FINAL REPORT

VOLUME 12: SUPPLEMENTARY APPENDICES T AND V (SAFEGUARD ASPECTS)

Asian Development Bank

LOCAL WATER UTILITIES ADMINISTRATION

WATER DISTRICT DEVELOPMENT SECTOR PROJECT

Project Preparatory Technical Assistance (PPTA) TA No: 7122 - PHI

PÖYRY IDP CONSULT, INC.,

in association with

TEST Consultants Inc., Philippines PÖYRY Environment GmbH, Germany

APRIL 2010

PÖYRY IDP CONSULT, INC. This report consists of 12 volumes:

Volume 1 Main Report

Volume 2 Institutional and Financial Assessment of LWUA

Volume 3 Subproject Appraisal Report: Metro Water District

Volume 4 Subproject Appraisal Report: Metro Water District

Volume 5 Subproject Appraisal Report: Legazpi City Water District

Volume 6 Subproject Appraisal Report: Metro Water District

Volume 7 Subproject Appraisal Report: City of Water District

Volume 8 Report and Recommendation of the President (RRP)

Volume 9 Supplementary Appendices A to G (Technical Aspects) A Review and Assessment of Water Supply and Sanitation Sector Outside Metro B Water Sector Laws and Policies C Assessment of Existing Water Supply Systems in Pilot Water Districts D Proposed Water Supply Component for Pilot Water Districts E Non Revenue Water Contract Mechanisms F Sanitation G Health

Volume 10 Supplementary Appendices H to J (Social Aspects) H Socio-economic Survey I Stakeholder Consultation and Participation J Indigenous Peoples

Volume 11 Supplementary Appendices K to S (Financial, Implementation Aspects) K Financial Management Assessment L Detailed Project Cost and Financing Plans for Water Districts M Financial Analysis N Financial History of Water Districts O Economic Analysis P Institutional Strengthening and Capacity Building Q Indicators for Measuring Development Objectives and Performance R Terms of Reference for Consultants (Project Implementation Support Services) S Profiles of Priority Water Districts from Long-list

Volume 12 Supplementary Appendices T to V (Safeguard Aspects) T Initial Environmental Examinations U Resettlement Framework V Resettlement Plans

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12

WATER DISTRICT DEVELOPMENT SECTOR PROJECT — PPTA TA NO. 7122-PHI

FINAL REPORT

SUPPLEMENTARY APPENDICES T to V

T Initial Environmental Examinations

U Resettlement Framework

V Resettlement Plans

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12 i

GLOSSARY AND ACRONYMS

ABD Asian Development Bank ACP asbestos cement pipe AIFC average incremental financial cost A/R accounts receivable AP affected person APIS annual poverty indicator survey ARI acute respiratory infection AusAID Australian Aid village BNA basic needs approach BOT build-operate-transfer BSP basic sanitation package BWSA Barangay Water and Sanitation Association

CAP community action plan CBO community-based organization CCF community consultation forum CCI cement-line cast iron (pipe) CDA Cooperatives Development Agency CDD community-driven development CFR case fatality rate CFT community facilitator team CI cast iron (pipe) CKWD City of Koronadal Water District CLTS community-led total sanitation COA Commission on Audit C&P consultation and participation CPC certificate of public convenience CSC community sanitation center CSS city sanitation strategy CY calendar year

DBL design-build-lease DBO design-build-operate DBM Department of Budget and Management BDP Development Bank of The Philippines DED detailed engineering design DENR Department of Environment and Natural Resources DFR draft final report DHF dengue hemorrhage fever DILG Department of Interior and Local Government DMA district metering area DOF Department of Finance DOH Department of Health DPWH Department of Public Works and Highways DRA demand responsive approach DSA delineated service area DSCR debt service coverage ratio

EA executing agency (LWUA) EARF environmental assessment review framework EIA environmental impact analysis EIRR economic internal rate of return EMP environmental management plan EO executive order EOCC economic opportunity cost of capital

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12 ii

FGD focus group discussion FMAQ financial management assessment questionnaire forex foreign exchange FS feasibility study FY fiscal year (1 January – 31 December)

GFI government financial institution GI galvanized iron (pipe) GIS geographic information system GOCC government owned and controlled corporation GOP of the Republic of the Philippines GR (i) government regulation, (ii) general record (in legal cases)

HDI Human Development Index HH household HRD human resources development

IA implementing agency IBRD International Bank for Reconstruction and Development (World Bank) ICC Investment Coordinating Council (NEDA) ICG internal cash generation IDAP institutional development action plan IDC interest during construction IDCB institutional development and capacity building IEC information-education-communication IEE initial environmental examination IFS Investment and Financial Services (LWUA) IOL inventory of losses IPDP indigenous peoples’ development plan IRA internal revenue allotment IRR implementing rules and regulations IT information technology IWA International Water Association

JICA Japan International Cooperation Agency

KABP knowledge-attitudes-behavior-practices KFP an adaptation of KAP (knowledge, attitudes and practices)

LCWD Legazpi City Water District LG local government LGC local government code LGU local government unit LIDAP local institutional development action plan LIHH low income household LLI local level institutions LMWD Leyte Metro Water District LOI letter of intent lps, l/s liters per second LWUA Local Water Utilities Administration

MDFO Municipal Development Fund Office MDG Millennium Development Goals M&E monitoring and evaluation MFF Multitranche Financing Facility (ADB) MIS management information system MLUWD Metro La Union Water District MOU memorandum of understanding MPA Methodology for Participatory Assessments MTPDP Medium Term Philippine Development Plan

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12 iii

MTPIP Medium-Term Public Investment Program MWSS Metropolitan Waterworks and Sewerage System ()

NAMRIA National Mapping and Resources Inventory Authority NAPC National Anti Poverty Commission NEDA National Economic Development Authority NGA national government agency NGO non-government organization NPV net present value NRW non-revenue water NSCB National Statistical Coordination Board NSO National Statistics Office NSSMP National Sewerage and Septage Management Program NWRB National Water Resources Board

OCR Ordinary Capital Resources (ADB) ODA official development assistance OGCC Office of the Government Corporate Counsel OJT on-the-job training O&M operation and maintenance

PB polybutylene (pipe) PD presidential decree PFI private funding institution PHAST Participatory Hygiene and Sanitation Transformation Php, PhP Philippine peso PIU project implementation unit PMO project management office PMU project management unit PNSDW Philippine National Standards on Drinking Water PPMS project performance monitoring system PPTA project preparation technical assistance PRV pressure reducing valve PSA poverty and social assessment psi pounds per square inch PSP private sector participation PWSSR Philippine Water Supply Sector Roadmap

QC quality control QM quality management QMWD Quezon Metro Water District

RA republic act RIAP revenue improvement action plan RRP report and recommendation of the president (ADB) RWSA Rural Waterworks and Sanitation Association

SES socioeconomic survey SHBC sanitation and health behavioral change SLA sub-loan agreement SPAR subproject appraisal report SSC school sanitation centre SCSS simplified community sewerage system SLA subsidiary loan agreement SWG sanitation working group SWM solid waste management

TA technical assistance TB tubercolosis TOR terms of reference

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12 iv

TOT training-of-trainers

UFW unaccounted-for water UNICEF United Nations Children Fund USAID United States Agency for International Development

V variation (contract) VIP ventilated improved pit (latrine)

WASCO Water Supply Coordination Office (NAPC) WD water district WHO World Health Organization WPEP Water Supply and Sanitation Performance Enhancement Project WQ water quality WS water supply WSP water service provider WSP-EAP Water and Sanitation Program – East Asia Pacific WSS water and sanitation WTP willingness-to-pay WWTP wastewater treatment plant

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12 v

Location Map

Metro La Union WD

Quezon Metro WD Legazpi City WD

Leyte Metro WD

City of Koronadal WD

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12 Supplementary Appendix T

 INITIAL ENVIRONMENTAL EXAMINATIONS

• Metro La Union Water District, La Union Province,

• Quezon Metro Water District, Quezon Province, Luzon

• Legazpi City Water District, Province, Luzon

• Leyte Metro Water District, Leyte Province,

• City of Koronadal Water District, South Cotobato Province,

 ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – Vol 12

Initial Environmental Examination

Initial Environmental Examination Project Number: 41665 April 2010

Metro La Union Water District Water Supply Subproject

Republic of the Philippines: Water District Development Sector Project ADB TA 7122-PHI

The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD i

CURRENCY EQUIVALENTS (As of April 2010)

Currency Unit Philippines Peso (PHP)

$1.00 = PHP45.17

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank barangay village CDO Cease and Desist Order CEMP Contractor’s Environmental Management Plan CKWD City of Koronadal Water District cumd cubic meters per day DENR Department of Environment and Natural Resources DOH Department of Health ECC Environmental Compliance Certificate EIA environmental impact analysis EMB Environmental Management Bureau EMP environmental management plan FGD focus group discussion IA implementing agency IEE initial environmental examination IRR Implementing rules and regulations LCWD Legazpi City Water District LGU local government unit LMWD Leyte Metro Water District lpcd liters per capita per day lps liters per second LWUA Local Water Utilities Administration MLUWD Metro La Union Water District MOA memorandum of agreement NAV Notice of Alleged Violation NGO non-government organization NRW Non-revenue water NSO National Statistics Office NWRB National Water Resources Board PD presidential decree PENRO Provincial Environment and Natural Resources Office PHP Philippine peso PIU project implementation unit PMU project management unit PNSDW Philippine National Standards for Drinking Water PPTA project preparation technical assistance QMWD Quezon Metro Water District RA republic act SIEE Summary initial environmental examination TA technical assistance WD water district WDDSP Water District Development Sector Project WDECC Water district environmental complaints committee WHO World Health Organization

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD ii

Table of Contents

Page

EXECUTIVE SUMMARY ...... IV

I. INTRODUCTION ...... 1

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 1

III. DESCRIPTION OF THE PROJECT ...... 3 A. Proposed Water Supply System ...... 3

IV. DESCRIPTION OF THE ENVIRONMENT ...... 7 A. Physical Resources ...... 7 B. Ecological Resources ...... 9 C. Economic Development ...... 10 D. Socio and Cultural Resources ...... 15

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 17 A. Design/Pre-Construction Phase Considerations ...... 18 B. Construction Phase Environmental Impacts ...... 19 C. Operation Phase Environmental Impacts...... 22

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 25

VII. GRIEVANCE REDRESS MECHANISM ...... 27

VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 28 A. Environmental Mitigation ...... 28 B. Environmental Monitoring ...... 31 C. Implementation Arrangement ...... 34

IX. CONCLUSION AND RECOMMENDATIONS ...... 35

ANNEXES ...... 37

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD iii

List of Tables

No. Title Page

1 Annual Served Population Projections 3 2 MLUWD Water Quality Data 4 3 Population Growth Rates 15 4 Summary of Environmental Impacts Screening for MLUWD Subproject 18 5 Environmental Impacts and Risks for Inclusion in EMP of MLUWD Subproject 25 6 Summary of Consultation Outcomes 26 7 Environmental Mitigation Plan of MLUWD Subproject 28 8 Environmental Monitoring Plan of MLUWD Subproject 31 9 Project Performance Monitoring of MLUWD Subproject 33

List of Figures

No. Title Page

1 Location Map viii 2 Schematic Diagram of Proposed Metro La Union Water Supply System 5 3 Implementation Schedule 6

List of Photographs

No. Description Page 1 Farmland as site of proposed wells in Barangay Banlay, Bauang 38 2 Typical road in MLUWD areas where water supply pipelines will be laid 38 3 MLUWD GM clarifying some points at public consultation meeting 42 4 Stakeholders representatives raising points at public consultation meeting 42

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD iv

EXECUTIVE SUMMARY

1. An environmental assessment was made for the proposed water supply system of the La Union Water District (MLUWD). It is one of the 5 pilot subprojects to be funded by the Asian Development Bank (ADB) under the Water District Development Sector Project (WDDSP) of the Local Water Utilities Administration (LWUA). The MLUWD is located in the province of La Union, Republic of the Philippines (Figure 1). Relative to the significance of impacts and risks, this subproject is deemed Environmental Category B based on ADB’s environmental categorization and the type of assessment warranted only the preparation of an Initial Environmental Examination (IEE) report. This IEE was carried out under ADB’s TA 7122- PHI and in accordance with ADB’s Safeguards Policy (2009).

2. The assessment was also carried out within the policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines. These include the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The overall institutional framework is the LWUA and WD setup as defined by PD 198. Under WDDSP, LWUA is the executing agency, while WDs, such as MLUWD, are the implementing agencies.

3. Subproject Description. The proposed MLUWD subproject will help improve the living conditions of the urban population in the MLUWD and enhance competitiveness by developing water supply infrastructures. MLUWD’s proposed water supply system components shall include the following: (i) development of new source facilities, (ii) construction of new pumping facilities, (iii) provision of new treatment facilities, (iv) installation of new transmission and distribution pipelines, (v) construction of a new storage tanks, and (vi) provision of new service connections.

4. Environmental and Socioeconomic Conditions. Project implementation will not pose significant problems to the environment since the proposed routes of the pipelines along the highway from the town of Bauang through San Fernando City and to the towns of San Juan and Bacnotan are presently residential, commercial, and agricultural landscapes. Proposed sites of pumping stations and reservoirs are in farmlands such as in Barangay Banlay of Bauang. Most areas immediately adjacent to the road where pipelines are to be laid are already occupied by residential and other structures, while areas beyond the road corridors are basically agricultural land. An important fact to consider is that the sites are not within undisturbed landscapes, but areas touched by human activities over the years resulting to their present residential, institutional, commercial, and agricultural landscapes.

5. Socioeconomic indicators revealed that MLUWD’s service area has a growing urban sector. Its 2007 total population was 272,148 representing 37.7% of La Union Province. San Fernando City’s population is 42.2% of the subproject area population. Aside from San Fernando City, MLUWD franchise area includes municipalities of San Juan, Bacnotan, Bauang, and San Gabriel in the province of La Union. However, MLUWD is presently covering only 65 barangays of the subproject area out of a total 201 barangays. MLUWD operates a water supply system serving 17% of the total population in its franchise area or an estimated 48,226 people with a total of 8,185 active connections as of December 2008.

6. Impacts and EMP. Screening for environmental impacts is made through a review of the parameters associated with projects for piped water supply against the components of the proposed MLUWD subproject. An important consideration in analyzing the environmental

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD v impacts of the proposed subproject is the fact that these are improvements and expansion of an existing water supply system in an already altered environment. New water treatment facility, water pipelines, pumping stations, and reservoirs are not new incursions to ecologically undisturbed landscapes. In the towns of San Juan, Bacnotan, Bauang, and San Gabriel, pipelines will pass through areas already occupied by people or influenced by long periods of human activities. The issue on impacts and risks to biodiversity conservation is not applicable to this subproject since the subproject’s components will not be located in areas that are environmentally sensitive and have precious ecology.

7. During detailed design and pre-construction phase, potential nuisances and problems to the public during construction shall be addressed by inclusion in the tender documents of specific provisions addressing these issues. Although there are no issues related to historical and cultural assets, a precautionary measure shall be taken by inclusion of provisions in tender and construction contract documents requiring the contractor to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

8. Inventory of losses and required land for acquisition were made during the planning phase and shall be updated during detailed design phase as soon as the final pipeline alignments and final locations of facilities are available. A separate plan for compensation and other assistance corresponding to the losses of the affected people will be prepared. On resource use, MLUWD will apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict.

9. Adverse environmental impacts during construction are temporary, less than significant, and can easily be mitigated. There will be no massive construction activities that can damage the environment. Water supply pipelaying is a low impact construction activity since trench excavation is shallow with narrow width. Excavated soil is backfilled to the trench after pipelaying. Required structures are relatively small in size. Typical construction issues are manageable with the implementation of a site management plan for: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience.

10. Environmental problems due to operation of the proposed water supply system can be avoided by incorporating the necessary measures in the design and use of appropriate operational procedures. Public health risk due to delivery of poor water quality can be prevented in a broader scale by implementing a water safety plan as advocated by WHO and the 2007 Philippine Standards for Drinking Water (PSDW). Chlorinators will be used for controlling microbial contamination and ensure adequate residual disinfection. Liquid chlorine instead of chlorine gas will be used to reduce risk and improved safety of workers. Potential ground subsidence due to excessive groundwater pumping can be avoided by operating each well at a rate lower than its safe yield.

11. An Environmental Management Plan (EMP) is developed to effectively manage the environmental issues. The plan includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up discusses the requirements and responsibilities during pre- construction, construction, and operation phases. The plan includes tabulated information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures and monitoring.

12. Consultation and Participation. Project planning and the subsequent IEE preparation for the proposed MLUWD subproject recognized the need for public consultation and participation as central to effective environmental safeguard. Within the context of

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD vi

“meaningful consultation”, MLUWD initiated a process of consultation during project preparation and intends to continue it during the construction phase. MLUWD conducted an initial public consultations and information disclosure last 04 September 2009 with concerned individuals, barangay officials, non-government organizations (NGOs), and local government unit (LGU) planning officials. Details of the subproject components were presented to the stakeholders and their views on the respective proposals were requested. Stakeholders expressed support to the proposed subproject. Project disclosure activities were also done during the conduct of a socioeconomic survey between April to May 2009. Some 384 households in MLUWD area were informed about the proposed subproject and interviewed for socioeconomic data. During detailed design, LWUA and MLUWD will again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. MLUWD shall keep records of environmental and social complaints received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

13. Grievance Redress Mechanism. Implementation of the proposed MLUWD subproject will be fully compliant to ADB’s safeguards requirement on grievance redress mechanism. MLUWD shall disclose the proposed mechanism in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc WD Environmental Complaints Committee (WDECC) for expeditious resolutions of the complaints, while complaints during the operation phase can be brought to the attention of DENR-EMB. MLUWD shall address promptly, at no costs to the complainant and without retribution, any complaints and concerns. WDECC shall be chaired by MLUWD and shall have members from the contractor, barangay government, concerned NGOs, and women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the subproject’s civil works contract. DENR-EMB is mandated by PD 1586 to act on complaints about environmental performance of projects issued with environmental compliance certificates.

14. Conclusion and Recommendation. The proposed subproject will increase MLUWDs coverage on providing water supply services. Failure to implement the subproject may lead to public health deterioration. By 2015, MLUWD’s proposed water supply system will increase the population to be served to 70,740. Further increases in served population are expected in the years to follow due to the availability of water supply infrastructures implemented under WDDSP.

15. Analysis of potential environmental impacts revealed no significant adverse impacts to people and environment from the proposed water supply subproject. The IEE concludes that adverse environmental impacts arising from the location, design, construction, operation, and maintenance of the proposed subproject can be mitigated to less significant levels and the corresponding mitigation measures are doable. Monitoring can easily be done. The project can be implemented in an environmentally acceptable manner. An expanded environmental impact assessment is therefore not warranted, and this IEE shall be finalized as the final environmental assessment document of the MLUWD subproject. Its environmental classification as Category B is deemed appropriate.

16. LWUA and MLUWD shall ensure that EMP requirements for the construction phase will be reflected in the tender documents and civil works contracts and implemented including the contractors submission of Contractor’s Environmental Management Plan (CEMP). LWUA shall monitor MLUWD’s compliance to the EMP. In addition, creation of WDECC and its operation, as part of the grievance redress mechanism, shall be included in appropriate sections of the subproject’s civil works contracts. Institutional strengthening of MLUWD, including training, is recommended for effective EMP implementation. MLUWD shall

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD vii continue the process of public consultation and information disclosure during detailed design and construction phases.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD viii

Figure 1: Location Map

Metro La Union WD

Quezon Metro WD Legazpi City WD

Leyte Metro WD

City of Koronadal WD

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol 12 – IEE MLUWD 1

I. INTRODUCTION

1. The Metro La Union Water District (MLUWD) is an operational water supply utility located in the province of La Union, Republic of the Philippines and one of the selected subprojects under TA 7122-PHI: Water District Development Sector Project (WDDSP) funded by the Asian Development Bank (ADB). The objective of the TA study is to assist the government of the Philippines to prepare a water district development sector project. It is intended to improve the livability and competitiveness in urban areas outside of Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The Local Water Utilities Administration (LWUA) is the executing agency. The participating water districts are the implementing agencies for water supply and sanitation subprojects.

2. Preparation of this Initial Environmental Examination (IEE) is part of the Phase 2 activities of the TA. It provides ADB with an assessment of the environmental concerns to be considered regarding the subproject location, design, construction, and maintenance. This report is also intended to assist LWUA and the MLUWD in the preparation of the required environmental document to meet the Department of Environment and Natural Resources (DENR) requirements for an application of the necessary Environmental Compliance Certificate (ECC) before the start of the construction activities.

3. This IEE is one of the of five IEE studies prepared by Poyry IDP Consult, Inc., Philippines in association with TEST Consultants Inc., Philippines and Poyry Environment GmbH, Germany for the initial selected subprojects. Preparation of the IEE involved field visits to the proposed subproject area; review of available information, discussions with MLUWD, LWUA, DENR, and other government agencies, local government officials, and members of the community within the subproject area. The assistance of the MLUWD General Manager and staff in arranging the site visits, meetings, and providing support during the conduct of the study is gratefully acknowledged.

4. The IEE has been carried out in accordance with ADB’s Safeguard Policy (2009) and the requirements describe in its Appendix 1 (SAFEGUARDS REQUIREMENTS 1: ENVIRONMENT). The IEE follows the outline prescribed in the Annex to Appendix 1 excluding the section on analysis of alternatives (not necessary for an IEE).

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

5. The policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines have long been established by the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The frameworks apply to the MLUWD subproject.

6. The overall institutional framework is the LWUA and WD setup as defined by PD 198 otherwise known as the “Provincial Water Utilities Act of 1973”. LWUA, as a government corporation, is mandated to promote the development of water districts

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 2 in the country. It has a clear mandate to “primarily be a specialized lending institution for the promotion, development, and financing of local water utilities.” To carry out this mandate LWUA has major subsidiary roles such as: (i) prescribing minimum standards and regulations in order to assure acceptable standards of construction materials and supplies, maintenance, operation, personnel training, accounting, and fiscal practices for local water utilities; (ii) providing technical assistance and personnel training programs.

7. PD 198 also mandated the formation of local water districts, which were initially formed by resolutions of the LGUs (generally, municipalities) as a single entity or as a combination of LGUs. Once formed, however, a WD becomes legally autonomous of the LGU and has the standing and legal character of an independent government- owned and controlled corporation. It is controlled by a board of directors, appointed by either the mayor or the governor, consisting of five members representing various sectors, who in turn appoint the WD’s general manager. Hence, MLUWD was formed by virtue of PD 198.

8. Under WDDSP, LWUA is the executing agency, while the WDs, such as MLUWD, are the implementing agencies. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. WDDSP can contribute to Philippine efforts in achieving relevant targets in the Millennium Development Goals (MDGs), eight international development goals that 192 United Nations member states have agreed to achieve by the year 2015. Most relevant to WDDSP is Goal 7 (Ensure environmental sustainability) with its “Target 7C” for 2015 calling to reduce by half the proportion of people without sustainable access to safe drinking water and basic sanitation. Achieving the MDG 2015 target on accessibility to safe drinking water necessitates an assurance that indeed the water is safe. WDs must have raw water sources with sustainable quantities and acceptable quality. They should be able to maintain acceptable water quality levels in the distribution systems to ensure delivery of potable water. The 7C Philippine target is 86.8% of Filipinos will have access to safe water by 2015 and 83.8% will have access to a sanitary toilet facility.

9. Implementation of infrastructure and development projects in the Philippines is legally covered by PD 1586 otherwise known as “Establishing the Philippine Environmental Impact Statement System” with its implementing rules and regulations issued under Department of Environment and Natural Resources (DENR) Administrative Order No. 30 series of 2003 (DAO 03-30). This system requires the project proponent to obtain an Environmental Compliance Certificate (ECC) from the DENR before an infrastructure project can be constructed. The Philippine environmental assessment system conforms with ADB’s environmental assessment requirements as revealed by ADB’s Special Evaluation Study on Environmental Safeguards (2006).

10. Sewerage and septage management are covered by Republic Act No.9275 otherwise known as “The Philippine Clean Water Act of 2004”. Its implementing rules and regulations are issued under DENR Administrative Order No.10 series of 2005 (DAO 05-10). Standards for the discharge of all industrial and municipal wastewaters are defined in DENR Administrative Order No. 35 series of 1990 otherwise known as “The Revised Effluent Regulations of 1990” which is based on the Philippine Pollution Control Decree of 1976 issued as PD 984. Sanitation and septic tanks are also covered by PD 856 otherwise known as “Code on Sanitation of the Philippines”.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 3

III. DESCRIPTION OF THE PROJECT

A. Proposed Water Supply System

11. This subproject aims to improve the water supply system of MLUWD in order to meet the projected water demand for the design year 2020 both in the existing and proposed service areas. MLUWD’s projected total average-day demand will be 12,507 cubic meters per day (cumd) and 17,311 cumd, respectively for the years 2015 and 2020. Projected domestic water demand will be 105 liters per capita per day (lpcd) in 2015 up to 2020. The served population (Table 1) is estimated at 70,740 by 2015 representing some 23% of the total population of San Fernando City, Bacnotan, Bauang, San Gabriel, and San Juan. It will be about 102,170 in the year 2020.

Table 1: Annual Served Population Projections Municipal Served Municipal Served Municipal Served

Population 2015 Population 2020 Population 2025 Bacnotan 43,300 3,030 46,420 5,850 49,720 6,970 Bauang 77,440 24,330 82,600 31,530 88,120 38,770 San Gabriel 17,470 1,420 18,600 2,270 19,800 3,130 San Juan 38,310 6,870 42,090 10,240 46,240 12,400 San 130,360 35,090 141,130 52,280 152,780 68,820 Fernando 102,17 130,09 Total 306,880 70,740 330,840 356,660 0 0 % Served 23% 31% 38% Source: Poyry-IDP Consult. 2009. Subproject Appraisal Report: Metro La Union Water District. ADB TA7122-PHI. Manila.

12. The recommended water supply system improvement program will be undertaken in two construction phases. Phase 1 will meet the projected water demand for year 2020 and is scheduled to be completed by 2013. Phase II shall meet the demand of the design year 2025. WDDSP will cover only Phase 1.

13. To supplement the existing water supply facilities, Phase I Development Program will include the following: development of new source facilities, construction of new pumping facilities, provision of new treatment facilities, installation of new transmission and distribution pipelines, construction of a new storage tanks and provision of new service connections. Schematic drawing of the proposed water supply system is presented in Figure 2.

14. Source Facilities. Construction of 4 new wells located at Barangay Ballay, Bauang and 4 new wells located at Barangay Naguirangan, San Juan. All existing sources will be retained. These wells are expected to yield a total of 140 lps. These wells will have depths of 30 to 40 meters in San Juan, while 60 meters for the Bauang area. Water quality test results of WD’s wells within the subproject area (Table 2) showed that the raw water quality is within the limits of the 2007 Philippine National Standards for Drinking Water (PNSDW). Hence, expected water quality of the proposed wells will therefore be within the limits of the 2007 PNSDW since raw water quality is already within the limits of the standards. The 2007 PNSDW is the applicable standard for drinking water in this IEE since it is more stringent than the World Health Organization (WHO) Guidelines for Drinking-Water Quality (2008). The value of hydrogen sulfide in Table 2 slightly exceeds the 2007 PNSDW value.

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However, this is not an issue since the 2007 PNSDW provides a standard value for hydrogen sulfide only for acceptability aspects and not for health significance. Consequently, WHO did not provide a health-based standard for this parameter due to the same reason. Pumping Stations will be constructed in each well. Each pump station will be equipped with a submersible pump and motor capable of producing the expected yields of the new water sources. All pump stations shall be provided with a production meter, hypochlorinator for water disinfection, and stand-by electric generation set. These pumping stations will not cause over pumping of groundwater since the recommendations on the sizes of pump and motor to be installed in the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. Groundwater recharge rates have been factored into the determination of appropriate drawdowns and sustainable well yield. There is therefore no likelihood that the project will cause over pumping of groundwater that could lead to ground subsidence. The sedimentation basin in Barangay Bumbuneg, San Gabriel of the Lon-oy surface water source shall be provided with filter beds to improve its water quality.

Table 2: MLUWD Water Quality Data Parameters Test Results Range 2007 PNSDW Limit (mg/l) (mg/l) Turbidity 0 – 2 NTU 5 NTU odor not objectionable not objectionable pH 7 – 7.8 6.5 – 8.5 Calcium 30 - 95 none Magnesium 12 - 30 none Chloride 1.35 - 51 250 Boron 0.18 – 0.6 0.5 Fluoride 0.1 – 0.8 1.0 Iron 0 – 0.3 1.0 Manganese 0.003 – 0.01 0.4 Nitrite 0.001 – 0.006 3.0 Aluminum 0.001 – 0.2 0.2 Sulfide 0.001 – 0.09 0.05 Hardness as CaCO3 14 - 370 300 Potassium 1.3 – 5.9 none Source: MLUWD data of one spring and 8 deepwells

15. Storage Facilities. All existing operational reservoirs will be retained in Phase I. The abandoned San Juan 150 cum concrete ground reservoir will be rehabilitated and 4 new concrete ground reservoirs with a total capacity of 1,400 cum will be constructed to meet the needs of year 2020 for operational and emergency storage.

16. Pipelines and Service Connections. New transmission and distribution lines will be laid in the proposed service expansion while reinforcements will be laid to improve carrying capacity of pipes which may become inadequate to projected increased flow. This involves the construction of about 59 km of new pipelines ranging from 75 mm Ø to 350 mm Ø. The main transmission pipes of about 36 km and distribution pipes of about 23 km will satisfy the demand for year 2020 service area. There will be some 9,199 new service connections.

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Figure 2

SCHEMATIC DIAGRAM OF PROPOSED METRO LA UNION WATER SUPPLY SYSTEM

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Figure 3: Implementation Schedule

17. NRW Reduction Activity. Non-revenue water (NRW) is the volume of water that goes into the system but does not generate revenue. Included are wastage, leakage and consumptions from illegal connections as well as water used for fire fighting purposes and under-registration of meters. The present system has a high NRW of 52% due to poor conditions of the old pipes and illegal connections. Funds will be provided to purchase operational systems and equipment designed to manage and control NRW.

18. Water Supply Project Cost. The cost estimate was based on the 2009 in-placed cost of waterworks materials and facilities of LWUA and on submitted quotations from suppliers. Phase I total project cost is estimated to be PHP326.284 million. The annual operation and maintenance costs include manpower, power, chemical, maintenance and miscellaneous costs. By 2015, the total annual operation and maintenance costs will be PHP64.775 million and PHP 89.632 million by 2020.

19. Implementation Schedule. The proposed water supply improvement program will be implemented over a period of two years starting in 2012 and up to end of 2013 as shown in Figure 3. The improved system is expected to operate by the first quarter of 2014.

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IV. DESCRIPTION OF THE ENVIRONMENT

20. A brief description of the existing environmental and socioeconomic conditions of the MLUWD subproject influence area is presented in the following subsections:

A. Physical Resources

21. MLUWD covers San Fernando City and the towns of San Juan, Bacnotan, Bauang, and San Gabriel, all located in the Province of La Union. San Fernando City is bounded on the north by the Municipality of San Juan, on the south by the Municipality of Bauang, on the east by the Municipalities of Bagulin and Naguilan, and on the west by the China Sea. The City is between 16º 34´ - 24.093ʺ N & 16º 38´ - 43.458ʺ N latitude and between 120º 16´ - 41.638ʺ E & 120º 25´ - 42.305 E longitudes. It is 14 kilometers from Bacnotan, 60 kilometers from City, 145 kilometers from City, Province of Tarlac, and 276 kilometers from Manila. Bauang falls within the longitude 16 º 20´ to 16º 40´and latitude 120º 30ʺ and is about 10 kilometers south of San Fernando City and 50 kilometers west of Baguio City. Bacnotan lies within 16º 42´ to 16º 47´ north latitude and 120º 20´ to 120º 26´ east longitude and is 14.27 kilometers north of San Fernando City. The San Gabriel is located between 120º 23´ and 120º 30´ longitude and between 16º 40´ and 16º 45´ latitude. It is 282 kilometers north of Manila and 8 kilometers north of San Fernando City. San Juna is located between 120º 19´ to 120º 25´ longitude and between 16º 39´ to 16º 43´ latitude and is about 8 km from San Fernando City.

22. Topography. San Fernando City is located between the foothills of the Cordillera mountain range to the east and the China Sea to the west. The coastal plain occupies one-fourth of its total land area and the remaining area is characterized by rugged hills and inland valleys which are drained by creeks and streams. The present urban area is situated on the flat areas among seven hills. The highest elevated area is found in the northeast quadrant with an altitude of over 400 meters above sea level. Towards the midwest portion of the city is the Poro Point peninsula that forms the southern enclosure of the San Fernando Bay.

23. The other towns are also in varied topographies. San Juan and Bacnotan are generally flat. San Juan has an average elevation of 107 meters above sea level. The lowest portion is only 6 meters above sea level and the highest portion is at 209 meters above sea level. Bacnotan has an average elevation of 4.65 meters. The plain areas lie in the western portion while the hilly areas lie on the eastern and northern parts. The plains occupy about two-thirds of the municipality and are predominantly used for agriculture and settlement purposes.

24. Bauang western portion is a lowland extending to the shores of the China Sea. Its eastern portion is mountainous with valleys between the mountains. In the urban area, which is located in the central part of the municipality, the elevation is flat and is between 3 to 4 meters above mean sea level. The Bauang River dissects the town from east to west and drains into the China Sea. San Gabriel has an area where only about 10% is relatively flat with elevations of 100 to 200 meters above sea level. This is where the and two other barangays are located. The remaining land area is mountainous.

25. Geology and Soils. The low-lying coastal areas and narrow river valleys of La Union are covered with recent alluvial deposits. Buried beneath the recent deposits are quaternary to late tertiary clays, sands, and tuffs. At greater depths and exposed in the mountains farther from the shore are older tertiary marine sediments overlying

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 8 a basement complex of early tertiary to late cretaceous intrusives and metamorphosed volcanics.

26. The low-lying hills of the area is underlained with Quaternary to Tertiary sedimentary formation called the Rosario Formation consists of a sequence of rhythmically interbedded turbidite sandstone, siltstone, shale and minor conglomerate in the lower section and coarse-grained tuffaceous sandstone and conglomerate with minor siltstone, shale, patch-reef limestone and basalt flow in the upper section. The coarse-grained interbeds are moderately permeable while the fine to medium grained are impermeable. This aquifer is classified as poor to moderately good. Recent alluvial deposits occupies the lowlands and consists of recent river deposits. These consists of gravel and sand with some clay and silt and can be observed along major river systems including the Baroro and Baung Rivers. Some deposits are predominantly coarse sand and gravel at shallow depths underlain by sand mixed with clay and silt. These deposits can be good to poor aquifers.

27. Water Resources. MLUWD obtains its water supply from one surface source and eighteen wells consisting of ten shallow dugwells and eight deepwells. Groundwater in the general area of La Union is utilized through wells and small capacity springs. Wells are used for domestic, industrial and agricultural purposes. MLUWD utilizes groundwater through shallow dug wells and deepwells. Barangays not served by the existing water supply system obtain their water requirements from springs and small diameter wells drilled to shallow depths while commercial, industrial establishments and some private individuals have their own deepwells.

28. Borehole logs of existing wells indicate that the area is underlain with recent alluvial sediments and the Rosario Formation. The Rosario Formation is generally fine-grained and is considered as poor aquifer. The coralline limestone member in the coastal areas yields saline water to wells. The more productive wells are drilled in the river valleys of the major river systems, which include the Bauang River and the Baroro River. These river valleys are underlain with sand, gravel, clay and silt. Wells drilled along these river systems produced through induced infiltration and/or leakage through the semi-permeable river deposits. Along the Baroro River, the MLUWD taps the semi-permeable to permeable river deposits throug deepwells. Eight wells have been drilled but only five wells are operational. Along the Bauang River the MLUWD is also tapping the river’s permeable to semi-permeable deposits through three wells.

29. There are two major river systems in La Union; the Baroro River to the north of San Fernando City that traverses the Municipalities of San Juan and San Gabriel and the Bauang River to the south of San Fernando City that traverses the Municipality of Bauang. Smaller creeks pass through the central section of the study area, flowing east to west in a dendritic pattern. Most of these creeks run-dry during prolonged dry periods. The Baroro River originates in the mountains northeast of San Fernando City and flows westerly through the Municipalities of San Gabriel and San Juan before emptying into the South China Sea.

30. The Lon-oy Creek, which is a major MLUWD water source is one of the perennial tributaries of the Baroro River. The Lon-oy Spring complex, which is one of the headwaters of the creek is located about 12 km east of the San Gabriel Poblacion in Sitio Bakes, Barangay Lon-oy. Lon-oy Creek has a total flow of 635.9 liters per second (lps) or 54,945 cumd measured in May 2009. It is commonly referred to as Lon-oy Spring source but is actually a river intake constructed on the Lon-oy Creek in 1971 to divert part of the flows for the San Fernando Municipal Waterworks System.

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The intake is located in Barangay Lon-oy, some 10 km east of the San Gabriel town center. The river intake has been the main source of the San Fernando Municipal Waterworks System during the 1970’s and is one of the MLUWD’s major water supply sources at present.

31. The Bauang River originates in the mountains east of San Fernando City and flows in westerly direction before emptying into the Gulf. The Naguilian River, a major tributary joins the Bauang River with its confluence located about one km southwest of the Naguilian Poblacion. The Bauang River has no streamflow record. Its major tributary, the Naguilian River is a perennial river with a maximum monthly discharge of 94,700 lps (8.18 million cumd) and minimum discharge of 1,160 lps (100,224 cumd).

32. Climate. The climate of La Union is classified as Type I of the Modified Coronas Classification of the Philippine Climate which is characterized by two pronounced seasons: dry from November to April and wet during the rest of the year. Data from the nearest weather stations revealed a mean rainfall of 2,391.7 mm at City and 2,300.9 mm at City with average number of rainy days of 120 days and 97 days, respectively. Weather stations in Dagupan City and Vigan City were used since these are the nearest stations and have the same climatic characteristics with the towns of La Union. August has the largest rainfalls on both weather stations with a monthly average of 608.6 mm and 646.3 mm, respectively. February is the driest month and an average recorded monthly rainfall of 6.1 mm and 2.8 mm, respectively. The warmest month in Dagupan City is April and that for Vigan City is May with monthly average temperatures of 29.7º C and 29.0º C, respectively. The coolest month is January. The northeast monsoon prevails over the area from November to May where northerly winds blow with an average wind speed of 2 meters per second. Southerly winds blow over the area at an average of 3 meters per second during the rest of the year during the southwest monsoon. An average of 2 tropical cyclones blow over the area annually.

33. Air Quality and Noise. There are no available air quality data specific to the areas where subproject components will be constructed. However, based on the consultant’s experience on air quality measurements of similar rural setting in the Philippines, the expected average ground level concentrations of total suspended particulates (TSP) would be close to the indicative value of 65 ug/Ncm. Similarly, there are no actual data on the present noise levels of this area. Again, based on the consultant’s experience on noise measurements of similar rural setting in the Philippines, the expected noise levels along the inhabited areas would be between 42 to 48 dB(A) for the daytime, while those in the farm areas would be less than 40 dB(A). In areas where there is higher vehicular traffic volume noise levels could reach as high as 54 dB(A).

B. Ecological Resources

34. Water Supply System. Similar to the existing system, MLUWD’s proposed water supply system expansion areas will be along existing roads or highways where the proposed pipelines will be laid, while the proposed deepwells and reservoirs will be located near the roads or highways. At this stage of the subproject study, the technical team only identified the general areas for the proposed pipelines, deepwells, and reservoirs. The exact locations will be confirmed during detailed design. The environment specialist visited the proposed locations of the subproject components in order to present appropriate descriptions of the ecological settings.

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35. In general, the proposed routes of the pipelines along the highway from the town of Bauang through San Fernando City and to the towns of San Juan and Bacnotan are presently residential, commercial, and agricultural landscapes. Proposed sites of pumping stations and reservoirs are in farmlands such as in Barangay Banlay of Bauang (Photo No.1). Proposed pipelines routes in interior areas are also in mainly residential areas as in the town of San Gabriel (Photo No.2).

36. Houses, commercial establishments, schools, etc. can be seen in most areas immediately adjacent to the roads and highways. Areas beyond the road corridor are basically residential areas or cultivated strips of land such as rice fields. Devoid of forested areas, the road and highway corridors and immediate environs are unlikely habitats for large wild animals, rare or endangered species. Farm and domesticated animals are therefore the large faunal species such as cows, water buffaloes, goats, pigs, house cats, and dogs.

37. An important fact to consider is that the sites are not within an undisturbed landscape. These are located along major highways and roads that have been functional for a very long time already. Hence, over the years the ecological changes due to human activities in the area resulted to the present residential, commercial, and agricultural landscape.

C. Economic Development

38. City Income and Expenditures. San Fernando is a 3rd class Component City. Its average annual local government revenue over the period of 6 years from 1995 to 2000 was PHP119,166,954. It budgeted an average annual expenditure, over the same period, of PHP117,118,102 with an average annual surplus of PHP2,048,852. In 2000. The City earned PHP221,191,997 from taxes, operating and miscellaneous revenues, and economic enterprise and budgeted PHP195,262,053 for the same year for a surplus of PHP25,929,944.

39. Bauang is a 1st class Municipality with an average 5-year (2001 to 2005) annual income of PHP78,841,050 and expenditures for the same period averaged PHP68,696784. Its income is derived from real property tax, business taxes and licenses, market receipts, receipts from slaughterhouse and cemetery, fees and other charges. Reported actual income of the municipality in 2005 was PHP85,398,466 and actual expenditure was PHP79,423,743 for a surplus of PHP5,974,722. Bacnotan is a 1st class Municipality with a total revenue in 2005 amounting to PHP62,613,672. Expenditures for the same period was PHP54,102,416.13 and left a surplus of PHP8,545,209.12 or 13.65% for the year. San Gabriel is a 4th class municipality with an annual income in 2008 of PHP31,664,347. San Juan is a 2nd class municipality with a total revenue in 2005 of PHP67,109,888. Total Expenses amounted to Php40,813,135 in 2005 resulting to a net income of PhP26,296,752. Income of these towns is derived from real property tax, business taxes and licenses, market receipts, receipts from slaughterhouse and cemetery, fees and other charges.

40. Land Use. San Fernando City has a land area of 10,526 hectares. Agricultural land occupies about 7,030 hectares or about 67% of the total land area. Urban areas occupy about 2,020 hectares, timberland occupies about 636 hectares, residential areas occupy about 455 hectares, and the rest are areas for tourism, fishponds, road rights-of-way, and landfill. Bauang has a land area of 7,160 hectares, of which 91.55 percent or 6,555 hectares are certified alienable and disposable lands. The remaining 605 hectares or 8.4 percent are public forestlands. The protected forest area, those within slopes of 50 percent or over, is estimated to be about 464

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 11 hectares. However, most of this protected forest area is classified as grassland or shrub land. Agricultural lands occupy about 4,302 hectares or about 60 percent of the total land area. Agricultural crops include rice, corn, tobacco, fruit trees, and other commercial crops. Built-up areas, open spaces, idle lands, and beaches comprise the remaining 2,253 hectares or 31.6 percent of total land area. The total land area of Bacnotan is 7,654.77 hectares which is 5.1 percent of the total land area of the province. The urban area occupies 613.47 hectares or about 8% of the land area of the municipality. Rural area, composed of 43 barangays, represents the remaining 92 %. Agricultural lands occupy about 3,904 hectares or about 51% of the total land area.

41. Because of its topography, San Gabriel has a large forest reserve. It has a forest cover of 7,394.68 hectares which is the third largest in the Province of La Union and is 15.26% of the total public forest land of the province. Grasslands and open spaces comprise 3,570.46 hectares or 20.34 % of the total land area. Built-up areas, both urban and rural barangays, comprise 127.5 hectares which are less than 1.0% of total land area. San Juan has a land area of 5,966.4 hectares. Agro-forest lands occupy about 1,482 hectares mostly found in the northern and southern portions of the town. Agricultural lands occupy about 3,363 hectares or about 56.36% of the total land area. Built-up areas comprise 589 hectares (9.87%) of total land area. Tourism facilities/spot, fishponds, and a cemetery occupy the remaining areas.

42. Commerce and Trade. San Fernando City had 4,776 registered business/commercial establishments in 2006. There were 30 hotels/inns/taverns, 6 movie houses, 26 restaurants and fast food establishments, 16 resorts and beach cottages, and 2 malls. There were also 33 banks (commercial, savings, and rural) in the City making it the financial center of the entire region. Small commercial establishments and light industrial activities dominate the business landscape of Bauang. These are concentrated in Barangays Central East and Central West. To date, the commercial district now occupies 22.32 hectares. The increase in commercial and industrial activity is primarily a result of the decision of investors to locate in Bauang due to the shortage of space in the City of San Fernando. The hub of trade in the municipality is the Bauang Commercial Center with its 6,642 square meters. The Rural Bank of Bauang is only one bank in Bauang.

43. Bacnotan had 636 commercial establishments in 2005, broken down into 28 classifications. Sari-sari stores comprise 60% of total commercial establishments. It has a public market with 240 stalls in a 1-hectare lot, 3 Rural Banks, 2 Financing Institutions, 26 Cooperatives, 3 Pawnshops, 6 Real Estate Dealers, and 1 Subdivision Developer. Major Industrial activities include the HOLCIM Phils (a cement manufacturing plant), the DMMMSU Pig Extension and Research Farm (DPERF), a tobacco redrying plant, and a manufacturer of pyrotechnics.

44. Small commercial establishments dominate the business landscape of San Gabriel and San Juan. In 2004, 52 establishments were registered with the town of San Gabriel. About half are sari-sari stores and 5 are rice mills. The rest are service establishments and supply/trading stores. It also has a public market but there are no reported banks or other types of financial institutions. In San Juan, there were 339 establishments, 271 of which were sari-sari stores, 23 apartments for residential purposes, 2 animal feeds manufacturers, 2 warehouses, 2 construction firms, 1 hotel & restaurant, 1 resort club & restaurant, 7 beach resorts, and 25 registered rice mills.

45. Agriculture. Agricultural land accounted for about 66.8% (7,031.4 hectares) of the total land area of San Fernando City in 2000. Agriculture was, and still is, a major

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 12 source of livelihood in the city. Major crops included rice to which 3,895 hectares or 52.3% of the agricultural land was planted. Other major crops included tobacco, fruit and leafy vegetables, fruit trees, peanuts, and legumes. In Bauang, agricultural lands account for about 60%. Major crops include rice planted in 1,652 hectares and mostly in rainfed areas. Only about 250 hectares are irrigated rice. About 305 hectares are planted to green and yellow corn and some 240 hectares are planted to mango trees. Native and Virginia tobacco are planted in 508 hectares and coconut trees abound along the coastal areas. Some guapple and grapes are planted but are mostly backyard crops or planted in small areas. Tilapia and bangus are also raised in fresh and brackish waters of the Bauang River in both fishponds and fishpens.

46. In Bacnotan, agricultural land accounts for about 51% or 3,904 hectares of the total land area. Major crops include rice, corn, peanuts, mungbean, fruit and leafy vegetables, and rootcrops. The most promising high value cash crop is mango with a total of 1,200 fruit-bearing trees planted. Other fruit trees have been planted as cash crops in order to increase income of the farming households. The biggest crop is rice wherein 1,883 hectares are planted. About 880 hectares are irrigated, 980 hectares are rain-fed, and the remaining 23 hectares are for upland rice. Livestock raising is another major agricultural activity with most are raised in backyards. Basi, a local wine, and vinegar are also produced in large quantities and are sold in markets and national trade fairs.

47. In San Gabriel, agricultural lands occupy about 6,322.36 hectares or about 36.0% of the total land area. Agricultural crops include rice, green and yellow corn, peanuts, tobacco, vegetables, rootcrops, and coconut and mango trees. Tiger grass is also cultivated commercially in 150 hectares of land to support its broom-making industry. San Gabriel has 12 irrigation systems. However, upland rice and rainfed rice are still cultivated in areas not reached by these irrigation systems. In San Juan, agricultural land accounts for about 3,363 hectares or about 56.36% of the total land area. Major crops include rice, corn, tobacco, vegetables, root crops, fruits, and fishery products. About half the riceland is rain-fed and the other half is irrigated.

48. Tourism. San Fernando City has its share of cultural and historic spots, scenic areas, recreational areas, and excellent tourism facilities. Cultural and historic spots include the Provincial Capitol, which overlooks the City and Poro Point; the La Union Museum; the St. William’s Cathedral which was initially built from 1773 to 1786 and rebuilt twice since then; the Pindangan Ruins which is the ruins of a Catholic Church built in 1759 and destroyed in 1786; the Lighthouse at Poro Point; and the Watchtower at Carlatan, which was a look-out point against marauding Muslim pirates called “Tirongs”. There is also the Bacsil Ridge which was a battle site between the Japanese and the joint Philippine–American forces in January of 1945; the on-going archeological diggings in Barangay Cadaclan which shows evidence of Pre-Hispanic settlements and the existence of trade with other countries; the Monument for the Unknown Soldiers; and the Executive Memorial Park. Three kilometers north of the city are the Carlatan and Lingsat Coral Reefs which are good places to fish and view marine life. There is a 10-hectare Botanical Garden. There are splendid beaches along the shores of the City supported by reasonably-priced resorts, hotels, lodging houses, inns, etc.

49. In Bauang, the most significant tourist attraction is the grayish sand beach along the coastline. There are 16 accommodation facilities but only 6 are accredited by the Department of Tourism. Other tourism-related establishments such as entertainment and disco clubs, apartels, restaurants, and the like continue to increase in number. Most of these are concentrated in Barangay Paringao. In Bacnotan, the major tourist spot is the Bacnotan Park, a public plaza located in the poblacion fronting the

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 13 municipal hall. It is the place where cultural activities during fiestas and celebrations are held. The park is well-lighted and has a perimeter fence. Other tourism attractions include Guinabang Falls, the Centennial Tree located at Barangay Carcarmay, and, of course, there are the beaches.

50. San Juan is considered the surfing capital of the Philippines. Local and foreign tourists flock to San Juan during the months of October and November when the waves generated by the tail-end of the rainy season are sufficiently strong to make surfing an exciting recreational activity. There are a few resort/hotels located along the beaches which cater to the high-income and middle-income levels. The Watch Tower Ruins in Barangay Ili Norte which was built in 1815 to serve as a look-out point against Muslim pirates called the “Tirongs”. The San Juan Convent Ruins is located beside the Catholic Church in the Poblacion. This convent is made of bricks and stone and was one of the biggest convents in Northern Luzon.

51. In San Gabriel, potential tourism spots have not been developed. There are numerous unspoiled natural springs situated in 3 barangays, namely: Amontoc, Bayabas, and Lon-oy. The Katebbegan Falls is located between Barangays Lipay Sur and Lipay Proper and is presently accessible only by foot. The bottom of the falls is rich with marine life and is a good fishing spot. The Tangadan Falls is found between Barangay Amontoc of San Gabriel and Barangay Dagup of the Municipality of Bagulin, La Union. It consists of several waterfalls of varying sizes at the bottoms of which are natural swimming pools.

52. Existing Water Supply System. MLUWD has 2 water supply systems. “System I” serves San Fernando City, Bauang, San Juan, and San Gabriel, while “System II” serves only Bacnotan. Water is supplied to MLUWD from a combination of surface water source, deep wells, and shallow wells. The average production for 2008 was 134 lps or 458 m3/hr. System I is utilizing Lon-oy River as a surface water source with intake weir constructed 12 km east of the San Gabriel Poblacion at an elevation of 272 m. Water is conveyed down to 115 m via gravity to the 2,800 cum. sedimentation basin in Barangay Bumbuneg at the rate of 26 - 41 lps. In addition, System 1 has 8 deepwells, 9 shallow wells, 4 concrete ground reservoirs, 1 elevated steel tank, and 4 sump tanks. Eight of the shallow wells are in San Fernando City. The distribution network of San Fernando City and the municipalities are interconnected to each other.

53. System II has 2 shallow wells located in Barangay Nagsaraboan about 2 km east of the Bacnotan Poblacion. Each of these wells has a depth of 6 meters. Water from these wells is pumped into a sump tank then sent to the service area by gravity. It has 1.1 km of ACP transmission line. Pipe types used in both systems consists of PVC,ACP, CCI and GI pipes with diameters ranging from 25mm to 200mm. The total length of the distribution pipelines of the 2 systems is about 100 km.

54. Existing Water Supply Service. MLUWD operates a water supply system serving 17% of the total population in its franchise area or an estimated 48,226 people with a total of 8,185 active connections as of December 2008 in San Fernando City and the towns of San Juan, Bacnotan, Bauang, and San Gabriel. Data on present water service situation in MLUWD’s franchise area were generated by a WDDSP household survey using stratified random sampling with three hundred eighty four (384) respondents. Survey was conducted on groups with pipe water connection and those without. About 11.9% of survey respondents had piped water with MLUWD but in certain areas, the water supply was intermittent. The survey indicated an average consumption of 28.8 cubic meters. Of those interviewed 22% provided water to neighbors or relatives; sharing often occurred where there were multiple families in a

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household; 28.6% catered to 2-3 families. Issues on sufficiency and perceived quality of water were indicated for certain areas; additional sources were cited as shallow wells for other domestic uses (using the average volume of 206.8); purified water refilling stations were the source of drinking water for 1.7% with an average cost of over P15.33 per day; 4.9% used pump to increase water pressure. Overall, 82.9% assessed that water received from piped connection was sufficient for their needs.

55. On the other hand, there was a demand for improved water services. Water pressure was considered poor (7.3%) or very poor (4.9%) by 41 WD-connected respondents, although an improvement in water availability was noted during the rainy season; over 92% cited that water was available everyday during the rainy period. Performance rating on continuity of water supply was rated poor (12.2%) or very poor, by 7.3%; reliability of water was considered poor by 14.6%, regularity of billing and collection was poor by 7.3%; and, response to customer complaints was assessed to be poor by 17.1% and very poor by 4.9%. Aspects of water quality that were at issue were taste (12.5%), color (12.2%) and smell (12.2%). Boiling of drinking water was the only treatment (7.3%) reported by connected households. There was some dissatisfaction with overall water service with 37% reporting some level of dissatisfaction with water rates as against perceived adequacy of service.

56. Eighty-nine percent of the respondents did not have water connection with the WD. On the other hand, 44% of non-connected interviewees got water from water vendors and peddlers; in addition, 5.3% reported paying for supply of piped water from another’s connection. The next most common source was private shallow wells at 45.7%; less common were private deep wells at 3.5%; and public faucets at 0.9%, while 0.3% got water from open dug wells. Female-headed households relied on water vendors at a higher rate of 24.2% compared to 15% by their conterparts. Shallow wells were main sources for bathing (82.2%) and for gardening (83.4%) but only 45.7% used water from these wells for drinking.

57. Close to 82% of non-connected households assessed overall quality of water from their current source as extremely or moderately satisfactory all year round; only 12.9% said source/s were not sufficient during the rainy season. Collecting water took up time. about 97.5% spent 0.5 – 1 hour and 1.3% spent 1.1 to 2 hours collecting water daily by using a pail (86.1%). Water was usually fetched by male household members (42.5%). Bathing had the highest water use per household at an average of 32.19 gallons per day, followed by gardening (7.25), cleaning (6.95), cooking (4.92) and drinking(2.76). Adult female household members (33.5%) and children (11.1%) or anyone available (12.9%) also fetched water.

58. Transportation and Communication. San Fernando City can be reached by road, sea, and air. It is 270 kms. to Manila by the Manila North Road and only 60 kms. to Baguio City, the summer capital of the Philippines, all through an all-weather highway. Its seaport at Poro Point can handle international as well as inter-island shipping. The airport is also at Poro Point and handles flights on a regular basis. PLDT and Digitel are the telephone companies with a total subscriber volume of 12,472 (as of 2006). Subscriptions to all major cell phone companies are available all over the city including internet and cable service. Bauang can easily be reached by land transportation since it is traversed by 2 major national highways. The Manila North Road runs through the town from north to south, while the Bauang to Baguio Road runs from east to west. It has neither an airport nor a seaport but it is in the influence area of the San Fernando City airport and seaport.

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59. Bacnotan can be reached by primarily by land although it is also accessible by sea, since it is a coastal town. Manila North Road (Rosario- Road) and the secondary national road of Bacnotan-Luna-Bangar Road traverse the town. Communications service in the municipality is handled by cellular phones, telephones, telegraph through the Bureau of Telecommunications, postal services, and wireless communications. San Juan can be reached by the Manila-North Highway. It has no airports or ports and must rely on 75 kilometers of roads for the transport needs of citizens. Available communication facilities include telephones, cell phones, telegraph, television, cable, and postal services. San Gabriel is completely land-locked and has no airport. Jeepneys and tricycles are the most common means of transportation. PLDT and Digitel are the telephone companies. Cellular phones are also common especially with the installation of cell sites at the Poblacion and at Barangay Lacong.

60. Power Supply. The subproject area has access to 2 electric utilities, namely the La Union Electric Cooperative (LUELCO) and the privately-owned La Union Electric Company (LUECO). Both derive their power from the Northern Luzon grid of the National Power Corporation. San Fernando City, Bauang, San Gabriel, and San Juan have access to both LUELCO and LUECO. Bacnotan is served only by LUELCO. Electricity is available to all barangays.

D. Socio and Cultural Resources

61. Population and MLUWD Service Area. In 2007, the subproject area had a total population of 272,148 representing 37.7% of La Union Province. San Fernando City’s population is 42.2% of the subproject area population. The present franchise area of MLUWD includes 1 city and 4 municipalities in La Union. However, MLUWD is presently covering only 65 barangays of the subproject area out of a total 201 barangays. The largest covered barangays is in San Fernando City with 28 out of the city’s 59.

Table 3: Population Growth Rates Population Growth Rate (%) City/ Town 2000 2007 2000- 2007

La Union 657,945 720,972 1.32

Bacnotan 35,419 38,743 1.29 Bauang 63,373 69,837 1.40 San Gabriel 14,909 15,803 0.84 San Juan 30,393 32,952 1.16 San Fernando 102,082 114,813 1.69 Source: National Statistics Office (NSO)

62. Public Health and Sanitation. San Fernando City has 4 tertiary hospitals and 1 primary-special hospital, 22 barangay health stations, and 6 lying-in clinics. There are no hospitals in Bacnotan, Bauang, San Gabriel, and San Juan. Health services are provide by each towns rural health units and barangay health stations. Basic health services offered by the health centers include basic medical care, immunization of infants and children, monitoring of nutritional status, and family planning. Diarrhea, a disease that may be associated with poor sanitation, is ranked 4th in Bacnotan and 5th in Bauang of the ten leading causes of morbidity. The NSO

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2000 sanitation data revealed that only 51.9% of total households had septic tanks. San Fernando City and the towns do not have sanitary sewer systems.

63. Education. San Fernando City offers elementary, secondary, tertiary and graduate studies. Schools for tertiary education include 1 state university, 1 state college and 12 private colleges. Graduate studies can be accessed from the government state university and 4 private institutions. Vocational/Technical courses are available from 10 public vocational schools and 9 private vocational schools. In Bauang tertiary level education, as well as vocational education, is provided by one private school. Bauang’s close proximity to educational centers of San Fernando City and Baguio City allows the students to access quality tertiary education and graduate studies. Bacnotan has one state university providing tertiary level education, while San Gabriel and San Juan have none. Schools for elementary and secondary education are normally available in these towns.

64. Socioeconomic Survey. WDDSP conducted a household survey to get a good insight into the socioeconomic situation specific to the project area. Using stratified random sampling, three hundred eighty four (384) respondents were interviewed for a 95% level of confidence and standard deviation of 0.1. Based on this survey, average household size was 5.11 with 34.6% having 3-4 or 3-5 members. A significant percentage of 28.9% were women-headed households. Highest grade of household head was college level for 42.9% of WD connected households and 23.7% for non-connected households and high school level for 33.3% for WD connected and 42.9% for non-connected households. Respondents were distributed under a wide occupational range including farming, business, street vending, and government and private and employment; 23.8% of WD connected households interviewed were unemployed. Majority (81%) of households belonged to the Ilocano ethno linguistic group. Inter-marriage and migration patterns may be reflected in the 19% of households that were headed by non-Ilocano; 12 other ethno linguistic groups were represented in the survey. Sole occupancy of dwelling was most common at 82.8% with 41% owning the house they occupied.

65. The survey posted an average monthly income of P12,591, though 20.7% had incomes of less than P5,000 and another 32.4% had an income range of P5,000 – P9,999. Estimated household poverty threshold was P6,739 for the survey sample’s average household size of 5.11 members. This was computed from the official annual per capita poverty threshold for La Union for 2007 which was pegged at P15,826 for all areas. About 28.6% spent less than P5,000 per month while most (38.6%) spent about P5,000 – P9,999. Over 70% were unable to save while most of those who could (11.9%) had less than P1,000 in savings per month. Television (86.2%), cellular phones (81%) and refrigerators (58.9%) were the most common valuable items of the household.

66. Out of 383 cases in La Union, 79.6% of households had water-sealed toilets (flush or pour flush) connected to septic tanks. The next most common type of toilet system among 8.1% of the households was water-sealed (flush or pour flush) connected to a pit; 9.9% shared toilets; 1% had no toilet (wrap and throw, arinola, bush, etc.), no one reported using water-sealed flush or pour flush connected to a drainage. Most households (91.6%) reported satisfaction with their current toilet system; the main reason for dissatisfaction was due to backflow (43.8%); less than a quarter of households (23.2%) of MLUWD wanted to improve their septage system; for those who did, 45.6% prioritized installation of a septic tank.

67. There was high awareness on hand washing except for other critical activities involving children. All survey respondents reported washing hands before cooking,

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before eating, after using the toilet, before feeding children, and after washing the children after toilet; but only 57.7% washed hands before breastfeeding. Non- connected households transported water from source using open (86.1%) and closed containers (3.1%); pipe or water hose was also connected to a neighbor according to 8% of 323 cases; 4.1% of 342 non-connected cases had at least one member who suffered from a water-related disease during the past year; 1.5% of households had at least one child who suffered diarrhea; 17.9% of households treated drinking water; on the other hand, 9.8% of households with WD connection had at least one member who had suffered a water related disease in the past year with 7.3% of these households boiling faucet water for drinking.

68. Respondents sought medical services primarily from public facilities such as medical centers (45.3%), government hospitals (24%), private hospitals (16.7%) and private clinics (8.3%). There were 97.6% of survey respondents who were satisfied with available health services in their locality, with women slightly more satsfied than men; 70.3% of both female and male-headed households had access to Philhealth or had assistance on health expenses while 2.6% relied on self-medication. Significantly more female-headed households (4.5%) relied on self-medication than male-headed (1.8%) households.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

69. A comprehensive screening for environmental impacts is made through a review of the parameters associated with water supply projects against the components of the proposed MLUWD subproject and the environment where the facilities will be located. A screening checklist was developed from various sources such as DENR checklists, ADB’s “Rapid Environmental Assessment (REA) Checklist, and WB Environmental Source Book. Some items of the checklist may not be applicable to this particular subproject. However, they are included in the discussions to indicate that their applicability was reviewed in the environmental impact screening process. This will help identify which topics do not require further attention.

70. The assessment is made on the following phases of the subproject: (i) Pre- construction, (ii) Construction, and (iii) Operation and Maintenance. Results of the environmental impacts screening are summarized in Table 4, while the discussions of each issue are presented in the succeeding sections. In Table 4, impact types and magnitudes are indicated for both impacts without the mitigating measures and the resulting situations when mitigating measures will be implemented. For ease of identification, a summary of the environmental impacts that should be carried to the section for Environmental Management Plan (EMP) is presented at the end of this section as Table 5.

71. Environmental impacts arising from decommissioning of the proposed MLUWD facilities were also reviewed but are no longer further discussed due to the following: (i) decommissioning of facilities is a remote possibility since these will serve growing urban areas and such facilities are critical for sustaining those areas, (ii) residual waste cleanup is not a major concern since the facilities are not industrial manufacturing plants with potential problems for toxic and hazardous wastes, and (iii) solid wastes from decommissioning is also not a major concern since the structures are mostly made of reinforced concrete and the solid wastes are mostly recyclable materials such as broken concrete materials, reinforcing steel bars used in the structures, structural steel, roofing materials, electrical wires, etc.

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Table 4: Summary of Environmental Impacts Screening for MLUWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Encroachment to environmentally sensitive areas na na Impacts and risks to biodiversity conservation na na Encroachment to historical areas and cultural areas ∆ − ∆ Potential competing use of water resource ∆ − ∆ Potential nuisance and problems to the public  − ∆ Loss of assets (IR concerns)  − ∆

CONSTRUCTION PHASE Modification of construction site topography ∆ − ∆ Removal of Trees ∆ − ∆ Displacement of Rare or Endangered Species na na Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Oil and other hazardous materials releases ∆ − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Noise and air pollution of pumping stations ∆ − ∆ Ground subsidence due to over-pumping  − ∆ Noise and air pollution from water treatment plant ∆ − ∆ Waste generation of filter beds (backwash) ∆ − ∆ Pumping stations operational risk and safety  − ∆ Water treatment facility operational risk and safety  − ∆ Increase employment opportunities ∆ + ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

A. Design/Pre-Construction Phase Considerations

72. Encroachments. MLUWD subproject’s components will not be located in areas that are environmentally sensitive and areas with historical and cultural importance. As described in the environmental baseline, the proposed sites are residential, institutional, and agricultural landscapes. The proposed routes of the pipelines along the highway from the town of Bauang through San Fernando City and to the towns of San Juan and Bacnotan are presently residential, commercial, and agricultural landscapes, while proposed sites of pumping stations and reservoirs are in farmlands such as in Barangay Banlay, Bauang. Proposed pipelines routes in interior areas are

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 19 also in mainly residential areas such as in the town of San Gabriel. There are no known archaeological and cultural assets in these proposed sites. Nevertheless, precautions will be taken to avoid potential damage to any archaeological and cultural assets by inclusion of provisions in tender and construction documents requiring the contractors to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

73. Impacts and risks to biodiversity conservation. The issue on impacts and risks to biodiversity conservation is not applicable since the MLUWD subproject’s components will not be located in areas that are environmentally sensitive. The sites are not in undisturbed landscapes and over the years the ecological changes due to human activities in the area have resulted to the present residential, commercial, institutional, and agricultural landscapes.

74. Competing Use of Water Resource. Problems on competing use of groundwater resources are not expected since MLUWD shall apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict. In the issuance of water rights, NWRB will ensure that groundwater resources are appropriately allocated.

75. Nuisance and Problems to the Public. Potential nuisances and problems to the public during construction can best be avoided if proactively addressed during detailed design and pre-construction phase. Consultation and information dissemination to potentially affected people shall be done during detailed design. Tender documents shall include provisions addressing potential nuisances and problems to the public during construction. These include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience. In addition, prior to site works, the contractor shall coordinate with the appropriate agencies in the procurement of required clearances with regard to electricity, telephone lines and other utilities/structures that may be affected by construction activities. These shall all be reflected in the construction contracts.

76. Loss of Assets. Inventory of losses and required land for acquisition were made during the planning phase and shall be updated during detailed design phase as soon as the final pipeline alignments and final locations of facilities are available. A plan for compensation and other assistance corresponding to the losses of the affected people will be prepared. All payments to affected parties shall be made by MLUWD before the start of construction activities.

B. Construction Phase Environmental Impacts

77. Site Preparation. Construction of the water filter beds (Barangay Bumbuneg, San Gabriel), pumping stations, pipelines, and reservoirs will not involve modification of the construction site topography. Water supply pipelines will follow as much as possible the existing site contour. This issue is therefore considered not significant. Removal of trees will not be an issue due to the following: (i) pipelines will mostly be laid in trenches along the right-of-way of existing roads, and (ii) areas required for pumping stations and reservoirs are relatively small. The issue on displacement of rare or endangered species is not applicable to this subproject since there are no known rare or endangered species within the proposed sites of San Fernando City, Bacnotan, Bauang, San Gabriel, and San Juan.

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78. Soil Erosion and Sediment of Construction Sites. During rainy periods, exposed soil at the construction site can easily be washed away by runoff and carried to the natural drainage system. Hence, soil erosion of the construction sites could occur if preventive measures are not instituted.

79. Mitigation. Control of the surface runoff is necessary in preventing erosion. The contractor shall be required to use structural erosion prevention and sediment control practices which will divert the storm water flows away from the exposed areas, prevent sediments from moving offsite, and reduce the erosive forces of runoff waters. These may include the following: (i) interceptor dikes, (ii) pipe slope drains, (iii) straw bale barriers, (iv) sediment traps, and (v) temporary sediment basins. Whenever possible, total exposed area shall be minimized.

80. Nuisance/ public inconvenience in pipelaying. Public inconvenience could arise in pipelaying works due to prolonged period of water supply service interruptions. Dumping of construction materials and solid wastes in watercourses will also cause nuisance to the public aside from affecting water quality and the flow regime.

81. Mitigation. The construction contractor shall be required: (i) to do installation or replacement of pipes within the shortest time possible to minimize water supply cut- off periods and/or use of night time schedules, as well as announcement of water supply interruptions two to three days prior to actual cut-off; and (ii) not to dump earth, stones, and solid wastes in watercourses to avoid adverse impact on water quality and flow regime.

82. Construction Noise. Potential sources of noise are the construction equipment, such as trucks and other equipment, which can generate noise of 80 dB(A) from a distance of 30 meters. Loud noise sources such as blasting are not expected in the construction activities of the MLUWD subproject. This issue is important since the proposed pipelines routes, along the highway from the town of Bauang through San Fernando City and to the towns of San Juan and Bacnotan, have numerous residential and commercial areas. In San Gabriel, proposed pipelines routes are mainly in residential areas.

83. Mitigation. Nuisance from equipment noise can be mitigated with the use of sound suppression devices for the equipment. In areas near any house or noise- sensitive sites, noisy equipment shall not be operated during nighttime to early morning (22:00H – 06:00H). Noise levels due to construction activities should not exceed 50 dB(A) near schools such as the San Gabriel Vocational High School and San Felipe Elementary School in San Gabriel, 55 dB(A) in other areas, and 45 dBA during nighttime. Workers using noisy equipment shall be provided with earplugs.

84. Local Air Pollution Due to Construction Activities. Dust generation from trenching, earthworks, and soil preparation activities during dry periods will be an air pollution problem. Intermittent episodes of air pollution from smoke belching equipment may also occur. This issue is considered significant during dry periods. Another potential source of air pollution are large stockpiles of construction materials such as soil and aggregates. Without any mitigating measures, dust generation could be significant during dry periods.

85. Mitigation. The contractor should be required to perform regular water spraying of the sites during dusty periods in order to reduce the generation of dusts. He will also be required to use equipment that are properly maintained and are not smoke belchers. Covers for stockpiles that will be left idle for a long time shall be required. Covers will prevent dust generation due to wind action. Trucks transporting loose

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 21 construction materials such as sand, gravel, spoils, and the like shall be provided with tarpaulin cover.

86. Oil and other hazardous materials releases. Heavy equipment and vehicles will be used in the various construction activities for the MLUWD subproject. Aside from fuel, oil, and grease, the activities may also involve the use of paints and solvents. Although there is potential for accidental releases of these materials, the issue is not considered significant since expected quantities will be relatively small. However, as part of good construction practice, the contractors will be required to implement an awareness program for all workers regarding the prevention and management of spills and proper disposal of used containers. Fuel and oil shall be stored in a designated secured area provided with an impermeable liner to prevent the accidental spills from seeping into the ground.

87. Vehicular Traffic Congestion and Public Access. Construction activities, such as pipelaying, may cause traffic congestion in heavily traveled highways and narrow streets. It may hinder public access. In the MLUWD subproject, transmission line pipelaying along the highway from Bauang through San Fernando City and to the towns of San Juan and Bacnotan are expected to cause traffic congestion since there are lots of vehicles using the highway and pipeline alignment might be in the road shoulders or within the pavement. Installation of secondary pipes crossing the highway to the other side may cause the temporary closure of half the road and will lead to traffic congestion. This issue is therefore considered significant.

88. Mitigation. Contractors shall be required to: (i) prepare a traffic plan; (ii) closely coordinate with local authorities for the closure of roads or rerouting of vehicular traffic; (iii) consider the schedules of local activities with heavy presence of people such as festivities, processions, parades, etc. in the timing of construction activities; (iv) do proper stockpiling and immediate disposal of spoils to avoid nuisance and traffic/access obstruction; and (v) do immediate restoration of roads and other areas affected by pipe laying, construction activities and vehicles.

89. Hazards to public due to construction activities. Construction activities, such as pipelaying, along the roads may result to hazardous driving conditions since vehicles would still be using the road while construction activities are ongoing. The movement of construction vehicles and excavations would pose some hazards to the driving public. There is also risk of people falling down in open trenches since pipelaying trenches are normally left uncovered until pipeline testing is completed.

90. Mitigation. The contractor shall be required to implement a road safety plan incorporated in his construction schedule. Safety measures shall be implemented including: (i) warning signs to alert people of hazards around the construction sites, (ii) barricades, and (iii) night lamps for open trenches.

91. Pollution and Health Risk due to Workers Camp. The contractor is expected to erect temporary workers’ camps during construction of the MLUWD subproject. Improperly managed silt runoff and sanitary wastes from these camps may reach nearby areas. Poor sanitation and lack of proper solid waste management at the worker’s camp will provide the conditions for vermin and other disease vectors to easily multiply and infect the workers. This may lead to the transmission of diseases from the workers camp to other areas. These conditions will increase public health risk.

92. Mitigation. The construction contractor shall be required to: (i) install proper sanitary facilities to prevent the indiscriminate discharge of sanitary wastes at the

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 22 camps surroundings, (ii) implement proper solid waste management, and (iii) prevent surface runoffs from flowing into the workers camps to avoid carrying away any contaminants. The contractor shall be required to use temporary diversion drains, catch drains, and silt-traps at these camps.

93. Improper Closure of Construction Sites. Construction activities will generate construction solid wastes after completion of work. This may include used wood materials, steel works cuttings, paint and solvents containers, used oil from equipment, unused aggregates, etc. If not remove from the sites after completion of the construction activities, these solid wastes will cause aesthetic problems and some will be potential sources of contaminants for surface runoffs. This is important in the reservoir sites of San Fernando City and the towns of San Juan, Bacnotan, Bauang, and San Gabriel.

94. Mitigation. After completion of work activities, the contractor shall be required to remove the construction wastes from the sites before finally leaving. The entire site must be free of any construction solid wastes. Implement the required surface restoration.

95. Increase Employment Opportunities at Work Sites. Various construction activities for the pumping stations, filter beds, reservoirs, and pipelines will definitely require a considerable number of workers. The impact would be beneficial and significant since employment opportunities in the area will increase.

96. Enhancement. Whenever possible, the contractor shall be encouraged to use the available local labor for these construction activities. The recruitment of workers shall be coordinated with the local officials.

C. Operation Phase Environmental Impacts

97. Health hazard due to delivery of poor water quality. Delivery of poor water quality will increase the health risk to water consumers. Threats to water quality are always present in all components of a water supply system, from the raw water sources up to the service connections. Threats of contamination in water sources may be due to the presence of bacteria, viruses, protozoa, or chemicals. This raises the need to provide a secure barrier to post-treatment contamination as the water is transported to the consumer. MLUWD should therefore manage the environmental risk to its water supply system. Failure to implement the appropriate management measures may result to adverse consequences threatening public health such as the case of a microbial outbreak.

98. Mitigation. Delivery to customers of poor water quality from (i) the deepwells and pumping stations of San Juan and Bauang, (ii) the water treatment facility at San Gabriel, and (iii) the entire water supply network can be prevented in a broader scale by implementing a water safety plan as advocated by WHO. The 2007 Philippine Standards for Drinking Water (PSDW) also advocates preparation of a water safety plan.

99. A water safety plan shall enable MLUWD to (i) prevent contamination of its water sources, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re- contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the MLUWD in applying best practices in ensuring delivery of potable water to its consumers.

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100. For controlling microbial contamination, a hypochlorinator will be installed at each pumping stations and the water treatment facility at San Gabriel to ensure that water will be chlorinated and adequate residual disinfection will be maintained. This device uses a feed pump to inject controlled amount of chlorine solution into the water leaving the pumping stations. This is safer that using chlorine gas. The standards for chlorine residual of the 2007 PSDW are: (i) 0.3 mg/l minimum for detection at the farthest point of the distribution system and (ii) 1.5 mg/l maximum for detection at the farthest point of the distribution system.

101. Pollution from increased generation of sewage and sullage. Increasing the water supply to the service area will also increase the generation of sewage and sullage since most of the water used by consumers will become wastewater from the toilets, kitchens, and laundry areas. This wastewater will contribute to pollution of the surrounding areas. Without a mitigating measure, this impact would be significant.

102. Mitigation. Wastewater from the toilets, kitchens, and laundry areas will normally be handled by the individual septic tanks system of the water consumers. The septic tank system will: (i) treat the wastewater and reduce the pollution potential and (ii) reduce the people’s exposure to untreated domestic wastewater. This will help in interrupting disease transmission.

