amount of waste recovered, food wastes and garden and park waste will undergo composting while the recyclables will be segregated further at the MRFs.

2

Appendix 8.

The residual wastes from recycling and composting will be either brought to the sanitary landfill or in the future to a proposed WTE facility. For purposes of calculating the GHG contribution of the project, the future WTE component was not considered in the calculation and only the activities related to landfilling, composting, and recycling were considered in the analysis.

With these considerations during project implementation, the GHG emission with the proposed project is calculated as 1,416,271 kg CO2-eq/month. The avoided GHG emission from the project is 1,114,790 kg CO2-eq/month which is primarily due to the improvement in composting and recycling activities. Therefore, the resulting net GHG emission with the proposed project is 301,480 kg CO2-eq/monthly managed waste.

Comparing the existing situation and the scenario with the proposed project, the avoided direct emissions because of the project is calculated as 267,036 kg CO2-eq/monthly managed waste. Table 1 presents the summary of the GHG emissions with and without the project.

Table 1: GHG Emissions With and Without the Project Existing SWM System With the Project Direct Indirect Indirect Activity Net GHG Direct GHG Net GHG Unit GHG GHG GHG Emissions Emissions Emissions Emissions Savings Savings Transportation 3 0 3 4 0 4 kg CO2- eq/ton of waste Landfilling of mixed 435 0 435 632 0 632 kg CO2- municipal solid eq/ton of waste mix waste Composting 177 1,706 -1,529 177 2,117 -1,940 kg CO2- eq/ton of organic waste Recycling 1,454 2,763 -1,309 1,454 2,763 -1,309 kg CO2- eq/ton of mixed recyclables Open burning 160 0 160 0 0 0 kg CO2- eq/ton of open burned waste GHG reduction 438 176 262 650 512 138 kg CO2- from the whole eq/ton of system collected waste Total GHG 951,775 383,260 568,516 1,416,270 1,114,790 301,480 kg CO2- emissions per eq/monthly month managed waste

3

Appendix 8.

Annex GHG Calculation

EXISTING CONDITION: Transportation by diesel-fueled trucks

Total amount of waste transportation by "Diesel" fueled trucks 1545 Tonnes/month Total diesel fuel consumption for transportation 1595.88 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 2.78 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste

Direct GHG emissions from transportation 2.78 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 4301.02 kg of CO2-eq/month

Total amount of mix waste landfilling 1545.3 tonnes/month Total amount of diesel fuel use for operation of machineries at 100 the landfill L/month Select the type of landfill in your municipality Uncategorized

Compostion of landfilling waste

Component Percentage (%) Food waste 6.00 Garden waste 35.00 Plastics 6.00 Paper 6.00 Textile 0.20 Leather/rubber 2.00 Glass 2.00 Metal 2.20 Hazardous waste 0.20 Others 40.40 Total 100.00

Results

Emission of CH4 from organic waste landfilling 20.69 kg of CH4/tonne Direct GHG emission from mixed waste landfilling/open dumping 434.74 kg of CO2-eq/tonne of mix waste Total GHG emission from landfilling per month 671769.67 kg of CO2-eq/month Total amount of food waste use for composting 6 Tonnes /month Total amount of compost production 3 Tonnes /month Percentage of compost use for agricultural and gardening purposes 100 %

4

Appendix 8.

Results

GHG emissions from waste degradation 177.00 kg of CO2-eq/tonne of waste

Direct GHG emissions from composting 177.00 kg of CO2-eq/tonne of waste

Avoided GHG emissions from chemical fertilier production 1075.65 kg of CO2-eq/tonne of waste

Avoided GHG emissions from organic waste landfilling 630.00 kg of CO2-eq/tonne of waste

Net GHG emissions from composting (life cycle perspective) -1528.65 kg of CO2-eq/tonne of organic waste Total GHG emission from composting per month -9,171.92 kg of CO2-eq/month <<

Total amount of seperated recyclables 135 tonnes/month Compostion of recyclables Percentage Type of recyclable (%) Paper 7.45 Plastic 53.15 Aluminium 9.27 Steel 1.98 Glass 28.15 Total 100.00 kg of CO2-eq/tonne of mixed Direct GHG emissions from recycling 1454.52 recyclables kg of CO2-eq/tonne of mixed Avoided GHG emissions from recycling 2763.15 recyclables Net GHG emissions from recycling (life cycle kg of CO2-eq/tonne of mixed perspective) -1308.63 recyclables

Total GHG reduction from recycling per month -176,665.44 kg of CO2-eq/month <<

Total amount of waste open burned 490.8 tonnes/month

Compostion of waste of open burning Component Percentage (%) Food waste 0.00 Garden waste 61.00 Plastics 10.00 Paper 17.00 Others 12.00 Total 100.00

Fossil-based CO2 emissions from open burning 159.50 kg of CO2-eq/tonne of open burned waste Total GHG emission from open burning per month 78,282.60 kg of CO2-eq/month

5

Appendix 8.

WITH PROJECT SCENARIO: Transportation by diesel-fueled trucks

Total amount of waste transportation by "Diesel" fueled trucks 2177 Tonnes/month Total diesel fuel consumption for transportation 3,100 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 3.84 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste Direct GHG emissions from transportation 3.84 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 8354.75 kg of CO2-eq/month

Total amount of mix waste landfilling 1709.1 tonnes/month Total amoung of diesel fuel use for 212 operation of machineries at the landfill L/month Managed (has landfill Type of landfill in your municipality cover and liner)

Compostion of landfilling waste

Component Percentage (%) Food waste 35.98 Garden waste 15.60 Plastics 3.21 Paper 2.13 Textile 5.18 Leather/rubber 1.65 Glass 1.70 Metal 0.68 Hazardous waste 0.16 Others 33.71 Total 100.00 Results Emission of CH4 from organic waste landfilling 30.07 kg of CH4/tonne kg of CO2- Direct GHG emission from mixed waste eq/tonne of mix landfilling/open dumping 631.76 waste Total GHG emission from landfilling per kg of CO2- month 1079742.10 eq/month Total amount of food waste use for composting 138 Tonnes /month Total amount of garden waste use for composting 138 Tonnes /month Total amoung of fossil-fuel use for operational activities 20 L/month Total amount of compost production 138 Tonnes/month

6

Appendix 8.

Percentage of compost use for the agricultural and gardening purposes 100 %

Results GHG emissions from operational kg of CO2-eq/tonne of activities 0.20 waste GHG emissions from waste kg of CO2-eq/tonne of degradation 177.00 waste Direct GHG emissions from kg of CO2-eq/tonne of composting 177.20 waste

Avoided GHG emissions from chemical fertilizer kg of CO2-eq/tonne of production 1075.65 waste Avoided GHG emissions from organic waste kg of CO2-eq/tonne of landfilling 1041.25 waste Net GHG emissions from composting (life cycle kg of CO2-eq/tonne of perspective) -1939.71 organic waste

Total GHG emission from composting per kg of CO2- <<

Total GHG reduction from recycling per month -251,257.51 kg of CO2-eq/month <<

7

Appendix 9.

Estimation of Greenhouse Gas Emission La Trinidad Subproject APPENDIX 9

1

Appendix 9.

APPENDIX 9: ESTIMATION OF GREENHOUSE GAS EMISSION MALAY/BORACAY SUBPROJECT

Using the simulation developed by the Institute for Global Environmental Strategies (IGES) for solid waste management options, the GHG emissions with and without the proposed solid waste management project was quantified. The simulation was based on the IPCC 2006 guidelines which was adapted to quantify GHG emissions from different phases of waste management. The greenhouse gas effect is measured in terms of carbon dioxide equivalents (CO2-eq). The calculation covers different aspects of solid waste management practices in Malay such as transportation and collection of wastes, mixed waste landfilling, composting, recycling, waste-to-energy and open burning. For purposes of the GHG calculation, IGES uses the term “incineration” to also refer to waste-to-energy technologies that contribute to GHG mitigation and energy recovery. While incineration process releases a significant amount of CO2 into the atmosphere and thus contributes to the greenhouse effect, the IPCC guidelines recommended only the climate-relevant CO2 emissions from the combustion of fossil based waste for the estimation of GHG emissions.1

Under the existing scenario, Malay and Boracay generates 1,826 tons per month of solid waste. Malay’s waste collection efficiency is 60% (32 tons/month) whereas collection efficiency in Boracay is at 94% (1,576 tons/month). The municipality uses an average of 10 trucks which makes two trips per day to transport recyclable wastes to MRFs and residual wastes to the dumpsite. Food waste constitute about 33.1% of the total waste, followed by plastics (21.4%); glass (8.3%); wood (7.0%); paper/cardboard (7.0%); garden and park waste (6.2%); nappies or disposable diapers (3.8%); textiles (3.2%); metals (2.2%); aluminum (0.2%); mineral waste (0.2%); and residuals (4.5%). Segregated waste collection is enforced in the municipality and is practiced in nearly all barangays in Malay. Dry materials composed of paper/cardboard, plastics, glass, metals, and aluminum is segregated at the MRFs while the food waste undergo composting. Residual wastes that accumulate at Boracay recycling centers are also collected and disposed at the existing controlled dumpsite/landfill. Overall, about 83% of waste is disposed at the controlled dumpsite/landfill in Malay, 2% is composted, 4% is recovered for recycling, and 11% is burned by households.

Using these information gathered during the Waste Analysis and Characterization Survey (WACS) and from the social survey of stakeholders, the amount of waste transported, composted, and open burned were determined. Based on the simulation, the current solid waste management practices in the municipality directly contribute 1,082,391 kg CO2-eq/monthly managed waste. Indirect GHG savings primarily from composting and waste recycling practices was computed as 231,790 kg CO2-eq/month. In terms of open burning of wastes, the GHG contribution amounts to 165 kg CO2- eq/month of waste. Overall, the GHG emissions per month of the current solid waste management system results to a net GHG emission of 850,601 kg CO2-eq/monthly managed waste.

With the proposed project, it is expected that waste collection in Malay will increase to 75% in Malay and 100% in Boracay. The existing dumpsite will be closed and an upgraded sanitary landfill will be constructed. In addition, the MRF operation will be improved and a waste-to-energy (WTE) facility will be constructed, operated and

1 IGES User Manual for Simulation, Version II, 01 October 2013

2

Appendix 9. maintained by 2016. Of the amount of waste recovered, food wastes and garden and park waste will undergo composting while the recyclables will be segregated further at the MRFs. When the WTE starts operation in 2016, the accumulated residual waste amounting to about 872 tons/month from the MRFs in Manoc-Manoc and Balabag and from landfill mining, which are primarily containing fines and ash, will be used as refuse- derived fuel for the WTE. Therefore, total waste generation in 2016 would amount to 2,964 tons/month because of the processing of the additional accumulated wastes from landfill mining and the residual wastes at the existing MRFs.

Since there are limitations in the use of the IGES tool for WTE processes, the GHG estimates for the future WTE activity used the continuous fluidized bed technology which is the closest technology to the proposed gasification process.2

With these considerations during project implementation, the GHG emission with the proposed project is calculated as 2,296,864 kg CO2-eq/month. The indirect GHG savings from the project is 1,041,024 kg CO2-eq/month. The resulting net GHG emissions with the proposed project results to GHG savings of -930,285 kg CO2- eq/monthly managed waste, primarily brought about by the managed landfilling, composting, recycling, and WTE activities.

Comparing the existing situation and the scenario with the proposed project, the avoided direct emissions of GHG because of the project is calculated as 2,012,676 kg CO2- eq/month. Table 1 presents the summary of the GHG emissions with and without the project.

Table 1: GHG Emissions With and Without the Project Existing SWM System With the Project Direct Indirect Direct Indirect Activity Net GHG Net GHG Unit GHG GHG GHG GHG Emissions Emissions Emissions Savings Emissions Savings Transportation 2 0 2 1 0 1 kg CO2-eq/ton of waste Landfilling of 639 0 639 538 0 538 kg CO2-eq/ton of mixed municipal mix waste solid waste Composting 177 1,716 -1,539 177 2,060 -1,883 kg CO2-eq/ton of organic waste Recycling 1,084 2,460 -1,376 1,084 2,460 -1,376 kg CO2-eq/ton of mixed recyclables Waste-to-Energy 0 0 0 796 144 -326 kg CO2-eq/ton of WTE waste Open burning 165 0 165 0 0 0 kg CO2-eq/ton of open burned waste GHG reduction 593 127 466 775 351 -314 kg CO2-eq/ton of from the whole collected waste

2 The IGES tool simulates the GHG emission from “incineration” processes from (i) continuous stocker, (2) continuous fluidized bed, (3) semi-continuous stocker, and (4) semi-continuous fluidized bed.

3

Appendix 9.

Existing SWM System With the Project Direct Indirect Direct Indirect Activity Net GHG Net GHG Unit GHG GHG GHG GHG Emissions Emissions Emissions Savings Emissions Savings system Total GHG 1,082,391 231,791 850,601 2,296,864 1,041,024 -930,285 kg CO2- emissions per eq/monthly month managed waste

4

Appendix 9.

Annex GHG Calculation

EXISTING CONDITION: Transportation by diesel-fueled trucks

Total amount of waste transportation by "Diesel" fueled trucks 1608 Tonnes/month Total diesel fuel consumption for transportation 933 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 1.56 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste

Direct GHG emissions from transportation 1.56 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 2514.51 kg of CO2-eq/month

Total amount of mix waste landfilling 1510.6 tonnes/month Total amount of diesel fuel use for operation of machineries at the landfill 100 L/month Select the type of landfill in your municipality Uncategorized

Compostion of landfilling waste

Component Percentage (%) Food waste 30.93 Garden waste 2.54 Plastics 23.50 Paper 24.26 Textile 1.53 Leather/rubber 0.54 Glass 8.40 Metal 2.36 Hazardous waste 0.22 Others 5.72 Total 100.00

Results

Emission of CH4 from organic waste landfilling 30.44 kg of CH4/tonne Direct GHG emission from mixed waste landfilling/open dumping 639.36 kg of CO2-eq/tonne of mix waste Total GHG emission from landfilling per month 965822.83 kg of CO2-eq/month

Total amount of food waste use for composting 37 Tonnes /month Total amount of garden waste use for composting 2 Tonnes /month

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Appendix 9.

Total amount of compost production 19.5 Tonnes /month Percentage of compost use for agricultural and gardening purposes 100 % Results

GHG emissions from waste degradation 177.00 kg of CO2-eq/tonne of waste

Direct GHG emissions from composting 177.00 kg of CO2-eq/tonne of waste

Avoided GHG emission sfrom chemical fertilier production 1075.65 kg of CO2-eq/tonne of waste

Avoided GHG emissions from organic waste landfilling 640.77 kg of CO2-eq/tonne of waste

Net GHG emissions from composting (life cycle perspective) -1539.42 kg of CO2-eq/tonne of organic waste Total GHG emission from composting per month -60,037.47 kg of CO2-eq/month <<

Total amount of seperated recyclables 67 tonnes/month Compostion of recyclables Percentage Type of recyclable (%) Paper 33.00 Plastic 15.00 Aluminium 3.00 Steel 10.00 Glass 39.00 Total 100.00 kg of CO2-eq/tonne of mixed Direct GHG emissions from recycling 1084.01 recyclables kg of CO2-eq/tonne of mixed Avoided GHG emissions from recycling 2460.45 recyclables Net GHG emissions from recycling (life cycle kg of CO2-eq/tonne of mixed perspective) -1376.44 recyclables <<

Total GHG reduction from recycling per month -92,221.47 kg of CO2-eq/month

Total amount of waste open burned 209.73 tonnes/month

Compostion of waste of open burning Component Percentage (%) Food waste 0.00 Garden waste 70.00 Plastics 10.00 Paper 17.00 Textile 3.00 Others 0.00 Total 100.00

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Appendix 9.

Fossil-based CO2 emissions from open burning 164.60 kg of CO2-eq/tonne of open burned waste Total GHG emission from open burning per month 34,522.40 kg of CO2-eq/month

WITH PROJECT SCENARIO: Transportation by diesel-fueled trucks

Total amount of waste transportation by "Diesel" fueled trucks 2685 Tonnes/month Total diesel fuel consumption for transportation 620 L/month Results

GHG emissions from waste transportation by diesel-fueled trucks 0.62 kg CO2-eq/tonne of waste

GHG emissions from waste transportation by natural gas-fueled trucks 0 kg CO2-eq/tonne of waste Direct GHG emissions from transportation 062 kg of CO2-eq/tonne of waste Total GHG emission from transportation per month 1670.95 kg of CO2-eq/month

Total amount of mix waste landfilling 428.1 tonnes/month Total amount of diesel fuel use for operation of machineries at the landfill 150 L/month Managed (has landfill cover Type of landfill in your municipality and liner)

Compostion of landfilling waste

Component Percentage (%) Food waste 15.20 Garden waste 6.10 Plastics 15.30 Paper 13.10 Textile 1.20 Leather/rubber 0.30 Glass 6.30 Metal 2.20 Hazardous waste 0.10 Others 40.2 Total 100.00 Results Emission of CH4 from organic waste landfilling 25.57 kg of CH4/tonne kg of CO2- Direct GHG emission from mixed waste eq/tonne of mix landfilling/open dumping 537.92 waste Total GHG emission from landfilling per kg of CO2- month 230291.22 eq/month Total amount of food waste use for composting 30 Tonnes /month Total amount of garden waste use for composting 13.33 Tonnes /month

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Appendix 9.

Total amount of compost production 21.67 Tonnes/month Percentage of compost use for the agricultural and gardening purposes 100 %

Results GHG emissions from waste kg of CO2-eq/tonne of degradation 177.00 waste Direct GHG emissions from kg of CO2-eq/tonne of composting 177.00 waste

Avoided GHG emissions from chemical fertilizer kg of CO2-eq/tonne of production 1075.90 waste Avoided GHG emissions from organic waste kg of CO2-eq/tonne of landfilling 984.02 waste Net GHG emissions from composting (life cycle kg of CO2-eq/tonne of perspective) -1882.92 organic waste

Total GHG emission from composting per kg of CO2- <<

Total GHG reduction from recycling per month -351,680.38 kg of CO2-eq/month

Select the type of incineration Continuoues-fluidised bed

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Appendix 9.

tonnes/mont Enter the total amount of waste incinerated 2236.79 h Total amount of fossil fuel use for the operation activities 200 L/month kWh/month Total amont of grid electricity use for the operation activities 100000

Please enter the compostion of incinerating waste Percentag Component e (%) Food waste 30.10 Garden waste 12.54 Plastics 27.00 Paper 22.30 Textile 2.00 Leather/rubber 1.00 Glass 1.00 Metal 0.00 Hazardous waste 0.00 Others 4.06 Total 100.00

Data input on energy recovery Both Heat Select the type of energy recovered from incineration and Electricity kWh/month Total amount of electricity produced 745,071 Percentage of electricity use for onsite operation activities 13.5 % MJ/month Total amount of heat recovered 7933.333 Percentage of recovered heat use for onsite operation activities 60 % Select the type of fossil fuel that replace by the recovered heat Diesel Outputs kWh/tonne Net electricity production 288.14 MJ/tonne Net heat production 1.42

Results kg of CO2-eq/tonne of GHG emissions from operational activities 22.64 combusted waste kg of CO2-eq/tonne of GHG emissions from the combustion of waste 773.26 combusted waste kg of CO2-eq/tonne of Direct fossil-based GHG emissions from incineration 795.90 combusted waste

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Appendix 9.

Avoided CO2 emission from kg of CO2-eq/tonne of conventional electricity production 144.36 combusted waste Avoided CO2 emission from convential fuel usage for heat kg of CO2-eq/tonne of production 0.11 combusted waste Avoided GHG emissions from organic waste kg of CO2-eq/tonne of landfilling 977.35 combusted waste

Net fossil based GHG emissions from incineration (life kg of CO2-eq/tonne of cycle perspective) -325.91 incinerated waste <<

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project

Annexes: 1. LGU Selection Matrix for PSWMSP 2. LGU Selection Procedure for PSWMSP 3. Proposed Highly Urbanized Cities (HUCs) for PSWMSP and Mission reports 3.1 Baquio Mission Report 3.2 Dumaguete Mission Report 3.3 General Santos Mission Report 3.4 Santa Rosa Mission Report 3.5 Zambonga Proposal 4. List of Open and Controlled Dumpsites 5. Existing Sanitary Landfills 6. Template for MOU between DENR and LGU

Annex .

LGU Selection Matrix ANNEX 1

LGU Selection Matrix: 1 2 3 4 Annex . 5 6 Commitment to Assessment of actual Is the FS doable, Does the LGU have LGU included in PPTA Consultants Region LGU implement RA 9003 and suitability as a model within time frame ENRO willing to recommendations of Ranking and take on investment for PSWMP and resources support the FS Pre PPTA and/or ADB Comment project and/or DENR CAR La 1. For over 10 years, La Aims to establish a Doable: Land availability is Included in Pre-PPTA Selected/EMB Trinidad Trinidad has tried, albeit sustainable SWM system: LGU has acceptable critical, indigenous long list of LGUs. PPTA support without success, to solve . Rehab. of the compost site for SLF and ERF peoples ancestral Mayor’s efforts to

SWM issues and to comply . review of MRF processes EMB region CAR also rights a consideration. establish sustainable with RA 9003 . ERF through PPP highly supportive ENRO not established SWM system in La 2. Mayor asked help from . Rehab. and extension 10-Year SWM Plan in as an office, but there Trinidad DENR/ADB. of existing landfill 2004 is an ENR Officer 3. DENR has received a LOI . capacity development Junk Shops are from La Trinidad training and public benefitting at the cost 4. Population is 100,000 awareness programs of the barangays Region 3 Baler 1. Clustering suggestions Province committed P5m FS doable within ENRO well established Not included in Pre- Mayor is strongly in Auroa previously failed due to towards the cluster PPTA resources. Willing to support FS. PPTA or ADB favor of participating in political disagreement. Land is available Investment plan recommendations. PSWMSP. Baler is 2.Total potential population includes SLF and willing to take up a to be served is 34,500 Energy Recovery loan 3. Willingness to borrow Facility (ERF) Region Sta. 1. With SWMP approved Wastes collection is FS is not doable: no LGU has financial Project is not vulnerable Sta. Rosa Laguna 4a Rosa by NSWMC and City contracted site available in City capability and to results of coming represents Council SLF is out of city for SW disposal. expressed willingness election CALABARZON 2. With Ordinances and an City spends P54M. Discussion with Silang to borrow to implement wealthiest cities. Environmental Code in The city has committed for a site is ongoing. SWM program. Support of SWM to comply with RA 9003. Several studies related 3. Has separate CENRO LGU is willing to to SWM available from Office managing SWM participate in PSWMSP previous studies. Region 6 Boracay 1. Mayor is strongly in Boragay is a major Doable. Strong need for MENRO established Included in Pre-PPTA/ Selected by favor of participating in tourism center in the technologies on bio- as plantilla position. ADB recommendations. FASPO/EMB PPTA. Philippines and urgency waste and machinery for Willing to support FS. Facilitating of FS/Master PPTA 2. Strong need for to improve its SWM MRF, barges, collectors, Current SWM system Plan preparation in 2008. recommendation. technology. facilities is pivotal. compactors, and basically complies The FS was used by the Mayor is strongly in 3.Total potential population It could be a model for including capacity with RA 2009. LGU to apply for a loan favor of participating to be served is 38,000 and other tourism center. building program to from the ADB of DBP to in PSWMSP about 4000 tourist per day. reduce packaging waste finance the construction in the island etc. of Phase 1-A of the SLF. Region 6 Janiuay 1. Cluster agreement Ideal. Shows novel Access good by air. ENRO established as Recommended to be Selected by EMB documented with 9 LGUs in arrangements for non- Highly doable. LGU has plantilla position from considered by Pre Clearly the highest the District with Janiuay as political agreements acceptable site for 2004, and ENRO well PPTA. ranking LGU for a SWM focus, formed under SEC. either SLF or ERF. trained in UP. SWM program cluster arrangement, association under SEC to The cluster has potential Cluster committed to Ordinance applied implementation not commitment assured. minimize political disruption. to expand beyond the 9 support FS. Region 6 with MRFs at vulnerable to results of Potential for expansion 2. Transparent Agreement LGUs for alternative also highly supportive barangay level. coming election and alternative techn. 3. Total population to be technologies. with benefits from LGU and EMB highly Benefit from well served is 400,000+ SWM4LGUs experience supportive to FS established REC/ETC from GIZ. survey requirements Region 7 Dumaguete 1. No documents of Present very poor No land available, no ENRO established. Not included in Pre- No land>>landfill agreement and no LGU implementation of SWM. solution proposed by Willing to support FS for PPTA or ADB mining and WTE participating unless Disposal site is an open LGU that can be ERF project recommendations. Poor commitments to alternative technology. dump near river. accommodated in FS Current status of SWM comply RA 9003. 2. Total population to be City has been warned by within timescale very poor. Regional served is 200,000 approx. EMB for poor SWM. DENR warning of fines. CAR Baguio 1. With SWMP submitted Equipment and plant to No identified site SWM. LGU has the capability SWM program Baguio’s landfill has to NSWMC and approved handle of bio- waste FS not doable within to borrow for implementation not been closed since its by City Council Segregated collection PPTA time frame implementation of SWM vulnerable to results of partial collapsed in 2. With ordinances and second sorting at Presently in negotiation program coming election 2011. Its extension is supporting SWM. transfer station with a private corp. for unrealistic. Urgent 3. CENRO office not Disposed site out of city. wastes to energy option actions are needed. managing SWM but GSO. LGU is fully committed to which can no longer be (Baguio has a WTE SWM improvement. included in PPTA FS. concept with PPP) CARAGA Siargao Del Carmen has a written Integrated Solid Waste Doable: According to Mayor ADB recommendation Selected by EMB commitment to avail Management proposal LGU has reserved LGU’s SWM technical to review during the Waste generation is funding for its SWM has been submitted to initially a two hectare and institutional pre-PPTA low, but using also development. DENR and ADB site for SLF. LGU can capacity is weak. waste a The LGU of Carmen which Del Carmen is eying a acquire additional land Since the whole small - scale CHP is willing to host the landfill. small scale ERF with a for 20 years SWM Siargao island is plant could be Total Population 18000 PPP investment needs. protected, Mayor implemented. Eco tourism area According to Mayor major concern is Income from energy there are no proper SWM. LGU is sale could be used to resettlement or IP willing to fully comply pay loan payment. issues. with RA 2009.

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP

Selection of LGU to Participate in the Investment Program on the Philippine SWM Project ANNEX 2

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP SELECTION OF LGU TO PARTICIPATE IN THE INVESTMENT PROGRAM ON THE PHILIPPINE SOLID WASTE MANAGEMENT PROJECT

A. Proponent Eligibility

1. Eligibility and Selection of LGUs 1. The Final Report represents the Investment Program on the Philippine Solid Waste Management Project (PSWMSP), which is available for all provinces, cities and municipalities. Under the present SWM sector project, the National Government will take the loan from ADB and use it to fund SWM projects selected LGUs. The selected LGUs will receive substantial portion of grant from NG for all basic SWM infrastructure development. To ensure alignment with the objective to improve the quality, coverage, and reliability of SWM services and infrastructure improvement in the participating LGUs. Financial assistance will focus on SWM improvement with or/and without PPP arrangements. 2. Criteria for LGUs selection will be based primarily on (a) urgency and well-defined investment needs for solid waste management improvement; (b) financial management, commitment to establish a specific account for SWM and governance; (c) inclusion of serving low-income communities; (d) project preparedness such as approved Feasibility Study or/and approved or conditionally approved SWM plan; (e) potential for establishing regional SWM facility; and (f) opportunities for private sector participation. Participating provinces, cities and municipalities shall meet the following eligibility criteria: a) Approved and conditionally approved Solid Waste Management Plan b) Letter of Intent (LOI) from the Mayor’s Office or Governors Office expressing interest to participate in the Investment Program of PSWMS for the identified subproject; c) Resolution from the Sangunyanbayan confirming the need for the proposed subproject and authorizing the Mayor enter into PSWMS project with DENR, and incur obligations and expenses relating to the subproject such as resettlement, IP or waste pickers’ permanent lost of working opportunities, taxes and duties; 2. Private Proponent Eligibility for PPP 3. Due to substantial investments in SWM, specifically for WTE technology in HUCs, private-sector involvement is necessary. Technology providers and financing Institution's partnership with major cities and/or Waste Management operators are necessary to enhance economic activities, provide job opportunities and contribute to much-needed energy production. To increase private sector involvement following financing arrangements has been set. Private proponent is eligible to borrow from the National Government Banks (DBP or Landbank) or private banks.... to participate in WTE components of the Investment Program of PSWMSP. These sub-projects will be endorsed by DENR/LGU as PPP arrangements to support to SWM infrastructure and service development. Private proponent shall meet the following eligibility criteria: a) Letter of Intent from the Managing Director or President of the private proponent, endorsed by the Board of Directors expressing: (i) interest to participate in the Investment Program of PSWMS for the identified WTE subproject; and (ii) commitment to provide counterpart funding in addition to the amount being

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP borrowed to support the development, implementation, completion and operation of the subproject as covered by the PPP agreement; b) Letter from the Mayor’s Office confirming that the selection of the private proponent for the proposed subproject will be taken in cooperation with DENR/DOST in accordance with applicable laws and guidelines such as the Joint-venture, BOT-Law, rules and regulations related to WTE, and among others; c) Certifications form DENR/EMB technology verifications and copy of the resolution from the Legislative Council/ the Sangunyanbayan confirming the need for the proposed subproject and authorizing the Mayor’s Office to enter into contract with the said private proponent, and including obligations and expenses relating to the subproject; d) A copy of the signed public-private-partnership (PPP) agreement among the concerned parties; and Certification from the proponent that it has no adverse reports from its banks and suppliers during the past three years. B. Subproject Eligibility Criteria

1. Subproject Prequalification Requirements 4. Detailed screening will be undertaken to ensure that the proposal is consistent with the development objective of the PSWMS project. The following are the eligibility criteria for proposed subprojects: a) Resolution from the Local Development Council confirming that the subproject is consistent with the Comprehensive Development Plan (CDP) and the Comprehensive Land Use Plan (CLUP) of the LGU; b) Inclusion of the subproject in the approved planning document of the LGU such as the City Development Strategy, the Medium Term Local Development Plan; and Annual Investment Plan, among others; and c) The proposal/Feasibility Study should: (a)consist of expansion or/and improvement of the service level of SWM; and (b) contribute to the economic growth and well benign of the citizens in participating LGU d) Proposal/Feasibility Study should determinate the project’s preliminary environmental, resettlement and social and poverty impacts e) Proponent shall present an applicable, proof of ownership, such as titles and deeds, over the proposed subproject site. 2. Eligible Sub-projects 5. Criteria for local government selection will be based primarily on (a) demand for improved solid waste management; (b) fiscal capacity, financial management, commitment to establish a specific account for SWM, and governance; (c) inclusion of serving low-income communities; (d) well-defined investment needs; (e) project preparedness such as approved Feasibility Study or/and new SWM plan; (f) potential for establishing regional SWM facility; and (g) opportunities for private sector participation. 3. Sub-projects’ Scope 6. In preparing investment programs for each of the SPARs consider (a) reduce, reuse, recycle (3R’s); (b) material recovery facilities (MRFs); (c) composting; (d) collection, transport

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP and logistics arrangements; (e) rehabilitation and/or closure of open dumpsites; (f) emission reduction and carbon credits from WTE (bio-gas, landfill gas and from thermal treatment); (g) landfill mining; (h) construction or rehabilitation of new sanitary landfills, particularly regional landfills serving more than one local government; (i) and other related investment leading to improved service and management quality, such as compliance with financial, legal and environment requirements. C. Subproject Appraisal

7. Subproject appraisal will be undertaken by the PMO and the ADB based on feasibility studies endorsed by the DENR. Detailed Engineering Design Requirements ensures that there is a common set of guidelines for evaluating subproject proposals. 8. Where LGU or (private proponent for WTE) has already completed a feasibility study, the applicant can directly submit application to the DENR/FASPO and PMO review. The application shall consist of an executive summary of the project and the supporting prefeasibility study. Among the technical considerations social, environmental, financial and economical impacts will be assessed during the appraisal. a) Least cost analysis. The design of the subproject should confirm a cost- effective project implementation by undertaken comparative alternative designs. The subproject can be implemented by LGU or LGU through PPP arrangements. In both cases the project viability will be assessed in the review of the technical aspect. b) Social Impact. Consultations with affected stakeholders will be done according to the current GoP/ADB practices to establish the need and support for the subproject. Necessary documentation will be secured. c) Demand Analysis. Demand and supply analysis of WTE will be conducted to establish the market for the subproject. The analysis will cover the subproject impacts area which could extend outside the political jurisdiction of the LGU. d) Financial and Economic Analysis. Financial and economic analysis will be undertaken for all subprojects, while all sub- projects are revenue-generating. The project viability will be assessed be calculating the Net Present Value (NPV) and the Internal Rate of Return (IRR). e) Environmental Impacts. Initial Environmental Examination (IEE) will be conducted to assess project environmental impacts and further to establish environmental monitoring program. The Environmental Compliance Certificate (ECC) of the Certificate of Non-Coverage (CNC) should be secured from the Department of the Environment and Natural Resources (DENR) as a pre- requisite to subproject approval. WTE projects require technology verification from DOST and EMB D. Subproject Approval

9. EMB/DENR with concurrence of ADB will approve the Sub-projects. Based on the four SWM sub-projects’ costing both agencies have established levels of approval which will also be applied to the proposed HUC’s SWM sub-projects. A standard format for PPP arrangements with the private proponent will be developed as part of the Investment Program Operations Manual. The private proponent’s Loan Agreement with GOP banks or private will be the responsibility of participating bank.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP i. Subproject Procurement and Financial Management

10. The EMB/PMO will provide technical assistance to the LGUs on ADB procurement guidelines to facilitate contracting for the approved subprojects. Financial management assistance, on the other hand, will be provided by PMO/ADB, in coordination with the DENR, to enable the disbursement of funds in accordance with ADB guidelines. 11. The Project Management Office at the EMB shall coordinate with the Foreign Assisted and Special Projects Office (FASPO) and the Financial Management Service (FMS) of the DENR in administering the Project funds and accounts. FASPO, through its Project Accounts Management Division (PAMD), in coordination with the PMO shall be responsible for the preparation and submission of withdrawal applications and statement of expenditures (SOEs) to ADB. FMS, in coordination with the PMO and FASPO, shall be responsible for preparation and submission of the Project’s annual budget proposals and requests for release of allotment advices and notices of cash allocations to the Department of Budget and Management. ii. Subproject Implementation and Monitoring

12. Project performance monitoring. The PMO will be responsible for all aspects of monitoring and evaluation, including performance against overall Project milestone, safeguards monitoring and financial commitments. Physical and financial progress report on Project achievements will be prepared quarterly and summarized annually. 13. The Project Performance Monitoring System (PPMS) will be prepared and presented to the DENR/EMP within three (3) months after the start of the PIMS consulting assignment. The PPMS involves the use of projected targets, performance indicators, assumptions and risks in the DMF. The PMO will undertake monitoring activities on an annual basis, adopting the same indicators and parameters and report its findings and recommendations to the DENR/EMP and ADB. A comprehensive completion survey will also be conducted and results of which will be included in the Project Completion Report. 14. Compliance monitoring. ADB will undertake regular review mission to assess the status of compliance of the Project and the EA with the loan covenants related to policy, legal, economic, financial, environmental and institutional elements. Non-compliance issues identified during the ADB review missions will be specified in the quarterly progress reports together with the recommended courses of action. E. Selection of the Four Pilot LGUs for Philippine SWM Sector Project

15. The primary consideration in the selection of LGUs who can avail of the assistance from the next phase of the project is the framework used in the proposed road. In brief, the 1635 LGUs have been classified into 3 Tiers based on waste collection. 16. Tier 1 includes 52 LGUs collecting waste within a range greater than or equal to 120 tpd assuming a collection range greater than or equal to 87%. Spatially, this includes the seven (7) major cities in southern Philippines namely Iloilo, Bacolod, Mandaue, Cebu, , Zamboanga and Davao, the major cities in Calabarzon namely Bacoor, Calamba, Dasmarinas, San Jose del Monte and Antipolo and the populous cities of NCR namely Muntinglupa, Makati, Marikina, Pasig, Valenzuela, Paranaque, Las Pinas, Taguig, Manila, Caloocan and Quezon City. 17. Tier 2 includes 555 LGUs collecting waste within a range from 9 to 120 tpd assuming a collection range of 60 to 87%.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP 18. Tier 3 includes 1,028 LGUs collecting a waste within a range of 1 to 6 tpd assuming a range of 15 to 45 % collection. 19. The 555 LGUs under Tier 2 have been targeted in the next phase of the project. The 11 LGUs which have originally been selected by the PPTA Team were also considered as targets for assistance in the Philippine Solid Waste Management Sector Project (Table 1).

Table 1: LGUs originally shortlisted by the PPTA Team for the Pilot Study No. LGU Feature Region 1 Baguio Urban area with large population and potential for clustering CAR 2 Dumaguete City Urban area with potential for clustering 7 3 Aurora - Baler Small LGU cluster 3 4 Tagaytay Urban area with potential for clustering 4A 5 Albuquerque Cluster of small towns and 1 big urban area 7 6 Carmen - Dagohoy Small LGU cluster 7 7 Calapan - Naujan Small LGU cluster 4B 8 Talavera Medium LGU with potential for clustering 3 9 Camiguin Small cluster of LGUs in an island 10 10 Bayambang Small town with potential for clustering 1 11 Lapu-Lapu Urban area where technology will be employed 7

20. The following criteria were successively applied to the above mentioned LGUs. 1. Waste Collection ≥ 50 tpd. It has been established in the PPTA study that a minimum collection of 50 tpd is needed to sustain the operation of a waste to energy facility. This criterion will also facilitate selection of LGUs that can stand alone or serve as the core of a cluster of contiguous towns or cities. When applied to the Tier 2 LGUs (555) and the PPTA shortlist (11), the number of potential recipients or qualifier to the PSMMSP was reduced to 82. 2. LGUs with existing disposal facility or located nearby major disposal sites. The presence or proximity will make the proposed project redundant to these facilities. There are 11 LGUs satisfying this criterion. When applied to the remaining 82, the number of LGUs was reduced to 71. 3. LGUs with planned WTE plants. Based on available information, WTE plants are proposed to be established in Lapu-Lapu City, Naga City in and Angeles City. This reduces the LGUs to 68. 21. The remaining 68 LGUs were grouped based on proximity or similarity in province or region to determine if the proposed project can benefit not only the selected city or town but also neighboring large waste generators. This resulted in the placement of the candidate LGUs into 25 provinces. 22. The aggregate waste generation of each province or region was calculated and rated from highest to lowest. The top 10 waste generators and waste collectors correspond to the short listed cluster or LGUs. The choice was based on the premise that these clusters have the greater potential to pollute the environment if their waste is not properly managed. Table 2 presents the LGU selection matrix.

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP Table 2: LGU Selection Matrix Existing or Proposed Number Aggregate Ranking Based Collection Potential No. LGU Region Nearby WTE of collection on Aggregate (tpd) Cluster SLF Plant Clusters (tpd) Collection 1 1 52 2 San Carlos City 1 57 170 11 Pangasinan 1 3 City 1 61 4 Urdaneta 1 63 1 5 Santiago 2 51 2 107 17 6 2 56 7 Hagonoy 3 51 8 Bocaue 3 53 12 3 61 14 3 66 15 3 71 Bulacan 3 582 3 17 3 77 2 18 3 94 23 Santa Maria 3 125 54 San Miguel 3 61 9 Arayat 3 54 10 Concepcion 3 55 11 Mexico 3 60 13 3 62 Pampanga 4 534 5 16 3 73 21 San Fernando 3 110 26 Angeles City 3 188 1 22 3 120 19 3 100 5 100 18 20 Olongapo City 3 102 3 Zambales 24 City of 3 127 4 Tarlac 25 Taytay 3 156 58 Angono 4A 58 65 Rodriguez 4A 103 5 Rizal 6 594 2 66 San Mateo 4A 105 69 4A 137 70 4A 138 27 Silang 4 98 55 4A 51 57 Rosario 4A 57 59 4A 68 Cavite 7 660 1 61 Gen. Mariano 4A 76 62 City 4A 87 64 4A 95 67 4A 128 28 4A 106 29 San Pablo City 4A 123 6 68 San Pedro 4A 136 Laguna 8 561 4 72 Biñan City 4A 158 75 Santa Rosa 4A 174 2 30 Naga City 5 59 3 Cam Sur 31 Legaspi City 5 71 7 32 Dumagete 6 54 9 54 25 33 San Carlos City 6 61 34 Talisay 6 66 Negros 10 300 7 35 Cadiz City 6 67 Occidental 36 6 78 37 Lapu-Lapu 6 133 4 Cebu 38 Toledo City 7 54 Cebu 11 54 24 39 City 8 64 12 137 13

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP 41 Tacloban City 8 73 Leyte 40 City 8 71 8 42 City 9 86 Zamboanga del 13 86 20 43 City 10 53 14 53 26 46 Iligan City 10 110 Lanao del 15 110 16 44 10 55 Bukidnon 16 128 15 45 Valencia City 10 73 47 Malita 11 55 17 55 23 48 Monkayo 11 57 Compostela 18 57 22 49 City 11 65 19 65 21 50 City of 11 88 Davao del 20 88 19 51 General Santos 12 200 5 South 21 200 9 52 12 58 North Cotabato 22 133 14 53 Cotobato City 12 75 56 4A 55 Quezon 23 142 12 63 City 4A 87 60 Tanauan City 4A 70 73 4A 161 24 231 8 74 Lipa City 4A 162 76 Puerto 4B 99 9 Palawan 77 Baguio City CAR 174 6 Benguet 25 174 10 78 City Caraga 143 10 del 71 Navotas NCR 142 11 79 San Juan NCR 62 80 Pasay City NCR 150 Metro Manila 26 420 6 81 City of NCR 157 82 Malabon NCR 193 23. Based on ranking, the top 10 LGU clusters are as follows. It is interesting to note that 5 out the 10 provinces from Tier 2 are from CALABARZON. This is understandable as this economic region plus NCR, generate the bulk of the waste in the Philippines. Table 3: Clusters Province Clusters Region 1. Cavite 4A 2. Rizal 4A 3. Bulacan 4A 4. Laguna 4A 5. Pampanga 3 6. Metro Manila NCR 7. 6 8. Batangas 4A 9. Benguet CAR 10. Pangasinan 1 24. In terms of regional impact to the environment and neighboring towns and provinces, the top five provinces are as follows: Table 3: Recommended List of Province Clusters Province Clusters Impacts on Environment 1. Cavite Impact on dwindling groundwater resources used for domestic and industrial purposes 2. Laguna Impact on Laguna de Bay and dwindling groundwater resources used for domestic and industrial purposes

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 2 Selection Procedure of LGUs for PSWNSP 3. Benguet Impact on overcrowded mountain city with limited groundwater resources and living space 4. Pangasinan Impact on coastal waters and shallow groundwater resources 5. Metro Manila Impact on overcrowded city which is vulnerable to flooding

25. The LGUs within each province can now be considered for the PSWMSP either singly or in cluster. The Tier 1 LGUs are also qualified by virtue of their large waste generation and collection which currently are delivered to dumpsites. Should a larger budget become available, then any interested LGU within Tier 1 can be considered. F. Pre-Selection of HUC for Philippine SWM Sector Project 26. The listing of pre-apprised HUCs is meant to provide well-defined interventions to expedite SWM implementation in selected HUCs. Criteria for HUCs selection is presented in the section Proponent Eligibility. An ultimate objective of these proposed subprojects is to achieve goals of the Investment Program of PSWMSP to improve public health and well-being of citizens of the recipient HCUs. Waste Waste Population Income Waste Disposal 10-year SWM LGU Gen. Gen. Notes 2013 Class Method Plan kg/day/p ton/d Dumaguete City 132,245 3rd 0.4 53 Open Dumpsite Approved 2006 Urgent need to improve SWM Meycauayan 255,911 3rd 0.4 77 Region Trece Martires City 264,770 4th 0.4 79 Manila Bay Region Malolos (Capital) 275,001 3rd 0.4 83 Manila Bay Region Imus City 251,567 - 0.4 101 Manila Bay Region Lucena City (Capital) 253,055 2nd 0.4 101 No Plan Puerto Princesa City 288,956 1st 0.4 116 SLF cat. 4 Return for rev. Interested in PSWMSP OLONGAPO CITY 237,693 2th 0.5 119 SFL cat. 4 Return for rev. FS ready DBP ILIGAN CITY 318,960 1st 0.4 128 Control Dumpsite Conditional Lapu-Lapu City (Opon) 386,925 1st 0.4 155 Control Dumpsite Conditional Navotas 233,988 1st 1 164 Novotas City SLF Conditional Manila Bay Region Lipa City 372,586 1st 0.5 186 Conditional Initial WACS Santa Rosa City 399,367 1st 0.5 200 San Pedro SLF Approved LOI sent to SEC BAGUIO CITY 332,928 1st 0.6 200 Urdaneta NG and Private Several proposal for WTE ANGELES CITY 361,067 1st 0.6 217 Clark SFL Private Sector FS ready DBP Malabon 317,409 1st 0.7 222 Novotas City SLF Conditional Manila Bay Region (Capital) 461,531 1st 0.5 231 Under Construction Private Sector Korean Company WTE Bacoor City 511,343 - 0.5 256 Rizal Provincial SLF Conditional Manila Bay Region BACOLOD CITY 507,185 1st 0.6 304 SLF cat, 4 Conditional Landfill mining & WTE City of Valenzuela 637,364 Spe 0.7 446 Rizal Provincial SLF Conditional RDF production GENERAL SANTOS CITY 749,088 1st 0.6 449 SLF cat. 4 Conditional FS funded by USAID City of Parañaque 646,241 1st 0.7 452 Rizal Provincial SLF Manila Bay Region City of Las Piñas 671,533 1st 0.7 470 Rizal Provincial SLF Evaluation Manila Bay Region (Capital) 889,394 1st 0.6 534 SLF cat.4 Evaluation Private sector, landfill mining 920,049 1st 0.6 552 SLF cat 2 Approved DAVAO CITY 1,610,235 1st 0.6 966 SLF cat. 4 Evaluation FS under USAID Manila 1,404,508 1st 0.7 983 Novotas City SLF Conditional Manila Bay Region Kalookan City 1,697,248 1st 0.7 1,188 Rizal Provincial SLF Manila Bay Region Quezon City 2,737,313 Spe 0.7 1,916 SLF Approved Private sector, landfill mining

Manila Bay Region, funding from NG Pivate sector and local, internationa finacing isntitute invovement Posibble candidates for PSWMSP Recommneded HUC for PSWMSP

9

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 3. Proposed HUCs

Proposed Highly Urbanised Cities (HUCs) for the proposed Philippines Solid Waste Management Sector Project ANNEX 3

PPTA 8115 PIH Proposed Highly Urbanised Cities (HUCs) for the proposed Philippines Solid Waste Management Sector Project Solid waste management fact sheets Baguio Solid waste generation in Baguio is expected to increase in the future due to urban, tourism, and industrial development. Baguio’s dumpsite has been closed since its partial collapse in 2010. Its extension is unrealistic. Currently 130tpd of waste is brought to the Urdaneta SLF by trucks. It has been observed that the current retention wall installation in Baguio does not meet the required safety net against landslide in case of heavy rainfall or seismic events. Several houses are too close to the retention wall. Various studies have been undertaken to identify potential disposaal sites within Baguio City and the adjacent towns of Tuba, , La Trinidad and Sablan. All these studies were beset by the limitations imposed by the mountainous terrain, geological conditions, potential resettlement and environmental issues and landuse conflicts, among others. Proposals for the development of SWM should consider WTE and the purchase of privately owned lands to satisfy siting and environmental requirements and to meet long term SWM solution for Bagio. Baguio dampsiite after trash slide of August Dominion Clean Energy Group (DCEG) has offered Baguio an PPP 27, 2011 proposal for WTE, which has being evaluated by the Investment Coordination Committee. According to proposal Baguio City shall prroovide a minimum of 200 tons/day of residuals to DCEG for the WTE. DCEG will arrange also solid waste collection. For the first 10 years, all the benefits will go to DCEG, but thereafter, Baguio will receive a share of electricity or money. The mayor informed the mission that Baguio City would send an LOI to DENR to join PSWMSP. Key Challenges: . Finance is a key challenge to LGU. . The LGU needs to improve its technological, contracting and negotiation capacities to enter into possible PPP contract in SWM. . Land availability is critical; indigenous peoples’ ancestral rights among other restrict of it. . Negative public perception of SWM is an imminent result from SWM Repairing work of the Retentions Wall experience in Baquio, which hamper any new SWM development efforts. Opportunities: . Rehabilitation of the compost plant and its operation with PPP . Provision of a new decentralized WTE with PPP . Provision of rehabilitation and extension of existing landfill for WTE . Improvement of operation and maintenance of existing assets . Improvement of collection capacity . Training and public awareness programs, including on PPP Initial Investment Costs: . Rehabilitation of Irisan dumpsite for WTE $1.0 million, . Rehabilitation of compost plant $1.2million . WTE $14 million, MRF and Dries $2million,

. Collection improvement: trucks $0.3million and waste bins $0.2million Temporary transfer station at Irisan

Dumpsite in Candau-ay

Dumagete Dumaguete City has issued the City Ordinance 115, series of 1998, otherwise known as the Dumaguete City Ecological Solid Waste Management Ordinance. The ordinance authorized the creation of a City Environment and Natural Resources Officer (CENRO) that is tasked to supervise the SWM functions of the city. In 2006, the city crafted its 10- Year SWM Plan, which currently is being revised as a new 10-year plan. The open dumpsite in Barangay (Brgy.) Candau-ay continues to receive Dumagete Dumpsite about 35 tons of solid waste daily. On 1 November 2008, the villagers of Brgy. Candau-ay unanimously passed a resolution for the closure of the dumpsite effective January 2009. The villagers and their officials cited these reasons: the area is small and densely populated; water, air, and soil pollution; and skin and respiratory diseases afflicting a “growing number of residents.” Although the city had converted the site into a controlled dump in 2000, the increasing volume of waste continuously disposed of into the area has made it difficult to manage the area as a controlled dumpsite. Presently, the area is operating as an open dumpsite. The city has failed to implement the conditions for the closure and rehabilitation of the dumpsite, hence Dumaguete had been ordered by the DENR to close the existing dumpsite since 2005. Dumagete is willing to invest in Energy Recovery Facility (ERF) as a long term SWM solution.