103. Noise and air pollution of pumping stations. Noise of pumping stations is not an issue for the MLUWD subproject since the there will be no significant sources of mechanical noise within the stations. Potential sources of noise, such as pumps and electric motors will be housed in buildings that provide noise attenuation. Local air pollution levels will not be affected by equipment use during normal operations since the pumping station will run on electricity to be supplied by the local power companies (La Union Electric Cooperative and La Union Electric Company). Hence, there will be no air pollution associated with fuel combustion during normal electricity supply. However, a diesel-fueled electricity generator set will be used during the occasional brownout events. This generator set will surely comply with the air pollution regulations since a permit will be secured for its use. There will be no operational activities that will cause dust generation. Mitigating measures are therefore not necessary for noise and air pollution.

104. Ground subsidence due to over-pumping. Pumping groundwater should not be done without a defining a limit to how much water can be extracted. Excessive groundwater pumping will result to continuous reduction in the groundwater level in the aquifer. This will lead to a situation where the aquifer at some point will not be able to supply water in an economical or even physical sense. This will also cause an environmental effect known as ground subsidence. It is the result of soil compression when the drop in the water level will change the soil structure. Ground subsidence can result in significant damage to properties and structures. This issue is important to MLUWD since its water sources are mainly groundwater.

105. Mitigation. To avoid over pumping the aquifers, each well shall be operated below its safe yield. This refers to the long-term balance between the water that is naturally and artificially recharged to an aquifer and the groundwater that is pumped out. When more water is removed than is recharged, the aquifer is described as being out of safe yield. When the water level in the aquifer then drops, mining of groundwater is happening. At any rate, the recommendations on the sizes of pump and motor to be installed on the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. MLUWD should monitor the groundwater level of each well to determine if continuous reduction in the groundwater level in the aquifer is occurring. WD staff are quite capable of doing this

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simple task since it will only use a wire to be attached to an ordinary electrical tester and lowered into the well, a common practice in the Philippine water industry. The water level below ground surface will be measured from the distance where the electrical tester indicated contact with the water level.

106. Waste generation of filter beds. A water filtration facility will generate wastewater in the form of filter backwash water. The process of continually renew the efficiency of the filter units will require repeated backwashing operation to unclogged the filter beds. This activity will generate filter backwash water that contains the solids removed by the filter beds. In addition, sludge at the sedimentation basins has to be removed regularly in order to maintain the capacity of the basins. However, this issue is considered not significant since the proposed filter beds at Barangay Bumbuneg in San Gabriel will be small and will simply augment the existing sedimentation basin and the expected clean water output is small at only 27 lps. Nevertheless, the filter backwash water will be sent to the sedimentation basin. Settled sludge of the sedimentation basin shall be sent to large sludge ponds where the long detention time allows safe discharge of clear water.

107. Pumping stations operational risk and safety. The proposed MLUWD pumping stations will not inherently pose risks to the environment and people. These facilities will not use flammable materials during normal operations. Conditions of extreme conditions of temperature and pressure are not to be expected. Use of diesel-powered generators as stand-by power source is considered safe since these are equipped with safety devices and leak detection for fuel tanks. The potential source of risky situation will be the used of chlorine gas as disinfectant. Accidents may occur with chlorine gas handling.

108. Mitigation. In older water facilities, the significant source of hazardous situations is the use of chlorine gas as disinfectant. This shall be avoided in the proposed MLUWD pumping stations by using sodium hypochlorite (NaOCl), the liquid form of chlorine. NaOCl is inherently a safer disinfectant. Its character can simply be put as household bleach or swimming pool chlorine.

109. Water treatment facility operational risk and safety. The proposed MLUWD water filtration facility (filter beds) is a type of facility that will not inherently pose any significant risk to the environment and people. It will not use flammable materials during normal operations. Conditions of extreme conditions of temperature and pressure are not to be expected. Use of diesel-powered generators as stand-by power source is considered safe since these are equipped with safety devices and leak detection for fuel tanks. The potential source of risky situation will be the used of chlorine gas as disinfectant.

110. Mitigation. In older water treatment plants, the significant source of hazardous situations is the use of chlorine gas as disinfectant. This shall be avoided in the proposed MLUDWD water filtration facility (filter beds) by using sodium hypochlorite (NaOCl), the liquid form of chlorine. NaOCl is inherently a safer disinfectant. Its character can simply be put as household bleach or swimming pool chlorine.

111. Increase employment opportunities. Operation and maintenance of the pumping stations, reservoir, and pipelines will definitely require a number of workers. The impact would be beneficial since employment opportunities in the area will increase. However, the expected number of additional workers will be small since the additional water supply facilities are not labor intensive. This impact is therefore considered less significant.

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112. After impacts and risk screening, Table 5 lists the environmental impacts and risks that requires mitigation and shall be carried to the EMP Section.

Table 5 : Environmental Impacts and Risks for Inclusion in EMP of MLUWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Potential nuisance and problems to the public  − ∆ Loss of assets (IR concerns)  − ∆

CONSTRUCTION PHASE Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Ground subsidence due to over-pumping  − ∆ Water treatment facility operational risk and safety  − ∆ Pumping stations operational risk and safety  − ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

113. MLUWD has undertaken various activities concerning information disclosure, public consultation, and public participation for the proposed MLUWD’s water supply subproject. These were done to achieve a meaningful stakeholders’ consultation and ensure subproject success. During the planning phase, information regarding the proposed water supply subproject were disclosed to the public such as in the conduct of a socioeconomic survey between April to May 2009. Some 384 households in MLUWD’s area were informed about the proposed subproject and interviewed for socioeconomic data. Survey respondent also included those households without water service connection with MLUWD.

114. Key informant interviews and focus group discussions (FGDs) with barangay and city officials were conducted to get their cooperation and gather information relative to poverty incidence and concentration, and identify needs and recommendations on water a. Participants in the key informant and FGDs included the following: (i) WD staff and management, (ii) local health officials, (iii) gender focal persons of LGU, (iv) city and barangay officials, (v) LGU planning offices, (vi) local environment offices, and (vii) urban poor NGOs .

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115. Public Consultation. Last 04 September 2009, MLUWD conducted an initial public consultation and formally discussed the proposed water supply subproject with the stakeholders and requested their views. A total of 13 stakeholders’ representatives participated. Stakeholders were encouraged to raise their social and environmental issues. Participants included: (i) concerned individuals, (ii) barangay officials, (iii) NGOs, (iv) LGU planning officials, (v) Liga ng mga Barangay, and (vi) WD staff and management. Stakeholders expressed support to the MLUWD subproject. Summary of the consultation outcomes is presented in Table 6, while the documentation is presented at the annexes. Septage management was part of the consultation topics since it was a subproject component during the initial stage of the study. MLUWD decided later in March 2010 to exclude the sanitation component from the subproject.

116. Future Disclosure and Consultations. During detailed design, LWUA and MLUWD will again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. Views of the stakeholders will be considered in the overall design process. Stakeholders’ consultations shall be continued throughout the duration of the construction phase. MLUWD shall keep records of environmental and social complaints, received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

Table 6: Summary of Consultation Outcomes Group Represented Issues/ Concerns Raised Project’s Response

Senior Citizen(NGO); 1 Will participants of the Initially, it shall be those attendee septage management who have water program be only those connections with MLUWD near the sites of water sources Bauang Association of will the old pipelines be existing pipelines are still Barangay Captains; 4 replaced good and will be retained. attendees San Fernando City will have increase water pressure due to the additional parallel pipelines to be installed City Planning Office; 1 heavy traffic that civil works contracts will attendee pipelaying activities may include provisions cause in the city requiring the contractors to particularly during big implement a traffic events such as fiesta and management program in school openings close coordination will local authorities La Union Vibrant Women will new pipelines be MLUWD will install new Incorporated (Bauang installed parallel pipelines NGO); 1 attendee LGU Bauang; 2 attendees how the project will handle the project has a revolving the existing septic tanks fund for old septic tanks since most of them have repair, while new septic unlined bottoms tanks have lined bottoms in compliance to the

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building code San Gabriel Municipal laxity of security at the MLUWD will look into the Planning Office; 1 San Gabriel sedimentation matter since the facility is attendee basin since students were supposed to be guarded at able to bath at the basins all times La Union Vibrant Women how a barangay may be a barangay resolution Incorporated (San Juan connected to the new requesting MLUWD is NGO); 1 attendee water supply system needed and MLUWD will then conduct a concessionaire survey

VII. GRIEVANCE REDRESS MECHANISM

117. Local grievance redress mechanism is important in the implementation of the proposed MLUWD subproject since any complaints and concerns of the affected people must be address promptly at no costs to the complainant and without retribution. This mechanism shall be disclosed in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc Water District Environmental Complaints Committee (WDECC) for expeditious resolutions to the complaints. Complaints during the operation phase can be brought to the attention of the MLUWD or DENR-EMB.

118. MLUWD Environmental Complaints Committee. MLUWD shall form the WDECC to be chaired by the Water District-Project Implementation Unit (WD-PIU) head. Members shall include the following: (i) contractor’s highest official at the site such as Construction Manager or Construction Superintendent, (ii) barangay officials, (iii) concerned NGOs, and (iv) women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the civil works contract. Expeditious resolution of complaints during construction is important since activities are sometimes continuous and can easily change the landscapes within a week. For the quick filing of complaints, the WDECC shall prepare a form to be used for the filing of grievances/complaints. The use of form will also facilitate the filing of complaints by illiterate persons.

119. The steps to be followed in filing complaints and the procedures for redress are the following: (i) complainant shall provide the background and file the complaint verbally or in writing to WDECC. The WDECC secretary shall assist the complainant in filling-up the complaint form; (ii) within 2 working days, the WD-PIU head, contractor’s representative, and complainant shall discuss if the complaint can be resolved without calling for a WDECC meeting; (iii) if the complaint cannot be resolved by the WD-PIU head and contractor’s representative, a WDECC meeting shall be called with the complainant to resolve the complaint within 5 working days; (iv) if the complaint cannot be resolved, the complainant shall raise the issue to the barangay officials where barangay rules and regulations are followed for the amicable settlement of disputes at the barangay level without judicial recourse; and (v) if the complaint cannot be resolve at the barangay level, the complainant shall seek recourse with the courts. If the complaints are based on violations of the ECC terms and conditions, the complainant has an option to also bring the issue to DENR.

120. Complaints to DENR. Complaints about environmental performance of projects issued an ECC can also be brought to the attention of DENR-EMB. The process of handling such complaints is described in the Revised Procedural Manual

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(2007) for the IRR of PD 1586. The steps that DENR-EMB may follow in handling complaints are: (i) DENR-EMB shall verify if the complaint is actionable under P.D. 1586, (ii) within 72 hours from receipt of a complaint DENR-EMB will send the proponent a Notice of Alleged Violation (NAV) and requests for an official reply as to why the proponent should not be penalized, (iii) DENR-EMB may conduct field validation, site inspection and verification or other activities to assess or validate the complaint. The proponent is allowed to respond within 7 days. Proponent’s failure to respond to the NAV and further notices will force DENR-EMB to take legal actions. DENR may issue a Cease and Desist Order (CDO) to project proponents which shall be effective immediately based on: (i) violations under the Philippine EIS System, and (ii) situations that present grave or irreparable damage to the environment. PD 1586 also allows DENR to suspend or cancel the proponent’s ECC if the terms and conditions have been violated.

VIII. ENVIRONMENTAL MANAGEMENT PLAN

121. This section addresses the need for mitigation and management measures for the MLUWD subproject. Information includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up is presented in the implementation arrangement and discusses the roles during implementation and the required monitoring. It also outlines the requirements and responsibilities during pre- construction, construction, and operation phases.

A. Environmental Mitigation

122. Table 7 presents the information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures. Details of mitigating measures are already discussed in Section V where the need for mitigation of each impacts was determined in the screening process.

Table 7: Environmental Mitigation Plan of MLUWD Subproject Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision PRE-CONSTRUCTION PHASE Excavation Potential Tender documents shall include Pipeline Part of detailed Design requirements damage to a provision that will require trenches, design cost Consultants / archaeological construction activities to be civil works LWUA Project and cultural stopped immediately upon excavations Management assets discovery of any archaeological Unit (PMU) and cultural relics and authorities will be informed promptly Social and Potential Consultation with the affected Pipelines Part of detailed MLUWD PIU, community nuisance and communities regarding the routes, design cost Design concerns problems to the expected impacts and proposed reservoir Consultants / public mitigation measures of the and LWUA PMU project; Tender documents shall pumping include provisions addressing the station potential nuisances and problems to the public during construction phase IR concerns Loss of assets Compensation and other Pipelines Part of detailed MLUWD PIU, assistance for loss assets and routes, design cost Design land acquisition; Consultation reservoir Consultants / and information dissemination to and LWUA PMU affected people. pumping stations CONSTRUCTION PHASE Pipelaying Soil erosion Total area exposed shall be Pipelines Incorporated in Contractor /

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision and other and sediments minimized; use of structural routes, construction MLUWD PIU, civil works of construction erosion prevention and sediment reservoir contract Supervision sites during control practices which may and Consultants rainy periods include: interceptor dikes, pipe pumping slope drains, straw bale barriers, station sediment traps, and temporary sediment basins Pipelaying Nuisance / Minimize water supply cut-off Pipelines Incorporated in Contractor / inconvenience periods and /or use of nighttime routes, construction MLUWD PIU, to the public schedules, as well as contract Supervision announcement of water supply Consultants interruptions two to three days prior to actual cut-off; no dumping of earth, stones, and solid wastes in watercourses Pipelaying Nuisance from Consultation with affected areas; Pipelines Incorporated in Contractor / and other noise of not to operate noisy equipment routes, construction MLUWD PIU, civil works construction during nighttime (22:00 – 06:00); reservoir contract Supervision equipment sound suppression for and Consultants equipment; ear plugs for workers pumping station Pipelaying Air pollution Water spraying for dust control; Pipelines Incorporated in Contractor / and other due to construction materials with routes, construction MLUWD PIU, civil works construction potential for significant dust reservoir contract Supervision activities generation shall be covered; and Consultants tarpaulin cover for trucks pumping transporting loose construction station materials; not smoke belchers equipment Pipelaying Traffic Close coordination with local Pipelines Incorporated in Contractor / and other congestion and authorities in road closure and routes construction MLUWD PIU, civil works hindrance to traffic rerouting; contractor’s contract Supervision access traffic plan; proper stockpiling of Consultants materials and immediate disposal of spoils; immediate restoration of roads and affected areas Pipelaying Pollution and Proper camp sanitation; Workers Incorporated in Contractor / and other health risks installation of sanitary facilities; camp construction MLUWD PIU, civil works due to workers solid waste management; contract Supervision camp surface runoffs control such as Consultants temporary diversion drains, catch drains, and silt-traps Pipelaying Hazard to Implement road safety plan and Pipelines Incorporated in Contractor / and other public due to safety measures including routes, construction MLUWD PIU, civil works construction warning signs to alert people of reservoir contract Supervision activities hazards around the construction and Consultants sites, barricades, and night pumping lamps for open trenches in station pipelaying Rehabilitation Improper Removal of all construction Pipelines Incorporated in Contractor / and closure closure of wastes and implement surface routes, construction MLUWD PIU, of construction restoration reservoir contract Supervision construction sites and Consultants sites pumping station Pipelaying Increase Contractor required to give Pipelines No cost Contractor / and other employment preference to local labor; workers routes, MLUWD PIU, civil works opportunities recruitment to be coordinated reservoir Supervision with local officials and Consultants pumping station OPERATION PHASE Water Health hazard Water disinfection using chlorine; Pipelines, Part of operation MLUWD / LWUA production due to delivery water safety plan implementation reservoirs, & maintenance of poor water and costs quality pumping stations, Water Pollution from Septic tanks system of water Subproject Cost of water Water consumer/ consumption increased consumers water consumers LGU generation of supply sewage and service area sullage

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision Groundwater Potential Groundwater pumping at lesser pumping No cost MLUWD / LWUA pumping ground than the safe yield of each well stations subsidence due to excessive pumping Water water treatment Use liquid chlorine (sodium Water Part of capital, MLUWD / LWUA treatment plant hypochlorite) instead of chlorine treatment operation & plant operational risk gas plant maintenance operation and safety costs Pumping Pumping Use liquid chlorine (sodium Pumping Part of capital, MLUWD / LWUA station station hypochlorite) instead of chlorine station operation & operation operational risk gas maintenance and safety costs

123. Although details of the required mitigating measures are already discussed in the screening for impacts, the following items are discussed further to highlight their importance: (i) tender documents and construction contracts, (ii) contractor’s environmental management plan, (iii) construction site management plan, (iv) water safety plan, (v) source protection study and wellhead protection plan, and (vi) unanticipated environmental impacts.

124. Tender Documents and Construction Contracts. Environmentally responsible procurement advocates the inclusion in construction contract documents the provisions addressing the management of environmental impacts and risk during construction. This includes the contractor’s submittal of a Contractor’s Environmental Management Plan (CEMP). Tender documents and construction contracts shall therefore include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (vii) public safety and convenience.

125. Contractor’s EMP. During construction, each contractor will be guided by its detailed CEMP. This shall be based on the MLUWD subproject’s EMP with details on staff, resources, implementation schedules, and monitoring procedures. The agreed CEMP will be the basis for monitoring by PMU, MLUWD PIU, and other monitoring parties. Inclusion in construction contract documents the provisions requiring the contractor to submit a CEMP is important since the contractor will be legally required to allocate a budget for mitigation measures implementation. The CEMP will allow MLUWD’s construction supervision engineer to focus on what are specific items expected from the contractor regarding environmental safeguards on a day-to-day basis. With the CEMP, MLUWD can easily verify the associated environmental requirements each time the contractor will request approval for work schedules.

126. The CEMP shall be prepared by all contractors before the start of the construction works and shall be approved by MLUWD’s PIU. This requirement shall be included in the construction contracts. It shall provide details on specific items related to the environmental aspects during construction. It shall include specifications on requirements for dust control, erosion and sediment control, avoidance of casual standing water, management of solid wastes, workers’ camp sanitation, pollution from oil, grease, fuel spills, and other materials due to the operation of construction machineries, safety and traffic management, avoidance of inconveniences to the public, air and noise pollution control. It shall also include

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guidance on the proper design of the construction zone, careful management of stockpiles, vegetation, topsoil, and vehicles and machinery.

127. Water Safety Plan. MLUWD shall manage the environmental risk to its water supply system in a broader scale. As previously pointed out, the role of a water safety plan in addressing the risk cannot be overemphasized. This is an approach advocated by WHO for ensuring the delivery of safe drinking water to the consumers. Its need is also reflected in the 2007 PNSDW. The water safety plan shall enable the MLUWD to (i) prevent contamination of its water sources water, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re-contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the MLUWD in applying best practices in ensuring delivery of potable water to its consumers.

128. Source Protection Study and Wellhead Protection Plan. An input to the preparation of the water safety plan is the source protection study. This includes preparation of a source water assessment and wellhead protection plan. The study will help identify risk to the water supply system. A source water assessment is an evaluation of how susceptible a source may be to potential sources of contamination. Potential contaminant sources that could adversely affect the quality of water supply source are identified. Output of assessments will be used to prepare the wellhead protection plan. Wellhead Protection is a way to prevent drinking water from becoming polluted by managing potential sources of contamination in the area with influence to the groundwater supplies to the well. The wellhead protection plan includes designating the protection area or capture zone. A wellhead protection plan is particularly important for MLUWD since its groundwater sources are within or near built-up areas and the risk of contamination to these sources is high.

129. Unanticipated Environmental Impacts. Where unanticipated environmental impacts become apparent during project implementation, MLUWD shall prepare a supplementary environmental assessment and EMP to assess the potential impacts and outline mitigation measures and resources to address those impacts.

B. Environmental Monitoring

130. Table 8 presents the information on: (i) aspects or parameter to be monitored, (ii) location where monitoring is applicable, (iii) means of monitoring, (iv) frequency of monitoring, (v) responsibility of compliance monitoring, and (vi) cost of monitoring. The PMU shall prepare quarterly environmental monitoring reports to be submitted to LWUA management detailing the status of mitigating measures implementation.

Table 8: Environmental Monitoring Plan of MLUWD Subproject Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility PRE-CONSTRUCTION PHASE Specific Pipeline Verify draft and Twice – draft Design LWUA PMU Part of project provision in trenches, civil final documents and final consultants management in tender works documents detailed design documents on excavations (minimal cost) archeological/ cultural relics Consultation Pipelines Verify meetings After MLUWD, LWUA PMU Part of project meetings; routes, documentation; completion of Design management in Specific reservoir and Verify draft and meetings; consultants detailed design provisions in pumping station final documents Twice – draft (minimal cost) tender and final

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Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility documents on documents nuisance & problems to public Consultation Pipelines Verify meetings After MLUWD, LWUA PMU Part of project meetings; routes, documentation; completion of Design management in payments to reservoir and Verify plans meetings; consultants detailed design affected people pumping and IR upon (minimal cost) stations payments completion of payments CONSTRUCTION PHASE Total area to be Pipelines Visual Daily during Contractor Construction Part of consultant’s exposed; runoff routes, inspection of rainy periods supervision construction flowing into reservoir and sites; plans consultants, supervision disturbed sites pumping station verification MLUWD PIU contract; minimal cost to MLUWD PIU Water supply Pipelines Visual Daily Contractor Construction Part of consultant’s interruptions; routes inspection of supervision construction materials and sites; work consultants, supervision solid wastes schedules MLUWD PIU contract; minimal dumped in verification cost to MLUWD watercourses PIU Noise levels not Pipelines Use of sound Daily Contractor Construction Part of consultant’s to exceed 50 routes, levels meter supervision construction dBA near reservoir and consultants, supervision school, 55 dBA pumping station MLUWD PIU contract; minimal in other areas, cost to MLUWD and 45 dBA PIU during nighttime Dust, cover of Pipelines Visual Daily Contractor Construction Part of consultant’s stockpiles, routes, inspection of supervision construction smoke belching reservoir and sites consultants, supervision pumping station MLUWD PIU contract; minimal cost to MLUWD PIU Road closure Pipelines traffic plans weekly Contractor Construction Part of consultant’s and traffic routes verification supervision construction rerouting; consultants, supervision materials MLUWD PIU contract; minimal stockpiles; road cost to MLUWD restoration PIU Sanitary toilets, Workers camps Visual Once before Contractor Construction Part of consultant’s garbage bins, inspection of start of supervision construction runoff controls camps construction consultants, supervision and once MLUWD PIU contract; minimal monthly cost to MLUWD PIU Road safety Pipelines Visual Daily Contractor Construction Part of consultant’s plan; sign, routes, inspection of supervision construction barricades and reservoir and sites consultants, supervision night lamps pumping station MLUWD PIU contract; minimal cost to MLUWD PIU Construction Pipelines Visual Once before Contractor Construction Part of consultant’s wastes routes, inspection of final stage of supervision construction reservoir and sites demobilization consultants, supervision pumping station MLUWD PIU contract; minimal cost to MLUWD PIU Number of local Pipelines Verification of Once a month Contractor MLUWD PIU No cost labor employed routes, contractor’s reservoir and records pumping station OPERATION PHASE E. Coli bacteria; Pipelines, Water sampling Monthly for MLUWD LWUA Part of MLUWD’s PNSDW reservoirs, and and laboratory bacteria; operation cost physical & pumping test annual for (USD300 /year) chemical stations, physical & chemical

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Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility Septic tank of Subproject Visual Once a year Water LGU Minimal cost water water supply inspection of consumer consumers service area sites

Groundwater Wells/ pumping Use of Once a month MLUWD LWUA Minimal cost to levels stations groundwater MLUWD level meter liquid chlorine Water Verification of Once a year MLUWD LWUA Minimal cost usage treatment plant operation records liquid chlorine Pumping Verification of Once a year MLUWD LWUA Minimal cost usage stations operation records

131. Project Performance Monitoring. Project performance monitoring presents the desired outcomes as measurable events by providing parameters or aspects that can be monitored and verified (Table 9). Tendering process advocating environmentally responsible procurement is a desired outcome during the pre- construction phase. This can easily be verified by checking if EMP requirements are incorporated in construction contracts. Construction phase desired outcomes include effective management of environmental impacts and reduce risk to public. For the operation phase, MLUWD’s water supply system must meet the drinking water standards (2007 PNSDW) for bacteria count (E. coli), color, pH, turbidity, dissolved solids, hardness, alkalinity, manganese, iron, fluoride, chloride, sulfates, magnesium, calcium, carbonates, and bicarbonates .

Table 9: Project Performance Monitoring of MLUWD Subproject Aspects / Means of Frequency Implemen- Compliance Monitoring Desired Outcomes Parameters Monitoring tation Monitoring Cost to be monitored PRE-CONSTRUCTION Detailed design is EMP Verify detailed Two reviews: MLUWD, LWUA PMU Minimal environmentally requirements design (i) draft Design cost responsive incorporated documents; detailed consultants in detailed EMP design design requirements documents reflected in and (ii) prior to tender approval of documents final documents Tendering process EMP Verify Prior to MLUWD LWUA PMU Minimal advocates requirements construction finalization of PIU cost environmentally incorporated contract construction responsible in construction documents; contract procurement contracts documents CONSTRUCTION PHASE Effective management Number of Verification of Once a month Contractor Construction Part of of environmental public contractor’s supervision consultant’s impacts during complaints on records; consultants, construction construction construction MLUWD MLUWD PIU supervision activities coordination contract; with local minimal officials cost to MLUWD PIU Reduce risk to public Number of Verification of Once a month Contractor Construction Part of during construction accidents contractor’s supervision consultant’s involving records; consultants, construction construction MLUWD MLUWD PIU supervision activities coordination contract;

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with local minimal officials cost to MLUWD PIU OPERATION PHASE Water quality meets Required Water Monthly for MLUWD LWUA Part of drinking water drinking water sampling and bacteria; MLUWD’s standards quality laboratory test annual for operation parameters physical & cost chemical (USD300 /year)

C. Implementation Arrangement

132. This subsection presents the: (i) institutional set-up, (ii) implementation schedule, (iii) required clearances and permits, and (iv) capability building

133. Institutional Setup. LWUA is the executing agency, while MLUWD is the implementing agency. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. LWUA will establish a Project Management Unit (PMU) to coordinate implementation at the national level, including procurement of goods, works, and services. A PMU staff shall be designated as the Environment Officer for the project. At the subproject level, MLUWD will be responsible during construction and operation phase of the subproject. During the construction phase, MLUWD shall establish a Project Implementation Unit (PIU) to work closely with LWUA’s PMU. A team of consultants will assist LWUA’s PMU and MLUWD during pre-construction and construction phases. The role of the WDECC during the construction phase is highlighted since it is an important aspect of the grievance redress mechanism in promptly addressing the public’s complaints about environmental performance of the subproject during execution of the construction activities.

134. Environmental Monitoring Reports. During the construction period, the construction supervision consultants, together with the PIU, shall prepare monthly environmental monitoring reports to be submitted to MLUWD and the PMU. The contractor shall submit to the PIU a monthly environmental monitoring report. Based on the monthly reports, the PMU shall prepare semi-annual environmental monitoring reports which shall be submitted by LWUA to ADB.

135. Implementation Schedule. As presented in the project description, the MLUWD subproject is scheduled to start on 2011 and to be completed on December 2013. However, construction of the components is scheduled for 2012 up to 2013. MLUWD shall ensure that construction contract provisions related to the EMP shall be included in the tendering stage in 2011.

136. Clearances and Permits. Under present Philippine regulations, MLUWD shall apply for an Environmental Compliance Certificate (ECC) from the DENR for the proposed water supply systems.

137. Capability Building. WDDSP implementation will be supported by consulting services to be sourced in two contract packages: (i) project management advisory services, including detailed engineering designs, preparation of contract documents, support to water districts with construction supervision and quality control, and the preparation of any resettlement plans; and (ii) institutional development and capacity building for LWUA, the project management unit (PMU), and water districts.

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IX. CONCLUSION AND RECOMMENDATIONS

138. MLUWD is presently suffering from low water pressure in its distribution system. With the proposed water supply system under WDDSP, its capacity to deliver safe drinking water and adequate water pipeline pressure will significantly improve .

139. The environmental screening process has highlighted the environmental issues and concerns of the proposed MLUWD subproject. An important fact considered in the screening is that the proposed sites are not within undisturbed landscapes since the proposed routes of the pipelines along the highway from the town of Bauang through San Fernando City and to the towns of San Juan and Bacnotan are presently residential, commercial, and agricultural landscapes, while proposed sites of pumping stations and reservoirs are in farmlands or near residential areas. Hence, the proposed subproject is essentially not a new incursion to an ecologically untouched zone.

140. Based on the screening for environmental impacts and risks, there are no significant negative environmental impacts and risks that cannot be mitigated. Consequently, this assessment concludes that the proposed MLUWD subproject can be implemented in an environmentally acceptable manner. There is no need for further environmental assessment study. A full EIA is not warranted and the subproject’s environmental classification as Category B is deemed appropriate. The IEE shall therefore be finalized as the final environmental assessment document of the proposed subproject.

141. The proposed MLUWD subproject is hereby recommended for implementation with emphasis on the following: (i) EMP of MLUWD subproject shall be included in the design process; (ii) Contracts of design consultants shall have provisions requiring the consultants to consider EMP recommendations in the design process; (iii) Tendering process shall advocate environmentally responsible procurement by ensuring the inclusion of EMP provisions in the bidding and construction contract documents; (iv) Contractor’s submittal of a CEMP shall be included in the construction contract; (v) Contract provisions on creation and operation of the WDECC shall be included in construction contracts; (vi) LWUA, with its regulatory function, shall ensure that capability building for MLUWD shall be pursued; and (vii) MLUWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

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REFERENCES

Asian Development Bank (ADB). 1993. Environmental Guidelines for Selected Infrastructure Projects. Office of the Environment, Asian Development Bank.

____. 1998. Environmental Assessment Requirements of the Asian Development Bank. Environment Division Office of the Environment and Social Development, Asian Development Bank.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Water Supply. ADB Online.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Sewage Treatment. ADB Online.

____. 2009. Safeguards Policy. ADB Online.

Department of Environment and Natural Resources (DENR). 1990. Revised Effluent Regulations of 1990. DENR Administrative Order No. 35.

Department of Health (DOH). 2007. Philippine National Standards for Drinking Water.

Poyry-IDP Consult. 2009. Subproject Appraisal Report: Metro La Union Water District. ADB TA7122-PHI. Manila.

World Bank (WB). 1991. Environmental Assessment Sourcebook Volume II – Sectoral Guidelines.

____ (WB). 2006. Philippine Sanitation Sourcebook and Decision Aid.

World Health Organization. 2005. Water Safety Plans. Geneva.

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ANNEXES

Sites Photographs

Minutes of Consultation Meeting

List of Participants - Consultation Meeting

Attendance Sheet - Consultation Meeting

Photographs - Consultation Meeting

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SITES OF PROPOSED MLUWD WATER SUPPLY SYSTEM

Photo No.1 – Farmland as site of proposed wells in Barangay Banlay, Bauang

Photo No.2 – Typical road in MLUWD areas where water supply pipelines will be laid

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Minutes of the Public Consultation/Meeting held at Midtown Restaurant, San Fernando City, La Union, 04 September 2009

Opening/ Presentations:

The public consultation/meeting started at 2:00 P.M. with Metro La Union Water District (MLUWD)’s General Manager (GM), Mr. Felipe Picazo, welcoming the participants and thanked them for positively responding to MLUWD’s invitation.

Mr. Arturo Rimando, MLUWD’s Engineering Division Manager, presented the detailed aspects of the proposed water supply system and septage management program. He emphasized that San Fernando City should not wait until the coastal waters and groundwater quality will deteriorate further – a septage management program should now be initiated. Mr. Ruel Janolino, WDDSP’s Environment Specialist, provided additional details of the proposed septage management program and encouraged the participants to raise any points concerning environmental and social issues. Juliet Villegas, WDDSP’s Resettlement Specialist, discussed the advocacy aspects of the proposed septage management program.

Comments, Views, Issues and Concerns

Mr. Perfecto Sanchez, Senior Citizen NGO, asked if the participants of the septage management program will only be those near the sites of water sources. MLUWD’s GM answered that initially it shall be those who have water connections with MLUWD.

Mr. Martin Montanez, President of Bauang Association of Barangay Captains (ABC), asked if the old pipelines will be replaced. MLUWD’s GM answered that existing pipelines are still good and will be retained. San Fernando City will have increase water pressure due to the additional parallel pipelines to be installed.

Mr. Ronilo Ducusin, San Fernando – City Planning Office, expressed concern on the heavy traffic that pipelaying activities may cause in the city particularly during big events such as fiesta and school openings. WDDSP’s Environmental Specialist explained that civil works contracts will include provisions requiring the contractors to implement a traffic management program in close coordination will local authorities. The Project Management Unit (PMU) shall ensure that this issue will be handled effectively during construction.

Ms. Benilda Policarpio, La Union Vibrant Womes Incorporated (LUVWI)-Bauang, asked if new pipelines will be installed. MLUWD’s GM answered that new parallel pipelines will be installed.

Ms. Marlyn dela Cruz, LGU Bauang, asked how the project will handle the existing septic tanks since most of them have unlined bottoms. The environmental consultant explained that the project has a revolving fund for septic tanks repair. Mr. Ronilo Ducusin added that new septic tanks have lined bottoms in compliance to the building code.

Mr. Emmanuel Guillet, San Gabriel Municipal Planning Office, alerted MLUWD on the laxity of security at the San Gabriel sedimentation basin since students were able to bath at the basins and expressed apprehension that somebody might get drowned.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 40

MLUWD’s GM appreciated the information and will look into the matter since the facility is supposed to be guarded at all times.

Ms. Marlyn Olete, LUVWI San Juan, asked how a barangay may be connected to the new water supply system. MLUWD’s GM explained that a barangay resolution requesting the WD is needed. The WD will then conduct a concessionaire survey.

WDDSP’s Resettlement Specialist asked if the participants have additional issues to raise. After confirming that there were no more issues, GM Picazo closed the meeting by thanking everyone for participating in the public consultation.

Meeting Closed at 3:15 P.M.

List of Participants of Metro La Union WD Public Consultation and Information Disclosure [04 September 2009]

Stakeholders/Participants:

1. Benilda S. Policarpio – President, LUVWI Bauang (NGO) 2. Perfecto F. Ranchez – President, Senior Citizen NGO 3. Marlyn g. Olete – President, LUVWI San Juan (NGO) 4. Emmanuel G. Guillet – Municipal Planning Office-San Gabriel 5. Romeo Padilla – President – Association of NGOs –San Fernando City 6. Florence Rulloda – Project Development Officer – LGU Bauang 7. Marlin A. Montanez – ABC President, Bauang, La Union 8. Marilou C. Garcia –Liga ng Mga Barangay – San Fernando City 9. Ferdinand C. Versosa – Director, Liga ng Mga Barangay 10. Rudy P. Ducusin – City Planning and Development Office 11. Gavino G. Martinez – Director, Liga ng Mga Barangay 12. Ronilo C. Ducusin –LGU- San Fernando City 13. Marlyn M. edla Cruz –LGU, Bauang

Metro La Union Water District (MLUWD) and WDDSP Team

14. Felipe G. Picazo – GM, MLUWD 15. Arturo N. Rimando – Division Manager, MLUWD 16. Genesis M. Sabalboro – Draftsman, MLUWD 17. Lovie A. Sadormeo – Minutes & Agenda Officer 18. Cristina C. Castillano – Executive Assistant, MLUWD 19. Carolyn Gamuan – consultant, POYRY-IDP 20. Jett Villegas – consultant, Poyry-IDP 21. Ruel Janolino – consultant, Poyry-IDP 22. Ramon de la Torre – consultant, Poyry-IDP

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 41

List of Participants of Metro La Union WD Public Consultation and Information Disclosure [04 September 2009]

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD 42

PHOTOGRAPHS OF MLUWD PUBLIC CONSULTATION MEETING

Photo No.3 – MLUWD GM clarifying some points at public consultation meeting [04 September 2009]

Photo No.4 – Stakeholders representatives raising points at public consultation meeting [04 September 2009]

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE MLUWD

Initial Environmental Examination

Initial Environmental Examination Project Number: 41665 April 2010

Quezon Metro Water District Water Supply Subproject

Republic of the Philippines: Water District Development Sector Project ADB TA 7122-PHI

The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD i

CURRENCY EQUIVALENTS (As of April 2010)

Currency Unit Philippines Peso (PHP)

$1.00 = PHP45.17

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank barangay village CDO Cease and Desist Order CEMP Contractor’s Environmental Management Plan CKWD City of Koronadal Water District cumd cubic meters per day DENR Department of Environment and Natural Resources DOH Department of Health ECC Environmental Compliance Certificate EIA environmental impact analysis EMB Environmental Management Bureau EMP environmental management plan FGD focus group discussion IA implementing agency IEE initial environmental examination IRR Implementing rules and regulations LCWD Legazpi City Water District LGU local government unit LMWD Leyte Metro Water District lpcd liters per capita per day lps liters per second LWUA Local Water Utilities Administration mg/l milligrams per liter MLUWD Metro La Union Water District MOA memorandum of agreement NAV Notice of Alleged Violation NGO non-government organization NRW Non-revenue water NSO National Statistics Office NWRB National Water Resources Board PD presidential decree PENRO Provincial Environment and Natural Resources Office PHP Philippine peso PIU project implementation unit PMU project management unit PNSDW Philippine National Standards for Drinking Water PPTA project preparation technical assistance QMWD Quezon Metro Water District RA republic act TA technical assistance WD water district WDDSP Water District Development Sector Project WDECC Water district environmental complaints committee WHO World Health Organization

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD ii

Table of Contents

Page

EXECUTIVE SUMMARY ...... IV

I. INTRODUCTION ...... 1

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 1

III. DESCRIPTION OF THE PROJECT ...... 3 A. Proposed Water Supply System ...... 3

IV. DESCRIPTION OF THE ENVIRONMENT ...... 7 A. Physical Resources ...... 7 B. Ecological Resources ...... 9 C. Economic Development ...... 9 D. Socio and Cultural Resources ...... 13

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 14 A. Design/Pre-Construction Phase Considerations ...... 16 B. Construction Phase Environmental Impacts ...... 17 C. Operation Phase Environmental Impacts...... 19

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 22

VII. GRIEVANCE REDRESS MECHANISM ...... 24

VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 25 A. Environmental Mitigation ...... 25 B. Environmental Monitoring ...... 28 C. Implementation Arrangement ...... 30

IX. CONCLUSION AND RECOMMENDATIONS ...... 31

ANNEXES ...... 34

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD iii

List of Tables

No. Title Page

1 Annual Served Population Projections 3 2 Raw Water Quality of Existing Deepwells 4 3 Historical Population and Growth Rates – QMWD 13 4 Summary of Environmental Impacts Screening for QMWD Subproject 15 5 Environmental Impacts and Risks for Inclusion in EMP of QMWD Subproject 21 6 Summary of Consultation Outcomes 23 7 Environmental Mitigation Plan of QMWD Subproject 25 8 Environmental Monitoring Plan of QMWD Subproject 28 9 Project Performance Monitoring of QMWD Subproject 30

List of Figures

No. Title Page

1 Location Map viii 2 Schematic Drawing of the Proposed Water Supply System 6 3 Implementation Schedule 7

List of Photographs

No. Description Page

1 Farmlands as sites of typical proposed reservoirs in QMWD 35 2 Typical highway in QMWD areas where water supply pipelines will be laid 35 3 QMWD GM clarifying some points at public consultation meeting 41 4 Stakeholders representatives raising points at public consultation meeting 41

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD iv

EXECUTIVE SUMMARY

1. An environmental assessment was made for the proposed water supply system of the Quezon Metro Water District (QMWD). It is one of the 5 pilot subprojects to be funded by the Asian Development Bank (ADB) under the Water District Development Sector Project (WDDSP) of the Local Water Utilities Administration (LWUA). The QMWD is located in the province of Quezon, Republic of the Philippines (Figure 1). Relative to the significance of impacts and risks, this subproject is deemed Environmental Category B based on ADB’s environmental categorization and the type of assessment warranted only the preparation of an Initial Environmental Examination (IEE) report. This IEE was carried out under ADB’s TA 7122-PHI and in accordance with ADB’s Safeguards Policy (2009).

2. The assessment was also carried out within the policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines. These include the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The overall institutional framework is the LWUA and WD setup as defined by PD 198. Under WDDSP, LWUA is the executing agency, while WDs, such as QMWD, are the implementing agencies.

3. Subproject Description. The proposed QMWD subproject will help improve the living conditions of the urban population in City and the municipalities of Pagbilao, and and enhance competitiveness by developing water supply infrastructures. QMWD’s proposed water supply system components shall include the following: (i) transmission pipeline from Tayabas proper to proposed reservoir in Barangay Calumpang near Lucena City; (ii) construction of additional deepwell sources and provision of pumping facilities; (iii) transmission and distribution pipelines including valves and appurtenances at existing service area and proposed expansion areas; (iv) new service connections; (v) booster pumps for pump stations at Barangay Masin and at Lucena area; (vi) provision for stored materials and equipment; and (vii) acquisition of about 2000 m2 of land for wells and reservoirs.

4. Environmental and Socioeconomic Conditions. Project implementation will not pose significant problems to the environment since present ecological setting of the areas for the proposed water supply system are residential, institutional, and agricultural landscapes dominated by coconut groves with patches of rice fields. Some areas are mainly irrigated rice fields such as those in Barangay Mayaw of Lucena City. Most areas immediately adjacent to the road where pipelines are to be laid are already occupied by residential and other structures, while areas beyond the road corridors are basically agricultural land. An important fact to consider is that the sites are not within undisturbed landscapes, but areas touched by human activities over the years resulting to their present residential, institutional, and agricultural landscapes..

5. Socioeconomic indicators revealed that QMWD’s service area has a growing urban sector. Its 2007 total population was 386,203. Lucena City’s population is 61.2% of the subproject area population. Aside from Lucena City, QMWD’s franchise area includes the municipalities of Pagbilao, and Tayabas. The franchise area comprises 126 barangays, while the existing service area encompasses only 79 barangays. QMWD operates a water supply system serving an estimated 212,502 people with a total of 34,595 active connections as of December 2008. .

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD v

6. Impacts and EMP. Screening for environmental impacts is made through a review of the parameters associated with projects for piped water supply against the components of the proposed QMWD subproject. An important consideration in analyzing the environmental impacts of the proposed subproject is the fact that these are improvements and expansion of an existing water supply system in an already altered environment. Water pipelines, pumping stations, and reservoirs are not new incursions to ecologically undisturbed landscapes. Pipelines will pass through areas already occupied by people or influenced by long periods of human activities. The issue on impacts and risks to biodiversity conservation is not applicable to this subproject since the subproject’s components will not be located in areas that are environmentally sensitive and have precious ecology.

7. During detailed design and pre-construction phase, potential nuisances and problems to the public during construction shall be addressed by inclusion in the tender documents of specific provisions addressing these issues. Although there are no issues related to historical and cultural assets, a precautionary measure shall be taken by inclusion of provisions in tender and construction contract documents requiring the contractor to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

8. Inventory of losses and required land for acquisition were made during the planning phase and shall be updated during detailed design phase as soon as the final pipeline alignments and final locations of facilities are available. A separate plan for compensation and other assistance corresponding to the losses of the affected people will be prepared. On resource use, QMWD will apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict.

9. Adverse environmental impacts during construction are temporary, less than significant, and can easily be mitigated. There will be no massive construction activities that can damage the environment. Water supply pipelaying is a low impact construction activity since trench excavation is shallow with narrow width. Excavated soil is backfilled to the trench after pipelaying. Required structures are relatively small in size. Typical construction issues are manageable with the implementation of a site management plan for: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience.

10. Environmental problems due to operation of the proposed water supply system can be avoided by incorporating the necessary measures in the design and use of appropriate operational procedures. Public health risk due to delivery of poor water quality can be prevented in a broader scale by implementing a water safety plan as advocated by World Health Organization (WHO) and the 2007 Philippine National Standards for Drinking Water (PNSDW). Chlorinators will be used for controlling microbial contamination and ensure adequate residual disinfection. Liquid chlorine instead of chlorine gas will be used to reduce risk and improved safety of workers. Potential ground subsidence due to excessive groundwater pumping can be avoided by operating each well at a rate lower than its safe yield.

11. An Environmental Management Plan (EMP) is developed to effectively manage the environmental issues. The plan includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up discusses the requirements and responsibilities during pre- construction, construction, and operation phases. The plan includes tabulated information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures and monitoring.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD vi

12. Consultation and Participation. Project planning and the subsequent IEE preparation for the proposed QMWD subproject recognized the need for public consultation and participation as central to effective environmental safeguard. Within the context of “meaningful consultation”, QMWD initiated a process of consultation during project preparation and intends to continue it during the construction phase. QMWD conducted an initial public consultations and information disclosure last 11 August 2009 with concerned individuals, barangay officials, non-government organizations (NGOs), local government unit (LGU) planning officials, and DENR-Provincial Environment and Natural Resources Office (DENR-PENRO) official. Details of the subproject components were presented to the stakeholders and their views on the respective proposals were requested. Stakeholders expressed support to the proposed subproject. Project disclosure activities were also done during the conduct of a socioeconomic survey between April and May 2009. Some 384 households in QMWD area were informed about the proposed subproject and interviewed for socioeconomic data. During detailed design, LWUA and QMWD will again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. QMWD shall keep records of environmental and social complaints received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

13. Grievance Redress Mechanism. Implementation of the proposed QMWD subproject will be fully compliant to ADB’s safeguards requirement on grievance redress mechanism. QMWD shall disclose the proposed mechanism in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc WD Environmental Complaints Committee (WDECC) for expeditious resolutions of the complaints, while complaints during the operation phase can be brought to the attention of DENR-Environmental Management Bureau (DENR-EMB). QMWD shall address promptly, at no costs to the complainant and without retribution, any complaints and concerns. WDECC shall be chaired by QMWD and shall have members from the contractor, barangay government, concernedNGOs, and women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the subproject’s civil works contract. DENR-EMB is mandated by PD 1586 to act on complaints about environmental performance of projects issued with environmental compliance certificates.

14. Conclusion and Recommendation. The proposed subproject will increase QMWDs coverage on providing water supply services. Failure to implement the subproject may lead to public health deterioration. By 2015, QMWD’s proposed water supply system will increase the population to be served in its service area to 263,400. Further increases in served population are expected in the years to follow due to the availability of water supply infrastructures implemented under WDDSP.

15. Analysis of potential environmental impacts revealed no significant adverse impacts to people and environment from the proposed water supply subproject. The IEE concludes that adverse environmental impacts arising from the location, design, construction, operation, and maintenance of the proposed subproject can be mitigated to less significant levels and the corresponding mitigation measures are doable. Monitoring can easily be done. The project can be implemented in an environmentally acceptable manner. An expanded environmental impact assessment is therefore not warranted, and this IEE shall be finalized as the final environmental assessment document of the QMWD subproject. Its environmental classification as Category B is deemed appropriate.

16. LWUA and QMWD shall ensure that EMP requirements for the construction phase will be reflected in the tender documents and civil works contracts and implemented including the contractors submission of Contractor’s Environmental Management Plan (CEMP).

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LWUA shall monitor QMWD’s compliance to the EMP. In addition, creation of WDECC and its operation, as part of the grievance redress mechanism, shall be included in appropriate sections of the subproject’s civil works contracts. Institutional strengthening of QMWD, including training, is recommended for effective EMP implementation. QMWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD viii

Figure 1: Location Map

Metro La Union WD

Quezon Metro WD Legazpi City WD

Leyte Metro WD

City of Koronadal WD

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 1

I. INTRODUCTION

1. The Quezon Metro Water District (QMWD) is an operational water supply utility located in the province of Quezon, Republic of the Philippines and one of the selected subprojects under TA 7122-PHI: Water District Development Sector Project (WDDSP) funded by the Asian Development Bank (ADB). The objective of the TA study is to assist the government of the Philippines to prepare a water district development sector project. It is intended to improve the livability and competitiveness in urban areas outside of Metro Manila through the provision of better water supply infrastructure and services to a number of water districts. The Local Water Utilities Administration (LWUA) is the executing agency. The participating water districts are the implementing agencies for the water supply subprojects.

2. Preparation of this Initial Environmental Examination (IEE) is part of the Phase 2 activities of the TA. It provides ADB with an assessment of the environmental concerns to be considered regarding the subproject location, design, construction, and maintenance. This report is also intended to assist LWUA and the QMWD in the preparation of the required environmental document to meet the Department of Environment and Natural Resources (DENR) requirements for an application of the necessary Environmental Compliance Certificate (ECC) before the start of the construction activities.

3. This IEE is one of the of five IEE studies prepared by Poyry IDP Consult, Inc., Philippines in association with TEST Consultants Inc., Philippines and Poyry Environment GmbH, Germany for the initial selected subprojects. Preparation of the IEE involved field visits to the proposed subproject area; review of available information, discussions with QMWD, LWUA, DENR, and other government agencies, local government officials, and members of the community within the subproject area. The assistance of the QMWD General Manager and staff in arranging the site visits, meetings, and providing support during the conduct of the study is gratefully acknowledged.

4. The IEE has been carried out in accordance with ADB’s Safeguard Policy (2009) and the requirements describe in its Appendix 1 (SAFEGUARDS REQUIREMENTS 1: ENVIRONMENT). The IEE follows the outline prescribed in the Annex to Appendix 1 excluding the section on analysis of alternatives (not necessary for an IEE).

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

5. The policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines have long been established by the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The frameworks apply to the QMWD subproject.

6. The overall institutional framework is the LWUA and WD setup as defined by PD 198 otherwise known as the “Provincial Water Utilities Act of 1973”. LWUA, as a government corporation, is mandated to promote the development of water districts

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 2 in the country. It has a clear mandate to “primarily be a specialized lending institution for the promotion, development, and financing of local water utilities.” To carry out this mandate LWUA has major subsidiary roles such as: (i) prescribing minimum standards and regulations in order to assure acceptable standards of construction materials and supplies, maintenance, operation, personnel training, accounting, and fiscal practices for local water utilities; (ii) providing technical assistance and personnel training programs.

7. PD 198 also mandated the formation of local water districts, which were initially formed by resolutions of the LGUs (generally, municipalities) as a single entity or as a combination of LGUs. Once formed, however, a WD becomes legally autonomous of the LGU and has the standing and legal character of an independent government- owned and controlled corporation. It is controlled by a board of directors, appointed by either the mayor or the governor, consisting of five members representing various sectors, who in turn appoint the WD’s general manager. Hence, QMWD was formed by virtue of PD 198.

8. Under WDDSP, LWUA is the executing agency, while the WDs, such as QMWD, are the implementing agencies. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. WDDSP can contribute to Philippine efforts in achieving relevant targets in the Millennium Development Goals (MDGs), eight international development goals that 192 United Nations member states have agreed to achieve by the year 2015. Most relevant to WDDSP is Goal 7 (Ensure environmental sustainability) with its “Target 7C” for 2015 calling to reduce by half the proportion of people without sustainable access to safe drinking water and basic sanitation. Achieving the MDG 2015 target on accessibility to safe drinking water necessitates an assurance that indeed the water is safe. WDs must have raw water sources with sustainable quantities and acceptable quality. They should be able to maintain acceptable water quality levels in the distribution systems to ensure delivery of potable water. The 7C Philippine target is 86.8% of Filipinos will have access to safe water by 2015 and 83.8% will have access to a sanitary toilet facility.

9. Implementation of infrastructure and development projects in the Philippines is legally covered by PD 1586 otherwise known as “Establishing the Philippine Environmental Impact Statement System” with its implementing rules and regulations issued under Department of Environment and Natural Resources (DENR) Administrative Order No. 30 series of 2003 (DAO 03-30). This system requires the project proponent to obtain an Environmental Compliance Certificate (ECC) from the DENR before an infrastructure project can be constructed. The Philippine environmental assessment system conforms with ADB’s environmental assessment requirements as revealed by ADB’s Special Evaluation Study on Environmental Safeguards (2006).

10. Sewerage and septage management are covered by Republic Act No.9275 otherwise known as “The Philippine Clean Water Act of 2004”. Its implementing rules and regulations are issued under DENR Administrative Order No.10 series of 2005 (DAO 05-10). Standards for the discharge of all industrial and municipal wastewaters are defined in DENR Administrative Order No. 35 series of 1990 otherwise known as “The Revised Effluent Regulations of 1990” which is based on the Philippine Pollution Control Decree of 1976 issued as PD 984. Sanitation and septic tanks are also covered by PD 856 otherwise known as “Code on Sanitation of the Philippines”.

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III. DESCRIPTION OF THE PROJECT

A. Proposed Water Supply System

11. This subproject aims to improve the water supply system of QMWD in order to meet the projected water demand for the Phase 1 design year (2017) both in the existing and proposed service areas. QMWD’s projected total average-day demand will be 59,161 cubic meters per day (cumd) and 64,423 cumd, respectively for the years 2015 and 2017. Projected domestic water demand of Lucena City will be 138 liters per capita per day (lpcd) in 2015 and 141 lpcd in 2020. The served population is estimated at 260,120 by 2015 representing some 53.4% of the total population of Lucena City, Pagbilao, and Tayabas. By 2017, the served population will be 281,850.

Table 1: Annual Served Population Projections

Source: Poyry-IDP Consult. 2009. Subproject Appraisal Report: Quezon Metro Water District. ADB TA7122-PHI. Manila.

12. The recommended water supply system improvement program will be undertaken in two stages. Phase 1 will cover requirements until design year 2017 while Phase considers Year 2025 as the design year. WDDSP will cover only Phase 1. To supplement the existing facilities, Phase I Development Program will include the following: (i) Laying of transmission pipes from Tayabas proper to proposed reservoir in Barangay Calumpang near Lucena City area; (ii) Construction of additional deepwell sources and provision of pumping facilities; (iii) Laying of transmission and distribution lines including valves and appurtenances at existing service area and proposed expansion areas; (iv) Installation of new service connections; (v) Provision for booster pumps station at Bgy. Masin and at at Lucena area; (vi) Provision for stored materials and equipment; and (vii) Acquisition of about 2000 m2 of land for wells and reservoirs. Schematic drawing of the proposed water supply system is presented in Figure 2.

13. Source Facilities. Nine deepwells will be developed to cope with the increasing water demand in QMWD. Three deepwells with a capacity of 40L/s each will be drilled in the north and northwestern part of Lucena City. Four wells will be drilled in Pagbilao expansion area in Barangay Silangan Malicboy. Two wells will be drilled in Barangay Masin in Tayabas. These wells will augment the existing sources to meet

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 4 present and future supply requirement. Similar to existing wells, the proposed wells will have depths of 150 to 200 meters based on the geo-resistivity surveys.

14. Pumping Stations and Treatment. Each of the proposed well sources will be equipped with pumping facilities, motor control and accessories. A pumphouse with a minimum floor area of 25 m2 will be constructed in each of the proposed pump stations to secure the motors, controls and other appurtenances. Stand-by power generation sets will be provided to 2 of the 4 wells to be drilled in Barangay Silangan Malicboy and the wells at Barangay Masin to ensure uninterrupted water service even during power outages. Only hypo-chlorination facilities using liquid chlorine will be used in treating the water. These pumping stations will not cause over pumping of groundwater since the recommendations on the sizes of pump and motor to be installed in the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. Available groundwater flows within the existing wellfields and future wellfields were based on the evaluation of available aquifer hydraulic properties. Groundwater recharge rates have been factored into the determination of appropriate drawdowns and sustainable well yield. There is therefore no likelihood that the project will cause over pumping of groundwater that could lead to ground subsidence.

15. Water quality test results of WD’s wells within the subproject area (Table 2) showed that the raw water quality is within the limits of the 2007 Philippine National Standards for Drinking Water (PNSDW). Hence, expected water quality of the proposed wells will therefore be within the limits of the 2007 PNSDW since raw water quality is already within the limits of the standards. The 2007 PNSDW is the applicable standard for drinking water in this IEE since it is more stringent than the World Health Organization (WHO) Guidelines for Drinking-Water Quality (2008).

Table 2: Raw Water Quality of Existing Deepwells Parameters Range of Test Results 2007 PNSDW Limit (mg/l) (mg/l) Turbidity 0.24 – 3.87 NTU 5 NTU Color (true) 1 – 5 units 5 units pH 6.76 – 7.46 6.5 – 8.5 Total Dissolved Solids 4.77 - 295 500 Sulfate 4.4 – 18.4 250 Nitrate 0.001 – 0.51 50 Chloride 7 - 20 250 Benzene nil 0.01 Iron 0.002 – 0.37 1.0 Manganese 0.001 – 0.04 0.4 Arsenic nil 0.05 Cadmium nil 0.003 Lead nil 0.01 Source: QMWD data of 9 deepwells tested in January and June 2009

16. Storage Facilities. The total volume of storage facilities in the QMWD is sufficient for the operational storage of the system by 2015. However, a 700 cum ground concrete tank will be needed to store water coming from the new transmission lines from Tayabas proper. A 300 cum reservoir will be constructed to provide the operational storage requirement of the Tayabas expansion area. A 150cum reservoir will be constructed at Barangay Ilayang Palsabangon to balance pressure in the area.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 5

17. Pipelines and Service Connections. About 10 km of 200mm to 300mm diameter transmission will be laid to convey raw water from Tayabas proper to the proposed reservoir in Barangay Calumpang. Water from the proposed wells in Barangay Malicboy will be conveyed to Pagbilao proper through 14 km of 200mm to 300mm diameter transmission pipelines. The pipes will be laid along the roads. About 60 km of 50mm to 200mm distribution pipes will be laid along road network in the proposed and existing service area expansion. About 191 sets of valves and assemblies will be installed in the new pipelines and some sections of the existing lines for flow control, and zoning and isolation purposes in cases of emergencies. Blow-off valves will likewise be installed at low points and extremities of the system for line flushing purposes. A total of 25 hydrants (150mm and 100mm) will be installed at the distribution network to provide fire protection in cases of fire emergencies. There will be 2,616 new service connections.

18. NRW Reduction Activity. Non-revenue water (NRW) is the volume of water that goes into the system but does not generate revenue. Included are wastage, leakage and consumptions from illegal connections as well as water used for fire fighting purposes and under-registration of meters. It is expected that the present system’s NRW of 27% will be maintained up to year 2015. It is expected to be 25% for years 2020 to 2025. Funds will be provided to purchase operational systems and equipment designed to manage and control NRW.

19. Water Supply Project Cost. The cost estimate was based on the 2009 in-placed cost of waterworks materials and facilities of LWUA and on submitted quotations from suppliers. The total project cost is estimated to be PHP360.10 million. The annual operation and maintenance costs include manpower, power, chemical, maintenance and miscellaneous costs. By 2015, the total annual operation and maintenance costs will be PHP174.129 million and PHP189.608 million by 2017.

20. Implementation Schedule. The proposed water supply improvement program will be implemented over a period of one and a half year starting in mid-2012 and up to end of 2013 as shown in Figure 3. The improved system is expected to operate by the first quarter of 2014.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 6

Figure 2

SCHEMATIC DIAGRAM OF PROPOSED QUEZON METRO WATER SUPPLY SYSTEM

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 7

Figure 3: Implementation Schedule

IV. DESCRIPTION OF THE ENVIRONMENT

21. A brief description of the existing environmental and socioeconomic conditions of the QMWD subproject influence area is presented in the following subsections:

A. Physical Resources

22. QMWD covers Lucena City and the towns of Pagbilao and Tayabas, all located in the Province of Quezon. Lucena City is bounded on the north and northeast by the Municipality of Pagbilao, on the south and southeast by the Tayabas Bay, on the southwest by the Municipality of Sariaya, and on the northwest by the Municipality of Tayabas. It is at 13º 56´ North latitude and at 121º 37´ East longitude and is 137 kilometers southeast of Manila via the Philippine-Japan Friendship Highway. The town of Pagbilao lies within 13º35’ and 13º50’ North latitude and within 121º37’ and 121º50’ East longitude and is 8 kilometers of Lucena City, while the town of Tayabas lies within 14º00’ and 14º50’ North latitude and within 121º30’ and 121º40’ East longitude and is 10 kilometers from Lucena City.

23. Topography. Lucena City has a flat terrain with slightly rolling hills. The largest part of the City has a slope of 0 to 3% with a small portion having a slope of 10% to 20%. Nine rivers and six creeks serve as natural drainage for the city and the city is wedged between two big rivers. The Municipality of Pagbilao is generally flat with a slope of 0 – 3% and is located on a hillside of Mt. Banahaw. About 3,800 hectares are within a slope of 3 – 15% and about 1,100 hectares are within a slope above 15%. The Municipality of Tayabas has slopes ranging from level (0% to 3% slope) to steep and very steep (>50% slope). Level to nearly level areas account for 1,806 hectares or 7.8% of the land area. Nearly level to undulating (3-8% slope) covers the largest area at 8,669 hectares or 37.5% of the land area.

24. Geology and Soils. Most of the rocks underlying the general area of Lucena City and Municipality of Tayabas are volcanic flows, pyroclastics, and volcanic debris.

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Interfingering with these volcanic rocks are Quaternary and Late Tertiary marine and terrestrial clastic sediments consisting of gravel, sand, and clay. Geomorphically, Mt. Banahaw, a dormant volcano dominates the terrain with slopes radiating from the peak. The volcanic slopes terminate against the flat swamps, mud flats, and rice paddies in Lucena City and Pagbilao areas. Lucena city has six soil types, namely: Buguey Loamy Sand, Guadalupe Clay Loam, Ibaan Loam, Ibaan Silt Clay Loam, Macolod Clay Loam, and the Hydrosoil. Of these six types, five could be planted with different crops, including coconut and rice varieties. The Buguey Loamy Sand yields the highest for coconut trees at 3,400 nuts per hectare per year. The Ibaan Loam yields the highest average for rice ranging from 30 to 50 cavans per hectare. Tayabas has eight soil types, namely: Tayabas, Macolod, Ibaan, Alimodian, Bolinao, Annam, Luisiana and Hapludults.

25. Water Resources. Groundwater in the general area of Lucena City, Tayabas, and Pagbilao is utilized through wells and springs. Wells are used for domestic, industrial and agricultural purposes. Barangays not served by the existing QMWD water supply system obtain their water requirements from springs and small diameter wells drilled to shallow depths while commercial, industrial establishments and some private individuals have their own wells. Small to large capacity springs are found in the area, with most of the springs located west to northwest of Tayabas City at the foot of Mt. Banahaw.

26. QMWD obtains its water supply from six springs and nine wells. The May-it Spring in Barangay Manasa, Lucban, supplies 400 liters per second (lps) (34,560 cumd); 317 lps (27,389 cumd) to Lucena City and 83 lps (7,171 cumd) to Pagbilao. Additional supply for Lucena City comes from eight wells with combined production of 213 lps (18,403 cumd). Tayabas is supplied by five springs with total capacity of 111.4 lps (9,625 cumd). Two new wells, one in Lucena City with design capacity of 40 lps (3,456 cumd) and one in Tayabas with yield of 40 lps (3,456 cumd) are still to be commissioned. It is estimated that the maximum-day water demand for the year 2025 can be supplied from wells to be drilled in Lucena City, Tayabas and Pagbilao. Groundwater quality in the area is good with TDS concentrations ranging from 140 to 745 mg/l.

27. The main river systems in the area include the Iyam and Dumacaa Rivers. These river systems pass near Lucena City. Tributaries of the Iyam and Dumacaa rivers, include the smaller Ibia River, Alitao River, Malaoa River and Domoit River. Potential sources of water for QMWD are the Ibia and Dumacaa Rivers. However, the minimum recorded flows of Ibia and Dumacaa Rivers of 0.17 and 0.38 m3/s (14,688 m3/d and 32,832 m3/d) respectively are not enough to supply the future water requirements of QMWD.

28. Climate. The climate of Lucena City, Pagbilao, and Tayabas is classified as Type IV of the Modified Coronas Classification of the Philippine Climate. This is characterized by a relatively even distribution of rainfall throughout the year. It has no dry season with a very pronounced maximum rain period from November to January. An average of three typhoons cross the area annually and cause flooding in low-lying areas especially along the rivers. Temperature ranges from 17.5 degrees Centigrade to 35 degrees Centigrade.

29. Air Quality and Noise. There are no available air quality data specific to the areas where subproject components will be constructed. However, based on the consultant’s experience on air quality measurements of similar rural setting in the Philippines, the expected average ground level concentrations of total suspended particulates (TSP) would be close to the indicative value of 65 ug/Ncm. Similarly,

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 9 there are no actual data on the present noise levels of this area. Again, based on the consultant’s experience on noise measurements of similar rural setting in the Philippines, the expected noise levels along the inhabited areas would be between 42 to 48 dB(A) for the daytime, while those in the farm areas would be less than 40 dB(A). In areas where there is higher vehicular traffic volume noise levels could reach as high as 54 dB(A).

B. Ecological Resources

30. Water Supply System. QMWD’s proposed water supply system expansion areas will be along existing roads or highways where the proposed pipelines will be laid, while the proposed deepwells and reservoirs will be located near the roads or highways. At this stage of the subproject study, the technical team only identified the general areas for the proposed pipelines, deepwells, and reservoirs. The exact locations will be confirmed during detailed design. The environment specialist visited the proposed locations of the subproject components in order to present appropriate descriptions of the ecological settings.

31. In general, the proposed sites are presently agricultural landscapes dominated by coconut groves with patches of rice fields. Some areas are mainly irrigated rice fields such as those in Barangay Mayaw of Lucena City. Occasional fruit trees such as mangoes and bananas are also present. Houses, commercial establishments, schools, etc. can be seen in most areas immediately adjacent to the roads and highways. Areas beyond the road corridor are basically cultivated strips of land. Devoid of forested areas, the roads and highways corridors and immediate environs are unlikely habitats for large wild animals. It is also not a likely habitat for rare or endangered species. Farm and domesticated animals are therefore the large faunal species such as horses, cows, water buffalo, goats, pigs, house cats, and dogs.

32. An important fact to consider is that the sites are not within an undisturbed landscape. These are located along major highways and roads that have been functional for a very long time already (see Photos No. 1 and 2). Hence, over the years the ecological changes due to human activities in the area resulted to the present residential, commercial, and agricultural landscape.

C. Economic Development

33. City Income and Expenditures. Lucena is the capital of Quezon Province and a highly-urbanized city. Its average annual local government revenue over the period of 6 years from 2003 to 2008 was PHP374,322,403. In 2003, the City had a total revenue of PHP317,705,663 and by 2008, it was PHP447,485,953. Its biggest revenue source is its Internal Revenue Allotment which has been averaging PHP243,202,803 a year. The city’s annual expenditure averaged PHP 327,207,574. As a result, it had an average operating revenue of PhP47,114,829. Less finance costs and net subsidies, Lucena City had an average annual net revenue of PHP34,652,152.

34. Pagbilao is a 1st class Municipality with a total revenue in 2008 amounting to PHP125,351,002 which was an 8.64% increase over the Municipality’s 2007 revenue of PHP115,378,446. In 2006, however, the Municipality’s revenues was recorded at PHP121,556,390 which meant that Pagbilao suffered a loss of revenues in 2007 amounting to PhP6,177,943 mostly from reductions in local incomes and other incomes (which included its Internal Revenue Allotment). But, 2006 was a banner year for Pagbilao as it increased its total revenues from PHP96,091,290 in 2005 by a

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record-breaking PHP25,465,100 or 26.5%. Much of this increase came from large increases in local incomes and other incomes.

35. Expenditures for the same periods increased moderately enabling the Municipality to amass rather large surpluses. In 2008, Pagbilao spent only PHP117,738,964 resulting to a net income of PHP7,612,037. In 2007, it spent PHP111,294,992 resulting to a net income of PHP4,083,454. During the banner year of 2006, the local government spent only PHP102,489,542 for a large net income of PHP19,066,847 or 15.7% of Total Revenues. In 2005, the local government also had a large net income of PHP14,113,927 which was 14.7 of Total Revenues.

36. Land Use. Presently, 20% (or 1,651 hectares) of Lucena City is categorized as built-up areas, while 80% (or 6,665 hectares) is agricultural. The city has a total land area of 8,316 hectares. Built-up areas are broken down into percentage of total land area as: 12.2% residential, 1.03% commercial, 0.56% industrial, 0.9% institutional, 4.7% infrastructures, and 0.44% functional open spaces. Significant portion (39%) is planted with coconut, while some 29% are planted with rice.

37. Pagbilao has a total area of 20,775 hectares of which 17,760 hectares or 85.5% is alienable and disposable. The difference of 3,015.16 hectares or 14.5% are forest lands both production forest and protected forest. Production forest covers 1,421 hectares, while the protected forest covers 1,594 hectares. The urban areas occupy 161.60145 hectares or about 9.1% of the land area of the municipality. The remaining 90.9% are rural areas composed of 21 barangays. Tayabas has a total land area of 23,095 divided among 66 barangays. A vast land area in the municipality is covered with coconut groves and rice fields. However, some agricultural areas were converted into residential subdivisions.

38. Commerce and Trade. In 2000, Lucena City had a total of 122 industrial establishments of which 44 were classified as micro, 40 were cottage industries, 25 were small-scale, 5 were medium-scale, and 8 were large-scale with more than 100 employees each. In May 2003, a total of 2,944 commercial establishments were registered. There were 660 retailers, 290 sari-sari stores, 230 wholesalers and retailers, 210 services/general services, 180 lessors, 108 small shops. There were also 29 commercial banks and 5 rural banks and 55 insurance companies, both life and non-life. During the same period, there were 40 registered pawnshops, and 41 insurance-related businesses.

39. In Pagbilao as of 2008, there were 696 commercial establishments and 115 light and medium industries. The commercial establishments are composed of 337 dry goods and general merchandising stores, 100 vending establishments, 68 service and maintenance stores, 36 hotels/restaurants/eateries, 53 buy and sell stores, 35 recreational shops, and 67 other commercial establishments. There are fish vendors, vegetable vendors, meat vendors, banana vendors, dried fish vendors, and chicken vendors. There are no commercial banks in Pagbilao but, there are 2 rural banks, 2 savings and loans associations, 1 non-bank lending investor, and 6 pawnshops.

40. In Tayabas as of 2008, there were 161 food establishments and 826 commercial establishments. These included 37 restaurants, 23 canteens, 45 carinderias, 22 refreshment parlors, 16 bakeries with videokes, 17 bakeries. Of the 826 establishments, 790 or 95.64% were sari-sari stores. There were 18 mini groceries (2.18%) and 13 drug stores (1.57%). Tayabas has 3 markets – a public market and 2 privately-owned markets. There is 1 supermarket and 1 Slaughterhouse. It has a major commercial bank and 6 rural banks. Manufacturing/processing industries in

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Tayabas include: Arcoco Mill, New Tayabas Coco Oil Mill, and Guanzon Lime Dev. Co. Inc. The two milling enterprises are coco based. Lambanog, a local drink, is presently being manufactured on a commercial scale. Handicrafts, such as weaving of baskets, buri hats, bags, and mats are other industries found in the city.

41. Agriculture. Agriculture was, and still is, a major source of livelihood in Lucena City with 77.1% of the total land area devoted to agriculture. Major crops include rice planted in 37.5% of the agricultural land. Other major crops include fruit and leafy vegetables, fruit trees, and other crops where 1,266.56 hectares was planted. Coconut trees were planted to 632 hectares, but coconut lands are inter-cropped with root crops, vegetables, banana, and other fruit trees. Fishponds also occupy 8.87% of the City’s land area. Much of the land in Pagbilao is used for agricultural production with coconut as the biggest cash crop. Rice is the second biggest crop. Some 1,890 hectares were irrigated and about 790 were non-irrigated. Other crops such as banana, corn, vegetables, fruit tree like mango and rambutan, citrus, and rootcrops were planted on the remaining farmlands. There are some commercial poultry and piggery farms. Major agricultural activities in Tayabas are coconut, rice, and livestock production.

42. Tourism. The City of Lucena is known as the “Gateway to Southern Tagalog” from Metro Manila. Among the landmarks that can be found are the St. Ferdinand Cathedral, the provincial capitol building, the Manuel L. Quezon monument, the Quezon convention center, the Philippine National Railroad Lucena Station, and the Governor’s Mansion. Located near the Perez Park is a sunken garden with a spacious playground for picnic, jogging, or strolling. Several ancestral houses are still livable and are located near the provincial capitol building.

43. Existing Water Supply System. QMWD obtains its water supply from six springs located on the slope of Mt. Banahaw and from nine production wells located in various site within its service area. The springs are May-it, Ibia, Lalo Grande, Lalo Pequeno, Dapdap “A” and Dapdap “B”. The springs are collected in intake boxes then water flows by gravity to the distribution system. The production wells are located in various sites. During the dry season, the yield of almost all of the springs decline by about 60 to 70% of their usual yield capacities. There are two newly drilled wells located in Bgy. Isabang and Lalo, Tayabas which are not yet energized to date.

44. QMWD utilizes six ground concrete reservoirs and one underground reservoir with a total volume of 12,775 cum. These reservoirs were built during the implementation of the Immediate Improvement Program (IIP) from 1982 to 1985 and the QMWD Water Supply Improvement Project (Package 2) in 2004. The underground reservoir was built in the 1950’s. It has 240.2 kilometers of pipelines with sizes ranging from 50 mm to 600 mm. 58.5 kilometers are pipelines of 100 mm size.

45. Existing Water Supply Service. QMWD operates a water supply system serving an estimated 212,502 people with a total of 34,595 active connections as of December 2008 covering 9 barangays. Data on present water service situation in QMWD area were generated by a WDDSP household survey using stratified random sampling with three hundred eighty four (384) respondents. Survey was conducted on groups with pipe water connection and those without. About 70.6% of survey respondents had piped water connections with the WD but in certain areas including Pagbilao, the water supply was intermittent. Average monthly consumption is 29 cubic meters. Of this, 8.8% provided water to neighbors or relatives; sharing often ocurred where there were multiple families in a household with 15% catering to 2-3 families.

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46. Purified water refilling stations were the source of drinking water for over 7% with an average of 4.8 gallons of use at an average cost of P38 per day; 0.7% used pump to increase water pressure. Overall, 95.6% assessed that water received from piped connection was sufficient for their needs. There was a demand for improved water services. Water pressure was considered poor (10.9%) or very poor (7.3%) by 274 WD-connected respondents, although an improvement in water availability was noted during the rainy season; over 97.8% cited that water was available everyday during the rainy period. On the whole, there was positive net satisfaction of overall water service with 12.2% reported some level of dissatisfaction.

47. For those without pipe water connection, 56.6% reported paying for supply of piped water from another’s connection; 17.7% got water from water vendors and peddlers; 14.2% from public faucet; 6.2% from private shallow wells , and 5.3% from springs or streams. Female-headed households relied on water vendors at a higher rate of 24.2% compared to 15% by their male counterpart. Piped water (not own connection) led as water source for bathing (54%) and for gardening (58.6%) and 56.6% used this for drinking. Close to 84.1% of non-connected households assessed overall quality of water from current source (piped connection that was not their own) as satisfactory; only 11.5% said source/s were not sufficient all year.

48. For some, collecting water was time consuming; while over 92.% spent 0.5 – 1 hour collecting water, about 7% spent 5 hours or more collecting water daily by using a pail (59.8%); water was usually fetched by adult male household members (36.6%) with others including children taking their turn. Adult female household members (19.6%) and children (13.4%) or anyone available (30.4%) also fetched water. Bathing had the highest water use per household at an average of 34.92 gallons per day, followed by cleaning (6.67), gardening (5.74), drinking (3.15), and cooking (2.63).

49. Transportation and Communication. The City can be reached by road, railroad, and by sea. Lucena City is 137 kms. Southeast from Manila by the Philippine-Japan Friendship Highway – an all-weather highway and is linked through its ports to the island provinces of , , and even . It has a central land transportation hub called the Grand Central Terminal. It serves not only the Manila- Bicol-Manila bus routes but also bus routes toward the upland and far-flung areas of the Quezon Province, particularly the Bondoc Peninsula towns. Eight major bus companies plying the southern route from Manila are housed in this Grand Central Terminal.

50. There are 2 telephone companies (PLDT and Digitel) – with a total subscriber volume of 17,667 (as of 2000). There are also about 60 payphones installed in selected hospitals, school, government offices, restaurants, etc. Subscriptions to all major cell phone companies are available all over the city. Two local TV stations are located in Lucena City including 5 AM Band radio stations and 6 FM Band radio stations. Quezon CATV and ABS-CBN provide cable tv service.

51. Power Supply. MERALCO provides power and electricity to the city and its rural barangays. Electrification covers 100% of all barangays. In 2000, MERALCO had a total of 29,736 customers of which 27,114 were residential, 2,482 were commercial, 95 were industrial customers, and 45 were streetlights. Eight substations serve Lucena City including 8 distribution lines.

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D. Socio and Cultural Resources

52. Population and QMWD Service Area. In 2007, the subproject area has a total population of 386,203. Lucena City’s population is 61.2% of the subproject area population. The present franchise area of QMWD includes 2 municipalities and 1 city in Quezon Province, namely Lucena City, Pagbilao, and Tayabas. The franchise area comprises 126 barangays, while the existing service area encompasses only 79 barangays. Lucena City, Pagbilao, and Tayabas covered 78.8%, 55.5%, and 57.6% of their respective total barangays.