. Municipality has approved SWMP 2006 Waste sorting . Estimated waste generation is 54 tons/day Key Challenges: . The city’s lack of adequate and efficient waste disposal system is a serious concern that requires immediate attention. . The open dumpsite in Barangay Candau-ay beside Banica River has been condemned by many environmental groups, and as a matter of fact has already received a Cease and Desist Order (CDO) from the DENR for violating the provisions on sanitary landfills of the Ecological Solid Waste Management Act of 2001 (Article 6, Section 36-41) and the Sanitation Code (Presidential Decree 856). . The dumpsite generates several cubic meters of leachete per day, which pollutes the river and the environment. The dumpsite has been partially collapsed into the river and the situation can become critical during heavy rains. Dumpsite and Banica River . The LGU needs to improve its technological, contracting, negotiation, implementation, and monitoring capacities to be able to manage possible PPP contracts for SWM Opportunities: . rehabilitation/landfill mining or/and closure existing dumpsite and . provision of a new decentralized WTE with PPP . improvement of operation and maintenance of existing SW collection fleet . training and public awareness programs Initial Investment Costs: . Landfill mining/rehabilitation of Candau-ay dumpsite $3.3million, . WTE $7 million . Centralised MRF and drier $1.2million, . Collection improvement: trucks $0.4million and waste bins $0.2million Waste Sorting

Dumpsite in Tambler Dumpsite

General Santos The city has an 10-Year SWM Plan, which has been approved for implementation by the city council in October 2007. EcoGov has provided technical assistance to the city government in the conduct of the feasibility and technical studies. The EcoGov Project is a collaborative effort between USAID and the Department of Environment and Natural Resources (EcoGov2) General Santos current population is 500,000 citizens and waste generation is today 320tpd. Waste collection efficiency is about 60% which covers partially all barangays. High-end residential subdivisions, shopping malls, and restaurants maintain their own wastes collection Burning waste on Tambler Dumpsite contractor. Waste collection has been arranged with the private sector, barangay and mayor’s office. Industrial locators specifically and hospitals also contract the collection and disposal of their solid wastes. A SLF for final disposal facility including all associated infrastructure and support facilities is under construction at Barangay Sinawal, which is approximately 15 km north-west of the centre of the City Key Challenges: . SLF construction started on June 11, 2010. However, progress of the SLF contraction has been very slow. Recently, the city has started negotiations with the contractor to revive the project. An ultimate target is to complete the project by 2015. . Closure of Barangay Tambler dumpsite. Waste pickers are sorting waste . Currently the city disposes an average 68 truckloads per day of MSW to Tambler open dumpsite . Open dumpsite around 35km from city centre . Daily waste collection1 is about 200tpd. . 150 Indigenous People (IP’s) are working on site . Severe environmental and health risk at fire and leachate . Proper installation of fences, gas vents and sloping of the dumpsite to prevent erosion were listed in the guidelines set. . The large disposal pit at Barangay Sinawal shall serve as the new landfill the moment that the dumpsite at Tambler is closed. . Due diligence report of IP’s status is ongoing, and a foundation of the A new SLF at Barangay Sinawal city’s canning industry will provide working opportunity for all IPs. Opportunities: . The demand for alternative fuel for CHP power plants is also growing in General Santos. One MW Waste to Energy (WTE) plant represents a real opportunity to concrete measures to mitigate climate change at the local level. . In addition high load anaerobic digester with bio-sludge from canneries, slaughterhouse, septage sludge, piggeries and bio- waste from households provide about 2WM electricity output and with an opportunity using execs heath to generate slurry ice to canneries

Initial Investment cost: . Closure of Barangay Tambler dumpsite $1.5million, Tuna cannery sludge . Bio-gas plant $8million including 5 sludge collection trucks . WTE 8million, MRF and Drier $1.5million, . Collection improvement: trucks $0.5million and waste bins $0.2million.

1 See more at: http://news.pia.gov.ph/index.php?article=1671377239078#sthash.q2Tu6KaS.dpuf

Disposal site at San Pedro Dumpsite

Sta. Rosa, Laguna Santa Rosa among regional LGUs and MMDA use the “pilotage” sanitary landfill located in Brgy. San Antonio, San Pedro as final disposal facility of waste. The disposal facility cannot be considered a sanitary landfill, because it lacks the safety features to prevent contamination of the ground water. The disposal facility’s exposed wall and bottom does not show the installation of a geomembrane liner to prevent leachate from percolating into the ground. It also does not have any leachate treatment facilities, and according to the disposal supervisor, the leachate is just re-circulated. No installation to provide for re-circulation however has been noted on the site. There is also no weigh bridge for measuring accurately the amount of Existing disposal site in San Pedro wastes that are disposed of. According to the facility staff that accompanied the PPTA team at the disposal area, at least 150 truckloads of wastes, about 230tn/day are disposed of at the facility daily. Possible environmentally critical situation. The present disposal site for the city, the Pilotage sanitary landfill, is located in San Antonio, San Pedro, which is about 25 km to 35 km by road travel depending on the route taken. The site was inspected during the scoping visit to Sta Rosa and was assessed to be not in compliance with regulatory standards for the quantities of wastes accepted by the facility. If this disposal facility is issued an Environmental compliance certificate Violation Notice and closed, the city will be in great difficulty because it has no alternative disposal site for its wastes. While Sta. Rosa has allocated an initial budget of P5 million for barangay MRF facilities, only 4 out of the city’s 18 barangays have established their MRFs due to the difficulty of finding a suitable site for MRF. . 10-Year SWM Plan, 2007. Compostors . 230 tons/d waste generation . Biodegradable waste 80tn/day . CENRO with 4 technical and 30 non-technical staff . SWM ordinance . Wealthy industrial city Key Challenges: . Securing land for SLF . Urgency to improve SWM . Private owned dumpsite in San Pedro cannot be converted to SLF. . Sta. Rosa is willing to invest in WTE as a long term solution to SWM Opportunities: Nursery for Testing of Compost . Waste to Energy (WTE) is an opportunity for the city to build long term SWM solution for Santa Rosa. . The demand for alternative power generation is also growing in Santa Rosa. 2 MW power plant represents a real opportunity to support local economy and climate-change mitigation measures. Initial Investment cost: . WTE $14 million . Centralised MRF and drier $1.4million, . Collection improvement:  trucks $0.4million and  waste bins $0.1million

Storage for recyclable materials

New sanitary landfill at Barangay Salaan Zamboanga City Zamboanga City operates its SWM with Barangay Lumbanga dumpsite with area of 4.4ha. It has been main dumping site over 15 years for Zamboanga City. The fear within the community living in proximity to the area is the strong possibility of ground water contamination due to high infiltration rate of leachate as revealed by the results conducted by the Bureau of Soils in the Region. The alarming level of groundwater contamination is quite noticeable as revealed by the Barangay Chairman since there is an increase of diarrhoea and gastro-intestinal cases among the local residents of Existing dumpsite at Lumbangan Barangay Lumbangan and nearby barangay since a large percentage of their drinking water sources are coming from deep well. In addition, esteros, creeks and rivers have become the dumping areas for solid waste, wastewater and even chemicals. These are all pollutants that can kill marine life, clogged waterways and affect the economic life of communities. The current and future solid waste generation of the City shall be handled by SLF and WTE systems without causing imbalance in the overall ecosystem of the area. A new SLF has been under construction nearly two years. The Phase 1 comprises of cell number one, roads, fence, drainage system, administration building, leachate treatment and collection facilities and the lining system. It is expected that the cell number (2has) can accommodate the city’s garbage over three years. The City Government will close the dumpsite in the village of Lumbangan once the sanitary landfill will be opened. In Brief Information:

. The City generates approximately 300 tons per day. Existing dumpsite at Lumbangan . Average waste collected and disposed in landfill is 160 tons per day. . Waste collection service covers all the 31 urban and 8 rural barangays. . 61 percent is biodegradable wastes and 39 percent for non- biodegradable wastes. . One out of four Material Recovery Facilities is operating by city using the “happy soil technology for composting” . 10-Year SWM Plan, 2005. Key Challenges: . Working opportunity for 100 families of scavengers . Specifically (i) waste segregation and reduction at source, (ii) information, education and communication (IEC) campaign; (iii) waste collection . Private sector partnership. Opportunities: Construction of Salaan SLF . Waste to Energy (WTE) is an opportunity for the city to build long term SWM solution for Zamboanga City. . The demand for power generation is growing in Mindanao. 1 MW power plant represents a real opportunity to support local economy and climate- change mitigation measures. . Employment opportunities for 50 people at the site Initial Investment cost: . WTE $6 million . Dum site closure at Lumbangan $1.5million . Centralised MRF and drier $1.4million, . Collection improvement:  trucks $0.4million and  MRFs $0.8million Construction of Salaan SLF

PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report

Baquio Mission Report ANNEX 3.1

1 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report PHILIPPINES SOLID WASTE MANAGEMENT SECTOR PROJECT

PPTA, FASPO, and NSWMC Joint Mission to Baguio City and La Trinidad Municipality 5−9 February 2013

A. INTRODUCTION 1. The mission comprising members from the Project Preparatory Technical Assistance (PPTA) team, 1 Foreign-Assisted Special Projects Office (FASPO) of the Department of Environment and Natural Resources (DENR),2 and National Solid Waste Management Council (NSWMC)3 visited Baguio City and La Trinidad Municipality on 5−9 February 2013. The mission was led by OIC Chief of MIDP- FASPO, Ms. Cristina Regunay. The main objectives of the meetings with the local government unit (LGU) officials were (i) to introduce the proposed Philippines Solid Waste Management (SWM) Sector project; (ii) to assess and discuss needs for technological solutions, expertise, and resources for the development of SWM in these LGUs; (iii) to confirm the LGUs’ interest to participate in the project; (iv) to validate the selection of three LGUs; and (v) to further assist the LGUs in the preparation of Action Plan for Sub-Project Appraisal Reports (SPAR).This mission memorandum was prepared to summarize the discussions and main findings with respect to the preparedness and interest with the project of the concerned LGUs. Annex 1a presents Notes on the Baguio and La Trinidad Validation Trip describing detailed situation at sites.

B. MEETING WITH DENR CORDILLERA 2. During the meeting on 6 February with DENR-Codillera Administrative Region Regional Executive Director Oscar Cabanayan, the mission was informed that since the dump site collapsed in 2010, Baguio has been forced to transport 10−12 truckloads of solid waste per day to Urdaneta, Pangasinan. Baguio has taken the practical approach on solid waste recycling and reduction as the guiding principle for overall SWM development. However, due to its topography and lack of suitable land for a sanitary landfill, Baguio, including its neighboring municipality, La Trinidad, are faced with major problems. Many possible sites for a sanitary landfill within and outside of Baguio have been investigated, but without success. Baguio has 128 barangays in 17 clusters, each with a materials recovery facility (MRF), which may be more of a collecting facility rather than an MRF as defined in RA 9003. Both Baguio and La Trinidad lack the technical and financial resources for SWM. 3. The PPTA proposes to look carefully into an energy recovery facility (ERF), which may provide a long-term solution for SWM in Baguio and La Trinidad. Electricity in both LGUs is needed for tourism and industry development, and residuals from solid waste could be an energy source for electricity. As a expert put it, whether we are talking about industry wastes or municipal household waste, there is energy all around in the form of waste. An ERF initiative is defined as a broad scope of actions to solve one or more waste-management problems in LGUs. For example, modern gasification technology, which is operating a nearly emission-free process with high performance, provides a business concept that is expected to continue in the higher level global fight against climate change.

1 The PPTA consulting team comprised Hannu Pelkonen (Team Leader), Melisa Sapboy (Deputy Team Leader), Graham Johnson-Jones (Institutional Specialist), Ewald Spitaler (Solid Waste Management Specialist), Reynar Rollan (Solid Waste Expert), Emmanuel Vargas (Solid Waste Expert), Elmer Mercado (Institutional Specialist), and Roberto Demigillo (Legal Specialist). 2 The FASPO team consisted of Cristy Regunay (OIC Chief, MIDP) and Malou Calado (Project Development Officer). 3 The NSWMC team comprised Emelita C Aguinaldo (Executive Director), Ma. Delia Cristina M. Valdez (Senior Economic Development Specialist), and Ms. Cynthia Evardone (CAR representative in NSWMC).

2 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report C. MAIN FINDINGS 4. Improvement of SWM. The PPTA has noted the great dynamism and the rapid development of the LGUs. Fast economic growth and the improvement of roads, social services, and water delivery have taken place during the last few years, leading to the improvement of SWM condition. However, while the LGUs continue to expand, acceleration of the growth process has increased the human pressure on the land and its availability for SWM. 5. Solid waste generation in Baguio and La Trinidad is expected to increase in the future due to urban, tourism, and industrial development. The existing sanitary landfill sites have reached their maximum capacity. Baguio’s landfill has been closed since its partial collapsed is 20104. Its extension is unrealistic. The La Trinidad sanitary landfill, on the other hand, requires rehabilitation and extension, which could be implemented in techno-eco manner if segregation, handling and disposal of solid waste will be implemented properly. 6. It has been observed that the current retention wall installation in Baguio does not meet the required safety net against landslide in case of heavy rainfall or seismic events. Several houses are too close to the retention wall. A certain safety area shall be defined covering these aspects:  extent and impact of the collapsed landfill on soil and ground water contamination  risk assessment of existing landfill  appropriate and feasible technical solutions for SWM in the context of Baguio  public-private partnership (PPP) and introduction of opportunities for private sector provision of SWM services  ways of developing and using the regulatory framework (RA 9003) to facilitate SWM and other related infrastructure provision  enhancing community involvement in the infrastructure planning process  institutional arrangements and financial sustainability of proposals  institutional development by strengthening DENR’s presence, (Environment Management Bureau [EMB] and NSWMC, and services at the regional and provincial levels to facilitate compliance by LGUs to RA 9003, including strengthening the capability of institutions at all levels to contract appropriate expertise  capacity development and  development of public awareness campaigns and training programs.

7. RA 9003 regulates the LGU responsibilities for the segregation, disposal, handling, storage and monitoring of municipal waste. However, the law and its implementing rules and regulations are not enforced. The EMB) together with the City of Baguio and Municipality of La Trinidad, and the private sector shall take active measures to enforce separation of biodegradable and recyclables to minimize the required landfill size. Further, taking into account a possibility that the required sufficient land for the disposal sites is not available for over 25 years of operation in any of the concerned LGUs, it is necessary to consider ERF to solve the current unbearable SWM situation in Baguio and La Trinidad. 8. Despite substantial improvement of efforts toward SWM during recent years in La Trinidad, the present conditions of the sanitary landfill and composting facilities are generally poor. Solid waste loads and ineffective operations of the “black hole” process result in the low quality of SWM, creating a hygienic and health risk and increasing environmental pollution in the surrounding areas and in the water tributaries.

4 The existing dumpsite in Bgy. Irisan is currently being remediated in compliance with the ‘writ of kalikasan’ issued by the Court of Appeals and is expected to be closed with DPWH technical support and converted into a ecological park by the end of 2013.

3 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report 9. It is proposed that the PPTA explore the improvement of solid waste facilities in La Trinidad to increase their treatment capacity by undertaking the following:  rehabilitation of the compost plant and its operation, possibly through private sector contracting rather than by the LGU  review of MRF processes  provision of a new decentralized ERF through PPP  provision of rehabilitation and extension of existing landfill  improvement of operation and maintenance of existing assets, including an Integrated SWM strategy  business plan for SWM  substantial and replicable capacity development program from the regional level to the LGU level to improve SWM  training and public awareness programs, including on PPP.

10. Integrated SWM service delivery. Past and ongoing projects and initiatives have sought to address the deficiencies in SWM infrastructure in LGUs to comply with RA 9003, oftentimes with minimal participation of local stakeholders and communities. While many have achieved positive and tangible results, which should be well–recognized, the approach probably needs to change. It is urgent to look at best practices and lessons learned in standardizing approaches to different types of situation in SWM, whereby multiple SWM services can be planned and implemented through coordinated interventions. Sanitary landfills should not be pursued as a standalone solution, but should be integrated into a more comprehensive approach of environmental infrastructure and service upgrade such as solid waste collection, MRF, ERF, community participation, and overall urban development. 11. Improvement of SWM planning principles and recommendation for integrated SWM. A number of research and planning exercises on SWM have been undertaken during the last 15 years in the Philippines, resulting in a series of master plans, strategies, acts, and laws. These exercises have generated an ambitious vision for SWM development in the Philippines. However, implementation of these plans and acts are likely to be constrained by the absence of legal mechanisms for the acquisition of new technologies,5capacity limitations of private lands, sector coordination, and land management practices. 12. A key issue is to rationalize RA 9003 and the Clean Air Act to facilitate SWM development in the LGUs and strengthen and equip DENR from the LGU level to the department level with modern planning tools. These tools will help to ensure the adequate implementation of integrated SWM and better efficiency, sustainability, and rationality for infrastructure and service provisions. 13. LGU commitment. It was noted that SWM is a high priority in Baguio and especially in La Trinidad, irrespective of political change. For over 10 years, La Trinidad has tried, albeit without success, to solve SWM issues and to comply with RA 9003. Now, its mayor is willing to ask for help through ADB. DENR is expected to receive a letter of intent (LOI) from La Trinidad within this month (February). 14. According to the mayor of Baguio, a PPP proposal for ERF from the Dominion Clean Energy Group (DCEG) is currently being evaluated by the Investment Coordination Committee for recommendation to the National Economic Development Authority (NEDA). Under the proposal, Baguio City will be required to provide a minimum of 200 tons/day of residuals to DCEG for the ERF. The proposal also covers solid waste collection. For the first 10 years, all the benefits will go to the company, but from the 11th year and thereafter, Baguio will receive a share electricity or money. The

5 Some aspects of certification by the Department of Science and Technology need to be reviewed to ensure good technologies are not blocked.

4 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report mayor is fully committed to SWM. The mayor informed the mission that Baguio City would send an LOI to DENR. Key SWM challenges to the LGU  Finance is the key challenge.  Need for greater technological, contracting, negotiation, implementation and monitoring knowledge to manage possible PPP contracts for SWM.  Land availability is critical, indigenous peoples ancestral rights a consideration. However, for PPP finding the site is the developers responsibility  Public perception of SWM (dirty/smelly) results in reticence in accepting SWM facilities in their locations Opportunities:  Rehabilitation of the compost plant and its operation with PPP  Provision of a new decentralized WTE with PPP  Provision of rehabilitation and extension of existing landfill for WTE  Improvement of operation and maintenance of existing assets  Improvement of collection capacity  Training and public awareness programs, including on PPP Initial Investment Costs: . Rehabilitation of Irisan dumpsite for WTE $1.0 million, . Rehabilitation of compost plant $1.2million . WTE $14 million, MRF and Dries $2million, . Collection improvement: trucks $0.3million and waste bins $0.2million

2. The draft memorandum was sent to FASPO and NSWMC for comment on 27 February 2013. The revised final draft will incorporate the FASPO and NSWMC comments provided to the PPTA team by email to [email protected].

For the FASPO/NSWMC

______PPTA Team

Annex 1a Notes on the Baguio and La Trinidad validation trip

5 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report

ANNEX A: NOTES ON THE BAGUIO AND LA TRINIDAD VALIDATION TRIP

A. FINDINGS AND ASSESSMENT 1. This rapid assessment covered the major components of a typical waste management system which include planning, generation, collection, diversion via composting, MRFs and junkshops and disposal of the City of Baguio and the Municipality of La Trinidad. Information regarding these components was gathered through meetings with LGU. DENR and EMB officials and visits to the La Trinidad disposal site, the Irisan dumpsite and waste staging area of Baguio City. a. Municipality of La Trinidad 2. Planning: The Municipality of La Trinidad prepared its 10 Year SWM Plan in 2004 and submitted the same to the NSWMC for approval. At the time of the visit on February 6, 2013, the plan has not been modified as required and therefore has not been approved. The plan needs to be updated on the aspects of waste composition, generation, collection, diversion via recycling and composting and disposal and other treatment methods. 3. Waste Generation: Currently is disposed 30 tons of waste on a daily basis. The wastes shows and high rate on recyclables (>60%) where similar percentage contents of LDPE. It has to be assessed if landfill-mining activities and the recovery of recyclables, high- and medium calorific components are economically feasible. This would allow reducing the volume, gaining raw materials and extending in this way the lifespan of the site for a few more years. It has to be emphasised, that the retention wall shows cracks and compaction activities shall be carried out with the most of care. Landfill mining would require screening activities (>40mm), pre-segregation of valuable materials and baling. It should be assessed if mobile equipment could be hired. The baled components could be stored in the meanwhile on the concrete paved area. 4. Updated information on the waste generation of La Trinidad is not available. The 2004 SWM Plan indicated a daily waste generation of 76 tons broken down as follows, Table 1.

Table 1: Waste compositions

Source Amount (tpd) % Residential 40 52 Commercial 5 7 Institutional 2.5 3 Market 26 34 Agriculture 2.8 4 Total 76.3 100 5. Updated figures regarding waste generation are not yet available.

6 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report 6. Waste Composition: Waste characterization in La Trinidad was last conducted in 1998 as part of the Feasibility Study – IWMD of the Baguio – La Trinidad – Itogon – Sablan – Tuba (BLIST). Based on the presentation made by the SWM Coordinator of La Trinidad on February 6, 2013, the waste generated at the municipal consists of 53% biodegradable, 26% recyclable and 21% residuals. The high percentage of biodegradables is the logical consequence of the agriculture-driven economy of La Trinidad. These figures need to be validated through the conduct of a waste characterization study. Figure 1 shows a view from west to north-north west. The concrete paved access road is currently used for waste-picking. 7. Collection: All barangays are covered by the municipal waste collection system. Data on actual collection is not currently available. 8. Waste Diversion: The Municipality of La Trinidad currently implements the following methods of waste diversion: (1) heap composting and (2) aerated composting. 9. Heap composting is done at the vacant areas adjacent to the disposal site in Barangay Alno. Mass balance Figure 1: Waste-picking of the process is not available. Aerated composting is done at a roofed facility located about 200 meters southwest of the disposal site. Shredded biodegradable materials are mixed with rice hull, ashes, saw dust and compost from previous process. It is noted that the process used entails only a small amount of biodegradable materials relative to the other processing components. 10. As gathered during the meeting with CAR EMB officials on February 6, 2013, there are no official MRFs in La Trinidad. Recyclables recovered by the informal sector from waste bins, collection trucks and at the current disposal site in Barangay Alno and those at source are presumed sold at the junkshops in the Poblacion, Puguis and Pico. 11. Composting: The site is located UTM 51Q / 241753 / 1825349 / 899 La Trinidad Municipality. Compost plant was constructed during 2010 and it has operated since 2011. The installation was financed with support of the Japanese Government. 12. Compost plant process 60 tons/month (approximately 700 tons/yr) About 40% of final product is sold and 60% stored. The process is based on aerated box system - three drum reactors (developed by DOST), currently not in operation – 6 rotating boxes – for thermopylae as well mesophyle phase – as well two boxes for the maturation phase before screening. 13. The process is “stimulated” within the first phase by Charcoal and EMs, generated due to wood vinegar (Mokusaku) production (pyrolyses of coconut husk) and stored for a period of 6 months before admix it to the phase I material (fresh material). Charcoal takes part in a sufficient C:N ratio, while wood vinegar increase the effect cracking celluloses and lignin based cells and is not related to EMs. 14. After a period of 6 months aerated processing follows a screening process (10mm) and a blending of rice husks for increasing the carbon content and physical structure. The product is either stored loose or in bags. Current amount of production is higher than recorded demand (surplus

7 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report material). Samples from stored and blended compost as well from newly screened material have been taken and delivered to the Lab CRL environment corporation (certified lab of DENR). 15. First assumption is, that the composting process lacks of carbon relate and structured material allowing a homogenous composting process. There have no thermometers been installed allowing controlling the temperature. The material is rather compact. Current air supply (approx. 1000 m³/hour) for 6 boxes and one aeration slot seems to be too low. Biological process has turned from aerobic to anaerobic partially and severe odour is presence at site. The required static pressure of 35 mbar could not be measured during the visit. The preparation of charcoal as well of wood vinegar should be re- considered. Also a grinder for homogenising the material components is missing. A drum screen unit would be required. The kiln-reactors functionality has to be question-marked. 16. Waste Treatment: The Municipality of La Trinidad started using the so called super “black hole” in 2011 to treat organic waste. The facility uses low temperature plasma and magnets to turn waste into ash. The process contains of an inductive low-temperature heating chamber, a grinder for conditioning of high-medium calorific value material as well connected scrubbers for exhaust air purification purposes. Material will be grinded and 8 hours processed within the low-temperature chamber. The result is a carbonised material later on called “Ash”. 17. Material flow: 50 bags x 10 kg for 8 hours; the plant is operating in three shifts; the output per shift is 30 kg of ash. Samples from the ash (final product) as well from the scrubber liquid have been taken and delivered to the Lab CRL environment corporation (certified lab of DENR). 18. Disposal: The site is located 11km NNW of the LGU La Trinidad within the mountain area. It was constructed during 2010 and opened in January 2011. The bulk of the collected waste is disposed into the filled up 0.42 ha landfill located within a 7- hectare lot in Barangay Alno, Figure 2. The construction area contains a sealed ground layer, leachate drainage (fish- bone system) a leachate collection and cascade structure, access road and shelter facilities. The whole Figure 2: La Trinidad SWM Facilities area is bounded with a retention wall. Leachate is collected through an open collection system (open drainage pits). The current situation shows, that no space is available. The SLF was developed at the edge of a steep slope which is now bounded by a retaining wall. 19. Access to the SLF from the Poblacion and from Baguio City is through a winding and single lane road which can only accommodate small collection vehicles. Development of the adjacent areas of the SLF as a major waste disposal facility would require the widening and regarding of the current access road.

8 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report 20. According to the Mayor of La Trinidad, there are no more public lands in the municipality which can be used for waste management purposes. Plans for developing a waste management facility that can accept waste from other local government units would need to consider using the still unused portions of the 7- hectare area in Barangay Alno or purchase of privately owned lots. Mayor Abalos of La Trinidad mentioned a potential 4-hecatre site in Figure 3: Sitio Longlong with respect to La Trinidad Sitio Longlong which can be purchased. It is reportedly located near a communal forest. Sitio Longlong is located about 2 road kilometers southwest of the center of La Trinidad, Figure 3. 21. Institutional Findings: The institutional findings are attached as Appendix A to these notes. It was noted that although the ENRO position was established, this was effectively working under the Mayors office and not established as a departtment per se. Nevertheless, the commitment of the LGU to addressing SWM is clear and does not appear to be subject to political vulnerability. b. City of Baguio 22. Planning: The City of Baguio prepared its 10 Year SWM Plan in 2006 and submitted the same to the NSWMC for approval. At the time of the visit on February 7, 2013, the plan has not been modified as required and therefore has not been approved. The plan needs to be updated on the aspects of waste composition, generation, collection, diversion via recycling and composting and disposal. 23. Waste Generation: Updated information on the waste generation of Baguio City is not available. WACs conducted in 2006 (?) showed a per capita waste generation of 0.4 kg and an extrapolated daily generation of 288 tons. The Plan did not indicate how the daily generation rate was arrived at. It is noted that the Baguio population of 311,328 in 2006 can only generate 124 tons per day. It is inferred that the projected waste generation came from transient visitors as well as industrial, commercial establishments and markets. 24. Updated estimates of the waste generation of Baguio City are not currently available. Based on information provided by the SWM personnel at the Irisan dumpsite on February 7, 2013, Baguio City generates about 360 tons of waste per day. In a presentation made by the city officials later in the day, the estimated waste generation varied from 200 to 250 tons per day which are lower than the 2006 extrapolation. A city wide waste characterization study must be undertaken to arrive at a realistic estimate of the waste generation of Baguio City. 25. Waste Composition: The 2006 WACS provided the following results: 40% biodegradables, 26% recyclables, 32% residuals and 2% special wastes. These figures need to be updated though the conduct of citywide WACS. As previously recommended, a new WACS must be conducted for Baguio City. The results would serve as the firm basis for improving current waste management and for initiatives such as cluster waste disposal or waste to energy facilities.

9 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report 26. Collection: Based on the 2007 SWM Plan, waste collection is undertaken in all barangays by the City Environment and Parks Management Office – Solid Waste Management Division (CEPMO- SWMD). At the time the plan was prepared, CEPMO-SWMD has 22 collection vehicles. Average daily waste collection as inferred from the disposal rate in the Irisan dumpsite is 100 tons. Assuming that the extrapolated waste generation of 288 tpd is accurate, 188 tons of waste per day goes unaccounted for. 27. During the briefing conducted at the staging area on February 7, 2013, the estimated waste collection is about 200 tpd. About 48 tons of biodegradable materials are delivered at the composting facility in Irisan. About 150+ tons are delivered at the staging area also in Irisan for sorting by the waste pickers and subsequent transfer to the trucks that will bring the sorted waste to the Urdaneta Sanitary Landfill. 28. Review and assessment of existing records of truck capacities and trips in as well as actual inspection along collection routes need to be undertaken to arrive at an updated estimate of waste collection of Baguio City. 29. Waste Diversion: Waste diversion in Baguio City is done through the ERS system in Irisan, backyard composting, recovery of recyclables at source by waste generators themselves and by the informal sector at waste bins, collection trucks and staging area prior to disposal to the Urdaneta Sanitary landfill. 30. The ERS System processed 4,210 tons of biodegradable waste and produced 1,093 ton of compost in 2012. 31. Data on the amount of biodegradables which are composted in backyards are not available. Likewise, data on the amount of recyclables recovered by the informal sector from bins and trucks and those recovered at source are not available. Based on records provided by the SWMD, the average daily amount of recyclables recovered at the staging area is 22 tons. During the meeting with EMB CAR on February 6, 2013, it was learned that the 128 MRFs in Baguio essentially serve as storage areas of recyclables of the respective barangays. 32. Compost Plant: The compost plant is private operated (contract with LGU) and treats 48 tones per day on selected Biowaste / Kitchenwaste / Marketwaste. The plant (Japanese Technology) has hygienisation (pasteurisation) function and de-germinates the material for further processing by heat and vaccum (similar to the concept of autoclavation). Treated material is mixed with structured C- containing material, and stockpiled for more than 6 months before screened (10 mm) and packed (currently is the certificate for final product awaited). 33. Disposal: Prior to the trash slide of August 27, 2011, the City of Baguio has dumped its waste into the 2.12 hectare dumpsite in 17, Barangay Irisan, Figure 4. The site is located 4.5 kilometers southwest of Baguio City. The waste used to be disposed on the steep southern slope of the hill underlain by a limestone formation. The innate permeability of the limestone is inferred to have facilitated the movement of the leachate form the dumped waste into the subsurface. Figure 4 Irisan Dumpsite and Irisan Staging Transfer Station Information on the occurrence or

10 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report appearance of leachate at areas lower than the dumpsite is not available. 34. Dump site was closed immediately after the slide. A retaining wall is currently being constructed at the site to prevent the downslope movement of previously deposited waste. It is assumed, that current retention wall installation does not meet required safety against landslide in case of heavy rainfall or seismic events. The residential buildings are too close to the retention wall that a certain safety area shall be defined, Figure 5.

Dumping at the site has stopped

Figure 4: Retention wall under

Figure 5: Retention Wall renovation

35. Transfer Station: Waste collected from Baguio City is temporarily deposited at a staging area in Purok 12 Irisan for the recovery of recyclables. The waste is then loaded to trucks which will bring them to the Urdaneta Sanitary Landfill in Pangasinan. Based SWMD records, about 130 tons of wastes are brought to the Urdaneta SLF on a daily basis, Figure 6. 36. Various studies have been undertaken to identify potential disposal sites within Baguio City and the adjacent towns of Tuba, Itogon, La Trinidad and Sablan. All Figure 6: Temporary transfer station at Irisan these studies were beset by the limitations imposed by the mountainous terrain, geological conditions, potential resettlement and environmental issues and landuse conflicts, among others. Proposals for the development of solid

11 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.1 Baquio Mission Report waste management facilities should consider the purchase of privately owned lands which will satisfy siting and environmental requirements or which can be engineered to meet design 37. In a meeting with Mayor Domogan of Baguio City, it was learned that the City received an offer from Dominion Clean Energy (DCE) of UK for the establishment of a waste to energy (WTE) facility. The offer only requires Baguio to provide DCE with 200 tons of waste per day for 10 years without any expense on the part of the LGU. After 10 years, discussions will be held regarding the share of Baguio City of the revenues generated by the facility. As part of the offer, a team from Baguio City will visit a WTE in UK in the first quarter of 2013. 38. In the absence of details regarding the DCE offer, the following needs to be considered:  Ability of Baguio City to provide the required 200 tpd waste  Absence of updated data on waste composition and generation  DCE conditions if Baguio City will not be able to supply the required 200 tpd waste  Compliance of Baguio City with other provisions of RA 9003 from generation stage up to the point of waste collection  Environmental and performance standards on waste collection to be undertaken by DCE 39. Institutional Findings: It was noted that the commitment of the LGU to addressing SWM is clear and does not appear to be subject to political vulnerability. In addition, there was a strong recognition of the problems related to the possibility of a SLF, and a strong preference to follow a PPP arrangement for waste to energy.

12 PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.2 Dumagete Mission Report

Dumagete Mission Report ANNEX 3.2

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.2 Dumagete Mission Report

PHILIPPINES SOLID WASTE MANAGEMENT SECTOR PROJECT Mission to Dumaguete City, Negros Oriental 19−21 February 2013

A. INTRODUCTION 1. A team of Project Preparatory Technical Assistance (PPTA) consultants1 and officers of the Foreign-Assisted Special Project Office (FASPO)2 of the Department of Environment and Natural Resources (DENR) visited Dumaguete City from 19 to 21 February 2013. During the inception phase, the PPTA consultant pre-selected Dumaguete City as a study site under the city category for the proposed Philippine Solid Waste Management Sector Project (PSWMSP). The main objective of the mission was to validate the site as one of the three LGUs for the project. The specific objectives were (i) to introduce the proposed project, (ii) to assess and discuss needs for technological solutions, expertise, and resources to contribute to further SWM development in Dumaguete; and (iii) to confirm Dumaguete’s interest to participate in the project. This mission memorandum was prepared to summarize the mission’s main findings. 2. The City of Dumaguete, capital of Negros Oriental, is situated on the plains of the southern coast of the Island of Negros, near the mouth of Banica River. It is bounded on the north by the town of Sibulan; on the east by Tañon Strait and Mindanao Sea, serving as a natural border to the neighboring provinces of Cebu and ; on the west by the town of Valencia; and on the south by the town of Bacong. 3. Data from the Tourism Office shows that Dumaguete is one of the Top 10 tourist destinations in the Philippines. The majority of the tourists and expatriates in the city are Europeans and Americans. Dumaguete is also popularly known to cater the needs of the diving enthusiasts, both locals and foreign tourists. 4. Vision of Dumaguete City. A city of gentle people, envisions becoming ecologically- balanced and peaceful city, a center of sustainable development, quality holistic education with self-reliant, socially responsible, morally upright and highly empowered people by 2015. 5. The city government aims to give efficient and effective delivery of services by providing quick and coherent response to the needs of the community. Several task forces have been created to address the varied concerns of the city. Though these bodies have been initiated with good intention, they either lacked sufficient human resources or the much needed “will” to carry out appropriate sanctions and desirable actions that need to be accomplished. The organization chart of the city government is shown in Figure 1.

1 The PPTA consulting team comprised Hannu Pelkonen (Team Leader) and Graham Johnson-Jones (Institutional Specialist). 2 The FASPO team consisted of Cristy Regunay (OIC Chief, MIDP) and Malou Calado (Project Development Officer).

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.2 Dumagete Mission Report

Figure 1

B. FINDINGS 6. Dumaguete City has issued the City Ordinance 115, series of 1998, otherwise known as the Dumaguete City Ecological Solid Waste Management Ordinance. The ordinance authorized the creation of a City Environment and Natural Resources Officer (CENRO) that is tasked to supervise the SWM functions of the city. In 2006, the city crafted its 10-Year SWM Plan, which currently is being revised as a new 10-year plan. 7. A waste analysis and characterization study (WACS) was conducted in 2007 in all the city’s 30 urban barangays. The city’s solid waste primarily comes from residential areas, public market areas, commercial , and other sources. It is estimated that the average waste generation rate is 0.4 kilogram/capita/day, and as of 2013, estimated waste generation was 54 tons daily. The total waste disposed of is 35 tons per day. The existing collection system covers the 30 urban barangays and uses three dump trucks, four compactor trucks, three Elf trucks, and one mini dump truck. 8. Material resources recovery, recycling, and composting. Dumaguete City is implementing various measures to minimize the disposal of residual waste into its present dumpsite. Applied source reduction methods include backyard composting, source segregation, and segregated collection.

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.2 Dumagete Mission Report

9. In 2000 the Candau-ay dumpsite was converted into a controlled dump that included the establishment of a composting area and materials recovery area. The city has recognized the skills of the informal sector in recycling and recovery. To uplift their status, the city government organized them into a cooperative; the Balugo-Candau-ay Earth Savers Cooperative composed of 60 scavenger families, and provided them with low-cost housing adjacent to the controlled dump site. To provide livelihood for them, the city government tasked them to do the materials recovery and composting activities for the city within the controlled dump. 10. Dumpsite closure and rehabilitation. The open dumpsite in Barangay (Brgy.) Candau- ay continues to receive about 35 tons of solid waste daily. On 1 November 2008, the villagers of Brgy. Candau-ay unanimously passed a resolution for the closure of the dumpsite effective January 2009. The villagers and their officials cited these reasons: the area is small and densely populated; water, air, and soil pollution; and skin and respiratory diseases afflicting a “growing number of residents.” Although the city had converted the site into a controlled dump in 2000, the increasing volume of waste continuously disposed of into the area has made it difficult to manage the area as a controlled dumpsite. Presently, the area is operating as an open dumpsite. The city has failed to implement the conditions for the closure and rehabilitation of the dumpsite, hence Dumaguete had been ordered by the DENR to close the existing dumpsite since 2005. 11. The city’s lack of adequate and efficient waste disposal system is a serious concern that requires immediate attention. The open dumpsite in Barangay Candau-ay beside Banica River has been condemned by many environmental groups, and as a matter of fact has already received a Cease and Desist Order (CDO) from the DENR for violating the provisions on sanitary landfills of the Ecological Solid Waste Management Act of 2001 (Article 6, Section 36- 41) and the Sanitation Code (Presidential Decree 856). 12. DENR warnings. The DENR office in has ordered the city government of Dumaguete to immediately close its open dumpsite and to establish composting facilities in barangays as required in Section 32 of RA 9003 (Ecological Solid Waste Management Act). 13. The DENR visit on 11−12 April 2012 and on 20 February 2013 to the site found that the city is still operating an open garbage dumpsite in Brgy. Candau-ay, besides Banica River. The dumpsite generates several cubic meters per day of leachete, which pollutes the river and the environment. The dumpsite has been partially collapsed into the river and the situation can become critical during heavy rains. It is highly recommended that slope enforcement of Banica River be built within the dumpsite to protect the river from trash slide and pollution. 14. Establishment of sanitary landfill. Dumaguete City has been banking on its proposal to its neighbor, the Municipality of Dauin, to host the sanitary landfill. However, it is high time that the city government look for alternative sites for the relocation of its disposal site and the construction of a new sanitary landfill because many sectors in the Municipality of Dauin oppose the proposal. Negotiations for the proposed Dauin site in Brgy. Tunga-tunga have been going for many years. A feasibility study for the proposed sanitary landfill had been funded in 2005, but almost all the LGUs within Metro Dumaguete have refused to receive solid wastes. 15. The private sector and nongovernment organizations (NGOs) are not significantly involved, but private sector participation through contracting or public-private-partnership would be welcome. The mayor of Dumaguete was clearly in favor of alternative technologies and does not support sanitary landfill solutions. 16. Cost recovery. Republic Act (RA) 9003 authorizes LGUs to collect fees sufficient to cover the costs of preparing, planning, and implementing their SWM plan (Section 47). Through

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.2 Dumagete Mission Report its waste ordinance (City Ordinance 115, Series of 1998), Dumaguete imposes a “pay-as-you- throw” (PAYT) scheme, which requires generators to attach color-coded stickers to the garbage bags ready for collection; green sticker for biodegradable; red for non-biodegradable; and yellow sticker for toxic and hazardous wastes. Kitchen waste must either be directly fed to animals or stored temporarily for composting or biogas production. 17. The city government collects waste management fees from various sources and activities:  Business establishments: They are required to pay P30.00 to P500 quarterly depending on the capitalization, floor area, or type of establishment.  Special trip fee: Bulky wastes will only be collected upon payment of P200–P500 maximum per truck load as assessed by the CENRO and the General Service Office. Collection of wastes will be done upon presentation of official receipt issued by the City Treasurer’s Office.  Tipping fee or dumping fee: Wastes delivered by private entities and non-city government vehicles are accepted at the controlled dump facility upon payment of P15 per cubic meter for biodegradable waste and P30 per cubic meter for non-biodegradable waste.  Fines: The city government, through the CENRO, implements minimum and maximum fines for violations, which uses a tag system that means “no tag, no collection.” A minimum fine of P200 up to a maximum penalty of P5,000 is imposed.  PAYT scheme: The PAYT scheme requires waste generators to attach color-coded stickers to the garbage bags ready for collection. The tags can be practically bought anywhere in the city for P1.50 per sticker, much cheaper compared to the cost for cell phone text messaging spent by most of the residents per day. 18. The city revenues generated from SWM increased from P1.5 million in 2001 to P2.5 million in 2011 after the implementation of the PAYT scheme. The LGU found it also more attractive to the residents to pay local waste fees after changing the label “waste management fee” to “environmental fee.” 19. Social assessment. Public consultations have been conducted by the city government in the barangay that hosts the existing dumpsite. The approval of the barangay officials and the community has been secured. However, additional social assessment needs to be conducted in the concerned barangay and in areas along the access to the site to focus on special sectors such as women, children and the youth; gender roles; attitudes and values; and impact on livelihood, among others. 20. Resettlement and indigenous people. There are no houses around the existing dumpsite and no indigenous people will be affected by the project.

21. Waste water management. Dumaguete inaugurated the first local government-funded septage treatment plant in the Philippines during the 40th anniversary of the Earth Day celebration on 22 April 2010. The septage treatment plant was built in partnership with the local water district. The treatment facility is a low-cost, low-maintenance system made up of lagoons, a reed bed (constructed wetland), and drying beds. It is designed to treat collected wastewater before it is released to the river as clean water and solids as fertilizer. USAID provided technical assistance through its Philippine Sanitation Alliance and Local Initiatives for Affordable Wastewater Treatment (LINAW) projects.

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.2 Dumagete Mission Report

C. ASSESSMENT 1. Key SWM Challenges  Dumaguete recognizes its lack of technical capability to conduct a thorough feasibility study on SWM facility, including the engineering design, and economic and financial analysis. The LGU also needs assistance in determining the appropriate technology or mix of technologies that will ensure sustainability of the SWM system.  The LGU also admits its inability to finance such big projects, thus it is open for loans and private sector investments such as public-private partnership (PPP).  Operation of the whole SWM system will pose a very big challenge to Dumaguete, thus it is open to private sector participation through the PPP scheme. As such, the LGU needs to enhance its capability in contracts management. This needs the formulation of operational standards in all stages of the SWM system.  PPP along with ADB has suggested the creation of a separate fund mechanism to support PPP proposals from LGUs. It is acknowledged that unlike the national government agencies, LGUs have very different, if not limited, technical and financial capacities to fund pre-feasibility or feasibility studies as well as assume payment schemes for the utilization of Project Development and Monitoring Facility (PDMF) money.  According to the National Budget Circular, the Public-Private Partnership Strategic Support Fund (PPPSSF) can be used to cover the costs of right of way, resettlement, and the government’s counterpart fund in the implementation of a PPP project, among others. The PPPSSF is a lump-sum appropriation included in an implementing agency’s budget to fund the government’s share in executing PPP initiatives.  Moreover, the PPPSSF may also support the cost of designing, building, and delivering any part of the PPP project that the government will retain responsibility over, including public infrastructure in the form of access roads, utilities, and other support facilities that ensure the viability of a PPP project. The circular also specified that the PPPSSF shall not be used for expenses related to unsolicited project proposals, credits and loans to PPP private partners, and support for the regular programs of the implementing agency. 2. Bayawan City as a Model for the Improvement of SWM 22. A good and replicable SWM concept can be found in Bayawan City in the 3rd district of Negros Oriental, whose sanitary landfill and compost plant was visited by the PPTA team together with FASPO on 21 February 2013. Improvements of SWM in Bayawan City have been driven mainly by the need to comply with the legal requirements (RA 9003) and the official development assistance provided under the USAID Eco-Governance project, DILG-GIZ water program, and DENR-GIZ SWM4LGUs project. Secondly, Bayawan City expressed its intention to participate in the DENR-GIZ development project and SWM4LGUs and consequently received a 4-year technical assistance, which has resulted in environmentally and financially sustainable SWM system in Bayawan City. 3. LGU Commitment 23. The improvement of SWM, specifically waste disposal is urgent in Dumaguete. However, according to Mayor, sanitary landfill does not alone provide long-term solution

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.2 Dumagete Mission Report for Dumagete. Mayor has a clearly vision that an alternative technology (WTE) is a solution for SWM in Dumagete. 24. The National Solid Waste Management Commission (NSWMC) has reiterated its call to the mayors to step up their compliance to the solid waste management law. The compliance rate of LGUs, especially in the provinces, is pegged at roughly between 13% and 15% only. 25. During his recent visit to Dumaguete City upon the invitation of the Department of Science and Technology (DOST), NSWMC Commissioner Crispian Lao urged mayors to fully comply with RA 9003, which provides for sanitary landfills to take the place of open dumpsites. So far, only two LGUs in Negros Oriental have put up a sanitary landfill in their area. 4. Political Vulnerability 26. The SWM is not found to be vulnerable to political changes as there is an urgent need to solve SWM issues in Dumaguete. There is also a good support from DENR’s Environment Management Bureau/REC and from the Provincial Environment Officer. In addition the LGU has been a beneficiary of the GIZ SWM4LGUS program. At the cluster level, Dumaguete has not found any partner who is willing to accommodate and provide solid waste disposal services. D. CONCLUSION 27. Selecting Dumaguete City as a model for LGUs with over 132,000 people seems to be difficult due to the following reasons:  The LGUs would possibly be interested in clustering, which had previously been proposed but had not materialized due to political conflict.  Land availability remains a major concern.  There is a potential for a waste to energy facility, which should be considered as long- term solution for the SWM in Dumaguete. However, with a given timeframe, the PPTA cannot prepare any feasibility study for the PSWMSP.  Considering the urgency of SWM situation in Dumaguete, it is highly recommended that the LGU be included in the sector project program.  Project costs: Landfill mining $1.5million, collection improvement $0.1million, landfill establishment $1.8million MRF $1.2million and WTE $7million

Hannu Pelkonen TL 8115PHI

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General Santos Mission Report Annex 3.3 July 21, 2014

General Santos Mission Report

ANNEX 3.3

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General Santos Mission Report Annex 3.3 July 21, 2014

SOLID WASTE MANAGEMENT SECTOR PROJECT IN THE PHILIPPINES Mission to General Santos, 17July 2014