Table 3: Historical Population and Growth Rates – QMWD Population Growth Rate (%) City/ Municipality 2000 2007 2000-2007 Lucena 196,075 236,390 2.71 Pagbilao 53,442 62,561 2.28 Tayabas 70,985 87,252 2.99 Source: National Statistics Office (NSO)

53. Public Health and Sanitation. Lucena City has 4 private and one government- owned hospitals. There are also 50 Barangay Health Stations serving 33 barangays with the larger rural barangays having 3 to 4 health stations each. The Quezon Medical Center, a government hospital, has a total of 53 doctors, 78 nurses, and bed capacity of 293. Four private hospitals had a combined total of 671 doctors, 376 nurses, with a combined bed capacity of 360. Both Pagbilao and Tayabas have one private hospital. The NSO 2000 sanitation data revealed that only 63.2% of total households had septic tanks. Presently, Lucena City, Pagbilao, and Tayabas do not have sanitary sewer systems.

54. Education. Lucena City is the educational center of Quezon Province. It has 1 private university, 2 public colleges, 12 private colleges, and 11 vocational or technical schools. The City Government operates the Lucena Manpower Skills Training Center. There are also 39 public non-formal education programs of which 24 are in schools and 15 are in the barangays. Numerous public and private-owned schools provide elementary and secondary level educations. There are 5 public and 17 private secondary schools. Pagbilao has no tertiary level schools. It has 3 public high schools and 3 private-owned high schools. There are 2 schools offering vocational and technical education.

55. Socioeconomic Survey. WDDSP conducted a household survey to get a good insight into the socioeconomic situation specific to the project area. Using stratified random sampling, three hundred eighty four (384) respondents were interviewed for a 95% level of confidence and standard deviation of 0.1. Based on this survey, average household size was 5 with 37% having 5-6 members. About 34% in the franchise area were women-headed households due to outmigration for work. Highest grade of household head was high school (38.8%) and college and over (36.5%); respondents were distributed under a wide occupational range including farming, business, street vending, and government and private and employment; 15.5% were unemployed but 23.7% owned a business.

56. Average monthly income was P13,324 though 14.3% had incomes of less than P5,000 and another 31.5% had an income range of P5,000 – P9,999. Estimated poverty threshold for a household of 5 members was around P6,486. This was computed from the official annual per capita poverty threshold for Quezon for 2007

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which was pegged at P15,445 for both urban and rural areas. About 16.6% spent less than P5,000 per month while 34.6% spent about P5,000 – P9,999. Over 71.6% were unable to save while those who could (12.4%) had less than P1,000 in savings per month. Television (95.1%), cellular phones (86.3%) and refrigerators (77.8%) were the most common valuable items of the household.

57. Out of the 388 cases in the QMWD franchise area, 88% of households had water-sealed (flush or pour flush) toilet connected to a septic tank. Consultations indicate that many of these may be bottomless and may not be up to standard. The next most common type of toilet system used by 9.5% of the households was water- sealed (flush or pour flush) connected to the drainage system. Only 0.3% shared toilets while 0.8% had no toilet (wrap and throw, arinola, bush, etc.); no one used non-water sealed open or closed pits. Over 96% were satisfied with their current toilet system while the main reasons for dissatisfaction were a combination of backflow resulting in foul odor and inconvenience (45.5%). There was low demand for improvement of septage system; only 4.9% of interviewed households felt the need to improvement; 55% of these preferred installation of a septic tank.

58. All survey respondents reported washing hands before cooking, before eating, after using the toilet, before feeding children, and after washing the children after toilet. Not all women (82.5%) washed hands before breastfeeding while 87.6% washed hands after changing diapers (less at 82.8% among male-headed households). Non-connected households transported water from source using open (59.6%) and closed containers (2.8%); a pipe or water hose also connected to a neighbor with WD connection in 27.1% of 107 cases; 7.1% of 113 cases had at least one member who suffered from a water-related disease during the past year. 2.7% of Households had at least one child member who had suffered diarrhea. Some 9.8% of households treated water from the faucet by boiling; more (9.7%) households with WD connection had at least one memebr who had suffered a water-related disease inthe past year.

59. Respondents sought medical services primarily from public facilities such as medical centers (35.7%), government hospitals (12.5%), and from private hospitals (28.4%) and private clinics (17.2%). There were 94.8% of survey respondents who were satisfied with available health services in their locality, with women slightly more satsfied than men/ Some 71.2% of both female and male-headed households had access to Philhealth or had assistance on health expenses; 2.6% relied on self- medication.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

60. A comprehensive screening for environmental impacts is made through a review of the parameters associated with water supply projects against the components of the proposed QMWD subproject and the environment where the facilities will be located. A screening checklist was developed from various sources such as DENR checklists, ADB’s “Rapid Environmental Assessment (REA) Checklist, and WB Environmental Source Book. Some items of the checklist may not be applicable to this particular subproject. However, they are included in the discussions to indicate that their applicability was reviewed in the environmental impact screening process. This will help identify which topics do not require further attention.

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61. The assessment is made on the following phases of the subproject: (i) Pre- construction, (ii) Construction, and (iii) Operation and Maintenance. Results of the environmental impacts screening are summarized in Table 4, while the discussions of each issue are presented in the succeeding sections. In Table 4, impact types and magnitudes are indicated for both impacts without the mitigating measures and the resulting situations when mitigating measures will be implemented. A summary of the environmental impacts that should be carried to the section for Environmental Management Plan (EMP) is presented at the end of this section as Table 5.

62. Environmental impacts arising from decommissioning of facilities were also reviewed but are no longer further discussed due to the following: (i) decommissioning of facilities is a remote possibility since these will serve growing urban areas and such facilities are critical for sustaining those areas, (ii) residual waste cleanup is not a major concern since the facilities are not industrial manufacturing plants with potential problems for toxic and hazardous wastes, and (iii) solid wastes from decommissioning is also not a major concern since the structures are mostly made of reinforced concrete and the solid wastes are mostly recyclable materials such as broken concrete materials, reinforcing steel bars used in the structures, structural steel, roofing materials, electrical wires, etc.

Table 4: Summary of Environmental Impacts Screening for QMWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Encroachment to environmentally sensitive areas na na Impacts and risks to biodiversity conservation na na Encroachment to historical areas and cultural areas ∆ − ∆ Potential competing use of water resource ∆ − ∆ Potential nuisance and problems to the public  − ∆ Loss of assets (IR concerns)  − ∆

CONSTRUCTION PHASE Modification of construction site topography ∆ − ∆ Removal of Trees ∆ − ∆ Displacement of Rare or Endangered Species na na Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Oil and other hazardous materials releases ∆ − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Noise and air pollution of pumping stations ∆ − ∆ Ground subsidence due to over-pumping  − ∆

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Environmental Impacts and Risks Without With Mitigation Mitigation Pumping stations operational risk and safety  − ∆ Increase employment opportunities ∆ + ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

A. Design/Pre-Construction Phase Considerations

63. Encroachments. Subproject’s components will not be located in areas that are environmentally sensitive and areas with historical and cultural importance. As described in the environmental baseline, the proposed sites are residential, commercial, institutional, and agricultural landscapes dominated by coconut groves with patches of rice fields. Some areas are mainly irrigated rice fields such as those in Barangay Mayaw of Lucena City. Houses, commercial establishments, schools, etc. can be seen in most areas immediately adjacent to the roads and highways. Areas beyond the road corridor are basically cultivated strips of land. There are no known archaeological and cultural assets in these sites. Nevertheless, precautions will be taken to avoid potential damage to any archaeological and cultural assets by inclusion of provisions in tender and construction documents requiring the contractors to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

64. Impacts and risks to biodiversity conservation. The issue on impacts and risks to biodiversity conservation is not applicable to the QMWD subproject since the proposed components will not be located in areas that are environmentally sensitive. The sites are not in undisturbed landscapes and over the years the ecological changes due to human activities in these areas have resulted to the present residential, commercial, institutional, and agricultural landscapes. These are located along major highways and roads in Lucena City, Pagbilao, and Tayabas that have been functional for a very long time already.

65. Competing Use of Water Resource. Problems on competing use of groundwater resources are not expected since QMWD shall apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict. In the issuance of water rights, NWRB will ensure that groundwater resources are appropriately allocated.

66. Nuisance and Problems to the Public. Potential nuisances and problems to the public during construction of the QMWD subproject can best be avoided if proactively addressed during detailed design and pre-construction phase. Consultation and information dissemination to potentially affected people shall be done during detailed design. Tender documents shall include provisions addressing potential nuisances and problems to the public during construction. These include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience. In addition, prior to site works, the contractor shall coordinate with the appropriate agencies in the procurement of required clearances with regard to electricity, telephone lines and other utilities/structures that may be affected by construction activities. These shall all be reflected in the construction contracts.

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67. Loss of Assets. Inventory of losses and required land for acquisition regarding the QMWD subproject components were made during the planning phase and shall be updated during detailed design phase as soon as the final pipeline alignments and final locations of facilities are available. A separate plan for compensation and other assistance corresponding to the losses of the affected people will be prepared. All payments to affected parties shall be made before the start of construction activities.

B. Construction Phase Environmental Impacts

68. Site Preparation. Construction of QMWD’s proposed pumping stations, pipelines, and reservoirs will not involve modification of the construction site topography. Water supply pipelines will follow as much as possible the existing site contour. This issue is therefore considered not significant. Removal of trees will not be an issue due to the following: (i) pipelines will mostly be laid in trenches along the right-of-way of existing roads, and (ii) areas required for pumping stations and reservoirs are relatively small. The issue on displacement of rare or endangered species is not applicable to the QMWD subproject since there are no known rare or endangered species within the proposed sites in Lucena City, Pagbilao, and Tayabas.

69. Soil Erosion and Sediment of Construction Sites. During rainy periods, exposed soil at the construction site can easily be washed away by runoff and carried to the natural drainage system. Hence, soil erosion of the construction sites could occur if preventive measures are not instituted. .

70. Mitigation. Control of the surface runoff is necessary in preventing erosion. The contractor shall be required to use structural erosion prevention and sediment control practices which will divert the storm water flows away from the exposed areas, prevent sediments from moving offsite, and reduce the erosive forces of runoff waters. These may include the following: (i) interceptor dikes, (ii) pipe slope drains, (iii) straw bale barriers, (iv) sediment traps, and (v) temporary sediment basins. Whenever possible, total exposed area shall be minimized.

71. Nuisance/ public inconvenience in pipelaying. Public inconvenience could arise in pipelaying works due to prolonged period of water supply service interruptions. Dumping of construction materials and solid wastes in watercourses will also cause nuisance to the public aside from affecting water quality and the flow regime.

72. Mitigation. The construction contractor shall be required: (i) to do installation or replacement of pipes within the shortest time possible to minimize water supply cut- off periods and/or use of night time schedules, as well as announcement of water supply interruptions two to three days prior to actual cut-off; and (ii) not to dump earth, stones, and solid wastes in watercourses to avoid adverse impact on water quality and flow regime.

73. Construction Noise. Potential sources of noise are the construction equipment, such as trucks and other equipment, which can generate noise of 80 dB(A) from a distance of 30 meters. Loud noise sources such as blasting are not expected in the construction activities of the QMWD subproject. The issue is mostly applicable in the pipelaying activities since pipeline routes will pass through areas with schools and houses in Lucena City, Pagbilao, and Tayabas.

74. Mitigation. Nuisance from equipment noise can be mitigated with the use of sound suppression devices for the equipment. In areas near any house or noise-

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 18 sensitive sites, noisy equipment shall not be operated during nighttime to early morning (22:00H – 06:00H). Noise levels due to construction activities should not exceed 50 dB(A) near schools, 55 dB(A) in other areas, and 45 dBA during nighttime. Workers using noisy equipment shall be provided with ear plugs.

75. Local Air Pollution Due to Construction Activities. Dust generation from trenching, earthworks, and soil preparation activities during dry periods will be an air pollution problem. Intermittent episodes of air pollution from smoke belching equipment may also occur. This issue is considered significant during dry periods. Another potential source of air pollution are large stockpiles of construction materials such as soil and aggregates. Without any mitigating measures, dust generation could be significant during dry periods.

76. Mitigation. The contractor should be required to perform regular water spraying of the sites during dusty periods in order to reduce the generation of dusts. He will also be required to use equipment that are properly maintained and are not smoke belchers. Covers for stockpiles that will be left idle for a long time shall be required. Covers will prevent dust generation due to wind action. Trucks transporting loose construction materials such as sand, gravel, spoils, and the like shall be provided with tarpaulin cover.

77. Oil and other hazardous materials releases. Heavy equipment and vehicles will be used in the various construction activities for the QMWD subproject. Aside from fuel, oil, and grease, the activities may also involve the use of paints and solvents. Although there is potential for accidental releases of these materials, the issue is not considered significant since expected quantities will be relatively small. However, as part of good construction practice, the contractors will be required to implement an awareness program for all workers regarding the prevention and management of spills and proper disposal of used containers. Fuel and oil shall be stored in a designated secured area provided with an impermeable liner to prevent the accidental spills from seeping into the ground.

78. Vehicular Traffic Congestion and Public Access. Construction activities, such as pipelaying, may cause traffic congestion in heavily traveled highways and narrow streets. It may hinder public access. Pipelaying in Lucena City along the highways to Bicol and Manila is expected to cause traffic congestion since there are lots of vehicles using the highway and pipeline alignment might be in the road shoulders. Installation of secondary pipes crossing the highway to the other side may cause the temporary closure of half the road and will lead to traffic congestion. This is also true to the narrow streets and roads of Pagbilao and Tayabas. This issue is therefore considered significant.

79. Mitigation. Contractors shall be required to: (i) prepare a traffic plan; (ii) closely coordinate with local authorities for the closure of roads or rerouting of vehicular traffic; (iii) consider the schedules of local activities with heavy presence of people such as festivities, processions, parades, etc. in the timing of construction activities; (iv) do proper stockpiling and immediate disposal of spoils to avoid nuisance and traffic/access obstruction; and (v) do immediate restoration of roads and other areas affected by pipe laying, construction activities and vehicles..

80. Hazards to public due to construction activities. Construction activities, such as pipelaying, along the roads may result to hazardous driving conditions since vehicles would still be using the road while construction activities are ongoing. The movement of construction vehicles and excavations would pose some hazards to the driving public. This is particularly applicable at the highway sections to Bicol and Manila

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 19 since vehicles are moving at high speeds. There is also risk of people falling down in open trenches since pipelaying trenches are normally left uncovered until pipeline testing is completed.

81. Mitigation. The contractor shall be required to implement a road safety plan incorporated in his construction schedule. Safety measures shall be implemented including: (i) warning signs to alert people of hazards around the construction sites, (ii) barricades, and (iii) night lamps for open trenches.

82. Pollution and Health Risk due to Workers Camp. The contractor is expected to erect temporary workers’ camps during construction of the QMWD subproject. Improperly managed silt runoff and sanitary wastes from these camps may reach nearby areas. Poor sanitation and lack of proper solid waste management at the worker’s camp will provide the conditions for vermin and other disease vectors to easily multiply and infect the workers. This may lead to the transmission of diseases from the workers camp to other areas. These conditions will increase public health risk.

83. Mitigation. The construction contractor shall be required to: (i) install proper sanitary facilities to prevent the indiscriminate discharge of sanitary wastes at the camps surroundings, (ii) implement proper solid waste management, and (iii) prevent surface runoffs from flowing into the workers camps to avoid carrying away any contaminants. The contractor shall be required to use temporary diversion drains, catch drains, and silt-traps at these camps.

84. Improper Closure of Construction Sites. Construction activities will generate construction solid wastes after completion of work. This may include used wood materials, steel works cuttings, paint and solvents containers, used oil from equipment, unused aggregates, etc. If not remove from the sites after completion of the construction activities, these solid wastes will cause aesthetic problems and some will be potential sources of contaminants for surface runoffs. This is important in the reservoir sites of Lucena City, Pagbilao and Tayabas.

85. Mitigation. After completion of work activities, the contractor shall be required to remove the construction wastes from the sites before finally leaving. The entire site must be free of any construction solid wastes. Implement the required surface restoration.

86. Increase Employment Opportunities at Work Sites. Various construction activities for the pumping stations, reservoirs, and pipelines will definitely require a number of workers. The impact would be beneficial and significant since employment opportunities in the area will increase.

87. Enhancement. Whenever possible, the contractor shall be encouraged to use the available local labor for these construction activities. The recruitment of workers shall be coordinated with the local officials.

C. Operation Phase Environmental Impacts

88. Health hazard due to delivery of poor water quality. Delivery of poor water quality will increase the health risk to water consumers. Threats to water quality are always present in all components of a water supply system, from the raw water sources up to the service connections. Threats of contamination in water sources may be due to the presence of bacteria, viruses, protozoa, or chemicals. This raises the need to provide a secure barrier to post-treatment contamination as the water is transported

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 20 to the consumer. QMWD should therefore manage the environmental risk to its water supply system. Failure to implement the appropriate management measures may result to adverse consequences threatening public health such as the case of a microbial outbreak.

89. Mitigation. Delivery to customers of poor water quality from the deepwells and pumping stations of Lucena City, Pagbilao and Tayabas can be prevented in a broader scale by implementing a water safety plan as advocated by WHO. The 2007 PNSDW also advocates preparation of a water safety plan. A water safety plan shall enable QMWD to (i) prevent contamination of its water sources, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re-contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the QMWD in applying best practices in ensuring delivery of potable water to its consumers.

90. For controlling microbial contamination, a hypochlorinator will be installed at each pumping stations to ensure that water will be chlorinated and adequate residual disinfection will be maintained. This device uses a feed pump to inject controlled amount of chlorine solution into the water leaving the pumping stations. This is safer that using chlorine gas. The standards for chlorine residual of the 2007 PNSDW are: (i) 0.3 mg/l minimum for detection at the farthest point of the distribution system and (ii) 1.5 mg/l maximum for detection at the farthest point of the distribution system.

91. Pollution from increased generation of sewage and sullage. Increasing the water supply to the service area will also increase the generation of sewage and sullage since most of the water used by consumers will become wastewater from the toilets, kitchens, and laundry areas. This wastewater will contribute to pollution of the surrounding areas. Without a mitigating measure, this impact would be significant.

92. Mitigation. Wastewater from the toilets, kitchens, and laundry areas will normally be handled by the individual septic tanks system of the water consumers. The septic tank system will: (i) treat the wastewater and reduce the pollution potential and (ii) reduce the people’s exposure to untreated domestic wastewater. This will help in interrupting disease transmission.

93. Noise and air pollution of pumping stations. Noise of pumping stations is not an issue for the QMWD subproject since the there will be no significant sources of mechanical noise within the stations. Potential sources of noise, such as pumps and electric motors will be housed in buildings that provide noise attenuation. Local air pollution levels will not be affected by equipment use during normal operations since the pumping station will run on electricity to be supplied by the local power company. Hence, there will be no air pollution associated with fuel combustion during normal electricity supply. However, a diesel-fueled electricity generator set will be used during the occasional brownout events. This generator set will surely comply with the air pollution regulations since a permit will be secured for its use. There will be no operational activities that will cause dust generation. Mitigating measures are therefore not necessary for noise and air pollution.

94. Ground subsidence due to over-pumping. Pumping groundwater should not be done without a defining a limit to how much water can be extracted. Excessive groundwater pumping will result to continuous reduction in the groundwater level in the aquifer. This will lead to a situation where the aquifer at some point will not be able to supply water in an economical or even physical sense. This will also cause an environmental effect known as ground subsidence. It is the result of soil

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compression when the drop in the water level will change the soil structure. Ground subsidence can result in significant damage to properties and structures. This issue is important for QMWD since a number of its sources are deepwells within built-up areas.

95. Mitigation. To avoid over pumping the aquifers, each well shall be operated below its safe yield. This refers to the long-term balance between the water that is naturally and artificially recharged to an aquifer and the groundwater that is pumped out. When more water is removed than is recharged, the aquifer is described as being out of safe yield. When the water level in the aquifer then drops, mining of groundwater is happening. At any rate, the recommendations on the sizes of pump and motor to be installed on the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. QMWD should monitor the groundwater level of each well to determine if continuous reduction in the groundwater level in the aquifer is occurring. WD staff are quite capable of doing this simple task since it will only use a wire to be attached to an ordinary electrical tester and lowered into the well, a common practice in the Philippine water industry. The water level below ground surface will be measured from the distance where the electrical tester indicated contact with the water level.

96. Pumping Stations operational risk and safety. The proposed QMWD pumping stations will not inherently pose risks to the environment and people. These facilities will not use flammable materials during normal operations. Conditions of extreme conditions of temperature and pressure are not to be expected. Use of diesel- powered generators as stand-by power source is considered safe since these are equipped with safety devices and leak detection for fuel tanks. The potential source of risky situation will be the used of chlorine gas as disinfectant. Accidents may occur with chlorine gas handling.

97. Mitigation. In older water facilities, the significant source of hazardous situations is the use of chlorine gas as disinfectant. This shall be avoided in the proposed QMWD pumping stations by using sodium hypochlorite (NaOCl), the liquid form of chlorine. NaOCl is inherently a safer disinfectant. Its character can simply be put as household bleach or swimming pool chlorine.

98. Increase employment opportunities. Operation and maintenance of the pumping stations, reservoirs, and pipelines will definitely require a number of workers. The impact would be beneficial since employment opportunities in the area will increase. However, the expected number of additional workers will be small since the additional water supply facilities are not labor intensive. This impact is therefore considered less significant.

99. After impacts screening, Table 5 lists the environmental impacts and risks that requires mitigation and shall be carried to the EMP Section.

Table 5: Environmental Impacts and Risks for Inclusion in EMP of QMWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Potential nuisance and problems to the public  − ∆ Loss of assets (IR concerns)  − ∆

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Environmental Impacts and Risks Without With Mitigation Mitigation

CONSTRUCTION PHASE Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Ground subsidence due to over-pumping  − ∆ Pumping stations operational risk and safety  − ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

100. Activities concerning information disclosure, public consultation, and public participation were undertaken for the proposed QMWD’s water supply subproject. These were aimed at achieving a meaningful stakeholders’ consultation and ensure subproject success.

101. Part of the information disclosure activity was made during the conduct of a socioeconomic survey between April to May 2009. In the course of doing the survey, information regarding the proposed QMWD’s water supply subproject were disclosed to the respondents. Some 384 households in QMWD’s area were informed about the proposed subproject and interviewed for socioeconomic data. Survey respondent also included those households without water service connection with QMWD. Majority of the survey respondents (62.7%) are in Lucena City.

102. Key informant interviews and focus group discussions (FGDs) with barangay and city officials were conducted in the initial project survey in April 2009 to get their cooperation and gather information relative to poverty incidence and concentration, and identify needs and recommendations on water. Participants in the key informant and FGDs included the following: (i) WD staff and management, (ii) local health officials, (iii) gender focal persons of LGU, (iv) city and barangay officials, (v) LGU planning offices, (vi) local environment offices, and (vii) urban poor NGOs.

103. Public Consultation. Last 11 August 2009, QMWD conducted an initial public consultation and formally discussed the proposed water supply and sanitation subproject with the stakeholders and requested their views. A total of 12 stakeholders’ representatives participated. Stakeholders were encouraged to raise their social and environmental issues. Participants included: (i) concerned

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 23 individuals, (ii) barangay officials, (iii) NGOs, (iv) LGU planning officials, (v) PENRO official, (vi) health officials, and (vii) WD staff and management. Stakeholders expressed support to the proposed QMWD subproject. Summary of the consultation outcomes is presented in Table 6, while the documentation is presented at the annexes. Septage management was part of the consultation topics since it was a subproject component during the initial stage of the study. QMWD decided later in March 2010 to exclude the sanitation component from the subproject.

104. Future Disclosure and Consultations. Continuing the process of public consultation and participation, LWUA and QMWD will again conduct public consultations and information disclosure during detailed design phase. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. Views of the stakeholders will be considered in the overall design process. Stakeholders’ consultations shall be continued throughout the duration of the construction phase. QMWD shall keep records of environmental and social complaints, received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

Table 6: Summary of Consultation Outcomes Group Represented Issues/ Concerns Raised Project’s Response

Sangguniang Bayan septage management program effects on the water tariff are (SB) Pagbilao; 1 should not add to increase in still being studied attendee water tariff SB Pagbilao why there were sudden service existing pipes have many interruptions in Pagbilao leaks, but QMWD has now a program to replace them

Tayabas Municipal implementing a septage prior to implementation, the Health; 1 attendee management program in Tayabas local government Tayabas might be difficult since should encourage the people only very few households have to build their septic tanks and septic tanks pass an ordinance regarding septage management Couples for Christ; 1 expressed appreciation of the QMWD under WDDSP might attendee proposed project because the consider installing a public Gawad area in faucet in their area to serve Barangay Mayao Castillo has the poor households no piped water supply Senior Citizen senior citizens should be indeed senior citizens will be Organization; 1 granted discounts on their granted discounts on their attendee water bills in accordance with water bills since it is covered the Senior Citizens Law by law

Barangay Kan Palete, how long will a trench be left it will be closed as fast as Tayabas; 1 attendee open during construction possible and would be approximately one week after the laid pipes are deemed acceptable Pagbilao Chamber; 1 QMWD shall seek the help of such suggestion will be attendee design engineers from the considered as the need NGOs during detailed design of arises the proposed water supply

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Group Represented Issues/ Concerns Raised Project’s Response

system to ensure a good design PENRO Quezon; 1 QMWD was reminded to apply QMWD will surely apply for attendee for an Environmental an Environmental Compliance Certificate for the Compliance Certificate project

VII. GRIEVANCE REDRESS MECHANISM

105. Local grievance redress mechanism is important in the implementation of the proposed QMWD subproject since any complaints and concerns of the affected people must be address promptly at no costs to the complainant and without retribution. This mechanism shall be disclosed in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc Water District Environmental Complaints Committee (WDECC) for expeditious resolutions to the complaints. Complaints during the operation phase can be brought to the attention of the QMWD or DENR-EMB.

106. QMWD Environmental Complaints Committee. QMWD shall form the WDECC to be chaired by the Water District Project Implementation Unit (WD-PIU) head. Members shall include the following: (i) contractor’s highest official at the site such as Construction Manager or Construction Superintendent, (ii) barangay officials, (iii) concerned NGOs, and (iv) women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the civil works contract. Expeditious resolution of complaints during construction is important since activities are sometimes continuous and can easily change the landscapes within a week. For the quick filing of complaints, the WDECC shall prepare a form to be used for the filing of grievances/complaints. The use of form will also facilitate the filing of complaints by illiterate persons.

107. The steps to be followed in filing complaints and the procedures for redress are the following: (i) complainant shall provide the background and file the complaint verbally or in writing to WDECC. The WDECC secretary shall assist the complainant in filling-up the complaint form; (ii) within 2 working days, the WD-PIU head, contractor’s representative, and complainant shall discuss if the complaint can be resolved without calling for a WDECC meeting; (iii) if the complaint cannot be resolved by the WD-PIU head and contractor’s representative, a WDECC meeting shall be called with the complainant to resolve the complaint within 5 working days; (iv) if the complaint cannot be resolved, the complainant shall raise the issue to the barangay officials where barangay rules and regulations are followed for the amicable settlement of disputes at the barangay level without judicial recourse; and (v) if the complaint cannot be resolve at the barangay level, the complainant shall seek recourse with the courts. If the complaints are based on violations of the ECC terms and conditions, the complainant has an option to also bring the issue to DENR.

108. Complaints to DENR. Complaints about environmental performance of projects issued an ECC can also be brought to the attention of DENR-EMB. The process of handling such complaints is described in the Revised Procedural Manual (2007) for the IRR of PD 1586. The steps that DENR-EMB may follow in handling complaints are: (i) DENR-EMB shall verify if the complaint is actionable under P.D. 1586, (ii) within 72 hours from receipt of a complaint DENR-EMB will send the

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proponent a Notice of Alleged Violation (NAV) and requests for an official reply as to why the proponent should not be penalized, (iii) DENR-EMB may conduct field validation, site inspection and verification or other activities to assess or validate the complaint. The proponent is allowed to respond within 7 days. Proponent’s failure to respond to the NAV and further notices will force DENR-EMB to take legal actions. DENR may issue a Cease and Desist Order (CDO) to project proponents which shall be effective immediately based on: (i) violations under the Philippine EIS System, and (ii) situations that present grave or irreparable damage to the environment. PD 1586 also allows DENR to suspend or cancel the proponent’s ECC if the terms and conditions have been violated.

VIII. ENVIRONMENTAL MANAGEMENT PLAN

109. This section addresses the need for mitigation and management measures for the QMWD subproject. Information includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up is presented in the implementation arrangement and discusses the roles during implementation and the required monitoring. It also outlines the requirements and responsibilities during pre- construction, construction, and operation phases.

A. Environmental Mitigation

110. Table 7 presents the information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures. Details of mitigating measures are already discussed in Section V where the need for mitigation of each impacts was determined in the screening process.

Table 7 Environmental Mitigation Plan of QMWD Subproject Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision PRE-CONSTRUCTION PHASE Excavation Potential Tender documents shall include Pipeline Part of detailed Design requirements damage to a provision that will require trenches, design cost Consultants / archaeological construction activities to be civil works LWUA Project and cultural stopped immediately upon excavations Management assets discovery of any archaeological Unit (PMU) and cultural relics and authorities will be informed promptly Social and Potential Consultation with the affected Pipelines Part of detailed QMWD PIU, community nuisance and communities regarding the routes, design cost Design concerns problems to the expected impacts and proposed reservoir Consultants / public mitigation measures of the and LWUA PMU project; Tender documents shall pumping include provisions addressing the station potential nuisances and problems to the public during construction phase IR concerns Loss of assets Compensation and other Pipelines Part of detailed QMWD PIU, assistance for loss assets and routes, design cost Design land acquisition; Consultation reservoir Consultants / and information dissemination to and LWUA PMU affected people. pumping stations CONSTRUCTION PHASE Pipelaying Soil erosion Total area exposed shall be Pipelines Incorporated in Contractor / and other and sediments minimized; use of structural routes, construction QMWD PIU, civil works of construction erosion prevention and sediment reservoir contract Supervision sites during control practices which may and Consultants

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision rainy periods include: interceptor dikes, pipe pumping slope drains, straw bale barriers, station sediment traps, and temporary sediment basins Pipelaying Nuisance / Minimize water supply cut-off Pipelines Incorporated in Contractor / inconvenience periods and /or use of nighttime routes, construction QMWD PIU, to the public schedules, as well as contract Supervision announcement of water supply Consultants interruptions two to three days prior to actual cut-off; no dumping of earth, stones, and solid wastes in watercourses Pipelaying Nuisance from Consultation with affected areas; Pipelines Incorporated in Contractor / and other noise of not to operate noisy equipment routes, construction QMWD PIU, civil works construction during nighttime (22:00 – 06:00); reservoir contract Supervision equipment sound suppression for and Consultants equipment; ear plugs for workers pumping station Pipelaying Air pollution Water spraying for dust control; Pipelines Incorporated in Contractor / and other due to construction materials with routes, construction QMWD PIU, civil works construction potential for significant dust reservoir contract Supervision activities generation shall be covered; and Consultants tarpaulin cover for trucks pumping transporting loose construction station materials; no smoke belchers equipment Pipelaying Traffic Close coordination with local Pipelines Incorporated in Contractor / and other congestion and authorities in road closure and routes construction QMWD PIU, civil works hindrance to traffic rerouting; contractor’s contract Supervision access traffic plan; proper stockpiling of Consultants materials and immediate disposal of spoils; immediate restoration of roads and affected areas Pipelaying Pollution and Proper camp sanitation; Workers Incorporated in Contractor / and other health risks installation of sanitary facilities; camp construction QMWD PIU, civil works due to workers solid waste management; contract Supervision camp surface runoffs control such as Consultants temporary diversion drains, catch drains, and silt-traps Pipelaying Hazard to Implement road safety plan and Pipelines Incorporated in Contractor / and other public due to safety measures including routes, construction QMWD PIU, civil works construction warning signs to alert people of reservoir contract Supervision activities hazards around the construction and Consultants sites, barricades, and night pumping lamps for open trenches in station pipelaying Rehabilitation Improper Removal of all construction Pipelines Incorporated in Contractor / and closure closure of wastes and implement surface routes, construction QMWD PIU, of construction restoration reservoir contract Supervision construction sites and Consultants sites pumping station Pipelaying Increase Contractor required to give Pipelines No cost Contractor / and other employment preference to local labor; workers routes, QMWD PIU, civil works opportunities recruitment to be coordinated reservoir Supervision with local officials and Consultants pumping station OPERATION PHASE Water Health hazard Water disinfection using chlorine; Pipelines, Part of operation QMWD / LWUA production due to delivery water safety plan implementation reservoirs, & maintenance of poor water and costs quality pumping stations, Water Pollution from Septic tanks system of water Subproject Cost of water Water consumer/ consumption increased consumers water consumers LGU generation of supply sewage and service area sullage Groundwater Potential Groundwater pumping at lesser pumping No cost QMWD / LWUA pumping ground than the safe yield of each well stations subsidence

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision due to excessive pumping Pumping Pumping Use liquid chlorine (sodium Pumping Part of capital, QMWD / LWUA station station hypochlorite) instead of chlorine station operation & operation operational risk gas maintenance and safety costs

111. Although details of the required mitigating measures are already discussed in the screening for impacts, the following items are discussed further to highlight their importance: (i) tender documents and construction contracts, (ii) contractor’s environmental management plan, (iii) construction site management plan, (iv) water safety plan, (v) source protection study and wellhead protection plan, and (vi) unanticipated environmental impacts.

112. Tender Documents and Construction Contracts. Environmentally responsible procurement advocates the inclusion in construction contract documents the provisions addressing the management of environmental impacts and risk during construction. This includes the contractor’s submittal of a Contractor’s Environmental Management Plan (CEMP). Tender documents and construction contracts shall therefore include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (vii) public safety and convenience.

113. Contractor’s EMP. During construction, each contractor will be guided by its detailed CEMP. This shall be based on the QMWD subproject’s EMP with details on staff, resources, implementation schedules, and monitoring procedures. The agreed CEMP will be the basis for monitoring by PMU, QMWD PIU, and other monitoring parties. Inclusion in construction contract documents the provisions requiring the contractor to submit a CEMP is important since the contractor will be legally required to allocate a budget for mitigation measures implementation. The CEMP will allow QMWD’s construction supervision engineer to focus on what are specific items expected from the contractor regarding environmental safeguards on a day-to-day basis. With the CEMP, QMWD can easily verify the associated environmental requirements each time the contractor will request approval for work schedules.

114. The CEMP shall be prepared by all contractors before the start of the construction works and shall be approved by QMWD’s PIU. This requirement shall be included in the construction contracts. It shall provide details on specific items related to the environmental aspects during construction. It shall include specifications on requirements for dust control, erosion and sediment control, avoidance of casual standing water, management of solid wastes, workers’ camp sanitation, pollution from oil, grease, fuel spills, and other materials due to the operation of construction machineries, safety and traffic management, avoidance of inconveniences to the public, air and noise pollution control. It shall also include guidance on the proper design of the construction zone, careful management of stockpiles, vegetation, topsoil, and vehicles and machinery.

115. Water Safety Plan. QMWD shall manage the environmental risk to its water supply system in a broader scale. As previously pointed out, the role of a water safety plan in addressing the risk cannot be overemphasized. This is an approach advocated by WHO for ensuring the delivery of safe drinking water to the consumers.

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Its need is also reflected in the 2007 PNSDW. The water safety plan shall enable the QMWD to (i) prevent contamination of its water sources water, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re-contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the QMWD in applying best practices in ensuring delivery of potable water to its consumers.

116. Source Protection Study and Wellhead Protection Plan. An input to the preparation of the water safety plan is the source protection study. This includes preparation of a source water assessment and wellhead protection plan. The study will help identify risk to the water supply system. A source water assessment is an evaluation of how susceptible a source may be to potential sources of contamination. Potential contaminant sources that could adversely affect the quality of water supply source are identified. Output of assessments will be used to prepare the wellhead protection plan. Wellhead Protection is a way to prevent drinking water from becoming polluted by managing potential sources of contamination in the area with influence to the groundwater supplies to the well. The wellhead protection plan includes designating the protection area or capture zone. A wellhead protection plan is particularly important for QMWD since its groundwater sources are within or near built-up areas and the risk of contamination to these sources is high.

117. Unanticipated Environmental Impacts. Where unanticipated environmental impacts become apparent during project implementation, QMWD shall prepare a supplementary environmental assessment and EMP to assess the potential impacts and outline mitigation measures and resources to address those impacts.

B. Environmental Monitoring

118. Table 8 presents the information on: (i) aspects or parameter to be monitored, (ii) location where monitoring is applicable, (iii) means of monitoring, (iv) frequency of monitoring, (v) responsibility of compliance monitoring, and (vi) cost of monitoring. The PMU shall prepare quarterly environmental monitoring reports to be submitted to LWUA’s management detailing the status of mitigating measures implementation.

Table 8: Environmental Monitoring Plan of QMWD Subproject Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility PRE-CONSTRUCTION PHASE Specific Pipeline Verify draft and Twice – draft Design LWUA PMU Part of project provision in trenches, civil final documents and final consultants management in tender works documents detailed design documents on excavations (minimal cost) archeological/ cultural relics Consultation Pipelines Verify meetings After QMWD, LWUA PMU Part of project meetings; routes, documentation; completion of Design management in Specific reservoir and Verify draft and meetings; consultants detailed design provisions in pumping station final documents Twice – draft (minimal cost) tender and final documents on documents nuisance & problems to public Consultation Pipelines Verify meetings After QMWD, LWUA PMU Part of project meetings; routes, documentation; completion of Design management in payments to reservoir and Verify plans meetings; consultants detailed design

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Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility affected people pumping and IR upon (minimal cost) stations payments completion of payments CONSTRUCTION PHASE Total area to be Pipelines Visual Daily during Contractor Construction Part of consultant’s exposed; runoff routes, inspection of rainy periods supervision construction flowing into reservoir and sites; plans consultants, supervision disturbed sites pumping station verification QMWD PIU contract; minimal cost to QMWD PIU Water supply Pipelines Visual Daily Contractor Construction Part of consultant’s interruptions; routes inspection of supervision construction materials and sites; work consultants, supervision solid wastes schedules QMWD PIU contract; minimal dumped in verification cost to QMWD PIU watercourses Noise levels not Pipelines Use of sound Daily Contractor Construction Part of consultant’s to exceed 50 routes, levels meter supervision construction dBA near reservoir and consultants, supervision school, 55 dBA pumping station QMWD PIU contract; minimal in other areas, cost to QMWD PIU and 45 dBA during nighttime Dust, cover of Pipelines Visual Daily Contractor Construction Part of consultant’s stockpiles, routes, inspection of supervision construction smoke belching reservoir and sites consultants, supervision pumping station QMWD PIU contract; minimal cost to QMWD PIU Road closure Pipelines traffic plans weekly Contractor Construction Part of consultant’s and traffic routes verification supervision construction rerouting; consultants, supervision materials QMWD PIU contract; minimal stockpiles; road cost to QMWD PIU restoration Sanitary toilets, Workers camps Visual Once before Contractor Construction Part of consultant’s garbage bins, inspection of start of supervision construction runoff controls camps construction consultants, supervision and once QMWD PIU contract; minimal monthly cost to QMWD PIU Road safety Pipelines Visual Daily Contractor Construction Part of consultant’s plan; sign, routes, inspection of supervision construction barricades and reservoir and sites consultants, supervision night lamps pumping station QMWD PIU contract; minimal cost to QMWD PIU Construction Pipelines Visual Once before Contractor Construction Part of consultant’s wastes routes, inspection of final stage of supervision construction reservoir and sites demobilization consultants, supervision pumping station QMWD PIU contract; minimal cost to QMWD PIU Number of local Pipelines Verification of Once a month Contractor QMWD PIU No cost labor employed routes, contractor’s reservoir and records pumping station OPERATION PHASE E. Coli bacteria; Pipelines, Water sampling Monthly for QMWD LWUA Part of QMWD’s PNSDW reservoirs, and and laboratory bacteria; operation cost physical & pumping test annual for (USD300 /year) chemical stations, physical & chemical Septic tank of Subproject Visual Once a year Water LGU Minimal cost water water supply inspection of consumer consumers service area sites

Groundwater Wells/ pumping Use of Once a month QMWD LWUA Minimal cost to levels stations groundwater QMWD level meter liquid chlorine Pumping Verification of Once a year QMWD LWUA Minimal cost usage stations operation records

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119. Project Performance Monitoring. Project performance monitoring presents the desired outcomes as measurable events by providing parameters or aspects that can be monitored and verified (Table 9). Tendering process advocating environmentally responsible procurement is a desired outcome during the pre- construction phase. This can easily be verified by checking if EMP requirements are incorporated in construction contracts. Construction phase desired outcomes include effective management of environmental impacts and reduce risk to public. For the operation phase, QMWD’s water supply system must meet the drinking water standards (2007 PNSDW) for bacteria count (E. coli), color, pH, turbidity, dissolved solids, hardness, alkalinity, manganese, iron, fluoride, chloride, sulfates, magnesium, calcium, carbonates, and bicarbonates .

Table 9: Project Performance Monitoring of QMWD Subproject Aspects / Means of Frequency Implemen- Compliance Monitoring Desired Outcomes Parameters Monitoring tation Monitoring Cost to be monitored PRE-CONSTRUCTION Detailed design is EMP Verify detailed Two reviews: QMWD, LWUA PMU Minimal environmentally requirements design (i) draft Design cost responsive incorporated documents; detailed consultants in detailed EMP design design requirements documents reflected in and (ii) prior to tender approval of documents final documents Tendering process EMP Verify Prior to QMWD PIU LWUA PMU Minimal advocates requirements construction finalization of cost environmentally incorporated contract construction responsible in construction documents; contract procurement contracts documents CONSTRUCTION PHASE Effective management Number of Verification of Once a month Contractor Construction Part of of environmental public contractor’s supervision consultant’s impacts during complaints on records; consultants, construction construction construction QMWD QMWD PIU supervision activities coordination contract; with local minimal officials cost to QMWD PIU Reduce risk to public Number of Verification of Once a month Contractor Construction Part of during construction accidents contractor’s supervision consultant’s involving records; consultants, construction construction QMWD QMWD PIU supervision activities coordination contract; with local minimal officials cost to QMWD PIU OPERATION PHASE Water quality meets Required Water Monthly for QMWD LWUA Part of drinking water drinking water sampling and bacteria; QMWD’s standards quality laboratory test annual for operation parameters physical & cost chemical (USD300 /year)

C. Implementation Arrangement

120. This subsection presents the: (i) institutional set-up, (ii) implementation schedule, (iii) required clearances and permits, and (iv) capability building.

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121. Institutional Setup. LWUA is the executing agency, while QMWD is the implementing agency. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. LWUA will establish a Project Management Unit (PMU) to coordinate implementation at the national level, including procurement of goods, works, and services. A PMU staff shall be designated as the Environment Officer for the project. At the subproject level, QMWD will be responsible during construction and operation phase of the subproject. During the construction phase, QMWD shall establish a Project Implementation Unit (PIU) to work closely with LWUA’s PMU. A team of consultants will assist LWUA’s PMU and QMWD during pre-construction and construction phases. The role of the WDECC during the construction phase is highlighted since it is an important aspect of the grievance redress mechanism in promptly addressing the public’s complaints about environmental performance of the subproject during execution of the construction activities.

122. Environmental Monitoring Reports. During the construction period, the construction supervision consultants, together with the PIU, shall prepare monthly environmental monitoring reports to be submitted to QMWD and the PMU. The contractor shall submit to the PIU a monthly environmental monitoring report. Based on the monthly reports, the PMU shall prepare semi-annual environmental monitoring reports which shall be submitted by LWUA to ADB.

123. Implementation Schedule. As presented in the project description, the QMWD subproject is scheduled to start on 2011 and to be completed on December 2013. However, construction of the components is scheduled for 2012 up to 2013. QMWD shall ensure that construction contract provisions related to the EMP shall be included in the tendering stage in 2011.

124. Clearances and Permits. Under present Philippine regulations, QMWD shall apply for an Environmental Compliance Certificate (ECC) from the DENR for the proposed water supply systems.

125. Capability Building. WDDSP implementation will be supported by consulting services to be sourced in two contract packages: (i) project management advisory services, including detailed engineering designs, preparation of contract documents, support to water districts with construction supervision and quality control, and the preparation of any resettlement plans; and (ii) institutional development and capacity building for LWUA, the project management unit (PMU), and water districts.

IX. CONCLUSION AND RECOMMENDATIONS

126. QMWD need to augment its existing water sources to meet present and future supply requirement for potable water in its service area. With the proposed water supply system under WDDSP, its capacity to deliver safe drinking water and adequate water pipeline pressure will significantly improve. Nine new deepwells will be drilled in Lucena City, Pagbilao, and Tayabas to cope with the increasing water demand in QMWD.

127. The environmental screening process has highlighted the environmental issues and concerns of the proposed QMWD subproject. An important fact considered in the screening is that the proposed sites for pumping stations, reservoirs, and pipelines are not within undisturbed landscapes since these have

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD 32 been residential, commercial, institutional, and agricultural landscapes dominated by coconut groves with patches of rice fields. Houses, commercial establishments, schools, etc. can be seen in most areas immediately adjacent to the roads and highways. Areas beyond the road corridor are basically cultivated strips of land. Hence, the proposed subproject is essentially not a new incursion to an ecologically untouched zone.

128. Based on the screening for environmental impacts and risks, there are no significant negative environmental impacts and risks that cannot be mitigated. Consequently, this assessment concludes that the proposed QMWD subproject can be implemented in an environmentally acceptable manner. There is no need for further environmental assessment study. A full EIA is not warranted and the subproject’s environmental classification as Category B is deemed appropriate. The IEE shall therefore be finalized as the final environmental assessment document of the proposed subproject.

129. The proposed QMWD subproject is hereby recommended for implementation with emphasis on the following: (i) EMP of QMWD subproject shall be included in the design process; (ii) Contracts of design consultants shall have provisions requiring the consultants to consider EMP recommendations in the design process; (iii) Tendering process shall advocate environmentally responsible procurement by ensuring the inclusion of EMP provisions in the bidding and construction contract documents; (iv) Contractor’s submittal of a CEMP shall be included in the construction contract; (v) Contract provisions on creation and operation of the WDECC shall be included in construction contracts; (vi) LWUA, with its regulatory function, shall ensure that capability building for QMWD shall be pursued; and (vii) QMWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

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REFERENCES

Asian Development Bank (ADB). 1993. Environmental Guidelines for Selected Infrastructure Projects. Office of the Environment, Asian Development Bank.

____. 1998. Environmental Assessment Requirements of the Asian Development Bank. Environment Division Office of the Environment and Social Development, Asian Development Bank.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Water Supply. ADB Online.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Sewage Treatment. ADB Online.

____. 2009. Safeguards Policy. ADB Online.

Department of Environment and Natural Resources (DENR). 1990. Revised Effluent Regulations of 1990. DENR Administrative Order No. 35.

Department of Health (DOH). 2007. Philippine National Standards for Drinking Water.

Poyry-IDP Consult. 2009. Subproject Appraisal Report: Quezon Metro Water District. ADB TA7122-PHI. Manila.

World Bank (WB). 1991. Environmental Assessment Sourcebook Volume II – Sectoral Guidelines.

____ (WB). 2006. Philippine Sanitation Sourcebook and Decision Aid.

World Health Organization. 2005. Water Safety Plans. Geneva.

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ANNEXES

Sites Photographs

Minutes of Consultation Meeting

List of Participants - Consultation Meeting

Attendance Sheet - Consultation Meeting

Photographs - Consultation Meeting

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SITES OF PROPOSED QUEZON METRO WATER DISTRICT (QMWD) WATER SUPPLY SYSTEM

Photo No.1 – Farmlands as sites of typical proposed reservoirs in QMWD

Photo No.2 – Typical highway in QMWD areas where water supply pipelines will be laid

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Minutes of the Public Consultation/Meeting held at Quezon Metro Water District Office, Lucena City, 11 August 2009

Opening/ Presentations:

The public consultation/meeting started at 9:15 A.M. with QMWD’s General Manager (GM), Mr. Enrico Pasumbal, welcoming the participants and thanked them for positively responding to QMWD’s invitation.

QMWD’s Board Chairman, Mr. Gilbert Camaligan, also welcomed the participants and emphasized the need for a septage management program.

Mr. Arturo Donasales, QMWD’s Engineering Division Manager, presented the detailed aspects of the proposed water supply system.

Mr. Bonifacion Magtibay, WDDSP’s Sanitation Specialist, gave a brief presentation of the proposed septage management system as a component of the proposed ADB- funded project.

Comments, Views, Issues and Concerns raised by Stakeholders

Mr. Eleria, Sangguniang Bayan (SB) Pagbilao, commented that the septage management program should not add to the increase the water tariff. The GM answered that effects on the water tariff are still being studied.

Dr. Palayan, Tayabas Municipal Health Officer, commented that there might difficulty in implementing a septage management program in Tayabas since only very few households have septic tanks. Mr. Magtibay answered that prior to implementation the Tayabas local government should encourage the people to build their septic tanks and pass an ordinance regarding septage management.

Mr. Oaben, Couples for Christ Representative, expressed his appreciation of the proposed project since because the Gawad Kalinga area in Barangay Mayao Castillo has no piped water supply. The GM informed Mr. Oaben that if the project will push through, QMWD might consider installing a public faucet in their area to serve the poor households.

Mr. Palad, Senior Citizen President, raised the issue of giving discount to senior citizens on their water bills in accordance with the Senior Citizens Law. QMWD’s GM and Chairman declared that indeed senior citizens will be granted discounts on their water bills since it is covered by law.

Mr. Reyes, Barangay Chairman, asked how long will a trench be left open during construction. The GM answered that it will be closed as fast as possible and would be approximately one week after the laid pipes are deemed acceptable.

Mr. Tan, Pagbilao Chamber, suggested that QMWD shall seek the help of design engineers from the NGOs during detailed design of the proposed water supply system to ensure a good design. The GM answered that such suggestion will be considered as the need arises.

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Mr. Zaportesa, SB Pagbilao, why there were sudden service interruptions in Pagbilao. The GM answered that some existing pipes have many leaks, but QMWD has now a program to replace them.

Mr. Buenafe, DENR-PENRO Quezon, reminded QMWD that it has to apply for an Environmental Compliance Certificate if the project will push through.

WDDSP consultants asked the participants if they have any environmental or social issues regarding the proposed project. The participants answered that aside from what have been discussed, they have none for the moment.

Juliet Villegas of Poyry-IDP asked if the participants have additional issues to raise. After confirming that there were no more issues, QMWD’s GM closed the meeting by thanking everyone for participating in the public consultation.

Meeting Closed at 11: 20 A.M.

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List of Participants of Quezon Metro WD Public Consultation and Information Disclosure [11 August 2009]

Stakeholders/Participants:

• Aristeo P. Palad – Senior Citizen Pres and OSCA , Senior Citizen • Dominador A. Poruasquro – Brgy Chairman, Mayao Castillo • Victor G. Santos - Brgy Chairmain, Mayao Parada • Juan Zaportam – SB, Pagbilao, Quezon • Raymond M. Buenafe - Environmentalist, DENR-PENRO, Quezon • Macario J. Reyes – Brgy Chairman, Brgy Kan Palete, Tay. Quezon • Antonio Q. Tan - NGO Pagbilao, Pagbilao Chamber • Danny Eloria – SB Pagbilao, Pagbilao, Quezon • Espiridion D. Oabe - G.K. Head, Couples for Christ • FO3 Ruel G. Balilo - Pres. Ciudad de Tayabas Rotary Fire Tayabas • Mori V. Rabue – PP/Dir RC Ciudad de Tayabas • Nelson I. Palayan, MD – Municipal Health Officer, Tayabas LGU

Quezon Metro Water District (QMWD) and WDDSP Team

• Gilbert Camaligan – Chairman, QMWD • Enrico B. Pasumbal – GM, QMWD • Arturo O. Donasales – OIC-Mgr, Eng’g Div, QMWD • Rosendo L. Razon – Division Mgr, QMWD • Janet V. Santos – OIC, Pagbilao Office, QMWD • Arlene Reyes – Finance Manager, QMWD • Imee F. Tumacden – Sr. PIO – A, QMWD • Andres Remolona – Records Secretary, QMWD • Christian Alindaya – Utility, QMWD • Joy Guera – Utility, QMWD • Cecille Solon – Supervisor, QMWD • Andy T.- Staff, QMWD • Ruben Maguo – OEM Staff, QMWD • Nini Francia – Tayabas Branch Manager, QMWD • Arlene Jusi – consultant, Poyry-IDP • Bonifacio Magtibay – consultant, Poyry-IDP • Jett Villegas – consultant, Poyry-IDP • Ruel Janolino – consultant, Poyry-IDP

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List of Participants of Quezon Metro WD Public Consultation and Information Disclosure [11 August 2009]

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List of Participants of Quezon Metro WD Public Consultation and Information Disclosure [11 August 2009]

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PHOTOGRAPHS OF QMWD PUBLIC CONSULTATION MEETING

Photo No.3 – QMWD GM clarifying some points at public consultation meeting [11 August 2009]

Photo No.4 – Stakeholder’s representative raising points at public consultation meeting [11 August 2009]

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE QMWD

Initial Environmental Examination

Initial Environmental Examination Project Number: 41665 April 2010

Legazpi City Water District Water Supply Subproject

Republic of the Philippines: Water District Development Sector Project ADB TA 7122-PHI

The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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CURRENCY EQUIVALENTS (As of April 2010)

Currency Unit Philippines Peso (PHP)

$1.00 = PHP45.17

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank barangay village CDO Cease and Desist Order CEMP Contractor’s Environmental Management Plan CKWD City of Koronadal Water District cumd cubic meters per day DENR Department of Environment and Natural Resources DOH Department of Health ECC Environmental Compliance Certificate EIA environmental impact analysis EMB Environmental Management Bureau EMP environmental management plan FGD focus group discussion IA implementing agency IEE initial environmental examination IRR Implementing rules and regulations LCWD Legazpi City Water District LGU local government unit LMWD Leyte Metro Water District lpcd liters per capita per day lps liters per second LWUA Local Water Utilities Administration mg/l milligrams per liter MLUWD Metro La Union Water District MOA memorandum of agreement NAV Notice of Alleged Violation NGO non-government organization NRW Non-revenue water NSO National Statistics Office NWRB National Water Resources Board PD presidential decree PENRO Provincial Environment and Natural Resources Office PHP Philippine peso PIU project implementation unit PMU project management unit PNSDW Philippine National Standards for Drinking Water PPTA project preparation technical assistance QMWD Quezon Metro Water District RA republic act TA technical assistance WD water district WDDSP Water District Development Sector Project WDECC Water district environmental complaints committee WHO World Health Organization

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Table of Contents

Page

EXECUTIVE SUMMARY ...... IV

I. INTRODUCTION ...... 1

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 1

III. DESCRIPTION OF THE PROJECT ...... 3 A. Proposed Water Supply System ...... 3

IV. DESCRIPTION OF THE ENVIRONMENT ...... 6 A. Physical Resources ...... 6 B. Ecological Resources ...... 8 C. Economic Development ...... 9 D. Socio and Cultural Resources ...... 12

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 14 A. Design/Pre-Construction Phase Considerations ...... 15 B. Construction Phase Environmental Impacts ...... 16 C. Operation Phase Environmental Impacts...... 19

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 21

VII. GRIEVANCE REDRESS MECHANISM ...... 23

VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 24 A. Environmental Mitigation ...... 24 B. Environmental Monitoring ...... 27 C. Implementation Arrangement ...... 29

IX. CONCLUSION AND RECOMMENDATIONS ...... 30

ANNEXES ...... 33

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List of Tables

No. Title Page

1 Annual Served Population Projections 3 2 Bogna and Mabinit Wells Data 4 3 Summary of Environmental Impacts Screening for LCWD Subproject 15 4 Environmental Impacts and Risks for Inclusion in EMP of LCWD Subproject 21 5 Summary of Consultation Outcomes 22 6 Environmental Mitigation Plan of LCWD Subproject 24 7 Environmental Monitoring Plan of LCWD Subproject 27 8 Project Performance Monitoring of LCWD Subproject 29

List of Figures

No. Title Page

1 Location Map vii 2 Schematic Diagram of Proposed Legazpi City Water Supply System 5 3 Implementation Schedule 6

List of Photographs

No. Description Page

1 Hydraulic control structure at Barangay Bogna to be activated as part of the 34 proposed water supply system 2 Proposed area of reservoir and well at Barangay Taysan of Legazpi City 34 3 LCWD Acting GM explaining some points at public consultation meeting 38 4 Chairman of Barangay Taysan raising a point at public consultation meeting 38

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EXECUTIVE SUMMARY

1. An environmental assessment was made for the proposed water supply system of Legazpi City Water District (LCWD). It is one of the 5 pilot subprojects to be funded by the Asian Development Bank (ADB) under the Water District Development Sector Project (WDDSP) of the Local Water Utilities Administration (LWUA). Legazpi City is located in the province of Albay, Republic of the Philippines (Figure 1). Relative to the significance of impacts and risks, this subproject is deemed Environmental Category B based on ADB’s environmental categorization and the type of assessment warranted only the preparation of an Initial Environmental Examination (IEE) report. This IEE was carried out under ADB’s TA 7122-PHI and in accordance with ADB’s Safeguards Policy (2009).

2. The assessment was also carried out within the policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines. These include the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The overall institutional framework is the LWUA and WD setup as defined by PD 198. Under WDDSP, LWUA is the executing agency, while WDs, such as LCWD, are the implementing agencies.

3. Subproject Description. The proposed LCWD subproject will help improve the living conditions of the urban population in the Legazpi City and enhance competitiveness by developing water supply infrastructures. LCWD’s proposed water supply system components shall include the following: i) reactivation of wells placed in stand-by status, (ii) development of new source facilities for expansion areas, (iii) construction of new pumping facilities, (iv) installation of new pipelines, (v) construction of a new storage tanks, and (vi) provision of new service connections.

4. Environmental and Socioeconomic Conditions. Project implementation will not pose significant problems to the environment since present ecological setting of the areas for the proposed water supply system in Barangays Bogna and Mabinit are residential and agricultural landscapes dominated by coconut groves. Most areas immediately adjacent to the road where pipelines are to be laid are already occupied by residential and other structures, while areas beyond the road corridors are basically agricultural land. An important fact to consider is that the sites are not within undisturbed landscapes, but areas touched by human activities over the years resulting to their present residential and agricultural landscapes.

5. Socioeconomic indicators revealed that LCWD’s service area has a growing urban sector. Its 2007 total population was 175,843 with 35,290 households. Urban population accounts for 61.56% of the total population. The present franchise area of LCWD is the whole of Legazpi City covering 70 barangays while the existing service area encompasses only 53 barangays. LCWD operates a water supply system serving an estimated 87,000 people with a total of 16,934 active connections as of May 2009.

6. Impacts and EMP. Screening for environmental impacts is made through a review of the parameters associated with projects for piped water supply against the components of the proposed LCWD subproject. An important consideration in analyzing the environmental impacts of the proposed subproject is the fact that these are improvements of an existing water supply system in an already altered environment. Water pipelines, pumping stations, and reservoirs are not new incursions to ecologically undisturbed landscapes. In Barangays

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Barangays Bogna, Mabinit, and Taysan, pipelines will pass through areas already occupied by people or influenced by long periods of human activities. The issue on impacts and risks to biodiversity conservation is not applicable to this subproject since the subproject’s components will not be located in areas that are environmentally sensitive and have precious ecology.

7. During detailed design and pre-construction phase, potential nuisances and problems to the public during construction shall be addressed by inclusion in the tender documents of specific provisions addressing these issues. Although there are no issues related to historical and cultural assets, a precautionary measure shall be taken by inclusion of provisions in tender and construction contract documents requiring the contractor to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

8. Required lands for acquisition were identified during the planning phase and shall be updated during detailed design phase as soon as the final locations of facilities are available. A separate plan for compensation will be prepared. On resource use, LCWD will apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict.

9. Adverse environmental impacts during construction are temporary, less than significant, and can easily be mitigated. There will be no massive construction activities that can damage the environment. Water supply pipelaying is a low impact construction activity since trench excavation is shallow with narrow width. Excavated soil is backfilled to the trench after pipelaying. Required structures are relatively small in size. Typical construction issues are manageable with the implementation of a site management plan for: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience.

10. Environmental problems due to operation of the proposed water supply system can be avoided by incorporating the necessary measures in the design and use of appropriate operational procedures. Public health risk due to delivery of poor water quality can be prevented in a broader scale by implementing a water safety plan as advocated by World Health Organization (WHO) and the 2007 Philippine National Standards for Drinking Water (PNSDW). Chlorinators will be used for controlling microbial contamination and ensure adequate residual disinfection. Liquid chlorine instead of chlorine gas will be used to reduce risk and improved safety of workers. Potential ground subsidence due to excessive groundwater pumping can be avoided by operating each well at a rate lower than its safe yield.

11. An Environmental Management Plan (EMP) is developed to effectively manage the environmental issues. The plan includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up discusses the requirements and responsibilities during pre- construction, construction, and operation phases. The plan includes tabulated information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures and monitoring.

12. Consultation and Participation. Project planning and the subsequent IEE preparation for the proposed LCWD subproject recognized the need for public consultation and participation as central to effective environmental safeguard. Within the context of “meaningful consultation”, LCWD initiated a process of consultation during project preparation and intends to continue it during the construction phase. LCWD conducted an initial public consultations and information disclosure last 16 July 2009 with concerned individuals,

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LCWD vi barangay official, LGU planning official, and DENR-Environmental Management Bureau (DENR-EMB) officials. Details of the subproject components were presented to the stakeholders and their views on the respective proposals were requested. Stakeholders expressed support to the proposed subproject. Project disclosure activities were also done during the conduct of a socioeconomic survey between April to May 2009. Some 385 households in LCWD area were informed about the proposed subproject and interviewed for socioeconomic data. During detailed design, LWUA and LCWD will again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. LCWD shall keep records of environmental and social complaints received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

13. Grievance Redress Mechanism. Implementation of the proposed LCWD subproject will be fully compliant to ADB’s safeguards requirement on grievance redress mechanism. LCWD shall disclose the proposed mechanism in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc WD Environmental Complaints Committee (WDECC) for expeditious resolutions of the complaints, while complaints during the operation phase can be brought to the attention of DENR-EMB. LCWD shall address promptly, at no costs to the complainant and without retribution, any complaints and concerns. WDECC shall be chaired by LCWD and shall have members from the contractor, barangay government, concerned non-government organization (NGOs), and women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the subproject’s civil works contract. DENR-EMB is mandated by PD 1586 to act on complaints about environmental performance of projects issued with environmental compliance certificates.

14. Conclusion and Recommendation. The proposed subproject will increase LCWDs coverage on providing water supply services. Failure to implement the subproject may lead to public health deterioration. By 2015, LCWD’s proposed water supply system will increase the population to be served in Legazpi City to 101,380. Further increases in served population are expected in the years to follow due to the availability of water supply infrastructures implemented under WDDSP.

15. Analysis of potential environmental impacts revealed no significant adverse impacts to people and environment from the proposed water supply subproject. The IEE concludes that adverse environmental impacts arising from the location, design, construction, operation, and maintenance of the proposed subproject can be mitigated to less significant levels and the corresponding mitigation measures are doable. Monitoring can easily be done. The project can be implemented in an environmentally acceptable manner. An expanded environmental impact assessment is therefore not warranted, and this IEE shall be finalized as the final environmental assessment document of the LCWD subproject. Its environmental classification as Category B is deemed appropriate.

16. LWUA and LCWD shall ensure that EMP requirements for the construction phase will be reflected in the tender documents and civil works contracts and implemented including the contractors submission of Contractor’s Environmental Management Plan (CEMP). LWUA shall monitor LCWD’s compliance to the EMP. In addition, creation of WDECC and its operation, as part of the grievance redress mechanism, shall be included in appropriate sections of the subproject’s civil works contracts. Institutional strengthening of LCWD, including training, is recommended for effective EMP implementation. LCWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

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Figure 1: Location Map

Metro La Union WD

Quezon Metro WD Legazpi City WD

Leyte Metro WD

City of Koronadal WD

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I. INTRODUCTION

1. The Legazpi City Water District (LCWD) is an operational water supply utility located in Legazpi City, Albay, Republic of the Philippines and one of the selected subprojects under TA 7122-PHI: Water District Development Sector Project (WDDSP) funded by the Asian Development Bank (ADB). The objective of the TA study is to assist the government of the Philippines to prepare a water district development sector project. It is intended to improve the livability and competitiveness in urban areas outside of Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The Local Water Utilities Administration (LWUA) is the executing agency. The participating water districts are the implementing agencies for water supply and sanitation subprojects.

2. Preparation of this Environmental Examination (IEE) is part of the Phase 2 activities of the TA. It provides ADB with an assessment of the environmental concerns to be considered regarding the subproject location, design, construction, and maintenance. This report is also intended to assist LWUA and the LCWD in the preparation of the required environmental document to meet the Department of Environment and Natural Resources (DENR) requirements for an application of the necessary Environmental Compliance Certificate (ECC) before the start of the construction activities.

3. This IEE is one of the of five IEE studies prepared by Poyry IDP Consult, Inc., Philippines in association with TEST Consultants Inc., Philippines and Poyry Environment GmbH, Germany for the initial selected subprojects. Preparation of the IEE involved field visits to the proposed subproject area; review of available information, discussions with LCWD, LWUA, DENR, and other government agencies, local government officials, and members of the community within the subproject area. The assistance of the LCWD General Manager and staff in arranging the site visits, meetings, and providing support during the conduct of the study is gratefully acknowledged.

4. The IEE has been carried out in accordance with ADB’s Safeguard Policy (2009) and the requirements describe in its Appendix 1 (SAFEGUARDS REQUIREMENTS 1: ENVIRONMENT). The IEE follows the outline prescribed in the Annex to Appendix 1 excluding the section on analysis of alternatives (not necessary for an IEE).

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

5. The policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines have long been established by the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The frameworks apply to the LCWD subproject.

6. The overall institutional framework is the LWUA and WD setup as defined by PD 198 otherwise known as the “Provincial Water Utilities Act of 1973”. LWUA, as a government corporation, is mandated to promote the development of water districts

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LCWD 2 in the country. It has a clear mandate to “primarily be a specialized lending institution for the promotion, development, and financing of local water utilities.” To carry out this mandate LWUA has major subsidiary roles such as: (i) prescribing minimum standards and regulations in order to assure acceptable standards of construction materials and supplies, maintenance, operation, personnel training, accounting, and fiscal practices for local water utilities; (ii) providing technical assistance and personnel training programs.

7. PD 198 also mandated the formation of local water districts, which were initially formed by resolutions of the LGUs (generally, municipalities) as a single entity or as a combination of LGUs. Once formed, however, a WD becomes legally autonomous of the LGU and has the standing and legal character of an independent government- owned and controlled corporation. It is controlled by a board of directors, appointed by either the mayor or the governor, consisting of five members representing various sectors, who in turn appoint the WD’s general manager. Hence, LCWD was formed by virtue of PD 198.

8. Under WDDSP, LWUA is the executing agency, while the WDs, such as LCWD, are the implementing agencies. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. WDDSP can contribute to Philippine efforts in achieving relevant targets in the Millennium Development Goals (MDGs), eight international development goals that 192 United Nations member states have agreed to achieve by the year 2015. Most relevant to WDDSP is Goal 7 (Ensure environmental sustainability) with its “Target 7C” for 2015 calling to reduce by half the proportion of people without sustainable access to safe drinking water and basic sanitation. Achieving the MDG 2015 target on accessibility to safe drinking water necessitates an assurance that indeed the water is safe. WDs must have raw water sources with sustainable quantities and acceptable quality. They should be able to maintain acceptable water quality levels in the distribution systems to ensure delivery of potable water. The 7C Philippine target is 86.8% of Filipinos will have access to safe water by 2015 and 83.8% will have access to a sanitary toilet facility.

9. Implementation of infrastructure and development projects in the Philippines is legally covered by PD 1586 otherwise known as “Establishing the Philippine Environmental Impact Statement System” with its implementing rules and regulations issued under Department of Environment and Natural Resources (DENR) Administrative Order No. 30 series of 2003 (DAO 03-30). This system requires the project proponent to obtain an Environmental Compliance Certificate (ECC) from the DENR before an infrastructure project can be constructed. The Philippine environmental assessment system conforms with ADB’s environmental assessment requirements as revealed by ADB’s Special Evaluation Study on Environmental Safeguards (2006).

10. Sewerage and septage management are covered by Republic Act No.9275 otherwise known as “The Philippine Clean Water Act of 2004”. Its implementing rules and regulations are issued under DENR Administrative Order No.10 series of 2005 (DAO 05-10). Standards for the discharge of all industrial and municipal wastewaters are defined in DENR Administrative Order No. 35 series of 1990 otherwise known as “The Revised Effluent Regulations of 1990” which is based on the Philippine Pollution Control Decree of 1976 issued as PD 984. Sanitation and septic tanks are also covered by PD 856 otherwise known as “Code on Sanitation of the Philippines”.

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III. DESCRIPTION OF THE PROJECT

A. Proposed Water Supply System

11. This subproject aims to improve the water supply system of LCWD in order to meet the projected water demand for the design year 2025 both in the existing and proposed service areas. LCWD’s projected total average-day demand will be 20,703 cubic meters per day (cumd) and 24,854 cumd, respectively for the years 2015 and 2025. Projected domestic water demand will be 155 liters per capita per day (lpcd) in 2015 up to 2025. The served population is estimated at 103,108 by 2015 representing some 52.2% of the total city population. It will be about 127,235 in the year 2025.

Table 1: Annual Served Population Projections Population Served and Number of Connections Projections Service Domestic/Government Commercial/Industrial Institutional Total Unaccoun Average Area Water Water Water Water Year No. of Populatio No. of Populatio No. of No. of Populatio ted for Day Populatio Demand Demand Demand Demand Conn n Served Conn n Served Conn Conn n Served Water Demand n (cu. m/d) (cu. m/d) (cu. m/d) (cu. m/d) 2010 117739 14757 76827 11908 2316 11578 2316 226 678 17298 88404 14902 23 19353 2011 123786 14987 78029 12094 2443 12214 2443 232 697 17662 90242 15234 23 19785 2012 129832 15218 79230 12281 2570 12850 2570 239 716 18027 92081 15566 23 20216 2013 135879 15449 80432 12467 2697 13487 2697 245 734 18391 93919 15898 23 20647 2014 141925 15680 81634 12653 2825 14123 2825 251 753 18755 95757 16230 20 20288 2015 147972 16958 88289 13685 2964 14819 2964 257 771 20179 103108 17420 20 21775 2016 154018 17307 90104 13966 3093 15466 3093 263 790 20663 105570 17849 20 22311 2017 160065 17655 91919 14247 3222 16112 3222 269 808 21147 108031 18278 20 22848 2018 166111 18004 93734 14529 3352 16758 3352 276 827 21631 110492 18707 20 23384 2019 172158 18353 95549 14810 3481 17404 3481 282 845 22115 112954 19136 20 23921 2020 178204 18659 97364 15091 3610 18051 3610 288 864 22557 115415 19566 20 24457 2021 184251 19031 99079 15357 3740 18700 3740 294 882 23065 117779 19980 20 24975 2022 190297 19360 100794 15623 3870 19349 3870 300 901 23530 120143 20394 20 25492 2023 196344 19689 102508 15889 4000 19999 4000 307 920 23996 122507 20808 20 26010 2024 202390 20019 104223 16155 4130 20648 4130 313 938 24461 124871 21222 20 26528 2025 208437 20351 105938 16420 4259 21297 4259 319 957 24929 127235 21636 20 27046 Source: Poyry-IDP Consult. 2009. Draft Subproject Appraisal Report: Legazpi City Water District. ADB TA7122-PHI. Manila.

12. The recommended plan for the water supply component includes the reactivation of wells placed in stand-by status, development of new source facilities for expansion areas, construction of new pumping facilities, installation of new pipelines, construction of a new storage tanks, and provision of new service connections. Schematic drawing of the proposed water supply system is presented in Figure 2.

13. Source Facilities. The nine existing stand-by wells at Bogna and Mabinit well fields shall be re-commissioned (Table 2). These wells have a combined discharge capacity of 8,984 cumd. To be re-commissioned are Bogna well Nos. 1, 2, 4, 5, 6 and 8, and Mabinit well Nos. 2, 3 and 6. These wells have depths of 25 to 30 meters. Water quality test results of these wells (Table 2) showed that raw water quality is within the limits of the 2007 Philippine National Standards for Drinking Water (PNSDW). Iron and total dissolved solids limits of the 2007 PNSDW are 1.0milligrams per liter (mg/l) and 500mg/l, respectively. Hence, expected water quality of the proposed wells will therefore be within the limits of the 2007 PNSDW since raw water quality is already within the limits of the standards. The 2007 PNSDW is the applicable standard for drinking water in this IEE since it is more

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stringent than the World Health Organization (WHO) Guidelines for Drinking-Water Quality (2008). An additional new well will supply the expansion areas covering Barangay Taysan, Lamba and Maslog. This independent system is about 4 kilometers away from the existing network. The additional well with a capacity of 1,720 cumd will augment the existing well source (400 cumd) to address the 2025 water requirement of Barangay Taysan. A new well will also be constructed for Barangay Banquerohan. These pumping stations will not cause over pumping of groundwater since the recommendations on the sizes of pump and motor to be installed in the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. Groundwater recharge rates have been factored into the determination of appropriate drawdowns and sustainable well yield. There is therefore no likelihood that the project will cause over pumping of groundwater that could lead to ground subsidence..

Table 2: Bogna and Mabinit Wells Data Total Dissolved Depth Iron Capacity Well No./ Location Solids (m) (mg/l) (lps) (mg/l) Bogna Well No.1 30 nil 203 10.71 Bogna Well No. 2 30 nil 202 7.62 Bogna Well No.4 34 1.0 373 11.75 Bogna Well No. 5 25 nil 317 14.57 Bogna Well No. 6 25 nil 406 19.60 Bogna Well No. 8 26 nil 241 15.58 Mabinit Well No. 2 25 nil 334 6.64 Mabinit Well No. 3 26 1.0 367 6.57 Mabinit Well No. 6 30 .30 397 10.94 Source: Poyry-IDP Consult. 2009. Subproject Appraisal Report: Legazpi City Water District. ADB TA7122-PHI. Manila.

14. Storage Facilities. For the main system, no additional storage facility is recommended if the additional water source is tapped from existing and new well sources at Bogna and Mabinit well field. The expansion areas will require new storage facilities. An elevated steel reservoir with a capacity of 300 m3 will be constructed for Barangay Taysan. An elevated steel reservoir with a capacity of 200 m3 will also be constructed for Barangay Banquerohan.

15. Pipelines and Service Connections. For the main system, reinforcement pipes are recommended at various sections of the distribution network to accommodate the 2025 flow and minimum pressure requirement within LCWD’s main service area. New pipelines will also be laid for the expansion areas in Barangays Taysan, Maslog, Lamba, and Banquerohan. The number of service connections is expected to increase by 7,995. This number will come from the unserved portions within the main service area and the 4 barangays in the proposed expansion areas.

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Figure 2

SCHEMATIC DIAGRAM OF PROPOSED LEGAZPI CITY WATER SUPPLY SYSTEM Table 2: Bogna and Mabinit Wells Data

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16. NRW Reduction Activity. Non-revenue water (NRW) is the volume of water that goes into the system but does not generate revenue. Included are wastage, leakage and consumptions from illegal connections as well as water used for fire fighting purposes and under-registration of meters. Unaccounted-for-water has already decreased to 21% with the completion of NRW activities in July 2009. This value is expected to further decrease as the present system facilities and operation are improved. Funds will be provided to purchase operational systems and equipment designed to manage and control NRW.

17. Water Supply Project Cost. The cost estimate was based on the 2009 in-placed cost of waterworks materials and facilities of LWUA and on submitted quotations from suppliers. The total project cost is estimated to be PHP117.191 millions. The annual operation and maintenance costs include manpower, power, chemical, maintenance and miscellaneous costs. By 2015, the total annual operation and maintenance costs will be PHP134.225 millions and PHP165.824 millions by 2025.

18. Implementation Schedule. Physical implementation will start in 2012 with construction activities for re-commissioning of 9 existing wells at Bogna and Mabinit well fields, and the construction of deep well, pumping facilities, storage facilities and transmission/ distribution pipelines and service connections at Barangays Taysan, Lamba, Maslog and Banquerohan as shown in the Figure 3.

Figure 3: Implementation Schedule CONTRACT DESCRIPTION 2011 2012 2013 2014 2015 2016 2017 2018 TOTAL WATER SUPPLY Source Facilities 0% Wells 100% Spring Pumping Station 100% 100% Water Treatment Plant 0% Transmission Facilities 50% 50% 100% Storage Facilities 50% 50% 100% Distribution Facilities 0% Service Connections 100% 100% Fire Protection Facilities 0% Pressure Reducing Valves 0% NRW Reduction 54% 34% 12% 100% Zone Meters 0% Internal Networks 0% Stored Materials 0% Resettlement Cost Land Acquisition 100% 100% Detailed Engineering Design 100% 100%

IV. DESCRIPTION OF THE ENVIRONMENT

19. A brief description of the existing environmental and socioeconomic conditions of the LCWD subproject influence area is presented in the following subsections:

A. Physical Resources

20. Legazpi City is located in the midsection of the eastern side of the Province of Albay and in the center of the Bicol Region. It is bounded on the north the Municipality of Sto. Domingo, on the east by the Albay Gulf and the Municipality of

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Manito, on the west by the Municipality of Daraga, and on the south by the Municipalities of Pilar and Castilla of the Province of . The city is approximately at 13º 09´ N latitude and at 123º45´ East longitude and is about 534 kilometers southeast of Manila via the Philippine-Japan Friendship Highway.

21. Topography. Legazpi City is generally flat at its Central Business District and the urban area with slopes ranging from 1% to 7% but with some areas exceeding 18%. Several barangays have slopes ranging from 23.7% at Dapdap and up to 99.8% at Bañadero. The northeastern portion of the City has an average slope of about 21% with rolling and undulating areas. The northern barangays have undulating terrain with an average slope of 11.6% and its southern portion is characterized by rolling mountains except for Barangay Bagacay where its marshlands are below sea level.

22. Geology and Soils. Legaspi City is underlained with alluvium at the coastal low- lying area, pyroclastics debris at the slopes of Mayon Volcano, and sedimentary rocks at the southeastern boundaries. Recent alluvial deposits constitute the plain extending from the lower slopes of Mt. Mayon towards the Legazpi Gulf. The alluvium constituents are of volcanic origin coming from the slopes of Mayon Volcano. Thickness of the alluvial sequence is unknown. Top layers of these deposits appear to consist of dark silty sands. Superficial deposits are recent volcanic deposits and mainly composed of andesitic sands, gravel, silts, and rounded cobbles and boulders. Near Barangay Taysan is underlain by the Camalig Limestone, a Middle Miocene Formation formed by a discontinous series of hilly and massive, karstified limestone which overlies the Bicol Coal Measures. Soil types of Legazpi City are: Legazpi Fine Sandy Loam, Legazpi Fine Sandy Loam-stony phase, Bascaran Clay, Annam Clay Loam, Louisiana Clay, Hydrosol, Mountain Soil undifferentiated, Lava Flow, Mayon Gravelly Sandy Loam.

23. Water Resources. LCWD obtains its water supply from groundwater through wells and springs, and from surface water. Present main source is the Yawa River with filtered water supplied by a bulk water provider. Prior to the utilization of the bulk surface water source, LCWD utilized groundwater from 18 wells and 10 springs with a combined discharge of 289.4 l/s (25,000 cumd). It is estimated that the year 2025 water demand of 370 liters per second (lps) (32,000 cumd) can be obtained entirely from the Yawa River or from combined surface and groundwater sources.

24. The Yawa River flows across the Legazpi-Daraga area. It originates from the western and southern slopes of Mayon Volcano and flows eastward before emptying into the Albay Gulf. The drainage area at the gauging station located 500 meters upstream of the bridge on the Legazpi City – National Road is 60 square kilometers. Flow was measured at 2,800 lps (241,920 cumd) in 2007. Short-duration flow records from 1980–1988 revealed minimum monthly flow of 1,538 lps (132,883 cumd) and maximum monthly flow of 12,485 lps (1,078,704 cumd). Raw water of Yawa River needs treatment since its color, turbidity, magnesium, iron, and manganese concentrations have exceeded NSDW’s permissible limits. Groundwater in the general area of Legazpi City is utilized through wells and springs. Small to large capacity springs exist on the southern slopes of Mayon Volcano. A total of 10 individual and group of springs, with combined discharge of 136.82 lps (11,821 cumd), was used to support part of the water requirements of the LCWD.

25. Nineteen wells have been drilled for the LCWD in Barangays Bogna, Mabinit, Bigaa and Legazpi City Proper. Barangays not served by the existing water supply system obtain their water requirements from springs and small diameter wells drilled to shallow depths, while commercial, industrial establishments and some private individuals have their own wells. Wells in Barangays Bogna are located in the

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southeastern slopes of Mayon Volcano at elevation of about 90 mamsl. These are in aquifers with medium to very good yielding properties and with static water levels in the range of 1.06 to 4.04 mbgl. Specific capacity range is 1.07 to 6.96 lps per meter of drawdown, while transmissivity is from 1.20 to 25.10 x 10-3 m2/s. Wells in Barangays Mabinit are in aquifers with good to very good yielding properties with static water levels in the range of 0.67 to 4.05 mbgl. Specific capacity range is 2.76 to 5.56 lps per meter of drawdown, while transmissivity is from 6.61 to 52.10 x 10-3 m2/s. Georesistivity survey in 2006 revealed potential aquifer in the Bogna and Mabinit wellfields down to a range of 43.5 – 135.2 meters.

26. Spring sources of LCWD are located at elevations of 76–100 meters above mean sea level (mamsl). These springs used to serve the northeastern barangays extending to the Port of Legazpi City. However, Typhoon Reming in 2006 destroyed some of the spring boxes and most of the collector canals. Significant reduction of spring flows was observed after the typhoon and new springs were observed in the area. At present only 6 of the springs are being used to support the water requirements of about 1,000 households in Barangays Upper Arimbay, Bigaa and Bagong Abre. Water quality of springs is good, while that of some deepwells is not as good due to higher values for color, turbidity, and iron.

27. Climate. The climate of Legazpi City is classified as Type II of the Modified Coronas Classification of the Philippine Climate which is characterized by the absence of a dry season with a very pronounced maximum rain period generally in the months of December and January. There is not a single dry month in this area. It rains about 250 days a year in Legazpi City with an average total annual rainfall of about 3,200 mm. On average, 5 to 6 tropical cyclones blow over the area annually. The average minimum temperature which usually occurs in January and February is about 24ºC and the average maximum temperature which usually occurs in May is about 31ºC. 41 of its barangays are flood prone due to high rainfall. Very heavy rains can result to mudflows from Mayon Volcano. As a result, 11 barangays are subject to both flooding and mudflows.

28. Air Quality and Noise. There are no available air quality data specific to the areas where subproject components will be constructed. However, based on the consultant’s experience on air quality measurements of similar rural setting in the Philippines, the expected average ground level concentrations of total suspended particulates (TSP) would be close to the indicative value of 65 ug/Ncm. Similarly, there are no actual data on the present noise levels of this area. Again, based on the consultant’s experience on noise measurements of similar rural setting in the Philippines, the expected noise levels along the inhabited areas would be between 42 to 48 dB(A) for the daytime, while those in the farm areas would be less than 40 dB(A). In areas where there is higher vehicular traffic volume noise levels could reach as high as 54 dB(A).

B. Ecological Resources

29. Water Supply System. The proposed water supply system will mostly involve the re-commissioning of existing wells and other structures (Photo No.1) in Barangays Bogna and Mabinit. These are located in agricultural landscapes with residential areas dominated by coconut groves. Occasional fruit trees such as mangoes and bananas are also present. The proposed site in Barangay Taysan has similar ecological setting (Photo No.2). All three barangays are classified as rural barangays.

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30. Except for the facilities to be re-commissioned, the technical team only identified at this stage of the subproject study the general areas for the proposed pipelines, deepwells, and reservoirs. The exact locations will be confirmed during detailed design. The environment specialist visited the proposed locations of the subproject components in order to present appropriate descriptions of the ecological settings. Areas beyond the road corridors are basically cultivated strips of land. Devoid of forested areas, the road corridors and immediate environs are unlikely habitats for large wild animals, rare or endangered species. Farm and domesticated animals are therefore the large faunal species such as cows, water buffaloes, goats, pigs, house cats, and dogs.

31. An important fact to consider is that the sites are not within undisturbed landscapes. These are located in agricultural landscapes with residential areas and roads that have been functional for a very long time already. Hence, over the years the ecological changes due to human activities in these areas resulted to the present residential and agricultural landscapes. Houses, school buildings, and other community structures are good indicators that indeed this area has long been transformed into the present landscape.

C. Economic Development

32. City Income and Expenditures. Legazpi City is a 1st class City and is the Capital of Albay Province. From the 2006 City Accomplishment Report provided by the City Planning and Development Office, the average annual revenue of the city over the period of 3 years from 2006 to 2008 was PHP419,686,819. Over the same period, it had an average obligated amount of PHP395,391,055 for an annual average surplus of PHP24,295,763. Its largest revenue came from its Internal Revenue Allotment which averaged PHP246,933,518 per year or 59.0% of the City’s annual revenues over this 3-year period. In terms of obligation by sector/services, general public services took the lion’s share of obligated amounts with an annual average of PHP217,078,610 or 55.0% of the annual average amount obligated. Economic Services, 20% Development Fund, and Health Services followed a distant 2nd, 3rd, and 4th places, respectively.

33. Land Use. In 2003, Legazpi City still had a forested area of 864.7 hectares. It also had a large grassland/pasture of 4,656 hectares or 22.8 percent of the city’s land area of 20,420.40 hectares. About half of the city’s land area (10,411.48 hectares or 50.99%) was devoted to agricultural and the built-up area totaled 3,287.19 hectares or about 16.1% of the land area. The remaining 1,100 or so hectares were used for special uses such as mining/quarrying, national park, airport, and military.

34. Commerce and Trade. In 2006, a total of 2,543 business establishments were registered in Legazpi City. A total of 2,351 establishments belonged to the services sector most of which were wholesale and retail trade. There were 257 hotels and restaurants and 223 health and social work establishments. In the industry sector, of the 166 registered establishments, 96 were into manufacturing and 61 were into construction. There are a total of 29 banks comprising of 11 Commercial banks, 2 Government banks, 3 Rural Banks, 5 Savings banks, and 8 Unibanks. In addition, there were 95 Non-bank financial intermediaries. These were 9 financing companies, 12 lending investors, 3 savings and loans associations, 47 insurance companies, and 24 pawnshops.

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35. Agriculture. In 2007, agricultural land accounted for about 48.0% (9,755.14 hectares) of the total land area of the city. In the urban barangays, there were 115.25 hectares of agriculture land which was only 5.8% of the urban land area. In the rural barangays, 55.0% (9,639,89 hectares) of the land area was dedicated to agriculture. About 31.6% of the agricultural land was devoted to crops such as rice, corn, root crops, vegetables, legumes, fruit trees, and industrial crops. Rice and corn were planted in 1,231 hectares of which 708 hectares were irrigated and the remaining 523 hectares being rain-fed or planted to upland rice. Coconut trees were planted in 6,747 hectares or 33.0% of the city’s total land area, national park included. Bananas were planted in almost 300 hectares and fruit vegetables were planted in 190 hectares of land. Leafy vegetables were planted in about 100 hectares. Industrial crops include pili, coffee, cacao, bamboo, anahaw, nipa, and sugarcane.

36. Tourism. The famous Mayon Volcano with its nearly perfect cone shape is a tourism interest. It stands at 8,189 feet with a base of about 10 kms. radius. The Department of Tourism schedules annual hiking activity on the slopes of Mayon Volcano. There are two hills which attract tourists, namely the Kapuntukan Hill and the Ligñon Hill. The Kapuntukan Hill gives a beautiful vista of Legazpi City at night as well as the neighboring Municipalities of Manito and Rapu-Rapu. Ligñon Hill, on the other hand, offers a good view of Mayon Volcano and the city as well.

37. The beaches called Puro White Beach, Bagacay Beach, and Porta Azul offer good facilities and are good places for swimming, boating, scuba diving, fishing, and speed boat racing. The Fluvial Procession is a colorful activity in Legazpi City. It is a traditional procession at the Albay Gulf by the residents of Barangays Sabang and Pigcale. The image of the Patron Nuestra Señora de Penafrancia is placed on a decorated motorized banca or kumpit and paraded in a procession. The Ibalong Festival is a week-long celebration designed to enhance development in the region specifically to promote tourism in Legazpi City. The centerpiece of the whole event is a Mardi Gras-style street presentation featuring the characters of the Ibalong epic.

38. Existing Water Supply System. Presently, LCWD obtains most of its water requirement from the Yawa River through a bulk water supply contract with another company. Raw water is abstracted from the river and sent to a water filtration plant. The plant has a capacity of around 30,000 cumd with current production at 18,500 to 20,000 cumd. LCWD has on standby 10 wells in Barangay Bogna and 5 wells in Barangay Mabinit. At present, only six springs are in operation to support the water requirement of 1,000 households in Upper Arimbay, Bigaa and Bagong Abre.

39. Total length of the existing transmission pipelines is 23 kilometers consisting of uPVC, steel concrete coated and HDPE pipes with diameters ranging from 100mm to 300mm. The bulk water supply is currently utilizing the existing 300mm transmission pipeline connected to the Bogna and Mabinit well sources. LCWD has replaced old GI and steel pipes with uPVC pipes which now accounts to 95% of the total transmission/distribution network. The distribution network has approximately 50 kilometers of pipelines using GI and uPVC pipes with diameters ranging from 50 to 150 mm. There are 50 existing valves of various sizes ranging from 50 to 150 mm diameters and 40 fire hydrants strategically located in the city proper. Nine storage facilities are currently in operation.

40. Existing Water Supply Service. LCWD operates a water supply system serving an estimated 87,000 people with a total of 16,934 active connections as of May 2009 in the city’s 53 barangays out of 70. Data on present water service situation in Legazpi City were generated by a WDDSP household survey using stratified random

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sampling with three hundred eighty five (385) respondents. Survey was conducted on groups with pipe water connection and those without. About 55.3% of survey respondents had piped water connection with the LCWD. Women had access to service; 57.6% of connections were under female-headed households while 54.5% were under male-headed households. Average consumption was 19.7 cubic meters. Of this, 11.7% provided water to neighbors or relatives; this is apart from sharing that often occurred where there were multiple families in a household; survey showed that 62.5% had only one household using LCWD connection.

41. Issues on sufficiency were indicated for certain areas although 96% claimed they had water 24 hours a way; additional sources were cited as private shallow wells (44.4%) for other domestic uses; purified water refilling stations were the source of drinking water for 11% with a 7.1 average volume of usage and an average cost of P16.75 per day; 1.4% used pump to increase water pressure. While overall, 59.3% assessed that water received from piped connection was sufficient for their needs, Ratings for aspects of water service: water pressure was considered poor (7%), though 82.6% of respondents perceived it to be adequate. However, an improvement in water availability was noted during the rainy season with 100% indicating that water was available everyday during the rainy period. Continuity of water supply was rated poor by 2.3% with 68.7% saying it was “good”.

42. The main issues raised were on water quality and water rates. Aspects of water service that households would like improved were: water pressure (6.5%), reduction of water rates (31%), complaints handling (9.3%), repairs (10.3%), quality of water (35%) and billing and maintenance at 7%. Aspects of water quality that were at issue were taste (21.5%), color (26%) and smell (12.7%). Overall, 16% were extremely unsatisfied with water quality. Boiling of drinking water was the only treatment (18.3%) reported by connected households.

43. Fourty-four percent (44.4%) of non-connected respondents got water from a household piped connection with LCWD; in addition, 90.2% reported paying for supply of piped water from another’s connection. The most common source was private shallow wells at 49.7%; less common were private deep wells at 9.6%; a significant percentage relied on water vendors at 22.2% while 6.3% got water from public faucets. Female-headed households relied on shallow wells (50%) for most of their drinking, bathing, cooking, cleaning and gardening needs, but also used public faucets (2.4%) and deep wells (7.1%) more than their male counterparts (0% and 0.8% respectively); female-headed households relied on water vendors at a higher rate of 14% compared to 7.5% by their male-headed counterpart. Private shallow wells led as a source for bathing (64%) and for gardening (68.2%) as well as for cooking (50.2%). Alternative water sources were available. Close to 90% of non- connected households assessed water from current sources to be sufficient all year round.

44. Collecting water are usually done by male household members at 57.2% using pails or open containers (71.4%); about 84% spent 0.5 – 1 hour per day, collecting anytime water was needed. Bathing had the highest water use per household at an average of 51.61 gallons per day, followed by cleaning (38.06), gardening (11.83), cooking (7.17) and drinking (3.97). Women (17.1%), anyone available (20.4%), and children (5.3%) also fetched water.

45. Transportation and Communication. Legazpi City can be reached by road, sea, and air. It is about 534 kilometers southeast from Manila by the Philippine-Japan Friendship Highway, an all-weather highway. It has several entry and exit points. It is connected in the northeast through the Municipality of Sto. Domingo, while in the

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LCWD 12 southeast through the Municipality of Manito. The Municipality of Daraga connects it in the northwest and all the way to Manila through.

46. In 2006, the City had a total road network of 196.19 kilometers of which 54.95 kms. (28%) were national roads, 40.71 kms. (21%) were city roads, 85.97 kms. (44%) were barangay roads, and 14.56 kms. (7%) were subdivision or private roads. A majority of these roads were concrete (69%), 9% were topped with asphalt, and 20% were gravel and earth roads. There were 17 bus companies providing passenger service to and from Metro Manila and 28 bus companies provided passenger service along the Naga-Legazpi-Tobaco route including service to the Province of Sorsogon and the Visayas. Separate terminals are available for buses and jeepneys.

47. Legazpi City has a base port designated as a principal port because of the volume of trade, and the available direct land transport services. The Legazpi City Base Port has a 339 meter long X 30 meter wide wharf, and a RORO facility which is 105 meters long X 15 meters wide RC pier with a 10-meter long X 5-meter wide ramp. The Legazpi City Airport is the only trunk line airport in the Bicol Region. It has a concrete runway of 1,974 meters and can accommodate medium-sized planes like the Boeing 737. However, the airport operates only at daytime. It handles 6 flights daily by 2 airline companies, namely: the Philippine Airlines (PAL) and Pacific.

48. Bayantel and Digitel provide wired telephone services and have a combined capacity of 19,554 connections. Both companies also provide services for telegraph and telex, serve as international gateway facility (IGF) operators, and extend services for international long distance calls. Sun Cellular/Digitel Mobile, Globe Telecom, and Smart Communications, Inc. provide cellular phone services through 7 cell sites located all over the City. In 2006, the City had 19 NTC-accredited mobile phone service centers and 16 NTC-accredited mobile phone dealers or retailers.

49. Power Supply. As of 2006, the entire City was almost covered by electric power. Of the 33,042 potential household customers of the Albay Electric Cooperative, Incorporated II (ALECO II), 31,348 or 95% were already enjoying the benefits of electric power. The urban barangays were already completely served and only far- flung areas were not served. However, electric service left much to be desired as frequent power outages were experienced.

D. Socio and Cultural Resources

50. Population and LCWD Service Area. Legazpi City has a 2007 population of 175,843 with 35,290 households according to National Statistics Office (NSO) Census. Urban population accounts for 108,249 which is 61.56% of the total population, while the rural population accounts for 67,594 which is 38.44% of the total population. The annual growth rate is 1.63% based on the 2000 and 2007 population data. It has 70 barangays and a population density of 870 persons per km2. The present franchise area of LCWD is the whole of Legazpi City. The franchise area covers the 70 barangays while the existing service area encompasses only 53 barangays. The served population of the WD is concentrated in the Poblacion area where the middle and high-income groups of the population and most commercial and institutional establishments are found.

51. Public Health and Sanitation. Hospitals and clinics provide secondary and tertiary health services in Legazpi Ciy. It has one government-owned hospital, 6 private hospitals, 26 government clinics/other health centers/stations, 52 private

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LCWD 13 clinics/other health centers/stations, and 12 diagnostic laboratories. There are also 25 Barangay Health Stations – one for each rural barangay. Diarrhea (all forms) is the second leading cause of morbidity in 2008 with 2,802 reported cases according to the City Health Office. The NSO 2000 sanitation data revealed that only 57% of total households had septic tanks. Presently, the city has no sanitary sewer system.

52. Education. Legazpi City has 6 schools offering tertiary level education only and 4 schools offering both high school and college education. The government provides secondary education through 4 high schools and offered tertiary education through only 1 university – the Bicol University. During the school year 2006-2007, Legazpi City had a total of 32 private schools in operation and 45 public schools in operation at all levels. Three private schools offered only pre-school education, 5 schools offered only pre-school and elementary education, 5 schools offered education from pre-school up to high school only, and 3 schools offered the full course from pre- school up to tertiary level education. Only 1 school offered both elementary and high school education only, 2 schools offered high school education only.

53. Socioeconomic Survey. WDDSP conducted a household survey to get a good insight into the socioeconomic situation specific to the project area. Using stratified random sampling, three hundred eighty five (385) respondents were interviewed for a 95% level of confidence and standard deviation of 0.1. Based on this survey, average household size was 5.68 with 32.2% having 5-6 members. Almost twenty-six percent were women-headed households in Legazpi City. Highest grade of household head was high school (33%) level while 30% completed college or higher. Respondents were distributed under a wide occupational range including farming, business, street vending, and government and private employment. Unemployment and dependency rates were high among the survey sample; 13.3% was unemployed and 14.1% were temporary labourers; there were 1-2 dependents below 14 years old for 43% of respondents; there were another 21.3% with 3-4 members below 14 years while there were 21.3% of respondents with dependents above 65 years old.

54. Average monthly income was P11,094. Some 25% had incomes of less than P5,000 and another 35.8% had an income range of P5,000 – P9,999 or just along the poverty threshold for Legazpi. Estimated poverty threshold was a household income of about P8,668, computed from the official annual per capita poverty threshold for Albay for 2007 which was pegged at P18,343. About 22.2% spent between P10,000-15,000 per month while most (36.8%) spent about P5,000 – P9,999 per month. Over 65% were unable to save while most of those that could had less than P1,000 (20.5%) in savings per month. Television (85.2%), cellular phones (73.2%) and refrigerators (49%) were the most common valuable items of the household.

55. Over 74.8% of the 385 sample households had water-sealed pour-flush toilets with septic tanks but consultations indicate that many would be old and not built to standard. WD-connected households were more likely to have water-sealed toilets with septic tank at 91.5% as against 54.1% for non-connected. The next most common type of toilet system was pour-flush toilet connected to the drainage system at 8.3%; at least 7.8% shared a toilet while 2.6% had water-sealed pour-flush connected to a pit; some. 3.1% did not have toilets. Overall, 83.6% were satisfied with their current toilet system. Those that were not complained of backflow resulting in foul odor and inconvenience (42.1%). About 27.5% of households wanted to improve their septage system, 45.3% of which preferred desludging of septic tank. All survey respondents reported washing hands before cooking, before eating, after using the toilet, before breastfeeding, before feeding children, and after washing the children after toilet.

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56. Non-connected households transported water from source using open (71.4%) and closed containers (16.2%) or a combination of both (5.2%). Transport of water through a hose or pipe connected to a neighbor’s water system was practiced by 7.1% of the 154 non-connected cases; 6.4% of 171 cases had at least one member who suffered from a water-related disease during the past year and 5.3% of households had at least one child who had suffered from diarrhea. About 14.1% of households treated drinking water through boiling. On the other hand, 12.6% of households with WD connection had at least one member who had suffered a water- related disease in the past year.

57. Respondents sought medical services primarily from public facilities such as medical centers (35.8%), government hospitals (23.4%), and from private hospitals (11.3%) and private clinics (18.4%). While 85.2% of survey respondents were satisfied with available health services in their locality, men were slightly more satisfied than women. 79.4% of both female and male-headed households had access to Philhealth or had assistance on health expenses; 2.9% relied on self- medication.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

58. A comprehensive screening for environmental impacts is made through a review of the parameters associated with water supply projects against the components of the proposed LCWD subproject and the environment where the facilities will be located. A screening checklist was developed from various sources such as DENR checklists, ADB’s “Rapid Environmental Assessment (REA) Checklist, and WB Environmental Source Book. Some items of the checklist may not be applicable to this particular subproject. However, they are included in the discussions to indicate that their applicability was reviewed in the environmental impact screening process. This will help identify which topics do not require further attention.

59. The assessment is made on the following phases of the subproject: (i) Pre- construction, (ii) Construction, and (iii) Operation and Maintenance. Results of the environmental impacts screening are summarized in Table 3, while the discussions of each issue are presented in the succeeding sections. In Table 3, impact types and magnitudes are indicated for both impacts without the mitigating measures and the resulting situations when mitigating measures will be implemented. A summary of the environmental impacts that should be carried to the section for Environmental Management Plan (EMP) is presented at the end of this section as Table 4.

60. Environmental impacts arising from decommissioning of facilities were also reviewed but are no longer further discussed due to the following: (i) decommissioning of facilities is a remote possibility since these will serve growing urban areas and such facilities are critical for sustaining those areas, (ii) residual waste cleanup is not a major concern since the facilities are not industrial manufacturing plants with potential problems for toxic and hazardous wastes, and (iii) solid wastes from decommissioning is also not a major concern since the structures are mostly made of reinforced concrete and the solid wastes are mostly recyclable materials such as broken concrete materials, reinforcing steel bars used in the structures, structural steel, roofing materials, electrical wires, etc.

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Table 3: Summary of Environmental Impacts Screening for LCWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Encroachment to environmentally sensitive areas na na Impacts and risks to biodiversity conservation na na Encroachment to historical areas and cultural areas ∆ − ∆ Potential competing use of water resource ∆ − ∆ Potential nuisance and problems to the public  − ∆ Loss of assets (IR concerns) na na

CONSTRUCTION PHASE Modification of construction site topography ∆ − ∆ Removal of Trees ∆ − ∆ Displacement of Rare or Endangered Species na na Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Oil and other hazardous materials releases ∆ − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Noise and air pollution of pumping stations ∆ − ∆ Ground subsidence due to over-pumping  − ∆ Pumping stations operational risk and safety  − ∆ Increase employment opportunities ∆ + ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

A. Design/Pre-Construction Phase Considerations

61. Encroachments. Subproject’s components will not be located in areas that are environmentally sensitive and areas with historical and cultural importance. As described in the environmental baseline, the proposed sites for LCWD’s water supply system in Barangays Bogna, Mabinit, and Taysan are residential and agricultural landscapes dominated by coconut groves. Most areas immediately adjacent to the road where pipelines are to be laid are already occupied by residential and other structures, while areas beyond the road corridors are basically agricultural land. There are no known archaeological and cultural assets in these sites. Nevertheless, precautions will be taken to avoid potential damage to any archaeological and cultural assets by inclusion of provisions in tender and construction documents requiring the contractors to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

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62. Impacts and risks to biodiversity conservation. The issue on impacts and risks to biodiversity conservation is not applicable to the LCWD subproject’s since its components will not be located in areas that are environmentally sensitive. The sites are not in undisturbed landscapes and over the years the ecological changes due to human activities in the area have resulted to the present residential and agricultural landscapes.

63. Competing Use of Water Resource. Problems on competing use of groundwater resources are not expected since LCWD shall apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict. In the issuance of water rights, NWRB will ensure that groundwater resources are appropriately allocated.

64. Nuisance and Problems to the Public. Potential nuisances and problems to the public during construction of the LCWD subproject can best be avoided if proactively addressed during detailed design and pre-construction phase. Consultation and information dissemination to potentially affected people shall be done during detailed design. Tender documents shall include provisions addressing potential nuisances and problems to the public during construction. These include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience. In addition, prior to site works, the contractor shall coordinate with the appropriate agencies in the procurement of required clearances with regard to electricity, telephone lines and other utilities/structures that may be affected by construction activities. These shall all be reflected in the construction contracts.

65. Loss of Assets. No issues on involuntary resettlement are identified at this stage of the project and there is no need to conduct an inventory on potential loss of assets. The Resettlement Specialist did not consider the preparation of any resettlement document for the LCWD subproject.

B. Construction Phase Environmental Impacts

66. Site Preparation. Construction of the LCWD’s pumping stations, pipelines, and reservoirs will not involve modification of the construction site topography. Water supply pipelines will follow as much as possible the existing site contour. This issue is therefore considered not significant. Removal of trees will not be an issue due to the following: (i) pipelines will mostly be laid in trenches along the right-of-way of existing roads, and (ii) areas required for pumping stations and reservoirs are relatively small. The issue on displacement of rare or endangered species is not applicable to the LCWD subproject since there are no known rare or endangered species within the proposed sites of Barangays Bogna, Mabinit, and Taysan.

67. Soil Erosion and Sediment of Construction Sites. During rainy periods, exposed soil at the construction site can easily be washed away by runoff and carried to the natural drainage system. Hence, soil erosion of the construction sites could occur if preventive measures are not instituted.

68. Mitigation. Control of the surface runoff is necessary in preventing erosion. The contractor shall be required to use structural erosion prevention and sediment control practices which will divert the storm water flows away from the exposed areas, prevent sediments from moving offsite, and reduce the erosive forces of runoff waters. These may include the following: (i) interceptor dikes, (ii) pipe slope drains,

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(iii) straw bale barriers, (iv) sediment traps, and (v) temporary sediment basins. Whenever possible, total exposed area shall be minimized.

69. Nuisance/ public inconvenience in pipelaying. Public inconvenience could arise in pipelaying works due to prolonged period of water supply service interruptions. Dumping of construction materials and solid wastes in watercourses will also cause nuisance to the public aside from affecting water quality and the flow regime.

70. Mitigation. The construction contractor shall be required: (i) to do installation or replacement of pipes within the shortest time possible to minimize water supply cut- off periods and/or use of night time schedules, as well as announcement of water supply interruptions two to three days prior to actual cut-off; and (ii) not to dump earth, stones, and solid wastes in watercourses to avoid adverse impact on water quality and flow regime.

71. Construction Noise. Potential sources of noise are the construction equipment, such as trucks and other equipment, which can generate noise of 80 dB(A) from a distance of 30 meters. Loud noise sources such as blasting are not expected in the construction activities of the LCWD subproject.

72. Mitigation. Nuisance from equipment noise can be mitigated with the use of sound suppression devices for the equipment. In areas near any house or noise- sensitive sites, noisy equipment shall not be operated during nighttime to early morning (22:00H – 06:00H). Noise levels due to construction activities should not exceed 50 dB(A) near schools, 55 dB(A) in other areas, and 45 dBA during nighttime. Workers using noisy equipment shall be provided with ear plugs.

73. Local Air Pollution Due to Construction Activities. Dust generation from trenching, earthworks, and soil preparation activities during dry periods will be an air pollution problem. Intermittent episodes of air pollution from smoke belching equipment may also occur. This issue is considered significant during dry periods. Another potential source of air pollution are large stockpiles of construction materials such as soil and aggregates. Without any mitigating measures, dust generation could be significant during dry periods.

74. Mitigation. The contractor should be required to perform regular water spraying of the sites during dusty periods in order to reduce the generation of dusts. He will also be required to use equipment that are properly maintained and are not smoke belchers. Covers for stockpiles that will be left idle for a long time shall be required. Covers will prevent dust generation due to wind action. Trucks transporting loose construction materials such as sand, gravel, spoils, and the like shall be provided with tarpaulin cover.

75. Oil and other hazardous materials releases. Heavy equipment and vehicles will be used in the various construction activities for the LCWD subproject. Aside from fuel, oil, and grease, the activities may also involve the use of paints and solvents. Although there is potential for accidental releases of these materials, the issue is not considered significant since expected quantities will be relatively small. However, as part of good construction practice, the contractors will be required to implement an awareness program for all workers regarding the prevention and management of spills and proper disposal of used containers. Fuel and oil shall be stored in a designated secured area provided with an impermeable liner to prevent the accidental spills from seeping into the ground.

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76. Vehicular Traffic Congestion and Public Access. Construction activities, such as pipelaying, may cause traffic congestion in heavily traveled roads and narrow streets. It may hinder public access. In the LCWD subproject, pipelaying along the roads in the busy districts of Legazpi City is expected to cause traffic congestion since there are lots of vehicles using these areas. Installation of secondary pipes crossing the road to the other side may cause the temporary closure of half the road and will lead to traffic congestion. This issue is therefore considered significant.

77. Mitigation. Contractors shall be required to: (i) prepare a traffic plan; (ii) closely coordinate with local authorities for the closure of roads or rerouting of vehicular traffic; (iii) consider the schedules of local activities with heavy presence of people such as festivities, processions, parades, etc. in the timing of construction activities; (iv) do proper stockpiling and immediate disposal of spoils to avoid nuisance and traffic/access obstruction; and (v) do immediate restoration of roads and other areas affected by pipe laying, construction activities and vehicles.

78. Hazards to public due to construction activities. Construction activities, such as pipelaying, along the roads may result to hazardous driving conditions since vehicles would still be using the road while construction activities are ongoing. The movement of construction vehicles and excavations would pose some hazards to the driving public. There is also risk of people falling down in open trenches since pipelaying trenches are normally left uncovered until pipeline testing is completed.

79. Mitigation. The contractor shall be required to implement a road safety plan incorporated in his construction schedule. Safety measures shall be implemented including: (i) warning signs to alert people of hazards around the construction sites, (ii) barricades, and (iii) night lamps for open trenches.

80. Pollution and Health Risk due to Workers Camp. The contractor is expected to erect temporary workers’ camps during construction of the subproject. Improperly managed silt runoff and sanitary wastes from these camps may reach nearby areas. Poor sanitation and lack of proper solid waste management at the worker’s camp will provide the conditions for vermin and other disease vectors to easily multiply and infect the workers. This may lead to the transmission of diseases from the workers camp to other areas. These conditions will increase public health risk.

81. Mitigation. The construction contractor shall be required to: (i) install proper sanitary facilities to prevent the indiscriminate discharge of sanitary wastes at the camps surroundings, (ii) implement proper solid waste management, and (iii) prevent surface runoffs from flowing into the workers camps to avoid carrying away any contaminants. The contractor shall be required to use temporary diversion drains, catch drains, and silt-traps at these camps.

82. Improper Closure of Construction Sites. Construction activities will generate construction solid wastes after completion of work. This may include used wood materials, steel works cuttings, paint and solvents containers, used oil from equipment, unused aggregates, etc. If not remove from the sites after completion of the construction activities, these solid wastes will cause aesthetic problems and some will be potential sources of contaminants for surface runoffs. This is important in the sites of proposed reservoirs.

83. Mitigation. After completion of work activities, the contractor shall be required to remove the construction wastes from the sites before finally leaving. The entire site must be free of any construction solid wastes. Implement the required surface restoration.

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84. Increase Employment Opportunities at Work Sites. Various construction activities for the pumping stations, reservoir, and pipelines will definitely require a number of workers. The impact would be beneficial and significant since employment opportunities in the area will increase.

85. Enhancement. Whenever possible, the contractor shall be encouraged to use the available local labor for these construction activities. The recruitment of workers shall be coordinated with the local officials.

C. Operation Phase Environmental Impacts

86. Health hazard due to delivery of poor water quality. Delivery of poor water quality will increase the health risk to water consumers. Threats to water quality are always present in all components of a water supply system, from the raw water sources up to the service connections. Threats of contamination in water sources may be due to the presence of bacteria, viruses, protozoa, or chemicals. This raises the need to provide a secure barrier to post-treatment contamination as the water is transported to the consumer. LCWD should therefore manage the environmental risk to its water supply system. Failure to implement the appropriate management measures may result to adverse consequences threatening public health such as the case of a microbial outbreak.

87. Mitigation. Delivery to customers of poor water quality from the deepwells and pumping stations of Barangays Bogna, Mabinit, and Taysan can be prevented in a broader scale by implementing a water safety plan as advocated by WHO. The 2007 Philippine Standards for Drinking Water (PSDW) also advocates preparation of a water safety plan. A water safety plan shall enable LCWD to (i) prevent contamination of its water sources, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re-contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the LCWD in applying best practices in ensuring delivery of potable water to its consumers.

88. For controlling microbial contamination, a hypochlorinator will be installed at each pumping stations to ensure that water will be chlorinated and adequate residual disinfection will be maintained. This device uses a feed pump to inject controlled amount of chlorine solution into the water leaving the pumping stations. This is safer that using chlorine gas. The standards for chlorine residual of the 2007 PSDW are: (i) 0.3 mg/l minimum for detection at the farthest point of the distribution system and (ii) 1.5 mg/l maximum for detection at the farthest point of the distribution system.

89. Pollution from increased generation of sewage and sullage. Increasing the water supply to the service area will also increase the generation of sewage and sullage since most of the water used by consumers will become wastewater from the toilets, kitchens, and laundry areas. This wastewater will contribute to pollution of the surrounding areas. Without a mitigating measure, this impact would be significant.

90. Mitigation. Wastewater from the toilets, kitchens, and laundry areas will normally be handled by the individual septic tanks system of the water consumers. The septic tank system will: (i) treat the wastewater and reduce the pollution potential and (ii) reduce the people’s exposure to untreated domestic wastewater. This will help in interrupting disease transmission.

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91. Noise and air pollution of pumping stations. Noise of pumping stations is not an issue for the LCWD subproject since the there will be no significant sources of mechanical noise within the stations. Potential sources of noise, such as pumps and electric motors will be housed in buildings that provide noise attenuation. Local air pollution levels will not be affected by equipment use during normal operations since the pumping station will run on electricity to be supplied by the local power company (Albay Electric Cooperative, Incorporated II). Hence, there will be no air pollution associated with fuel combustion during normal electricity supply. However, a diesel- fueled electricity generator set will be used during the occasional brownout events. This generator set will surely comply with the air pollution regulations since a permit will be secured for its use. There will be no operational activities that will cause dust generation. Mitigating measures are therefore not necessary for noise and air pollution.

92. Ground subsidence due to over-pumping. Pumping groundwater should not be done without a defining a limit to how much water can be extracted. Excessive groundwater pumping will result to continuous reduction in the groundwater level in the aquifer. This will lead to a situation where the aquifer at some point will not be able to supply water in an economical or even physical sense. This will also cause an environmental effect known as ground subsidence. It is the result of soil compression when the drop in the water level will change the soil structure. Ground subsidence can result in significant damage to properties and structures. This issue is important since all the sources for the proposed LCWD system is groundwater.

93. Mitigation. To avoid over pumping the aquifers, each well shall be operated below its safe yield. This refers to the long-term balance between the water that is naturally and artificially recharged to an aquifer and the groundwater that is pumped out. When more water is removed than is recharged, the aquifer is described as being out of safe yield. When the water level in the aquifer then drops, mining of groundwater is happening. At any rate, the recommendations on the sizes of pump and motor to be installed on the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. LCWD should monitor the groundwater level of each well to determine if continuous reduction in the groundwater level in the aquifer is occurring. WD staff are quite capable of doing this simple task since it will only use a wire to be attached to an ordinary electrical tester and lowered into the well, a common practice in the Philippine water industry. The water level below ground surface will be measured from the distance where the electrical tester indicated contact with the water level.

94. Pumping Stations operational risk and safety. The proposed LCWD pumping stations at Barangays Bogna, Mabinit, and Taysan will not inherently pose risks to the environment and people. These facilities will not use flammable materials during normal operations. Conditions of extreme conditions of temperature and pressure are not to be expected. Use of diesel-powered generators as stand-by power source is considered safe since these are equipped with safety devices and leak detection for fuel tanks. The potential source of risky situation will be the used of chlorine gas as disinfectant. Accidents may occur with chlorine gas handling.

95. Mitigation. In older water facilities, the significant source of hazardous situations is the use of chlorine gas as disinfectant. This shall be avoided in the proposed LCWD pumping stations by using sodium hypochlorite (NaOCl), the liquid form of chlorine. NaOCl is inherently a safer disinfectant. Its character can simply be put as household bleach or swimming pool chlorine.

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96. Increase employment opportunities. Operation and maintenance of the pumping stations, reservoir, and pipelines will definitely require a number of workers. The impact would be beneficial since employment opportunities in the area will increase. However, the expected number of additional workers will be small since the additional water supply facilities are not labor intensive. This impact is therefore considered less significant.

97. After screening, Table 4 lists the environmental impacts and risks that requires mitigation and shall be carried to the EMP Section.

Table 4: Environmental Impacts and Risks for Inclusion in EMP of LCWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Potential nuisance and problems to the public  − ∆

CONSTRUCTION PHASE Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Ground subsidence due to over-pumping  − ∆ Pumping stations operational risk and safety  − ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

98. During the planning phase, LCWD has undertaken various activities concerning information disclosure, public consultation, and public participation for its proposed water supply subproject under WDDSP. The intent was to achieve a meaningful stakeholders’ consultation and ensure subproject success.

99. In the course of conducting the PPTA study, information regarding the proposed water supply subproject were disclosed to the public such as a WDDSP initial survey in April 2009. It was an occasion not only for project disclosure but also for stakeholder identification and to scope issues and concerns on water. The conduct of a socioeconomic survey between April to May 2009 was also another occasion for information disclosure where some 385 households in LCWD’s area were informed about the proposed subproject and interviewed for socioeconomic data. Survey

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respondent also included those households without water service connection with LCWD.

100. Key informant interviews and focus group discussions (FGDs) with barangay and city officials were conducted to get their cooperation and gather information relative to poverty incidence and concentration, and identify needs and recommendations on water. Participants in the key informant and FGDs included the following: (i) WD staff and management, (ii) local health officials, (iii) gender focal persons of LGU, (iv) city and barangay officials, (v) LGU planning offices, (vi) local environment offices, and (vii) urban poor NGOs.

101. Public Consultation. Last 16 July 2009, LCWD conducted an initial public consultation and formally discussed the proposed water supply subproject with the stakeholders and requested their views. A total of 4 stakeholders’ representatives participated. Stakeholders were encouraged to raise their social and environmental issues. Participants included: (i) concerned individuals, (ii) barangay official, (ii) LGU planning official, (iii) EMB-DENR officials, and (iv) WD staff and management. Stakeholders expressed support to the proposed LCWD subproject. Summary of the consultation outcomes is presented in Table 5, while the documentation is presented at the annexes. Septage management was part of the consultation topics since it was a subproject component during the initial stage of the study. LCWD decided later in March 2010 to exclude the sanitation component from the subproject.

102. Future Disclosure and Consultations. A continuing process of public consultation and information disclosure shall be advocated. During detailed design, LWUA and LCWD shall again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. Views of the stakeholders will be considered in the overall design process. Stakeholders’ consultations shall be continued throughout the duration of the construction phase. LCWD shall keep records of environmental and social complaints, received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

Table 5: Summary of Consultation Outcomes Group Issues/ Concerns Raised Project’s Response Represented DENR-EMB 5; 2 LCWD has to apply for an Environmental LCWD will surely comply with attendees Compliance Certificate and a discharge existing environmental laws and permit for the proposed Septage regulations Treatment Plant from EMB-5 DENR-EMB 5 DENR-EMB 5 expressed support to the LCWD welcomed the expression proposed septage management program of support since septage will be effectively treated with the proposed septage treament plant Barangay Taysan; 1 How the water system in Barangay additional well with a capacity of attendee Taysan be improved 1,720 cumd will augment the existing well source to address the 2025 water requirement of Barangay Taysan Barangay Taysan high iron content of groundwater in the proposed new well will have Barangay Taysan and people resorted to good water quality buying drinking water from water filling stations LGU-Legazpi; 1 what LCWD is doing on the various LCWD is studying the water attendee complaints of its water quality quality issue with its bulk water supplier

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LGU-Legazpi LCWD was reminded that city government in previous meeting, the city suggested it should first improve its suggested LCWD shall do operation to deliver good quality water operational improvement while before embarking on another project the PPTA study is ongoing

VII. GRIEVANCE REDRESS MECHANISM

103. Local grievance redress mechanism is important in the implementation of the proposed LCWD subproject since any complaints and concerns of the affected people must be address promptly at no costs to the complainant and without retribution. This mechanism shall be disclosed in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc Water District Environmental Complaints Committee (WDECC) for expeditious resolutions to the complaints. Complaints during the operation phase can be brought to the attention of the LCWD or DENR-EMB.

104. LCWD Environmental Complaints Committee. LCWD shall form the WDECC to be chaired by the Water District-Project Implementation Unit (WD-PIU) head. Members shall include the following: (i) contractor’s highest official at the site such as Construction Manager or Construction Superintendent, (ii) barangay officials, (iii) concerned NGOs, and (iv) women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the civil works contract. Expeditious resolution of complaints during construction is important since activities are sometimes continuous and can easily change the landscapes within a week. For the quick filing of complaints, the WDECC shall prepare a form to be used for the filing of grievances/complaints. The use of form will also facilitate the filing of complaints by illiterate persons.

105. The steps to be followed in filing complaints and the procedures for redress are the following: (i) complainant shall provide the background and file the complaint verbally or in writing to WDECC. The WDECC secretary shall assist the complainant in filling-up the complaint form; (ii) within 2 working days, the WD-PIU head, contractor’s representative, and complainant shall discuss if the complaint can be resolved without calling for a WDECC meeting; (iii) if the complaint cannot be resolved by the WD-PIU head and contractor’s representative, a WDECC meeting shall be called with the complainant to resolve the complaint within 5 working days; (iv) if the complaint cannot be resolved, the complainant shall raise the issue to the barangay officials where barangay rules and regulations are followed for the amicable settlement of disputes at the barangay level without judicial recourse; and (v) if the complaint cannot be resolve at the barangay level, the complainant shall seek recourse with the courts. If the complaints are based on violations of the ECC terms and conditions, the complainant has an option to also bring the issue to DENR.

106. Complaints to DENR. Complaints about environmental performance of projects issued an ECC can also be brought to the attention of DENR-EMB. The process of handling such complaints is described in the Revised Procedural Manual (2007) for the IRR of PD 1586. The steps that DENR-EMB may follow in handling complaints are: (i) DENR-EMB shall verify if the complaint is actionable under P.D. 1586, (ii) within 72 hours from receipt of a complaint DENR-EMB will send the proponent a Notice of Alleged Violation (NAV) and requests for an official reply as to

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LCWD 24

why the proponent should not be penalized, (iii) DENR-EMB may conduct field validation, site inspection and verification or other activities to assess or validate the complaint. The proponent is allowed to respond within 7 days. Proponent’s failure to respond to the NAV and further notices will force DENR-EMB to take legal actions. DENR may issue a Cease and Desist Order (CDO) to project proponents which shall be effective immediately based on: (i) violations under the Philippine EIS System, and (ii) situations that present grave or irreparable damage to the environment. PD 1586 also allows DENR to suspend or cancel the proponent’s ECC if the terms and conditions have been violated.

VIII. ENVIRONMENTAL MANAGEMENT PLAN

107. This section addresses the need for mitigation and management measures for the LCWD subproject. Information includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up is presented in the implementation arrangement and discusses the roles during implementation and the required monitoring. It also outlines the requirements and responsibilities during pre- construction, construction, and operation phases.

A. Environmental Mitigation

108. Table 6 presents the information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures. Details of mitigating measures are already discussed in Section V where the need for mitigation of each impacts was determined in the screening process.

Table 6: Environmental Mitigation Plan of LCWD Subproject Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision PRE-CONSTRUCTION PHASE Excavation Potential Tender documents shall include Pipeline Part of detailed Design requirements damage to a provision that will require trenches, design cost Consultants / archaeological construction activities to be civil works LWUA Project and cultural stopped immediately upon excavations Management assets discovery of any archaeological Unit (PMU) and cultural relics and authorities will be informed promptly Social and Potential Consultation with the affected Pipelines Part of detailed LCWD PIU, community nuisance and communities regarding the routes, design cost Design concerns problems to the expected impacts and proposed reservoir Consultants / public mitigation measures of the and LWUA PMU project; Tender documents shall pumping include provisions addressing the station potential nuisances and problems to the public during construction phase CONSTRUCTION PHASE Pipelaying Soil erosion Total area exposed shall be Pipelines Incorporated in Contractor / and other and sediments minimized; use of structural routes, construction LCWD PIU, civil works of construction erosion prevention and sediment reservoir contract Supervision sites during control practices which may and Consultants rainy periods include: interceptor dikes, pipe pumping slope drains, straw bale barriers, station sediment traps, and temporary sediment basins Pipelaying Nuisance / Minimize water supply cut-off Pipelines Incorporated in Contractor / inconvenience periods and /or use of nighttime routes, construction LCWD PIU, to the public schedules, as well as contract Supervision

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision announcement of water supply Consultants interruptions two to three days prior to actual cut-off; no dumping of earth, stones, and solid wastes in watercourses Pipelaying Nuisance from Consultation with affected areas; Pipelines Incorporated in Contractor / and other noise of not to operate noisy equipment routes, construction LCWD PIU, civil works construction during nighttime (22:00 – 06:00); reservoir contract Supervision equipment sound suppression for and Consultants equipment; ear plugs for workers pumping station Pipelaying Air pollution Water spraying for dust control; Pipelines Incorporated in Contractor / and other due to construction materials with routes, construction LCWD PIU, civil works construction potential for significant dust reservoir contract Supervision activities generation shall be covered; and Consultants tarpaulin cover for trucks pumping transporting loose construction station materials; not smoke belchers equipment Pipelaying Traffic Close coordination with local Pipelines Incorporated in Contractor / and other congestion and authorities in road closure and routes construction LCWD PIU, civil works hindrance to traffic rerouting; contractor’s contract Supervision access traffic plan; proper stockpiling of Consultants materials and immediate disposal of spoils; immediate restoration of roads and affected areas Pipelaying Pollution and Proper camp sanitation; Workers Incorporated in Contractor / and other health risks installation of sanitary facilities; camp construction LCWD PIU, civil works due to workers solid waste management; contract Supervision camp surface runoffs control such as Consultants temporary diversion drains, catch drains, and silt-traps Pipelaying Hazard to Implement road safety plan and Pipelines Incorporated in Contractor / and other public due to safety measures including routes, construction LCWD PIU, civil works construction warning signs to alert people of reservoir contract Supervision activities hazards around the construction and Consultants sites, barricades, and night pumping lamps for open trenches in station pipelaying Rehabilitation Improper Removal of all construction Pipelines Incorporated in Contractor / and closure closure of wastes and implement surface routes, construction LCWD PIU, of construction restoration reservoir contract Supervision construction sites and Consultants sites pumping station Pipelaying Increase Contractor required to give Pipelines No cost Contractor / and other employment preference to local labor; workers routes, LCWD PIU, civil works opportunities recruitment to be coordinated reservoir Supervision with local officials and Consultants pumping station OPERATION PHASE Water Health hazard Water disinfection using chlorine; Pipelines, Part of operation LCWD / LWUA production due to delivery water safety plan implementation reservoirs, & maintenance of poor water and costs quality pumping stations, Water Pollution from Septic tanks system of water Subproject Cost of water Water consumer/ consumption increased consumers water consumers LGU generation of supply sewage and service area sullage Groundwater Potential Groundwater pumping at lesser pumping No cost LCWD / LWUA pumping ground than the safe yield of each well stations subsidence due to excessive pumping Pumping Pumping Use liquid chlorine (sodium Pumping Part of capital, LCWD / LWUA station station hypochlorite) instead of chlorine station operation & operation operational risk gas maintenance and safety costs

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109. Although details of the required mitigating measures are already discussed in the screening for impacts, the following items are discussed further to highlight their importance: (i) tender documents and construction contracts, (ii) contractor’s environmental management plan, (iii) construction site management plan, (iv) water safety plan, (v) source protection study and wellhead protection plan, and (vi) unanticipated environmental impacts.

110. Tender Documents and Construction Contracts. Environmentally responsible procurement advocates the inclusion in construction contract documents the provisions addressing the management of environmental impacts and risk during construction. This includes the contractor’s submittal of a Contractor’s Environmental Management Plan (CEMP). Tender documents and construction contracts shall therefore include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (vii) public safety and convenience.

111. Contractor’s EMP. During construction, each contractor will be guided by its detailed CEMP. This shall be based on the LCWD subproject’s EMP with details on staff, resources, implementation schedules, and monitoring procedures. The agreed CEMP will be the basis for monitoring by PMU, LCWD PIU, and other monitoring parties. Inclusion in construction contract documents the provisions requiring the contractor to submit a CEMP is important since the contractor will be legally required to allocate a budget for mitigation measures implementation. The CEMP will allow LCWD’s construction supervision engineer to focus on what are specific items expected from the contractor regarding environmental safeguards on a day-to-day basis. With the CEMP, LCWD can easily verify the associated environmental requirements each time the contractor will request approval for work schedules.

112. The CEMP shall be prepared by all contractors before the start of the construction works and shall be approved by LCWD’s PIU. This requirement shall be included in the construction contracts. It shall provide details on specific items related to the environmental aspects during construction. It shall include specifications on requirements for dust control, erosion and sediment control, avoidance of casual standing water, management of solid wastes, workers’ camp sanitation, pollution from oil, grease, fuel spills, and other materials due to the operation of construction machineries, safety and traffic management, avoidance of inconveniences to the public, air and noise pollution control. It shall also include guidance on the proper design of the construction zone, careful management of stockpiles, vegetation, topsoil, and vehicles and machinery.

113. Water Safety Plan. LCWD shall manage the environmental risk to its water supply system in a broader scale. As previously pointed out, the role of a water safety plan in addressing the risk cannot be overemphasized. This is an approach advocated by WHO for ensuring the delivery of safe drinking water to the consumers. Its need is also reflected in the 2007 PNSDW. The water safety plan shall enable the LCWD to (i) prevent contamination of its water sources water, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re-contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the LCWD in applying best practices in ensuring delivery of potable water to its consumers.

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114. Source Protection Study and Wellhead Protection Plan. An input to the preparation of the water safety plan is the source protection study. This includes preparation of a source water assessment and wellhead protection plan. The study will help identify risk to the water supply system. A source water assessment is an evaluation of how susceptible a source may be to potential sources of contamination. Potential contaminant sources that could adversely affect the quality of water supply source are identified. Output of assessments will be used to prepare the wellhead protection plan. Wellhead Protection is a way to prevent drinking water from becoming polluted by managing potential sources of contamination in the area with influence to the groundwater supplies to the well. The wellhead protection plan includes designating the protection area or capture zone. A wellhead protection plan is particularly important for LCWD since its groundwater sources are within or near built-up areas and the risk of contamination to these sources is high.

115. Unanticipated Environmental Impacts. Where unanticipated environmental impacts become apparent during project implementation, LCWD shall prepare a supplementary environmental assessment and EMP to assess the potential impacts and outline mitigation measures and resources to address those impacts.

B. Environmental Monitoring

116. Table 7 presents the information on: (i) aspects or parameter to be monitored, (ii) location where monitoring is applicable, (iii) means of monitoring, (iv) frequency of monitoring, (v) responsibility of compliance monitoring, and (vi) cost of monitoring. The PMU shall prepare quarterly environmental monitoring reports to be submitted to LWUA management detailing the status of mitigating measures implementation.

Table 7: Environmental Monitoring Plan of LCWD Subproject Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility PRE-CONSTRUCTION PHASE Specific Pipeline Verify draft and Twice – draft Design LWUA PMU Part of project provision in trenches, civil final documents and final consultants management in tender works documents detailed design documents on excavations (minimal cost) archeological/ cultural relics Consultation Pipelines Verify meetings After LCWD, LWUA PMU Part of project meetings; routes, documentation; completion of Design management in Specific reservoir and Verify draft and meetings; consultants detailed design provisions in pumping station final documents Twice – draft (minimal cost) tender and final documents on documents nuisance & problems to public CONSTRUCTION PHASE Total area to be Pipelines Visual Daily during Contractor Construction Part of consultant’s exposed; runoff routes, inspection of rainy periods supervision construction flowing into reservoir and sites; plans consultants, supervision disturbed sites pumping station verification LCWD PIU contract; minimal cost to LCWD PIU Water supply Pipelines Visual Daily Contractor Construction Part of consultant’s interruptions; routes inspection of supervision construction materials and sites; work consultants, supervision solid wastes schedules LCWD PIU contract; minimal dumped in verification cost to LCWD PIU watercourses Noise levels not Pipelines Use of sound Daily Contractor Construction Part of consultant’s to exceed 50 routes, levels meter supervision construction

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Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility dBA near reservoir and consultants, supervision school, 55 dBA pumping station LCWD PIU contract; minimal in other areas, cost to LCWD PIU and 45 dBA during nighttime Dust, cover of Pipelines Visual Daily Contractor Construction Part of consultant’s stockpiles, routes, inspection of supervision construction smoke belching reservoir and sites consultants, supervision pumping station LCWD PIU contract; minimal cost to LCWD PIU Road closure Pipelines traffic plans weekly Contractor Construction Part of consultant’s and traffic routes verification supervision construction rerouting; consultants, supervision materials LCWD PIU contract; minimal stockpiles; road cost to LCWD PIU restoration Sanitary toilets, Workers camps Visual Once before Contractor Construction Part of consultant’s garbage bins, inspection of start of supervision construction runoff controls camps construction consultants, supervision and once LCWD PIU contract; minimal monthly cost to LCWD PIU Road safety Pipelines Visual Daily Contractor Construction Part of consultant’s plan; sign, routes, inspection of supervision construction barricades and reservoir and sites consultants, supervision night lamps pumping station LCWD PIU contract; minimal cost to LCWD PIU Construction Pipelines Visual Once before Contractor Construction Part of consultant’s wastes routes, inspection of final stage of supervision construction reservoir and sites demobilization consultants, supervision pumping station LCWD PIU contract; minimal cost to LCWD PIU Number of local Pipelines Verification of Once a month Contractor LCWD PIU No cost labor employed routes, contractor’s reservoir and records pumping station OPERATION PHASE E. Coli bacteria; Pipelines, Water sampling Monthly for LCWD LWUA Part of LCWD’s PNSDW reservoirs, and and laboratory bacteria; operation cost physical & pumping test annual for (USD300 /year) chemical stations, physical & chemical Septic tank of Subproject Visual Once a year Water LGU Minimal cost water water supply inspection of consumer consumers service area sites

Groundwater Wells/ pumping Use of Once a month LCWD LWUA Minimal cost to levels stations groundwater LCWD level meter liquid chlorine Pumping Verification of Once a year LCWD LWUA Minimal cost usage stations operation records

117. Project Performance Monitoring. Project performance monitoring presents the desired outcomes as measurable events by providing parameters or aspects that can be monitored and verified (Table 8). Tendering process advocating environmentally responsible procurement is a desired outcome during the pre- construction phase. This can easily be verified by checking if EMP requirements are incorporated in construction contracts. Construction phase desired outcomes include effective management of environmental impacts and reduce risk to public. For the operation phase, LCWD’s water supply system must meet the drinking water standards (2007 PNSDW) for bacteria count (E. coli), color, pH, turbidity, dissolved solids, hardness, alkalinity, manganese, iron, fluoride, chloride, sulfates, magnesium, calcium, carbonates, and bicarbonates. .

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Table 8: Project Performance Monitoring of LCWD Subproject Aspects / Means of Frequency Implemen- Compliance Monitoring Desired Outcomes Parameters Monitoring tation Monitoring Cost to be monitored PRE-CONSTRUCTION Detailed design is EMP Verify detailed Two reviews: LCWD, LWUA PMU Minimal environmentally requirements design (i) draft Design cost responsive incorporated documents; detailed consultants in detailed EMP design design requirements documents reflected in and (ii) prior to tender approval of documents final documents Tendering process EMP Verify Prior to LCWD PIU LWUA PMU Minimal advocates requirements construction finalization of cost environmentally incorporated contract construction responsible in construction documents; contract procurement contracts documents CONSTRUCTION PHASE Effective management Number of Verification of Once a month Contractor Construction Part of of environmental public contractor’s supervision consultant’s impacts during complaints on records; consultants, construction construction construction LCWD LCWD PIU supervision activities coordination contract; with local minimal officials cost to LCWD PIU Reduce risk to public Number of Verification of Once a month Contractor Construction Part of during construction accidents contractor’s supervision consultant’s involving records; consultants, construction construction LCWD LCWD PIU supervision activities coordination contract; with local minimal officials cost to LCWD PIU OPERATION PHASE Water quality meets Required Water Monthly for LCWD LWUA Part of drinking water drinking water sampling and bacteria; LCWD’s standards quality laboratory test annual for operation parameters physical & cost chemical (USD300 /year)

C. Implementation Arrangement

118. This subsection presents the: (i) institutional set-up, (ii) implementation schedule, (iii) required clearances and permits, and (iv) capability building.

119. Institutional Setup. LWUA is the executing agency, while LCWD is the implementing agency. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. LWUA will establish a Project Management Unit (PMU) to coordinate implementation at the national level, including procurement of goods, works, and services. A PMU staff shall be designated as the Environment Officer for the project. At the subproject level, LCWD will be responsible during construction and operation phase of the subproject. During the construction phase, LCWD shall establish a Project Implementation Unit (PIU) to work closely with LWUA’s PMU. A team of consultants will assist LWUA’s PMU and LCWD during pre-construction and construction phases.The role of the WDECC during the construction phase is highlighted since it is an important aspect of the grievance redress mechanism in promptly addressing

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LCWD 30 the public’s complaints about environmental performance of the subproject during execution of the construction activities.

120. Environmental Monitoring Reports. During the construction period, the construction supervision consultants, together with the PIU, shall prepare monthly environmental monitoring reports to be submitted to LCWD and the PMU. The contractor shall submit to the PIU a monthly environmental monitoring report. Based on the monthly reports, the PMU shall prepare semi-annual environmental monitoring reports which shall be submitted by LWUA to ADB.

121. Implementation Schedule. As presented in the project description, the LCWD subproject is scheduled to start on 2011 and to be completed on December 2013. Physical implementation will start in 2012 with construction activities for re- commissioning of 9 existing wells at Bogna and Mabinit well fields, and the construction of deep well, pumping facilities, storage facilities and transmission/ distribution pipelines. LCWD shall ensure that construction contract provisions related to the EMP shall be included in the tendering stage in 2011.

122. Clearances and Permits. Under present Philippine regulations, LCWD shall apply for an Environmental Compliance Certificate (ECC) from the DENR for the proposed water supply system.

123. Capability Building. WDDSP implementation will be supported by consulting services to be sourced in two contract packages: (i) project management advisory services, including detailed engineering designs, preparation of contract documents, support to water districts with construction supervision and quality control, and the preparation of any resettlement plans; and (ii) institutional development and capacity building for LWUA, the project management unit (PMU), and water districts.

IX. CONCLUSION AND RECOMMENDATIONS

124. LCWD is presently getting most of its water requirement from a single bulk water supplier. The proposed water supply system under WDDSP will enable LCWD to tap multiple water sources and enhance its reliability to deliver safe drinking water.

125. The environmental screening process has highlighted the environmental issues and concerns of the proposed LCWD subproject. The screening has considered the fact that most of the water sources for the proposed water supply under WDDSP is the re-commissioning of 9 stand-by wells in Barangays Bogna and Mabinit. These areas, including Barangay Taysan, have been residential and agricultural landscapes dominated by coconut groves. The proposed LCWD subproject is therefore not a new incursion to an ecologically untouched area.

126. Based on the screening for potential environmental impacts and risks of the proposed LCWD subproject, there are no significant negative environmental impacts and risks that cannot be mitigated. Hence, the proposed LCWD subproject can easily be implemented in an environmentally acceptable manner. There is no need for further environmental assessment study. A full EIA is not warranted and the subproject’s environmental classification as Category B is deemed appropriate. The IEE shall therefore be finalized as the final environmental assessment document of the proposed LCWD subproject.

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127. Implementation of the proposed LCWD subproject is hereby recommended with emphasis on the following: (i) EMP of LCWD subproject shall be included in the design process; (ii) Contracts of design consultants shall have provisions requiring the consultants to consider EMP recommendations in the design process; (iii) Tendering process shall advocate environmentally responsible procurement by ensuring the inclusion of EMP provisions in the bidding and construction contract documents; (iv) Contractor’s submittal of a CEMP shall be included in the construction contract; (v) Contract provisions on creation and operation of the WDECC shall be included in construction contracts; (vi) LWUA, with its regulatory function, shall ensure that capability building for LCWD shall be pursued; and (vii) LCWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

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REFERENCES

Asian Development Bank (ADB). 1993. Environmental Guidelines for Selected Infrastructure Projects. Office of the Environment, Asian Development Bank.

____. 1998. Environmental Assessment Requirements of the Asian Development Bank. Environment Division Office of the Environment and Social Development, Asian Development Bank.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Water Supply. ADB Online.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Sewage Treatment. ADB Online.

____. 2009. Safeguards Policy. ADB Online.

Department of Environment and Natural Resources (DENR). 1990. Revised Effluent Regulations of 1990. DENR Administrative Order No. 35.

Department of Health (DOH). 2007. Philippine National Standards for Drinking Water.

Poyry-IDP Consult. 2009. Subproject Appraisal Report: Legazpi City Water District. ADB TA7122-PHI. Manila.

World Bank (WB). 1991. Environmental Assessment Sourcebook Volume II – Sectoral Guidelines.

World Health Organization. 2005. Water Safety Plans. Geneva.

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ANNEXES

Sites Photographs

Minutes of Consultation Meeting

List of Participants - Consultation Meeting

Attendance Sheet - Consultation Meeting

Photographs - Consultation Meeting

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SITES OF PROPOSED LCWD WATER SUPPLY SYSTEM

Photo No.1 – Hydraulic control structure at Barangay Bogna to be activated as part of the proposed water supply system

Photo No.2 – Proposed area of reservoir and well at Barangay Taysan of Legazpi City

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Minutes of the Public Consultation/Meeting held at Legazpi City Water District Office, Legazpi City, 16 July 2009

Opening/ Presentations:

The public consultation/meeting started at 2:30 P.M. with Legazpi City Water District (LCWD) Acting General Manager (GM), Ms. Barbie Borromeo, welcoming the participants and thanked them for positively responding to LCWD’s invitation. The Acting GM informed the participants that a study funded by ADB is ongoing for increasing LCWD’s water production capacity to serve more households. This will include the following: (i) activating existing wells and reservoirs, (ii) drilling of additional wells, and (iii) additional new well and reservoir for Barangay Taysan. Mr. Alberto Bondoc, consultant, gave a presentation of the results of the study for the proposed LCWD subproject.

Comments, Views, Issues and Concerns raised by Stakeholders

Mr. Gonzales, Regional Director EMB-5, informed LCWD that it has to apply for an Environmental Compliance Certificate (ECC) and a discharge permit for the proposed Septage Treatment Plant (STP) from EMB-5. LCWD’s Acting GM responded that LCWD will surely comply with existing environmental laws and regulations.

Mr. Gonzales expressed support to the proposed septage management program since septage will be effectively treated with the proposed septage treament plant.

Mr. Benjamin Rosin, Chairman of Barangay Taysan, inquired on how the water system in Barangay Taysan be improved. Mr. Bondoc, consultant, clarified that an additional well with a capacity of 1,720 cumd will augment the existing well source to address the 2025 water requirement of Barangay Taysan

Mr. Benjamin Rosin, raise the issue of high iron content of groundwater in his Barangay and people resorted to buying drinking water from water filling stations. Mr. Bondoc, consultant, explained that the proposed new well will have good water quality.

Ms. Theresa Nunes, LGU-Legazpi, inquired on what LCWD is doing on the various complaints of its water quality. LCWD’s Acting GM responded by saying that LCWD is studying the water quality issue with its bulk water supplier.

Ms. Theresa Nunes, reminded LCWD that the minutes of a previous meeting between the city government and LCWD stated that LCWD should first improve its operation to deliver good quality water before embarking on another project. Ms. Villegas, WDDSP consultant, commented that the previous meeting – LCWD shall do operational improvement while the PPTA study is ongoing.

Juliet Villegas of Poyry-IDP asked if the participants have additional issues to raise. After confirming that there were no more issues, LCWD’s GM closed the meeting by thanking everyone for participating in the public consultation.

Meeting Closed at 4: 00 P.M.

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List of Participants of Legazpi City WD Public Consultation and Information Disclosure [16 July 2009]

Stakeholders/Participants:

• Benjamin D. Rosin – Barangay Chairman, LGU-Barangay Taysan • Gilbert Gonzales – Regional Director, DENR-EMB R5 • Anthony I. Vinas – DENR-EMB R5 • Ma. Teresa D. Nunez – LGU-Legazpi City

Legazpi City Water District (LCWD) and WDDSP Team

• Barbie G. Borromeo – Acting GM, LCWD • Juliet Villegas – consultant, Poyry-IDP • Alberto Bondoc - consultant, Poyry-IDP • Ruel Janolino - consultant, Poyry-IDP

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List of Participants of Legazpi City WD Public Consultation and Information Disclosure [16 July 2009]

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PHOTOGRAPHS OF LCWD PUBLIC CONSULTATION MEETING

Photo No.3 – LCWD Acting GM explaining some points at public consultation meeting [16 July 2009]

Photo No.4 – Chairman of Barangay Taysan raising a point at public consultation meeting [16 July 2009]

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LCWD

Initial Environmental Examination

Initial Environmental Examination Project Number: 41665 April 2010

Leyte Metro Water District Water Supply Subproject

Republic of the Philippines: Water District Development Sector Project ADB TA 7122-PHI

The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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CURRENCY EQUIVALENTS (As of April 2010)

Currency Unit Philippines Peso (PHP)

$1.00 = PHP45.17

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank barangay village CDO Cease and Desist Order CEMP Contractor’s Environmental Management Plan CKWD City of Koronadal Water District cumd cubic meters per day DENR Department of Environment and Natural Resources DOH Department of Health ECC Environmental Compliance Certificate EIA environmental impact assessment EMB Environmental Management Bureau EMP environmental management plan FGD focus group discussion IA implementing agency IEE initial environmental examination IRR Implementing rules and regulations LCWD Legazpi City Water District LGU local government unit LMWD Leyte Metro Water District lps liters per second LWUA Local Water Utilities Administration mg/l milligrams per liter MLUWD Metro La Union Water District NGO non-government organization NRW Non-revenue water NWRB National Water Resources Board PD presidential decree PENRO Provincial Environment and Natural Resources Office PHP Philippine peso PIU project implementation unit PMU project management unit PNSDW Philippine National Standards for Drinking Water PPTA project preparation technical assistance QMWD Quezon Metro Water District RA republic act TA technical assistance WD water district WDDSP Water District Development Sector Project WDECC Water district environmental complaints committee WHO World Health Organization WTP water treatment plant

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD ii

Table of Contents

Page

EXECUTIVE SUMMARY ...... IV

I. INTRODUCTION ...... 1

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 1

III. DESCRIPTION OF THE PROJECT ...... 3 A. Proposed Water Supply System ...... 3

IV. DESCRIPTION OF THE ENVIRONMENT ...... 5 A. Physical Resources ...... 5 B. Ecological Resources ...... 7 C. Economic Development ...... 7 D. Socio and Cultural Resources ...... 11

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 12 A. Design/Pre-Construction Phase Considerations ...... 14 B. Construction Phase Environmental Impacts ...... 15 C. Operation Phase Environmental Impacts...... 17

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 18

VII. GRIEVANCE REDRESS MECHANISM ...... 20

VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 21 A. Environmental Mitigation ...... 21 B. Environmental Monitoring ...... 23 C. Implementation Arrangement ...... 25

IX. CONCLUSION AND RECOMMENDATIONS ...... 26

ANNEXES ...... 29

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD iii

List of Tables

No. Title Page

1 Annual Service Area and Served Population Projections 3 2 Water Quality of Raw Water Source 7 3 Historical Population and Growth Rates 11 4 Summary of Environmental Impacts Screening for LMWD Subproject 13 5 Environmental Impacts and Risks for Inclusion in EMP of LMWD Subproject 18 6 Summary of Consultation Outcomes 19 7 Environmental Mitigation Plan of LMWD Subproject 21 8 Environmental Monitoring Plan of LMWD Subproject 24 9 Project Performance Monitoring of LMWD Subproject 25

List of Figures

No. Title Page

1 Location Map vii 2 Franchise Areas of LMWD 4 3 Implementation Schedule 5

List of Photographs

No. Description Page

1 Typical narrow street, City, Leyte 30 2 Typical road of residential areas, Tacloban City, Leyte 30 3 LMWD GM clarifying some points at public consultation meeting 34 4 Stakeholders representatives raising points at public consultation meeting 34

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD iv

EXECUTIVE SUMMARY

1. An environmental assessment was made for the proposed water supply system of the Leyte Metro Water District (LMWD). It is one of the 5 pilot subprojects to be funded by the Asian Development Bank (ADB) under the Water District Development Sector Project (WDDSP) of the Local Water Utilities Administration (LWUA). LMWD is located in the province of Leyte, Republic of the Philippines (Figure 1). Relative to the significance of impacts and risks, this subproject is deemed Environmental Category B based on ADB’s environmental categorization and the type of assessment warranted only the preparation of an Initial Environmental Examination (IEE) report. This IEE was carried out under ADB’s TA 7122-PHI and in accordance with ADB’s Safeguards Policy (2009).

2. The assessment was also carried out within the policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines. These include the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The overall institutional framework is the LWUA and WD setup as defined by PD 198. Under WDDSP, LWUA is the executing agency, while WDs, such as LMWD, are the implementing agencies.

3. Subproject Description. The proposed LMWD subproject will help improve the living conditions of the urban population in LMWD area and enhance competitiveness by improving its water supply system through the recovery of non-revenue water (NRW). It is the volume of water that goes into the system but does not generate revenue. Included are wastage, leakage and consumptions from illegal connections as well as water used for fire fighting purposes and under-registration of meters. LMWD’s proposed NRW activities shall include the following: (i) NRW management and control which includes production metering, district metering, purchase of leak detection/ pipe location equipment and data logging equipment, (ii) NRW reduction which involves customer meter replacement, mains replacement, service pipe replacement, pressure reduction and valve rehabilitation, and (iii) NRW management system which includes GIS and hydraulic modeling.

4. Environmental and Socioeconomic Conditions. Project implementation will not pose significant problems to the environment since proposed NRW activities are in residential, institutional, and agricultural landscapes. Most of these areas are already occupied by residential and other structures, while some areas beyond the road corridors are basically agricultural lands. An important fact to consider is that the sites are not within undisturbed landscapes, but in areas touched by human activities over the years resulting to their present residential, institutional, commercial, and agricultural landscapes.

5. Socioeconomic indicators revealed that LMWD’s service area has a growing urban sector. Its 2007 total population was 410,934 representing 23.9% of Leyte Province. Tacloban City’s population is 52.6% of the subproject area population. Aside from Tacloban City, franchise area of LMWD includes 7 municipalities in Leyte, namely, Dagami, Palo, Pastrana, Sta. Fe, Tabontabon, Tanauan and Tolosa. The franchise area comprises 370 barangays while the existing service area encompasses only 261 barangays .

6. Impacts and EMP. Screening for environmental impacts is made through a review of the parameters associated with projects for piped water supply against the components of the proposed LMWD subproject. An important consideration in analyzing the environmental impacts of the proposed subproject is the fact that it is an improvement of an existing water

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD v supply system in an already altered environment. The issue on impacts and risks to biodiversity conservation is not applicable to this subproject since the subproject’s components will not be located in areas that are environmentally sensitive and have precious ecology.

7. During detailed design and pre-construction phase, potential nuisances and problems to the public during construction shall be addressed by inclusion in the tender documents of specific provisions addressing these issues. Although there are no issues related to historical and cultural assets, a precautionary measure shall be taken by inclusion of provisions in tender and construction contract documents requiring the contractor to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

8. Adverse environmental impacts during construction are temporary, less than significant, and can easily be mitigated. There will be no massive construction activities that can damage the environment. Water supply pipelaying is a low impact construction activity since trench excavation is shallow with narrow width. Excavated soil is backfilled to the trench after pipelaying. Required structures are relatively small in size. Typical construction issues are manageable with the implementation of a site management plan for: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience.

9. Environmental problems due to operation of the proposed water supply system can be avoided by incorporating the necessary measures in the design and use of appropriate operational procedures. Public health risk due to delivery of poor water quality can be prevented in a broader scale by implementing a water safety plan as advocated by the World Health Organization (WHO) and the 2007 Philippine National Standards for Drinking Water (PNSDW). LMWD shall continue using chlorine for controlling microbial contamination and ensure adequate residual disinfection.

10. An Environmental Management Plan (EMP) is developed to effectively manage the environmental issues. The plan includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up discusses the requirements and responsibilities during pre- construction, construction, and operation phases. The plan includes tabulated information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibilities for implementing the measures and monitoring.

11. Consultation and Participation. Project planning and the subsequent IEE preparation for the proposed LMWD subproject recognized the need for public consultation and participation as central to effective environmental safeguard. Within the context of “meaningful consultation”, LMWD initiated a process of consultation during project preparation and intends to continue it during the construction phase. LMWD conducted an initial public consultations and information disclosure last 22 July 2009 with concerned individuals, barangay officials, non-government organizations (NGOs), church officials, local government unit (LGU) planning officials, and DENR-Environmental Management Bureau (DENR-EMB) official. Details of the subproject components were presented to the stakeholders and their views on the respective proposals were requested. Stakeholders expressed support to the proposed subproject. Project disclosure activities were also done during the conduct of a socioeconomic survey between April to May 2009. Some 384 households in LMWD area were informed about the proposed subproject and interviewed for socioeconomic data. During detailed design, LWUA and LMWD will again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. LMWD shall keep records

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD vi of environmental and social complaints received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

12. Grievance Redress Mechanism. Implementation of the proposed LMWD subproject will be fully compliant to ADB’s safeguards requirement on grievance redress mechanism. LMWD shall disclose the proposed mechanism in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc WD Environmental Complaints Committee (WDECC) for expeditious resolutions of the complaints. LMWD shall address promptly, at no costs to the complainant and without retribution, any complaints and concerns. WDECC shall be chaired by LMWD and shall have members from the contractor, barangay government, concerned NGOs, and women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the subproject’s civil works contract.

13. Conclusion and Recommendation. The proposed NRW activities for LMWD under WDDSP offers huge benefits to Tacloban City by improving the supply of potable water thorough recovery of NRW. By 2015, LMWD’s proposed water supply system will increase the population to be served to 143,382. Further increases in served population are expected in the years to follow due to the availability of water supply infrastructures implemented under WDDSP.

14. Analysis of potential environmental impacts revealed no significant adverse impacts to people and environment from the proposed water supply subproject. The IEE concludes that adverse environmental impacts arising from the location, design, construction, operation, and maintenance of the proposed subproject can be mitigated to less significant levels and the corresponding mitigation measures are doable. Monitoring can easily be done. The project can be implemented in an environmentally acceptable manner. An expanded environmental impact assessment is therefore not warranted, and this IEE shall be finalized as the final environmental assessment document of the LMWD subproject. Its environmental classification as Category B is deemed appropriate.