A. INTRODUCTION 1. In the Tripartite meeting on May 23 and later in the Write Shop on July 1 in Clark, ADB/FASPO have requested the Project Preparatory Technical Assistance (PPTA) team to find out from three to four highly urbanized cities (HUCs) to be included in the Philippine Solid Waste Management Sector Project (PSWMSP). On July 17, 2014, FASPO Advisor Raoul Littaua and PPTA TL Hannu Pelkonen visited General Santos to confirm preliminary analysis, eligibility and interest of the city for PSWMSP. The meeting was at the City Hall and attended by Mayor Ronnel Rivera, Engineer Nael Cruspero, City Planning Department Head and Engineer Teodorico Dumagan, Assistant City Administrator. 2. The main objectives of the meetings with the local government unit (LGU) officials were (i) to introduce the proposed Philippines Solid Waste Management (SWM) Sector project; (ii) to assess current SWM situation and discuss needs for technological solutions, expertise, and resources for the SWM improvement; (iii) to confirm General Santos City’s interest to participate in the project; and (iv) to validate the selection of General Santos. This mission memorandum was prepared to summarize the discussions and main findings with respect to the preparedness and interest with the project of General Santos. 3. Mr. Pelkonen introduced PSWMSP and current time table for the project. Further to assess the eligibility of city for project, Mr. Cruspero described General Santos SWM status as follows: B. SOLID WASTE MANAGEMENT 4. City Solid Wastes Management Board. The city has an active Solid Wastes Management Board which was formed in 2004. It meets on as needed basis to tackle important concerns related to SWM and review and monitor the status of implementation of the SWM plan. 5. CENRO. CENRO is no longer tasked to handle solid waste management activities. Two years ago, the City has created its Waste Management Office to handle the governance and management of solid waste and domestic waste water 6. WM plan. The city has a 10-Year SWM Plan1. It has been approved by the National Solid Waste Management Commission (NSWMC) and approved for implementation by the city council in October 2007. EcoGov, which provided technical assistance to the city government in the conduct of the feasibility and technical studies, was also assisting General Santos in the implementation of its solid waste and wastewater management programs. The EcoGov Project is a collaborative effort between USAID and the Department of Environment and Natural Resources (EcoGov2) 7. Waste analysis and characterization study (WACS). The Waste Analysis and Characterization Study conducted by the USAID-funded EcoGov2 Project in 2006 reveals that General Santos generates a total of 170 tons of waste per day (tpd), with per capita waste generation pegged at 0.44 kilos per day. The study also revealed that 65.5% of the total waste collected is biodegradable and can be composted, 15.6% is recyclable, 0.5% is

1 Read more http://www.mindanews.com/mailbox/2008/04/24/1st-gensan-recyclable-waste-fair-recovers-5000- kilos-of-wast/

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General Santos Mission Report Annex 3.3 July 21, 2014 considered as special wastes (examples are fluorescent bulbs, alkaline batteries) and only 18.4% is residual. This means that over 80% of waste can be diverted from going into the dumpsite and can still be converted into something useful. RA 9003 or the Solid Waste Management Act of 2003 mandates all local government units (LGUs) to divert at least 25% of their waste. 8. Waste generation and collection. According to the City Planning office, waste generation is today 320tpd taking into account the current population of 500,000 citizens. Waste collection efficiency is about 60% and it covers partially all barangays. High-end residential subdivisions, shopping malls, and restaurants maintain their own wastes collection contractor. Waste collection has been arranged with the private sector, barangay and mayor’s office. Industrial locators specifically and hospitals also contract the collection and disposal of their solid wastes. 9. Wastes segregation and separate collection. Due to the limited coverage of existing MRF facilities, the city is not able to implement full wastes segregation and separate collection. Only government offices and institutions are required to do wastes segregation. The public market is also required to segregate the biodegradables, which are collected and brought to the main MRF of the city. Recyclables are collected by the barangays with MRF. 10. Sanitary Landfill (SLF) is under construction. A SLF for final disposal facility including all associated infrastructure and support facilities is under construction at Barangay Sinawal, which is approximately 15 km north-west of the centre of the City of General Santos. The Land Bank of the Philippines (LANDBANK), through the World Bank's Support for Strategic Local Development and Investment Project (S2LDIP) funded the construction of General Santos City's 63-hectare sanitary landfill. The project, which will be undertaken via a Design-Build-Operate (DBO) scheme, is touted as a "state of the art" Category IV sanitary landfill. General Santos City has a PHP 293 Million loan from Land Bank to fund the sanitary landfill project. 11. The R-II Builders/Philippine Ecology Systems Consortium prepared the detailed design of the sanitary solid waste management and disposal facility. The contract consists of:  The construction of the first cell of the sanitary landfill, together with all associated infrastructure, for the disposal of municipal solid waste  The preparation of operations plan and other relevant documents required in the standard operation of the waste management and disposal facility  The operation and maintenance of the waste management and disposal facility up to 18 months, including the provision of training to the staff of the Local Government Unit – General Santos City - in all aspects of facility operation and maintenance.  Also the City is responsible in the preparation of a closure plan and the phased and progressive closure and rehabilitation of the existing municipal solid waste disposal site at Barangay Tambler 12. SLF construction started in April 2013. However, progress of the SLF contraction has been very slow. Recently, the city has engaged in negotiations with R2 Builders/Phileco to revive the project. According to Mayor Rivera his ultimate target is to complete the project by 2015. 13. Closure of Barangay Tambler dumpsite. Currently the city disposes an average 68 truckloads per day of MSW to Tambler open dumpsite.

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General Santos Mission Report Annex 3.3 July 21, 2014

 Open dumpsite around 20 km from city centre  Daily waste collection2 is about 200 tpd.  307 individuals, mostly Indigenous People (IP’s) are working on site  Severe environmental and health risk at fire and leachate

14. Department of Environment and Natural Resources-Environmental Management Bureau 12 (DENR-EMB 12) have called for the closure of the said dumpsite. The DENR- EMB 12 has provided its guideline on how to shut down the open dumpsite at Tambler.

2 See more at: http://news.pia.gov.ph/index.php?article=1671377239078#sthash.q2Tu6KaS.dpuf

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General Santos Mission Report Annex 3.3 July 21, 2014

 Proper installation of fences, gas vents and sloping of the dumpsite to prevent erosion were listed in the guidelines set.  The large disposal pit at Barangay Sinawal shall serve as the new landfill the moment that the dumpsite at Tambler is closed.  Due diligence report of IP’s status is ongoing and a foundation from the city’s canning industry will provide working opportunity for all IPs. 15. The City has planned that the closure of the Tambler dumpsite shall be done in phases. The closure of the currently active phase 6 has an estimated cost of PHP 65 Million. If the city qualifies in the IPOPs project, World Bank through the Global Environmental Facility (GEF) will also post $350,000 to help subsidize the project. The City will be looking for additional assistance to fully close the Tambler dumpsite. 16. After the briefing on the PPTA of General Santos City’s SWM situation, Mayor Rivera expressed the City’s keen interest to be included in PSWMSP as a HUC. Mayor Rivera assured his commitment towards a “Clean GenSan” or “Creating a Liveable Environment for all in Gensan”. After being informed that an expression of interest is needed to be sent by the Mayor to the Director of FASPO of the Department of Environment and Natural Resources (DENR), Mayor Rivera instructed City Planning Department to prepare the LOI. C. OPPORTUNITIES AND CHALLENGES 17. Integrated Waste Management with Water and Sanitation (WS) components will enhance the “Creating a Liveable Environment for all in Gensan” daily life by contributing to improved health and well-being. Furthermore, active measures to cut down the nutrient loading from the villages to the rivers and sea shall be taken under this project. Public awareness campaign, information education and communication (IEC) and knowledge management are also important components of the project. 18. The City has a septage management ordinance mandating that all residents and businesses shall have their septic tanks regularly desludged. The City is coordinating with the General Santos City Water District to form a partnership in order to implement the first phase of desludging program to cover 6 of 26 barangays. The septage treatment facility at the neighbouring municipality of , Province will be utilized. The City and the GSCWD have agreed jointly to plan the full service coverage for septage and sewerage services. The option of looking for a suitable private sector partner is also being considered via public-private partnership (PPP). 19. SLF at Barangay Sinawal. According to Major Rivera, the SLF for waste disposal, including all associated infrastructure and support facilities will be implemented with current arrangements.

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General Santos Mission Report Annex 3.3 July 21, 2014

Closure of the dumpsite in Barangay Tambler 20. The City has filed an application for grant WB-GEF support under the DENR’s Integrated Persistent Organic Pollutants Management Project (I-POPs). The City is having difficulty in meeting some of the requirements of IPOPs due to the slow progress of the implementation of the sanitary landfill project by the contractor. 21. Waste To Energy (WTE). Globally, the energy crunch as well as soaring fuel prices has driven bio fuel demand up alongside technology development. In emerging markets especially, rural communities are rapidly urbanizing, forming new user groups of investors favouring the development of the platform for bio-fuel technologies and products. The demand for alternative fuel for CHP power plants is also growing in the Philippines. In addition WTE represents a real opportunity for concrete measures to mitigate climate change at the local level. 22. Bio-Gas Plant. Separation of bio-waste from residuals and recyclables could facilitate an establishment of the high load anaerobic digester with bio-sludge from canneries about 4ton/d of dry residuals (DR), slaughterhouse 3ton/d DR, septage sludge 2ton/d DR, piggeries 3ton/d DR and 34 ton DR from households. To save costs in sludge handling and maximize benefit from electricity production and excess heat conversion for cooling form slurry ice, the biogas plant shall be located in an appropriate place nearby the canneries. It is assumed that that bio-gas production is about 21,500m3/d. The electric capacity of CHP plant is about 2MW. 23. Combined Heat and Power (CHP) Plant. In addition, high heat value residuals of about 60tpd could generate about 1MW electricity. The Mission proposes that splitting of the waste (MRF) will be done at the SLF site and processed residual drive fuel (RDF) will be transported to an appropriate location near the grid 11.5kW of industry to avoid construction of 15km grid system. 24. LGU commitment to SWM. The commitment of General Santos to implement Republic Act (RA) 9003 is seen in the following; General Santos has a 10-Year SWM Plan approved by the NSWMC and the city council for implementation. The City Solid Wastes Management Board as well the Barangay Solid Wastes Management Committee play a very

6

General Santos Mission Report Annex 3.3 July 21, 2014 active role in the implementation of SWM in the city. Additionally, the city council is fully supportive of the implementation of SWM. However, few SWM Ordinances have been created to support the implementation of RA 9003 and other environmental initiatives of the city. 25. Model for HUCs. The City of General Santos is a suitable model for HUCs. It is a fast-growing business and industrial centre in the heart of Mindanao, where SWM system needs urgent actions. Its main problem is a massive burning open dump site in barangay Tambler where about 150 IP’s are working for livelihood from recyclables. It is anticipated that Mayor Rivera will take a full responsibility for implementation of new SLF and consequently, a closure of the dumpsite. 26. City has approved the 10-yrs SWM plan with WACS are approved. The city has been a recipient of grants for technical and environmental studies related to SWM and due diligence of IP’s from DENR and the WB. These materials will be helpful and will expedite the preparation of the feasibility for the city. 27. Conclusion. Based on the team’s assessment of candidate LGUs for HUCs using the selection criteria, General Santos city ranks ahead of the cities of Baguio and Dumaguete. 28. Initial Investment cost:  Closure of Barangay Tambler dumpsite $1.5million,  Bio-gas plant $8million including 5 sludge collection trucks  WTE 8million, MRF and Dries $1.5million and collection improvement $0.5million and waste bins $0.2million.

Hannu Pelkonen TL PPTA 8115PHI

7

PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.4 Santa Rosa Mission Report

Santa Rosa Mission Report ANNEX 3.4

1

PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.4 Santa Rosa Mission Report

SOLID WASTE MANAGEMENT SECTOR PROJECT IN THE PHILIPPINES Mission to Santa Rosa City, Laguna 25 February 2013

A. INTRODUCTION 1. After the Consultative Stakeholder Workshop on the Inception Report on 22 February 2013, the Project Preparatory Technical Assistance (PPTA) team decided to expand the number of model local government units (LGUs) to include highly urbanized cities (HUCs). Proposed to be added are the cities of Sta Rosa in Laguna and Tagum in . Atty Roberto Demigillo (Legal Specialist) and Emmanuel Vargas (Solid Waste Management [SWM] Specialist) volunteered to conduct the scoping site visit in Santa Rosa City. The visit was done on 25 February 2013. Atty. Demigillo used to work in Santa Rosa City, particularly with the present City Environment and Natural Resources Officer (CENRO), Ms. Erlinda C. Creencia, and thus easily made appointment with her. 2. After the briefing on the PPTA, the CENRO expressed her keen interest to have Santa Rosa be included in the selection for model HUC. She expressed great interest in the feasibility and other SWM studies to be conducted for the city, particularly involving available SWM technologies such as wastes to energy, new incineration technologies, and others that will not need big lands for wastes disposal that the city is having great difficulty to find. After being informed that an expression of interest will need to be sent by the mayor to the Secretary of the Department of Environment and Natural Resources (DENR), the CENRO suggested that the PPTA representatives meet with the mayor. It was fortunate that the mayor was available. 3. After a short briefing, the mayor likewise expressed her keen interest to have Santa Rosa be included in the loan project. She also promised to send the expression of interest but requested the PPTA team to provide them a sample letter. 4. After the meeting with the Mayor, the PPTA team together with Jason Bunyi, CENRO staff member, proceeded to visit the city’s main materials recovery facility (MRF) and three barangays MRFs. We also visited the Pilotage sanitary landfill in San Pedro where the city contractor for wastes collection and disposal, Pilotage Trading and Construction (PTAC), is disposing the city wastes. 5. The next section describes the situation of SWM in Santa Rosa City, including the team’s assessment of SWM practices based on the information gathered from the CENRO, the 10-Year SWM Plan, and the site inspection. B. SOLID WASTE MANAGEMENT 6. Population and barangays. Sta Rosa has a population of 284,670 as of the 2010 census. It is composed of 18 urban barangays, 3 of which are in the poblacion. 7. City Solid Wastes Management Board. The city has an active Solid Wastes Management Board which was formed in 2007. It meets on as needed basis to tackle important concerns related to SWM and review and monitor the status of implementation of the SWM plan. 8. Barangay Solid Wastes Management Committee. The formation of the Barangay Solid Wastes Management Committee was one of the first actions of the City Solid Wastes Management Board after it was established. The committee was formed in each of the 18 barangays in Sta. Rosa in 2007.

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.4 Santa Rosa Mission Report

9. SWM plan. The city has a 10-Year SWM Plan. It has been approved by the National Solid Waste Management Commission (NSWMC) and approved for implementation by the city council in October 2007. 10. Waste analysis and characterization study (WACS). WACS was conducted during the preparation of the SWM Plan. The result is presented in Table 1. Table 1: Waste Composition in Sta. Rosa City Wastes Composition (% by Weight) Wastes Low Middle High Commercial Commercial Market Indus- Offices Schools Street Income Income Income (Large) (Small) trial Sweeping Organics 54% 46% 48% 33% 38% 43% 31% 27% 26% 53%

Inorganics 3% 6% 8% 4% 15% 2% 0 9 0 9

Hazardous 0% 2% 1% 0 0 0 7% 0 0 0

Special 1% 2% 4% 1% 2% 1% 4% 0 0 0

Plastics 24% 20% 17% 32% 25% 21% 5% 16% 32% 17%

Paper 14% 16% 15% 28% 14% 27% 27% 42% 38% 14%

Glass 2% 4% 4% 2% 1% 3% 0 1% 0 3%

Metal 2% 4% 3% 3% 5% 3% 26% 5% 4% 4%

% of Total 9% 10% 10% 10% 12% 10% 9% 11% 9% 10%

Source: 10-Year Comprehensive Ecological Solid Wastes Management Plan of Sta Rosa City. 11. Estimated average per capita wastes generation based on the WACS conducted in 2004 was 0.60 kilogram (kg) per day. 12. CENRO. The city created a regular plantilla position for CENRO with a separate office in 2000. The office presently maintains 4 technical and 30 non-technical staff members, some of which are on job contract. 13. Coverage of collection. Wastes collection covers all the 18 barangays, including most of the private residential subdivisions. High-end residential subdivisions, shopping malls, and restaurants maintain their own wastes collection contractor. Industrial locators and hospitals also contract the collection and disposal of their solid wastes, including treatment of special wastes. 14. Wastes segregation and separate collection. Due to the limited coverage of existing MRF facilities, the city is not able to implement full wastes segregation and separate collection. Only government offices and institutions are required to do wastes segregation. The public market also is required to segregate the biodegradables, which are collected and brought to the main MRF of the city. Recyclables are collected by the barangays with MRF. 15. Collection of wastes has been contracted by the city with PTAC, which operates the Pilotage sanitary landfill. The contract is for total clean-up, requiring PTAC to collect all wastes from the entire city including from the low- and middle-income residential subdivisions. 16. The schedule of wastes collection is presented in Table 2.

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.4 Santa Rosa Mission Report

Table 2: Schedule of Wastes Collection in Sta. Rosa City

Source: 10-Year Comprehensive Ecological Solid Wastes Management Plan of Sta Rosa City.

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.4 Santa Rosa Mission Report

17. Facilities. While Sta. Rosa has allocated an initial budget of P5 million for barangay MRF facilities, only 4 out of the city’s 18 barangays have established their MRF due to the difficulty of finding a suitable site for MRF. The barangays with MRF are 1. Tagapo - The MRF is situated in the lot owned by the chairman of Brgy. Sinalhan. It is operated by an Eco Manager assisted by four Eco Boys whose salaries are paid by the city government. 2. Pulong Sta Cruz - The MRF is located in a lot along the bank of Sta. Rosa River. Management of the operation is similar to that of Brgy. Tagapo, but the salaries are supplemented by revenues from the sales of recyclables. 3. Don Jose - The MRF is located in the same compound for the , Community Center, and Health Center. The MRF is used for storage and sorting of recyclables as well as for the manufacture of handicrafts from packaging wastes provided by companies located in the barangay. The barangay covers 10 with 14 residential subdivisions, and some commercial and industrial establishments. The MRF is operated by an Eco Manager assisted by 30 Eco Boys: three Eco Boys are responsible for the collection of recyclables per purok. Each kilogram of recyclables is exchanged for a kilogram of rice. The salaries of the Eco Manager and the Eco Boys are paid by the barangay. 4. Caingin – The team was not able to visit the barangay MRF due to time constraint. 18. In addition to the four barangay MRFs, Sta. Rosa has a central MRF in Brgy. Sinalhan, which has three DOST bioreactors of 4-ton capacity each and a set of equipment for charcoal briquetting. During the visit, each bioreactor was only processing 1 ton of waste per day--the amount of biodegradeables for composting that was collected from the public market. Coconut wastes coming from the public market are made into charcoal briquettes. Total daily production of charcoal briquettes during the visit was 40 kgs. 19. Disposal facility. There is no disposal facility inside the city as there is no available site big enough to host it. The city disposes of its wastes into the Pilotage sanitary landfill located in Brgy. San Antonio, San Pedro. The disposal facility cannot be considered a sanitary landfill, however, because it lacks the safety features to prevent contamination of the ground water. 20. The disposal facility’s exposed wall and bottom does not show the installation of a geomembrane liner to prevent leachate from percolating into the ground. It also does not have any leachate treatment facilities, and according to the disposal supervisor, the leachate is just re-circulated. No installation to provide for re-circulation however has been noted on the site. There is also no weigh bridge for measuring accurately the amount of wastes that are disposed of. According to the facility staff that accompanied the PPTA team at the disposal area, at least 150 truckloads of wastes are disposed of at the facility daily. At an average of 23 cubic meters (c3) per truck, assuming density of mixed wastes at loaded truck of 0.30 ton/c3, this is equivalent to more than 1,000 ton/day which requires a Category 4 sanitary landfill. 21. Since the Pilotage sanitary landfill--the present disposal facility of Sta Rosa--does not meet the required standard for disposal facilities, it may later be prevented from receiving wastes by the Laguna Lake Development Authority (LLDA). This will pose a huge environmental problem not only to Sta Rosa but also to the neighboring cities of San Pedro, Binan, and Calamba, which dispose of their wastes in the Pilotage sanitary landfill.

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.4 Santa Rosa Mission Report

22. Potential for clustering with adjacent municipalities Recognizing the need for a disposal site for the city, the mayor of Sta Rosa has made initial discussions with the neighboring municipality of Silang where there are vast tracks of lands suitable for a sanitary landfill. The results of these initial discussions with the incumbent mayor of Silang have been favourable. 23. Potential for developing wastes to energy facilities. Technological advances relevant to wastes to energy conversion have allowed not only organic-based wastes but also raw municipal solid wastes to be used. There are now available wastes to energy system that has capability to process municipal solid wastes without the need for pre- processing the wastes. 24. This waste to energy facilities will not need big sites unlike the requirements for sanitary landfill. This is an attractive alternative for improving the SWM of the city as it has potential for earning revenues not only from the energy produced but also from clean development mechanism1. 25. Political vulnerability. The incumbent mayor of Sta. Rosa is only on his second term and many believe that she will win her reelection. However, since the incumbent mayor of Silang is already in his last term, the initial positive discussions between the two mayors about Silang’s hosting a sanitary landfill for Sta. Rosa may be affected by the results of the upcoming elections. But if the daughter of the incumbent mayor of Silang wins the mayoral race, these initial discussions may bear concrete results. Additionally the city has an existing environmental code that mandates the implementation of an integrated SWM and pollution control and the city’s SWM Plan. 26. LGU commitment to SWM. The commitment of Sta. Rosa to implement Republic Act (RA) 9003 is seen in the following. Sta. Rosa has a 10-Year SWM Plan approved by the NSWMC and the city council for implementation. It is probably one of the first HUCs that have created a CENRO with a separate office right after the affectivity of RA 9003. 27. The City Solid Wastes Management Board as well the Barangay Solid Wastes Management Committee plays a very active role in the implementation of SWM in the city. Additionally, the city council is fully supportive of the implementation of SWM and has in fact passed Ordinance 1720-2011 or the Environmental Code of the City of Santa Rosa to support the implementation of RA 9003 and other environmental initiatives of the city. The city is probably one of the first, if not the only HUC in the Philippines,that has enacted an Environmental Code. 28. In order to collect and dispose of wastes properly, Sta Rosa has entered into a clean- up contract with PTAC, which is costing the city about P54 million yearly. 29. Suitability as a model for HUCs. The City of Sta. Rosa is a suitable model for HUCs because its main problem in the effective implementation of SWM, like most HUCs, is the non-availability of lands for SWM facilities. How Sta. Rosa will solve the problem through the project will serve as model for other HUCs, particularly the neighbouring cities. Sta Rosa is in a good position to provide impact because its neighbouring cities, which are the immediate LGUs likely to follow her example, are some of the big HUCs in the Calabarzon. This area is right next to Metropolitan Manila, which is the largest wastes generator in the country. 30. Financial capacity to implement SWM programs. The city belongs to the billionaires club, or the LGUs with yearly income of more than P1 billion. Notwithstanding its

1 Carbon Credit

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.4 Santa Rosa Mission Report multitude of ongoing projects, some of which may be implemented by funding from existing loans, the city has enough financial capacity to pay for loans to implement SWM programs . 31. Suitability for feasibility study. The WACS is due for updating by the CENRO. The city has been a recipient of grants for technical and environmental studies related to SWM. These materials will be helpful in the preparation of the feasibility for the city. Additionally, the city has committed to provide necessary counterpart and support staff for the preparation of the feasibility study. In summary, the city is equipped and prepared for the feasibility study. 32. Possible environmentally critical situation. The present disposal site for the city, the Pilotage sanitary landfill, is located in San Antonio, San Pedro, which is about 25 km to 35 km by road travel depending on the route taken. The site was inspected during the scoping visit to Sta Rosa and was assessed to be not in compliance with regulatory standards for the quantities of wastes accepted by the facility. If this disposal facility is issued an Environmental compliance certificate Violation Notice and closed, the city will be in great difficulty because it has no alternative disposal site for its wastes. 33. Conclusion. Based on the team’s assessment of candidate LGUs for HUCs using the selection criteria, Sta. Rosa ranks ahead of the cities of Baugio and Dumaguete. 34. Investment cost: Landfill $3million, WTE 14 million, MRF and Drier $1.4million and collection improvement $0.4million and waste bins $0.1million.

Hannu Pelkonen

TL PPTA 8115PHI

7

PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.5 Zambonga City

Zambonga City SWM Proposal ANNEX 3.5

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.5 Zambonga City

SOLID WASTE MANAGEMENT EXPANSION PROGRAM OF ZAMBOANGA CITY

As of October 2014

A. Brief Information:

 The City is currently estimated to generate approximately 300 tons per day.  Average waste collected and disposed in landfill is 160 tons per day. Waste collection service covers all the 31 urban barangays and 8 rural barangays.  61 percent is biodegradable wastes and 39 percent for non-biodegradable wastes.  Provision of waste collection services are shared by the city government and some barangays as shown on the ff. tables.