15. LWUA and LMWD shall ensure that EMP requirements for the construction phase will be reflected in the tender documents and civil works contracts and implemented including the contractors submission of Contractor’s Environmental Management Plan (CEMP). LWUA shall monitor LMWD’s compliance to the EMP. In addition, creation of WDECC and its operation, as part of the grievance redress mechanism, shall be included in appropriate sections of the subproject’s civil works contracts. Institutional strengthening of LMWD, including training, is recommended for effective EMP implementation. LMWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD vii

Figure 1: Location Map

Metro La Union WD

Quezon Metro WD Legazpi City WD

Leyte Metro WD

City of Koronadal WD

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 1

I. INTRODUCTION

1. The Leyte Metro Water District (LMWD) is an operational water supply utility located in the province of Leyte, Republic of the Philippines and one of the selected subprojects under TA 7122-PHI: Water District Development Sector Project (WDDSP) funded by the Asian Development Bank (ADB). The objective of the TA study is to assist the government of the Philippines to prepare a water district development sector project. It is intended to improve the livability and competitiveness in urban areas outside of Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The Local Water Utilities Administration (LWUA) is the executing agency. The participating water districts are the implementing agencies for water supply and sanitation subprojects.

2. Preparation of this Initial Environmental Examination (IEE) is part of the Phase 2 activities of the TA. It provides ADB with an assessment of the environmental concerns to be considered regarding the subproject location, design, construction, and maintenance. This report is also intended to assist LWUA and the LMWD in the preparation of the required environmental document to meet the Department of Environment and Natural Resources (DENR) requirements for an application of the necessary Environmental Compliance Certificate (ECC) before the start of the construction activities.

3. This IEE is one of the of five IEE studies prepared by Poyry IDP Consult, Inc., Philippines in association with TEST Consultants Inc., Philippines and Poyry Environment GmbH, Germany for the initial selected subprojects. Preparation of the IEE involved field visits to the proposed subproject area; review of available information, discussions with LMWD, LWUA, DENR, and other government agencies, local government officials, and members of the community within the subproject area. The assistance of the LMWD General Manager and staff in arranging the site visits, meetings, and providing support during the conduct of the study is gratefully acknowledged.

4. The IEE has been carried out in accordance with ADB’s Safeguard Policy (2009) and the requirements describe in its Appendix 1 (SAFEGUARDS REQUIREMENTS 1: ENVIRONMENT). The IEE follows the outline prescribed in the Annex to Appendix 1 excluding the section on analysis of alternatives (not necessary for an IEE).

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

5. The policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines have long been established by the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The frameworks apply to the LMWD subproject.

6. The overall institutional framework is the LWUA and WD setup as defined by PD 198 otherwise known as the “Provincial Water Utilities Act of 1973”. LWUA, as a government corporation, is mandated to promote the development of water districts

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 2 in the country. It has a clear mandate to “primarily be a specialized lending institution for the promotion, development, and financing of local water utilities.” To carry out this mandate LWUA has major subsidiary roles such as: (i) prescribing minimum standards and regulations in order to assure acceptable standards of construction materials and supplies, maintenance, operation, personnel training, accounting, and fiscal practices for local water utilities; (ii) providing technical assistance and personnel training programs.

7. PD 198 also mandated the formation of local water districts, which were initially formed by resolutions of the local government units (LGUs) (generally, municipalities) as a single entity or as a combination of LGUs. Once formed, however, a WD becomes legally autonomous of the LGU and has the standing and legal character of an independent government-owned and controlled corporation. It is controlled by a board of directors, appointed by either the mayor or the governor, consisting of five members representing various sectors, who in turn appoint the WD’s general manager. Hence, LMWD was formed by virtue of PD 198.

8. Under WDDSP, LWUA is the executing agency, while the WDs, such as LMWD, are the implementing agencies. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. WDDSP can contribute to Philippine efforts in achieving relevant targets in the Millennium Development Goals (MDGs), eight international development goals that 192 United Nations member states have agreed to achieve by the year 2015. Most relevant to WDDSP is Goal 7 (Ensure environmental sustainability) with its “Target 7C” for 2015 calling to reduce by half the proportion of people without sustainable access to safe drinking water and basic sanitation. Achieving the MDG 2015 target on accessibility to safe drinking water necessitates an assurance that indeed the water is safe. WDs must have raw water sources with sustainable quantities and acceptable quality. They should be able to maintain acceptable water quality levels in the distribution systems to ensure delivery of potable water. The 7C Philippine target is 86.8% of Filipinos will have access to safe water by 2015 and 83.8% will have access to a sanitary toilet facility.

9. Implementation of infrastructure and development projects in the Philippines is legally covered by PD 1586 otherwise known as “Establishing the Philippine Environmental Impact Statement System” with its implementing rules and regulations issued under Department of Environment and Natural Resources (DENR) Administrative Order No. 30 series of 2003 (DAO 03-30). This system requires the project proponent to obtain an Environmental Compliance Certificate (ECC) from the DENR before an infrastructure project can be constructed. The Philippine environmental assessment system conforms with ADB’s environmental assessment requirements as revealed by ADB’s Special Evaluation Study on Environmental Safeguards (2006).

10. Sewerage and septage management are covered by Republic Act No.9275 otherwise known as “The Philippine Clean Water Act of 2004”. Its implementing rules and regulations are issued under DENR Administrative Order No.10 series of 2005 (DAO 05-10). Standards for the discharge of all industrial and municipal wastewaters are defined in DENR Administrative Order No. 35 series of 1990 otherwise known as “The Revised Effluent Regulations of 1990” which is based on the Philippine Pollution Control Decree of 1976 issued as PD 984. Sanitation and septic tanks are also covered by PD 856 otherwise known as “Code on Sanitation of the Philippines”.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 3

III. DESCRIPTION OF THE PROJECT

A. Proposed Water Supply System

11. The LMWD subproject has been planned in two phases. Phase 1 will focus on the non-revenue water (NRW) reduction activities, while Phase 2 for the expansion works with an alternative water source to be developed and implemented at a later time. Hence in March 2010, LMWD and WDDSP have considered only the Phase I since Phase 2 is still uncertain. The NRW reduction activities aims to improve the water supply system of LMWD in order to meet the projected water demand for the year 2025. Under Phase I, LMWD’s projected total average-day demand will be 39,312 cubic meters per day (cumd) from year 2010 up to year 2025. Projected domestic water demand will be 16,387 cumd in 2015 and 16,509 in 2025. The total served population is estimated at 143,382 by 2015 representing some 37.67% of the total service area population. Table 1 presents the service area figures and the projected served populations for Phase I. LMWD covers Tacloban City and the municipalities of Dagami, Palo, Pastrana, Sta. Fe, Tabontabon, Tanauan and Tolosa, all located in the province and island of Leyte (Figure 2).

Table 1: Annual Service Area Population and Served Population Projections

Source: Poyry-IDP Consult. 2010. Subproject Appraisal Report: Leyte Metro Water District. ADB TA7122-PHI. Manila.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 4

LMWD

FRANCHISE AREAS

Figure 2

FRANCHISE AREA OF LEYTE METRO WATER DISTRICT

12. Scope of Work. NRW is the volume of water that goes into the system but does not generate revenue. Included are wastage, leakage and consumptions from illegal connections as well as water used for fire fighting purposes and under-registration of meters. Phase I includes the following: (i) NRW management and control which includes production metering, district metering, purchase of leak detection/ pipe location equipment and data logging equipment, (ii) NRW reduction which involves customer meter replacement, mains replacement, service pipe replacement, pressure reduction and valve rehabilitation, and (iii) NRW management system which includes GIS and hydraulic modeling.

13. Water Supply Project Cost. Cost estimate was based on the 2009 in-placed cost of waterworks materials and facilities of LWUA and from costs provided by the Engineering Department of Maynilad Water. The total project cost is estimated to be PHP 131.401 million. The annual operation and maintenance costs from the year 2009 to 2025 include manpower, power, chemical, maintenance and miscellaneous

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 5 costs. By 2015, the total annual operation and maintenance costs will be PHP129.476 million and PHP130.133 million by 2025.

Figure 3: Implementation Schedule

Source: Poyry-IDP Consult. 2010. Subproject Appraisal Report: Leyte Metro Water District. ADB TA7122-PHI. Manila.

14. Implementation Schedule. The NRW program will last for 6 years starting 2011 and ending in 2016 as shown in Figure 3. NRW management and control which will include production metering, district metering, purchase of leak detection/ pipe location equipment and data logging equipment will start in 2011 and end in 2013. NRW reduction activities, which will include pipeline replacements and valve rehabilitation will last for the entire 6 years.

IV. DESCRIPTION OF THE ENVIRONMENT

15. A brief description of the existing environmental and socioeconomic conditions of the LMWD subproject influence area is presented in the following subsections:

A. Physical Resources

16. Tacloban City is located some 360 miles southeast of Manila at 110014’36” north latitude and about 1250 east longitude. Dagami is located at 1104’6” north latitude and 1240 49’54.21” east longitude. Palo is located 124° east longitude and 11.09°’59’ north latitude. It is about 12 kilometers from Tacloban City. Pastrana has coordinates of 124 degrees 53’ E longitude and 11 degrees 8’ N latitude. Sta Fe is located at 1240 41’30” north latitude and 110 12’30” east longitude and some 23 kilometers from Tacloban City. Tabontabon is located at 1240 9‘58” east longitude and 110 3‘ north latitude approximately 30 kilometers away from Tacloban City. Tanauan is located along the eastern coast of the province and more specifically at 1107’16” north latitude and 1250 east longitude. It is approximately 18 kilometers south of Tacloban City. Tolosa lies at coordinates of 11 degrees 2’ north latitude and 125 degrees 2’ east longitude.

17. Topography. Tacloban City has an elevation of 3.0 meters above sea level. The rolling terrain at the western vicinity of the city is evenly distributed throughout the northwestern portion of the city’s territory. On the southwestern part lies the Naga- naga Mountain with a height of 1,300 feet. This range serves as the boundary between Tacloban and its adjacent municipalities, namely Palo, Sta. Fe, Alang-alang and Babatngon. Its low-level ground with a maximum slope of 3% is at the eastern side of the city facing the sea. It has an area of 3,748.289 hectares or 34.54% of the city’s entire land area. Low flat lands, with rolling hills in varying elevations and slopes, characterize most of the other towns. Palo have scattered patches of steep hills, while the rest of the towns are in extensive plains.

18. Geology and Soils. Leyte is inferred to be a product of magmatic and tectonic action generated by the underthrusted Philippine Sea Plate. Evidence of such origin

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 6 are earthquake epicenters, which have been traced to displacements or disturbance that recur within the subducted plate. Magmatic and tectonic action generated by the plate is said to have generated the Cretaceous volcanic rocks in the area. Over these rocks are intercalated sedimentary sequences of shale, sandstone and chert. The serpentinesed peridotite and associated gabbro are believed to have intruded during the Pliocene to Eocene time. The principal soil types found in the area are: Tacloban Clay, Naga-Naga Clay, Caibaan Clay, Pawing Silt, Caibaan Clay Loam, Pawing Silt Loam, Calanipawan Clay Loam, Nula-Tula Clay and Sta. Elena Clay Loam. Tacloban City proper is predominantly of Pawing Silt Loam and the interior areas are of Naga- Naga Clay.

19. Water Resources. LMWD obtains its water supply from six river sources. Approximately 428 liters per second (lps) or 37,000 cumd of potable water is delivered to the LMWD’s service areas covering Tacloban City and the municipalities of Dagami, Tolosa, Tanauan, Palo, Tabon-tabon, Sta. Fe and Pastrana. It is estimated that LMWD’s 2025 maximum-day demand of 774.1 lps (66,882 cumd) can be supplied from existing sources and the additional demands of 346 lps (29,903 cumd) from the Binahaan River.

20. The Binahaan River is the major water supply source of LMWD. Approximately 305 lps (26,400 cumd) is produced from the rapid sand filtration plant located at the boundary of Barangay Tingib, Pastrana, Leyte and Barangay Hibunawon, Jaro, Leyte. The National Water Resources Board (NWRB) granted to LMWD a water rights permit for the withdrawal of 1,000 lps (86,400 cumd) from the Binahaan River. Data at the present filtration plant revealed a maximum flow of 11,687 lps (1,009,757 cumd) on November 27, 1990 and a minimum flow of 3,023 lps (261,187 cumd) on September 19, 1990.

21. Shallow wells and dug wells exist in the area to support the domestic demands of households not connected to the LMWD’s water supply system. Wells drilled to 25 – 90 meters showed yield of less than 2 lps and wells drilled close to the coastline produce saline water. Dug wells, shallow drilled wells, and deepwells drilled to about 40 meters are reported to have high iron and manganese concentrations. No wells have been drilled successfully within the service area of the LMWD to indicate groundwater as a potential water supply source for the LMWD. Available records of old wells and results from recently drilled wells in the area indicate poor aquifer characteristics. No springs of significant discharge and economic distance are found in the area.

22. Climate. The climate of Tacloban City is classified as falling between the boundary of Type II and Type IV. It has no dry season and with rainfall more or less evenly distributed throughout the year. Very pronounced maximum rainfall are in July to December. The other seven towns have Type II climate which is characterized by no definite dry and wet season, but without a single dry month. There is more or less an even distribution of rainfall throughout the year with maximum rains coming in November to January of each year. The minimum monthly rainfall occurs in April to May and August to September. Typhoons passed through the area every year. Mean monthly temperatures ranges from 25.7 degrees Centigrade to 28.1 degrees Centigrade.

23. Air Quality and Noise. There are no available air quality data specific to the areas where subproject components will be constructed. However, based on the consultant’s experience on air quality measurements of similar rural setting in the Philippines, the expected average ground level concentrations of total suspended particulates (TSP) would be close to the indicative value of 65 ug/Ncm. Similarly,

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 7 there are no actual data on the present noise levels of this area. Again, based on the consultant’s experience on noise measurements of similar rural setting in the Philippines, the expected noise levels along the inhabited areas would be between 42 to 48 dB(A) for the daytime, while those in the farm areas would be less than 40 dB(A). In areas where there is higher vehicular traffic volume noise levels could reach as high as 54 dB(A).

B. Ecological Resources

24. Proposed NRW activities will focus on the existing water supply transmission and pipeline network. The ecological setting of these areas is that of a developed environment (Photographs No.1 and 2). Agricultural setting is also present, such as the Binahaan River, the main existing raw water source at Barangay Hibunawon, Jaro, Leyte. This existing water treatment plant area is owned by LMWD. Present ecological setting of this property and the surrounding areas is typical of an agricultural landscape dominated by coconut groves. The Binahaan River has a minimum flow of 3,023 lps and maximum flow of 11,687 lps. LMWD is presently using only 305 lps of its water rights permit for 1,000 lps granted by NWRB. A water quality test (Table 2) of the Binahaan River raw water indicated its suitability as water supply source. The 2007 PNSDW is the applicable standard for drinking water in this IEE since it is more stringent than the World Health Organization (WHO) Guidelines for Drinking-Water Quality (2008). Expected water quality is the same as the existing situation since the proposed subproject will use the existing water sources.

Table 2: Water Quality of Raw Water Source Parameters Test Results 2007 PNSDW Limit (mg/l) (mg/l) Turbidity 0 NTU 5 NTU Color (true) 5 units 5 units pH 8.12 6.5 – 8.5 Total Dissolved 120.3 500 Solids Sulfate 21.84 250 Nitrate 0.014 50 Chloride 31.77 250 Benzene <0.003 0.01 Iron nil 1.0 Manganese nil 0.4 Arsenic <0.003 0.05 Cadmium <0.0001 0.003 Lead 0.002 0.01 Source: LMWD data of Binahaan River tested in July 2008

25. An important fact to consider is that the general area of the proposed sites for the NRW activities is within built-up areas (Photographs No.1 and 2). Needless to say that this environment will be unlikely habitats for large wild animals, rare or endangered species. The pipeline network and transmission are located in roads and highways that have been functional for a very long time already. Hence, over the years the ecological changes due to human activities resulted to the present residential and commercial landscapes.

C. Economic Development

26. City Income and Expenditures. Tacloban City is classified as a “Class A” City. In 1997, the city derived an income of PHP226,616,785. The major sources of the city’s

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 8 revenue are tax revenues, internal revenue allotment (IRA) and operational and miscellaneous receipts. IRA serves as the main source of revenue. For same year, the city government accumulated a total expenditure of PHP225,477,630. Same with Tacloban City, major source of income of the towns in the subproject area comes from the internal revenue allotments. Tax revenues and fees were collected on real property, occupation, community tax clearance and certification fees, and permit fees. Revenue from operations came from receipts of municipal business licenses, market and slaughterhouse fees, and miscellaneous fees. In Palo, highest collection in tax revenues is on the business taxes followed by the community tax and the real property taxes. In Pastrana, tax revenues comes from properties, transfer taxes; taxes on goods and services and other taxable income and goods and services. Tolosa has experience a deficit of PHP45, 804 in 2007.

27. Land Use. Tacloban City has a land area of 10,297 hectares. However, land reclamations have increased it to 10,856.08 hectares. Land use reflects the increasing urbanization with only 19% classified as agricultural areas. Built-up areas include residential, commercial, institutional, parks and functional open spaces, and utilities/agro-industrial. Land use of the towns in the subproject area is characterized by the dominance of agricultural areas and planted by different crops ranging from rice, corn, vegetables, root crops and coconuts. In Dagami built-up area is 72.90 hectares or 0.45% of the total land area and the remaining areas are distributed among rural barangays. Forest area is found in the southwestern portion of the municipality covering 21.30% of the total land area of the municipality. In Palo, agriculture occupies 76.06% of the total land area and planted with different crops, where coconut and rice are dominant. In Pastrana, agricultural land is 99.1% of the total municipal land area. Sta. Fe has 66.12% of the total land area classified as agricultural. In Tabontabon, agricultural areas account for 96.84% of the total land area. In Tanauan, agricultural areas account for about 91.9% of the total land area of the municipality.

28. Commerce and Trade. Tacloban’s Mayor’s office has processed and issued 1,659 permits in the transport business and 1,768 permits for commercial and industrial businesses which includes general merchandising, sari-sari stores, auto repair shops, service centers, restaurants, nightclubs and cocktail bars, noodle making, among others. There are 27 financial institutions operating in the city. Of these, 3 are government-owned and controlled banks and 24 are privately-owned. These financial institutions also serve the needs of the other towns. Commerce and trade of the towns in the subproject area are mainly based on trading of agricultural products and operation of small shops. These include rice milling, welding, tailoring, blacksmithing, basket and broom making, and furniture making.

29. Agriculture. Tacloban City’s agricultural area is fast decreasing due to the expansion of commercial areas and the development of residential subdivisions. Records of the City Planning and Development Office (CPDO) showed that only 19% of its total area is agricultural. The largest area planted to food crops is rice with 270 hectares; rootcrops with 250 hectares; fruits and leafy vegetables with 104 hectares; corn has 82 hectares. Coconut, with 1,170 hectares is the biggest agricultural area. The towns in the subproject area are basically agricultural with major crops of rice, corn, banana, root crops and vegetables. Coconut plantations are well distributed through out the subproject area. Coconuts are intercropped with vegetables and root crop production. In most towns, such as Palo, Pastrana, Sta. Fe, Tabontabon, and Tanauan, rice is the top ranking agricultural crop.

30. Tourism. Tacloban serves as the gateway for travelers to the tourism spots of nearby towns such as Palo, some 12 kilometers away. The City Tourism Office

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 9 registered a total number of 625 rooms. Hotels have total rooms of 192, while rooms in various beach resorts are 193. Tourism is one of the major activities of Palo with its MacArthur Memorial Park and Leyte Eco-Tourism Zone, a developed area planted with hardwood and indigenous tree species. Palo is also known to be a religious town. During Holy Week, especially on Good Fridays, people from neighboring town and provinces in the region flock into the town to witness the re-enactment or the “Pamalandong” or Christ’s suffering.

31. Tanauan is another town with tourism spots such as stone-walled enclosure or “cuta” at Barangay San Miguel which served as a refuge from the feared Moro pirates, Tanauan Vignette Museum at the Municipal Hall where articles donated by the residents are on display, and white sand beach along San Pedro Bay at Barangay Sto Nino with beach resorts. Other towns do not have developed tourism spots and tourism facilities, but some have historical sites, ancestral houses, and pristine sea with immaculate shorelines.

32. Existing Water Supply System. About 99% of the water supply of LMWD comes from surface water sources to the west of the service area, while 1% comes from well sources. There are three surface water sources, namely Binahaan River, the Atipulo / Magculo/ Maitom creeks and the Hiabangan River/ Hitumnog creek. Ogee dams, trapezoidal dams, intake structures and raw water transmission pipelines are provided to collect and convey water respectively from these sources. Binahaan River is the largest water supply source supplying the old Tingib water treament plant (WTP), a slow sand filtration plant with a capacity of around 400 cum/hr, and another Tingib WTP, a conventional rapid sand filter plant with capacity of 1,000 cum/hr. Very little use of groundwater sources due to poor aquifer yielding characteristics and poor water quality. The system has only one shallow well in Tolosa and another in Tacloban City.

33. The present system has 315,485 meters of transmission and distribution pipelines with sizes ranging from 50mm to 600 mm. PVC pipes dominates the distribution lines. There are three existing distribution reservoirs namely, Utap Hill Reservoir, Ambao Hill Reservoir, and Tolosa Reservoir. Utap Hill and Ambao Hill are concrete ground reservoirs and operate as floating reservoirs, while the Tolosa reservoir is an elevated concrete reservoir and operates on a fill and draw scheme with the water coming from the Tolosa Well.

34. Existing Water Supply Service. LMWD operates a water supply system serving an estimated 122,800 people with a total of 27,585 active connections as of December 2008 in Tacloban City and the municipalities of Dagami, Palo, Pastrana, Sta. Fe, Tabontabon, Tanauan and Tolosa. Data on present water service situation in LMWD’s franchise area were generated by a WDDSP household survey using stratified random sampling with three hundred eighty four (384) respondents. Survey was conducted on groups with pipe water connection and those without. About 32% of survey respondents had piped water connection with the LMWD. Average consumption is 22 cubic meters. Of this, 23% provided water to neighbors or relatives; this was aside from sharing that occurred where there are multiple families in a household; some 7.5% of these cases were charged the commercial rate which is twice the residential rate. Issues on sufficiency and water quality were indicated for certain areas; additional sources were cited as shallow wells for other domestic uses; purified water refilling stations were the source of drinking water for 4.8% with an average cost of over P23 per day; 0.8% used pump to increase water pressure.

35. Overall, 88% assessed that water received from piped connection was sufficient for their needs. Respondents also gave the following rating for aspects of water

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 10 service: water pressure was considered poor (25%) to very poor (2.5%). An improvement in water availability was noted during the rainy season with over 98% indicating that water was available every day during this period. Aspects of water service that households wanted improved were led by water pressure (44.4%) followed by reduced water rates (19.7%); farther behind were complaints handling (8.5%), repairs (7.7%), quality of water (7.9%) and billing and maintenance at less than 3%. The concern on water pressure was due to intermittent water service, even for major subdivisions in Tacloban City. Aspects of water quality that were at issue were taste (8.2%), color (6.5%) and smell (4%). Boiling of drinking water was the only treatment (12%) reported by connected households.

36. Sixty-eight percent of the respondents did not have water connections with LMWD. On the other hand, 62% of non-connected interviewees got water from a household with a LMWD piped connection; in addition, 89% reported paying for supply of piped water from another’s connection, while 17% used public faucets. The next most common source was public shallow wells at 11.4%; less common were deep wells at 0.4%; a significant percentage relied on water vendors at 8.4% while 1% got water from open dug wells. Female-headed households relied on water vendors at a higher rate of 14% compared to 7.5% by their male-headed counterpart. Shallow wells led as a source for bathing (68%) and for gardening (83%) but only 20% used water from these for cooking. Close to 98% of non-connected households assessed over all quality of water from current source as extremely or moderately satisfactory but only 62% said source/s were sufficient all year round.

37. Collecting water was time consuming in Leyte; about 80% spent 0.5 – 1 hour and as many as 14.4% spent 2 to more than 5 hours collecting water daily. Bathing had the highest water use per household at an average of 28 gallons per day, followed by cleaning (13), gardening (9.3), cooking (4.2) and drinking (3.3). Adult male household members (43%) and children (24%) usually fetched water. Women (12%) and anyone available (21%) also helped.

38. Transportation and Communication. Tacloban City is accessible by air, land, and sea with an airport, bus terminals and a seaport. It is the aviation hub of the region with an airport located about ten kilometers from the city proper. Philippine Airlines (PAL) and Cebu Pacific have daily regular flight to and from Tacloban City. There are two bus terminals in the city, namely, Tacloban Bus Terminal and the Philtranco Terminal. The Tacloban Bus Terminal is the central station for all incoming and outgoing passenger vehicles to and from Manila, Cebu, Davao, and other towns in the provinces of Leyte and . The port of Tacloban is classified as a natural harbor and is the center for shipping. It is located on the northeastern part of the city proper and is approximately 200 meters from the central business district. All towns are accessible by land transportation such as small buses, jeeps, and motorcycles. Public utility jeeps are the common means of public transportation from these towns to Tacloban and vice-versa. Tricycles and pedicabs serve the Poblacion barangays while tricycles and single motorcycles serve the rural barangays.

39. Telecommunication facilities in Leyte have greatly improved since the early 90’s with most municipalities linked by phone lines. Telephone services for direct national and international dialing are available. Recently, communication within Tacloban City was further improved with the introduction of digital line using optic cables. Public international and domestic calling booths abound in the city. At least two private companies are already providing internet connections. Two of the largest cellular phone companies are also operating in the city.

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40. Power Supply. Leyte is known as the geothermal capital of the Philippines. Abundant supply of power comes from the Tongonan Geothermal Power Plant of the National Power Corporation (NPC) in Kananga, Leyte. Power for Tacloban City, Palo, Pastrana, and Sta Fe is distributed by Leyte II Electric Coperative, Inc. (LEYECO II). All barangays within Tacloban city have already been energized. The Tongonan Geothermal Plant, through the Don Orestes Romualdez Electric Cooperative (DORELCO), also provides electricity to Dagami, Tabontabon, Tanuan, and Tolosa.

D. Socio and Cultural Resources

41. Population and LMWD Service Area. In 2007, the subproject area has a total population of 410,934 representing 23.9% of Leyte Province. Tacloban City’s population is 52.6% of the subproject area population. The present franchise area of LMWD includes 1 city and 7 municipalities in Leyte, namely: Tacloban City, Dagami, Palo, Pastrana, Sta. Fe, Tabontabon, Tanauan and Tolosa. The franchise area comprises 370 barangays while the existing service area encompasses only 261 barangays. In Tacloban City, 128 barangays out of 138 are included in the service area. Table 3 presents the historical population figures.

42. Public Health and Sanitation. Health facilities in Tacloban City include 4 hospitals, 21 health stations, 15 family planning clinics, and 6 main health centers. The available data on morbidity from the City Health Office ranked diarrhea as second in the 1997 ten leading causes of morbidity. Towns of the subproject area are served by their respective rural health units manned by a municipal health officer, nurses, and midwives.

Table 3: Historical Population and Growth Rates Growth Historical Population Rates (%) 2000 2007 2000-2007 LEYTE 1,592,336 1,722,036 1.12 Tacloban City 178,639 216,359 2.77 Dagami 29,240 32,098 1.34 Palo 47,982 56,781 2.43 Pastrana 14,351 16,008 1.57 Sta. Fe 15,042 15,905 0.80 Tabontabon 8,372 9,518 1.85 Tanauan 45,056 47,426 0.74 Tolosa 14,539 16,839 2.12 Source: National Statistics Office

43. Education. Tacloban City has 9 tertiary schools offering tertiary level education. Three are government-owned, while 6 are privately-owned. Palo, Tabontabon, and Tanauan also have schools offering tertiary level education. Tabontabon has a nursing school, while Tanauan a technical school. Other towns of the subproject area do not have schools offering tertiary level education. Students have to go to Tacloban City for their tertiary education.

44. Socioeconomic Survey. WDDSP conducted a household survey to get a good insight into the socioeconomic situation specific to the project area. Using stratified random sampling, three hundred eighty four (384) respondents were interviewed for a 95% level of confidence and standard deviation of 0.1. Based on this survey, average household size was 5.7 with 16% having more than 9 members as against a

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 12 provincial average household size of 4.92% for 2007. Seventeen percent were women-headed households. Highest grade of household head was elementary (33%) and high school (41%) level; respondents were distributed under a wide occupational range including farming, business, street vending, and government and private employment; 5% was unemployed. Majority of households belonged to the Waray ethnolinguistic group although over 10 other groups were represented in the survey sample which may be reflective of emerging intermarriage and migration patterns. Sole occupancy of dwelling was most common at 95% with 89% owning the house they occupied while only 42% owned the lot the house was built on.

45. Average monthly income was P13,080; 13% had incomes of less than P5,000 and another 40% had an income range of P5,000 – P9,999 just within or above the poverty threshold for Leyte. Estimated poverty threshold for 2007 was P6,101 for a household of 5 members. This was computed from the official annual per capita poverty threshold for Leyte for 2007 which was pegged at an average of P12,951 for urban and rural areas. About 20% spent less than P5.000 per month while most (43%) spent about P5,000 – P9,999 –. Over 55% were unable to save while most of those who could had less than P1,000 in savings per month. Television (85%), cellular phones (69%) and refrigerators (48%) were the most common valuable items of the household.

46. Over 70% of the sample households had pour-flush toilets with septic tanks but consultations indicate that many were old and not built to standard. The next most common type of toilet system was pour-flush connected to pit at 15%; at least 1.3% connected directly to the drainage system while some 7% had closed pits; 4.2% of households shared toilets while another 0.3% used public toilets; 2.1% did not have toilets and defecated in open spaces such as along river banks, shorelines or drainage or irrigation canals, or in empty lots; most (89%) including those without septic tank were satisfied with their current toilet system. All survey respondents reported washing hands before cooking, before eating and after using the toilet. On the other hand, about 83% said they washed hands befre breastfeeding, 95% after washing the children from the toilet, 94% before feeding children, and 85% after changing diapers. Non-connected households transported water from source using open (27%) and closed containers (53%) or a combination of both. At least 18% treated drinking water by boiling. Some 14.4% of non-connected households reported having had a member who suffered from a water-related disease during the past year with children (10%) being more vulnerable to diarhea.

47. Respondents sought medical services primarily from public facilities such as medical centers (27.5%), government hospitals (37%), and secondarily from private hospitals (10.7%) and private clinics (6.5%). Sixty percent of survey respondents were satisfied with available health services in their locality, with women slightly more satisfied than men. Over 62% of both female and male-headed households had access to Philhealth or had assistance on health expenses; 16% relied on self- medication;. Significantly more women-headed households (25%) relied on self- medication than men-headed (14%) households.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

48. A comprehensive screening for environmental impacts is made through a review of the parameters associated with water supply projects against the components of the proposed LMWD subproject and the environment where the NRW activities will

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 13 be implemented. A screening checklist was developed from various sources such as DENR checklists, ADB’s “Rapid Environmental Assessment (REA) Checklist, and WB Environmental Source Book. Some items of the checklist may not be applicable to this particular subproject. However, they are included in the discussions to indicate that their applicability was reviewed in the environmental impact screening process. This will help identify which topics do not require further attention.

49. The assessment is made on the following phases of the subproject: (i) Pre- construction, (ii) Construction, and (iii) Operation and Maintenance. Results of the environmental impacts screening are summarized in Table 4, while the discussions of each issue are presented in the succeeding sections. In Table 4, impact types and magnitudes are indicated for both impacts without the mitigating measures and the resulting situations when mitigating measures will be implemented. A summary of the environmental impacts that should be carried to the section for Environmental Management Plan (EMP) is presented at the end of this section as Table 5.

50. Environmental impacts arising from decommissioning of facilities were also reviewed but are no longer further discussed due to the following: (i) decommissioning of facilities is a remote possibility since these will serve growing urban areas and such facilities are critical for sustaining those areas, (ii) residual waste cleanup is not a major concern since the facilities are not industrial manufacturing plants with potential problems for toxic and hazardous wastes, and (iii) solid wastes from decommissioning is also not a major concern since the structures are mostly made of reinforced concrete and the solid wastes are mostly recyclable materials such as broken concrete materials, reinforcing steel bars used in the structures, structural steel, roofing materials, electrical wires, etc.

Table 4: Summary of Environmental Impacts Screening for LMWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Encroachment to environmentally sensitive areas na na Impacts and risks to biodiversity conservation na na Encroachment to historical areas and cultural areas ∆ − ∆ Potential competing use of water resource na na Potential nuisance and problems to the public  − ∆ Loss of assets (IR concerns) na na

CONSTRUCTION PHASE Modification of construction site topography na na Removal of Trees na na Displacement of Rare or Endangered Species na na Soil erosion and sediments of construction sites ∆ − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Oil and other hazardous materials releases ∆ − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

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Environmental Impacts and Risks Without With Mitigation Mitigation

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Increase employment opportunities ∆ + ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

A. Design/Pre-Construction Phase Considerations

51. Encroachments. Subproject’s activities will be in existing pipeline networks. As described in the environmental baseline, these sites are residential, commercial, institutional, and agricultural landscapes. There are no known archaeological and cultural assets in these sites. Nevertheless, precautions will be taken to avoid potential damage to any archaeological and cultural assets by inclusion of provisions in tender and construction documents requiring the contractors to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

52. Impacts and risks to biodiversity conservation. The issue on impacts and risks to biodiversity conservation is not applicable since the LMWD subproject’s activities will be in existing pipeline networks. The sites are not in undisturbed landscapes and over the years the ecological changes due to human activities in the area have resulted to the present residential, commercial, institutional, and agricultural landscapes.

53. Competing Use of Water Resource. On resource use, there will be no water use conflict since the National Water Resources Board (NWRB) has already granted to LMWD water rights for the withdrawal of 86,400 cumd from the Binahaan River. The subproject will use the existing water sources.

54. Nuisance and Problems to the Public. Potential nuisances and problems to the public during construction can best be avoided if proactively addressed during detailed design and pre-construction phase. Consultation and information dissemination to potentially affected people shall be done during detailed design. Tender documents shall include provisions addressing potential nuisances and problems to the public during construction. These include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience. In addition, prior to site works, the contractor shall coordinate with the appropriate agencies in the procurement of required clearances with regard to electricity, telephone lines and other utilities/structures that may be affected by construction activities. These shall all be reflected in the construction contracts.

55. Loss of Assets. Loss of assets is not an issue since the proposed NRW activities will include pipe replacements in existing pipeline network and not new pipeline alignments.

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B. Construction Phase Environmental Impacts

56. Site Preparation. This is not an issue since proposed NRW construction activities will be replacements of existing pipelines and service lines. There will be no wide areas that will require considerable earthwork activities.

57. Soil Erosion and Sediment of Construction Sites. This is not an issue since proposed NRW construction activities will be replacements of existing pipelines and service lines. There will be no wide areas that will be exposed to significant soil erosion situation.

58. Nuisance/ public inconvenience in pipelaying. Public inconvenience could arise in pipelaying works due to prolonged period of water supply service interruptions. Dumping of construction materials and solid wastes in watercourses will also cause nuisance to the public aside from affecting water quality and the flow regime.

59. Mitigation. The construction contractor shall be required: (i) to do installation or replacement of pipes within the shortest time possible to minimize water supply cut- off periods and/or use of night time schedules, as well as announcement of water supply interruptions two to three days prior to actual cut-off; and (ii) not to dump earth, stones, and solid wastes in watercourses to avoid adverse impact on water quality and flow regime.

60. Construction Noise. Potential sources of noise are the construction equipment, such as trucks and other equipment, which can generate noise of 80 dB(A) from a distance of 30 meters. Loud noise sources such as blasting are not expected in the construction activities. The issue is mostly applicable in pipelaying activities near residential areas and schools.

61. Mitigation. Nuisance from equipment noise can be mitigated with the use of sound suppression devices for the equipment. In areas near any house or noise- sensitive sites, noisy equipment shall not be operated during nighttime to early morning (22:00H – 06:00H). Noise levels due to construction activities should not exceed 50 dB(A) near schools, 55 dB(A) in other areas, and 45 dBA during nighttime. Workers using noisy equipment shall be provided with earplugs.

62. Local Air Pollution Due to Construction Activities. Dust generation from trenching activities during dry periods will be an air pollution problem. Intermittent episodes of air pollution from smoke belching equipment may also occur. This issue is considered significant during dry periods. Another potential source of air pollution are large stockpiles of construction materials such as soil and aggregates. Without any mitigating measures, dust generation could be significant during dry periods.

63. Mitigation. The contractor should be required to perform regular water spraying of the sites during dusty periods in order to reduce the generation of dusts. He will also be required to use equipment that are properly maintained and are not smoke belchers. Covers for stockpiles that will be left idle for a long time shall be required. Covers will prevent dust generation due to wind action. Trucks transporting loose construction materials such as sand, gravel, spoils, and the like shall be provided with tarpaulin cover.

64. Oil and other hazardous materials releases. Heavy equipment and vehicles will be used in the various construction activities for the LMWD subproject. Aside from fuel, oil, and grease, the activities may also involve the use of paints and solvents. Although there is potential for accidental releases of these materials, the issue is not

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 16 considered significant since expected quantities will be relatively small. However, as part of good construction practice, the contractors will be required to implement an awareness program for all workers regarding the prevention and management of spills and proper disposal of used containers. Fuel and oil shall be stored in a designated secured area provided with an impermeable liner to prevent the accidental spills from seeping into the ground.

65. Vehicular Traffic Congestion and Public Access. Construction activities, such as pipelaying, may cause traffic congestion in heavily traveled highways and narrow streets. It may hinder public access. Pipelaying activities in the streets of Tacloban City is expected to cause traffic congestion since there are lots of vehicles using the streets and existing pipeline alignment might be within the road widths. Installation of secondary pipes crossing the roads to the other side may cause the temporary closure of half the road and will lead to traffic congestion. This issue is therefore considered significant.

66. Mitigation. Contractors shall be required to: (i) prepare a traffic plan; (ii) closely coordinate with local authorities for the closure of roads or rerouting of vehicular traffic; (iii) consider the schedules of local activities with heavy presence of people such as festivities, processions, parades, etc. in the timing of construction activities; (iv) do proper stockpiling and immediate disposal of spoils to avoid nuisance and traffic/access obstruction; and (v) do immediate restoration of roads and other areas affected by pipe laying, construction activities and vehicles..

67. Hazards to public due to construction activities. Construction activities, such as pipelaying, along the roads may result to hazardous driving conditions since vehicles would still be using the road while construction activities are ongoing. The movement of construction vehicles and excavations would pose some hazards to the driving public. There is also risk of people falling down in open trenches since pipelaying trenches are normally left uncovered until pipeline testing is completed.

68. Mitigation. The contractor shall be required to implement a road safety plan incorporated in his construction schedule. Safety measures shall be implemented including: (i) warning signs to alert people of hazards around the construction sites, (ii) barricades, and (iii) night lamps for open trenches.

69. Pollution and Health Risk due to Workers Camp. The contractor is expected to erect temporary workers’ camps during construction of the LMWD subproject. Improperly managed silt runoff and sanitary wastes from these camps may reach nearby areas. Poor sanitation and lack of proper solid waste management at the worker’s camp will provide the conditions for vermin and other disease vectors to easily multiply and infect the workers. This may lead to the transmission of diseases from the workers camp to other areas. These conditions will increase public health risk.

70. Mitigation. The construction contractor shall be required to: (i) install proper sanitary facilities to prevent the indiscriminate discharge of sanitary wastes at the camps surroundings, (ii) implement proper solid waste management, and (iii) prevent surface runoffs from flowing into the workers camps to avoid carrying away any contaminants. The contractor shall be required to use temporary diversion drains, catch drains, and silt-traps at these camps.

71. Improper Closure of Construction Sites. Construction activities will generate construction solid wastes after completion of work. This may include used wood materials, steel works cuttings, paint and solvents containers, used oil from

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 17 equipment, unused aggregates, etc. If not remove from the sites after completion of the construction activities, these solid wastes will cause aesthetic problems and some will be potential sources of contaminants for surface runoffs.

72. Mitigation. After completion of work activities, the contractor shall be required to remove the construction wastes from the sites before finally leaving. The entire site must be free of any construction solid wastes. Implement the required surface restoration.

73. Increase Employment Opportunities at Work Sites. Various construction activities for LMWD’s proposed NRW activities will definitely require a considerable number of workers. The impact would be beneficial and significant since employment opportunities in the area will increase.

74. Enhancement. Whenever possible, the contractor shall be encouraged to use the available local labor for these construction activities. The recruitment of workers shall be coordinated with the local officials.

C. Operation Phase Environmental Impacts

75. Health hazard due to delivery of poor water quality. Delivery of poor water quality will increase the health risk to water consumers. Threats to water quality are always present in all components of a water supply system, from the raw water sources up to the service connections. Threats of contamination in water sources may be due to the presence of bacteria, viruses, protozoa, or chemicals. This raises the need to provide a secure barrier to post-treatment contamination as the water is transported to the consumer. LMWD should therefore manage the environmental risk to its water supply system. Failure to implement the appropriate management measures may result to adverse consequences threatening public health such as the case of a microbial outbreak. This issue is very important to LMWD since its raw water source is surface water which can easily be contaminated.

76. Mitigation. Delivery to customers of poor water quality from existing water sources can be prevented in a broader scale by implementing a water safety plan as advocated by WHO. The 2007 PNSDW also advocates preparation of a water safety plan. A water safety plan shall enable LMWD to (i) prevent contamination of its water sources, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re- contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the LMWD in applying best practices in ensuring delivery of potable water to its consumers.

77. For controlling microbial contamination, LMWD shall continue using chlorine with its existing water sources. The standards for chlorine residual of the 2007 PNSDW are: (i) 0.3 mg/l minimum for detection at the farthest point of the distribution system and (ii) 1.5 mg/l maximum for detection at the farthest point of the distribution system.

78. Pollution from increased generation of sewage and sullage. Increasing the water supply to the service area through recovery of NRW will also increase the generation of sewage and sullage since most of the water used by consumers will become wastewater from the toilets, kitchens, and laundry areas. This wastewater will contribute to pollution of the surrounding areas. Without a mitigating measure, this impact would be significant.

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79. Mitigation. Wastewater from the toilets, kitchens, and laundry areas will normally be handled by the individual septic tanks system of the water consumers. The septic tank system will: (i) treat the wastewater and reduce the pollution potential and (ii) reduce the people’s exposure to untreated domestic wastewater. This will help in interrupting disease transmission.

80. Increase employment opportunities. This issue is considered less significant for the LMWD subproject since the expected number of additional workers will be small with the NRW activities.

81. After impacts screening, Table 5 lists the environmental impacts and risks that requires mitigation and shall be carried to the EMP Section.

Table 5: Environmental Impacts and Risks for Inclusion in EMP of LMWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Potential nuisance and problems to the public  − ∆

CONSTRUCTION PHASE Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

82. Information disclosure, public consultation, and public participation are part in the overall planning and design process for the proposed LMWD’s water supply subproject. These are intended to achieve a meaningful stakeholders’ consultation and ensure subproject success.

83. During the planning phase and the conduct of surveys, information regarding the proposed water supply subproject were disclosed to the public such as during the initial WDDSP survey in April 2009 and during the conduct of a socioeconomic survey between April to May 2009. These surveys were occasions not only for project disclosure but also for stakeholder identification and to scope issues and concerns on water and sanitation. Some 384 households in LMWD’s area were informed about the proposed subproject and interviewed for socioeconomic data.

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Majority of the survey respondents (57.3%) are in Tacloban City. Survey respondent also included those households without water service connection with LMWD.

84. Key informant interviews and focus group discussions (FGDs) with barangay and city officials were conducted to get their cooperation and gather information relative to poverty incidence and concentration, and identify needs and recommendations on water. Participants in the key informant and FGDs included the following: (i) LMWD staff and management, (ii) local health officials, (iii) gender focal persons of LGU, (iv) city and barangay officials, (v) LGU planning offices, (vi) local environment offices, and (vii) urban poor non-government organizations (NGOs).

85. Public Consultation. Last 22 July 2009, LMWD conducted an initial public consultation and formally discussed the proposed water supply subproject with the stakeholders and requested their views. A total of 4 stakeholders’ representatives participated. Stakeholders were encouraged to raise their social and environmental issues. Participants included: (i) concerned individuals, (ii) LGU planning official, (iii) EMB-DENR official, (iv) church official, and (v) WD staff and management. Stakeholders expressed support to the LMWD subproject. Summary of the consultation outcomes is presented in Table 6, while the documentation is presented at the annexes. The water treatment plant and transmission line were part of the consultation topics since these were components of the subproject during the initial stage of the study. LMWD decided later in March 2010 to exclude these components from the subproject and focus only on NRW components.

86. Future Disclosure and Consultations. With the aim of increasing public consultation and participation, LWUA and LMWD will again conduct public consultations and information disclosure during detailed design. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. Views of the stakeholders will be considered in the overall design process. Stakeholders’ consultations shall be continued throughout the duration of the construction phase. LMWD shall keep records of environmental and social complaints, received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

Table 6: Summary of Consultation Outcomes Group Represented Issues/ Concerns Raised Project’s Response

Tacloban City City Will the transmission pipeline proposed transmission pipeline Planning and follow the route suggested will pass along the highway in Development previously in the regional order to serve more Coordinator (CPDC); development plan by passing households along the way 1 attendee through ricefields in Sta. Fe instead of the highway Tacloban City CPDC; CPDC asked if there is any way LMWD will approach CPDC in 1 attendee that they can help LMWD on the future for help as the need this project arises

DENR-EMB Region-8; reminded LMWD that it should LMWD is aware of the 1 attendee apply for an Environmental requirements for an ECC and Compliance Certificate for its surely LMWD will apply for one proposed WTP as it did with the previous WTP LGU-Tanauan; will the new transmission present system in Tanauan 1 attendee pipeline bring more water to could easily handle any Tanauan additional requirements in the

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Group Represented Issues/ Concerns Raised Project’s Response

area. There is no need to bring more water to Tanauan from the new transmission pipeline Archdiocese of Palo; Catholic church expressed LMWD welcomed the 1 attendee appreciation of the proposed expression of support project since it will bring more potable water to Tacloban City All Stakeholders Need to visualize the proposed LMWD explained the proposed system system using maps All Stakeholders expressed their appreciation of LMWD welcomed the the proposed project hoping expression of support that it will solve Tacloban City’s inadequate capacity for potable water production

VII. GRIEVANCE REDRESS MECHANISM

87. Local grievance redress mechanism is important in the implementation of the proposed LMWD subproject since any complaints and concerns of the affected people must be address promptly at no costs to the complainant and without retribution. This mechanism shall be disclosed in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc Water District Environmental Complaints Committee (WDECC) for expeditious resolutions to the complaints. Complaints during the operation phase can be brought to the attention of LMWD or DENR-EMB.

88. LMWD Environmental Complaints Committee. LMWD shall form the WDECC to be chaired by the Water District-Project Implementation Unit (WD-PIU) head. Members shall include the following: (i) contractor’s highest official at the site such as Construction Manager or Construction Superintendent, (ii) barangay officials, (iii) concerned NGOs, and (iv) women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the civil works contract. Expeditious resolution of complaints during construction is important since activities are sometimes continuous and can easily change the landscapes within a week. For the quick filing of complaints, the WDECC shall prepare a form to be used for the filing of grievances/complaints. The use of form will also facilitate the filing of complaints by illiterate persons.

89. The steps to be followed in filing complaints and the procedures for redress are the following: (i) complainant shall provide the background and file the complaint verbally or in writing to WDECC. The WDECC secretary shall assist the complainant in filling-up the complaint form; (ii) within 2 working days, the WD-PIU head, contractor’s representative, and complainant shall discuss if the complaint can be resolved without calling for a WDECC meeting; (iii) if the complaint cannot be resolved by the WD-PIU head and contractor’s representative, a WDECC meeting shall be called with the complainant to resolve the complaint within 5 working days; (iv) if the complaint cannot be resolved, the complainant shall raise the issue to the barangay officials where barangay rules and regulations are followed for the amicable settlement of disputes at the barangay level without judicial recourse; and (v) if the complaint cannot be resolve at the barangay level, the complainant shall seek recourse with the courts.

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VIII. ENVIRONMENTAL MANAGEMENT PLAN

90. This section addresses the need for mitigation and management measures for the LMWD subproject. Information includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up is presented in the implementation arrangement and discusses the roles during implementation and the required monitoring. It also outlines the requirements and responsibilities during pre- construction, construction, and operation phases.

A. Environmental Mitigation

91. Table 7 presents the information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures. Details of mitigating measures are already discussed in Section V where the need for mitigation of each impacts was determined in the screening process.

Table 7: Environmental Mitigation Plan of LMWD Subproject Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision PRE-CONSTRUCTION PHASE Excavation Potential Tender documents shall include Pipeline Part of detailed Design requirements damage to a provision that will require trenches, design cost Consultants / archaeological construction activities to be civil works LWUA PMU and cultural stopped immediately upon excavations assets discovery of any archaeological and cultural relics and authorities will be informed promptly Social and Potential Consultation with the affected Pipelines Part of detailed LMWD PIU, community nuisance and communities regarding the routes design cost Design concerns problems to the expected impacts and proposed Consultants / public mitigation measures of the LWUA PMU project; Tender documents shall include provisions addressing the potential nuisances and problems to the public during construction phase CONSTRUCTION PHASE Pipelaying Nuisance / Minimize water supply cut-off Pipelines Incorporated in Contractor / inconvenience periods and /or use of nighttime routes, construction LMWD PIU, to the public schedules, as well as contract Supervision announcement of water supply Consultants interruptions two to three days prior to actual cut-off; no dumping of earth, stones, and solid wastes in watercourses Pipelaying Nuisance from Consultation with affected areas; Pipelines Incorporated in Contractor / and other noise of not to operate noisy equipment routes construction LMWD PIU, civil works construction during nighttime (22:00 – 06:00); contract Supervision equipment sound suppression for Consultants equipment; ear plugs for workers Pipelaying Air pollution Water spraying for dust control; Pipelines Incorporated in Contractor / and other due to construction materials with routes construction LMWD PIU, civil works construction potential for significant dust contract Supervision activities generation shall be covered; Consultants tarpaulin cover for trucks transporting loose construction materials; not smoke belchers equipment Pipelaying Traffic Close coordination with local Pipelines Incorporated in Contractor / and other congestion and authorities in road closure and routes construction LMWD PIU, civil works hindrance to traffic rerouting; contractor’s contract Supervision access traffic plan; proper stockpiling of Consultants

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision materials and immediate disposal of spoils; immediate restoration of roads and affected areas Pipelaying Pollution and Proper camp sanitation; Workers Incorporated in Contractor / and other health risks installation of sanitary facilities; camp construction LMWD PIU, civil works due to workers solid waste management; contract Supervision camp surface runoffs control such as Consultants temporary diversion drains, catch drains, and silt-traps Pipelaying Hazard to Implement road safety plan and Pipelines Incorporated in Contractor / and other public due to safety measures including routes construction LMWD PIU, civil works construction warning signs to alert people of contract Supervision activities hazards around the construction Consultants sites, barricades, and night lamps for open trenches in pipelaying Rehabilitation Improper Removal of all construction Pipelines Incorporated in Contractor / and closure closure of wastes and implement surface routes construction LMWD PIU, of construction restoration contract Supervision construction sites Consultants sites Pipelaying Increase Contractor required to give Pipelines No cost Contractor / and other employment preference to local labor; workers routes LMWD PIU, civil works opportunities recruitment to be coordinated Supervision with local officials Consultants OPERATION PHASE Water Health hazard Water disinfection using chlorine; Pipelines Part of operation LMWD / LWUA production due to delivery water safety plan implementation & maintenance of poor water costs quality Water Pollution from Septic tanks system of water Subproject Cost of water Water consumer/ consumption increased consumers water consumers LGU generation of supply sewage and service area sullage

92. Although details of the required mitigating measures are already discussed in the screening for impacts, the following items are discussed further to highlight their importance: (i) tender documents and construction contracts, (ii) contractor’s environmental management plan, (iii) construction site management plan, (iv) water safety plan, (v) source protection study, and (vi) unanticipated environmental impacts.

93. Tender Documents and Construction Contracts. Environmentally responsible procurement advocates the inclusion in construction contract documents the provisions addressing the management of environmental impacts and risk during construction. This includes the contractor’s submittal of a Contractor’s Environmental Management Plan (CEMP). Tender documents and construction contracts shall therefore include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (vii) public safety and convenience.

94. Contractor’s EMP. During construction, each contractor will be guided by its detailed CEMP. This shall be based on the LMWD subproject’s EMP with details on staff, resources, implementation schedules, and monitoring procedures. The agreed CEMP will be the basis for monitoring by PMU, LMWD PIU, and other monitoring parties. Inclusion in construction contract documents the provisions requiring the contractor to submit a CEMP is important since the contractor will be legally required to allocate a budget for mitigation measures implementation. The CEMP will allow LMWD’s construction supervision engineer to focus on what are specific items

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 23 expected from the contractor regarding environmental safeguards on a day-to-day basis. With the CEMP, LMWD can easily verify the associated environmental requirements each time the contractor will request approval for work schedules.

95. The CEMP shall be prepared by all contractors before the start of the construction works and shall be approved by LMWD’s PIU. This requirement shall be included in the construction contracts. It shall provide details on specific items related to the environmental aspects during construction. It shall include specifications on requirements for dust control, erosion and sediment control, avoidance of casual standing water, management of solid wastes, workers’ camp sanitation, pollution from oil, grease, fuel spills, and other materials due to the operation of construction machineries, safety and traffic management, avoidance of inconveniences to the public, air and noise pollution control. It shall also include guidance on the proper design of the construction zone, careful management of stockpiles, vegetation, topsoil, and vehicles and machinery.

96. Water Safety Plan. LMWD shall manage the environmental risk to its water supply system in a broader scale. As previously pointed out, the role of a water safety plan in addressing the risk cannot be overemphasized. This is an approach advocated by WHO for ensuring the delivery of safe drinking water to the consumers. Its need is also reflected in the 2007 PNSDW. The water safety plan shall enable the LMWD to (i) prevent contamination of its water sources water, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re-contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the LMWD in applying best practices in ensuring delivery of potable water to its consumers.

97. Source Protection Study. An input to the preparation of the water safety plan is the source protection study. This includes preparation of a source water assessment. The study will help identify risk to the water supply system. A source water assessment is an evaluation of how susceptible a source may be to potential sources of contamination. Potential contaminant sources that could adversely affect the quality of water supply source are identified.

98. Unanticipated Environmental Impacts. Where unanticipated environmental impacts become apparent during project implementation, LMWD shall prepare a supplementary environmental assessment and EMP to assess the potential impacts and outline mitigation measures and resources to address those impacts.

B. Environmental Monitoring

99. Table 8 presents the information on: (i) aspects or parameter to be monitored, (ii) location where monitoring is applicable, (iii) means of monitoring, (iv) frequency of monitoring, (v) responsibility of compliance monitoring, and (vi) cost of monitoring. The PMU shall prepare quarterly environmental monitoring reports to be submitted to LWUA management detailing the status of mitigating measures implementation.

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Table 8: Environmental Monitoring Plan of LMWD Subproject Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility PRE-CONSTRUCTION PHASE Specific Pipeline Verify draft and Twice – draft Design LWUA PMU Part of project provision in trenches, civil final documents and final consultants management in tender works documents detailed design documents on excavations (minimal cost) archeological/ cultural relics Consultation Pipelines Verify meetings After LMWD, LWUA PMU Part of project meetings; routes documentation; completion of Design management in Specific Verify draft and meetings; consultants detailed design provisions in final documents Twice – draft (minimal cost) tender and final documents on documents nuisance & problems to public CONSTRUCTION PHASE Water supply Pipelines Visual Daily Contractor Construction Part of consultant’s interruptions; routes inspection of supervision construction materials and sites; work consultants, supervision solid wastes schedules LMWD PIU contract; minimal dumped in verification cost to LMWD PIU watercourses Noise levels not Pipelines Use of sound Daily Contractor Construction Part of consultant’s to exceed 50 routes levels meter supervision construction dBA near consultants, supervision school, 55 dBA LMWD PIU contract; minimal in other areas, cost to LMWD PIU and 45 dBA during nighttime Dust, cover of Pipelines Visual Daily Contractor Construction Part of consultant’s stockpiles, routes inspection of supervision construction smoke belching sites consultants, supervision LMWD PIU contract; minimal cost to LMWD PIU Road closure Pipelines traffic plans weekly Contractor Construction Part of consultant’s and traffic routes verification supervision construction rerouting; consultants, supervision materials LMWD PIU contract; minimal stockpiles; road cost to LMWD PIU restoration Sanitary toilets, Workers camps Visual Once before Contractor Construction Part of consultant’s garbage bins, inspection of start of supervision construction runoff controls camps construction consultants, supervision and once LMWD PIU contract; minimal monthly cost to PIU Road safety Pipelines Visual Daily Contractor Construction Part of consultant’s plan; sign, routes inspection of supervision construction barricades and sites consultants, supervision night lamps LMWD PIU contract; minimal cost to LMWD PIU Construction Pipelines Visual Once before Contractor Construction Part of consultant’s wastes routes inspection of final stage of supervision construction sites demobilization consultants, supervision LMWD PIU contract; minimal cost to LMWD PIU Number of local Pipelines Verification of Once a month Contractor LMWD PIU No cost labor employed routes contractor’s records OPERATION PHASE E. Coli bacteria; Pipelines, Water sampling Monthly for LMWD LWUA Part of LMWD’s PNSDW reservoirs, and and laboratory bacteria; operation cost physical & pumping test annual for (USD300 /year) chemical stations physical & chemical Septic tank of Subproject Visual Once a year Water LGU Minimal cost water water supply inspection of consumer consumers service area sites

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100. Project Performance Monitoring. Project performance monitoring presents the desired outcomes as measurable events by providing parameters or aspects that can be monitored and verified (Table 9). Tendering process advocating environmentally responsible procurement is a desired outcome during the pre- construction phase. This can easily be verified by checking if EMP requirements are incorporated in construction contracts. Construction phase desired outcomes include effective management of environmental impacts and reduce risk to public. For the operation phase, LMWD’s water supply system must meet the drinking water standards (2007 PNSDW) for bacteria count (E. coli), color, pH, turbidity, dissolved solids, hardness, alkalinity, manganese, iron, fluoride, chloride, sulfates, magnesium, calcium, carbonates, and bicarbonates.

Table 9: Project Performance Monitoring of LMWD Subproject Aspects / Means of Frequency Implemen- Compliance Monitoring Desired Outcomes Parameters Monitoring tation Monitoring Cost to be monitored PRE-CONSTRUCTION Detailed design is EMP Verify detailed Two reviews: LMWD, LWUA PMU Minimal environmentally requirements design (i) draft Design cost responsive incorporated documents; detailed consultants in detailed EMP design design requirements documents reflected in and (ii) prior to tender approval of documents final documents Tendering process EMP Verify Prior to LMWD PIU LWUA PMU Minimal advocates requirements construction finalization of cost environmentally incorporated contract construction responsible in construction documents; contract procurement contracts documents CONSTRUCTION PHASE Effective management Number of Verification of Once a month Contractor Construction Part of of environmental public contractor’s supervision consultant’s impacts during complaints on records; consultants, construction construction construction LMWD LMWD PIU supervision activities coordination contract; with local minimal officials cost to LMWD PIU Reduce risk to public Number of Verification of Once a month Contractor Construction Part of during construction accidents contractor’s supervision consultant’s involving records; consultants, construction construction LMWD LMWD PIU supervision activities coordination contract; with local minimal officials cost to LMWD PIU OPERATION PHASE Water quality meets Required Water Monthly for LMWD LWUA Part of drinking water drinking water sampling and bacteria; LMWD’s standards quality laboratory test annual for operation parameters physical & cost chemical (USD300 /year)

C. Implementation Arrangement

101. This subsection presents the: (i) institutional set-up, (ii) implementation schedule, (iii) required clearances, and (iv) capability building

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102. Institutional Setup. LWUA is the executing agency, while LMWD is the implementing agency. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. LWUA will establish a Project Management Unit (PMU) to coordinate implementation at the national level, including procurement of goods, works, and services. A PMU staff shall be designated as the Environment Officer for the project. At the subproject level, LMWD will be responsible during construction and operation phase of the subproject. During the construction phase, LMWD shall establish a Project Implementation Unit (PIU) to work closely with LWUA’s PMU. A team of consultants will assist LWUA’s PMU and LMWD during pre-construction and construction phases.

103. Environmental Monitoring Reports. During the construction period, the construction supervision consultants, together with the PIU, shall prepare monthly environmental monitoring reports to be submitted to LMWD and the PMU. The contractor shall submit to the PIU a monthly environmental monitoring report. Based on the monthly reports, the PMU shall prepare semi-annual environmental monitoring reports which shall be submitted by LWUA to ADB.

104. The role of the WDECC during the construction phase is highlighted since it is an important aspect of the grievance redress mechanism in promptly addressing the public’s complaints about environmental performance of the subproject during execution of the construction activities.

105. Implementation Schedule. As presented in the project description, the LMWD subproject is scheduled to start on 2011 and to be completed on December 2016. LMWD shall ensure that construction contract provisions related to the EMP shall be included in the tendering process.

106. DENR Clearance. Under present Philippine regulations, there is no need for LMWD to apply for an Environmental Compliance Certificate (ECC) from the DENR for the proposed NRW activities since these are for pipe replacements of an existing system and not an expansion of the existing system.

107. Capability Building. WDDSP implementation will be supported by consulting services to be sourced in two contract packages: (i) project management advisory services, including detailed engineering designs, preparation of contract documents, support to water districts with construction supervision and quality control; and (ii) institutional development and capacity building for LWUA, the project management unit (PMU), and water districts.

IX. CONCLUSION AND RECOMMENDATIONS

108. Overall, the proposed NRW activities for LMWD under WDDSP offers huge benefits to Tacloban City by improving the supply of potable water thorough recovery of NRW.

109. The environmental screening process has highlighted the environmental issues and concerns of the proposed LMWD subproject. The screening has considered the fact that the proposed NRW activities are in existing pipeline networks which are residential, commercial, institutional, and agricultural landscapes. The proposed LMWD subproject is therefore not a new incursion to an ecologically untouched area.

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110. Based on the screening for potential environmental impacts and risks of the proposed LMWD subproject, there are no significant negative environmental impacts and risks that cannot be mitigated. With the EMP, the proposed LMWD subproject can be implemented in an environmentally acceptable manner. There is no need for further environmental assessment study. A full EIA is not warranted and the subproject’s environmental classification as Category B is deemed appropriate. The IEE shall therefore be finalized as the final environmental assessment document of the proposed LMWD subproject.

111. Implementation of the proposed LMWD subproject is hereby recommended with emphasis on the following: (i) EMP of LMWD subproject shall be included in the design process; (ii) Contracts of design consultants shall have provisions requiring the consultants to consider EMP recommendations in the design process; (iii) Tendering process shall advocate environmentally responsible procurement by ensuring the inclusion of EMP provisions in the bidding and construction contract documents; (iv) Contractor’s submittal of a CEMP shall be included in the construction contract; (v) Contract provisions on creation and operation of the WDECC shall be included in construction contracts; (vi) LWUA, with its regulatory function, shall ensure that capability building for LMWD shall be pursued; and (vi) LMWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

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REFERENCES

Asian Development Bank (ADB). 1993. Environmental Guidelines for Selected Infrastructure Projects. Office of the Environment, Asian Development Bank.

____. 1998. Environmental Assessment Requirements of the Asian Development Bank. Environment Division Office of the Environment and Social Development, Asian Development Bank.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Water Supply. ADB Online.

____. 2009. Safeguards Policy. ADB Online.

Department of Health (DOH). 2007. Philippine National Standards for Drinking Water.

Poyry-IDP Consult. 2010. Subproject Appraisal Report: Leyte Metro Water District. ADB TA7122-PHI. Manila.

World Bank (WB). 1991. Environmental Assessment Sourcebook Volume II – Sectoral Guidelines.

____ (WB). 2006. Philippine Sanitation Sourcebook and Decision Aid.

World Health Organization. 2005. Water Safety Plans. Geneva.

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ANNEXES

Sites Photographs

Minutes of Consultation Meeting

List of Participants - Consultation Meeting

Attendance Sheet - Consultation Meeting

Photographs - Consultation Meeting

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TYPICAL SITES FOR NON-REVENUE WATER ACTIVITIES

Photo No.1 – Typical narrow street (Barangay Siren, Tacloban City, Leyte)

Photo No.2 – Typical road of residential areas (Barangay Purisima, Tacloban City, Leyte)

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Minutes of LMWD’s Public Consultation/Meeting held at Hotel Alejandrino, Tacloban City, 22 July 2009

Opening/ Presentation:

The public consultation/meeting started around 9:50 A.M. with the GM of Leyte Metro Water District (LMWD) welcoming the participants and thanked them for positively responding to LMWD’s invitation. The GM informed the participants that the proposed project to be funded by ADB will significantly boost LMWD’s potable water production capacity and will involve (i) construction of a new Water Treatment Plant (WTP) in Barangay Hibunawon, Jaro, Leyte with a capacity of 30,000 m3/day of treated water, and (ii) installation of a new transmission pipeline from the new WTP down to Tacloban City but passing thorough the towns of Pastrana, Sta Fe, and Palo. Map of the proposed system was presented to the stakeholders.

Comments, Views, Issues and Concerns raised by Stakeholders

Mr. Hidalgo of Tacloban City City Planning and Development Coordinator (CPDC) asked if the proposed transmission pipeline will follow the route suggested previously by the regional development plan which will pass through ricefields in Sta. Fe instead of the highway in order to reach the proposed regional development center in the shortest line possible. The GM answered that the proposed transmission pipeline will not follow that route since the highway is a better route with more households that can be served.

Mr. Saceda of Environmental Management Bureau (EMB) Region-8 reminded LMWD that it should apply for an Environmental Compliance Certificate (ECC) for its proposed WTP. Mr. Calabia of LMWD answered that LMWD is aware of the requirements for an ECC and surely LMWD will apply for one as it did with the previous WTP.

Mr. Lanza of LGU-Tanauan asked if the new transmission pipeline will bring more water to Tanauan. The GM answered that the present system in Tanauan could easily handle any additional requirements in the area. Hence, the there is no need to bring more water to Tanauan from the new transmission pipeline.

The GM asked Reverend Murillo if he has any comments about the project. Reverend Murillo answered that he has none but expressed his appreciation of the proposed project since it will bring more potable water to Tacloban City and he will share this good news to his people.

Map of the entire LMWD system was presented to the participants to effectively assist the discussions. LMWD officials took turns in explaining to the participants the existing system and proposed project using the map laid out in the table.

Mr. Hidalgo expressed his appreciation of the proposed project since it will bring more potable water to Tacloban City and asked if there is any way that the CPDC can help LMWD on this project. The GM thanked Mr. Hidalgo of his offer and informed him that LMWD will approach CPDC in the future for help as the need arises.

WDDSP consultants asked the participants if they have any environmental or social issues regarding the proposed project. The participants answered that they have

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE LMWD 32 none for the moment and again expressed their appreciation of the proposed project hoping that it will solve Tacloban City’s inadequate capacity for potable water production.

Juliet Villegas of Poyry-IDP asked if the participants have additional issues to raise. After confirming that there were no more issues, LMWD’s GM closed the meeting by thanking everyone for participating in the public consultation.

Meeting Closed at 11:07 A.M.

List of Participants of Leyte Metro WD Public Consultation and Information Disclosure [22 July 2009]

Stakeholders/Participants:

• Rolando Hidalgo – CPDC, LGU-Tacloban City • Manuel J. Saceda, Jr. – Sr. EMS, DENR-EMB R8 • Elmer S. Lanza – Project Engineer – LGU-Tacloban • Rev. Bryan Murillo – Representative, Archdiocese of Palo

Leyte Metro Water District (MLWD) and WDDSP Team

• Nestor Villasin – General Manager, LMWD • Roy A. Urmeneta – OIC, Prod, LMWD • Gerundio N. Calambia – Sr. Water Util Dev’t Officer, LMWD • Ma. Teresa D. Pascua – PRO, LMWD • Fe C. Talacay – PRO-Aide, LMWD • M. Romero – PRO Staff, LMWD • Juliet Villegas – consultant, Poyry-IDP • Ruel Janolino – consultant, Poyry-IDP

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List of Participants of Leyte Metro WD Public Consultation and Information Disclosure [22 July 2009]

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PHOTOGRAPHS OF LMWD PUBLIC CONSULTATION MEETING

Photo No.3 – LMWD GM clarifying some points at public consultation meeting [22 July 2009]

Photo No.4 – Stakeholders representatives raising points at public consultation meeting [22 July 2009]

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Initial Environmental Examination

Initial Environmental Examination Project Number: 41665 April 2010

City of Koronadal Water District Water Supply Subproject

Republic of the Philippines: Water District Development Sector Project ADB TA 7122-PHI

The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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CURRENCY EQUIVALENTS (As of April 2010)

Currency Unit Philippines Peso (PHP)

$1.00 = PHP45.17

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank barangay village CDO Cease and Desist Order CEMP Contractor’s Environmental Management Plan CKWD City of Koronadal Water District cumd cubic meters per day DENR Department of Environment and Natural Resources DOH Department of Health ECC Environmental Compliance Certificate EIA environmental impact analysis EMB Environmental Management Bureau EMP environmental management plan FGD focus group discussion IA implementing agency IEE initial environmental examination IRR Implementing rules and regulations LCWD Legazpi City Water District LGU local government unit LMWD Leyte Metro Water District lpcd liters per capita per day lps liters per second LWUA Local Water Utilities Administration MLUWD Metro La Union Water District MOA memorandum of agreement NAV Notice of Alleged Violation NGO non-government organization NRW Non-revenue water NSO National Statistics Office NWRB National Water Resources Board PD presidential decree PENRO Provincial Environment and Natural Resources Office PHP Philippine peso PIU project implementation unit PMU project management unit PNSDW Philippine National Standards for Drinking Water PPTA project preparation technical assistance QMWD Quezon Metro Water District RA republic act TA technical assistance WD water district WDDSP Water District Development Sector Project WDECC Water district environmental complaints committee WHO World Health Organization

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Table of Contents

Page

EXECUTIVE SUMMARY ...... IV

I. INTRODUCTION ...... 1

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 1

III. DESCRIPTION OF THE PROJECT ...... 3 A. Proposed Water Supply System ...... 3

IV. DESCRIPTION OF THE ENVIRONMENT ...... 7 A. Physical Resources ...... 7 B. Ecological Resources ...... 8 C. Economic Development ...... 9 D. Socio and Cultural Resources ...... 11

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 13 A. Design/Pre-Construction Phase Considerations ...... 14 B. Construction Phase Environmental Impacts ...... 15 C. Operation Phase Environmental Impacts...... 18

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 20

VII. GRIEVANCE REDRESS MECHANISM ...... 22

VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 23 A. Environmental Mitigation ...... 23 B. Environmental Monitoring ...... 26 C. Implementation Arrangement ...... 29

IX. CONCLUSION AND RECOMMENDATIONS ...... 29

ANNEXES ...... 32

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List of Tables

No. Title Page

1 Annual Service Area and Served Population Projections 3 2 Wells Parameters 4 3 Deepwell Water Quality Data 4 4 Summary of Environmental Impacts Screening for CKWD Subproject 14 5 Environmental Impacts for Inclusion in EMP of CKWD Subproject 20 6 Summary of Consultation Outcomes 21 7 Environmental Mitigation Plan of CKWD Subproject 23 8 Environmental Monitoring Plan of CKWD Subproject 26 9 Project Performance Monitoring of CKWD Subproject 28

List of Figures

No. Title Page

1 Location Map viii 2 Schematic Drawing of the Proposed Water Supply System 5 3 Implementation Schedule 6

List of Photographs

No. Description Page

1 Pipeline route along highway in Barangay Carpenter and going towards 33 Barangay Concepcion of Koronadal City 2 Pipeline route along highway towards Barangay Saravia 33 3 CKWD Interim GM explaining some points at public consultation meeting 38 4 City Planning Office representative raising a point at public consultation 38 meeting

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EXECUTIVE SUMMARY

1. An environmental assessment was made for the proposed water supply system of the City of Koronadal Water District (CKWD). It is one of the 5 pilot subprojects to be funded by the Asian Development Bank (ADB) under the Water District Development Sector Project (WDDSP) of the Local Water Utilities Administration (LWUA). The City of Koronadal is located in the province of South , Republic of the Philippines (Figure 1). Relative to the significance of impacts and risks, this subproject is deemed Environmental Category B based on ADB’s environmental categorization and the type of assessment warranted only the preparation of an Initial Environmental Examination (IEE) report. This IEE was carried out under ADB’s TA 7122-PHI and in accordance with ADB’s Safeguards Policy (2009).

2. The assessment was also carried out within the policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines. These include the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The overall institutional framework is the LWUA and WD setup as defined by PD 198. Under WDDSP, LWUA is the executing agency, while WDs, such as CKWD, are the implementing agencies.

3. Subproject Description. The proposed CKWD subproject will help improve the living conditions of the urban population in the City of Koronadal and enhance competitiveness by developing water supply infrastructures. CKWD’s proposed water supply system components shall include the following: (i) construction of 4 new wells located in the Carpenter Hill wellfield; (ii) construction of 4 new well pump stations; (iii) provision of a hypochlorinator for each pump station; (iv) installation of new transmission and distribution pipelines; (v) construction of 2,200 cum. concrete ground reservoir at Barangay Sarabia; (vi) installation of 1,000 sets of new service connections; (vii) procurement of operational systems and equipment for non-revenue water (NRW); and (viii) land acquisition for the new well sites and reservoir site .

4. Environmental and Socioeconomic Conditions. Project implementation will not pose significant problems to the environment since present ecological setting of the areas for the proposed water supply system is residential, institutional, and agricultural landscapes dominated by coconut groves with patches of cornfields. Most areas immediately adjacent to the road where pipelines are to be laid are already occupied by residential and other structures, while areas beyond the road corridors are basically agricultural land. An important fact to consider is that the sites are not within undisturbed landscapes, but areas touched by human activities over the years resulting to their present residential, institutional, and agricultural landscapes.

5. Socioeconomic indicators revealed that CKWD’s service area has a growing urban sector. Its 2007 total population was 149,622. Population density was 5.4 persons per hectare. Urban component was 69,794 equivalent to 46.65 % of the total population. Koronadal’s water supply and sanitation infrastructures need a significant boost to cope up with the needs of a growing city. CKWD operates a water supply system serving an estimated 37,382 people with a total of 5,751 active connections covering 9 barangays in the city as of May 2009.

6. Impacts and EMP. Screening for environmental impacts is made through a review of the parameters associated with projects for piped water supply against the components of the

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD v proposed CKWD subproject. An important consideration in analyzing the environmental impacts of the proposed subproject is the fact that these are improvements and expansion of an existing water supply system in an already altered environment. Water pipelines, pumping stations, and reservoirs are not new incursions to ecologically undisturbed landscapes. In Barangays Carpenter Hill, Concepcion, and Sarabia, pipelines will pass through areas already occupied by people or influenced by long periods of human activities. The issue on impacts and risks to biodiversity conservation is not applicable to this subproject since the components will not be located in areas that are environmentally sensitive and have precious ecology.

7. During detailed design and pre-construction phase, potential nuisances and problems to the public during construction shall be addressed by inclusion in the tender documents of specific provisions addressing these issues. Although there are no issues related to historical and cultural assets, a precautionary measure shall be taken by inclusion of provisions in tender and construction contract documents requiring the contractor to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

8. Inventory of losses and required land for acquisition were made during the planning phase and shall be updated during detailed design phase as soon as the final pipeline alignments and final locations of facilities are available. A separate plan for compensation and other assistance corresponding to the losses of the affected people will be prepared. On resource use, CKWD shall apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict.

9. Adverse environmental impacts during construction are temporary, less than significant, and can easily be mitigated. There will be no massive construction activities that can damage the environment. Water supply pipelaying is a low impact construction activity since trench excavation is shallow with narrow width. Excavated soil is backfilled to the trench after pipelaying. Required structures are relatively small in size. Typical construction issues are manageable with the implementation of a site management plan for: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience.

10. Environmental problems due to operation of the proposed water supply system can be avoided by incorporating the necessary measures in the design and use of appropriate operational procedures. Public health risk due to delivery of poor water quality can be prevented in a broader scale by implementing a water safety plan as advocated by World Health Organization (WHO) and the 2007 Philippine National Standards for Drinking Water (PNSDW). Chlorinators will be used for controlling microbial contamination and ensure adequate residual disinfection. Liquid chlorine instead of chlorine gas will be used to reduce risk and improved safety of workers. Potential ground subsidence due to excessive groundwater pumping can be avoided by operating each well at a rate lower than its safe yield.

11. An Environmental Management Plan (EMP) is developed to effectively manage the environmental issues. The plan includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up discusses the requirements and responsibilities during pre- construction, construction, and operation phases. The plan includes tabulated information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures and monitoring.

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12. Consultation and Participation. Project planning and the subsequent IEE preparation for the proposed CKWD subproject recognized the need for public consultation and participation as central to effective environmental safeguard. Within the context of “meaningful consultation”, CKWD initiated a process of consultation during project preparation and intends to continue it during the construction phase. CKWD conducted an initial public consultations and information disclosure last 18 August 2009 with concerned individuals, barangay officials, non-government organizations (NGOs), local government unit (LGU) planning officials, and City Environment and Natural Resources Office (ENRO) officials. Details of the subproject components were presented to the stakeholders and their views on the respective proposals were requested. Stakeholders expressed support to the proposed subproject. Project disclosure activities were also done during the conduct of a socioeconomic survey between April to May 2009. Some 384 households in CKWD area were informed about the proposed subproject and interviewed for socioeconomic data. During detailed design, LWUA and CKWD will again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. CKWD shall keep records of environmental and social complaints received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

13. Grievance Redress Mechanism. Implementation of the proposed CKWD subproject will be fully compliant to ADB’s safeguards requirement on grievance redress mechanism. CKWD shall disclose the proposed mechanism in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc WD Environmental Complaints Committee (WDECC) for expeditious resolutions of the complaints, while complaints during the operation phase can be brought to the attention of DENR-EMB. CKWD shall address promptly, at no costs to the complainant and without retribution, any complaints and concerns. WDECC shall be chaired by CKWD and shall have members from the contractor, barangay government, concerned NGOs, and women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the subproject’s civil works contract. DENR-EMB is mandated by PD 1586 to act on complaints about environmental performance of projects issued with environmental compliance certificates.

14. Conclusions and Recommendations. The proposed subproject will increase CKWDs coverage on providing water supply services. Failure to implement the subproject may lead to public health deterioration. By 2015, CKWD’s proposed water supply system will increase the population to be served in the City of Koronadal to 83,570. Further increases in served population are expected in the years to follow due to the availability of water supply infrastructures implemented under WDDSP.

15. Analysis of potential environmental impacts revealed no significant adverse impacts to people and environment from the proposed water supply subproject. The IEE concludes that adverse environmental impacts arising from the location, design, construction, operation, and maintenance of the proposed subproject can be mitigated to less significant levels and the corresponding mitigation measures are doable. Monitoring can easily be done. The project can be implemented in an environmentally acceptable manner. An expanded environmental impact assessment is therefore not warranted, and this IEE shall be finalized as the final environmental assessment document of the CKWD subproject. Its environmental classification as Category B is deemed appropriate.

16. LWUA and CKWD shall ensure that EMP requirements for the construction phase will be reflected in the tender documents and civil works contracts and implemented including the contractors submission of Contractor’s Environmental Management Plan (CEMP). LWUA

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD vii shall monitor CKWD’s compliance to the EMP. In addition, creation of WDECC and its operation, as part of the grievance redress mechanism, shall be included in appropriate sections of the subproject’s civil works contracts. Institutional strengthening of CKWD, including training, is recommended for effective EMP implementation. CKWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

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Figure 1: Location Map

Metro La Union WD

Quezon Metro WD Legazpi City WD

Leyte Metro WD

City of Koronadal WD

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I. INTRODUCTION

1. The City of Koronadal Water District (CKWD) is an operational water supply utility located in the City of Koronadal, , Republic of the Philippines and one of the selected subprojects under TA 7122-PHI: Water District Development Sector Project (WDDSP) funded by the Asian Development Bank (ADB). The objective of the TA study is to assist the government of the Philippines to prepare a water district development sector project. It is intended to improve the livability and competitiveness in urban areas outside of Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The Local Water Utilities Administration (LWUA) is the executing agency. The participating water districts are the implementing agencies for water supply and sanitation subprojects.

2. Preparation of this Initial Environmental Examination (IEE) is part of the Phase 2 activities of the TA. It provides ADB with an assessment of the environmental concerns to be considered regarding the subproject location, design, construction, and maintenance. This report is also intended to assist LWUA and the CKWD in the preparation of the required environmental document to meet the Department of Environment and Natural Resources (DENR) requirements for an application of the necessary Environmental Compliance Certificate (ECC) before the start of the construction activities.

3. This IEE is one of the of five IEE studies prepared by Poyry IDP Consult, Inc., Philippines in association with TEST Consultants Inc., Philippines and Poyry Environment GmbH, Germany for the initial selected subprojects. Preparation of the IEE involved field visits to the proposed subproject area; review of available information, discussions with CKWD, LWUA, DENR, and other government agencies, local government officials, and members of the community within the subproject area. The assistance of the CKWD General Manager and staff in arranging the site visits, meetings, and providing support during the conduct of the study is gratefully acknowledged.

4. The IEE has been carried out in accordance with ADB’s Safeguard Policy (2009) and the requirements describe in its Appendix 1 (SAFEGUARDS REQUIREMENTS 1: ENVIRONMENT). The IEE follows the outline prescribed in the Annex to Appendix 1 excluding the section on analysis of alternatives (not necessary for an IEE).

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

5. The policy, legal, and administrative frameworks relevant to the environmental assessment of water supply and sanitation projects in the Republic of the Philippines have long been established by the following laws and regulations: (i) Presidential Decree (PD) 198 - Provincial Water Utilities Act of 1973, (ii) PD 1586 - Establishing the Philippine Environmental Impact Statement System, (iii) Republic Act No.9275 - Philippine Clean Water Act of 2004, and (iv) PD 856 - Code on Sanitation of the Philippines. The frameworks apply to the CKWD subproject.

6. The overall institutional framework is the LWUA and WD setup as defined by PD 198 otherwise known as the “Provincial Water Utilities Act of 1973”. LWUA, as a government corporation, is mandated to promote the development of water districts

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 2 in the country. It has a clear mandate to “primarily be a specialized lending institution for the promotion, development, and financing of local water utilities.” To carry out this mandate LWUA has major subsidiary roles such as: (i) prescribing minimum standards and regulations in order to assure acceptable standards of construction materials and supplies, maintenance, operation, personnel training, accounting, and fiscal practices for local water utilities; (ii) providing technical assistance and personnel training programs.

7. PD 198 also mandated the formation of local water districts, which were initially formed by resolutions of the LGUs (generally, municipalities) as a single entity or as a combination of LGUs. Once formed, however, a WD becomes legally autonomous of the LGU and has the standing and legal character of an independent government- owned and controlled corporation. It is controlled by a board of directors, appointed by either the mayor or the governor, consisting of five members representing various sectors, who in turn appoint the WD’s general manager. Hence, CKWD was formed by virtue of PD 198.

8. Under WDDSP, LWUA is the executing agency, while the WDs, such as CKWD, are the implementing agencies. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. WDDSP can contribute to Philippine efforts in achieving relevant targets in the Millennium Development Goals (MDGs), eight international development goals that 192 United Nations member states have agreed to achieve by the year 2015. Most relevant to WDDSP is Goal 7 (Ensure environmental sustainability) with its “Target 7C” for 2015 calling to reduce by half the proportion of people without sustainable access to safe drinking water and basic sanitation. Achieving the MDG 2015 target on accessibility to safe drinking water necessitates an assurance that indeed the water is safe. WDs must have raw water sources with sustainable quantities and acceptable quality. They should be able to maintain acceptable water quality levels in the distribution systems to ensure delivery of potable water. The 7C Philippine target is 86.8% of Filipinos will have access to safe water by 2015 and 83.8% will have access to a sanitary toilet facility.

9. Implementation of infrastructure and development projects in the Philippines is legally covered by PD 1586 otherwise known as “Establishing the Philippine Environmental Impact Statement System” with its implementing rules and regulations issued under Department of Environment and Natural Resources (DENR) Administrative Order No. 30 series of 2003 (DAO 03-30). This system requires the project proponent to obtain an Environmental Compliance Certificate (ECC) from the DENR before an infrastructure project can be constructed. The Philippine environmental assessment system conforms with ADB’s environmental assessment requirements as revealed by ADB’s Special Evaluation Study on Environmental Safeguards (2006).

10. Sewerage and septage management are covered by Republic Act No.9275 otherwise known as “The Philippine Clean Water Act of 2004”. Its implementing rules and regulations are issued under DENR Administrative Order No.10 series of 2005 (DAO 05-10). Standards for the discharge of all industrial and municipal wastewaters are defined in DENR Administrative Order No. 35 series of 1990 otherwise known as “The Revised Effluent Regulations of 1990” which is based on the Philippine Pollution Control Decree of 1976 issued as PD 984. Sanitation and septic tanks are also covered by PD 856 otherwise known as “Code on Sanitation of the Philippines”.

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III. DESCRIPTION OF THE PROJECT

A. Proposed Water Supply System

11. This subproject aims to improve the water supply system of CKWD in order to meet the projected water demand for the design year 2025 both in the existing and proposed service areas. CKWD’s projected total average-day demand will be 12, 243 cubic meters per day (cumd) and 16,870 cumd, respectively for the years 2015 and 2025. Projected domestic water demand will be 104.40 liters per capita per day (lpcd) in 2015 and 114.25 in 2025. The served population is estimated at 83,570 by 2015 representing some 49.15% of the total city population. It will be about 99,030 in the year 2025.

Table 1: Annual Service Area and Served Population Projections

% % % Service Service Served Served Total Year City Area Pop. Area Pop. Pop. Served /City /City /Service Population Population Population Population Area Pop. Population 2009 154,482 49.21 76,013 21.87 44.45 33,786 2010 156,970 49.30 77,393 22.93 46.52 36,001 2011 159,499 56.40 89,956 32.75 58.06 52,230 2012 162,069 56.72 91,922 33.53 59.11 54,336 2013 164,680 57.06 93,959 34.35 60.21 56,572 2014 167,332 63.79 106,745 45.25 70.94 75,722 2015 170,028 64.18 109,118 49.15 76.59 83,569 2016 172,767 64.58 111,576 48.95 75.80 84,577 2017 175,551 65.01 114,123 48.83 75.11 85,715 2018 178,379 65.46 116,763 48.75 74.48 86,963 2019 181,252 65.93 119,503 48.73 73.91 88,326 2020 184,172 69.61 128,204 48.75 70.04 89,792 2021 187,139 70.17 131,321 48.86 69.63 91,438 2022 190,154 70.76 134,555 49.00 69.25 93,179 2023 193,217 71.38 137,914 49.19 68.92 95,053 2024 196,330 72.02 141,404 49.40 68.59 96,982 2025 199,493 74.55 148,727 49.64 66.58 99,026 Source: Poyry-IDP Consult. 2009. Subproject Appraisal Report: City of Koronadal Water District. ADB TA7122-PHI. Manila.

12. The recommended plan for the water supply component includes the development of new source facilities, construction of new pumping facilities, provision of new treatment facilities, installation of new transmission and distribution pipelines, construction of a new storage tank and provision of new service connections. The scope of work includes: (i) Construction of four (4) new wells located in the Carpenter Hill wellfield; (ii) Construction of four (4) new well pump stations; (iii) Provision of a hypochlorinator for each pump station; (iv) Installation of new transmission and distribution pipelines; (v) Construction of 2,200 cum. concrete ground reservoir at Barangay Sarabia; (vi) Installation of 1,000 sets of new service connections; (vii) Procurement of operational systems and equipment (NRW); and (viii) Land acquisition for the new well sites and reservoir site. Schematic drawing of the proposed water supply system is presented in Figure 2.

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13. Source Facilities. The projected maximum day demand of CKWD for the year 2025 is 244.07 lps and it will be supplied by the following: a) Utilization of the nine (9) existing wells which could deliver a total capacity of about 166.85 lps. Four of these wells are under the LWUA-funded project having an assumed capacity of 20 lps per well for a total of 80 lps.; b) Construction of four (4) new wells at the Carpenter Hill wellfield which are expected to yield a total of 80 lps. These wells will not cause over pumping of groundwater since the recommendations on the sizes of pump and motor to be installed in the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. Groundwater recharge rates have been factored into the determination of appropriate drawdowns and sustainable well yield. There is therefore no likelihood that the project will cause over pumping of groundwater that could lead to ground subsidence. The design parameters of the wells are shown in Table 2. Water quality test results of an existing well (Table 3) showed that the raw water quality is within the limits of the 2007 Philippine National Standards for Drinking Water (PNSDW). It is expected that this well will have similar groundwater quality as the proposed subproject wells. Hence, expected water quality of the proposed wells will therefore be within the limits of the 2007 PNSDW since raw water quality is already within the limits of the standards. The 2007 PNSDW is the applicable standard for drinking water in this IEE since it is more stringent than the World Health Organization (WHO) Guidelines for Drinking-Water Quality (2008).

Table 2: Wells Parameters Well No.1 Well No.2 Well No.3 Well No.4 Total Depth 120 m 120 m 120 m 120 m Borehole Diameter 400 mm 400 mm 400 mm 400 mm Casing Diameter 250 mm 250 mm 250 mm 250 mm Screen Diameter 250 mm 250 mm 250 mm 250 mm Expected Yield 20 lps 20 lps 20 lps 20 lps

Table 3: Deepwell Water Quality Data Parameters Test Results 2007 PNSDW Limit (mg/l) (mg/l) odor Not objectionable Not objectionable pH 7.5 6.5 – 8.5 Total Dissolved 461 500 Solids Acidity 19.82 none Alkalinity 399.2 none Calcium 46.3 none Chloride 107.6 250 Hardness as CaCO3 237.8 300 Iron 0.3 1.0 Manganese 0.1 0.4 Source: CKWD 2009 data of Sta. Cruz Pumping Station

14. Pumping Stations and Treatment. Four new well pump stations will be constructed that will consist of a pump house and security fence. Each pump station will be equipped with a 30 HP submersible pump, motor and accessories including the motor control, capable of producing 20 lps. All pump stations shall be provided with discharge pipe assembly that includes the production meter. Each pump station shall be energized by providing 3 units 25 KVA distribution transformers, 3-phase power line extension and demand (KWH) meter. Each pump station shall also be equipped with 80 KVA diesel generator set for standby power. Each new well pump stations will be provided with a hypochlorinator to disinfect the water being withdrawn from the new sources.

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Figure 2

SCHEMATIC DIAGRAM OF PROPOSED KORONADAL WATER SUPPLY SYSTEM

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15. Storage Facilities. Since the emergency volume requirement seldom occur simultaneously with the operational volume requirement and in order to reduce capital cost, the larger of the two volumes will be used to satisfy both requirements. The operational volume requirement is 3,000 cum and larger than the emergency volume requirement. The existing 800m3 concrete ground reservoir at Barangay Zone IV will be retained. An additional 2,200m3 concrete ground reservoir will be constructed at Barangay. Sarabia.

16. Pipelines and Service Connections. Transmission and distribution pipelines will be installed in Barangays , Carpenter Hill, Concepcion, Namnama and Sarabia with sizes ranging from 50 mm Ø to 250 mm Ø. This item of work is assumed a lump sum item and the cost represents approximately 40% of the basic construction cost. A total of 1,000 new service connections will be financed by the project and will be installed during the construction period.

17. NRW Reduction Activity. Non-revenue water (NRW) is the volume of water that goes into the system but does not generate revenue. Included are wastage, leakage and consumptions from illegal connections as well as water used for fire fighting purposes and under-registration of meters. It is expected that the present system’s NRW of 15% will be maintained up to year 2025. Funds will be provided to purchase operational systems and equipment designed to manage and control NRW.

18. Water Supply Project Cost. The cost estimate was based on the 2009 in-placed cost of waterworks materials and facilities of LWUA and on submitted quotations from suppliers. The total project cost is estimated to be PHP 157,081,064. The annual operation and maintenance costs include manpower, power, chemical, maintenance and miscellaneous costs. By 2015, the total annual operation and maintenance costs will be PHP44.827 million and PHP 55.836 million by 2025.

19. Implementation Schedule. The project is scheduled to start on July 2011 with the procurement of NRW operational system and equipment. Then, well drilling follows after this activity. After confirmation of the wells of their quality, quantity and location, the detailed engineering design will commence. The construction of civil works will start after the detailed engineering design. The project shall be completed on December 2013 as shown in the Figure 3.

Figure 3: Implementation Schedule

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IV. DESCRIPTION OF THE ENVIRONMENT

20. A brief description of the existing environmental and socioeconomic conditions of the CKWD subproject influence area is presented in the following subsections:

A. Physical Resources

21. The City of Koronadal is located in the southern part of the Island of Mindanao. It is within the northeastern part of the Province of South Cotabato, lying in the latitude between 60 24’ to 60 34’ north and longitude 1240 47’ to 1240 58’ east. The Municipality of Tantangan, South Cotabato borders the city’s northwest, while the Municipality of Lutayan, border the northeast. The Municipality of Banga borders the southwest, while Municipalities of Tupi and Tampakan, South Cotabato border the southeast.

22. Topography. Approximately 50% of the city’s total land area, that is 13,900 of 27,700 hectares, is predominantly flat with slopes between 0 to 3%. The city is bounded by Roxas Mountain Range in the southwest and Quezon Mountain Range on the northeast. These mountain ranges have peaks reaching as high as 700 to 800 meters above sea level (masl) and gradually dropping towards the center of the City.

23. Geology and Soils. The city is underlained with alluvial deposits and sedimentary rocks mostly limestone and sandstone of Miocene and Pleistocene Age, which overly the Basement Complex of plutonic origin. It is located east of a structural complex characterized by the Roxas and Matulas Anticlines. It has four types of soils, namely: San Manuel fine sandy loam (Koronadal fine sandy loam), New sandy loam (Bulol sandy loam), Nupol sandy loam and Faraon clay loam. The identified San Manuel fine sandy loam locally known as koronadal fine sandy loam type of soil with alluvials deposits from mixed origin is found at the low land areas. A large portion of Koronadal’s land area (62.7% of total) consists of San Manuel fine sandy loam.

24. Water Resources. Groundwater in the general area of the city is utilized through wells and springs. Wells are commonly used throughout the city for domestic water supply. Households and commercial and industrial establishments in areas not served by CKWD operate and maintain their own wells. Springs are utilized by rural barangays for domestic water supply and for irrigation purposes.

25. CKWD presently obtains its water from groundwater sources with five (5) production wells having a total production of 86.85 lps (7,504 cumd). It is estimated the groundwater sources could still supply the year 2025 CKWD’s maximum-day water demands of 244.07 lps (21,088 cumd). The productive aquifer sections in the city are the alluvial deposits, consisting of layers of sand and gravel and the sedimentary rocks consisting of layers of coarse-grained sandstone and limestone. The total groundwater potential from the sedimentary rocks aquifer system and the alluvial aquifer system is estimated at 718.4 l/s (62,070 cumd).

26. Water samples collected from CKWD wells showed exceeded values of manganese permissible limit of 0.5 mg/l. These are the Forro, San Antonio and Barrio Dos wells and with manganese values ranging from 1.20 – 1.50 mg/l. Dissolved solids permissible limit of 500 mg/l was exceeded in the Morales well. All other parameters tested were within the PNSDW’s permissible limits. TDS concentrations in the samples range from 191 to 717 mg/l with TDS at Morales well

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at 717 mg/l. Water with concentrations of TDS below 1,000 mg/L is usually acceptable to consumers.

27. The most important surface water source for Koronadal is the Marbel River which originates from the eastern flank of the Roxas Mountain Range and the western flank of the Quezon Mountain Range, and flows in a northeasterly direction before emptying into Lake . The major tributaries of the Marbel River include the Palian River and the Kipalbig River that drain the southern part of the city. It is also fed by the Taplan River which drains the lowland areas of Tampakan and Zulueta and the Maltana River which drains the highlands of Maltana and Liberty, all located southeast of the city.

28. The National Irrigation Administration (NIA) taps this river with two diversion dams; the Marbel 1 River Irrigation System (RIS) in Barangay Saravia located about 12 km southeast of the city proper and the Marbel 2 River Irrigation System in Barangay Sto. Nino about 3 km southeast of the city proper. Irrigated areas of the Marbel 1 RIS and Marbel 2 RIS cover 1,863.84 hectares and 1,632.94 hectares, respectively.

29. Marbel River’s 80% dependable flow at the gauging station located upstream of the Marbel River 1 RIS diversion dam is about 3.43 m3/s (296,352 cumd). Adding the 80% dependable flow of 1.42 m3/s (122,628 cumd) from its tributaries, the Taplan River and Maltana River, the total dependable flow of the Marbel River is 4.85 m3/s (419,040 cumd). With Marbel 1 and Marbel 2 RIS total irrigation requirement estimated at 3.50 m3/s, about 1.35 m3/s dependable flow is available for abstraction.

30. Climate. Koronadal has a mild and sub-tropical climate and typhoon free. Rainy months are from June to October. Based on the climatic data of the PAGASA the highest rainfall is 225.60 mm in August 2003, and the lowest rainfall is 3.0 mm in April 2003. Its highest relative humidity ranged from 82% to 84% in the months of June to October during 2001 to 2006. The month of April 2006 has the lowest relative humidity of 74%. Warmest temperatures occur during the month of April. Maximum temperature was observed at 35.200C in March 2004, while the coolest was observed at 22.100C in November 2003.

31. Air Quality and Noise. There are no available air quality data specific to the areas where subproject components will be constructed. However, based on the consultant’s experience on air quality measurements of similar rural setting in the Philippines, the expected average ground level concentrations of total suspended particulates (TSP) would be close to the indicative value of 65 ug/Ncm. Similarly, there are no actual data on the present noise levels of this area. Again, based on the consultant’s experience on noise measurements of similar rural setting in the Philippines, the expected noise levels along the inhabited areas would be between 42 to 48 dB(A) for the daytime, while those in the farm areas would be less than 40 dB(A). In areas where there is higher vehicular traffic volume noise levels could reach as high as 54 dB(A).

B. Ecological Resources

32. Water Supply System. The present ecological setting of the area where the proposed water supply system will be constructed is a residential, institutional, and agricultural landscape dominated by coconut groves with patches of cornfields. Occasional fruit trees such as mangoes and bananas are also present. Most of the area immediately adjacent to the road is occupied by residential structures, while

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 9 some are reserved for the proposed government center. Areas beyond the road corridor are basically cultivated strips of land. Devoid of forested areas, the road corridor and its immediate environs are unlikely habitats for large wild animals. It is also not a likely habitat for rare or endangered species. Farm and domesticated animals are therefore the large faunal species such as cows, water buffaloes, goats, pigs, house cats, and dogs. At this stage of the subproject study, the technical team only identified the general areas for the proposed pipelines, deepwells, and reservoir. The exact locations will be confirmed during detailed design. The environment specialist visited the proposed locations of the subproject components in order to present appropriate descriptions of the ecological settings.

33. An important fact to consider is that the site is not within an undisturbed landscape. It is located along a major highway going to City that has been functional for a very long time already (see Photos No. 1 and 2). Hence, over the years the ecological changes due to human activities in the area resulted to the present residential, institutional, and agricultural landscape. Houses, school buildings, and other community structures are good indicators that indeed this area has long been transformed into the present landscape.

C. Economic Development

34. City Income and Expenditures. Koronadal is a 3rd class City with an average 5- year annual income of PHP228,101,829 (2002 to 2006) and expenditures for the same period averaged PHP179,073,678.60. Its income is derived from tax revenue, non-tax revenue, service income, business income and other income. Reported actual income of the City in 2006 was PHP315,428,905.90 and actual expenditure was PHP232,260410.43 or a surplus income of PHP83,168,495.47.

35. Land Use. The existing total urban land area of the city is 2,011 hectares or 7.26% of 27,700 hectares of Koronadal’s land area. The urban center of the city includes the 4 Zones, Brgys. Morales, General P. Santos, Sta. Cruz, and a portion of Brgy. Sto. Nino, Conception and Paraiso.

36. Commerce and Trade. The City, in 2006, had issued a total of 1,633 Mayor’s Permit to various business/commercial establishments There were 255 registered cooperatives (65 were operating, 95 were non-operating and 95 were dissolved), 13 commercial banks, two rural banks, one savings bank and 23 insurance companies (life and non-life and pre-need).

37. Agriculture. Agricultural land accounts for about 55 % (15,225 hectares) of the total land area. Major crops include rice, corn, and high value commercial crops such as fruit crops, root crops, vegetable, legumes, and cutflowers are being cultivated. Rice and corn crops are in both irrigated and non-irrigated areas. Other agricultural endeavors include aqua culture/farming, livestock and poultry. The City is also extending agricultural facilities and other related services.

38. Tourism. Tourist attractions are either natural or man-made. In the late 1990s, the City Government developed a one-hectare lot in Bgy. Sarabia, popularly known as the “El Gawel Resort and Wildlife Sanctuary”. It used to operate until 2005. It is now in need of rehabilitation. Other potential natural tourist destinations are the Millenium and the Cabillion Falls in Barangay Cacub, the Cadidang Cave and the Supon Falls in Barangay San Jose, and the Siok Falls in Bgy. Mabini. There are five resorts. Tourist accommodations are available in the City such as economical dormitories,

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 10 pension houses, and hotels. Koronodal City is a gateway to Lake Sebu - a place far from the city and inhabited by indigenous people.

39. Existing Water Supply System. Present water sources of CKWD are five deepwells, namely: Barangay 2, Forro, Morales, San Antonio and Sta. Cruz with discharges ranging from 3.89 lps to 36.11 lps. Water from the 4 deepwells are pumped directly to the distribution system, while that of the San Antonio Well is transmitted to the existing elevated steel tank before releasing to the distribution network. Except for the newly constructed Sta. Cruz Well, water from all wells has manganese content exceeding the 2007 PNSDW limit of 0.4 mg/l. Iron and manganese removal facilities of the Bo.2, Forro and Morales pump stations are unable to reduce the manganese concentrations to acceptable levels. A 24-hr water service is not available in some areas.

40. CKWD has a total length of 81,045 lm of PVC transmission and distribution mains with pipe diameters ranging from 50 mm to 250 mm. Storage facilities are one concrete ground reservoir and one elevated steel tank. The concrete ground reservoir constructed in 1998 and is located at Barangay Zone IV has a capacity of 800 cum. and elevation of 84 masl. The elevated steel tank is located at Barangay Sta. Cruz and operates on a fill and draw scheme with water coming from the San Antonio Well. The San Antonio Well and the elevated steel tank are used exclusively for the residents of San Antonio Village.

41. Existing Water Supply Service. CKWD operates a water supply system serving an estimated 37,382 people with a total of 5,751 active connections as of May 2009 in the City of Koronadal covering 9 barangays, namely: Caloocan, General Paulino Santos, Morales, Sta. Cruz, Santo Nino, Zone I, Zone II, Zone III and Zone IV.

42. Data on present water service situation in Koronadal City were generated by a WDDSP household survey using stratified random sampling with three hundred eighty four (384) respondents. Survey was conducted on groups with pipe water connection and those without. For those with pipe water connection, the survey indicated low service coverage even in urban barangays. About 18.3% of respondents had piped water with the CKWD. Water supply service is intermittent in certain areas. Average monthly water consumption was 26.7 cubic meters. About 13.9% provided water to neighbors or relatives.

43. Issues on sufficiency and perceived quality of water were indicated for certain areas; additional sources were cited as private deep wells for other domestic uses (with an average volume of 1.2 gallons per day); purified water refilling stations were the source of drinking water for 2.4% with an average volume of 2.4 gallons per day and at an average cost of P16 per day; though not allowed, 1.4% used pump to increase water pressure. Overall, 81.9% assessed that water received from piped connection was sufficient for their needs.

44. When asked to rate water service, water pressure was considered poor by only 1.4% of respondents. All WD-connected respondents cited that water was available everyday during the rainy season. Performance rating on continuity of water supply was considered poor by 1.4%; on reliability of water – very poor by 1.4%; regularity of billing and collection was satisfactory with none giving a rating of “poor”, while response to customer complaints was rated poor by 5.6% and very poor by 2.8%.

45. There was positive net satisfaction of overall water service with 42% that reported some area of dissatisfaction. Aspects of water service that bothered households most were price and water quality. Areas for improvement were: water pressure

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(2.8%), reduction of water rates (20.8%), complaints handling (11.1%), quality of water (15.9%) and billing and maintenance at less than 5%. Aspects of water quality that were at issue were taste (21.7%), color (24.6%) and smell (8.7%).

46. For those without pipe water connection, 18.4% got water from water vendors and peddlers, while 3.4% reported paying for supply of piped water from those with water service connection. Most common water source was private shallow wells at 40.6% and private deep wells at 30.9%; less common were public faucets at 3.8%, while 0.3% got water from open dug wells.

47. Shallow wells led as a source for bathing (82.2%) and for gardening (83.4%) but only 45.7% used water from these for drinking. The main reason for not being connected as cited by 67.1% was unavailability of water connection; smaller percentages of 9% considered the application fee of P1,800 to be too high or that their present water source was satisfactory (11.2%). About 71.4% of non-connected households assessed overall quality of water from current source as extremely or moderately satisfactory all year round.

48. Transportation and Communication. The City can be reached by land, sea and air. Sea and air transportations are through Gen. Santos City where the port and airport are located. Land transportation has several routes plying to and from the City daily. Land transportation can be availed of through passenger buses, jeepneys, and vans. Within the City, one can take tricycles, jeepneys, multicabs and motocycle (locally called habal-habal or skylabs) for remote barangays. Available communication facilities include broadcast media (radio), television networks, telephone system, cell phone communications, internets, and publications (local and national dailies).

49. Power Supply. Electricity comes form the Mindanao Grid of the Maria Cristina Hydro Electric Plant in . It is distributed in the City by the South Cotabato I Electric Cooperative, Inc. (SOCOTECO-1). All 27 barangays are energized.

D. Socio and Cultural Resources

50. Population and CKWD Service Area. City of Koronadal 2007 population was 149,622 according to the National Statistics Office (NSO) census. Population density was 5.4 persons per hectare. Rural population was 79,828 representing 53.35 % of the total population, while urban component was 69,794 equivalent to 46.65 % of the total population. The annual growth rate was 1.51 % based on the 2000 and 2007 population data. The existing service area of CKWD covers 9 barangays namely Caloocan, General Paulino Santos, Morales, Sta. Cruz, Sto. Nino, Zone I, Zone II, Zone III and Zone IV. The existing service area will eventually be expanded to include 2 more barangays under the LWUA-funded project. Three more barangays will also be included under a WDDSP and these are Concepcion, Namnama, and Sarabia. By design year 2025, the service area would cover 14 barangays out of the 27 barangays of the city.

51. Public Health and Sanitation. The City of Koronadal plays an active role in the creation of the Local Area Health Development Zone (LAHDZ), a district or a catchment area composed of a number of neighboring municipalities which main function is to improve networking and strengthen cooperation among themselves with regards to health matters. Its mission is to provide quality, efficient and effective healthcare through: (i) provision of entire package of services for its entire populace, (ii) intensification of information, education activities on the basic health services, (iii)

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provision of adequate health facilities, and (iv) strengthening of personnel/ community involvement. The available data on morbidity from the City Health Office ranked diarrhea as second in the 2006 ten leading causes of morbidity.

52. City of Koronadal has five hospitals of which one is a tertiary hospital. There are 28 private medical clinics, 8 dental clinics, and 38 health centers. The NSO 2000 sanitation data revealed that only 45.2% of total households had septic tanks. Presently, the city has no sanitary sewer system.

53. Education. Six private institutions provide tertiary level education, while technical/vocational education is available from 11 private schools. High school education is offered by 15 government and privately operated schools. Based on the 2006 data of the Department of Education, the city had a literacy rate of 95.44%.

54. Socioeconomic Survey. WDDSP conducted a household survey to get a good insight into the socioeconomic situation specific to the project area. Using stratified random sampling, three hundred eighty four (384) respondents were interviewed for a 95% level of confidence and standard deviation of 0.1. Based on this survey, average household size is 5.34 with 36.1% having 3-4 members and another 33.6 having 5 members. Women-headed household is 18.6%. Highest grade of household heads was college and over with a significant difference of 65.7% for WD connected households as against 34.5% for non-connected households. Other respondents reached or finished high school. Respondents were distributed under a wide occupational range including farming, business, street vending, and government and private employment; 4.3% of non-connected households were unemployed. Ilonggo (68%) was the most spoken language in the area followed by Cebuano (10.5%) and Ilocano (9.5%). Sole occupancy of dwelling was most common at 85.5% with 58.8% owning the house they occupied.

55. Average monthly income was P10,762, though 22.9% had incomes of less than P5,000 and another 35.2% had an income range of P5,000 – P9,999. Estimated poverty threshold for 2007 was P8,739 for a household of 5 members. This was computed from the official annual per capita poverty threshold for South Cotabato for 2007 which was pegged at P16,136 for urban areas. About 22% spent less than P5,000 per month while a sizable percentage (42.4%) spent about P5,000 – P9,999. Over 58% were unable to save while many of those who could (28.1%) had less than P1,000 in savings per month. Television (88.5%), cellular phones (88%) and refrigerators (61%) were the most common valuable items of the household.

56. Out of the 393 cases in Koronadal, 79.6% of households had water-sealed toilet (flush or pour flush) connected to a septic tank. The next most common type of toilet system representing 9.2% of the households was water-sealed toilet (flush or pour flush) connected to a pit; 8.9% shared toilets. All households in the survey sample had toilets though 0.5% admitted using water-sealed flush or pour flush toilets that connected to the drainage system. All of 80% were satisfied with their current toilet system; the main reason for dissatisfaction was due to a combination of backflow resulting to foul odor and inconvenience (61.8%). Some 27.7% of Koronadal households felt a need to improve their septage system; 43.1% of these preferred to improve their existing septic tanks.

57. All survey respondents reported washing hands before cooking, before eating, after using the toilet, before feeding children, and after washing the children after toilet. There was less awareness about washing hands before breastfeeding (51.9%). Non-connected households transported water from source using open (53.3%) and closed containers (19%) or a combination of both open and closed containers

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(17.1%). Some also used pipe or water hose to connect to a neighbor as reported by 5.7% of 315 cases; 4.1% of 319 cases had at least one member who suffered from a water-related disease during the past year while 0.6% of households had at least one child who suffered from diarrhea, About 6.9% of non-connected households treated water from the faucet before drinking. Respondents sought medical services primarily from public facilities such as medical centers (55%), government hospitals (16.8%), private hospitals (7.4%) and private clinics (15.3%). The majority (91.3%) of respondents were satisfied with available health services in their locality, with men slightly more satsfied than women; 73.3% of both female and male-headed households had access to Philhealth or had assistance on health expenses; 2.5% relied on self-medication.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

58. A comprehensive screening for environmental impacts is made through a review of the parameters associated with water supply projects against the components of the proposed CKWD subproject and the environment where the facilities will be located. A screening checklist was developed from various sources such as DENR checklists, ADB’s “Rapid Environmental Assessment (REA) Checklist, and WB Environmental Source Book. Some items of the checklist may not be applicable to this particular subproject. However, they are included in the discussions to indicate that their applicability was reviewed in the environmental impact screening process. This will help identify which topics do not require further attention.

59. The assessment is made on the following phases of the subproject: (i) Pre- construction, (ii) Construction, and (iii) Operation and Maintenance. Results of the environmental impacts screening are summarized in Table 4, while the discussions of each issue are presented in the succeeding sections. In Table 4, impact types and magnitudes are indicated for both impacts without the mitigating measures and the resulting situations when mitigating measures will be implemented. A summary of the environmental impacts that should be carried to the section for Environmental Management Plan (EMP) is presented at the end of this section as Table 5.

60. Environmental impacts arising from decommissioning of facilities were also reviewed but are no longer further discussed due to the following: (i) decommissioning of facilities is a remote possibility since these will serve growing urban areas and such facilities are critical for sustaining those areas, (ii) residual waste cleanup is not a major concern since the facilities are not industrial manufacturing plants with potential problems for toxic and hazardous wastes, and (iii) solid wastes from decommissioning is also not a major concern since the structures are mostly made of reinforced concrete and the solid wastes are mostly recyclable materials such as broken concrete materials, reinforcing steel bars used in the structures, structural steel, roofing materials, electrical wires, etc.

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Table 4: Summary of Environmental Impacts Screening for CKWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Encroachment to environmentally sensitive areas na na Impacts and risks to biodiversity conservation na na Encroachment to historical areas and cultural areas ∆ − ∆ Potential competing use of water resource ∆ − ∆ Potential nuisance and problems to the public  − ∆ Loss of assets (IR concerns) na na

CONSTRUCTION PHASE Modification of construction site topography ∆ − ∆ Removal of Trees ∆ − ∆ Displacement of Rare or Endangered Species na na Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Oil and other hazardous materials releases ∆ − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Noise and air pollution of pumping stations ∆ − ∆ Ground subsidence due to over-pumping  − ∆ Pumping stations operational risk and safety  − ∆ Increase employment opportunities ∆ + ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

A. Design/Pre-Construction Phase Considerations

61. Encroachments. Subproject’s components will not be located in areas that are environmentally sensitive and areas with historical and cultural importance. As described in the environmental baseline, the proposed sites are residential, institutional, and agricultural landscape dominated by coconut groves with patches of cornfields. There are no known archaeological and cultural assets in these sites. Nevertheless, precautions will be taken to avoid potential damage to any archaeological and cultural assets by inclusion of provisions in tender and construction documents requiring the contractors to immediately stop excavation activities and promptly inform the authorities if archaeological and cultural assets are discovered.

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62. Impacts and risks to biodiversity conservation. The issue on impacts and risks to biodiversity conservation is not applicable since the subproject’s components will not be located in areas that are environmentally sensitive. The sites are not in undisturbed landscapes and over the years the ecological changes due to human activities in the area have resulted to the present residential, institutional, and agricultural landscapes.

63. Competing Use of Water Resource. Problems on competing use of groundwater resources are not expected since CKWD shall apply for water rights of all the wells from the National Water Resources Board (NWRB) and avoid any water use conflict. In the issuance of water rights, NWRB will ensure that groundwater resources are appropriately allocated.

64. Nuisance and Problems to the Public. Potential nuisances and problems to the public during construction can best be avoided if proactively addressed during detailed design and pre-construction phase. Consultation and information dissemination to potentially affected people shall be done during detailed design. Tender documents shall include provisions addressing potential nuisances and problems to the public during construction. These include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (v) public safety and convenience. In addition, prior to site works, the contractor shall coordinate with the appropriate agencies in the procurement of required clearances with regard to electricity, telephone lines and other utilities/structures that may be affected by construction activities. These shall all be reflected in the construction contracts.

65. Loss of Assets. No issues on involuntary resettlement are identified at this stage of the project and there is no need to conduct an inventory on potential loss of assets. The Resettlement Specialist did not consider the preparation of any resettlement document for the CKWD subproject.

B. Construction Phase Environmental Impacts

66. Site Preparation. Construction of the pumping stations in Carpenter wellfield, pipelines in the highway, and reservoir at Barangay Sarabia will not involve modification of the construction site topography. Water supply pipelines will follow as much as possible the existing site contour. This issue is therefore considered not significant.

67. Removal of trees will not be an issue due to the following: (i) pipelines will mostly be laid in trenches along the right-of-way of existing roads, and (ii) areas required for pumping stations and reservoir are relatively small. The issue on displacement of rare or endangered species is not applicable since there are no known rare or endangered species within the proposed sites of Barangays Concepcion, Carpenter Hill, and Sarabia.

68. Soil Erosion and Sediment of Construction Sites. During rainy periods, exposed soil at the construction site can easily be washed away by runoff and carried to the natural drainage system. Hence, soil erosion of the construction sites could occur if preventive measures are not instituted.

69. Mitigation. Control of the surface runoff is necessary in preventing erosion. The contractor shall be required to use structural erosion prevention and sediment control

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 16 practices which will divert the storm water flows away from the exposed areas, prevent sediments from moving offsite, and reduce the erosive forces of runoff waters. These may include the following: (i) interceptor dikes, (ii) pipe slope drains, (iii) straw bale barriers, (iv) sediment traps, and (v) temporary sediment basins. Whenever possible, total exposed area shall be minimized.

70. Nuisance/ public inconvenience in pipelaying. Public inconvenience could arise in pipelaying works due to prolonged period of water supply service interruptions. Dumping of construction materials and solid wastes in watercourses will also cause nuisance to the public aside from affecting water quality and the flow regime.

71. Mitigation. The construction contractor shall be required: (i) to do installation or replacement of pipes within the shortest time possible to minimize water supply cut- off periods and/or use of night time schedules, as well as announcement of water supply interruptions two to three days prior to actual cut-off; and (ii) not to dump earth, stones, and solid wastes in watercourses to avoid adverse impact on water quality and flow regime.

72. Construction Noise. Potential sources of noise are the construction equipment, such as trucks and other equipment, which can generate noise of 80 dB(A) from a distance of 30 meters. Loud noise sources such as blasting are not expected in the construction activities of the CKWD subproject.

73. Mitigation. Nuisance from equipment noise can be mitigated with the use of sound suppression devices for the equipment. In areas near any house or noise- sensitive sites, noisy equipment shall not be operated during nighttime to early morning (22:00H – 06:00H). Noise levels due to construction activities should not exceed 50 dB(A) near schools such as the Marbel Elementary School in Barangay Sarabia, 55 dB(A) in other areas, and 45 dBA during nighttime. Workers using noisy equipment shall be provided with earplugs.

74. Local Air Pollution Due to Construction Activities. Dust generation from trenching, earthworks, and soil preparation activities during dry periods will be an air pollution problem. Intermittent episodes of air pollution from smoke belching equipment may also occur. This issue is considered significant during dry periods. Another potential source of air pollution are large stockpiles of construction materials such as soil and aggregates. Without any mitigating measures, dust generation could be significant during dry periods.

75. Mitigation. The contractor should be required to perform regular water spraying of the sites during dusty periods in order to reduce the generation of dusts. He will also be required to use equipment that are properly maintained and are not smoke belchers. Covers for stockpiles that will be left idle for a long time shall be required. Covers will prevent dust generation due to wind action. Trucks transporting loose construction materials such as sand, gravel, spoils, and the like shall be provided with tarpaulin cover.

76. Oil and other hazardous materials releases. Heavy equipment and vehicles will be used in the various construction activities for the CKWD subproject. Aside from fuel, oil, and grease, the activities may also involve the use of paints and solvents. Although there is potential for accidental releases of these materials, the issue is not considered significant since expected quantities will be relatively small. However, as part of good construction practice, the contractors will be required to implement an awareness program for all workers regarding the prevention and management of spills and proper disposal of used containers. Fuel and oil shall be stored in a

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 17 designated secured area provided with an impermeable liner to prevent the accidental spills from seeping into the ground.

77. Vehicular Traffic Congestion and Public Access. Construction activities, such as pipelaying, may cause traffic congestion in heavily traveled highways and narrow streets. It may hinder public access. In the CKWD subproject, transmission line pipelaying along the highway of Barangays Concepcion, Carpenter Hill, and Sarabia is expected to cause traffic congestion since there are lots of vehicles using the highway and pipeline alignment might be in the road shoulders. Installation of secondary pipes crossing the highway to the other side may cause the temporary closure of half the road and will lead to traffic congestion. This issue is therefore considered significant.

78. Mitigation. Contractors shall be required to: (i) prepare a traffic plan; (ii) closely coordinate with local authorities for the closure of roads or rerouting of vehicular traffic; (iii) consider the schedules of local activities with heavy presence of people such as festivities, processions, parades, etc. in the timing of construction activities; (iv) do proper stockpiling and immediate disposal of spoils to avoid nuisance and traffic/access obstruction; and (v) do immediate restoration of roads and other areas affected by pipe laying, construction activities and vehicles.

79. Hazards to public due to construction activities. Construction activities, such as pipelaying, along the roads may result to hazardous driving conditions since vehicles would still be using the road while construction activities are ongoing. This is particularly an issue in the pipelaying along the highway of Barangays Concepcion, Carpenter Hill, and Sarabia. The movement of construction vehicles and excavations would pose some hazards to the driving public. There is also risk of people falling down in open trenches since pipelaying trenches are normally left uncovered until pipeline testing is completed.

80. Mitigation. The contractor shall be required to implement a road safety plan incorporated in his construction schedule. Safety measures shall be implemented including: (i) warning signs to alert people of hazards around the construction sites, (ii) barricades, and (iii) night lamps for open trenches.

81. Pollution and Health Risk due to Workers Camp. The contractor is expected to erect temporary workers’ camps during construction of the CKWD subproject. Improperly managed silt runoff and sanitary wastes from these camps may reach nearby areas. Poor sanitation and lack of proper solid waste management at the worker’s camp will provide the conditions for vermin and other disease vectors to easily multiply and infect the workers. This may lead to the transmission of diseases from the workers camp to other areas. These conditions will increase public health risk.

82. Mitigation. The construction contractor shall be required to: (i) install proper sanitary facilities to prevent the indiscriminate discharge of sanitary wastes at the camps surroundings, (ii) implement proper solid waste management, and (iii) prevent surface runoffs from flowing into the workers camps to avoid carrying away any contaminants. The contractor shall be required to use temporary diversion drains, catch drains, and silt-traps at these camps.

83. Improper Closure of Construction Sites. Construction activities will generate construction solid wastes after completion of work. This may include used wood materials, steel works cuttings, paint and solvents containers, used oil from equipment, unused aggregates, etc. If not remove from the sites after completion of

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 18 the construction activities, these solid wastes will cause aesthetic problems and some will be potential sources of contaminants for surface runoffs.

84. Mitigation. After completion of work activities, the contractor shall be required to remove the construction wastes from the sites before finally leaving. The entire site must be free of any construction solid wastes. Implement the required surface restoration.

85. Increase Employment Opportunities at Work Sites. Various construction activities for the pumping stations, reservoir, and pipelines will definitely require a number of workers. The impact would be beneficial and significant since employment opportunities in the area will increase.

86. Enhancement. Whenever possible, the contractor shall be encouraged to use the available local labor for these construction activities. The recruitment of workers shall be coordinated with the local officials.

C. Operation Phase Environmental Impacts

87. Health hazard due to delivery of poor water quality. Delivery of poor water quality will increase the health risk to water consumers. Threats to water quality are always present in all components of a water supply system, from the raw water sources up to the service connections. Threats of contamination in water sources may be due to the presence of bacteria, viruses, protozoa, or chemicals. This raises the need to provide a secure barrier to post-treatment contamination as the water is transported to the consumer. CKWD should therefore manage the environmental risk to its water supply system. Failure to implement the appropriate management measures may result to adverse consequences threatening public health such as the case of a microbial outbreak.

88. Mitigation. Delivery to customers of poor water quality from the deepwells and pumping stations of Barangays Conception, Carpenter, and Sarabia of Koronadal City can be prevented in a broader scale by implementing a water safety plan as advocated by WHO. The 2007 Philippine Standards for Drinking Water (PSDW) also advocates preparation of a water safety plan.

89. A water safety plan shall enable CKWD to (i) prevent contamination of its water sources, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re- contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the CKWD in applying best practices in ensuring delivery of potable water to its consumers.

90. For controlling microbial contamination, a hypochlorinator will be installed at each pumping stations to ensure that water will be chlorinated and adequate residual disinfection will be maintained. This device uses a feed pump to inject controlled amount of chlorine solution into the water leaving the pumping stations. This is safer that using chlorine gas. The standards for chlorine residual of the 2007 PSDW are: (i) 0.3 mg/l minimum for detection at the farthest point of the distribution system and (ii) 1.5 mg/l maximum for detection at the farthest point of the distribution system.

91. Pollution from increased generation of sewage and sullage. Increasing the water supply to the service area will also increase the generation of sewage and sullage since most of the water used by consumers will become wastewater from the toilets,

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 19 kitchens, and laundry areas. This wastewater will contribute to pollution of the surrounding areas. Without a mitigating measure, this impact would be significant.

92. Mitigation. Wastewater from the toilets, kitchens, and laundry areas will normally be handled by the individual septic tanks system of the water consumers. The septic tank system will: (i) treat the wastewater and reduce the pollution potential and (ii) reduce the people’s exposure to untreated domestic wastewater. This will help in interrupting disease transmission.

93. Noise and air pollution of pumping stations. Noise of pumping stations is not an issue for the CKWD subproject since the there will be no significant sources of mechanical noise within the stations. Potential sources of noise, such as pumps and electric motors will be housed in buildings that provide noise attenuation. Local air pollution levels will not be affected by equipment use during normal operations since the pumping station will run on electricity to be supplied by the local power company (South Cotabato I Electric Cooperative, Inc.). Hence, there will be no air pollution associated with fuel combustion during normal electricity supply. However, a diesel- fueled electricity generator set will be used during the occasional brownout events. This generator set will surely comply with the air pollution regulations since a permit will be secured for its use. There will be no operational activities that will cause dust generation. Mitigating measures are therefore not necessary for noise and air pollution.

94. Ground subsidence due to over-pumping. Pumping groundwater should not be done without a defining a limit to how much water can be extracted. Excessive groundwater pumping will result to continuous reduction in the groundwater level in the aquifer. This will lead to a situation where the aquifer at some point will not be able to supply water in an economical or even physical sense. This will also cause an environmental effect known as ground subsidence. It is the result of soil compression when the drop in the water level will change the soil structure. Ground subsidence can result in significant damage to properties and structures.

95. Mitigation. To avoid over pumping the aquifers, each well shall be operated below its safe yield. This refers to the long-term balance between the water that is naturally and artificially recharged to an aquifer and the groundwater that is pumped out. When more water is removed than is recharged, the aquifer is described as being out of safe yield. When the water level in the aquifer then drops, mining of groundwater is happening. At any rate, the recommendations on the sizes of pump and motor to be installed on the wells will be based on the evaluation of test pumping results and available groundwater drawdowns. CKWD should monitor the groundwater level of each well to determine if continuous reduction in the groundwater level in the aquifer is occurring. WD staff are quite capable of doing this simple task since it will only use a wire to be attached to an ordinary electrical tester and lowered into the well, a common practice in the Philippine water industry. The water level below ground surface will be measured from the distance where the electrical tester indicated contact with the water level.

96. Pumping Stations operational risk and safety. The proposed CKWD pumping stations will not inherently pose risks to the environment and people. These facilities will not use flammable materials during normal operations. Conditions of extreme conditions of temperature and pressure are not to be expected. Use of diesel- powered generators as stand-by power source is considered safe since these are equipped with safety devices and leak detection for fuel tanks. The potential source of risky situation will be the used of chlorine gas as disinfectant. Accidents may occur with chlorine gas handling.

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97. Mitigation. In older water facilities, the significant source of hazardous situations is the use of chlorine gas as disinfectant. This shall be avoided in the proposed CKWD pumping stations by using sodium hypochlorite (NaOCl), the liquid form of chlorine. NaOCl is inherently a safer disinfectant. Its character can simply be put as household bleach or swimming pool chlorine.

98. Increase employment opportunities. Operation and maintenance of the pumping stations, reservoir, and pipelines will definitely require a number of workers. The impact would be beneficial since employment opportunities in the area will increase. However, the expected number of additional workers will be small since the additional water supply facilities are not labor intensive. This impact is therefore considered less significant.

99. After impacts screening, Table 5 lists the environmental impacts that requires mitigation and shall be carried to the EMP Section.

Table 5: Environmental Impacts for Inclusion in EMP of CKWD Subproject Environmental Impacts and Risks Without With Mitigation Mitigation PRE-CONSTRUCTION PHASE Potential nuisance and problems to the public  − ∆

CONSTRUCTION PHASE Soil erosion and sediments of construction sites  − ∆ Nuisance/ public inconvenience in pipelaying  − ∆ Noise from construction equipment  − ∆ Local air pollution due to construction activities  − ∆ Vehicular traffic congestion and public access  − ∆ Hazards to public due to construction activities  − ∆ Pollution and health risk due to workers camp  − ∆ Increase employment opportunity in work sites  +  + Improper closure of construction sites  − ∆

OPERATION AND MAINTENANCE PHASE Health hazard due to delivery of poor water quality  − ∆ Pollution from increased generation of sewage and  − ∆ sullage Ground subsidence due to over-pumping  − ∆ Pumping stations operational risk and safety  − ∆ Legend: n.a. = not applicable; ∆ = insignificant;  = significant; + = positive; - = negative

VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

100. CKWD has undertaken various activities concerning information disclosure, public consultation, and public participation for the proposed CKWD’s water supply subproject. These were done to achieve a meaningful stakeholders’ consultation and ensure subproject success. During the planning phase, information regarding the proposed water supply subproject were disclosed to the public such as in the conduct of a socioeconomic survey between April to May 2009. Some 384 households in

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CKWD’s area were informed about the proposed subproject and interviewed for socioeconomic data. Survey respondent also included those households without water service connection with CKWD.

101. Key informant interviews and focus group discussions (FGDs) with barangay and city officials were conducted to get their cooperation and gather information relative to poverty incidence and concentration, and identify needs and recommendations on water. Participants in the key informant and FGDs included the following: (i) WD staff and management, (ii) local health officials, (iii) gender focal persons of LGU, (iv) city and barangay officials, (v) LGU planning offices, (vi) local environment offices, and (vii) urban poor NGOs .

102. Public Consultation. Last 18 August 2009, CKWD conducted an initial public consultation and formally discussed the proposed water supply subproject with the stakeholders and requested their views. A total of 9 stakeholders’ representatives participated. Stakeholders were encouraged to raise their social and environmental issues. Participants included: (i) concerned individuals, (ii) barangay officials, (iii) NGOs, (iv) LGU planning officials, (v) City ENRO officials, and (vi) WD staff and management. Stakeholders expressed support to the CKWD subproject. Summary of the consultation outcomes is presented in Table 6, while the documentation is presented at the annexes. Septage management was part of the consultation topics since it was a subproject component during the initial stage of the study. CKWD decided later in March 2010 to exclude the sanitation component from the subproject.

103. Future Disclosure and Consultations. During detailed design, LWUA and CKWD will again conduct public consultations and information disclosure. Large group of stakeholders are expected to attend to this proposed consultations since proposed water tariffs will also be discussed. Views of the stakeholders will be considered in the overall design process. Stakeholders’ consultations shall be continued throughout the duration of the construction phase. CKWD shall keep records of environmental and social complaints, received during consultations, field visits, informal discussions, and/or formal letters, together with the subsequent follow-up and resolutions of issues.

Table 6: Summary of Consultation Outcomes Group Represented / Issues/ Concerns Raised Project’s Response Representative City Health Office; 1 incidence of waterborne proposed septage management attendee diseases usually increased program will greatly help the city in during rainy season controlling the spread of septic tank effluents City Planning Office; 1 reservations on the positive The project has a revolving fund for attendee impact of the proposed septage septic tanks repair and also studying management program since only the possibility of involving women’s 10% of the households have organizations in implementing the functioning septic tanks as financing of septic tanks repair using estimated. the revolving fund.

The projects suggested a joint CKWD- CHO information campaign to increase 'buy-in" to the septage management program and possible increase in the number of water service connections

City Engineers Office; 2 reservations on the viability of financing concerns are being analyzed attendee the septage management under the PPTA and data on septic program if only 10% of the tanks will be validated during detailed households can participate since engineering design phase it might result to a significant

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increase in water tariff to recover the cost for operation and maintenance LGU Representative; 1 The city will study CKWD’s detailed cost estimates are not yet attendee suggestion for the LGU to finalized manage the proposed septage management system and requested detailed cost estimates of the proposed system to be used for City Council presentation Barangay Chairman of Barangay Concepcion has poor The project will definitely serve Concepcion; 1 attendee quality groundwater and people Barangay Concepcion since the are buying drinking water from pipeline will pass through this area water stations Barangay Chairman of ensure that public safety and civil works contracts will include Concepcion convenience shall be addressed provisions requiring the contractors to properly during pipelaying properly address public safety and activities particularly near convenience schools Barangay Chairmen of They expressed full support to CKWD welcomed the expression of Saravia and Concepcion; the proposed water supply and support 2 attendees sanitation subproject

VII. GRIEVANCE REDRESS MECHANISM

104. Local grievance redress mechanism is important in the implementation of the proposed CKWD subproject since any complaints and concerns of the affected people must be address promptly at no costs to the complainant and without retribution. This mechanism shall be disclosed in public consultations during detailed design and in meetings during the construction phase. Complaints about environmental performance of projects during the construction phase can best be handled by an ad-hoc Water District Environmental Complaints Committee (WDECC) for expeditious resolutions to the complaints. Complaints during the operation phase can be brought to the attention of the CKWD or DENR-EMB.

105. CKWD Environmental Complaints Committee. CKWD shall form the WDECC to be chaired by the Water District-Project Implementation Unit (WD-PIU) head. Members shall include the following: (i) contractor’s highest official at the site such as Construction Manager or Construction Superintendent, (ii) barangay officials, (iii) concerned NGOs, and (iv) women’s organizations. Creation of the WDECC and its operation shall be included in appropriate sections of the civil works contract. Expeditious resolution of complaints during construction is important since activities are sometimes continuous and can easily change the landscapes within a week. For the quick filing of complaints, the WDECC shall prepare a form to be used for the filing of grievances/complaints. The use of form will also facilitate the filing of complaints by illiterate persons.

106. The steps to be followed in filing complaints and the procedures for redress are the following: (i) complainant shall provide the background and file the complaint verbally or in writing to WDECC. The WDECC secretary shall assist the complainant in filling-up the complaint form; (ii) within 2 working days, the WD-PIU head, contractor’s representative, and complainant shall discuss if the complaint can be resolved without calling for a WDECC meeting; (iii) if the complaint cannot be resolved by the WD-PIU head and contractor’s representative, a WDECC meeting shall be called with the complainant to resolve the complaint within 5 working days;

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(iv) if the complaint cannot be resolved, the complainant shall raise the issue to the barangay officials where barangay rules and regulations are followed for the amicable settlement of disputes at the barangay level without judicial recourse; and (v) if the complaint cannot be resolve at the barangay level, the complainant shall seek recourse with the courts. If the complaints are based on violations of the ECC terms and conditions, the complainant has an option to also bring the issue to DENR.

107. Complaints to DENR. Complaints about environmental performance of projects issued an ECC can also be brought to the attention of DENR-EMB. The process of handling such complaints is described in the Revised Procedural Manual (2007) for the IRR of PD 1586. The steps that DENR-EMB may follow in handling complaints are: (i) DENR-EMB shall verify if the complaint is actionable under P.D. 1586, (ii) within 72 hours from receipt of a complaint DENR-EMB will send the proponent a Notice of Alleged Violation (NAV) and requests for an official reply as to why the proponent should not be penalized, (iii) DENR-EMB may conduct field validation, site inspection and verification or other activities to assess or validate the complaint. The proponent is allowed to respond within 7 days. Proponent’s failure to respond to the NAV and further notices will force DENR-EMB to take legal actions. DENR may issue a Cease and Desist Order (CDO) to project proponents which shall be effective immediately based on: (i) violations under the Philippine EIS System, and (ii) situations that present grave or irreparable damage to the environment. PD 1586 also allows DENR to suspend or cancel the proponent’s ECC if the terms and conditions have been violated.

VIII. ENVIRONMENTAL MANAGEMENT PLAN

108. This section addresses the need for mitigation and management measures for the CKWD subproject. Information includes: (i) mitigating measures to be implemented, (ii) required monitoring associated with the mitigating measures, and (iii) implementation arrangement. Institutional set-up is presented in the implementation arrangement and discusses the roles during implementation and the required monitoring. It also outlines the requirements and responsibilities during pre- construction, construction, and operation phases.

A. Environmental Mitigation

109. Table 7 presents the information on: (i) required measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures. Details of mitigating measures are already discussed in Section V where the need for mitigation of each impact was determined in the screening process.

Table 7: Environmental Mitigation Plan of CKWD Subproject Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision PRE-CONSTRUCTION PHASE Excavation Potential Tender documents shall include Pipeline Part of detailed Design requirements damage to a provision that will require trenches, design cost Consultants / archaeological construction activities to be civil works LWUA Project and cultural stopped immediately upon excavations Management assets discovery of any archaeological Unit (PMU) and cultural relics and authorities will be informed promptly Social and Potential Consultation with the affected Pipelines Part of detailed CKWD PIU, community nuisance and communities regarding the routes, design cost Design concerns problems to the expected impacts and proposed reservoir Consultants /

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision public mitigation measures of the and LWUA PMU project; Tender documents shall pumping include provisions addressing the station potential nuisances and problems to the public during construction phase IR concerns Loss of assets Compensation and other Pipelines Part of detailed CKWD PIU, assistance for loss assets and routes, design cost Design land acquisition; Consultation reservoir Consultants / and information dissemination to and LWUA PMU affected people. pumping stations CONSTRUCTION PHASE Pipelaying Soil erosion Total area exposed shall be Pipelines Incorporated in Contractor / and other and sediments minimized; use of structural routes, construction CKWD PIU, civil works of construction erosion prevention and sediment reservoir contract Supervision sites during control practices which may and Consultants rainy periods include: interceptor dikes, pipe pumping slope drains, straw bale barriers, station sediment traps, and temporary sediment basins Pipelaying Nuisance / Minimize water supply cut-off Pipelines Incorporated in Contractor / inconvenience periods and /or use of nighttime routes, construction CKWD PIU, to the public schedules, as well as contract Supervision announcement of water supply Consultants interruptions two to three days prior to actual cut-off; no dumping of earth, stones, and solid wastes in watercourses Pipelaying Nuisance from Consultation with affected areas; Pipelines Incorporated in Contractor / and other noise of not to operate noisy equipment routes, construction CKWD PIU, civil works construction during nighttime (22:00 – 06:00); reservoir contract Supervision equipment sound suppression for and Consultants equipment; ear plugs for workers pumping station Pipelaying Air pollution Water spraying for dust control; Pipelines Incorporated in Contractor / and other due to construction materials with routes, construction CKWD PIU, civil works construction potential for significant dust reservoir contract Supervision activities generation shall be covered; and Consultants tarpaulin cover for trucks pumping transporting loose construction station materials; not smoke belchers equipment Pipelaying Traffic Close coordination with local Pipelines Incorporated in Contractor / and other congestion and authorities in road closure and routes construction CKWD PIU, civil works hindrance to traffic rerouting; contractor’s contract Supervision access traffic plan; proper stockpiling of Consultants materials and immediate disposal of spoils; immediate restoration of roads and affected areas Pipelaying Pollution and Proper camp sanitation; Workers Incorporated in Contractor / and other health risks installation of sanitary facilities; camp construction CKWD PIU, civil works due to workers solid waste management; contract Supervision camp surface runoffs control such as Consultants temporary diversion drains, catch drains, and silt-traps Pipelaying Hazard to Implement road safety plan and Pipelines Incorporated in Contractor / and other public due to safety measures including routes, construction CKWD PIU, civil works construction warning signs to alert people of reservoir contract Supervision activities hazards around the construction and Consultants sites, barricades, and night pumping lamps for open trenches in station pipelaying Rehabilitation Improper Removal of all construction Pipelines Incorporated in Contractor / and closure closure of wastes and implement surface routes, construction CKWD PIU, of construction restoration reservoir contract Supervision construction sites and Consultants sites pumping station Pipelaying Increase Contractor required to give Pipelines No cost Contractor / and other employment preference to local labor; workers routes, CKWD PIU, civil works opportunities recruitment to be coordinated reservoir Supervision

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Project Potential Proposed Mitigation Measure Location Mitigation Cost Responsibility Activity Environmental or Enhancement Measure Implementation/ Impact Supervision with local officials and Consultants pumping station OPERATION PHASE Water Health hazard Water disinfection using chlorine; Pipelines, Part of operation CKWD / LWUA production due to delivery water safety plan implementation reservoirs, & maintenance of poor water and costs quality pumping stations, Water Pollution from Septic tanks system of water Subproject Cost of water Water consumer/ consumption increased consumers water consumers LGU generation of supply sewage and service area sullage Groundwater Potential Groundwater pumping at lesser pumping No cost CKWD / LWUA pumping ground than the safe yield of each well stations subsidence due to excessive pumping Pumping Pumping Use liquid chlorine (sodium Pumping Part of capital, CKWD / LWUA station station hypochlorite) instead of chlorine station operation & operation operational risk gas maintenance and safety costs

110. Although details of the required mitigating measures are already discussed in the screening for impacts, the following items are discussed further to highlight their importance: (i) tender documents and construction contracts, (ii) contractor’s environmental management plan, (iii) construction site management plan, (iv) water safety plan, (v) source protection study and wellhead protection plan, and (vi) unanticipated environmental impacts.

111. Tender Documents and Construction Contracts. Environmentally responsible procurement advocates the inclusion in construction contract documents the provisions addressing the management of environmental impacts and risk during construction. This includes the contractor’s submittal of a Contractor’s Environmental Management Plan (CEMP). Tender documents and construction contracts shall therefore include environmental management provisions on the following issues: (i) erosion and sediment runoff, (ii) noise and dust, (iii) vehicular traffic, (iv) construction wastes, (v) oil and fuel spillages, (vi) construction camps, and (vii) public safety and convenience.

112. Contractor’s EMP. During construction, each contractor will be guided by its detailed CEMP. This shall be based on the CKWD subproject’s EMP with details on staff, resources, implementation schedules, and monitoring procedures. The agreed CEMP will be the basis for monitoring by PMU, CKWD PIU, and other monitoring parties. Inclusion in construction contract documents the provisions requiring the contractor to submit a CEMP is important since the contractor will be legally required to allocate a budget for mitigation measures implementation. The CEMP will allow CKWD’s construction supervision engineer to focus on what are specific items expected from the contractor regarding environmental safeguards on a day-to-day basis. With the CEMP, CKWD can easily verify the associated environmental requirements each time the contractor will request approval for work schedules.

113. The CEMP shall be prepared by all contractors before the start of the construction works and shall be approved by CKWD’s PIU. This requirement shall be included in the construction contracts. It shall provide details on specific items related to the environmental aspects during construction. It shall include

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specifications on requirements for dust control, erosion and sediment control, avoidance of casual standing water, management of solid wastes, workers’ camp sanitation, pollution from oil, grease, fuel spills, and other materials due to the operation of construction machineries, safety and traffic management, avoidance of inconveniences to the public, air and noise pollution control. It shall also include guidance on the proper design of the construction zone, careful management of stockpiles, vegetation, topsoil, and vehicles and machinery.

114. Water Safety Plan. CKWD shall manage the environmental risk to its water supply system in a broader scale. As previously pointed out, the role of a water safety plan in addressing the risk cannot be overemphasized. This is an approach advocated by WHO for ensuring the delivery of safe drinking water to the consumers. Its need is also reflected in the 2007 PNSDW. The water safety plan shall enable the CKWD to (i) prevent contamination of its water sources water, (ii) treat the water to reduce or remove contamination that could be present to the extent necessary to meet the water quality targets, and (iii) prevent re-contamination during storage, distribution and handling of drinking water. It is an approach that will clearly show the desire of the CKWD in applying best practices in ensuring delivery of potable water to its consumers.

115. Source Protection Study and Wellhead Protection Plan. An input to the preparation of the water safety plan is the source protection study. This includes preparation of a source water assessment and wellhead protection plan. The study will help identify risk to the water supply system. A source water assessment is an evaluation of how susceptible a source may be to potential sources of contamination. Potential contaminant sources that could adversely affect the quality of water supply source are identified. Output of assessments will be used to prepare the wellhead protection plan. Wellhead Protection is a way to prevent drinking water from becoming polluted by managing potential sources of contamination in the area with influence to the groundwater supplies to the well. The wellhead protection plan includes designating the protection area or capture zone. A wellhead protection plan is particularly important for CKWD since its groundwater sources are within or near built-up areas and the risk of contamination to these sources is high.

116. Unanticipated Environmental Impacts. Where unanticipated environmental impacts become apparent during project implementation, CKWD shall prepare a supplementary environmental assessment and EMP to assess the potential impacts and outline mitigation measures and resources to address those impacts.

B. Environmental Monitoring

117. Table 8 presents the information on: (i) aspects or parameter to be monitored, (ii) location where monitoring is applicable, (iii) means of monitoring, (iv) frequency of monitoring, (v) responsibility of compliance monitoring, and (vi) cost of monitoring. The PMU shall prepare quarterly environmental monitoring reports to be submitted to LWUA management detailing the status of mitigating measures implementation.

Table 8: Environmental Monitoring Plan of CKWD Subproject Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility PRE-CONSTRUCTION PHASE Specific Pipeline Verify draft and Twice – draft Design LWUA PMU Part of project provision in trenches, civil final documents and final consultants management in tender works documents detailed design documents on excavations (minimal cost)

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Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility archeological/ cultural relics Consultation Pipelines Verify meetings After CKWD, LWUA PMU Part of project meetings; routes, documentation; completion of Design management in Specific reservoir and Verify draft and meetings; consultants detailed design provisions in pumping final documents Twice – draft (minimal cost) tender stations and final documents on documents nuisance & problems to public CONSTRUCTION PHASE Total area to be Pipelines Visual Daily during Contractor Construction Part of consultant’s exposed; runoff routes, inspection of rainy periods supervision construction flowing into reservoir and sites; plans consultants, supervision disturbed sites pumping verification CKWD PIU contract; minimal stations cost to CKWD PIU Water supply Pipelines Visual Daily Contractor Construction Part of consultant’s interruptions; routes inspection of supervision construction materials and sites; work consultants, supervision solid wastes schedules CKWD PIU contract; minimal dumped in verification cost to CKWD PIU watercourses Noise levels not Pipelines Use of sound Daily Contractor Construction Part of consultant’s to exceed 50 routes, levels meter supervision construction dBA near reservoir and consultants, supervision school, 55 dBA pumping CKWD PIU contract; minimal in other areas, stations cost to CKWD PIU and 45 dBA during nighttime Dust, cover of Pipelines Visual Daily Contractor Construction Part of consultant’s stockpiles, routes, inspection of supervision construction smoke belching reservoir and sites consultants, supervision pumping CKWD PIU contract; minimal stations cost to CKWD PIU Road closure Pipelines traffic plans weekly Contractor Construction Part of consultant’s and traffic routes verification supervision construction rerouting; consultants, supervision materials CKWD PIU contract; minimal stockpiles; road cost to CKWD PIU restoration Sanitary toilets, Workers camps Visual Once before Contractor Construction Part of consultant’s garbage bins, inspection of start of supervision construction runoff controls camps construction consultants, supervision and once CKWD PIU contract; minimal monthly cost to CKWD PIU Road safety Pipelines Visual Daily Contractor Construction Part of consultant’s plan; sign, routes, inspection of supervision construction barricades and reservoir, sites consultants, supervision night lamps pumping CKWD PIU contract; minimal stations cost to CKWD PIU Construction Pipelines Visual Once before Contractor Construction Part of consultant’s wastes routes, inspection of final stage of supervision construction reservoir and sites demobilization consultants, supervision pumping CKWD PIU contract; minimal stations cost to CKWD PIU Number of local Pipelines Verification of Once a month Contractor CKWD PIU No cost labor employed routes, contractor’s reservoir and records pumping stations OPERATION PHASE E. Coli bacteria; Pipelines, Water sampling Monthly for CKWD LWUA Part of CKWD’s PNSDW reservoirs, and and laboratory bacteria; operation cost physical & pumping test annual for (USD300 /year) chemical stations, physical & chemical Septic tank of Subproject Visual Once a year Water LGU Minimal cost water water supply inspection of consumer consumers service area sites

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Aspects / Location Means of Frequency Implemen- Compliance Monitoring Cost Parameters to Monitoring tation Monitoring be monitored Respon- Respon- sibility sibility

Groundwater Wells/ pumping Use of Once a month CKWD LWUA Minimal cost to levels stations groundwater CKWD level meter liquid chlorine Pumping Verification of Once a year CKWD LWUA Minimal cost usage stations operation records

118. Project Performance Monitoring. Project performance monitoring presents the desired outcomes as measurable events by providing parameters or aspects that can be monitored and verified (Table 9). Tendering process advocating environmentally responsible procurement is a desired outcome during the pre- construction phase. This can easily be verified by checking if EMP requirements are incorporated in construction contracts. Construction phase desired outcomes include effective management of environmental impacts and reduce risk to public. For the operation phase, CKWD’s water supply system must meet the drinking water standards (2007 PNSDW) for bacteria count (E. coli), color, pH, turbidity, dissolved solids, hardness, alkalinity, manganese, iron, fluoride, chloride, sulfates, magnesium, calcium, carbonates, and bicarbonates.

Table 9: Project Performance Monitoring of CKWD Subproject Aspects / Means of Frequency Implemen- Compliance Monitoring Desired Outcomes Parameters Monitoring tation Monitoring Cost to be monitored PRE-CONSTRUCTION Detailed design is EMP Verify detailed Two reviews: CKWD, LWUA PMU Minimal environmentally requirements design (i) draft Design cost responsive incorporated documents; detailed consultants in detailed EMP design design requirements documents reflected in and (ii) prior to tender approval of documents final documents Tendering process EMP Verify Prior to CKWD PIU LWUA PMU Minimal advocates requirements construction finalization of cost environmentally incorporated contract construction responsible in construction documents; contract procurement contracts documents CONSTRUCTION PHASE Effective management Number of Verification of Once a month Contractor Construction Part of of environmental public contractor’s supervision consultant’s impacts during complaints on records; consultants, construction construction construction CKWD CKWD PIU supervision activities coordination contract; with local minimal officials cost to CKWD PIU Reduce risk to public Number of Verification of Once a month Contractor Construction Part of during construction accidents contractor’s supervision consultant’s involving records; consultants, construction construction CKWD CKWD PIU supervision activities coordination contract; with local minimal officials cost to CKWD PIU OPERATION PHASE Water quality meets Required Water Monthly for CKWD LWUA Part of drinking water drinking water sampling and bacteria; CKWD’s standards quality laboratory test annual for operation parameters physical & cost chemical (USD300 /year)

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C. Implementation Arrangement

119. This subsection presents the: (i) institutional set-up, (ii) implementation schedule, (iii) required clearances and permits, and (iv) capability building.

120. Institutional Setup. LWUA is the executing agency, while CKWD is the implementing agency. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. LWUA will establish a Project Management Unit (PMU) to coordinate implementation at the national level, including procurement of goods, works, and services. A PMU staff shall be designated as the Environment Officer for the project. At the subproject level, CKWD will be responsible during construction and operation phase of the subproject. During the construction phase, CKWD shall establish a Project Implementation Unit (PIU) to work closely with LWUA’s PMU. A team of consultants will assist LWUA’s PMU and CKWD during pre-construction and construction phases. The role of the WDECC during the construction phase is highlighted since it is an important aspect of the grievance redress mechanism in promptly addressing the public’s complaints about environmental performance of the subproject during execution of the construction activities.

121. Environmental Monitoring Reports. During the construction period, the construction supervision consultants, together with the PIU, shall prepare monthly environmental monitoring reports to be submitted to CKWD and the PMU. The contractor shall submit to the PIU a monthly environmental monitoring report. Based on the monthly reports, the PMU shall prepare semi-annual environmental monitoring reports which shall be submitted by LWUA to ADB.

122. Implementation Schedule. As presented in the project description, the CKWD subproject is scheduled to start on July 2011 and to be completed on December 2013. However, the construction of the components is scheduled on the entire year of 2013. CKWD shall ensure that construction contract provisions related to the EMP shall be included in the tendering stage in 2012.

123. Clearances and Permits. Under present Philippine regulations, CKWD shall apply for an Environmental Compliance Certificate (ECC) from the DENR for the proposed water supply system.

124. Capability Building. WDDSP implementation will be supported by consulting services to be sourced in two contract packages: (i) project management advisory services, including detailed engineering designs, preparation of contract documents, support to water districts with construction supervision and quality control, and the preparation of any resettlement plans; and (ii) institutional development and capacity building for LWUA, the project management unit (PMU), and water districts.

IX. CONCLUSION AND RECOMMENDATIONS

125. The proposed CKWD’s water supply subproject will greatly help CKWD in providing its consumers access to safe drinking water and provide huge benefits to the City of Koronadal.

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126. The environmental screening process has highlighted the environmental issues and concerns of the proposed CKWD subproject. It has not identified any significant negative environmental impacts that cannot be mitigated. The environmental screening considered the fact that proposed sites have been residential, institutional, and agricultural landscape dominated by coconut groves with patches of cornfields. The highway where the pipeline will be laid has been in existence for a very long time already. Hence, the subproject is essentially not a new incursion to an ecologically untouched zone.

127. This assessment concludes that the CKWD subproject can be implemented in an environmentally acceptable manner. There is no need for further environmental assessment study. A full EIA is not warranted and the subproject’s environmental classification as Category B is deemed appropriate. The IEE shall therefore be finalized as the final environmental assessment document of the subproject.

128. The proposed CKWD subproject is hereby recommended for implementation and highlighting the following: (i) EMP of CKWD subproject shall be included in the design process; (ii) Contracts of design consultants shall have provisions requiring the consultants to consider EMP recommendations in the design process; (iii) Tendering process shall advocate environmentally responsible procurement by ensuring the inclusion of EMP provisions in the bidding and construction contract documents; (iv) Contractor’s submittal of a CEMP shall be included in the construction contract; (v) Contract provisions on creation and operation of the WDECC shall be included in construction contracts; (vi) LWUA, with its regulatory function, shall ensure that capability building for CKWD shall be pursued; and (vii) CKWD shall continue the process of public consultation and information disclosure during detailed design and construction phases.

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REFERENCES

Asian Development Bank (ADB). 1993. Environmental Guidelines for Selected Infrastructure Projects. Office of the Environment, Asian Development Bank.

____. 1998. Environmental Assessment Requirements of the Asian Development Bank. Environment Division Office of the Environment and Social Development, Asian Development Bank.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Water Supply. ADB Online.

____. 2003. Rapid Environmental Assessment (REA) Checklist for Sewage Treatment. ADB Online.

____. 2009. Safeguards Policy. ADB Online.

Department of Environment and Natural Resources (DENR). 1990. Revised Effluent Regulations of 1990. DENR Administrative Order No. 35.