Table 1: Core Area Shared Collection Services Barangays Waste Collection Vehicle Provision of fuel Manpower Brgy. Trucks & Status Coverage OCENR OCENR OCENR Main Road Baliwasan 1 running; 1 Service Barangay Barangay Barangay Contract Remaining Areas Calarian Barangay (Driver OCENR Barangay OCENR) 3 down Entire Brgy Camino Nuevo Campo OCENR OCENR OCENR Main Road Canelar OCENR OCENR Barangay 1 down Interior Divisoria along hi-way OCENR OCENR OCENR Main Road Guiwan Barangay Barangay Barangay 1 running; 1 down Remaining Areas Kasanyangan Lunzuran Mariki OCENR OCENR Barangay Entire Brgy Barangay Barangay Barangay 2 running units OCENR OCENR OCENR Main Road Private Private Private Contracted Service Remaining Areas Rio Hondo San Jose Cawa- Cawa OCENR OCENR OCENR Designated Route San Jose Gusu Barangay Barangay Barangay 1 runnning & 1 reserved Remaining Areas OCENR OCENR Barangay San Roque 1 down; 1 running; 1 to Entire Brgy Barangay Barangay Barangay be delivered Sta. Barbara OCENR OCENR OCENR Designated Route Sta. Catalina OCENR Barangay Barangay Barangay Barangay Barangay 1 down & 1 running OCENR Barangay Barangay Sta. Maria Entire Brgy Barangay Barangay Barangay 2 running units Sto. Niño 2

PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.5 Zambonga City Driver OCENR & Talon-Talon OCENR Barangay Barangay Entire Brgy Barangay Barangay Barangay 1 running; 1 down OCENR OCENR OCENR Tetuan Entire Brgy Barangay Barangay Barangay 3 running units Tugbungan OCENR OCENR Barangay 1 down Entire Brgy OCENR OCENR OCENR Designated Route Tumaga OCENR OCENR Barangay Remaining Areas Barangay Barangay Barangay 2 running unit Entire Brgy Zone I Zone II Zone III Zone IV

Table 2: Expansion Area

Collection Services Barangays Waste Collection Provision of Brgy. Trucks & Coverage Vehicle fuel Manpower Status (Schedule) Designated Route(Every OCENR Barangay OCENR No Garbage Truck Saturday) Cawit Designated Route OCENR OCENR OCENR 1 down (Tue, Thur & Sat) Recodo Designated 1 down; 1 newly Route/pick-up OCENR OCENR OCENR acquired points (Daily) Sangali Designated Route OCENR OCENR OCENR 1 down (Every Tuesday) Taluksangay Designated Route OCENR OCENR OCENR No Garbage Truck (Every Friday) Tulungatung Designated Route OCENR OCENR OCENR No Garbage Truck (M-W-F) Designated Pick-up Sinunuc OCENR OCENR OCENR 1 running; 1 down Points (Daily)

Mampang Barangay Barangay Barangay 1 running Entire barangay

 Four Material Recovery Facilities are being operated by city using the happy soil technology for composting.  The city is currently operating a 4.6 hectares controlled disposal facility located at Barangay Lumbangan, this City.  The establishment/construction of a new sanitary landfill facility (phase 1) is ongoing and more or less 90% completed. Located in barangay salaan, this city.

Currently, Phase 1 of the construction/establishment of a Sanitary Landfill Facility at Barangay Salaan is ongoing under two (2) contracts. The first contract amounting to Php65M is already completed covering the construction of landfill area/waste retaining facility (Cell No. 1), liner facility, leachate collection facility, and leachate treatment facility. While, the second contract amounting to some Php10M covering the construction of site/administration office, stormwater drainage facility, gas venting facility, access roads, fencing and security, signages and monitoring facilities

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.5 Zambonga City (ground water monitoring well) is more or less 90% completion. The completion and operationalization of said facility is expected to be on last quarter of 2014

 Both disposal facilities are being managed and operated by the City Government thru the Office of the City Environment and Natural Resources (OCENR)

B. Overview of 10-yrs SWM Plan:

In compliance with the mandates of Republic Act No. 9003 known as the Ecological Solid Waste Management Act of 2000, the City Government of Zamboanga has formulated a ten (10) years City’s Solid Waste Management (CSWM) Plan. It was subsequently adopted by the dated October 6, 2005 and duly approved by the National Solid Waste Management Commission last March 4, 2010. The Zamboanga City SWM System has the following approaches: (i) waste segregation and reduction at source, (ii) information, education and communication (IEC) campaign; (iii) waste collection and transfer; and (vi) final disposal:

Solid Waste Management Plan Conceptual framework

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.5 Zambonga City

Annual Budget for SWM PROGRAM (C.Y. 2014)

Garbage Collection 2014 PERSONAL SERVICES 9,064,904.72 MAINTENANCE AND OTHER OPERATING EXPENSES Gasoline, Oil, and Lubricants Expenses 12,082,846.00

Other Supplies Expenses 428,759.82

Repairs and Maintenance - Motor Vehicles -

Repairs and Maintenance - Other Transportation Equipment 1,782,834.00

Insurance Expenses 541,765.83 5

PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.5 Zambonga City

Other Maintenance and Operating Expenses 185,000.00 OMOE (Contract Workers) 3,640,416.00 18,661,621.65 CAPITAL OUTLAY - TOTAL FOR GARBAGE COLLECTION 27,726,526.37 Total PS and MOOE 27,726,526.37 2,813.45 O&M of Material Recovery Facilities PERSONAL SERVICES 1,268,679.12 MAINTENANCE AND OTHER OPERATING EXPENSES Gasoline, Oil, and Lubricants Expenses 1,146,667.00

Other Supplies Expenses 5,925,274.00

Water Expenses 112,000.00

Electricity Expenses 749,333.00

Repair and Maintenance - Other Machinery and Equipment 720,000.00

OMOE (Contract Workers) 4,733,664.00 13,386,938.00 CAPITAL OUTLAY 402,000.00 TOTAL FOR MRF OPERATION 15,057,617.12

Landfill Operation PERSONAL SERVICES 839,103.56 MAINTENANCE AND OTHER OPERATING EXPENSES Gasoline, Oil, and Lubricants Expenses 4,672,000.00

Other Supplies Expenses 2,306,000.00

Water Expenses 40,000.00

Electricity Expenses 106,667.00

Repair and Maintenance - Construction and Heavy Equipment 3,059,961.00

OMOE (Contract Workers) 747,552.00 10,932,180.00

CAPITAL OUTLAY 8,000,000.00

TOTAL FOR LANDFILL OPERATION 19,771,283.56

Total Personal Services 11,172,687.40

Total Maintenance and Other Operating Expenses 42,980,739.65

Total Capital Outlay 8,402,000.00

TOTAL ANNUAL APPROPRIATION 62,555,427.05

Cost Estimates in $US for extension of SWM services in Zambonga City:

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PPTA 8115 Philippines Solid Waste Management Sector Project Annex 3.5 Zambonga City Construction of Material Recovery Facility in the new SLF site 470,000 Establishment of a Transfer Station at west coast of the city* , see below 300,000 Closure of Controlled Disposal facility at barangay Lumbangan. 500,000 Transfer Station in the existing Lumbangan MRF 300,000 Expansion and upgrading of waste collection system. 250,000 Posssible WTE componet 2MW 9,000,000 Total $US 10,820,000

* Typical transfer without compaction Figure 1: Example for transfer in open semi‐trailer and transport

Steps: 1. Transfer 2. Transfer‐vehicle 70 m³ 3. Disposal at landfill1

1. Such a transfer station usually has several tipping places into several containers or semi-trailers. 2. Often the MW is slightly compacted by a wheeleed loader, before shipping. Depending on whether the waste already was compacted in a wasste collection vehicle or whether it was delivered loose on open trucks or by companies, the density in these containers can vary between 50 kg/m³ and 300 kg/m³. In the area most of the MW will be delivered with compaction RCVs2, which usually unload a MW of a density of 200 to 300 kg/m³. 3. The MW is then transported by truck-trailers, transporting 2 containers of 40 m³ each, or about 16 to 20 t in total or walking floor semi-trailers with 100 m³, transporting 18 to 22 t, depending on the density of MW. 4. Sometimes the transfer is not done directly, but indirectly,, giving waste scavengeers a chance for picking recyclable materials as well as to buffer the fluctuating quantity of MW delivered especially during the peak hours or delivery, and to optimise the number of containers or semi-trailers needed. 5. If the station is located close to residential areas, it needs to be housed, in order to prevent odour problems.

1 Source: Transfer Station Swistal-Miel, Germany 2 Residues Compaction Vehicle 7

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

List of Open and Controlled Dumpsites ANNEX 4

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

National Solid Waste Management Commission Office of the Secretariat List of OPEN Dumpsites Total: 602 in the beginning of 2013 Location LGU Province Region 174 OD with ATC Brgy Caraitan 1 Brgy #31 Camadingan City Ilocos Norte 1 Brgy Agaga Burgos Ilocos Norte 1 Brgy Paltoc 1 Brgy Poblacion Ilocos Sur 1 Brgy Baringcucurong Suyo Ilocos Sur 1 Brgy Central West 1 Brgy Damortis Santo Tomas La Union 1 Brgy Allilao Pangasinan 1 Brgy Dacumot San Jacinto Pangasinan 1 Brgy Nangapogan San Quitin Pangasinan 1 Brgy Bayaoas(Amaronan) Pangasinan 1 Sitio Kalamwasan, Brgy Sta. Rosa 2 Brgy Banguian Cagayan 2 Brgy Maraburab Alcala Cagayan 2 Brgy Daan-lili Cagayan 2 Brgy Centro West and Pattao Cagayan 2 Brgy Culao Claveria Cagayan 2 Brgy Aguib Piat Cagayan 2 Brgy Sampaguita Solana Cagayan 2 Brgy Carig Norte City Cagayan 2 Brgy Dagupan Alicia Isabela 2 Sitio Subasta, Brgy Saranay Aurora Isabela 2 Sitio Subasta, Brgy Saranay Cabatuan Isabela 2 Brgy Tagisi Namnama Ilagan (Capital) Isabela 2 Brgy San Miguel Ramon Isabela 2 Brgy Sta. Filomena San Mariano Isabela 2 Brgy Arcon Isabela 2 Sitio Hilltop, Brgy Nagsabaran 2 Sitio Bliss, Brgy Malasin Nueva Vizcaya 2 Brgy Alloy(Poblacion) Nueva Vizcaya 2 Brgy Rang-ayan Aglipay 2 Purok 4, Brgy San Marcos Quirino 2 Brgy Salvacion Quirino 2 Malaking Bato, Brgy Mabatang 3 Sitio Mamala, Brgy St Francis I Bataan 3 Brgy Ipag Bataan 3 Brgy Gen. Lim Orion Bataan 3 Sitio Bambang, Brgy San Juan Samal Bataan 3 Brgy Mambog Malolos City Bulacan 3 Brgy Valle Cruz Cabanatuan City Nueva Ecija 3 Brgy Concepcion Cabiao Nueva Ecija 3 Brgy R.A. Padilla Nueva Ecija 3 Brgy Bonifacio Nueva Ecija 3 Pollilio, Brgy Poblacion San Isidro Nueva Ecija 3 McArthur Highway, Brgy Sulipan Apalit Pampanga 3 Putol, Brgy Bebe Anac Pampanga 3 Brgy Sta Catalina Minalin Pampanga 3 2

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy San Agustin Santa Ana Pampanga 3 Brgy San Matias Santo Tomas Pampanga 3 Brgy Dapdap (Acocolao) Tarlac 3 Brgy Lanat San Manuel Tarlac 3 Brgy Nagbayan (Poblacion) Zambales 3 So. Tubo-tubo, Brgy Burgos San Antonio Zambales 3 Brgy Manglicmot San Felipe Zambales 3 Sitio Mambog, Brgy Linasin Zambales 3 Brgy San Narciso Zambales 3 Brgy Tubo-Tubo South Santa Cruz Zambales 3 Brgy Calapacuan Subic Zambales 3 Brgy Sahod Ulan Tanza Cavite 4a Brgy San Miguel Alaminos Laguna 4a WARM, Brgy Paciano Rizal (Pook Bay Laguna 4a Brgy Ibabang Palina Laguna 4a Brgy Sta Catalina Laguna 4a Brgy Anibong Laguna 4a Brgy Burgos Laguna 4a Brgy Sulib Laguna 4a Brgy San Isidro Ibaba General Luna Quezon 4a Brgy Antipolo Quezon 4a Brgy Pinagbayanan Pitogo Quezon 4a Brgy Ilayang Owain Sampaloc Quezon 4a Sitio Bunot, Brgy Lunsad Binangonan Rizal 4a Brgy Upper Mapakla (Special District) Jala-Jala Rizal 4a So Bugarin Brgy Halayhayin Pilillia Rizal 4a Brgy Bayanan Pola Oriental 4b Brgy Magsaysay Santa Fe 4b Brgy Banao Albay 5 Brgy Sua Albay 5 Brgy Peñafrancia (Locsin) Albay 5 Brgy Poblacion Rapu-rapu Albay 5 Brgy Salvacion Santo Domingo Albay 5 Brgy Bibirao 5 Brgy Masalong Labo Camarines Norte 5 Brgy Tugos Camarines Norte 5 Brgy Calangcawan Sur Camarines Norte 5 Brgy Siramag / Laganac Camarines Sur 5 Brgy San Vicente Bato Camarines Sur 5 Brgy Comadaycaday Camarines Sur 5 Brgy La Opinion Camarines Sur 5 Brgy San Vicente Ocampo Camarines Sur 5 Brgy San Isidro Camarines Sur 5 Brgy Coyaoyao Tigaon Camarines Sur 5 Brgy Bagong Sirang Baras 5 Brgy Oga Pandan Catanduanes 5 Brgy Sta. Ana Panganiban (Payo) Catanduanes 5 Brgy Canvañez Batuan 5 Pulang Bato, Brgy Kinamaligan Masbate 5 Brgy Umabay Exterior Mobo Masbate 5 Brgy Silangan San Fernando Masbate 5 Brgy Lungib Casiguran 5 Brgy San Isidro Sorsogon 5 Brgy Caditaan Magallanes Sorsogon 5 Brgy San Antonio Sorsogon 5 Brgy Poblacion III 6 Brgy Cristina 6 3

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Sitio Balagon, Brgy Badiang Anilao Iloilo 6 Brgy Licuan Iloilo 6 Brgy Calaguhan Batad Iloilo 6 Brgy Alabidhan Iloilo 6 Brgy Ilayan Calinog Iloilo 6 Brgy Anonoo Iloilo 6 Brgy Signe Iloilo 6 Brgy Tuburan Janiuay Iloilo 6 Brgy MV Hechanova Leganes Iloilo 6 Brgy Velasco Lemery Iloilo 6 Brgy Pandan Leon Iloilo 6 Brgy Magsaysay Iloilo 6 Brgy Aminoy Mina Iloilo 6 Brgy Paga San Enrique Iloilo 6 Brgy Consuelo Ilog Negros Occidental 6 Zone III, Brgy Catubla Talisay City Negros Occidental 6 Sitio Bunacan, Brgy Salamanca Toboso Negros Occidental 6 Brgy National High Way (Ayungon) Valladolid Negros Occidental 6 Brgy Roxas Bilar 7 Brgy Bonbon Bohol 7 Bgy Buenavista Bohol 7 Brgy Moto Sur Loon Bohol 7 Calinginan Norte Sevilla Bohol 7 Sitio Candaitm, Brgy Cadampas Tagbilaran City Bohol 7 Brgy Pajo Daanbantayan Cebu 7 Brgy Bairan Naga City Cebu 7 Sitio Kamangahan, Brgy Himinsula San Francisco Cebu 7 Brgy Lubo Sogod Cebu 7 Sitio Malapagyao, Brgy Kabulakan Santa Catalina Negros Oriental 7 Brgy Cangmating Sibulan Negros Oriental 7 Brgy Bong-ao Valencia (Luzuriaga) Negros Oriental 7 Brgy Julag Balangkayan 8 Sitio Cabacungan, Brgy San Pedro Quinapondan Eastern Samar 8 Sitio Mudboronay, Brgy Buenavista Leyte 8 Brgy Taytagan Bontoc 8 Brgy Tubuan Hinunangan Southern Leyte 8 Brgy Navalita Hinundayan Southern Leyte 8 Sitio Doangan, Brgy Poblacion Liloan Southern Leyte 8 Brgy Comdabo Maasin City Southern Leyte 8 Brgy Tubod Silago Southern Leyte 8 Purok 2, Brgy Poblacion La Libertad 9 Brgy Upper Baluran Imelda 9 Brgy Tugaya Valencia City Bukidnon 10 Brgy Curvada Kapatagan 10 Brgy Mamanga Daku Plaridel 10 Brgy Matangad 10 Brgy Gen Luna Carmen North Cotabato 12 Brgy Cabpangi North Cotabato 12 Sitio Bangaan, Poblacion North Cotabato 12 Brgy Manubuan North Cotabato 12 Brgy Malamote North Cotabato 12 Brgy Magallon M'Lang North Cotabato 12 Brgy Fort Pukit North Cotabato 12 Brgy Bales (Poblacion) Maasim Sarangani 12 Sitio Os-os, Brgy Poblacion 1 Buenavista 13 Sitio Montallo, Brgy Kinabjangan Agusan del Norte 13 Sitio Masapia, Brgy Consuelo 13

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Sitio Domoyog, Brgy Poblacion 1 La Paz Agusan del Sur 13 Brgy Awa Agusan del Sur 13 Brgy Nuevo Trabajo San Luis Agusan del Sur 13 Brgy New Mabuhay (site2) Dinagat 13 Sitio Dapya, Brgy San Antonio (Albor) Dinagat Islands 13 Brgy Poblacion 1 Burgos Surigao del Norte 13 Sitio Pangi, Brgy Upper Ladgaron Claver Surigao del Norte 13 Brgy Poblacion 11 Dapa Surigao del Norte 13 Brgy Poblacion 5 General Luna Surigao del Norte 13 Sitio Bantolinao, Brgy Ganayon 13 Brgy San Jose (Capital) Surigao del Sur 13 Brgy Dilag Tabuk City (Capital) Kalinga CAR 407 Open Dumpsite Sitio, Sinidangan, Brgy Poblacion Adams Ilocos Norte 1 Brgy Valenciano Ilocos Norte 1 Brgy Lyara Marcos Ilocos Norte 1 Brgy San Cristobal Ilocos Norte 1 Brgy Poblacion Norte (Ul-Uling) Gregorio del Pilar Ilocos Sur 1 Brgy Poblacion(new site) Quirino (Angkaki) Ilocos Sur 1 Brgy Poblacion (new) Salcedo (Baugen) Ilocos Sur 1 Brgy Darao San Juan (Lapog) Ilocos Sur 1 Brgy Darao San Juan (Lapog) Ilocos Sur 1 Brgy Tangaoan Santa Maria Ilocos Sur 1 Brgy Poblacion Ilocos Sur 1 Brgy Poblacion La Union 1 Brgy Aguilar Pangasinan 1 Brgy San Pedro III Alcala Pangasinan 1 Brgy Dumpay Pangasinan 1 Brgy Laguit-Padilla Pangasinan 1 Brgy Bonuan Buquig (Gueset) Dagupan City Pangasinan 1 Brgy Quibaol (Capital) Pangasinan 1 S, Banaba, Binday San Fabian Pangasinan 1 Brgy Barangobong Pangasinan 1 Brgy Bayaoas Pangasinan 1 Brgy Radiwan Ivana Batanes 2 Brgy Marbob Cagayan 2 Brgy La Sallette Isabela 2 Brgy Capirpiriwan Cordon Isabela 2 Brgy Aguinaldo Naguinlian Isabela 2 Brgy Santos San Agustin Isabela 2 Brgy Centro I Isabela 2 Brgy San antonio (Bliss) Santa Maria Isabela 2 Sitio Ulingan, Brgy Banawang Bataan 3 Sitio Karing, Brgy Pagalangang Bataan 3 Brgy Mabayo Morong Bataan 3 Brgy Timoc Morong Bataan 3 Brgy Pag-asa Bataan 3 Public Cemetary, Brgy Bambang Bulacan Bulacan 3 Brgy Abulalas Hagonoy Bulacan 3 Brgy Longos Pulilan Bulacan 3 Brgy Alagao San Ildefonso Bulacan 3 Brgy Santiago Aliaga Nueva Ecija 3 Mun Agri Center, Brgy Tagumpay Gabaldon Nueva Ecija 3 Brgy San Pedro Nueva Ecija 3 Brgy Culong Nueva Ecija 3 Brgy Villa Aquino Nueva Ecija 3 Brgy San Felipe Llanera Nueva Ecija 3 5

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Namulandayan Nueva Ecija 3 Brgy Atate City Nueva Ecija 3 Brgy San Juan Nueva Ecija 3 Brgy II Quezon Nueva Ecija 3 Brgy San Gregorio Rizal Nueva Ecija 3 Brgy Luyos San Antonio Nueva Ecija 3 Brgy Tagumpay San Leonardo Nueva Ecija 3 Brgy Baloc Santo Domingo Nueva Ecija 3 Sto Rosario Young Zaragoza Nueva Ecija 3 Brgy Margot Angeles City Pampanga 3 Brgy Tabuan Arayat Pampanga 3 Palakot, Brgy San Jose Floridablanca Pampanga 3 Pasig Putrero Dike, Brgy San Rafael I Guagua Pampanga 3 Brgy Sta Catalina Lubao Pampanga 3 Brgy Duquit Mabalacat Pampanga 3 Brgy Tabun (near Sapang Belen) Mabalacat Pampanga 3 Brgy Bitas, San Vicente Macabebe Pampanga 3 Brgy Manuali Porac Pampanga 3 Brgy Sto Tomas (Bridge) San Luis Pampanga 3 Brgy Dila-dila Santa Rita Pampanga 3 Santa Monica Sasmuan (Sexmoan) Pampanga 3 Brgy Tangcarang Tarlac 3 Brgy Naya Pura Tarlac 3 Brgy Baquilan Zambales 3 Brgy New San Juan Zambales 3 Brgy Pinagrealan Candelaria Zambales 3 Sitio Calaokan, Brgy Bangantalinga Iba (Capital) Zambales 3 Sitio Babon, Brgy Sta. Rita Zambales 3 Brgy Dampay Salasa Zambales 3 Brgy San Jacinto Agoncillo Batangas 4a Brgy Munting Coral Calaca Batangas 4a Brgy Poblacion 1 Laurel Batangas 4a Brgy Lemery Batangas 4a Brgy Sta Ana(Poblacion) Mabini Batangas 4a Brgy Dayap Batangas 4a Brgy Escribano San Juan Batangas 4a Brgy Balimbing (Banaba) San Pascual Batangas 4a Brgy Salawag (ARCI Enterprises) Dasmarinas Cavite 4a Brgy Lumpia General Emilio Cavite 4a Brgy Tapia General Trias Cavite 4a Brgy Batong Dalig Cavite 4a Brgy Maitim Segunda Tagaytay City Cavite 4a Brgy Anglas Laguna 4a Brgy Salang Bato Laguna 4a Brgy San Diego Laguna 4a Brgy Lewin Laguna 4a Brgy San Miguel Laguna 4a Brgy Ilog Magdalena Laguna 4a Brgy Sta Catalina Quezon 4a Brgy Dinamasagon Buenavista Quezon 4a Sitio Butanan, Brgy San Rafael(Poblacion) Quezon 4a Brgy Sto Domingo Quezon 4a Brgy Dahican Quezon 4a Brgy Danlagan Batis Quezon 4a Brgy Kanlurang Mayao Lucena City Quezon 4a Sitio Malibago, Brgy Cambuga Quezon 4a Brgy Sangirin Perez Quezon 4a