Department of Health (DOH). 2007. Philippine National Standards for Drinking Water.

Poyry-IDP Consult. 2009. Subproject Appraisal Report: City of Koronadal Water District. ADB TA7122-PHI. Manila.

World Bank (WB). 1991. Environmental Assessment Sourcebook Volume II – Sectoral Guidelines.

____ (WB). 2006. Philippine Sanitation Sourcebook and Decision Aid.

World Health Organization. 2005. Water Safety Plans. Geneva.

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ANNEXES

Site Photographs

Minutes of Consultation Meeting

List of Participants - Consultation Meeting

Attendance Sheet - Consultation Meeting

Photographs - Consultation Meeting

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SITES OF PROPOSED CKWD WATER SUPPLY PIPELINE

Photo No.1 – Pipeline route along highway in Barangay Carpenter and going towards Barangay Concepcion of Koronadal City

Photo No.2 – Pipeline route along highway towards Barangay Saravia

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Minutes of the Public Consultation/Meeting held at Ramona Hotel (1st meeting) and CKWD Office (2nd meeting), City of Koronadal, South Cotabato, 18 August 2009

Opening/ Presentations of 1st Meeting:

The public consultation/meeting started at 1:30 P.M. with CKWD’s Interim GM, Mr. Fred Fabellon, welcoming the participants and thanked them for positively responding to CKWD’s invitation.

CKWD’s Interim GM presented the detailed aspects of the proposed water supply system and septage management program.

Mr. Bonifacion Magtibay, WDDSP’s Sanitation Specialist, gave a brief presentation of the proposed septage management program as a component of the proposed ADB- funded project.

Comments, Views, Issues and Concerns of 1st Meeting

Ms. Lorna J. Montequi, Koronadal City Health Office (CHO), expressed appreciation of the proposed septage management program since incidence of waterborne diseases usually increased during rainy season. WDDSP’s Sanitation Specialist explained that the proposed septage management program will greatly help the city in controlling the spread of septic tank effluents. Rainwater can easily spread the effluents.

Ms. Agnes Daguro, Koronadal City Planning Office, expressed her reservations on the positive impact of the proposed septage management program since only 10% of the households have functioning septic tanks as estimated. WDDSP’s Sanitation Specialist explained that the project has a revolving fund for septic tanks repair. This can be implemented in phases, while continuously doing aggressive information campaign. WDDSP’s Resettlement Specialist explained that the project is studying the possibility of involving women’s organizations in implementing the financing of septic tanks repair using the revolving fund.

WDDSP’s Sanitation Specialist suggested a joint WD-CHO information campaign to increase 'buy-in" to the septage management program and possible increase in the number of water service connections.

Mr. Raoul Galia, City Engineers Office, have reservations on the viability of the septage management program if only 10% of the households can participate since it might result to a significant increase in water tariff to recover the cost for operation and maintenance. WDDSP’s Sanitation Specialist explained that financing concerns are being analyzed under the PPTA and data on septic tanks will be validated during detailed engineering design phase.

CKWD’s Interim GM suggested that the LGU may manage the septage management system and the WD will provide assistance if needed. The LGU representatives said they would still study their readiness to accept this task and it would also require City Council approval. They requested detailed cost estimates of the proposed system to be used for City Council presentation. WDDSP’s Sanitation Specialist explained that detailed cost estimates are not yet finalized.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 35

Juliet Villegas of WDDSP asked if the participants have additional issues to raise. After confirming that there were no more issues, CKWD’s Interim GM closed the meeting by thanking everyone for participating in the public consultation.

1st Meeting Closed at 2:30 P.M.

Discussions of 2nd Meeting

A 2nd meeting was held at CKWD’s Office immediately after the 1st meeting at Ramona Hotel. Aside from the WDDSP Team, stakeholders of this 2nd meeting were only the Barangay Chairmen of Saravia and Concepcion.

Mr. Rogelio Joaquin, Barangay Chairman of Concepcion expressed appreciation of the proposed water supply system since people of his area are buying drinking water from water stations. Barangay Concepcion has poor quality groundwater. The WDDSP Team explained that the project will definitely serve Barangay Concepcion since the pipeline will pass through the area.

Mr. Joaquin requested CKWD to ensure that public safety and convenience shall be addressed properly during pipelaying activities particularly near schools. WDDSP’s Environmental Specialist explained that civil works contracts will include provisions requiring the contractors to properly address public safety and convenience during construction.

Both Barangay Chairmen said they have no problem in participating with the septage management program since they believed there is need for regular desludging of septic tanks. They expressed full support to the proposed water supply and sanitation project. CKWD’s Interim GM welcomed the expression of support from the Barangay Chairmen.

2nd Meeting Closed at 4:00 P.M.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 36

List of Participants of Koronadal City WD Public Consultation and Information Disclosure [18 August 2009]

Stakeholders/Participants:

• Raoul Galia – Engineer I, City Engineers Office • Antonia C. Cordova – Engineer I, City Engineers Office • Elvira D. Magbanua –Pollution Engineer, City ENRO • Augustos Bretana – City Enro, City ENRO • Agnes D. Daguro – CPDC, LGU-Koronadal • Lorna J. Montequi – SI-CHO, LGU-Koronadal • Ramon L. Saguta-on – PROTECH, Prov of South Cotabatao

At CKWD Office Meeting • Rogelio B. Joaquin – Brgy. Chairman, LGU-Concepcion • Roger S. Mangubat – Brgy. Chairman, LGU-Saravia

City of Koronadal Water District (CKWD) and WDDSP Team

• Fred Fabellon – Interim General Manager (IGM), CKWD • Rey Sanlap – CSO-B, CKWD • Aser Sadana – OSA, CKWD • Josephine Cosep – CAA, CKWD • Ma. Lourdes Salutorio – ASO-B, CKWD • Reyes Callao – WMM-B, CKWD • Corazon Sagutaon – J.O, CKWD • Jonathan Gadayan - J.O, CKWD • D. Dagoso, Jr – J.O., CKWD • Juliet Villegas – consultant, Poyry-IDP • Ruel Janolino – consultant, Poyry-IDP • Bonifacio Magtibay – consultant, Poyry-IDP

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 37

List of Participants of Koronadal City WD Public Consultation and Information Disclosure [18 August 2009]

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD 38

PHOTOGRAPHS OF CKWD PUBLIC CONSULTATION MEETING

Photo No.3 – CKWD Interim GM explaining some points at public consultation meeting [18 August 2009]

Photo No.4 – City Planning Office representative raising a point at public consultation meeting [18 August 2009]

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – IEE CKWD

ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK

Environmental Assessment and Review Framework Project Number: 41665 April 2010

Republic of the Philippines: Water District Development Sector Project ADB TA 7122-PHI

The EARF is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF i

CURRENCY EQUIVALENTS (As of April 2010)

Currency Unit Philippines Peso (PHP)

$1.00 = PHP45.17

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank barangay village DENR Department of Environment and Natural Resources EARF Environmental Assessment Review Framework ECC Environmental Compliance Certificate EIA environmental impact analysis EMB Environmental Management Bureau EMP environmental management plan FGD focus group discussion IA implementing agency IEE initial environmental examination IRR Implementing rules and regulations LGU local government unit LWUA Local Water Utilities Administration mg/l milligrams per liter MOA memorandum of agreement NGO non-government organization NRW Non-revenue water PD presidential decree PHP Philippine peso PIU project implementation unit PMU project management unit PNSDW Philippine National Standards for Drinking Water RA republic act TA technical assistance WD water district WDDSP Water District Development Sector Project WDECC Water district environmental complaints committee WHO World Health Organization WTP water treatment plant

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF ii

Table of Contents

Page

A. INTRODUCTION ...... 1

B. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY ...... 1

C. ANTICIPATED ENVIRONMENTAL IMPACTS ...... 2

D. ENVIRONMENTAL ASSESSMENT FOR SUBPROJECTS ...... 3

E. CONSULTATION, INFORMATION DISCLOSURE, & GRIEVANCE REDRESS MECHANISM ...... 4

F. INSTITUTIONAL ARRANGMENT AND RESPONSIBILITIES ...... 5

G. MONITORING AND REPORTING...... 6

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF 1

A. INTRODUCTION

1. This is the Environmental Assessment and Review Framework (EARF) for the Water District Development Sector Project (WDDSP) of the Republic of the Philippines. It shall be applied to the next batch of subprojects under the loan to be funded by the Asian Development Bank (ADB) for WDDSP. It is prepared in accordance with ADB’s Safeguard Policy (2009) and follows the outline prescribed for EARF in Annex 1 to Appendix 4 of the policy paper.

2. WDDSP and Subprojects Description. WDDSP will help improve the living conditions of the urban population in the Republic of the Philippines outside of Metro Manila, enhance competitiveness by developing water supply infrastructure, and build the capacity of Water Districts (WDs). It will also support the institutional development of the Local Water Utilities Administration (LWUA) and contribute to a much needed sector reform. WDDSP has two components: (1) Water Supply Development and Improvement of Performance, and (2) Capacity Building and Project Implementation Support.

3. Scope of the water supply component will include the following activities: (i) preparation/ implementation of simple contracts for system improvement, (ii) groundwater source confirmation (test drilling), (iii) detailed engineering design, (iv) preparation of bid documents, (v) procurement of contractors, (vi) contract awards, and (vii) rehabilitation and new construction/installation works. Infrastructures include water supply pipelines, wells, pumping stations, reservoirs, and in some cases, water treatment facilities. WDDSP will rehabilitate and expand existing water supply systems in participating water districts.

B. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY

4. The policy, legal, and administrative frameworks relevant to environmental assessment of water supply and sanitation projects in the Republic of the Philippines have long been established by various laws and regulations.

5. Philippine Environmental Assessment and Review Procedures. Philippine Presidential Decree (PD) No. 1586 otherwise known as the “Philippine Environmental Impact Statement (EIS) System” covers the environmental assessment requirements for infrastructure and development projects in the Philippines. This system requires project proponents to obtain an Environmental Compliance Certificate (ECC) or a Certificate of Non-Coverage (CNC) from the Philippine Department of Environment and Natural Resources (DENR) before an infrastructure project can be constructed. The procedural process of complying with PD 1586 is embodied in the revised procedural manual of its Implementing Rules and Regulations (IRR) known as “DAO 2003-30”.

6. Under these guidelines, improvements or expansion of existing water supply systems shall be required to submit a document in the DENR format of an IEE for the ECC application. Conditions set by DENR in the issued ECC will form part of the approved environmental management plan. WDs shall apply for an ECC or CNC from the regional offices of DENR’s Environmental Management Bureau (EMB).

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7. Compliance to ADB Safeguards. The Philippine environmental assessment system conforms with ADB’s environmental assessment requirements as revealed by ADB’s Special Evaluation Study on Environmental Safeguards (2006). The Philippine and ADB project environmental categorization systems provide similar divisions in each category according to the nature and scale of a project as shown by the key findings from the said study. Both systems have similar environmental assessment requirements for the same or similar category of projects.

8. Institutional Capacity. Presently, LWUA does not have a separate environmental unit. Hence, meeting the environmental requirements at the project-planning phase, such as the preparation of IEEs, is through external resources such as consultants. Similarly, at the WD level, no environmental unit has been established in each WD. Ideally, a separate environmental unit is most desirable to attend to the environmental requirements of WDDSP and the subprojects. However, given the organizational constraints in government institutions, the best option would be to assign an Environmental Officer to LWUA’s Project Management Unit (PMU). The need for an Environmental Officer increases as the project proceeds to construction and monitoring activities have to be executed. Due to the lack of an environmental unit, it will be necessary to use external resources such as consultants for the environmental monitoring during construction.

C. ANTICIPATED ENVIRONMENTAL IMPACTS

9. Environmental impacts and risks are expected from the construction and operation of infrastructures for water supply of each subproject. In addition, some pre-construction considerations shall be examined to effectively manage the impacts and risks during the construction phase. These may include: (i) proactively addressing during detailed design the potential nuisances and problems to the public during construction, (ii) precautions for archaeological and cultural assets, and (iii) loss of assets. There is also a need to determine how the tender and contract documents can be compliant to the requirements of an environmentally responsible procurement.

10. A screening process shall be developed for identifying which impacts and risks requires mitigation. Typical construction impacts associated with horizontal construction are expected in the construction of the water treatment plant, pumping stations, pipelines, and reservoirs. These may include the following: (i) soil erosion and sediments of construction sites, (ii) noise from construction equipment, (iii) local air pollution due to construction activities, (iv) vehicular traffic congestion and public access, (v) hazards to public due to construction activities, (vi) pollution and health risk due to workers camp, and (vii) improper closure of construction sites. An expected positive impact is the increase of employment opportunity at work sites.

11. For the operation phase, anticipated environmental impacts and risk of the water supply system that will require mitigating measures may include the following: (i) health hazard due to delivery of poor water quality from the water supply system, (ii) ground subsidence due to over-pumping, (iii) waste generation of water treatment plant (management of backwash water from filters), (iv) water treatment plant operational risk and safety, (v) pumping stations operational risk and safety, and (vi) water pollution due to increase generation of sewage and sullage from increased water supply availability. The likelihood of over pumping the groundwater can be avoided if the recommendations on the sizes of pumps and motors to be installed in the wells will be based on the evaluation of test pumping results and available

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF 3

groundwater drawdowns. Available groundwater flows within the existing wellfields and future wellfields shall be based on the evaluation of available aquifer hydraulic properties.

D. ENVIRONMENTAL ASSESSMENT FOR SUBPROJECTS

12. WDDSP selects subprojects according to the following main criteria: (i) demand for improved water supply, (ii) financial capacity, and (iii) project preparedness. Environmental criteria shall be added to ensure the environmental soundness and sustainability of subprojects. Environmental assessment and the subsequent preparation of the environmental management plan (EMP) shall be in accordance with ADB’s Safeguard Policy (2009).

13. Environmental Criteria for Subproject Selection. All proposed subproject components should not be adjacent or within the following areas: (i) cultural heritage, (ii) protected area, (iii) wetland, (iv) mangrove, (v) estuarine, (vi) buffer zone of protected area, and (vii) special area for protecting biodiversity. Construction and maintenance activities of facilities within these areas may cause significant environmental impacts. The costs associated with environmental mitigating measures affecting environmentally sensitive areas would be prohibitively high and very difficult to justify.

14. For proposed water sources, these should not be on lands owned or claimed under adjudication by indigenous peoples without full documented consent of such peoples. As reflected in the prohibited list of ADB’s Environmentally Responsible Procurement (2007), it is prohibited to have production or activities that impinges on such lands without full documented consent of the indigenous peoples.

15. Pipeline alignments that will cause the removal of many houses and various obstructions shall also be avoided, if possible. It will cause significant adverse impacts to the communities. This will surely entail a huge compensation and resettlement cost. Pipeline alignments should be studied carefully with the objective of minimizing loss of assets.

16. Subproject Screening and Classification. Screening for environmental classification of the subprojects shall be based on ADB’s environmental categorization. All subprojects are likely to be Category B under ADB’s environmental categorization due to the following considerations: (i) no large impounding reservoirs in rivers for water sources, and (ii) no intrusions into environmentally sensitive areas. Hence, only IEEs will be required.

17. Environmental Assessment. The environmental assessment shall be carried out in accordance with ADB’s Safeguard Policy (2009) and the requirements describe in its Appendix 1 (SAFEGUARDS REQUIREMENTS 1: ENVIRONMENT). It shall follow the outline prescribed in the Annex to Appendix 1. Consequently, the assessment report should contain sections of the following: (i) executive summary, (ii) introduction, (iii) policy, legal, and administrative framework, (iv) description of the environment, (v) anticipated environmental impacts and mitigation measures, (vi) information disclosure, consultation, and participation, (vii) grievance redress mechanism, (viii) environmental management plan, and (ix) conclusion and recommendations.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF 4

18. As required under the safeguards policy, the assessment process shall be based on current information, including an accurate project description, and appropriate environmental and social baseline data. The environmental assessment will consider all potential impacts and risks of the project on physical, biological, socio-economic, and physical cultural resources in an integrated way. However, the scope will be narrow since only IEEs will be prepared. Whenever applicable, the assessment shall also consider the following items as described in Annex 1 to Appendix 4 of the policy paper: (i) biodiversity conservation and sustainable natural resources management, (ii) pollution prevention and abatement, (iii) health and safety, and (iv) physical cultural resources.

19. EMP Preparation. Preparation of the environmental management plan (EMP) shall also be in accordance with ADB’s Safeguard Policy (2009) and the requirements for EMP describe in its Appendix 1 (SAFEGUARDS REQUIREMENTS 1: ENVIRONMENT). EMP components can be grouped into: (i) environmental mitigation, (ii) environmental monitoring, and (iii) implementation arrangement. Project performance monitoring shall be included in the subsection for environmental monitoring. Institutional set-up shall discuss the roles during implementation and the required monitoring. It shall also outline the requirements and responsibilities during pre-construction, construction, and operation phases.

20. Summaries of the environmental mitigation plan, environmental monitoring plan, and project performance monitoring plan shall be presented in tabulated form. These plans shall cover the pre-construction, construction, and operation phases. The subsection on environmental mitigation shall address the need for mitigation and management measures of the subproject’s impacts and risks. It shall provide information on: (i) measures for each environmental impact that requires mitigation, (ii) locations where the measures apply, (iii) associated cost, and (iv) responsibility for implementing the measures. This may also discuss topics that need emphasis such as environmentally responsible procurement. The subsection on environmental monitoring shall present information on: (i) aspects or parameter to be monitored, (ii) location where monitoring is applicable, (iii) means of monitoring, (iv) frequency of monitoring, (v) responsibility of compliance monitoring, and (vi) cost of monitoring.

E. CONSULTATION, INFORMATION DISCLOSURE, & GRIEVANCE REDRESS MECHANISM

21. Each subproject shall carry out various activities concerning information disclosure, public consultation, and public participation. Initially, information disclosure and public participation can be achieved in the planning stage during the initial field surveys where the WD’s and planning consultants shall conduct key informant interviews and focus group discussions (FGDs) with: (i) local health officials, (ii) gender focal persons of LGU, (iii) city and barangay officials, (iv) LGU planning officials, (v) local environment officials, and (vi) representatives of urban poor NGOs. Another opportunity for information disclosure is during the conduct of a socioeconomic survey where normally large number of households in a subproject area shall be informed about the proposed subproject and interviewed for socioeconomic data.

22. During planning stage, a consultation event can also be organized to ensure that stakeholders are formally informed and consulted about a proposed subproject. Each WD shall formally invite representatives of stakeholders for a three-hour public consultation meeting. This will be an opportunity to formally discuss the proposed

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF 5

water supply subproject in a form and language understandable to the stakeholders. Stakeholders shall be informed on: (i) proposed subproject components, (ii) potential environmental and social impacts, and (iii) proposed mitigating measures to those impacts. Stakeholders shall be encouraged to raise their social and environmental issues during this meeting.

23. Future Disclosure and Consultations. The process of public consultation and participation can be continued during the detailed design phase where additional information shall be disclosed. A typical event that can be used for this purpose is the public hearing for new water tariffs normally conducted by LWUA and WDs. This event can also be used to disclose the results of the environmental assessment for each subproject. Views of the stakeholders shall be elicited during the discussions. Large group of stakeholders are usually expected to attend this public hearing due to issues on proposed water tariffs. During the construction phase, WDs may again conduct consultation meetings with specific groups who have issues to raise such as part of a village affected by ongoing construction activities.

24. Grievance Redress Mechanism. The role of local grievance redress mechanism is important in the planning and implementation of the proposed WDDSP subprojects since any complaints and concerns of the affected people must be addressed promptly at no costs to the complainant and without retribution. Complaints about environmental performance of subprojects during the construction phase can best be handled by an ad-hoc Water District Environmental Complaints Committee (WDECC) for expeditious resolutions to the complaints.

25. Each WD shall form a WDECC to be chaired by the WD’s Project Implementation Unit (PIU) head. Members shall include the following: (i) contractor’s highest official at the site such as Construction Manager or Construction Superintendent, (ii) barangay officials, (iii) concerned NGOs, and (iv) women’s organizations. Creation of the WDECC and its operation, including the procedures for filing of complaints, shall be included in appropriate sections of the civil works contracts. Expeditious resolution of complaints during construction should be done. This mechanism shall be disclosed in public consultations during detailed design and in public meetings during the construction phase.

26. Complaints about environmental performance of projects issued an ECC, such as the WDDSP subprojects, can also be brought to the attention of the regional offices of DENR-EMB. The process of handling such complaints is described in the Revised Procedural Manual (2007) for the IRR of PD 1586.

F. INSTITUTIONAL ARRANGMENT AND RESPONSIBILITIES

27. LWUA is the executing agency of WDDSP, while each WD is the implementing agency of their respective subproject. LWUA has overall responsibility for project coordination, implementation, and liaison with ADB and other government offices. LWUA will establish a PMU to coordinate implementation at the national level, including procurement of goods, works, and services. A PMU staff shall be designated as the Environment Officer for WDDSP. At the subproject level, WDs will be responsible during construction and operation phase of the subprojects. During the construction phase, WDs shall establish a PIU to work closely with LWUA’s PMU. A team of consultants will assist LWUA’s PMU and the WDs during pre-construction and construction phases.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF 6

28. IEE Preparation. During loan implementation, the PMU shall be responsible for the preparation of the IEEs. A local Environment Specialist working with the PMU and WDs shall prepare all the IEEs. Each WD, as project owner, shall be involved closely in the IEE preparation and shall make the arrangements for fieldwork, meetings, and public consultations.

29. ADB Review. ADB shall review the IEEs and determine if it complies with ADB’s requirements for environmental assessment through its department responsible for administering the loan. ADB’s Environment Specialist shall work closely with the PMU to ensure the timely review of the IEEs and the inclusion of necessary revisions.

30. Clearances and Permits. Under present Philippine regulations, WDs shall apply for an Environmental Compliance Certificate (ECC) from the DENR regional offices for the proposed water supply systems. Obtaining the ECC shall be the responsibility of the respective WDs with assistance from the PMU.

31. Implementation Cost and Budget. Most of the expected WDDSP funds have been allocated already to the first batch of subprojects. The remaining amount might be suitable for funding a second batch comprising of 3 subprojects. Based on the necessary workload for the preparation of 3 IEEs and ECC application, a local Environmental Specialist shall prepare the IEEs in ADB format and DENR format for ECC applications. The estimated cost of environmental assessment and DENR review is presented below. Costs are allocated for a return trip expenses to the field associated with the review process.

Estimated Cost of Environmental Assessment and Review Item Cost Environmental Assessment / IEE Preparation a. Environmental Specialist @ $4,000/man-month x 2 $8,000 months b. Fieldwork Expenses @ $600/IEE x 3 IEEs 1,800

ADB Review and DENR ECC Application a. Review Field Expenses @ $450/IEE x 3 IEEs 1,350 b. DENR ECC Application @ $150/IEE x 3 IEEs 450 Total Cost…. $11,600

32. Capacity Development. Environmental monitoring would be a new activity to LWUA’s PMU and the WDs’ PIU. It is therefore necessary to provide an Environmental Advisor to the PMU during the implementation of the WDDSP Loan. The Environmental Advisor shall be responsible for the training of PMU’s Environmental Officer and WDs PIU staff. The Environment Specialist of the construction supervision consultants may also be PMU’s Environmental Advisor during the construction phase. The learning process and building of the technical capability of the PMU and PIUs on environmental management would normally require 6 months of intermittent input from the Environmental Advisor.

G. MONITORING AND REPORTING

33. Environmental monitoring for all subprojects covers all phases of project implementation, namely: (i) pre-construction phase, (ii) construction phase, and (iii)

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operation phase. The pre-construction phase plays a very important role in the monitoring activities of the subsequent construction phase. It is in the pre- construction phase where requirements for environmental monitoring in the construction phase can be legally required by placing specific provisions on environmental monitoring in the: (i) subproject specifications, (ii) bidding documents, and (iii) construction contracts. The responsibilities and frequency of submission of environmental monitoring reports by the contractors, supervision consultants, PIU, PMU, and LWUA shall be specified. Specifically, LWUA needs to submit to ADB the semi-annual environmental monitoring reports.

34. Pre-construction Monitoring. Design consultants will prepare the design and tender documents during the pre-construction phase. Relevant aspects of each subproject’s EMP shall be incorporated in these documents. LWUA PMU and the WD’s PIU shall verify if these aspects are incorporated in these documents first during submission of the draft documents and later during submission of the draft final documents.

35. Construction Environmental Monitoring. Contractors are expected to implement the relevant aspects of each subproject’s EMP during execution of the construction activities as stipulated in their contracts. Construction supervision consultants can easily perform the monitoring tasks since each subproject’s EMP has an environmental monitoring plan that provides information on: (i) aspects or parameter to be monitored, (ii) location where monitoring is applicable, (iii) means of monitoring, and (iv) frequency of monitoring. Construction supervision consultants shall prepare monthly, quarterly, and annual environmental monitoring reports to be submitted to LWUA’s PMU and WD’s PIU. These reports should provide details on the status of mitigating measures implementation.

36. Operation Phase Environmental Monitoring. Environmental monitoring during operation is essentially a self-monitoring activity since monitoring agencies do not have the resources to do the monthly monitoring. For the water supply system, each WD shall monitor its water quality monthly for bacterial counts and annually for the physical and chemical parameters. Results of this monitoring shall be submitted to LWUA.

37. Consolidated Quarterly Environmental Monitoring Report. During WDDSP implementation, LWUA’s PMU shall consolidate all monthly environmental monitoring report of all subprojects and prepare the Quarterly Environmental Monitoring Report. This quarterly report shall also include the project performance monitoring. EMP of each subproject has project performance monitoring matrix that presents the desired outcomes as measurable events by providing parameters or aspects that can be monitored and verified.

38. Reporting to ADB. As required by a loan agreement between ADB and the borrower (LWUA), a semi-annual and annual progress report of WDDSP shall be submitted to ADB. The WDDSP Progress Report shall include the environmental aspects extracted from the Quarterly Environmental Monitoring Report. However, the Semi-annual Environmental Monitoring Report shall also be submitted to ADB.

TA No. 7122-PHI: WDDSP PPTA – FR Vol. 12 – EARF Supplementary Appendix U

Resettlement Planning Document ______

Resettlement Framework Document Stage: Draft March 2010

PPTA 7122 - WDSSP: Water District Development Sector Project

Prepared by: Local Water and Utilities Administration (LWUA)

The Resettlement Framework is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol. 12 - RF Supplementary Appendix U

CONTENTS

I. Introduction 1 1. Project Background 2. Scope of the Resettlement Framework

II. Legal Framework 1 A. Philippine Laws and Policies B. ADB Policies C. Gap Analysis and Reconciliation of Laws and Policies

III. Project Principles 6

IV. Project Entitlements 7

V. Screening and Preparation of Resettlement Plans 9 A. Screening B. Subproject Resettlement Plan Preparation C. Surveys for Resettlement Plan Preparation

VI. Consultation, Grievance Redress, and Disclosure 11 A. Consultation and Participation B. Grievance Redress C. Disclosure

VII. Relocation and Income Restoration Strategy 12

VIII. Vulnerability, Gender, and Ethnicity 12

IX. Institutional Arrangements 12

X. Monitoring and Evaluation 13

XI. Implementation Schedule and Budget 15

Tables

1 Laws and Statutes Governing Resettlement in the Philippines Applicable to WDDSP 2 2 Comparison and Reconciliation of Applicable Philippine Laws, ADB’s Policy and Project Policy 5 3 Project Entitlement Matrix 8 4 Indicators for External Monitoring 14

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol. 12 - RF i Supplementary Appendix U

Definition of Terms

Affected People (APs) includes any person or entity or organization affected by the Project, who, on account of the involuntary acquisition of assets in support of the implementation of the Project, would have their (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house and buildings, pavements and other physical improvements, land (including residential, commercial, agricultural, plantations, forest and grazing land) water resources, annual or perennial crops and trees, or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily; and (iii) business, profession, work or source of income and livelihood lost partly or totally, permanently or temporarily.

Compensation – payment in cash or in-kind at replacement cost for an asset affected or to be acquired by the Project.

Eligibility cut-off date is the date that a population record or census, preferably at the project identification stage, serves as an eligibility cut-off date in order to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The cut-off date will be the date when the census for the RP is completed.

Entitlement refers to range of measures comprising compensation in cash and/or in kind payment for loss of land and non-land assets, including assistance for income restoration and relocation and special support to poor and vulnerable households.

Land Acquisition is the process whereby a person is compelled by the Government through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the government in the implementation of the Project or any of its components in return for consideration.

Relocation is the physical shifting of an AP from his/her pre-project place of residence and/or business to another place.

Replacement Cost is the amount in cash or in-kind needed to replace an asset and is the value determined as compensation for: a. Agricultural land based on market prices that reflect recent land sales prior to the commencement of the Project or displacement, and in the absence of such recent sales, based on assed and prevailing market value; b. Residential land based on market prices that reflect recent land sales prior to the commencement of the Project or displacement, and in the absence of such recent land sales, based on similar location attributes; c. Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials; d. Crops based on current market value; e. Trees and other perennials based on current market value; and f. Other assets (i.e., income, community facilities) based on replacement cost or the cost of mitigating measures.

Rehabilitation means assistance provided to severely affected APs due to the loss of 10% or more of productive assets (i.e., farmland, crops and trees, vegetable garden, etc.), incomes, and employment or when sources of living such as shops and place of employment have to be reconstructed completely and/or relocated. The livelihood support may be given in cash or in kind or a combination of the two in order to improve, or at least achieve full restoration of living standards to pre-project levels.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol. 12 - RF ii Supplementary Appendix U

Resettlement refers to all measures taken by the Project proponents to mitigate any and all adverse social impacts of the Project on the APs, including compensation for lost assets and incomes, and the provision of other entitlements, income restoration assistance, and relocation as needed. Resettlement is significant where 200 or more people experience major impacts. Major impacts are defined as involving affected people being: (i) physically displaced from housing/dwelling units and/or (ii) having 10% or more of their productive, income generating assets lost; and/or (iii) lose more than 40% of their residential structure. Affected people experiencing major impacts are referred to as ‘severely affected APs’.

Structures and structural losses refer to losses to constructed assets, residential houses, pavements, driveways, institutional structures, utility structures, business structures with residence attached to it and other income producing spaces.

Severely Affected Persons are those who experience significant /major impacts due to (i) loss of 10% or more of their productive, income-generating assets and /or (ii) being physically displaced from housing, place of residence and sources of income.

Vulnerable Groups are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) households headed by women, the elderly or disabled, (ii) households living below the poverty threshold, (iii) the landless, and (iv) indigenous people and ethnic minorities

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ABBREVIATIONS

ADB Asian Development Bank AP affected person(s) DA Department of Agriculture DMS detailed measurement survey EA Executing Agency EMA External Monitoring Agency HH Household IA Implementing Agency IOL Inventory of losses IP Indigenous Peoples Plan GAD Gender and Development GAP Gender Action Plan LWUA Local Water and Utilities Administration LGU Local Government Unit PIB public information booklet PIU Project Implementation Unit PMU Project Management Unit RF Resettlement Framework RP Resettlement Plan ROW right-of-way SES Socio economic Survey SPAR Subproject Appraisal Report WD Water District WDRC Water District Resettlement Committee

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I. INTRODUCTION

A. Project Background

1. In October 2007, LWUA requested the National Economic Development Authority (NEDA) to include WDDP in the ADB Programming Mission and submitted a Concept Paper. NEDA stated that the proposed project contributes to the attainment of the Medium-Term Philippine Development Plan (MTPDP) and was consistent with government policy. In February 2008, NEDA invited LWUA in the 2008 Government of Philippines (GOP) Country Programming with ADB and the World Bank (WB).

2. ADB fielded a Fact-Finding Mission during 25 March – 9 April 2008 and formulated the PPTA in line with the poverty reduction policies of the Government and ADB, and the Millennium Development Goals (MDG),1 and reached a preliminary understanding with the Government on the goals, purpose, and implementation and financing arrangements, cost and terms of reference (TOR) of the PPTA. ADB assisted LWUA for the PPTA to prepare a sector development plan addressing these overarching concerns and issues. The project name is Water District Development Sector Project (WDDSP).

3. The sector project objective was to improve the livability and competitiveness in urban areas outside Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The objective of the PPTA was to (i) formulate a sector investment project (WDDSP) in the urban water supply and sanitation sector2 with funding from ADB and other investment sources, and (ii) prepare implementation support and institutional development programs addressing sector reform, governance and public awareness. Based on the financial planning budget of ADB, the scope of the initial phase of the sector project will cover a short-list of up to five pilot water districts (WD), and additional list of WDs will be identified for implementation under subsequent phases. Subproject appraisal reports (SPAR) were prepared for the five pilot WDs during the PPTA.

B. Scope of the Resettlement Framework

4. This Resettlement Framework (RF) presents the general guidelines and procedures in preparing the Resettlement Plans (RPs) for all subprojects under the WDDSP. Results of resettlement impact assessment were used in the preparation of Resettlement Plans for some pilot subprojects under the WDSSP. Additional subprojects identified in the future under the Project, which will require preparation of resettlement plans, will be formulated using this resettlement framework. The RPs of the succeeding WD subprojects will be reviewed and endorsed by executing agency, prior to its submission for ADB’s approval

II. LEGAL FRAMEWORK

A. Philippine Laws and Policies

5. The Philippine Constitution states that the protection of property is State Policy and is essential for Filipino to enjoy the benefits of democracy. Private property is the right of every citizen. The Constitution also states that it prohibits depriving any person of his property

1 Particularly Goal 7 – Ensure environmental sustainability; and Target 10 – Halve, by 2015, the portion of people without sustainable access to safe drinking water and basic sanitation. 2 Defined as encompassing human waste (‘black’ water) and wastewater (household ‘grey’ water, industrial effluents, etc).

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without due process and no taking of property is allowed by law with no just compensation. Existing legislations and guidelines that address various aspects of land acquisition and resettlement include among others Executive Order 1035, RA 6657, RA 7160, RA 7279, RA 8435, and RA 8974. Table 1 describes the laws and statutes applicable to aspects of resettlement.

Table 1: Laws and Statutes Governing Resettlement in the Philippines Applicable to WDDSP

Aspects of Laws and/or Statutes Description Resettlement Community R.A. No. 7160 (Local Provide prior consultation with affected communities on Participation and Government Code), Sections any project and require the approval of the concerned Consultation 2 (c) and 27. Sangguniang Panglunsod (municipal council)

R.A. No. 7279 (UDHA Law), The provisions of this law also require consultations with Article I, Sec. 2; Article V, affected persons and communities. Sec. 23; Article VII, Sec. 28 (2) and IRR of UDHA, Sec. 3 The results of consultations will form part of the approval (e.1) of the resettlement plans by the LGU’s Sangguniang Panglunsod (SP); Sanguniang Bayan (SB)

RA No. 8435 (Agriculture and Consultation and participation of farmers, fisher folks and Fisheries Modernization Act of agrarian reform communities (ARCs) and other 1997) stakeholders on the components of the project to them.

Land Acquisition R.A. No. 7160 (Local Provision for the LGUs or sub-national administrative Government Code), Section entities in the exercise of the power of eminent domain 19. but it can only be applied for "public use or purpose or for the benefit of the poor and the landless" and property owners will be paid with just compensation.

EO 1035 Facilitating the Acquisition of Right-of-Way, Site or Location of National Government Infrastructure Projects R.A. No. 8974 (Guidelines for and for Other Purposes. Government Acquisition of Right of Way or Site Location)

R.A. No. 7279 (Urban Provision for the development, award and disposal of land Development and Housing under usufruct arrangement for purpose and use of Act of 1992) socialized housing and urban services.

Comprehensive Agrarian RA 6657 Section 28 states that landowner shall retain his Reform Law Republic Act share of any standing crop un-harvested at the time the 6657 (1988) DAR shall take possession of the land under Section 16 of this Act, and shall be given a reasonable time to harvest Republic Act 6389 RA 6389 states that “in the event of change in land use from agriculture to other uses, agricultural lessees are entitled to disturbance compensation equivalent to five times the average of the gross harvests on his landholding during the last five preceding calendar years."

Compensation R.A. No. 8974, Sections 8, 9, Provide for the compensation of affected properties based 10 and 13. on current market prices.

Poor R.A. No. 7279 (UDHA Law), For urban poor, provision for basic services and livelihood Article V, Sections 21 and 22. component under socialized housing and urban services. Implementing Rules and For rural poor, they are not to be evicted nor are their Regulations of UDHA, Section dwellings demolished except in accordance with the law 3, III (b.3.0) in a just and humane manner (Constitution). Assistance is limited only to payment at replacement cost for structures and improvements. Additional assistance may be provided on a case by case basis.

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Aspects of Laws and/or Statutes Description Resettlement

Monitoring Executive Order No. 152 Prescribes for the broad monitoring of all types of eviction ( Series of 2002) 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.

Disclosure Constitution It states "full public disclosure by the State of all its transactions involving the public interest “and "the RA 7279 Citizens have the right of access to information on matters of public concern. Requires that all households affected are informed of any proposed development plan.

B. ADB Policies

6. The aim of ADB Policy on Involuntary Resettlement is to avoid or minimize the impacts on people, households, businesses and others affected by the acquisition of land and other assets, including livelihood and income. Where resettlement is not avoidable, the overall goal of the ADB policy is to help restore the living standards of the affected people to at least their pre-Project levels by compensating for lost assets at replacement costs and by providing, as necessary, various forms of support.

7. The main objectives and principles of the ADB Policy on Involuntary Resettlement are as follows: a. Involuntary resettlement should be avoided where feasible. b. Where population displacement is unavoidable, it should be minimized by exploring all viable project options. c. All compensation is based on the principle of replacement cost. d. Each involuntary resettlement is conceived and executed as part of a development project or program e. Affected people should be fully informed and consulted on compensation and/or resettlement options. f. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. g. The absence of a formal legal title to land is not a bar to ADB policy entitlements. h. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers of others who wish to take advance of such benefits. i. Particular attention must be paid to the needs of the poorest affected households and other vulnerable groups that may be at high risk of impoverishment. This may include affected households without legal title to land or other assets, households headed by women, the elderly or disabled, and ethnic minority socio-economic status.

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j. The full costs of resettlement and compensation should be included in the presentation of project costs and benefits. k. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and ensure compliance with involuntary resettlement procedures during implementation.

8. ADB’s Policy on Indigenous Peoples defines “indigenous peoples” as “those with a social or cultural identity distinct from the dominant or mainstream society.” "Indigenous peoples" is a generic concept that includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals. The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them.

9. The policy on indigenous peoples is “designed to promote the participation of indigenous peoples in project preparation and implementation, to ensure that they benefit from development interventions that would affect them, and to provide effective safeguards against any adverse impacts”. In any ADB interventions, the approaches to be used are as follows: (i) to achieve the greatest possible reduction of poverty among the affected indigenous peoples; (ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts; (iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and (iv) the mechanisms for any intervention must be transparent and should ensure accountability.

10. ADB’s Policy on Gender and Development adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005) and OM Section L3/BP (September 2005), and (ii) Accountability Mechanism (OM Section L1/BP, dated 29 October 2003)

C. Gap Analysis and Reconciliation of Laws and Policies

11. In the design of compensation and entitlements of affected persons or households, consideration was given to the resettlement policies of the Philippine Government and that of ADB. The policies are shown in Table 2 citing comparison, applicability and reconciliation in order to address the gaps in this Project.

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Table 2: Comparison and Reconciliation of Applicable Philippine Laws, ADB’s Policy and Project Policy Philippine Laws/ Key Issues ADB Policy Project Policy Policies 1. Non-titled land users, Philippine Constitution, Non- titled APs are not Non- titled APs are not caretakers/ tenants of Article XIII, Section 10: entitled to compensation entitled to compensation of land, sub-leased space Urban or rural poor of land but APs including land but APs including not covered by contracts dwellers shall not be renters, informal settlers/ renters, informal settlers/ between and among evicted nor their squatters are entitled to squatters are entitled to the owners of land, and dwellings demolished, payment for non-land payment for non-land assets informal settlers of except in accordance assets and assistance to and assistance to restore private government with the law and in a just restore their pre-project their pre-project living property, including humane manner. living conditions. conditions. community facilities Focus is given on urban If they are poor and If they are poor and poor as per UDHA. vulnerable, appropriate vulnerable, appropriate Limited assistance or assistance must be assistance must be provided protection is given to the provided to help them to help them improve their rural poor unless they are improve their socio- socio-economic status. tenured agricultural economic status. underclass. If government infrastructure is affected, owners are The law is not very clear consulted and compensation on assistance to small and replacement will be enterprises, renters provided. 2. Compensation of R.A. No. 8974, Sections All compensation is All compensation will be land, commercial 8, 9, 10 and 13 provides based on the principle of based on the principle of structures, residential compensation of affected replacement cost. replacement cost. and income generating properties based on fair spaces with attached market value. with mixed- uses, crops Executive Order 1035 and trees. (1985) provides for the procedures and guidelines for the expeditious acquisition of properties and rights by the Philippine Government for infrastructure and other government projects. 3. Provision of Income restoration/ All eligible APs including Rehabilitation assistance will rehabilitation assistance rehabilitation assistance tenants, employees of be provided to those who to displaced households is available only to affected businesses who lose 10% or more of their resettled and stand to lose their jobs, income generating assets beneficiaries of socialized incomes or livelihoods and or physically displaced. housing. because of project impacts are entitled to Strategies to create new The Philippines has law receive one-time financial opportunities to improve protecting women, elderly income status of the poor Vulnerable groups assistance to cover and children, persons losses of the move, as and vulnerable people to with disabilities, and well as economic and avoid their further indigenous peoples. social rehabilitation. impoverishment. However, the issue is on proper implementation Measures to include the The project will provide and attention given to status of the poor and additional assistance on a these groups based on vulnerable should focus case to case basis resettlement impacts. on strategies to avoid depending on the type of future impoverishment vulnerability identified in the and create new subproject. This assistance opportunities. will be included in the subproject for each WD - RP.

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III. PROJECT PRINCIPLES

12. The WDDSP resettlement framework and entitlements have been built upon the laws of the Government of Philippines, principally the Philippine Constitution that provides basic principles of water resources development and management, which stipulate that all waters of the Philippines belong to the state and applicable laws and regulations covering land acquisition, resettlement and compensation of land and structures, and the ADB’s Social Safeguards Policy on Involuntary Resettlement (2009). Whenever a gap exists, the ADB policy on involuntary resettlement will prevail. Basic project principles of WDDSP are as follows: (i) The acquisition of land and other assets and the relocation of affected persons (APs) will be minimized as much as possible by exploring all viable options. (ii) Rehabilitation assistance will be provided to severely affected people and other vulnerable groups to assist them to improve or at least restore their pre-project living standards, incomes and productive capacity. (iii) Particular attention will be paid to the needs of the poorest people and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, landless households, households headed by females, the elderly or disabled and other vulnerable groups. Appropriate assistance must be provided to help them improve their socio-economic status. (iv) Lack of legal title to affected assets will not bar APs from entitlement to compensation and assistance. (v) In the case of the relocation of APs, replacement houses and/or agricultural land will be located as close as possible to the assets that were lost, and at locations acceptable to APs. (vi) Efforts shall be made to maintain, to the extent possible, the existing social and cultural institutions of the resettled people and host communities. (vii) APs will be fully informed and closely consulted and will participate in the preparation and implementation of RPs for each sub-project. The comments and suggestions of affected people and communities will be taken into account during the design and implementation phases of resettlement activities. (viii) Adequate resources will be identified and committed during resettlement planning for each sub-project and the overall Project. This includes adequate budgetary support fully committed for each sub-project and made available to cover the costs of land acquisition, compensation, resettlement and rehabilitation within the agreed implementation period for the sub-project; and, adequate human resources for supervision, liaison and monitoring of land acquisition, resettlement and rehabilitation activities. (ix) Appropriate reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. Monitoring and evaluation of the land acquisition, resettlement and rehabilitation processes and the final outcomes will be conducted by an independent monitoring agency. (x) Key information in the RP will be translated into Filipino or, where necessary, the local language and placed in the Water District offices for the reference of APs as well as other interested groups. (xi) ADB shall not approve of any award of civil works contract for any sub-project to be financed from the loan proceeds unless the Resettlement Plan following detailed design and based on detailed measurement survey (DMS) has been submitted to and approved by ADB. .

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IV. THE PROJECT ENTITLEMENTS

13. The executing agencies, the LWUA and WD as the borrowers for the infrastructure investment covered under the WDDSP, will ensure that the RP activities of any WD subproject submitted for funding are conducted in accordance with ADB policy on Involuntary Resettlement and Philippine Government’s applicable laws and regulations.

• Cut-off Date. All APs who are identified in the subprojects sites on the cut-off date will be entitled to compensation for their affected assets and rehabilitation measures adequate to assist APs to improve or at least maintain their pre-project income- earning capacity, production levels, and living standards. The cut-off date will be the last day of the census and detailed measurement survey (DMS) in each subproject site.DMS will be conducted after the completion of detailed engineering plans. Those who enter in the subproject site after the cut-off date will not be entitled to compensation or any form of subproject assistance.

• Potential Impacts and Entitlements. Table 3 provides the types of losses and corresponding nature and scope of entitlements. However, this matrix may not cover all resettlement impacts and or losses specific and particular to each subproject. The detailed measurement survey (DMS) will be the basis for the determining the final entitlements based on the actual impact and or losses, appropriate project assistance, relocation and, special assistance to poor and vulnerable groups during the preparation of the RP. A replacement cost survey will be carried out to determine the actual replacement costs and rates.

• Donation. Where individuals opt to make voluntary contribution of affected land, this will be acceptable only with the following safeguards in place: (i) full consultation with affected people on project entitlements, (ii) ensuring that voluntary contributions do not severely affect living standards of households and are linked directly to benefits for the affected people, (iii) any voluntary contribution will be confirmed through verbal or written record and verified by an independent third party (such as representative of a peoples’ organization), (iv) adequate grievance redress mechanisms are in place, (v) land and non-land assets contributed do not belong to the poorest and most vulnerable households, and (vi) the land is free from any legal disputes or controversies.

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Table 3: Project Entitlement Matrix Type of Loss/Impact Entitled Persons Entitlements Permanent land All APs listed in the Compensation based on the principle of replacement acquisition survey and has proof of cost which is a method of valuing assets to replace the ownership/claim of their loss at current market value, plus any transaction costs (Loss of agricultural, land. such as administrative charges, taxes, registration and residential, commercial titling costs. land) For non-titled or those Not entitled for payment for land, but will be who have no proof of compensated for non-land assets (structures, crops, ownership or claims to trees) at replacement cost. the land they occupy Entitled to cash or in-kind assistance if severely affected. Residential / AP owners who were Compensation for permanent houses and other institutional structures located at the site during structures affected either in full or in part, will be and commercial/income the cut- off date of the determined according to replacement value for materials generating spaces survey regardless of and labor to rebuild similar structures, at current market tenure and status (i.e., prices in the locality. In determining replacement costs, (Loss of owners, renters, sharers, depreciation of assets and salvage value of materials will residential/institutional/ caretakers) not be taken into account. commercial/income generating In the determination of compensation for movable structures/spaces) structures including houses, where the structures can be moved easily, transfer, relocation and repair allowances will be calculated. An assessment of material replacement will be made, based on the condition of materials, with valuations calculated based on standard replacement and restoration costs. Provision of transition and moving allowance/assistance (cash or in-kind) for APs that will opt for voluntary relocation. Loss of or Damage to All APs regardless of Cash compensation for annual standing crops equivalent Crops and Trees tenure status to current market value of crops at the time of compensation ( Loss of crops and trees as productive assets and For perennial crops, cash compensation equivalent to sources of income) current market value given the type, age and productive value. Severe impacts on All APs losing 10% or Appropriate rehabilitation measures based on actual productive assets (land more of their productive impacts as a result of DMS. based and income from income from business perennial crops and and other income Project assistance for affected households such as job trees, and income from generating assets referral and placements and assistance to be trained business) regardless of tenure of additional skills for local employment or income status generating ventures. (Permanent loss of productive assets, such Additional project assistance (cash or kind) to poor and as crops and trees, and vulnerable households will be provided income from business and non-land based assets) Temporary impacts APs planting crops and Cash or kind compensation for fixed and movable assets (during construction) vegetables on lots to be such as houses, pavements, fences community facilities, use as water sources farm structures for animals and farmers at replacement such as wells and other cost. (Temporary loss of surface water. structures and Restoration or replacement of a fixed asset I month after improvements, productive APs with improvements of construction of water transmission and distribution lines, assets, such as crops and their structure and other sanitation facilities, reservoirs and other water facilities. trees, and income from physical assets business) Compensation for lost in full or part of residential structures, community facilities and productive assets such as crops and trees, and lost income from business or wages.

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V. SCREENING AND PREPARATION OF RESETTLEMENT PLANS

A. Screening

14. Resettlement screening for WDDSP subprojects will take on during the identification and selection process for funding by the Project. The EA with the assistance of a social development specialist for resettlement will determine impacts and the involuntary requirements and prepare Resettlement Plans based on the ADB’s and Philippine government’s safeguards requirements on involuntary resettlement. Assessment of project impact such as physical displacement, loss in productive and income assets, gender, ethnicity and vulnerability impact will be appraised, and measures to mitigate them will be included in the RPs.

B. Subproject Resettlement Plan Preparation

15. If resettlement impacts cannot be avoided, the preparation of a resettlement plan is required. Following procedures sets out the preparation of the RP: (i) Carry out a census of all APs; (ii) Undertake detailed measurement survey (DMS)3 of all losses of all APs. At the same time, inform potential APs (without discrimination) of the subproject, its likely impacts, and principles and entitlements as per the RF (iii) Conduct of a socioeconomic survey (SES)4 of at least 10% of all affected households, 20% of severely affected household; (iv) Carry out replacement cost (valuation) survey for various types of affected assets as a basis for determining compensation rates at replacement cost. Identify losses in accordance with the entitlement matrix5; (v) Provide project and resettlement information to all affected in a form and language that are easy to understand, and closely consult with them on compensation and resettlement options, including relocation sites and economic rehabilitation; (vi) A draft RP prepared with implementation schedule that harmonizes with the project schedule, a budget, procedures for grievance mechanism and monitoring and evaluation; (vii) Disclose the draft and final RP in accordance with ADB’s policy on involuntary resettlement and in ADB’s public communication policy for the affected communities. The draft RP, endorsed by the EA and IA will be disclosed to the APs prior to submission to ADB.

C. Surveys for Resettlement Plan Preparation

16. Socio- Economic Survey (SES). The socioeconomic survey will collect information from 10% of affected APs and 20% severely affected APs, disaggregated by gender (ADB- OM para. 34). The purpose of the socio-economic survey is to provide baseline data on affected persons or households to assess resettlement impacts, and design rehabilitation measures, and to be used for resettlement monitoring. The scope of data to be collected includes:

3 Data will be gender and ethnic minorities disaggregated. 4 It will include gender analysis and data will be gender and indigenous peoples disaggregated. 5 If there are new categories of APs and or losses identified during the DMS ( aside from those described in the entitlement matrix), the entitlement will be revised in accordance with ADB’s policy and guidelines.

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(i) the names and the personal information about the households (civil status and gender, information on women-headed households, elderly members, etc); (ii) housing, institutional, commercial/selling spaces and security of tenure that denote status of ownership, type of real property and their location; (iii) economic profile of the households which will indicate their monthly incomes and expenses, information on savings, assets owned, and borrowings; (iv) health, water and sanitation; (v) access to basic services and facilities; (vi) social networks as in membership in associations, types and projects of the associations, as registered voter of the community, and type of assistance extended by the neighborhood; (vii) risks and vulnerabilities (pertaining to environmental risks, calamities, impoverishment brought about by relocation, social exclusion by being very poor, and households headed by women, elderly, disabled, etc.), peace and order and discrimination experience in the community, in which all data collected will be disaggregated for gender.

17. Assets Inventory. An inventory of assets or losses survey (IOL) is needed to collect data on the affected assets from 100 % APs during the project preparatory stage. If data available is only a sample of a projected impact, the conduct of detailed measurement survey (DMS) following the completion of detailed engineering design is a must step. Data collected during the DMS will constitute the formal basis for determining AP entitlements and levels of compensation and project assistance. An updated RP will be prepared prior civil works commence. For each AP, the scope of the data will include: (i) Total and affected areas of land, by type of land assets; (ii) Total and affected areas of structures, by type of structure (main or secondary); (iii) Legal status of affected land and structure assets, and duration of tenure and ownership; (iv) Quantity and types of affected crops and trees; (v) Quantity of other losses, e.g., business or other income, jobs or other productive assets; (vi) Quantity/area of affected common property, community or public assets, by type; (vii) Computed replacement cost of affected assets, i.e., land, structures and improvements, income from business, crops and trees, etc. (viii) Summary data of APs, by ethnicity, gender of head of household, household size, primary and secondary source of household income, income of household headed by women, elderly or disabled; (ix) A list of APs resulting from the DMS will be kept by the WD. (x) Identify whether affected land for acquisition is primary source of income. (xi) APs project information and or knowledge of the subproject and preferences for compensation (cash or kind) as long as it is comparable to pre-project conditions and, as required provisions of relocation sites with comparable facilities and access to income sources and the provision of rehabilitation measures are in placed.

18. Replacement Cost (Valuation) Survey. To ensure that the actual compensation reflects current replacement costs of assets lost, the LWUA and WD, will task their corporate internal appraisers to undertake replacement cost survey. Additionally the LWUA can also engage the services of a qualified private appraiser to carry out replacement cost survey for land and non-land assets.

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VI. CONSULTATION, GRIEVANCES REDRESS, AND DISCLOSURE

A. Consultation and Participation

19. The participatory and consultative process for the RP planning will emphasize on community participation aimed at increasing opportunities for both men and women to take active roles and responsibilities, harness their capacities and resources in planning, implementation and monitoring in all stages of the RP process such as in DMS, site identification, entitlement allocation, monitoring of impact and benefits, discussion and settlements of grievances and participation in meetings, and discussions pertinent to the subproject components. Information to be discussed with the community include the (i) description and general schedule of subproject; (ii) DMS results; (iii) policy principles, and entitlements and special provision; (iv) grievance procedures, (iv) period for payments and displacement schedules and (v) institutional responsibilities.

B. Grievances Redress

20. The LWUA will create a Water District Resettlement Committee (WDRC) in each Water District to determine qualified APs, and safeguard their rights. The WDRC is composed of the WD-PIU head as chair, concerned NGOs and the barangay officials and households headed by women as members.

21. The decision of the court is for finality of case resolution. Below are the steps to be followed in filing grievances and the procedures for redress.

Step 1: The complainant provides the background and files the grievance/complaint verbally or in writing to WDRC If unwritten, the WDRC Secretary will put it in writing and will reproduce it in four (4) copies for distribution; the original copy to WDRC, two are for the WD-PIU, and one for file of the complainant. The complainant, WDRC, as well as representatives of PIU will meet to discuss the complaint and resolve it within 15 days.

Step 2: If no solution or understanding is reached, the complainant files the grievance/complaint to the WDRC central desk at the PMO for it to be resolved within 15 days after filing. The written complaint shall be reproduced in four (4) copies; the original to PMO/RC, two for WDPIU, and one for file of the complainant.

Step 3: Again, if no solution or understanding is reached and if the grievance/complaint qualifies for hearing at the Municipal, or , the household may request for assistance of the pro bono lawyer from the Public Attorney’s office, through the WDRC. The pro bono lawyer shall assist the household in reproducing the formal complaint in six (6) copies to be distributed as follows; the original to the appropriate court, one each for PMO, PIU, WDRC and for file of the complainant.

Step 4: the Municipal Trial Court (MTC) or Regional Trial Court (RTC) assesses the merit of grievance/complaint, schedules the hearing and renders a decision. Appeals can be elevated to the high court. The Supreme Court’s decision is final and executory.

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C. Disclosure

22. As per ADB’s Public Communications Policy6, and the social safeguards policy statement on involuntary resettlement, the resettlement planning documents will be disclosed to the APs as follows: (i) Before appraisal – the draft RPs; (ii) After completion of the final RPs – the final RPs; (iii) Following revisions to the RPs as a result of detailed technical design or change in scope of the Project – the revised RPs. The executing and the implementing agency – LWUA and the WD will disclose (i) draft RP prior to submission for review and approval by ADB; final RP approved by the LWAU, WD and ADB, and (iii) any revisions to the RP as a result of change in technical plans and design. The RP will also be uploaded to the implementing agencies’ and ADB website

23. Major information that will be included in the RP for disclosure to APs include: (i) compensation, entitlement, relocation and rehabilitation options, (ii) DMS results, (iii) entitlement and special provisions; (iv) grievance procedures; (v) schedule of payments/replacements of losses; ( vi) relocation and transfer schedule. All information will be made available to WD offices and public information bulletin will be provided to APs in Filipino or language that is easy to understand in the locality where the subproject is situated. Types of information materials include leaflets, brochure and RP prepared for the subproject.

VII. RELOCATION AND INCOME RESTORATION STRATEGY

24. Relocation and Income restoration strategy will be designed with the APs during the preparation of the RP. No AP will be displaced until they are fully compensated, provided with project assistance based on the project policy and entitlements. APs will be provided with temporary or permanent place of land residence (if needed), cash or in-kind assistance during disturbance or transition, and space for mixed use (income and residence) within the vicinity of the subproject.

VIII. VULNERABILITY,GENDER AND ETHNICITY

25. This RF acknowledges that specific social groups may be lesser able to restore their living conditions, livelihoods and income levels; and may be, at greater risk of impoverishment when their land and other assets are affected. The Project will identify any specific needs or concerns that need to be considered for the ethnic minorities and other vulnerable groups such as landless, poor, and households headed by women, disabled, elderly or children without means of support. A strategy with specific actions addressing gender and ethnicity needs, as required, will be included in the subproject resettlement plan.

IX. INSTITUTIONAL ARRANGEMENTS

26. The WDDSP Steering Committee, which includes LWUA, Department of Finance, Department of Health, Department of Environment and Natural Resources and the National Economic and Development Authority, will function as an oversight committee to review, approve and endorse to ADB the subprojects including their Resettlement Plans. The overall responsibility of enforcing the WDDSP Resettlement Policy, including RP preparation and implementation rests with LWUA and the WDs. A Project Management Unit from LWUA will review and approve the RPs in accordance with the project design and principles.

6 This refers to The Public Communications Policy of the Asian Development Bank: Disclosure and Exchange of Information, March 2005.

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Additionally, the PMU will exercise the overall monitoring and evaluation of the RP preparation and implementation for all the subprojects and they will be assisted by WDDSP project implementation consultants.

27. At the WD level, a Project Implementation Unit (PIU) will be established and will be responsible for the preparation, updating and implementation of the RP. A resettlement section within the PIU will be in placed and together work as a team to ensure that the project social safeguards policies contained in the RF/RP are adhered to. The PIU will be responsible of ensuring that sustained efforts will be made to enhance community relationships in the conduct of resettlement activities such as DMS, physical design development and technical verifications, disclosure, preparation and implementation of income restoration program, timely delivery of compensation and entitlement to all APs, act as grievance officers and prepare quarterly resettlement progress reports.

X. MONITORING AND EVALUATION

28. Monitoring and evaluation of the RP implementation addresses the degree to which the resettlement activities have achieved. In harmony with civil works schedule, it allows the proponent to assess its accomplishments and their desired outcomes. Specifically, monitoring defines the RPs progress and provides helpful information in assessing the following critical milestones in the RP: (i) compliance with the agreed RF and approved subproject RP; (ii) the availability of resources and efficient, effective use of these resources to implement resettlement activities in accordance with the implementation schedule; (iii) a well-functioning resettlement units during the course of project implementation; and (v) to identify problems, if any, and corrective actions.

29. The Project Management Unit (PMU) will develop internal monitoring indicators, procedures and reporting requirements for all subprojects. Periodic reports will be submitted by the PIU to PMO and ADB. Reports include: (i) status of payment of compensation and provision of assistance to APs in accordance with the approved RP; (ii) coordination and completion of compensation and, as required, resettlement activities and commencement of civil works; (iii) adherence to public information dissemination and consultation procedures, and report on activities; and (iv) adherence to grievance redress procedures, and an account of project activities. An external monitoring and evaluation body will be engaged for the subproject in order to work on ensuring that provisions in the compensation and project assistance indicated in the RP are adhered to accordingly. Table 4 discusses the types of indicator and information required in the conduct of monitoring and evaluation.

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Table 4: Indicators for External Monitoring Type of Indicators Information Required in Monitoring and Evaluation Indicators • Number of Water district staff assigned for Resettlement Plan Staffing implementation. • Number of Social Development and Resettlement Specialist assigned by PMO. • Number of consultations and participation programs held with Consultation, APs and various stakeholders. Participation, • Types of PIBs distributed to APs. and • Number and types of grievances received from APs and the Grievances number of days consumed in resolving them by concerned Resolution GRCs. • Number and names of representatives of community and APs who participated in the consultations and in RP implementation. • Reporting and feedback mechanism in placed. • Types of forms used in recording the activities undertaken in

RP implementation. • Efficiency of coordination with PMO, PIU, APs and other Operational institutions. Procedures • Type of database being maintained. Process Indicators • Efficiency of PIU and Water District staff; • Efficiency of compensation and disbursement payment system. • Adequacy of logistical support for implementing the RP. • Asses if the project policies in RP have adequately been complied with. Issues and • Indicate the issues and problems encountered in staffing, Problems during consultations and grievances resolution, and in the Encountered execution of operational procedures. • Indicate number of consultations conducted to resolve issues and problems pertinent compliance of the WD in the provisions of the RP. • Household Indicate the actual number granted applications for water Water connection. • connection Indicate the amount of monthly payments that shall be paid by beneficiaries. • Indicate the frequency of information received by the APs as regard access to water connection. • Indicate number female headed households benefiting the water connection. • Indicate number of households. • Number of APs availed individuals’ water connection. • Indicate if the type of payment either one time or installment.

OutputIndicators • Indicate if the APs who are engaged in micro business that Compensation were affected and were compensated for their temporary loss and of business incomes due to project construction. Entitlement • Indicate record of disbursements and acceptance of APs of their entitlement.

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XI. IMPLEMENTATION SCHEDULE AND BUDGET

30. All costs relating to RP implementation is part of the Subproject budget. Land acquisition, compensation for non-land assets, project assistance, subproject administration, monitoring, including contingencies will be funded by the WD. Subprojects with significant impacts may require the engagement of an external monitor. Cost of external monitoring and post evaluation can be funded under the loan budget.

31. The PMU-LWUA will ensure the timely delivery of budget for implementation of resettlement activities. All compensation and payments for land and non-land assets and assistance will be prepared by the PIU and the finance office of the WD. A compensation schedule chart approved by the WD proponent will be undertaken before the project construction. Funds disbursement procedures to the APs will follow the new accounting rules and regulations of the Philippine government. The PIU in coordination of the budget and finance office of the WD will process the necessary documents for payments and compensations stipulated in the RP. Land acquisition, compensation and relocation of affected households cannot commence until the RP has been reviewed and approved by ADB. The PMO will allow construction activities in specific sites after all resettlement activities have been satisfactorily completed for that specific site, agreed compensation, project assistance, rehabilitation assistance is in place, and the site is free of all encumbrances.

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RESETTLEMENT PLANS

• Metro La Union Water District • Quezon Metro Water District

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Resettlement Planning Document ______

Resettlement Plan Document Stage: Draft March 2010

PPTA 7122 - WDSSP: Water District Development Sector Project

Metro La Union Water District

Prepared by: Local Water and Utilities Administration (LWUA)

The Resettlement Plan is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

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CONTENTS

Executive Summary i

Definition of Terms v

Abbreviations vii

I. Introduction 1 A. Project Background 1 B. Scope of the Resettlement Plan 2

II. Legal Framework 2 A. Philippine Laws and Policies 2 B. ADB Policies 4 C. Gap Analysis and Reconciliation of Laws and Policies 5

III. Project Principles 6

IV. Scope of Resettlement Impact 7

V. Socio-Economic Information 10

VI. Project Entitlements 11

VII. Consultation, Grievance Redress, and Disclosure 13 A. Consultation and Participation 13 B. Grievance Redress 13 C. Disclosure of Resettlement Plan 14

VIII. Ethnicity and Vulnerability 14

IX. Institutional Arrangements 15

X. Monitoring and Evaluation 15

XI. Implementation Schedule 16

XII. Cost Estimates and Financial Plans 17 A. Cost Estimates 17 B. Funds Flow and Disbursement of Compensation 17

Tables 1 Laws and Statutes Governing Resettlement in the Philippines Applicable to WDDSP 2 2 Comparison and Reconciliation of Applicable Philippine Laws, ADB’s Policy and Project Policy 5 3 Key Findings of Socio-Economic an Inventory of Affected Assets Survey 10 4 Project Entitlement Matrix 12 5 Indicators for External Monitoring 16 6 Resettlement Plan Implementation Schedule 17 7 Resettlement Plan Financial Plan and Budget 18

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Figures 1 Schematic Design for the Proposed Water Supply Improvements – MLUWD 9

Annexes 1 Summary of Inventory of Losses Survey – MLUWD 19 2 Consultation Attendance 21 3 Project Disclosure 22

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EXECUTIVE SUMMARY

Introduction

1. The Local Water Utilities Administration (LWUA) has sought the assistance of the Asian Development Bank for a PPTA for the preparation of a sector development plan addressing these overarching concerns and issues on lack of and or enhancement of water sources and distribution outside Metro Manila. The project name is Water District Development Sector Project (WDDSP). The sector project objective was to improve the livability and competitiveness in urban areas outside Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The objective of the PPTA is to (i) formulate a sector investment project (WDDSP) in the urban 1water supply and sanitation sector1 with funding from ADB and other investment sources, and (ii) prepare implementation support and institutional development programs addressing sector reform, governance and public awareness.

2. Based on the financial planning budget of ADB, the scope of the initial phase of the sector project will cover a short-list of up to five pilot water districts (WD), and based on an evaluation of candidate water districts (WD) on criteria such as creditworthiness, interest to participate, and readiness, Metro La Union Water District (MLUWD) was selected as one of five pilot Water Districts to participate in the PPTA for the preparation of subproject appraisal reports (SPAR).

Resettlement Plan

3. Major components of the Resettlement Plan for Metro La Union Water District Project will be treated as a development project. They comprise the integrated sets of activities and interventions to be undertaken by different stakeholders in the community. It shall be anchored on a participatory and community-driven development approach and guided by the following principles, such as: (i) stakeholders participation; (ii) consensus-based planning; (iii) development based on affordability and willingness-to-pay by beneficiaries; (iv) transparent and documented planning; (iv) long-term sustainability; (v) adherence to the legal framework on resettlement in the Philippines; (vi) and compliance with ADB’s Policy on Involuntary Resettlement.

4. The Metro La Union Water District Subproject RP is founded on both the applicable resettlement laws in the Philippines and the involuntary resettlement policy of ADB. Based on these policies, compensation and entitlements shall be provided to APs. The following important elements are highlighted in this RP as the following: (i) Legal Framework, Entitlements and Beneficiary Eligibility; (ii) Institutional arrangements; (iii) Consultation and participation. Project stakeholders are informed and consulted in every stage of RP implementation, which include women, community beneficiaries as well as the institutions involved in the project; (iv) Socio economic information and profile of the AP; (v) Grievance and Redress Procedures for resolution of conflicts arising from compensation and entitlement. (vi) Financing Plan and Funds Flow Arrangement; (vii) implementation schedules with indicative time for project activities including disbursement and compensation; (vii) Monitoring and Evaluation; (viii) Update of the RP will be needed to accommodate changes in design and to ensure that they do not have adverse impact to the APs; (ix) Project disclosure to promote transparency so that all people benefiting from or affected by the subproject are fully aware of their rights and entitlements, informed decision making, and the development of trust between the implementing agency and the affected person.

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Resettlement Impacts

5. Based on the preliminary design prepared for MLUWD subproject, an estimated 7 business shops with attached residential units will stand to loose temporary income during construction period. Additionally, there are other structures and improvements such as driveways and pavements, fences and other structures with average size between 150 to 500 square meters, 4 waiting shed, 3 police community outputs and trees mostly gemelina and acasia planted along the proposed waterlines. These assets were surveyed based on the preliminary and schematic design prepared for MLUWD.

6. Results from design changes which will have resettlement elements will follow the policies for entitlement and compensation guidelines contained in this RP. Notwithstanding these concerns, this preliminary assessment indicates that the resettlement impact of MLUWD is not likely to be significant.

Consultations and Disclosure

7. Consistent with provisions of ADB’ Public Communication Policy- Disclosure and Exchange of Information (2005), consultation and disclosure processes were undertaken in the Subproject. Consultations with the AP were carried out during the preparation of this RP and will continue throughout the various stage of the Project. LWUA and the Water District shall make available to affected people and households: (i) Before appraisal – draft RP; (ii) after completion of the final RP; (iii) after revisions to the RP as a result of detailed technical design or change in scope of the Project – the revised RP. Prior the ADB Management Review meeting, the management of the MLUWD will ensure that the following disclosure is met: Distribution of the PIB in English and explained local language understood by the APs was conducted. The water district offices were requested to post said PIB in designated public information spaces in the water district offices. Upload the RP in LWUA website and to the ADB resettlement website upon approval by the ADB of this RP.

Implementation Arrangements

8. The overall responsibility for enforcing the WDSSP Resettlement Policy, including this RP prepared for MLUWD rests with the LWUA and the Water District. LWUA - PMO and MLUWD -PIU will ensure that sustained efforts will be in placed in order to enhance AP and client relationships and to promptly address issues or conflicts arising from non-compliance of project benefits and compensation. The PIU will also ensure that APs are afforded with opportunities for active and effective participation in the preparation and implementation of the Resettlement Plan. A grievance and redress process will be established in MLUWD and will constitute a Water District Resettlement Committee. (WRDCC) composed of WD-PIU head as chair, concerned NGOs and the barangay officials and households headed by women as members.

Implementation Schedule

9. The Subproject is expected to commence by the last quarter of 2011. Construction may start in quarter 3 of 2012. It is expected that the project starts with personnel and staff of LWUA and the Water District with the implementation consultants hired for the subprojects implementation are all in placed.

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RP Budget and Flow of Funds

10. The Resettlement Plan will include detailed cost estimates for all preparatory resettlement activities, including cost of project assistance and compensation. The Resettlement Plan for MLUWD Subproject will require a total budget of Php 2,768,150.00. A ten percent (10%) contingency will be added to each of the items to accommodate increases in prices of goods and services. Funds disbursement procedures to the APs will follow the new accounting rules and regulations of the Philippine government. The Project implementation unit in coordination of the budget and finance office of the water district will process the necessary documents for the payments and compensations and project assistance stipulated in the RP. APs will sign the compensation or project assistance forms and acknowledgement of payment and will agree to clear the area within the specified time in order that construction work can start. A copy of the signed compensation form will be retained by the APs.

Updating of RP

11. All RP prepared during the SPAR preparation shall be updated after the detailed design and engineering is completed. This action is needed as there may have significant changes that would occur during subproject implementation. Any modifications to the RP will only be limited to inclusions of new entitlement, changes in the mode of compensation for the APs and other mode of payment but in no case should be a reduction or replacement of entitlement or its equivalent monetary value. The LWUA will inform and consult ADB for clearance on any modifications of the RP. The revisions will form part of the loan agreement.

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Metro La Union Water District Location Map

Metro La Union Water District (MLUWD)

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Definition of Terms

Affected People (APs) includes any person or entity or organization affected by the Project, who, on account of the involuntary acquisition of assets in support of the implementation of the Project, would have their (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house and buildings, pavements and other physical improvements, land (including residential, commercial, agricultural, plantations, forest and grazing land) water resources, annual or perennial crops and trees, or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily; and (iii) business, profession, work or source of income and livelihood lost partly or totally, permanently or temporarily.

Compensation – payment in cash or in-kind at replacement cost for an asset affected or to be acquired by the Project.

Eligibility cut-off date is the date that a population record or census, preferably at the project identification stage, serves as an eligibility cut-off date in order to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The cut-off date will be the date when the census for the RP is completed.

Entitlement refers to range of measures comprising compensation in cash and/or in kind payment for loss of land and non-land assets, including assistance for income restoration and relocation and special support to poor and vulnerable households.

Land Acquisition is the process whereby a person is compelled by the Government through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the government in the implementation of the Project or any of its components in return for consideration.

Relocation is the physical shifting of an AP from his/her pre-project place of residence and/or business to another place.

Replacement Cost is the amount in cash or in-kind needed to replace an asset and is the value determined as compensation for: a. Agricultural land based on market prices that reflect recent land sales prior to the commencement of the Project or displacement, and in the absence of such recent sales, based on assed and prevailing market value; b. Residential land based on market prices that reflect recent land sales prior to the commencement of the Project or displacement, and in the absence of such recent land sales, based on similar location attributes; c. Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials; d. Crops based on current market value; e. Trees and other perennials based on current market value; and f. Other assets (i.e., income, community facilities) based on replacement cost or the cost of mitigating measures.

Rehabilitation means assistance provided to severely affected APs due to the loss of 10% or more of productive assets (i.e., farmland, crops and trees, vegetable garden, etc.), incomes, and employment or when sources of living such as shops and place of employment have to be reconstructed completely and/or relocated. The livelihood support may be given in cash or in kind or a combination of the two in order to improve, or at least achieve full restoration of living standards to pre-project levels.

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Resettlement refers to all measures taken by the Project proponents to mitigate any and all adverse social impacts of the Project on the APs, including compensation for lost assets and incomes, and the provision of other entitlements, income restoration assistance, and relocation as needed. Resettlement is significant where 200 or more people experience major impacts. Major impacts are defined as involving affected people being: (i) physically displaced from housing/dwelling units and/or (ii) having 10% or more of their productive, income generating assets lost; and/or (iii) lose more than 40% of their residential structure. Affected people experiencing major impacts are referred to as ‘severely affected APs’.

Structures and structural losses refer to losses to constructed assets, residential houses, pavements, driveways, institutional structures, utility structures, business structures with residence attached to it and other income producing spaces.

Severely Affected Persons are those who experience significant /major impacts due to (i) loss of 10% or more of their productive, income-generating assets and /or (ii) being physically displaced from housing, place of residence and sources of income.

Vulnerable Groups are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) households headed by women, the elderly or disabled, (ii) households living below the poverty threshold, (iii) the landless, and (iv) indigenous people and ethnic minorities

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ABBREVIATIONS

ADB Asian Development Bank AP affected person(s) DA Department of Agriculture DMS detailed measurement survey EA Executing Agency EMA External Monitoring Agency HH Household IA Implementing Agency IOL Inventory of losses IP Indigenous Peoples Plan GAD Gender and Development GAP Gender Action Plan LWUA Local Water and Utilities Administration LGU Local Government Unit PIB public information booklet PIU Project Implementation Unit PMU Project Management Unit RF Resettlement Framework RP Resettlement Plan ROW right-of-way MLUWD Metro La Union Water District SES Socio economic Survey SPAR Subproject Appraisal Report WD Water District WDRC Water District Resettlement Committee

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I. INTRODUCTION

A. Project Background

1. ADB fielded a Fact-Finding Mission during 25 March – 9 April 2008 and formulated the PPTA in line with the poverty reduction policies of the Government and ADB, and the Millennium Development Goals (MDG),7 and reached a preliminary understanding with the Government on the goals, purpose, and implementation and financing arrangements, cost and terms of reference (TOR) of the PPTA. ADB assisted LWUA for the PPTA to prepare a sector development plan addressing these overarching concerns and issues. The project name is Water District Development Sector Project (WDDSP).

2. The sector project objective was to improve the livability and competitiveness in urban areas outside Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The objective of the PPTA is to (i) formulate a sector investment project (WDDSP) in the urban water supply and sanitation sector8 with funding from ADB and other investment sources, and (ii) prepare implementation support and institutional development programs addressing sector reform, governance and public awareness.

3. Based on the financial planning budget of ADB, the scope of the initial phase of the sector project will cover a short-list of up to five pilot water districts (WD), and based on an evaluation of candidate water districts (WD) on criteria such as creditworthiness, interest to participate, and readiness, Metro La Union Water District (MLUWD) was selected as one of five pilot WDs to participate in the PPTA for the preparation of subproject appraisal reports (SPAR).

4. Proposed subproject development plan for MLUWD aims to improve the water supply system of MLUWD in to meet the projected water demand for the design year 2025, both in the existing and proposed service areas. The program includes the development of new source facilities with the required pump sets, provision of new treatment facilities, installation of new transmission and distribution pipelines and construction of new distribution reservoirs.

5. The recommended plan involves two (2) construction phases: (i) the proposed Phase I will meet the projected water demand for Year 2020, and is scheduled to be completed in 2014, (ii) while Phase II should be implemented before the Year 2020 to the meet the demand of the design year 2025. Phase I development program: The Phase 1 development program is estimated to cost PhP312.5 million ($6.51 million) to include engineering and contingencies. The program will include the construction of eight (8) wells with pumpsets; treatment facilities for each of the new sources plus for the Lon-oy source; 59 km of pipelines; construction of four (4) new reservoirs, plus commissioning of the San Juan reservoir; and NRW measures. The developments are planned for implementation during 2012-2014.

6. An additional PhP13.8 million ($0.29 million) will be needed for 9,200 connections (implementation from 2010– 2019), but these can be funded from consumer connection fees.