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Tanauan Real Quezon 4a Brgy Pansoy San Andres Quezon 4a Brgy San Vicente Quezon 4a Brgy Muzon (San Juan) Taytay Rizal 4a Brgy Bagong Sikat Bulalacao (San 4b Brgy Linao Calatrava Romblon 4b Brgy _ Corcuera Romblon 4b Brgy _ San Fernando Romblon 4b Brgy Binitayan Albay 5 Brgy Bagsa Oas Albay 5 Sitio , Brgy Sugcad Albay 5 Brgy Pinagbobong City Albay 5 Brgy Kapipihan Tiwi Albay 5 Brgy Taisan Camarines Norte 5 Brgy Camarines Sur 5 Brgy Minalaba Camarines Sur 5 Brgy Balinad Camarines Sur 5 Brgy San Isidro West Goa Camarines Sur 5 Brgy San Rafael Camarines Sur 5 Brgy Sta Rosa Camarines Sur 5 Brgy Poblacion Pamplona Camarines Sur 5 Brgy Caranan Camarines Sur 5 Brgy Pili Camarines Sur 5 Brgy Minadongjol Sagnay Camarines Sur 5 Brgy Progreso San Fernando Camarines Sur 5 Brgy Nalayahan Camarines Sur 5 Brgy Camagong Camarines Sur 5 Brgy Quezon Catanduanes 5 Brgy Catanduanes 5 Brgy Palawig San Andres Catanduanes 5 Brgy San Vicente Viga Catanduanes 5 Brgy Poblacion Baleno Masbate 5 Brgy _ Masbate 5 Brgy Curvada Masbate 5 Sitio Caway Caway Claveria Masbate 5 Brgy Calabad Masbate 5 Brgy Iligan Esperanza Masbate 5 Brgy Dayao Masbate 5 Brgy Tawad Milagros Masbate 5 Brgy Poblacion Monreal Masbate 5 Brgy Poblacion (Dimasalang) Palanas Masbate 5 Brgy Bugang Pio V. Corpuz Masbate 5 Brgy Locso-an Placer Masbate 5 Brgy Bulod San Pascual Masbate 5 Brgy San Bernardo Sorsogon 5 Brgy Pangi Sorsogon 5 Brgy Gogon Sorsogon 5 Brgy Lablab Batan Aklan 6 Brgy Tul-an Aklan 6 So. Gubang, Brgy Guadalupe Aklan 6 Brgy Kabatanga Aklan 6 Brgy Banay-banay Malinao Aklan 6 Brgy Igdalaguit Antique 6 Brgy Ambulong Capiz 6 Brgy Indayagan Ma-ayon Capiz 6 Brgy Balatucan Capiz 6 Brgy Binantucan Pontivedra Capiz 6

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Sitio Baklayan, Brgy Habog-habog Roxas City (Capital) Capiz 6 Brgy Poblacion San Lorenzo Guimaras 6 Brgy Dasal Sibunag Guimaras 6 Brgy Maya Iloilo 6 Brgy Lo-ong Concepcion Iloilo 6 Brgy San Roque Estancia Iloilo 6 Brgy Sibacungan Iloilo 6 Brgy Bundolan San Dionisio Iloilo 6 Brgy Poblacion San Rafael Iloilo 6 Brgy Aldeguer Sara Iloilo 6 Brgy Isawan Iloilo 6 Brgy Isawan Tubungan Iloilo 6 So. Telim, Brgy Suba Calatrava Negros Occidental 6 Brgy Gahit Enrique B. Negros Occidental 6 Brgy Herminos Hinigaran Negros Occidental 6 Brgy Kansibongan Alicia Bohol 7 Brgy Talisay Anda Bohol 7 Brgy Montana Bohol 7 Brgy Boctol Bohol 7 Brgy Del Carmen Este Balilihan Bohol 7 Brgy Cambacay Batuan Bohol 7 Brgy Nueva Estrella Bienunido Bohol 7 Brgy Poblacion Bienunido Bohol 7 Brgy Bugho Bohol 7 Brgy La Mesa Bohol 7 Brgy Poblacion Catigbian Bohol 7 Brgy Bonbon Clarin Bohol 7 Brgy Buacao Clarin Bohol 7 Brgy Anislag Corella Bohol 7 Brgy Poblacion Dagohoy Bohol 7 Brgy Pobalcion Danao Bohol 7 Brgy San Miguel Danao Bohol 7 Brgy Upper Poblacion Diniao Bohol 7 Brgy Poblacion Duero Bohol 7 San Antonio Duero Bohol 7 Brgy Katungawan Sur Bohol 7 Brgy Badiang Bohol 7 Brgy Lanoy Cainsican Inabanga Bohol 7 Brgy Larapan Bohol 7 Brgy Nagsulay Lila Leonides Bohol 7 Brgy Tayong Occidental Loay Bohol 7 Brgy Alegria Loboc Bohol 7 Brgy Cogon Sur Loon Bohol 7 Brgy Ticugan Loon Bohol 7 Brgy Cambarac Mabini Bohol 7 Brgy Cawayanan Mabini Bohol 7 Brgy San Roque Mabini Bohol 7 Brgy Poblacion President Carlos P. Bohol 7 Brgy San Jose President Carlos P. Bohol 7 Brgy San Isidro (Borja) Bohol 7 Brgy Sung-on Sagbayan (Borja) Bohol 7 Brgy Cambansag San Isidro Bohol 7 Brgy Tuwang San Isidro Bohol 7 Brgy San Miguel Bohol 7 Brgy Salvador Bohol 7 Brgy Cambuac Sur Sikatuna Bohol 7 Brgy San Vicente Trinidad Bohol 7

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Cutcutan Valencia Bohol 7 Brgy Palanao Alcantara Cebu 7 Brgy Kawasan Aloguinsan Cebu 7 Sua Argao Cebu 7 Brgy San Isidro Asturias Cebu 7 Brgy Sto Nino Balamban Cebu 7 Brgy Kangdampas Barili Cebu 7 Brgy La Paz Bogo Cebu 7 Brgy Arbor Boljoon Cebu 7 Brgy Poblacion Borbon Cebu 7 Panas, Brgy Poblacion I City Cebu 7 Sitio Tuhob, Brgy Triumfo(Luyang) Carmen Cebu 7 Brgy Poblacion Cordova Cebu 7 Brgy Cotcoton Dumanjug Cebu 7 Brgy San Roque Ginatilan Cebu 7 Brgy San Agustin Madridejos Cebu 7 Brgy Sorsogon Malabuyoc Cebu 7 Brgy Umapad Mandaue City Cebu 7 Brgy Tulay Minglanilla Cebu 7 Brgy Bugho Moalboal Cebu 7 Brgy Canang (site 1) Oslob Cebu 7 Brgy Poblacion Pilar Cebu 7 Brgy Adela Poro Cebu 7 Brgy Cansayahon Ronda Cebu 7 Brgy Upper Butong Ronda Cebu 7 Brgy Poblacion Samboan Cebu 7 Brgy Kapangian San Fernando Cebu 7 Brgy Cayam and Lawis San Remegio Cebu 7 Brgy Mano San Remegio Cebu 7 Brgy Balidbid Santa Fe Cebu 7 Brgy Looc Santander Cebu 7 Brgy Sabang Sibonga Cebu 7 Brgy Lubo Tabuelan Cebu 7 Brgy Tagaytay, Olivo Tabuelan Cebu 7 Brgy Cantabaco Toledo City Cebu 7 Brgy Kalmanse Tudela Cebu 7 Brgy Jugno Amlan Negros Oriental 7 Brgy Atabay Ayungon Negros Oriental 7 Brgy Awaan Ayungon Negros Oriental 7 Brgy Sulodpan Bacong Negros Oriental 7 Brgy Banga Basay Negros Oriental 7 Brgy Cabalayongan Basay Negros Oriental 7 Brgy Dayoyo Basay Negros Oriental 7 Brgy Pangalawan Bindoy (Payabon) Negros Oriental 7 Brgy Magay Dauin Negros Oriental 7 Brgy Candaway Dumaguete City Negros Oriental 7 Balaysungayan, Poblacion Negros Oriental 7 Brgy Malusay Guihulngan Negros Oriental 7 Brgy Balaas Jimalalud Negros Oriental 7 Brgy Talayong La Libertad Negros Oriental 7 Sambag, south Poblacion La Libertad Negros Oriental 7 Brgy Batang Paniabonan Negros Oriental 7 Brgy Lumbangan Mabinay Negros Oriental 7 Brgy Butong Manjuyod Negros Oriental 7 Brgy Tupas Manjuyod Negros Oriental 7 Brgy Balayong Pamplona Negros Oriental 7 Mubog, Datagon Pamplona Negros Oriental 7

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Poblacion Santa Catalina Negros Oriental 7 Brgy Magalas Siaton Negros Oriental 7 Brgy Napacao Siaton Negros Oriental 7 Brgy Matauta Tayasan Negros Oriental 7 Brgy Poblacion Zamboanquita Negros Oriental 7 Brgy Cang-asagan San Juan Siquijor 7 Sitio Canumay, Brgy Baso 8 Brgy Manlabang Biliran 8 Brgy _ Biliran 8 Brgy 06, Poblacion Balangiga Eastern Samar 8 Brgy Camada North City Eastern Samar 8 Sitio Libon, Brgy 4 Can-Avid Eastern Samar 8 Brgy 12 Dolores Eastern Samar 8 Brgy Aguinaldo General Mc Arthur Eastern Samar 8 Brgy Sto Niño & Mayana Guiuan Eastern Samar 8 Sitio Pinasuan, Brgy San Miguel Hernani Eastern Samar 8 Brgy Taguite Lawaan Eastern Samar 8 Brgy Campakirit Maydolong Eastern Samar 8 Brgy Naparaan Salcedo Eastern Samar 8 Sitio Balud, Brgy 5 San Policarpio Eastern Samar 8 Brgy Polangi Taft Eastern Samar 8 Brgy Leyte 8 Brgy Punong Bato Leyte 8 Brgy Imelda Baybay City Leyte 8 Brgy Hibunawan Leyte 8 Brgy Tagharigue Leyte 8 Brgy Anahaw Hindang Leyte 8 Brgy Sagkahan Jaro Leyte 8 Brgy _ La Paz Leyte 8 Brgy Tuyo Macarthur Leyte 8 Brgy San Guillermo Matag-ob Leyte 8 Brgy San Salvador Matalon Leyte 8 Poblacion Zone 1 Mayorga Leyte 8 Brgy Jones Pastrana Leyte 8 Brgy Poblacion San Isidro Leyte 8 Adel Hill, Brgy Pago Tanauan Leyte 8 Brgy Kapangiban Tolosa Leyte 8 4km from Brgy Poblacion Leyte 8 Brgy _ Allen 8 Brgy _ Biri Northern Samar 8 Brgy Daranas Northern Samar 8 Brgy _ Northern Samar 8 Brgy _ Northern Samar 8 Brgy _ Gamay Northern Samar 8 Brgy _ Northern Samar 8 Brgy San Juan Mondragon Northern Samar 8 Brgy Layuhan San Jose Northern Samar 8 Brgy _ San Vicente Northern Samar 8 Brgy New City Samar 8 Poblacion 3 Daram Samar 8 Brgy Hinugacan & Pagsulhugan Gandara Samar 8 Brgy _ Samar 8 Brgy Katongtong Samar 8 Brgy Amambucale Marabut Samar 8 Brgy _ Samar 8 Brgy _ San Jorge Samar 8 Brgy _ Santa Rita Samar 8 Brgy _ Samar 8 10

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Sitio Kagabukan, Brgy Sta Cruz Pintuyan Southern Leyte 8 Brgy Cabulisan San Francisco Southern Leyte 8 Brgy San Miguel Sogod Southern Leyte 8 Brgy Baliguian Baliguian Zamboanga del Norte 9 Brgy San Roque (San Isidro) Zamboanga del Norte 9 Brgy Langatian President Manuel A. Zamboanga del Norte 9 Brgy Mitimor Rizal Zamboanga del Norte 9 Brgy Venus Sergio Osmena, Jr. Zamboanga del Norte 9 Brgy Sibuloc Zamboanga del Norte 9 Brgy Latabon Zamboanga del Norte 9 Brgy Panabutan Siraway Zamboanga del Norte 9 Brgy Lubid, Aurora Aurora 9 Brgy Bayog Bayog Zamboanga del Sur 9 Brgy Dimataling Dimataling Zamboanga del Sur 9 Brgy Leonardo Josefina Zamboanga del Sur 9 Brgy Sicade Kumalarang Zamboanga del Sur 9 Brgy Sinudyapan Lakewood Zamboanga del Sur 9 Brgy Mabuhay Molave Zamboanga del Sur 9 Brgy Pitogo Pitogo Zamboanga del Sur 9 Brgy Sagasan San Miguel Zamboanga del Sur 9 Brgy Barubuhan Sominot (Don Zamboanga del Sur 9 Brgy New Oroquita Tabina Zamboanga del Sur 9 Brgy Upper Nilo Tigbao Zamboanga del Sur 9 Brgy Poblacion Diplahan Zamboanga Sibugay 9 Brgy Overland Malangas Zamboanga Sibugay 9 Brgy Aguinaldo (Bliss) Naga Zamboanga Sibugay 9 Brgy Ali Asri Roseller T. Lim Zamboanga Sibugay 9 Brgy Talusan Zamboanga Sibugay 9 Brgy Poblacion Titay Zamboanga Sibugay 9 Brgy Purok 8 Norte Don Carlos Bukidnon 10 Upper Kinabkaban, Brgy San Roque Camiguin 10 Sitio Cocon, Brgy Poblacion Sagay Camiguin 10 Brgy Upper Sagadan Lanao del Norte 10 Brgy Bagumbayan Lanao del Norte 10 Brgy Pantar Lanao del Norte 10 Tolala Papandayan City Lanao del Norte 10 Brgy Matangcopan Pantao-Ragat Lanao del Norte 10 Brgy Poblacion Pantar Lanao del Norte 10 Brgy Pagayawan Salvador Lanao del Norte 10 Brgy Sugod Sultan Naga Lanao del Norte 10 Brgy Tubod (Capital) Lanao del Norte 10 Brgy Miray Misamis Occidental 10 Brgy Kinangay Norte Clarin Misamis Occidental 10 Brgy Alegria Misamis Occidental 10 Brgy San Roque Panaon Misamis Occidental 10 Brgy Bitibut Misamis Occidental 10 Brgy Poblacion Sugbong-Cogon Misamis Oriental 10 Brgy New Cebu North Cotabato 12 Brgy Bawing / Tambler General Santos City South Cotabato 12 Sosompit, Brgy Doongan Butuan City (Capital) Agusan del Norte 13 Brgy Bayabas Agusan del Norte 13 BrgySto Rosario Magallanes Agusan del Norte 13 Brgy Balang-balang Remedios T. Agusan del Norte 13 Brgy Katipunan City Agusan del Sur 13 Brgy Labnig Agusan del Sur 13 Sitio Cabongbongan, Brgy Poblacion Dinagat Islands 13 Brgy Wilson San Jose Dinagat Islands 13

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Gamutan Alegria Surigao del Norte 13 Brgy Suyoc Placer Surigao del Norte 13 Brgy Talisay San Benito Surigao del Norte 13 Brgy Tigasao San Isidro Surigao del Norte 13 Brgy Tangbu Santa Monica Surigao del Norte 13 Brgy San Isidro Sison Surigao del Norte 13 Brgy Tubo-tubo Surigao del Sur 13 Brgy Calaba (Capital) CAR Brgy San Isidro Lagangilang Abra CAR Brgy Manggoc Pidigan Abra CAR Brgy Gaddani Abra CAR Brgy Poblacion Benguet CAR Brgy Poblacion (Potia) Ifugao CAR Viewpoint Ifugao CAR Brgy Pindongan Ifugao CAR Brgy Montabiong (Capital) Ifugao CAR Brgy Mabatobato (Payawan) Lamut Ifugao CAR Kapanikian Kalinga CAR Brgy Calaocan Rizal (Liwan) Kalinga CAR Brgy Caluttit Bontoc (Capital) CAR

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

National Solid Waste Management Commission Office of the Secretariat List of CONTROLLED Disposal Facilities Total: 331 Location LGU Province Region 153 CDF with ATC Brgy Libtong Ilocos Norte 1 Brgy Manayon Bangui Ilocos Norte 1 Brgy Barbaquero Ilocos Norte 1 Brgy Sta. Cruz Ilocos Norte 1 Brgy Suyo Ilocos Norte 1 Brgy 54-A Lagui-Sail Laoag City Ilocos Norte 1 Brgy 22 Nagbacalan Ilocos Norte 1 Brgy Puyupuyan Ilocos Norte 1 Brgy Abucay Ilocos Norte 1 Brgy Valbuena Ilocos Norte 1 Brgy 22, San Guillermo San Nicolas Ilocos Norte 1 Brgy Maanteng Solsona Ilocos Norte 1 Brgy Daya(poblacion) Alilem Ilocos Sur 1 Brgy Bagbagotot Ilocos Sur 1 Brgy Quezon Ilocos Sur 1 Darapidap City Ilocos Sur 1 Brgy Nansuagao Ilocos Sur 1 Brgy Rosario Cervantes Ilocos Sur 1 Brgy Poblacion Norte Ilocos Sur 1 Brgy Manzante Ilocos Sur 1 Brgy San Nicolas San Esteban Ilocos Sur 1 Brgy Poblacion East San Ildefonso Ilocos Sur 1 Brgy Gabor Norte Santa Cruz Ilocos Sur 1 Brgy Suagayan Santa Lucia Ilocos Sur 1 Brgy Baybayabas Santiago Ilocos Sur 1 Brgy Sto. Tomas Santo Domingo Ilocos Sur 1 Brgy Tapao Ilocos Sur 1 Brgy San Juan West La Union 1 Brgy Bitalag La Union 1 Brgy San Jose Caba La Union 1 Brgy Sucoc Luna La Union 1 Brgy Cabaritan Naguilian La Union 1 Brgy Palina Pugo La Union 1 Brgy Lupay Sur San Gabriel La Union 1 Brgy Naguituban San Juan La Union 1 Brgy Cor-rooy Santol La Union 1 Brgy Seng-ngat La Union 1 Brgy Caoigue La Union 1 Brgy Magsaysay Agno Pangasinan 1 Brgy Dulacac Alaminos City Pangasinan 1 Brgy Banlog Pangasinan 1 Brgy Quinaoayanan Bani Pangasinan 1 Brgy Baybay-Lopez Pangasinan 1 Brgy Infanta Pangasinan 1 Brgy Bacundao Malasiqui Pangasinan 1 Brgy Banaoang Pangasinan 1 Brgy Sapang Pangasinan 1 13

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy San Eugenio Natividad Pangasinan 1 Brgy Bobonan Pozzorubio Pangasinan 1 Brgy Sta Rosa Santa Maria Pangasinan 1 Brgy Asan Sur Sison Pangasinan 1 Brgy Pangascasan Pangasinan 1 Sitio Chadpidan, Brgy San Antonio Basco (Capital) Batanes 2 Sitio Laveng, Brgy Uvoy Batanes 2 Brgy Kayvaluganan Batanes 2 Brgy Dodan Cagayan 2 Brgy San Francisco Cagayan 2 Brgy Fusina Cagayan 2 Brgy Dungeg Santa Teresita Cagayan 2 Brgy Cato Cagayan 2 Brgy Mabangug Isabela 2 Brgy San Pablo Cauayan City Isabela 2 Brgy Pangal Sur Isabela 2 Brgy Fugu Jones Isabela 2 Sitio Villa Corazon, Brgy Manano Isabela 2 Brgy San Placido Roxas Isabela 2 Brgy Old Centro Proper San Mateo Isabela 2 Brgy San Jose Santiago City Isabela 2 Brgy Aliaga Bambang Nueva Vizcaya 2 Brgy Sta Maria Nueva Vizcaya 2 Tino-on, Brgy Tindang Village Nueva Vizcaya 2 Brgy Tactac Santa Fe Nueva Vizcaya 2 Brgy Isidro Paredes (Salvacion) Quirino 2 Brgy Sapang Bayan Calumpit Bulacan 3 Brgy Makabaklay City Nueva Ecija 3 Brgy Bagong Silang Talavera Nueva Ecija 3 Brgy Sto Rosario Magalang Pampanga 3 Megadike, Brgy Lara San Fernando City Pampanga 3 Brgy Matubog Tarlac 3 Brgy Poblacion South Ramos Tarlac 3 Brgy Timmaguab Santa Ignacia Tarlac 3 Brgy New Cabalan Olongapo City Zambales 3 Brgy Pinagkurusan Batangas 4a Brgy Quilo-quilo, North Batangas 4a Brgy Maalas-as Rosario Batangas 4a Sitio Jordan, Brgy San Vicente Santo Tomas Batangas 4a Brgy Tapia General Mariano Cavite 4a Brgy Concepcion Lopez Quezon 4a Sitio Lomboy, Brgy Inabuan San Francisco Quezon 4a Sitio Nataasan, Brgy Inabuan San Francisco Quezon 4a Brgy Sampaloc II Sariaya Quezon 4a Brgy San Agustin Quezon 4a Brgy San Isidro City Camarines Sur 5 Brgy Casoocan Virac Catanduanes 5 Brgy Bato Bacon Sorsogon 5 Brgy Calomagon Bulan Sorsogon 5 Brgy Burabod Castilla Sorsogon 5 Brgy Buenavista Sorsogon 5 Brgy Poblacion Anini-Y Antique 6 Brgy San Juan Culasi Antique 6 Sitio Baklayan, Brgy Carmensita President Roxas Capiz 6 Brgy Agtatacay Dingle Iloilo 6 Brgy Binabao & Brgy Cali Iloilo 6 Brgy Gogo Estancia Iloilo 6

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Sitio Odiongan, Brgy Wari-wari Iloilo 6 Brgy Calajunan Iloilo 6 Brgy Intalwan Iloilo 6 So. Onas, Brgy Sta Cruz San Miguel Iloilo 6 Sitio Carmen, Brgy Carabolan City Negros Occidental 6 Brgy 1 Hinoba-an (Asia) Negros Occidental 6 Brgy Balabag La Carlota City Negros Occidental 6 Brgy Madua Norte Duero Bohol 7 Sitio Soong, Brgy Mactan Lapu-Lapu City Cebu 7 Brgy Sta. Cruz Liloan Cebu 7 Sitio Candanqui, Brgy Azarga City Negros Oriental 7 Brgy Jubas Libagon Southern Leyte 8 Brgy Bogabongan Bacungan (Leon B. Zamboanga del Norte 9 Brgy Poblacion Zamboanga del Norte 9 Brgy Poblacion Mutia Zamboanga del Norte 9 Brgy Dionum Pinan (New Pinan) Zamboanga del Norte 9 Brgy San Antonio Polanco Zamboanga del Norte 9 Brgy Poblacion Siayan Zamboanga del Norte 9 Brgy Baga Dumalinao Zamboanga del Sur 9 Brgy Lipawan Dumingag Zamboanga del Sur 9 Sitio Centro, Brgy Sininan Kabasalan Zamboanga Sibugay 9 Brgy Manilao Mabuhay Zamboanga Sibugay 9 Brgy Poblacion Olutanga Zamboanga Sibugay 9 Brgy Mirangan Siay Zamboanga Sibugay 9 Brgy Sagbayan Bukidnon 10 Brgy Mate Bacolod Lanao del Norte 10 Brgy Santiago Iligan City Lanao del Norte 10 Brgy Maliwanag Lanao del Norte 10 Brgy Poblacion Sapang Dalaga Misamis Occidental 10 Brgy Carmen Cagayan De Oro Misamis Oriental 10 Brgy Maparat Compostela Compostela Valley 11 Purok Bajada, Sitio Ayan, Brgy Kingking Pantukan Compostela Valley 11 Purok 6, Brgy Malitbog City Davao del Norte 11 Purok Ipil-ipil, Sitio Casilak, Brgy San Agustin Tagum City (Capital) Davao del Norte 11 Purok 2, Brgy New Carmen Davao City Davao del Sur 11 Purok Maligaya, Brgy Lungag Digos City (Capital) Davao del Sur 11 Sitio Kili, Brgy Kinanaga Don Marcelino Davao del Sur 11 Purok Mahayahay, Brgy Poblacion Matanao Davao del Sur 11 Brgy Kidadan, 7km from Poblacion Santa Maria Davao del Sur 11 Sitio Tagbobolo, Brgy Sainz Mati (Capital) Davao Oriental 11 Brgy New Pontivedra Antipas North Cotabato 12 Brgy Binoligan City North Cotabato 12 Brgy Poblacion North Cotabato 12 Brgy Sta. Cruz City South Cotabato 12 Sitio Kalisan, Brgy San Vicente Loreto Agusan del Sur 13 Brgy Poblacion Rosario Agusan del Sur 13 Sitio Damilag, Brgy Pisaan San Francisco Agusan del Sur 13 Sitio Baclise, Brgy Angas Agusan del Sur 13 Brgy Poblacion Surigao del Norte 13 178 Controlled Dumpsite Brgy Subec Ilocos Norte 1 Sitio Nalasin, Brgy Cabaroan Daya City (Capital) Ilocos Sur 1 Brgy New Poblacion Burgos La Union 1 Brgy Poblacion Anda Pangasinan 1 Brgy Pugaro Pangasinan 1 Brgy Dumpay Basista Pangasinan 1 Brgy Vacante Bautista Pangasinan 1 15

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Camangaan Pangasinan 1 Brgy San Miguel Burgos Pangasinan 1 Brgy Poblacion Labrador Pangasinan 1 Brgy Botigue Pangasinan 1 Brgy Caabiangan Mabini Pangasinan 1 Brgy Pugaro Pangasinan 1 Brgy Primicias (NEW) Pangasinan 1 Brgy Salvacion Rosales Pangasinan 1 Brgy Paitan San Carlos City Pangasinan 1 Brgy San Bonifacio San Manuel Pangasinan 1 Brgy Casaratan San Nicolas Pangasinan 1 Brgy Banzal(Patayak) Santa Barbara Pangasinan 1 Sitio Lepanto, Brgy Capulaan Pangasinan 1 Sitio Maho, Brgy Savidug Batanes 2 Brgy Minanga Norte Cagayan 2 Brgy District 3 Isabela 2 Brgy Dimalicu-Lico Isabela 2 Brgy Santos Quezon Isabela 2 Brgy Mambog Hermosa Bataan 3 Brgy Caloocan Batangas 4a Brgy 4, Poblacion Batangas 4a Brgy Balanga Batangas 4a Brgy Balabat Lobo Batangas 4a Brgy San Pioguinto Batangas 4a Brgy Tejero San Luis Batangas 4a Brgy Pook(Gahul) Taal Batangas 4a Brgy Tranca Talisay Batangas 4a Brgy Marahan I Alfonso Cavite 4a Brgy Banaba Lejos Cavite 4a Brgy Layong Mabilog Cavite 4a Sitio Maysili, Brgy Asis II Mendez (Mendez- Cavite 4a Brgy Sabang Naic Cavite 4a Brgy Salcedo II Cavite 4a Brgy Lalaan Silang Cavite 4a Brgy Sapang II Ternate Cavite 4a Brgy Quinale Paete Laguna 4a Brgy Parang ng Buho Santa Maria Laguna 4a Brgy Salubungan Laguna 4a Brgy Camagong Alabat Quezon 4a Brgy Pahinga Sur Candelaria Quezon 4a Brgy Bayanihan Dolores Quezon 4a Brgy Villa Padua Quezon 4a Brgy Kulyaat Quezon 4a Brgy Pinagbayanan Quezon 4a Brgy Antipolo (Malicboy) Pagbilao Quezon 4a Sitio Libis, Brgy Tanauan Plaridel Quezon 4a Brgy Sibulan Polillo Quezon 4a Brgy Rizal San Narciso Quezon 4a Brgy Kalayaan Angono Rizal 4a Brgy Sto Domingo Cainta Rizal 4a Brgy Bonga City Albay 5 Brgy Parian Sigma Capiz 6 Brgy Ajuy Iloilo 6 Brgy Ubudan Iloilo 6 Brgy Inaladan Cabatuan Iloilo 6 Brgy Pandan Dueñas Iloilo 6 Brgy Tugurao Iloilo 6

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Bantud & Nilubayan Iloilo 6 Brgy Inagdangan Centro Iloilo 6 Brgy West Candoni Negros Occidental 6 Brgy Punta Mesa Manapla Negros Occidental 6 Brgy 2 Pontevedra Negros Occidental 6 Brgy Cabatang Alicia Bohol 7 Brgy Untaga Alicia Bohol 7 Brgy Bantuon Buenavista Bohol 7 Brgy Guadalupe Carmen Bohol 7 Brgy Tac-an, Guinacot Danao Bohol 7 Brgy Pulang Yuta Diniao Bohol 7 Sitio Danao, Brgy West Lungsodaan Garcia-Hernandez Bohol 7 Brgy Cantuyok Jagna Bohol 7 Brgy Taytay Jetafe Bohol 7 Brgy Bongon Loboc Bohol 7 Brgy Upper Bonbon Loboc Bohol 7 Brgy Dipatlong Bohol 7 Brgy Cagawasan San Miguel Bohol 7 Brgy Poblacion Trinidad Bohol 7 Brgy Macaas Bohol 7 Brgy Ubay Bohol 7 Brgy Candabong Alcantara Cebu 7 Poblacion Alcoy Cebu 7 Sitio Latin, Brgy Atabay Alcoy Cebu 7 Brgy Poblacion Alegria Cebu 7 Brgy San Roque Alegria Cebu 7 Upper Bulasa Argao Cebu 7 Brgy Banhigan Badian Cebu 7 Brgy Lamesa Balamban Cebu 7 Brgy Mohon Bantayan Cebu 7 Brgy Duyan Catmon Cebu 7 Brgy Cambayog Compostela Cebu 7 Brgy Polog Consolacion Cebu 7 Sitio Cansusi, Brgy Dalaguete Cebu 7 Brgy Maslog Danao City Cebu 7 Brgy Tac-an(Brgy Capotatan) Danao City Cebu 7 Brgy Kawit Medellin Cebu 7 Brgy Pinamungahan Cebu 7 Brgy Western Poblacion San Francisco Cebu 7 Brgy Kal-anan Tabogon Cebu 7 Brgy Daan Lungsod Tuburan Cebu 7 Buli, Buli, Brgy Banga Bayawan City Negros Oriental 7 Naupak, Brgy Senora Ascion San Jose Negros Oriental 7 Brgy Poblacion Siquijor 7 Brgy Calunasan Larena Siquijor 7 Brgy Nagerong Lazi Siquijor 7 Brgy Pisong A. Maria Maria Siquijor 7 Brgy Solangon San Juan Siquijor 7 Brgy Lambojon Siquijor (Capital) Siquijor 7 Brgy Solangon, Municipality of San Juan Siquijor (Capital) Siquijor 7 Sitio Palanas, Brgy Garden Arteche Eastern Samar 8 Brgy San Roque Llorente Eastern Samar 8 Brgy Salvacion Albuera Leyte 8 Brgy Talinhugan Leyte 8 Sitio Napagasan, Brgy Poblacion Kananga Leyte 8 Sitio Caloogan, Brgy San Jose Palo Leyte 8 Brgy Northern Samar 8

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex4 List of Open and Controlled Dumpsites

Brgy Cababto-an Northern Samar 8 Brgy _ Samar 8 Brgy Villarosa Villareal Samar 8 Sitio Leop, Brgy Barcelona City Zamboanga del Norte 9 Brgy Kauswagan Zamboanga del Norte 9 Brgy Jose Dalman Zamboanga del Norte 9 Brgy Basagan Katipunan Zamboanga del Norte 9 Brgy Lawigan Zamboanga del Norte 9 Brgy Lantawan Zamboanga del Norte 9 Brgy Sibuloc Zamboanga del Norte 9 Brgy Misok Zamboanga del Norte 9 Brgy Pamington Zamboanga del Norte 9 Brgy Poblacion Dinas Zamboanga del Sur 9 Brgy Poblacion Zamboanga del Sur 9 Brgy Caniangan(Poblacion) Zamboanga del Sur 9 Brgy Poblacion Vincenzo A. Sagun Zamboanga del Sur 9 Brgy Poblacion Alicia Zamboanga Sibugay 9 Brgy Sanito Ipil Zamboanga Sibugay 9 Brgy Imbatug Bukidnon 10 Brgy Kalingking Malitbog Bukidnon 10 Brgy Lala Proper Lala Lanao del Norte 10 Brgy Menang Don Victoriano Misamis Occidental 10 Brgy Poblacion Misamis Occidental 10 Brgy Himaya El Salvador Misamis Oriental 10 Sitio Beberly, Brgy Natubo Misamis Oriental 10 Brgy Suarez Misamis Oriental 10 Brgy Banglay Misamis Oriental 10 Lirupan, Brgy Poblacion Libertad Misamis Oriental 10 Brgy Cabalantian Misamis Oriental 10 Brgy Patag Misamis Oriental 10 Sta Ana / c/o CDO dumpsites Tagoloan Misamis Oriental 10 Sitio Balacanas, Brgy San Martin Villanueva Misamis Oriental 10 Brgy Sagayen Asuncion (Saug) Davao del Norte 11 Sitio Banate, Brgy Capungagan Kapalong Davao del Norte 11 Purok 6, Brgy San Jose New Corella Davao del Norte 11 Brgy San Jose Santo Tomas Davao del Norte 11 Sitio Tibi-tibi, Brgy Sto Nino Talaingod Davao del Norte 11 Brgy Buenavista Bansalan Davao del Sur 11 Brgy Meybio Jose Abad Santos Davao del Sur 11 Brgy Dalumay Magsaysay Davao del Sur 11 Brgy Bolila Malita Davao del Sur 11 Brgy Don Sergio Osmeña Sr Davao del Sur 11 Sitio Caatupan, Brgy Central Manay Davao Oriental 11 Sitio Magamay, Brgy Central Taragona Davao Oriental 11 Brgy Kitacubong (2nd site) North Cotabato 12 Brgy Biniruan North Cotabato 12 Sitio Buntalid, Brgy Poblacion Agusan del Norte 13 Brgy Sta Cruz Dinagat Islands 13 Brgy San Pedro Surigao del Sur 13 Sitio Kinitaan, Brgy San Isidro Surigao del Sur 13 Brgy Gata San Agustin Surigao del Sur 13 Brgy Poblacion (Bayag) CAR Brgy Aninitan Flora Apayao CAR Brgy Poblacion (Capital) Apayao CAR Brgy Turod Luna Apayao CAR Brgy Swan Apayao CAR Brgy Panay Santa Marcela Apayao CAR

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PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 5. List of Existing Sanitary Landfills

List of Existing Sanitary Landfills ANNEX 5

1

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 5. List of Existing Sanitary Landfills National Solid Waste Management Commission Office of the Secretariat List of SLF Sites Total: 116 Location LGU Province Region Category Area Capaciy

55 Sanitary Landfill Brgy San Agustin Norte La Union 1 Brgy Mameltac San Fernando City (Capital) La Union 1 2 7.00 44 tpd

Brgy Catablan Urdaneta City Pangasinan 1 8.0 Sitio Sta Maria, Brgy Pateng Gonzaga Cagayan 2 1 2206 Brgy Cagoran Lal-lo Cagayan 2 1 5.7 12 tpd Boundary of Brgy Upper (Capital) Nueva Vizcaya 2 1 8.03 2189.52 Magsaysay and Upper Busilac Brgy San Joanquin Maria Aurora Aurora 3 Wacuman Inc., Sitio Tiakad, Norzagaray Bulacan 3 4 18.0 has 2000 tpd Brgy San Mateo Vicente G. Puyat, Brgy Minuyan San Jose del Monte City Bulacan 3 4 4.5 2000 tpd Brgy Mapalad Santa Rosa Nueva Ecija 3 1.8 has <15 tpd Sub-zone Kalangitan, Clark Capas Tarlac 3 4 100 has 3000 tpd Special Economic Zone Waste Garde - Brgy San Jose Batangas City Batangas 4a 2 2.7 34 tpd Sico SWM, Inc., Brgy Bauan Batangas 4a Malindig Brgy 8, Poblacion Cuenca Batangas 4a Brgy Piña Batangas 4a 2 Brgy De Ocampo Trece Martines City Cavite 4a 2 4.0 150tpd Brgy Bubuyan (Suri Waste Calamba City Laguna 4a 2 57,460 sq 70 tpd Management) Brgy Lungos(San Antonio) Kalayaan Laguna 4a CAT 2 Brgy Sto Nino San Pablo City Laguna 4a 3 2.0 80 tpd Brgy San Antonio (Pilotage SLF San Pedro Laguna 4a 3 3.0 200 tpd - Site 1) Sitio Pinagtaywanan, Brgy Quezon 4a 1 1.0 Anoling Brgy Magsaysay Infanta Quezon 4a Brgy Lual Barrio Quezon 4a BEST(IPM), Brgy San Morong Rizal 4a 4 1.0 200tpd Guillermo Sitio Lukutan, Brgy San Isidro Rodriguez (Montalban) Rizal 4a 4 14.0 1500 tpd (Rizal Provincial) ISWIMS - Brgy Pintong Bukawe San Mateo Rizal 4a 3 19.0 2000 tpd (New Site) Sitio Dalig, Brgy Batalino Calapan City Oriental Mindoro 4b 2 Brgy Rio Tuba Bataraza Palawan 4b Brgy Villa Libertad El Nido (Baciut) Palawan 4b 1 4.0 Brgy Sta Lourdes Puerto Princesa City Palawan 4b 4 2.7 100 tpd Sitio Metropal, Brgy Malatgao Quezon Palawan 4b 1 9.0 Brgy Banquerohan Legaspi City Albay 5 2

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 5. List of Existing Sanitary Landfills

Brgy Kabulihan Malay Aklan 6 5.0 Brgy Ma-ao Bago City Negros Occidental 6 2 Brgy Paraiso Sagay City Negros Occidental 6 2 7.6 So. Mabuni, Brgy Guadalupe San Carlos City Negros Occidental 6 1 8.5 15 tpd Brgy Canabalan City Negros Occidental 6 Sitio Libaong, Brgy San Isidro Asturias Cebu 7 Brgy Inayawan Cebu City Cebu 7 4 15.4 est 100tpd Brgy Tapon Dalaguete Cebu 7 1 1.5 est 5 tpd Sitio Tapu, Brgy Maghaway Talisay City Cebu 7 2 est 50 tpd Brgy Cambanjao Bais City Negros Oriental 7 1 2.0 30 tpd Brgy Maninihon Bayawan City (Tulong) Negros Oriental 7 Brgy Green Valley Ormoc City Leyte 8 Cat 2 4.0 80 tpd Brgy Dinagan (Gadgarin) Calbayog City Samar 8 2 4.7 75 tpd Brgy Pocopoco Bukidnon 10 Cat 1 Brgy New Carmen, Tugbok Dist. Davao City Davao del Sur 11 Cat 4 9.75

Brgy Kinilis South Cotabato 12 2 50.0 Brgy Colongolo Surallah South Cotabato 12 2 Brgy Upper Katungal City Sultan Kudarat 12 2 10 tpd Brgy Cagniog Surigao del Norte 13 3 13.00 est 100 tpd Brgy Alno La Trinidad (Capital) Benguet CAR 2 7.0 has 50 tpd Brgy Tanza (New site) - PhilEco Navotas City Metro Manila NCR 4 45.0 has 1779 tpd

IMP, Urban II, Brgy Payatas Quezon City Metro Manila NCR 4 30.0 has 1205 tpd Brgy Katutungan Wao ARMM 1 1.0 est 5 tpd 61 SLF w/ ECC Undergoing Construction Brgy Bangsar Banna (Espiritu) Ilocos Norte 1 4.0 Brgy Poblacion Nueva Era Ilocos Norte 1 Brgy Puyupuyan Pasuquin Ilocos Norte 1 Brgy Parparoroc (14 Ester) Ilocos Norte 1 1.0 Brgy Cabulanglangan Ilocos Sur 1 1.0 Brgy Calumbayan La Union 1 1.0 Brgy Cadapli Bangar La Union 1 5,000 Brgy Cabaritan Naguilian La Union 1 Brgy Inabaan Norte Rosario La Union 1 1,000 Brgy Seng-ngat Sudipen La Union 1 4.0 Brgy Dusoc Bayambang Pangasinan 1 1 33.0 est 100 tpd Brgy Balingasay Pangasinan 1 1 4.0 4 tpd Brgy Bamban Infanta Pangasinan 1 10.0 Brgy Pangancasan(Mirant) Sual Pangasinan 1 1 266 kg/day Brgy Mabuttal West Ballesteros Cagayan 2 1 3.0 2.25 tpd Brgy Centro Norte Cagayan 2 CEZA, Brgy Diora-Zinongan Santa Ana Cagayan 2 2 15.5 24.19 tpd Brgy Kirang Nueva Vizcaya 2 1 4.5 2.3 tpd Sitio Tapaya, Brgy Baretbet Bagabag Nueva Vizcaya 2 1 7.2 3.5 tpd Sitio Pinya, Nalubbunan Quezon Nueva Vizcaya 2 10.0 Brgy Concepion (Calabangan) Solano Nueva Vizcaya 2 1 1.6 4777.50 San Martin, Brgy Ballagui Quirino 2

3

PPTA 8115 PHI: Philippines Solid Waste Management Sector Project Annex 5. List of Existing Sanitary Landfills

Brgy Cardenas Saguday Quirino 2 1 1.0 60.67 Brgy Capitangan Abucay Bataan 3 1 9.9 has <15 tpd Sitio Mamala, Brgy St Francis I Limay Bataan 3

Brgy Tagumbao Gerona Tarlac 3 1.0 Sitio Ulpoy, Brgy Amunga Iba (Capital) Zambales 3 Sitio Batang, Brgy Bamban Masinloc Zambales 3 Brgy Sapang I Ternate Cavite 4a 4 22.0 800 tpd So. Bagong-bago, Brgy Maybo Boac (Capital) 4b

Brgy Combot San Jose Romblon 4b 1 Brgy Aglalana Passi City Iloilo 6 2 6.5 Brgy Felisa Bacolod City Negros Occidental 6 CAT 4 Brgy Dangay Alburquerque Bohol 7 Brgy _ Consolacion Cebu 7 Brgy Capidhan San Julian Eastern Samar 8 Brgy Gamay Burauen Leyte 8 Cat 1 Sitio Ansubas, Brgy Cabul-an Leyte 8 Cat 1 2.28 Brgy Santo Nino Tacloban City (Capital) Leyte 8 Cat 3 3.0 Brgy Calagitan Hinunangan Southern Leyte 8 Cat 1 2.0 Brgy Libhu/Bactul 2 Maasin City Southern Leyte 8 Cat 2 9.7 Brgy Anahawan Tomas Oppus Southern Leyte 8 Cat 1 1.5 Brgy Kinuman Norte City Misamis Occidental 10 5.7 Brgy Tambo Island Garden City of Samal Davao del Norte 11 City Brgy _ Arakan North Cotabato 12 Brgy _ North Cotabato 12 Brgy Malanduague Kabacan North Cotabato 12 5.0 Brgy _ Kidapawan City North Cotabato 12 Brgy Manubuan Matalam North Cotabato 12 Brgy Cabangbangan President Roxas North Cotabato 12 Brgy Bagacay Alabel (Capital) Sarangani 12 Brgy Kapate Kiamba Sarangani 12 Brgy Sinawal General Santos City South Cotabato 12 (Dadiangas) Brgy Sampao (Capital) Sultan Kudarat 12 Sitio Kamanga, Brgy Laguilayan Isulan (Capital) Sultan Kudarat 12 8.0

Brgy Sta. Clara Kalamansig Sultan Kudarat 12 5.0 Brgy Salaman Lebak Sultan Kudarat 12 Brgy Dumalagan Butuan City (Capital) Agusan del Norte 13 Brgy Lubong(Cosili East) Bangued (Capital) Abra CAR 2 20 20 tpd Brgy Antamok Itogon Benguet CAR 4 30.0 has 300 tpd Brgy Poblacion Alfonso Lista (Potia) Ifugao CAR 1 6.10 5 tpd

4

Annex 6

Template for Memorandum of Agreement between DENR and LGU ANNEX 6

Annex 6

REPUBLIC OF THE PHILIPPINES Quezon City, Metro Manila

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE BY PRESENTS:

This AGREEMENT executed and entered this ______day of ______, 20 ____, in Quezon City, Metro Manila, into by and between :

THE REPUBLIC OF THE PHILIPPINES, the sovereign state and for purpose of this Agreement, herein called the “Government”, through the Department of Environment and Natural Resources (DENR) with principal office address at DENR Compound, Visayas Avenue, Quezon City, Metro Manila and represented by SECRETARY RAMON PAJE, hereinafter referred to as the DEPARTMENT;

And

The MUNICIPALITY OF “ ______” , a political subdivision and corporate entity created and existing by virtue of “ ______” (Charter) situated in the Province of ______, represented in this agreement by Mayor “______“ and herein referred to as the LGU .

WITNESSETH that :

WHEREAS, Solid Waste Management (SWM) is a pervasive problem and a looming crisis in many urban areas in the Philippines, focusing for decades on collection and hauling and not on waste treatment and disposal, thus, it has become very expensive;

WHEREAS, many well-meaning projects, laws, rules and regulations have achieved little so far with Local Government Units (LGUs) facing a massive challenge in managing rapid and largely unplanned urban growth;

WHEREAS, after 11 years of implementation of RA 9003 or the Ecological Solid Waste Management Act of 2000, continuing challenges exist in solid waste collection, establishment of material recovery facilities (MRF), and promotion of 3R practices, the lack of enforcement of the basic requirements of RA 9003, open dumpsites and poor solid waste diversion;

WHEREAS, over the past decades, the DEPARTMENT in collaboration with Department of the Interior and Local Government (DILG), and other agencies including international donors have challenged LGUs to improve their SWM infrastructure and management, providing a great variety of financing modalities;

WHEREAS, even as funding support to the sector in recent years has progressively increased, many projects and loans have been cancelled and despite high expectations in the beginning about project and program outcomes, too little has been achieved;

Annex 6

WHEREAS the DEPARTMENT has proposed a major project referred to as the Philippine Solid Waste Management Sector Project (PSWMSP) that will improve solid waste management (SWM) services in the Philippines by assisting local governments with investments in infrastructure such as sanitary landfills (SLF), landfill rehabilitation, dump site closure, emission control, material recovery facilities, solid waste collection, processing equipment, and waste-to-energy (WTE) technologies;

WHEREAS, the proposed implementation arrangements are built on innovative institutional and financial arrangements to encourage LGUs to improve their SWM systems and achieve significant improvement and sustainability in the coming years;

WHEREAS, the LGU has shown interest in the project and has agreed to fulfill its requirements under terms and conditions hereunder stipulated.

NOW THEREFORE, for and in consideration of the foregoing premises and the mutual covenants hereinafter set forth, the parties hereto agree and bind themselves as follow:

Section 1. The PROJECT

(state and describe the project, the location and the various components of the subproject for each LGU)

Section 2. THE PROJECT FUNDING (state and describe the source of the funding for each LGU subproject, the amount of the funding, and the conditions of the funding) The National Government shall provide for the counterpart fund in cash or in kind e.g. taxes and duties, land acquisition cost, interest during construction, and portion of project management.

Section 3. Role and Responsibilities of the DEPARTMENT

a. It shall be the recipient of the grant / subsidy to be provided by the National Government from ADB Loan; b. It shall utilize the grant for the procurement of equipment, facilities and services for the LGU; c. It shall closely supervise and monitor the implementation, operation and maintenance by the LGU of the project including its facilities and equipment, d. It shall periodically review the SWM tariff rate or tipping fee; e. It shall monitor and audit the financial operations and position of the SWM project;

Section 4. Role and Responsibilities of the LGU

a. It shall acquire and provide legal and physical possession of the sanitary landfill site and access thereto and as well as to all other areas required for the establishment, management, operation and maintenance thereof, including all necessary rights of way. b. It shall pass an ordinance that will create a SWM special account and ring fence all revenues from the SWM including the grant of authority to the SWM Board to administer the account; c. It shall utilize all funds deposited in the SWM special account exclusively for investment and O&M purposes; d. It shall commit to Increase yearly its waste collection rate to ensure that the expected 100% target shall be reached in ___ years; e. It shall set the tariff at rate that will allow partial cost recovery sufficient to cover the O&M expenses for the initial 3 years of operation;

Annex 6

f. It shall enact the ordinance authorizing each the LCE to enter into and sign this Agreement; g. Should there be need to borrow, it shall apply, negotiate, enter into contract, execute, sign memoranda of agreement, loan agreements, loan documents, project agreements, credit facilities deeds, and other papers with public or private financing institutions/official development assistance for the financing/funding of the WTE facility, including amendments, renewal and/or extension thereof under such terms and conditions as may be agreed

Section 5. Tariff / Cost Recovery

Section 6. Breach/ Defaults

Section 7. Dispute Resolution - If the DENR and the LGU is unable to resolve by mutual agreement any dispute or controversy between them concerning this agreement, they agree that the dispute or controversy shall be finally settled by mandatory, binding decision or opinion of the Secretary of Justice, in accordance with the Administrative Code of 1987.

Section 7. Effectivity.

This Agreement shall take effect upon the signing of the parties hereto and shall remain valid and in full force until mutually revoked or amended by the parties herein.

IN WITNESS WHEREOF, the parties hereto have signed this AGREEMENT this ___ day of ______, 20____ at ______, Philippines.

______SECRETARY RAMON PAJE MAYOR ______Department of Environment and Municipality of ______Natural Resources

Signed in the presence of

______

ACKNOWLEDGMENT