7. Phase II development program: The Phase II development program is estimated to cost PhP84.27 million ($1.76 million) and will include the construction of three (3) wells with

7 Particularly Goal 7 – Ensure environmental sustainability; and Target 10 – Halve, by 2015, the portion of people without sustainable access to safe drinking water and basic sanitation. 8 Defined as encompassing human waste (‘black’ water) and wastewater (household ‘grey’ water, industrial effluents, etc).

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pumpsets; treatment facilities for each of the new sources, plus the for Lon-oy source; 59 km of pipelines; construction of two (2) new reservoirs; and 5,370 connections. The developments are planned for implementation during 2019-2020.

B. Scope of the Resettlement Plan

8. This Resettlement Plan (RP) presents the general guidelines and procedures in addressing involuntary resettlement issues for MLUWD as one of the Subproject under WDSSP. A key element of ADB’s resettlement policy is to avoid wherever possible the need for involuntary resettlement. During the subproject appraisal activities, the Project Preparatory Technical Assistance (PPTA) Team conducted a series of discussions with officials and personnel of MLUWD water district to reduce potential adverse impact of the project to the community. Other activities included the conduct of socio-economic surveys, inventory of losses, information dissemination, discussions and key informant interviews with community leaders, land owners and persons that may possibly be affected by the specific requirements of the project.

9. Major components of the Resettlement Plan for MLUWD will be treated as a development project. They comprise the integrated sets of activities and interventions to be undertaken by different stakeholders in the community. It is anchored on a participatory and community-driven development approach and guided by the following principles, such as: (i) stakeholders participation; (ii) consensus-based planning; (iii) development based on affordability and willingness-to-pay by beneficiaries; (iv) transparent and documented planning; (iv) long-term sustainability; (v) adherence to the legal framework on resettlement in the Philippines; (vi) compliance with ADB’s Policy on Involuntary Resettlement; and (vii) responding to the need to address gender issues. MLUWD Subproject is founded on both applicable resettlement laws in the Philippines and the involuntary resettlement policy of ADB.

II. LEGAL FRAMEWORK

A. Philippine Laws and Policies

10. The Philippine Constitution states that the protection of property is State Policy and is essential for Filipino to enjoy the benefits of democracy. Private property is the right of every citizen. The Constitution also states that it prohibits depriving any person of his property without due process and no taking of property is allowed by law with no just compensation. Existing legislations and guidelines that address various aspects of land acquisition and resettlement include among others Executive Order 1035, RA 6657, RA 7160, RA 7279, RA 8435, and RA 8974. Table 1 describes the laws and statutes applicable to aspects of resettlement.

Table 1: Laws and Statutes Governing Resettlement in the Philippines Applicable to WDDSP

Aspects of Laws and/or Statutes Description Resettlement Community R.A. No. 7160 (Local Provide prior consultation with affected communities on any Participation and Government Code), Sections project and require the approval of the concerned Consultation 2 (c) and 27. Sangguniang Panglunsod (municipal council)

R.A. No. 7279 (UDHA Law), The provisions of this law also require consultations with Article I, Sec. 2; Article V, affected persons and communities.

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Aspects of Laws and/or Statutes Description Resettlement Sec. 23; Article VII, Sec. 28 (2) and IRR of UDHA, Sec. 3 The results of consultations will form part of the approval of (e.1) the resettlement plans by the LGU’s Sangguniang Panglunsod (SP); Sanguniang Bayan (SB)

RA No. 8435 (Agriculture Consultation and participation of farmers, fisher folks and and Fisheries Modernization agrarian reform communities (ARCs) and other Act of 1997) stakeholders on the components of the project to them.

Land Acquisition R.A. No. 7160 (Local Provision for the LGUs or sub-national administrative Government Code), Section entities in the exercise of the power of eminent domain but 19. it can only be applied for "public use or purpose or for the benefit of the poor and the landless" and property owners will be paid with just compensation.

EO 1035 Facilitating the Acquisition of Right-of-Way, Site or Location of National Government Infrastructure Projects and for R.A. No. 8974 (Guidelines Other Purposes. for Government Acquisition of Right of Way or Site Location)

R.A. No. 7279 (Urban Provision for the development, award and disposal of land Development and Housing under usufruct arrangement for purpose and use of Act of 1992) socialized housing and urban services.

Comprehensive Agrarian RA 6657 Section 28 states that landowner shall retain his Reform Law Republic Act share of any standing crop un-harvested at the time the 6657 (1988) DAR shall take possession of the land under Section 16 of this Act, and shall be given a reasonable time to harvest

Republic Act 6389 RA 6389 states that “in the event of change in land use from agriculture to other uses, agricultural lessees are entitled to disturbance compensation equivalent to five times the average of the gross harvests on his landholding during the last five preceding calendar years."

Compensation R.A. No. 8974, Sections 8, 9, Provide for the compensation of affected properties based 10 and 13. on current market prices.

Poor R.A. No. 7279 (UDHA Law), For urban poor, provision for basic services and livelihood Article V, Sections 21 and component under socialized housing and urban services. 22. For rural poor, they are not to be evicted nor are their Implementing Rules and dwellings demolished except in accordance with the law in Regulations of UDHA, a just and humane manner (Constitution). Assistance is Section 3, III (b.3.0) limited only to payment at replacement cost for structures and improvements. Additional assistance may be provided on a case by case basis.

Monitoring Executive Order No. 152 Prescribes for the broad monitoring of all types of eviction ( Series of 2002) and demolitions involving the underprivileged and homeless citizens by the Presidential Commission for the Urban Poor (PCUP). All national government agencies and local government units should apply for Certificate of Compliance prior to the implementation of eviction and demolition.

Disclosure Constitution It states "full public disclosure by the State of all its transactions involving the public interest “ and "the Citizens RA 7279 have the right of access to information on matters of public concern.” Requires that all households affected are informed of any proposed development plan.

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B. ADB Policies

11. The aim of ADB Policy on Involuntary Resettlement is to avoid or minimize the impacts on people, households, businesses and others affected by the acquisition of land and other assets, including livelihood and income. Where resettlement is not avoidable, the overall goal of the ADB policy is to help restore the living standards of the affected people to at least their pre-Project levels by compensating for lost assets at replacement costs and by providing, as necessary, various forms of support.

12. The main objectives and principles of the ADB Policy on Involuntary Resettlement are as follows: a. Involuntary resettlement should be avoided where feasible. b. Where population displacement is unavoidable, it should be minimized by exploring all viable project options. c. All compensation is based on the principle of replacement cost. d. Each involuntary resettlement is conceived and executed as part of a development project or program e. Affected people should be fully informed and consulted on compensation and/or resettlement options. f. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. g. The absence of a formal legal title to land is not a bar to ADB policy entitlements. h. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers of others who wish to take advance of such benefits. i. Particular attention must be paid to the needs of the poorest affected households and other vulnerable groups that may be at high risk of impoverishment. This may include affected households without legal title to land or other assets, households headed by women, the elderly or disabled, and ethnic minority socio-economic status. j. The full costs of resettlement and compensation should be included in the presentation of project costs and benefits. k. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and ensure compliance with involuntary resettlement procedures during implementation.

13. ADB’s Policy on Indigenous Peoples defines “indigenous peoples” as “those with a social or cultural identity distinct from the dominant or mainstream society.” "Indigenous peoples" is a generic concept that includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals. The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them.

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14. The policy on indigenous peoples is “designed to promote the participation of indigenous peoples in project preparation and implementation, to ensure that they benefit from development interventions that would affect them, and to provide effective safeguards against any adverse impacts”. In any ADB interventions, the approaches to be used are as follows: (i) to achieve the greatest possible reduction of poverty among the affected indigenous peoples; (ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts; (iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and (iv) the mechanisms for any intervention must be transparent and should ensure accountability.

15. ADB’s Policy on Gender and Development adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005) and OM Section L3/BP (September 2005), and (ii) Accountability Mechanism (OM Section L1/BP, dated 29 October 2003)

C. Gap Analysis and Reconciliation of Laws and Policies

16. In the design of compensation and entitlements of affected persons or households, consideration was given to the resettlement policies of the Philippine Government and that of ADB. The policies are shown in Table 2 citing comparison, applicability and reconciliation in order to address the gaps in this Project.

Table 2: Comparison and Reconciliation of Applicable Philippine Laws, ADB’s Policy and Project Policy Philippine Laws/ Key Issues ADB Policy Project Policy Policies 1. Non-titled land users, Philippine Constitution, Non- titled APs are not Non- titled APs are not caretakers/ tenants of Article XIII, Section 10: entitled to compensation of entitled to compensation land, sub-leased space Urban or rural poor land but APs including of land but APs including not covered by contracts dwellers shall not be renters, informal settlers/ renters, informal settlers/ between and among evicted nor their dwellings squatters are entitled to squatters are entitled to the owners of land, and demolished, except in payment for non-land assets payment for non-land informal settlers of accordance with the law and assistance to restore assets and assistance to private government and in a just humane their pre-project living restore their pre-project property, including manner. conditions. living conditions. community facilities Focus is given on urban If they are poor and If they are poor and poor as per UDHA. vulnerable, appropriate vulnerable, appropriate Limited assistance or assistance must be provided assistance must be protection is given to the to help them improve their provided to help them rural poor unless they are socio-economic status. improve their socio- tenured agricultural economic status. underclass. If government The law is not very clear infrastructure is affected, on assistance to small owners are consulted and enterprises, renters compensation and replacement will be provided.

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Philippine Laws/ Key Issues ADB Policy Project Policy Policies Project assistance shall be provided for APs housing structures with attached small enterprise 2. Compensation of R.A. No. 8974, Sections All compensation is based All compensation will be land, commercial 8, 9, 10 and 13 provides on the principle of based on the principle of structures, residential compensation of affected replacement cost. replacement cost. and income generating properties based on fair spaces with attached market value. with mixed- uses, crops and trees. Executive Order 1035 (1985) provides for the procedures and guidelines for the expeditious acquisition of properties and rights by the Philippine Government for infrastructure and other government projects. 3. Provision of Income restoration/ All eligible APs including Rehabilitation assistance rehabilitation assistance rehabilitation assistance tenants, employees of will be provided to those to displaced households is available only to affected businesses who who lose 10% or more of resettled and stand to lose their jobs, their income generating beneficiaries of socialized incomes or livelihoods assets and or physically housing. because of project impacts displaced. Vulnerable groups are entitled to receive one- The Philippines has law time financial assistance to Strategies to create new protecting women, elderly cover losses of the move, as opportunities to improve and children, persons well as economic and social income status of the poor with disabilities, and rehabilitation. and vulnerable people to indigenous peoples. Measures to include the avoid their further However, the issue is on status of the poor and impoverishment. proper implementation vulnerable should focus on and attention given to strategies to avoid future The project will provide these groups based on impoverishment and create additional assistance on a resettlement impacts. new opportunities. case to case basis depending on the type of vulnerability identified in the subproject. This assistance will be included in the subproject for each WD - RP.

III. PROJECT PRINCIPLES

17. The MLUWD resettlement plan and entitlements have been built upon the laws of the Government of Philippines, principally the Philippine Constitution that provides basic principles of water resources development and management, which stipulate that all waters of the Philippines belong to the state and applicable laws and regulations covering land acquisition, resettlement and compensation of land and structures, and the ADB’s Social Safeguards Policy on Involuntary Resettlement (2009). Whenever a gap exists, the ADB policy on involuntary resettlement will prevail. Basic project principles of MLUWD- WDDSP are as follows: (i) The acquisition of land and other assets and the relocation of affected persons (APs) will be minimized as much as possible by exploring all viable options.

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(ii) Rehabilitation assistance will be provided to severely affected people and other vulnerable groups to assist them to improve or at least restore their pre-project living standards, incomes and productive capacity. (iii) Particular attention will be paid to the needs of the poorest people and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, landless households, households headed by females, the elderly or disabled and other vulnerable groups. Appropriate assistance must be provided to help them improve their socio-economic status. (iv) Lack of legal title to affected assets will not bar APs from entitlement to compensation and assistance. (v) In the case of the relocation of APs, replacement houses and/or agricultural land will be located as close as possible to the assets that were lost, and at locations acceptable to APs. (vi) Efforts shall be made to maintain, to the extent possible, the existing social and cultural institutions of the resettled people and host communities. (vii) APs will be fully informed and closely consulted and will participate in the preparation and implementation of RPs for each sub-project. The comments and suggestions of affected people and communities will be taken into account during the design and implementation phases of resettlement activities. (viii) Adequate resources will be identified and committed during resettlement planning for each sub-project and the overall Project. This includes adequate budgetary support fully committed for each sub-project and made available to cover the costs of land acquisition, compensation, resettlement and rehabilitation within the agreed implementation period for the sub-project; and, adequate human resources for supervision, liaison and monitoring of land acquisition, resettlement and rehabilitation activities. (ix) Appropriate reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. Monitoring and evaluation of the land acquisition, resettlement and rehabilitation processes and the final outcomes will be conducted by an independent monitoring agency. (x) Key information in the RP will be translated into Filipino or, where necessary, the local language and placed in the Water District offices for the reference of APs as well as other interested groups. (xi) ADB shall not approve of any award of civil works contract for any sub-project to be financed from the loan proceeds unless the Resettlement Plan following detailed design and based on detailed measurement survey (DMS) has been submitted to and approved by ADB. .

IV. SCOPE OF RESETTLEMENT IMPACT

18. The resettlement impacts will not be significant for this subproject. Among the 102 surveyed respondents in La Union, there were 7 project-affected households cum business attached to the structures. The PPTA consultant with the assistance from the MLUWD conducted another site survey and has identified business establishments, public facilities, and trees in San Fernando City, Bauang, Bacnotan, and San Juan, which will be affected by the proposed water service expansion subproject. In San Fernando City, the affected structures include seven (7) micro- business establishment, four (4) waiting sheds, and 17 trees along the road. The total estimated value of the affected commercial stalls in San Fernando and the cost of the public facilities and trees are estimated at current market value

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and assessed value by the local assessor’s office and the city agriculture office for trees and crops have been determined. In Bauang, the affected structures include two (2) police outposts and three (3) trees and one lot shrubs, which are valued based on current market price and assessment by the municipal agriculturist. In Bacnotan, ten (10) trees, and in San Juan, 32 Gemelina trees are to be cut down for the subproject. Breaking and cutting of pavements, fences and other structures is estimated between 150-500 square meters per affected area and with a total of approximately 7,000 square meters covering the entire length of the proposed subproject. Details of the resettlement cost are indicated in the succeeding discussions of this RP.

19. The subproject infrastructure will incur temporary impact due the construction of water transmission pipes from the water source to the distribution lines and reservoir. The identified lots and propertied to be traversed by the transmission pipes of the subproject are classified most as public ownership with few private properties which will be temporarily affected during construction period. The owners of these properties will receive compensation and or project assistance due them for the temporary impact. Additionally, these properties will not have significant impact for the owners considering that these properties are not the main source of livelihood among the land owners. The affected private lands or lots with improvements such as fence and driveways will be affected but restoration after pipes are laid down will be undertaken.

20. No vulnerable or indigenous peoples were identified in these properties. Most of the impacts are trees along the pipeline area. Figure 1 below is the schematic design for the proposed water supply improvements for the subproject indicating assets that may be affected during construction of the subproject.

21. Methodology. Socio-economic survey, preliminary inventory of assets and possible losses (IOL) were conducted in October 2009. The inventory of losses for 102 identified households was conducted with the cooperation of the LMWD staff and PPTA consultants in coordination with the Metro La Union Water District engineering staff. Identified affected structures were based on the preliminary engineering designs prepared for the sub-project. Attached in Annex 1 is the result of inventory of assets of affected households, structures and public facilities. Cost estimates indicated in the survey are based on local cost of construction and replacement for affected structures.

22. Impacts on Affected Land /Structure Owners. Based on the IOL, there are 7 structures with multiple uses such as business and residential purposes. Property owners will be temporarily affected by the subproject. The IOL survey conducted showed that the water pipes will cut across these properties. Diggings and restoration upon lying of water pipes will be undertaken. Other assets affected are few trees mostly gemelina and acacia that will be either cut or replaced due to the expansion of subproject. Lot sizes that will be affected due to pavement breaking are approximately between 150 to 500 square meters for the driveways and fence other paved areas. Cost estimates for restoration approximates to more than 7, 000 sq. meters. Compensation will be based on the current construction and replacement cost in the city of La Union. . An assessment of material replacement will be made, based on the condition of materials, with valuations calculated based on standard replacement and restoration costs.

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Figure 1: Schematic Design for the Proposed Water Supply Improvements - MLUWD

7 residential with business attached 10 acacia and other trees of structures, 4 waiting sheds and 17 various species of trees will various species of trees will be be affected in Bacnotan affected in San Fernando City Municipality

3 trees and one lot of shrubs and 2 police outposts in Municipality of Bauang

An estimated 7,000 square meters of pavements, fences and 32 Gemelina trees will be affected in San other structures along the entire length of the subproject at an Juan Municipality average size at an average size of 150-500 sqm per area that will have temporary impact during construction.

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V. SOCIO-ECONOMIC INFORMATION

23. The Metro La Union Water District franchise area encompassed 203 barangays in 4 municipalities and 1 city of the province of La Union. As of 2007, the population of the franchise area was 272,148 with 49,016 households. This was 37% of the provincial population of 720,972. There were 8,029 service connections combined for households, government and commercial establishments as of 2008. A total of 102 household respondents were included in the household and inventory survey for the proposed water service expansion and improvement of the Metro La Union Water District. The respondents were distributed in four areas in La Union, namely, Bacnotan (39%) , 27% from San Juan, 25% from Bauang, and 10% from San Gabriel. There were no severely identified affected families during the household survey. By location, 100% of the respondents are residing in the rural areas at the four target service municipalities. The household survey was conducted in October 2009, with the assistance and supervision by the staff of the MLUWD and PPTA Consultants.

Table 3: Key Findings of Socio-Economic an Inventory of Affected Assets Survey Parameter Survey Results Population Majority or 83% of the households have total monthly incomes from less than P1, 000 to Characteristics P15, 000, among which, a greater number receives within the range of P5, 000 to P10, 000. About 83% of the surveyed respondents are considered living below the poverty line, based from the poverty threshold set for the Province of La Union, which is P14, 452 a month9. Needs and Deep wells are the main source of water for 94% of the total surveyed households in Demands Bacnotan, Bauang, San Gabriel, and San Juan. The remaining 6% have individual water connections, particularly in the areas of Bauang and San Juan.

There is a very low demand for piped water service. Only 3% of the total respondents, indicated their willingness to avail of a new water service, and they are from the areas of Bacnotan, San Gabriel, San Juan, with one respondent each. The reasons for availing a water connection are mostly due to convenience and reliability of water supply.

Affordability and Most of the households with individual water connections are paying P201 to P300 a month Willingness to Pay for the water bill. There was no indication of how much is being paid for water from non- pipe sources

Hygiene and The key consideration of most of the households for availing of an improved water service Sanitation was the convenience of a continuous water supply, and the reliability of the water source.

Gender Roles, All of the household tasks and decision-making activities are generally shared by the Issues husbands and wives.

The decision-making activities for the water connection, house renovation, type of economic activity to venture in, and building of sanitation facilities, as well as the tasks on cleaning the toilet, water containers, waste disposal, drainage/sewerage systems, in even child rearing, are shared by both men and women household heads.

Indigenous Majority of the respondents, or 93%, are Ilocanos, and a small percentage of households is Peoples comprised of 5% Bago, 1% Bisaya, and 1% Igorot. No indigenous peoples were identified in the project Poverty and About 25% of the respondents, or 25 households, are headed by an elderly, with typical Vulnerable Groups sources of income coming from pensions (8%), farming activities (6%), remittances (4%), financial support from children or relatives (3%), and business (1%).

Three families responded having household members with physical disabilities, while two other households indicated having mentally-challenged family members. There were no incidences of discrimination by virtue of ethnicity, gender, religion, or disability, were noted by the respondents.

9 National Statistical Coordination Board. http://www.nscb.gov.ph/poverty/2004/pov_th.asp

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24. Most of the surveyed households, or 54% of the total, has a relatively large family size with four to six members. The largest number of household size was recorded at 14 family members. About 62% of the respondent households have dependent family members under the age of 14 years, and 35% of the respondents also have one to two elderly household members.

25. Male-headed households account for 79% of the respondents, and 21% are female- headed households. Both male and female household heads have generally attained secondary education or high school level (34%), followed by 27% attaining primary or elementary education, 27% with tertiary or college education, and 12% with vocational education.

26. The households still largely depend on farming and fishing as the main source of income, with 37% of the household heads engaging in these types of occupation. Other forms of occupation or sources of livelihood of the respondent families include small businesses (15%), as government employees (12%), as contractual laborers or skilled workers (8%), as employees of a private company (6%), and as pensioners or retired employees (6%). There is still about 4% of the household heads who are unemployed. Among the unemployed household heads, three (3) are male, and one (1) is a female family head.

27. The initial results of the survey showed that there are no permanent private residential or commercial properties will be affected by the subproject. However, in the event that there will be affected properties, two (2) households in Bacnotan indicated their willingness for a voluntary resettlement. Likewise public facilities such police posts and waiting sheds can be restored at a better location.

VI. THE PROJECT ENTITLEMENTS

28. The executing agencies, the LWUA and WD as the borrowers for the infrastructure investment covered under the WDDSP, will ensure that the RP activities of MLUWD subproject submitted for funding are conducted in accordance with ADB policy on Involuntary Resettlement and Philippine Government’s applicable laws and regulations.

• Cut-off Date. All APs who are identified in the subprojects sites on the cut-off date will be entitled to compensation for their affected assets and rehabilitation measures adequate to assist APs to improve or at least maintain their pre-project living standards. The cut-off date will be the last day of the census and detailed measurement survey (DMS) in MLUWD. DMS will be conducted after the completion of detailed engineering plans. Those who enter in the subproject site after the cut-off date will not be entitled to compensation or any form of subproject assistance.

• Potential Impacts and Entitlements. Table 4 provides the types of losses and corresponding nature and scope of entitlements. However, this matrix may not cover all resettlement impacts and or losses specific and particular MLUWD subproject. The detailed measurement survey (DMS) will be the basis for the determining the final entitlements based on the actual impact and or losses, appropriate project assistance, relocation and, special assistance to poor and vulnerable groups during the preparation of the RP. A replacement cost survey will be carried out to determine the actual replacement costs and rates.

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Table 4: Project Entitlement Matrix Type of Loss/Impact Entitled Persons Entitlements Permanent land All APs listed in the Compensation based on the principle of replacement acquisition survey and has proof of cost which is a method of valuing assets to replace ownership/claim of their the loss at current market value, plus any transaction (Loss of agricultural, land. There are two costs such as administrative charges, taxes, residential, commercial identified land owners registration and titling costs. land) willing to sell land for water reservoir. Residential / AP owners who were Compensation for permanent houses and other institutional structures located at the site during structures affected either in full or in part, will be and commercial/income the cut- off date of the determined according to replacement value for generating spaces survey regardless of materials and labor to rebuild similar structures, at tenure and status (i.e., current market prices in the locality. In determining (Loss of owners, renters, sharers, replacement costs, depreciation of assets and residential/institutional/ caretakers) salvage value of materials will not be taken into commercial/income account. generating There are 7 owners of structures/spaces) business and residential In the determination of compensation for movable structures and other structures including houses, where the structures can public facilities be moved easily, transfer, relocation and repair allowances will be calculated. An assessment of material replacement will be made, based on the condition of materials, with valuations calculated based on standard replacement and restoration costs.

Permanent Impact to AP who stand to loose Payment for uprooted trees based on market value as Trees and Crops trees and crops assessed by the city agriculturist/assessor (Loss of trees and crops as well income derive from it ) Temporary impacts • APs with Cash or kind compensation for fixed and movable (during construction) improvements of their assets such as houses, pavements, fences structure and other community facilities, farm structures for animals and

physical assets farmers at replacement cost. (Temporary loss of structures and • APs planting crops, Restoration or replacement of a fixed asset I month improvements, productive ornamental plants and after construction of water transmission and assets, such as crops and vegetables on lots to distribution lines, sanitation facilities, reservoirs and trees, and income from be use as water other water facilities. business) sources such as wells Compensation for lost in full or part of residential and other surface structures, community facilities and productive assets water. such as crops and trees, and lost income from • APs with concrete business or wages. driveways and improvements on their properties that will be affected by the project.

• Donation. In the event that land owners will opt to convey and donate their affected land to the MLUWD for the project, there is a need to hold series of consultation with the affected landowners to document and confirm the donation being made particularly on the size of land and its description and obtain a written document of this action. Additionally, the LMWD will conduct a validation assessment on the impact of this donation to determine if the land will not severely affect the living standards of the owners and the donor do not belong to the poorest of the poor. This

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process will be witnessed by a third party such as an organization in the community. A grievance redress for the donor will also be available to ensure that no one is put worse off because of this land donation.

VII. CONSULTATION, GRIEVANCES REDRESS, AND DISCLOSURE

A. Consultation and Participation

29. During the project preparatory stage, participation and consultative process for the RP preparation was aimed at increasing opportunities for both men and women to take active roles and responsibilities, harness their capacities and resources in planning, implementation and monitoring in all stages of the RP process. Social preparation prior the survey was conducted such as key information interviews conducted with some officers of barangay leaders and property owners. Consultation and disclosure activities with land owners were conducted to inform them about the plan of the MLUWD to enhance water system and requested their participation in the WDDSP through their response and participation in the survey and inventory of assets/ properties for the project study. It was also discussed that there will be compensation on the temporary disturbance on the affected lands due to diggings and other project activities, however, these lots will be restored accordingly. Should there be permanent losses of structures and improvements and other assets the owners will be compensated at market value.

30. Consultation and Participation with Affected Owners during RP Preparation. On October 2009, the PPTA consultant, the MLUWD staff, conducted preliminary consultations with the some house/landowners who will incur temporary losses on land and structures that will be temporarily affected by the pipe lying under the LMWD water expansion program. Attached in Annex 2 is a record of attendance of said meeting. The results of the consultations showed very positive response from the land and house owners. They were about the project and also informed on their entitlements for the temporary disturbance for the owners of houses and structures along the pipe to be installed. The land for purchase for the reservoir has no productive crops and the owner of the land expressed willingness to sell portion of its property for the subproject. They also agreed with the LMWD’s proposal to prepare formal offer and compensation arrangement. The LMWD staff indicated in their report that acquiring land for the water expansion is not an issue because there has been an earlier expression by the water district to some of the land owners. Bulletin of Information for WDDSP is attached in Annex 3. The water district will continue to hold dialogue and consultation with the affected people after all the detailed engineering plans have completed in order to determine the actual affected houses and structures.

B. Grievances Redress Mechanism

31. The LWUA will create a Water District Resettlement Committee (WDRC) in LMWD to determine qualified APs, and safeguard their rights. The WDRC is composed of the WD-PIU head as chair, concerned NGOs and the barangay officials and households headed by women as members.

32. The decision of the court is for finality of case resolution. Below are the steps to be followed in filing grievances and the procedures for redress.

Step 1: The complainant provides the background and files the grievance/complaint verbally or in writing to WDRC If unwritten, the WDRC Secretary will put it in writing and

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will reproduce it in four (4) copies for distribution; the original copy to WDRC, two are for the WD-PIU, and one for file of the complainant. The complainant, WDRC, as well as representatives of PIU will meet to discuss the complaint and resolve it within 15 days.

Step 2: If no solution or understanding is reached, the complainant files the grievance/complaint to the WDRC central desk at the PMO for it to be resolved within 15 days after filing. The written complaint shall be reproduced in four (4) copies; the original to PMO/RC, two for WDPIU, and one for file of the complainant.

Step 3: Again, if no solution or understanding is reached and if the grievance/complaint qualifies for hearing at the Municipal, or Regional Trial Court, the household may request for assistance of the pro bono lawyer from the Public Attorney’s office, through the WDRC. The pro bono lawyer shall assist the household in reproducing the formal complaint in six (6) copies to be distributed as follows; the original to the appropriate court, one each for PMO, PIU, WDRC and for file of the complainant.

Step 4: the Municipal Trial Court (MTC) or Regional Trial Court (RTC) assesses the merit of grievance/complaint, schedules the hearing and renders a decision. Appeals can be elevated to the high court. The Supreme Court’s decision is final and executory.

C. Disclosure of Resettlement Plan

33. As per ADB’s Public Communications Policy10, and the social safeguards policy statement on involuntary resettlement, the resettlement planning documents will be disclosed to the APs as follows: (i) Before appraisal – the draft RPs; (ii) After completion of the final RPs – the final RPs; (iii) Following revisions to the RPs as a result of detailed technical design or change in scope of the Project – the revised RPs. The executing and the implementing agency – LWUA and the WD will disclose (i) draft RP prior to submission for review and approval by ADB; final RP approved by the LWUA, WD and ADB, and (iii) any revisions to the RP as a result of change in technical plans and design. The RP will also be uploaded to the implementing agencies’ and ADB website

34. Major information that will be included in the RP for disclosure to APs include: (i) compensation, entitlement, relocation and rehabilitation options, (ii) DMS results, (iii) entitlement and special provisions; (iv) grievance procedures; (v) schedule of payments/replacements of losses; ( vi) relocation and transfer schedule. All information will be made available to WD offices and public information bulletin will be provided to APs in Filipino or language that is easy to understand in the locality where the subproject is situated. Types of information materials include leaflets, brochure and RP prepared for the subproject.

VIII. ETHNICITY and VULNERABILITY

35. This RP acknowledges that specific social groups may be lesser able to restore their living conditions, livelihoods and income levels; and may be, at greater risk of impoverishment when their land and other assets are affected. For the subproject in MLUWD, there is no ethnic group or indigenous peoples observed at the subproject. No vulnerable group is also identified because all affected landowners will not lose more than 5% of their asset as effect of the project

10 This refers to The Public Communications Policy of the Asian Development Bank: Disclosure and Exchange of Information, March 2005.

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IX. INSTITUTIONAL ARRANGEMENTS

36. The overall responsibility of enforcing the LMWD Resettlement Policy, including this RP and its implementation rests with LWUA and the LMWD. A Project Management Unit (PIU) from LWUA as the EA will review and approve the RPs in accordance with the project design and principles. Additionally, the PMU will exercise the overall monitoring and evaluation of the RP updating and implementation for all MLUWD as the subproject and they will be assisted by WDDSP project implementation consultants.

37. At the MLUWD level, a Project Implementation Unit (PIU) will be established and will be responsible for the RP updating and implementation. A resettlement section within the PIU will be in placed and together work as a team to ensure that the project social safeguards policies contained in the RF/RP are adhered to. The PIU will be responsible of ensuring that sustained efforts will be made to enhance community relationships in the conduct of resettlement activities such as DMS, physical design development and technical verifications, disclosure, preparation and implementation of income restoration program, timely delivery of compensation and entitlement to all APs, act as grievance officers and prepare quarterly resettlement progress reports.

X. MONITORING AND EVALUATION

38. The Project Management Unit (PMU) will develop internal monitoring indicators, procedures and reporting requirements for all subprojects. Periodic reports will be submitted by the PIU to PMO and ADB. Internal monitoring and evaluation of the RP implementation will jointly be undertaken by the LWUA and the MLUWD. It addresses the degree to which the resettlement activities have achieved in harmony with civil works schedule; it allows the subproject proponent to assess its accomplishments and their desired outcomes. A quarterly monitoring report to the executing agency/borrower will be submitted at the start of RP implementation and other updating activities. The EA/borrower will in turn include updates on resettlement activities to its regular progress reports to ADB. Monitoring reports on resettlement and social impact will be available for the affected households and will be submitted to ADB for website posting.

39. The external monitoring and evaluation activities, which will be undertaken by an independent agency, will be conducted to verify the results of the internal monitoring activities and evaluate whether the objectives of the resettlement plan were met. Both qualitative and quantitative methods will be used in the process. This will give an independent assessment on the achievements of the resettlement objective, as well as the effectiveness and sustainability of entitlements, and the need for supplementary mitigating measures. The lessons learned in the RP implementation will be drawn from the monitoring and evaluation activities and will serve as guide for future policy formulation in resettlement planning. The independent monitoring group will also conduct semi-annual reviews for the entire duration of the resettlement implementation and during the end-of-project evaluation. Table 5 discusses relevant indicators for monitoring the project including the APs participation in the monitoring and evaluation process.

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Table 5: Indicators for External Monitoring Type of Indicators Indicators Information Required in Monitoring and Evaluation • Number of Water district staff assigned for Resettlement Plan Staffing implementation; • Number of Social Development and Resettlement Specialist assigned by PMO. • Number of consultations and participation programs held with APs and Consultation, various stakeholders; Participation, • Types of PIBs distributed to APs; and • Number and types of grievances received from APs and the number of Grievances days consumed in resolving them by concerned GRCs; Resolution • Number and names of representatives of community and APs who participated in the consultations and in RP implementation. • Reporting and feedback mechanism in placed. • Types of forms used in recording the activities undertaken in RP implementation; • Efficiency of coordination with PMO, PIU, APs and other institutions; Operational • Type of database being maintained; Procedures •

Process Indicators Efficiency of PIU and Water District staff; • Efficiency of compensation and disbursement payment system; • Adequacy of logistical support for implementing the RP; • Asses if the project policies in RP have adequately been complied with. Issues and • Indicate the issues and problems encountered in staffing, during Problems consultations and grievances resolution, and in the execution of Encountered operational procedures. • Indicate number of consultations conducted to resolve issues and problems pertinent compliance of the WD in the provisions of the RP.

• Household Indicate the actual number granted applications for water connection. ; • Water Indicate the amount of monthly payments that shall be paid by connection beneficiaries; • Indicate the frequency of information received by the APs as regard access to water connection. • Indicate number female headed households benefiting the water connection. • Indicate number of households

•

• Number of APs availed individuals’ water connection.

Output Indicators • Indicate if the type of payment either one time or installment; • Indicate if the APs who are engaged in micro business that were Compensation affected and were compensated for their temporary loss of business and incomes due to project construction. Entitlement • Indicate record of disbursements and acceptance of APs of their entitlement.

XI. IMPLEMENTATION SCHEDULE

40. The propose subproject in MLUWD will commence by the last quarter of 2011. Construction may start in quarter 3 of 2012. Table 6 presents the proposed implementation schedule for the resettlement activities of the subproject.

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – RP MLUWD 17 Supplementary Appendix V

Table 6: Resettlement Plan Implementation Schedule Activities Year 1 Year 2 Year 3 2011 2012 2013

Detailed Design Q 4 RP updating Q 4 Consultation , Social Preparation Q 4 Q 1 Validation of Affected Persons/Households Q 4 Q 1 Finalize project entitlements, budget Q 4 Q 1 Disclosure of key information on draft Updated RP Q 4 Q 1 Grievance and redress Q 4 Q 1 Q 2 Finalize Updated RP Q 4 Q 1 Review and Approval of Updated RP Q 4 Q 1 Q 2 • Adoption of RP by the BOR WD Q 2 • Review and concurrence of RP by ADB Q 2 Update RP Implementation Q1 Q2 Consultation and Disclosure Q1 Q2 Provision of project compensation Q1 Q2 Provision of project assistance Q1 Q2 Grievance Redress Q4 Q1 to Q4 Q1 to Q4 Monitoring Q4 Q1 to Q4 Q1 to Q4 • Internal (quarterly Q4 Q1 to Q4 Q1 to Q4 • External (semi- annual) Q2 to Q4 • Civil works Q2-4 Q1 to Q4

XII. COST ESTIMATES AND FINANCIAL PLAN

A. Cost Estimates

41. The Resettlement Plan for MLUWD Subproject will require a total budget of Php 2,768,150.00. Table 7 presents the proposed budget for the RP, with the details of cost items for funding by the MLUWD. A ten percent (10%) contingency will be added to each of the items to accommodate increases in prices of goods and services.

B. Funds Flow and Disbursement of Compensation

42. The LWUA- MLUWD as borrowers for this project will ensure the timely delivery of budget for implementation of resettlement activities. All compensation in cash or kind any form of payments will be prepared by the PIU and the finance office of the MLUWD. A compensation schedule chart approved by LWUA- MLUWD with disbursement will be undertaken before the project construction. Funds disbursement procedures to all affected households will follow the new accounting rules and regulations of the Philippine government. The PIU in coordination with the budget and finance office of the MLUWD will process the necessary documents for disbursements of project assistance stipulated in the RP. The affected persons will sign the compensation/replacement/and or project assistance forms as proofs of receiving the resettlement compensation and assistance.

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – RP MLUWD 18 Supplementary Appendix V

Table 7: Resettlement Plan Financial Plan and Budget Total (PhP) Category Cost Items Unit Cost Total 1. Resettlement social preparation prior RP • Information and implementation dissemination/meetings, focus group 1,500/AP 10,500 discussions a part of the social for 7 APs preparation activities for land owners and caretakers as APs and households affected by water pipe laying and water reservoir • Information regarding the updated RP including APs entitlement and project assistance. • Activities to Update RP 2. Compensation for land and house owners Cash payment to affected land structure that will have temporary losses on owners and caretakers with business 549,000 549,000 structures, pavements, fence and other and residential structures and trees. computed improvements waiting sheds, police Cost of compensation was computed at at an outposts current market rate based on average of construction cost and replacement of 5,000/sqm construction cost of the city assessor’s for 7 office and government bank appraisals owners 3. Cost of trees affected by pipe laying, Cost and type of tree estimates were 149,000 149,000 pump houses and reservoirs based on the estimates of the city engineer’s office and city agriculturist of La Union. 32 Gemelina Trees 2,187 each= 69,984 10 Acacia Trees – 2,350 each = 23,500 One lot of young tress and shrubs = 55,606

4. Cost of concrete breaking and restoration. Cash compensation for structure /land 7,340 sqm *1,468,000 owner’s assets computed at market at 200/sqm value of land as per city assessment. Along the main road where pipes will be installed. 1. Administrative Costs (Project • Salaries and Wages PhP20,000 240,000 Management ) • Operating Expense /month • Monitoring X12 months

External • Salaries and Wages 2 sets at 100,000 Monitoring and • Operating Expenses P50,00/ Evaluation • Survey (Monitoring and Post- set evaluation) Sub- total • 2,516,500.00 Contingency of 10% 251,650.00 2,768,150.00 Total in Pesos

Total in US Dollar* 61,514.44

Source: Local costs and consultants estimates *Php 45.00 to one USD

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – RP MLUWD 19 Supplementary Appendix V

ANNEX 1: SUMMARY OF INVENTORY OF LOSSES SURVEY – MLUWD

Description of Other Profile of Affected Household Income/Expenditure Affected Structures Affected Assets Res Number Estimated Estimated HH with Estimated Description Estimated Estimated pon of HH Estimated Value of Status of number of Area Name of HH Head Gender Disabilit monthly of Affected Lot size Value of dent Member Monthly Structures Occupancy affected y Expenditure Assets and price trees/crops No. s Income Affected crops and Bacnotan 1 Jesus Julaton M 8 n/a 18680 569718 n/a n/a n/a owner Bacnotan 2 Jervillo Nabaso Sr. M 8 n/a 11300 3017 n/a n/a n/a owner n/a n/a Bacnotan 3 Adriano Licudan Sr. M 6 n/a 13250 14036 n/a n/a n/a owner n/a n/a Bacnotan 4 Edgardo Viluan M 5 n/a 5000 2883 n/a n/a n/a owner n/a n/a Bacnotan 5 Edilberto Almodabar M 2 n/a 11200 9590 n/a n/a n/a sharer n/a n/a Bacnotan 6 Mabini Delgado M 8 n/a 8100 6950 n/a n/a n/a owner n/a n/a Bacnotan 7 Alejandro Delfin M 6 n/a 1649 11015 n/a n/a n/a owner n/a n/a Bacnotan 8 Juanito M. Dy M 7 n/a 5449 7894 n/a n/a n/a owner n/a n/a Bacnotan 9 Abelardo Bucasas M 4 n/a 5000 4307 n/a n/a n/a owner n/a n/a Bacnotan 10 Narciso Bucat M 6 n/a 10800 15949 n/a n/a n/a owner n/a n/a Bacnotan 11 Bernardo Marzo M 7 n/a 10900 7600 n/a n/a n/a owner n/a n/a Bacnotan 12 Danilo Agbunag M 4 n/a 10000 9172 n/a n/a n/a sharer n/a n/a Bacnotan 13 Lolita Bucasas F 3 n/a 5770 1070 n/a n/a n/a owner n/a n/a Bacnotan 14 Jose Almojera M 5 n/a 1000 3007 n/a n/a n/a owner n/a n/a Bacnotan 15 Jessie Delmiendo M 3 n/a 7000 2382 n/a n/a n/a owner n/a n/a Bacnotan 16 Seferino Licayan M 5 n/a 500 998 n/a n/a n/a owner n/a n/a Bacnotan 17 Silverio Licos M 3 n/a 1000 2271 n/a n/a n/a owner n/a n/a Bacnotan 18 Raul Viluan M 4 n/a 6000 4568 n/a n/a n/a owner n/a n/a Bacnotan 19 Rochelle Posadas F 7 n/a 3370 8923 n/a n/a n/a owner n/a n/a Bacnotan 20 Ador Gatchalian M 6 n/a 19870 11567 n/a n/a n/a owner n/a n/a Bacnotan 21 Bobby Rinonos M 9 n/a 6000 4216 n/a n/a n/a owner n/a n/a Bacnotan 22 Abelardo Sanchez M 7 n/a 4400 4325 n/a n/a n/a owner n/a n/a Bacnotan 23 Temesio Mengarecal M 6 n/a 3500 20880 n/a n/a n/a owner n/a n/a Bacnotan 24 Jesus Cardines M 3 n/a 3500 4142 n/a n/a n/a owner n/a n/a Bacnotan 25 Bucsit F 3 n/a 4500 3600 n/a n/a n/a sharer n/a n/a Bacnotan 26 Candida Arellano F 3 n/a 2500 1002 n/a n/a n/a owner n/a n/a Bacnotan 27 Elpedio Delmando M 4 n/a 23500 7325 n/a n/a n/a owner Bacnotan 28 Alejando Buccat M 5 n/a 10000 8800 n/a n/a n/a owner n/a n/a Bacnotan 29 Ricardo Dacanay M 6 n/a 9000 10304 n/a n/a n/a owner n/a n/a Bacnotan 30 Ricardo Sanchez M 2 n/a 6500 5263 n/a n/a n/a sharer n/a n/a Bacnotan 31 Jovito Bucasas M 7 1 9000 6100 n/a n/a n/a owner n/a n/a Bacnotan 32 Edwardo Floria M 5 n/a 39000 19017 n/a n/a n/a owner n/a n/a Bacnotan 33 Felipe Sagun M 5 n/a 13849 1065 n/a n/a n/a owner n/a n/a Bacnotan 34 Marila Gamboa F 9 n/a 10500 7965 n/a n/a n/a sharer n/a n/a Bacnotan 35 Teodoro Bucasas M 4 1 4100 3440 n/a n/a n/a owner n/a n/a Bacnotan 36 Rudy Arbollente M 5 n/a 3700 31445 n/a n/a n/a owner n/a n/a Bacnotan 37 Raymundo Bucsit M 3 n/a 7000 4833 n/a n/a n/a owner n/a n/a Bacnotan 38 Rogelio Almodabar M 4 n/a 4700 5156 n/a n/a n/a n/a n/a n/a Bacnotan 39 Jimmy Villuan M 5 n/a 10178 5901 n/a n/a n/a n/a n/a n/a Bacnotan 40 Felicicimo Villuan M 6 n/a 5750 5900 n/a n/a n/a n/a n/a n/a Bauang 41 Renato Calica M 4 1 1200 2658 n/a n/a n/a owner n/a n/a Bauang 42 Solvio Gallardo M 4 n/a 23333 16851 n/a n/a n/a owner Bauang 43 Edna Aquino M 6 n/a 6600 3657 n/a n/a n/a owner n/a n/a Bauang 44 Roberto Balcita M 6 n/a 1800 4246 n/a n/a n/a owner n/a n/a Bauang 45 Alejandro Dumas M 5 n/a 2500 5177 n/a n/a n/a owner n/a n/a Bauang 46 Robert Corpuz M 3 n/a 8000 10606 n/a n/a n/a owner n/a n/a Bauang 47 Susana Flores F 5 n/a 5500 9983 n/a n/a n/a sharer n/a n/a Bauang 48 Dominador Soriano M 4 n/a 2450 3350 n/a n/a n/a sharer n/a n/a Bauang 49 Eduardo Montanez M 14 n/a 6500 4102 n/a n/a n/a sharer n/a n/a Bauang 50 Araceli Laigo F 14 n/a 51300 26609 n/a n/a n/a owner n/a n/a Bauang 51 Lorna Flores F 4 n/a 5500 10882 n/a n/a n/a owner n/a n/a Bauang 52 Peregrino Tadios M 2 n/a 4000 2417 n/a n/a n/a sharer n/a n/a Bauang 53 Alejo Abuan M 5 n/a 52000 15243 n/a n/a n/a owner n/a n/a Bauang 54 Edgar Beninsig M 3 n/a 8000 4727 n/a n/a n/a owner n/a n/a Bauang 55 Rodolfo Abenes M 8 n/a 20000 n/a n/a n/a sharer n/a n/a Bauang 56 Romio Tabios M 8 n/a 4000 4135 n/a n/a n/a owner n/a n/a Bauang 57 Elvira Andrada F 4 n/a 2000 1483 n/a n/a n/a owner n/a n/a Bauang 58 Marcelino Beninsig M 6 n/a 1187 5783 n/a n/a n/a owner n/a n/a Bauang 59 Vivian Ballesteros F 2 n/a 8450 3470 n/a n/a n/a owner n/a n/a Bauang 60 Monico Aromin F 4 n/a 10670 9000 n/a n/a n/a owner n/a n/a Bauang 61 Gaspar Arqueza M 4 n/a 7950 6250 n/a n/a n/a Informal settler n/a n/a Bauang 62 Leo Domondon M 9 n/a 36850 10501 n/a n/a n/a owner n/a n/a Bauang 63 Constantino Montanez M 3 n/a 10158 8158 n/a n/a n/a owner n/a n/a Bauang 64 Benjie Aparado M 7 n/a 5020 5727 n/a n/a n/a n/a n/a n/a Bauang 65 Johnny Villanueva M 3 n/a 29400 3740 n/a n/a n/a owner San Gabriel 66 Lester Bacaeng M 4 n/a 30000 23167 n/a n/a n/a owner n/a n/a San Gabriel 67 Teresita Caoeng F 4 n/a 15000 648333 n/a n/a n/a owner n/a n/a San Gabriel 68 Gideon Caoeng M 4 n/a 12000 11662 n/a n/a n/a sharer n/a n/a San Gabriel 69 Poromio Dicang M 4 n/a 12000 6517 n/a n/a n/a sharer n/a n/a San Gabriel 70 Danilo Dawa M 8 n/a 17000 9608 n/a n/a n/a owner n/a n/a San Gabriel 71 Felicitas Santos F 5 n/a 40000 18999 n/a n/a n/a owner n/a n/a San Gabriel 72 Carlos Caoeng M 5 n/a 9800 7010 n/a n/a n/a owner n/a n/a San Gabriel 73 Paustino Montero M 8 n/a 10000 6208 n/a n/a n/a owner n/a n/a San Gabriel 74 George Pastian M 4 n/a 15000 16600 n/a n/a n/a owner n/a n/a San Gabriel 75 Dolorosa Benabise F 7 n/a 7000 8500 n/a n/a n/a owner n/a n/a San Juan 76 Faustino Dela Cruz M 8 n/a 10000 6000 n/a n/a n/a owner n/a n/a

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – RP MLUWD 20 Supplementary Appendix V

Description of Other Profile of Affected Household Income/Expenditure Affected Structures Affected Assets

Res Number Estimated Estimated HH with Estimated Description Estimated Estimated pon of HH Estimated Value of Status of number of Area Name of HH Head Gender Disabilit monthly of Affected Lot size Value of dent Member Monthly Structures Occupancy affected y Expenditure Assets and price trees/crops No. s Income Affected crops and San Juan 77 Verginia Abat F 2 n/a 4000 3100 n/a n/a n/a owner n/a n/a San Juan 78 Pepiniana Ebreo F 6 n/a 4000 3850 n/a n/a n/a owner n/a n/a San Juan 79 Antonio Javier M 8 n/a 1500 3133 n/a n/a n/a owner n/a n/a San Juan 80 Timoncho Miranda M 7 n/a 9700 4766 n/a n/a n/a sharer n/a n/a San Juan 81 Fernando Abat M 6 n/a 30000 18173 n/a n/a n/a owner San Juan 82 Benjamin Valdriz M 6 n/a 5600 4870 n/a n/a n/a owner n/a n/a San Juan 83 Lito dela Cruz M 6 n/a 5100 4300 n/a n/a n/a owner n/a n/a San Juan 84 Irene Gonzales F 4 n/a 9000 4150 n/a n/a n/a owner n/a n/a San Juan 85 Mariano Quindara M 6 n/a 3000 895 n/a n/a n/a owner n/a n/a San Juan 86 Edwin Esperon M 9 n/a 53200 36117 n/a n/a n/a owner San Juan 87 Edwina Pal-et F 2 n/a 15000 9067 n/a n/a n/a owner n/a n/a San Juan 88 Jesus Castro M 7 n/a 8000 6904 n/a n/a n/a owner n/a n/a San Juan 89 Aurelio Ordas M 6 n/a 3000 11183 n/a n/a n/a owner n/a n/a San Juan 90 Teresita Domaguim F 3 n/a 16000 11467 n/a n/a n/a owner n/a n/a San Juan 91 Filomena Cabanela F 3 n/a 5700 5120 n/a n/a n/a owner n/a n/a San Juan 92 Salvador Cabanela M 4 n/a 14000 5117 n/a n/a n/a owner n/a n/a San Juan 93 Efren Reponte M 6 n/a 9500 3750 n/a n/a n/a owner n/a n/a San Juan 94 Daniel Macato M 5 n/a 7000 2300 n/a n/a n/a owner n/a n/a San Juan 95 Dexter Soriano M 4 n/a 9500 8708 n/a n/a n/a owner n/a n/a San Juan 96 Bonifacio Catbagan M 4 n/a 45250 10367 n/a n/a n/a owner San Juan 97 Marcelino Ducusin M 4 n/a 12000 3950 n/a n/a n/a sharer n/a n/a San Juan 98 Ronnie Pagdatu M 7 n/a 10000 12390 n/a n/a n/a owner n/a n/a San Juan 99 Romano Labsan M 10 n/a 20053 18842 n/a n/a n/a owner San Juan 100 Mamerto Galban M 5 n/a 14045 13010 n/a n/a n/a owner n/a n/a San Juan 101 Jovelyn Cabanela F 3 1 11000 4240 n/a n/a n/a owner n/a n/a San Juan 102 Ida Gonzales F 5 n/a 12000 15536 n/a n/a n/a owner n/a n/a

Notes: Highighted in gray colr are Affected Households/business structures

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ANNEX 2: CONSULTATION ATTENDANCE - MLUWD

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ANNEX 3: PROJECT DISCLOSURE

Part 1:

1. Purpose of the public meeting/consultation. Thank you very much for your attendance. There are two reasons why we have invited you to this public meeting. First, is to establish the basis for the formulation of policies and guidelines in the ongoing study on Water District Development Sector Project (WDDSP) and get the opinions of various stakeholders particularly the opinions of affected persons/households (AP). And second, is to comply with the provision of the law that there should be consultation with the community to obtain their opinions before any project is implemented by the concerned government agency.

2. The need to know issues and constraints. – The issues and constraints encountered by the stakeholders and the APs in their community should be disclosed, as these are the basis for formulating the policies and plans for WDDSP Subprojects. For this subproject, community issues vary from each other and they have their own individuality. For example, water sources or water service distribution could be a problem in your community, while it could be another problem in other community. What we want to know in this public meeting are the issues concerning water service and sanitation service delivery in your community particularly related to specific issues such quality, efficiency and tariff.

3. People’s awareness on WDDSP in your locality. – What this public meeting/consultation also wants to know is if you are aware if there is a subproject is being initiated, and or for implementation by the Water District or any government agency in partnership with LWUA and other concerned agencies including the private sector. If there is a project being promoted or implemented in your locality, kindly mention what this project is and why do you think it is appropriate to your community.

Open Discussion (30 minutes)

Part 2: WDDSP: PROJECT INFORMATION BULLETIN (PIB)

Frequently Asked Questions:

1. Question: What is the Water District Development Sector Project? (WDDSP)

Answer:

• WDDSP is a national government project of LWUA that will be implemented nationwide with the objective of uplifting the quality of water and sanitation services for the Cities and Municipalities outside the Metro Manila areas. A project preparatory technical assistance study (PPTA) for LWUA and the initial 5 pilot WDs will be undertaken. It will formulate a sector investment project (WDDSP) in the water supply and sanitation sector with funding from ADB and other investment sources. Based on the financial planning budget of ADB, the scope of the initial phase of the Project will cover a short-list of up to five pilot water districts (WD),namely: Metro La Union Water District, La Union Province, Luzon; Quezon Metro Water District, Quezon Province, Luzon; Legazpi City Water District, Albay Province, Luzon; Leyte Metro Water District, Leyte Province, Visayas;; City of Koronadal Water District, South Cotabato province, Mindanao and a long-list of WDs will be identified for implementation under subsequent phases. It will also undertake a preparation of implementation support and institutional development programs addressing sector reform, governance and public awareness.

• It will be implemented by the Local Water Utilities Administration (LWUA) and the Water Districts. The ADB provided grant for Technical Assistance (TA) in the subproject preparatory study and eventually a loan facility for the implementation of the project. The WDDSP consists of two components: (i) Infrastructure Investments that will cover all WDs

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nationwide; (ii) Institutional Capacity Development and Sector Policy Reform component. The intended impact of the Project is to improve water and sanitation service delivery by WD throughout the Philippines. The targeted outcomes of the Project are the increase in quality, coverage and reliability of water and sanitation services, improved infrastructure facilities and sustainable water sources, and an improved institutional capacity of WDs to manage and undertake development of sustainable water services.

2. Question: What are the key concerns/issues and activities to be addressed by the Water District Development Sector Project? (WDDSP)

Answer: • Scope of subproject, in view of future population and water demand. • Non-revenue water. • Sanitation component (septage management). • Social and environmental safeguards. • Political/stakeholder support • Water resources assessments • Water supply audits • Sanitation audits • Social/ Resettlement risks assessments and mitigations • Socioeconomic survey and poverty analysis • Subproject community consultations and focus group discussions • Subproject environmental assessments and public consultations • LWUA/WD capacity building, training needs assessments

3. Question: What is the plan of the Water District for the Affected Persons/ Households of the Project?

Answer: • A Resettlement Plan (RP) will be prepared for all the affected persons/households (if applicable to the subproject) to ensure that there will be no persons/households worse off due to the project.

• The Resettlement Plan will be based on Philippine laws and statues on resettlement and in the ADB’s policy on Involuntary Resettlement. The aim of ADB Policy on Involuntary Resettlement is to avoid or minimize the impacts on people, households, businesses and others affected by the acquisition of land and other assets, including livelihood and income. Where resettlement is not avoidable, the overall goal of the ADB policy is to help restore the living standards of the affected people to at least their pre-Project levels by compensating for lost assets at replacement costs and by providing, as necessary, various forms of support.

Open Discussion (30 Minutes)

TA No. 7122-PHI: Water District Development Sector Project PPTA – Final Report – RP MLUWD Supplementary Appendix V

Resettlement Planning Document ______

Resettlement Plan Document Stage: Draft March 2010

PPTA 7122 - WDSSP: Water District Development Sector Project

Quezon Metro Water District

Prepared by: Local Water and Utilities Administration (LWUA)

The Resettlement Plan is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD i Supplementary Appendix V

CONTENTS

Executive Summary i

Definition of Terms v

Abbreviations vii

I. Introduction 1 A. Project Background 1 B. Scope of the Resettlement Plan 2

II. Legal Framework 2 A. Philippine Laws and Policies 2 B. ADB Policies 4 C. Gap Analysis and Reconciliation of Laws and Policies 5

III. Project Principles 7

IV. Scope of Resettlement Impact 8

V. Socio-Economic Information 11

VI. Project Entitlements 12

VII. Consultation, Grievance Redress, and Disclosure 13 A. Consultation and Participation 13 B. Grievance Redress Mechanism 14 C. Disclosure of Resettlement Plan 15

VIII. Ethnicity and Vulnerability 15

IX. Institutional Arrangements 15

X. Monitoring and Evaluation 16

XI. Implementation Schedule 18

XII. Cost Estimates and Financial Plans 18 A. Cost Estimates 18 B. Funds Flow and Disbursement of Compensation 19

Tables 1 Laws and Statutes Governing Resettlement in the Philippines Applicable to WDDSP 3 2 Comparison and Reconciliation of Applicable Philippine Laws, ADB’s Policy and Project Policy 6 3 Project Entitlement Matrix 13 4 Indicators for External Monitoring 17 5 Resettlement Plan Implementation Schedule 18 6 Resettlement Plan Financial Plan and Budget 19

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD ii Supplementary Appendix V

Figures 1 Schematic Plan for the QMWD indicating the Affected People and Assets 9 2 Present and Proposed QMWD Coverage 10

Annexes 1 Summary of Inventory of Losses Survey – QMWD 21 2 Project Disclosure - QMWD 22 3 Consultation Attendance - QMWD 24

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD i Supplementary Appendix V

EXECUTIVE SUMMARY

Introduction

1. The Local Water Utilities Administration (LWUA) has sought the assistance of the Asian Development Bank for a PPTA for the preparation of a sector development plan addressing these overarching concerns and issues on lack of and or enhancement of water sources and distribution outside Metro Manila. The project name is Water District Development Sector Project (WDDSP). The sector project objective was to improve the livability and competitiveness in urban areas outside Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The objective of the PPTA is to (i) formulate a sector investment project (WDDSP) in the urban 1water supply and sanitation sector1 with funding from ADB and other investment sources, and (ii) prepare implementation support and institutional development programs addressing sector reform, governance and public awareness.

2. Based on the financial planning budget of ADB, the scope of the initial phase of the sector project will cover a short-list of up to five pilot water districts (WD), and based on an evaluation of candidate water districts (WD) on criteria such as creditworthiness, interest to participate, and readiness, Quezon Metro Water District (QMWD) was selected as one of five pilot Water Districts to participate in the PPTA for the preparation of subproject appraisal reports (SPAR).

Resettlement Plan

3. Major components of the Resettlement Plan for Quezon Metro Water District Project will be treated as a development project. They comprise the integrated sets of activities and interventions to be undertaken by different stakeholders in the community. It shall be anchored on a participatory and community-driven development approach and guided by the following principles, such as: (i) stakeholders participation; (ii) consensus-based planning; (iii) development based on affordability and willingness-to-pay by beneficiaries; (iv) transparent and documented planning; (iv) long-term sustainability; (v) adherence to the legal framework on resettlement in the Philippines; (vi) and compliance with ADB’s Policy on Involuntary Resettlement.

4. The Quezon Metro Water District Subproject RP is founded on both the applicable resettlement laws in the Philippines and the SPS on involuntary resettlement policy of ADB. Based on these policies, compensation and entitlements shall be provided to APs. The following important elements are highlighted in this RP as the following: (i) Legal Framework, Entitlements and Beneficiary Eligibility ;( ii) Institutional arrangements; (iii) Consultation and participation. Project stakeholders are informed and consulted in every stage of RP implementation, which include women, community beneficiaries as well as the institutions involved in the project; (iv) Socio economic information and profile of the AP; (v) Grievance and Redress Procedures for resolution of conflicts arising from compensation and entitlement. (vi) Financing Plan and Funds Flow Arrangement; (vii) implementation schedules with indicative time for project activities including disbursement and compensation; (vii) Monitoring and Evaluation; (viii) Update of the RP will be needed to accommodate changes in design and to ensure that they do not have adverse impact to the APs; (ix) Project disclosure to promote transparency so that all people benefiting from or affected by the subproject are fully aware of their rights and entitlements, informed decision making, and the development of trust between the implementing agency and the affected person.

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Resettlement Impacts

5. Based on the preliminary design prepared for Quezon Metro Water District (QMWD) subproject, households whose residential and commercial assets will be affected by the proposed project are as follows: 2 APs in Tayabas Upper, 18 APs in Tayabas Lower, and 21 APs in Lucena City. There are 39 households along the entire strip of new water lines lines traversing some residential assets such as concrete pavements, driveways, gutters, house frontages or side walls, wooden or barbed fences, and electric posts and trees. The total estimated value of affected residential assets is Php 2,950,000. There are three (3) households in Tayabas Lower with commercial stalls totaling to 31 square meters and an estimated value of Php 310,000, will be affected by the project. No indigenous peoples as well as vulnerable groups identified as AP for this subproject.

Consultations and Disclosure

6. Consistent with provisions of ADB’ Public Communication Policy- Disclosure and Exchange of Information (2005), consultation and disclosure processes were undertaken in the Subproject. Consultations with the AP were carried out during the preparation of this RP and will continue throughout the various stage of the Project. LWUA and the Water District shall make available to affected people and households: (i) Before appraisal – draft RP; (ii) after completion of the final RP; (iii) after revisions to the RP as a result of detailed technical design or change in scope of the Project – the revised RP. Prior the ADB Management Review meeting, the management of the QMWD will ensure that the following disclosure is met: Distribution of the PIB in English and explained local language understood by the APs was conducted. The water district offices were requested to post said PIB in designated public information spaces in the water district offices. Upload the RP in LWUA website and to the ADB resettlement website upon approval by the ADB of this RP.

Implementation Arrangements

7. The overall responsibility for enforcing the WDSSP Resettlement Policy, including this RP prepared for QMWD rests with the LWUA and the Water District. LWUA - PMO and QMWD -PIU will ensure that sustained efforts will be in placed in order to enhance AP and client relationships and to promptly address issues or conflicts arising from non-compliance of project benefits and compensation. The PIU will also ensure that APs are afforded with opportunities for active and effective participation in the preparation and implementation of the Resettlement Plan. A grievance and redress process will be established in QMWD and will constitute a Water District Resettlement Committee. (WRDCC) composed of WD-PIU head as chair, concerned NGOs and the barangay officials and households headed by women as members.

Implementation Schedule

8. The proposed improvement program as contained in this study will be implemented over a one and a half year period starting in mid-year 2012 and until end of year 2013. The improved system is expected operate by the first quarter of 2014.

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RP Budget and Flow of Funds

9. The Resettlement Plan will include detailed cost estimates for all preparatory resettlement activities, including cost of project assistance and compensation. The Resettlement Plan for QMWD Subproject will require a total budget of PhP 4,015,000.00. A ten percent (10%) contingency will be added to each of the items to accommodate increases in prices of goods and services. Funds disbursement procedures to the APs will follow the new accounting rules and regulations of the Philippine government. The Project implementation unit in coordination of the budget and finance office of the water district will process the necessary documents for the payments and compensations and project assistance stipulated in the RP.

Updating of RP

10. All RP prepared during the SPAR preparation shall be updated after the detailed design and engineering is completed. This action is needed as there may have significant changes that would occur during subproject implementation. Any modifications to the RP will only be limited to inclusions of new entitlement, changes in the mode of compensation for the APs and other mode of payment but in no case should be a reduction or replacement of entitlement or its equivalent monetary value. The LWUA will inform and consult ADB for clearance on any modifications of the RP. The revisions will form part of the loan agreement.

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Quezon Metro Water District - WDDSP

Quezon Metro Water District

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Definition of Terms

Affected People (APs) includes any person or entity or organization affected by the Project, who, on account of the involuntary acquisition of assets in support of the implementation of the Project, would have their (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house and buildings, pavements and other physical improvements, land (including residential, commercial, agricultural, plantations, forest and grazing land) water resources, annual or perennial crops and trees, or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily; and (iii) business, profession, work or source of income and livelihood lost partly or totally, permanently or temporarily.

Compensation – payment in cash or in-kind at replacement cost for an asset affected or to be acquired by the Project.

Eligibility cut-off date is the date that a population record or census, preferably at the project identification stage, serves as an eligibility cut-off date in order to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The cut-off date will be the date when the census for the RP is completed.

Entitlement refers to range of measures comprising compensation in cash and/or in kind payment for loss of land and non-land assets, including assistance for income restoration and relocation and special support to poor and vulnerable households.

Land Acquisition is the process whereby a person is compelled by the Government through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the government in the implementation of the Project or any of its components in return for consideration.

Relocation is the physical shifting of an AP from his/her pre-project place of residence and/or business to another place.

Replacement Cost is the amount in cash or in-kind needed to replace an asset and is the value determined as compensation for: a. Agricultural land based on market prices that reflect recent land sales prior to the commencement of the Project or displacement, and in the absence of such recent sales, based on assed and prevailing market value; b. Residential land based on market prices that reflect recent land sales prior to the commencement of the Project or displacement, and in the absence of such recent land sales, based on similar location attributes; c. Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials; d. Crops based on current market value; e. Trees and other perennials based on current market value; and f. Other assets (i.e., income, community facilities) based on replacement cost or the cost of mitigating measures.

Rehabilitation means assistance provided to severely affected APs due to the loss of 10% or more of productive assets (i.e., farmland, crops and trees, vegetable garden, etc.), incomes, and employment or when sources of living such as shops and place of employment have to be reconstructed completely and/or relocated. The livelihood support may be given in cash or in kind or a combination of the two in order to improve, or at least achieve full restoration of living standards to pre-project levels.

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Resettlement refers to all measures taken by the Project proponents to mitigate any and all adverse social impacts of the Project on the APs, including compensation for lost assets and incomes, and the provision of other entitlements, income restoration assistance, and relocation as needed. Resettlement is significant where 200 or more people experience major impacts. Major impacts are defined as involving affected people being: (i) physically displaced from housing/dwelling units and/or (ii) having 10% or more of their productive, income generating assets lost; and/or (iii) lose more than 40% of their residential structure. Affected people experiencing major impacts are referred to as ‘severely affected APs’.

Structures and structural losses refer to losses to constructed assets, residential houses, pavements, driveways, institutional structures, utility structures, business structures with residence attached to it and other income producing spaces.

Severely Affected Persons are those who experience significant /major impacts due to (i) loss of 10% or more of their productive, income-generating assets and /or (ii) being physically displaced from housing, place of residence and sources of income.

Vulnerable Groups are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) households headed by women, the elderly or disabled, (ii) households living below the poverty threshold, (iii) the landless, and (iv) indigenous people and ethnic minorities

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ABBREVIATIONS

ADB Asian Development Bank AP affected person(s) DA Department of Agriculture DMS detailed measurement survey EA Executing Agency EMA External Monitoring Agency HH Household IA Implementing Agency IOL Inventory of losses IP Indigenous Peoples Plan GAD Gender and Development GAP Gender Action Plan LWUA Local Water and Utilities Administration LGU Local Government Unit PIB public information booklet PIU Project Implementation Unit PMU Project Management Unit RF Resettlement Framework RP Resettlement Plan ROW right-of-way SES Socio economic Survey SPAR Subproject Appraisal Report WD Water District WDRC Water District Resettlement Committee

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I. INTRODUCTION

A. Project Background

1. ADB fielded a Fact-Finding Mission during 25 March – 9 April 2008 and formulated the PPTA in line with the poverty reduction policies of the Government and ADB, and the Millennium Development Goals (MDG),11 and reached a preliminary understanding with the Government on the goals, purpose, and implementation and financing arrangements, cost and terms of reference (TOR) of the PPTA. ADB assisted LWUA for the PPTA to prepare a sector development plan addressing these overarching concerns and issues. The project name is Water District Development Sector Project (WDDSP).

2. The sector project objective was to improve the livability and competitiveness in urban areas outside Metro Manila through the provision of better water supply and sanitation infrastructure and services to a number of water districts. The objective of the PPTA is to (i) formulate a sector investment project (WDDSP) in the urban water supply and sanitation sector12 with funding from ADB and other investment sources, and (ii) prepare implementation support and institutional development programs addressing sector reform, governance and public awareness.

3. Based on the financial planning budget of ADB, the scope of the initial phase of the sector project will cover a short-list of up to five pilot water districts (WD), and based on an evaluation of candidate water districts (WD) on criteria such as creditworthiness, interest to participate, and readiness, Quezon Metro Water District (QMWD) was selected as one of five pilot WDs to participate in the PPTA for the preparation of subproject appraisal reports (SPAR).

4. Based on an analysis of options and alternatives to meet future water demands to the design planning horizon of 2025, the recommended water supply system improvement program will be undertaken in a two stages: Phase 1 is proposed to cover maximum day demand requirements until design year 2017, while Phase II is proposed to cover requirements until design year 2025.

5. Phase I Development Program (2010-2017). To supplement the existing facilities, the Phase I development program will include the following:

1. Laying of approximately 10 km of 200mm to 300mm∅ transmission pipes including valves and appurtenances from Tayabas proper to proposed reservoir in Barangay Calumpang near Lucena City area. 2. Construction of nine (9) additional deepwell sources and provision of pumping and disinfection facilities, including provision of generator sets, and provision of power supply lines.

3. Laying of approximately 65 km of 50mm∅ to 300mm ∅ transmission and distribution lines including valves and appurtenances at existing service area and proposed expansion areas including pipe bridge crossings and culvert crossings, provision for pavement cutting, breaking and surface restoration. 4. Construction of 1,150 cum storage facilities. 5. Installation of 10 sets of 150mm and 15 sets on 10mm fire hydrants.

11 Particularly Goal 7 – Ensure environmental sustainability; and Target 10 – Halve, by 2015, the portion of people without sustainable access to safe drinking water and basic sanitation. 12 Defined as encompassing human waste (‘black’ water) and wastewater (household ‘grey’ water, industrial effluents, etc).

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6. Installation of 2,616 service connections excluding water meters. 7. Provision for booster pumps station at Bgy. Masin and at at Lucena area. 8. Provision for stored materials and equipment; and 9. Acquisition of about 2000 sqm of land for wells and reservoirs

6. It is proposed that only Phase I is implemented under WDDSP; new financing arrangements will need to be made to implement the proposed Phase II works. The additional sources will come from groundwater through wells in the well fields in Lucena North and Northwest, Lalo-ALitao and Masin in Tayabas and Malicboy in Pagbilao. The operational storage computed at 15% to 30% of the maximum day demand is recommended for the proposed water supply improvement program of QMWD. The proposed improvement program as contained in this study will be implemented over a one and a half year period starting in mid-year 2012 and until end of year 2013. The improved system is expected operate by the first quarter of 2014.

B. Scope of the Resettlement Plan

7. This Resettlement Plan (RP) presents the general guidelines and procedures in addressing involuntary resettlement issues for QMWD as one of the Subproject under WDSSP. A key element of ADB’s resettlement policy is to avoid wherever possible the need for involuntary resettlement. During the subproject appraisal activities, the Project Preparatory Technical Assistance (PPTA) Team conducted a series of discussions with officials and personnel of QMWD water district to reduce potential adverse impact of the project to the community. Other activities included the conduct of socio-economic surveys, inventory of losses, information dissemination, discussions and key informant interviews with community leaders, land owners and persons that may possibly be affected by the specific requirements of the project.

8. Major components of the Resettlement Plan for QMWD will be treated as a development project. They comprise the integrated sets of activities and interventions to be undertaken by different stakeholders in the community. It is anchored on a participatory and community-driven development approach and guided by the following principles, such as: (i) stakeholders participation; (ii) consensus-based planning; (iii) development based on affordability and willingness-to-pay by beneficiaries; (iv) transparent and documented planning; (iv) long-term sustainability; (v) adherence to the legal framework on resettlement in the Philippines; (vi) compliance with ADB’s SPS on Involuntary Resettlement; and (vii) responding to the need to address gender issues. QMWD Subproject is founded on both applicable resettlement laws in the Philippines and ADB’s Safeguards Policy Statement 0n Involuntary Resettlement.

II. LEGAL FRAMEWORK

A. Philippine Laws and Policies

9. The Philippine Constitution states that the protection of property is State Policy and is essential for Filipino to enjoy the benefits of democracy. Private property is the right of every citizen. The Constitution also states that it prohibits depriving any person of his property without due process and no taking of property is allowed by law with no just compensation. Existing legislations and guidelines that address various aspects of land acquisition and resettlement include among others Executive Order 1035, RA 6657, RA 7160, RA 7279, RA 8435, and RA 8974. Table 1 describes the laws and statutes applicable to aspects of resettlement.

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Table 1: Laws and Statutes Governing Resettlement in the Philippines Applicable to WDDSP

Aspects of Laws and/or Statutes Description Resettlement Community R.A. No. 7160 (Local Provide prior consultation with affected communities on Participation and Government Code), Sections any project and require the approval of the concerned Consultation 2 (c) and 27. Sangguniang Panglunsod (municipal council)

R.A. No. 7279 (UDHA Law), The provisions of this law also require consultations with Article I, Sec. 2; Article V, affected persons and communities. Sec. 23; Article VII, Sec. 28 (2) and IRR of UDHA, Sec. 3 The results of consultations will form part of the approval of (e.1) the resettlement plans by the LGU’s Sangguniang Panglunsod (SP); Sanguniang Bayan (SB)

RA No. 8435 (Agriculture Consultation and participation of farmers, fisher folks and and Fisheries Modernization agrarian reform communities (ARCs) and other Act of 1997) stakeholders on the components of the project to them.

Land Acquisition R.A. No. 7160 (Local Provision for the LGUs or sub-national administrative Government Code), Section entities in the exercise of the power of eminent domain but 19. it can only be applied for "public use or purpose or for the benefit of the poor and the landless" and property owners will be paid with just compensation.

EO 1035 Facilitating the Acquisition of Right-of-Way, Site or Location of National Government Infrastructure Projects and for R.A. No. 8974 (Guidelines Other Purposes. for Government Acquisition of Right of Way or Site Location)

R.A. No. 7279 (Urban Provision for the development, award and disposal of land Development and Housing under usufruct arrangement for purpose and use of Act of 1992) socialized housing and urban services.

Comprehensive Agrarian RA 6657 Section 28 states that landowner shall retain his Reform Law Republic Act share of any standing crop un-harvested at the time the 6657 (1988) DAR shall take possession of the land under Section 16 of this Act, and shall be given a reasonable time to harvest

Republic Act 6389 RA 6389 states that “in the event of change in land use from agriculture to other uses, agricultural lessees are entitled to disturbance compensation equivalent to five times the average of the gross harvests on his landholding during the last five preceding calendar years."

Compensation R.A. No. 8974, Sections 8, 9, Provide for the compensation of affected properties based 10 and 13. on current market prices.

Poor R.A. No. 7279 (UDHA Law), For urban poor, provision for basic services and livelihood Article V, Sections 21 and component under socialized housing and urban services. 22. For rural poor, they are not to be evicted nor are their Implementing Rules and dwellings demolished except in accordance with the law in Regulations of UDHA, a just and humane manner (Constitution). Assistance is Section 3, III (b.3.0) limited only to payment at replacement cost for structures and improvements. Additional assistance may be provided on a case by case basis.

Monitoring Executive Order No. 152 Prescribes for the broad monitoring of all types of eviction ( Series of 2002) and demolitions involving the underprivileged and homeless citizens by the Presidential Commission for the Urban Poor (PCUP). All national government agencies and local government units should apply for Certificate of Compliance prior to the implementation of eviction and

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Aspects of Laws and/or Statutes Description Resettlement demolition.

Disclosure Constitution It states "full public disclosure by the State of all its transactions involving the public interest “ and "the Citizens RA 7279 have the right of access to information on matters of public concern.” Requires that all households affected are informed of any proposed development plan.

B. ADB Policies

10. The aim of ADB Policy on Involuntary Resettlement is to avoid or minimize the impacts on people, households, businesses and others affected by the acquisition of land and other assets, including livelihood and income. Where resettlement is not avoidable, the overall goal of the ADB policy is to help restore the living standards of the affected people to at least their pre-Project levels by compensating for lost assets at replacement costs and by providing, as necessary, various forms of support.

11. The main objectives and principles of the ADB Policy on Involuntary Resettlement are as follows: a. Involuntary resettlement should be avoided where feasible. b. Where population displacement is unavoidable, it should be minimized by exploring all viable project options. c. All compensation is based on the principle of replacement cost. d. Each involuntary resettlement is conceived and executed as part of a development project or program e. Affected people should be fully informed and consulted on compensation and/or resettlement options. f. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. g. The absence of a formal legal title to land is not a bar to ADB policy entitlements. h. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers of others who wish to take advance of such benefits. i. Particular attention must be paid to the needs of the poorest affected households and other vulnerable groups that may be at high risk of impoverishment. This may include affected households without legal title to land or other assets, households headed by women, the elderly or disabled, and ethnic minority socio-economic status. j. The full costs of resettlement and compensation should be included in the presentation of project costs and benefits. k. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the

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required resources and ensure compliance with involuntary resettlement procedures during implementation.

12. ADB’s Policy on Indigenous Peoples defines “indigenous peoples” as “those with a social or cultural identity distinct from the dominant or mainstream society.” "Indigenous peoples" is a generic concept that includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals. The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them.

13. The policy on indigenous peoples is “designed to promote the participation of indigenous peoples in project preparation and implementation, to ensure that they benefit from development interventions that would affect them, and to provide effective safeguards against any adverse impacts”. In any ADB interventions, the approaches to be used are as follows: (i) to achieve the greatest possible reduction of poverty among the affected indigenous peoples; (ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts; (iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and (iv) the mechanisms for any intervention must be transparent and should ensure accountability.

14. ADB’s Policy on Gender and Development adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005) and OM Section L3/BP (September 2005), and (ii) Accountability Mechanism (OM Section L1/BP, dated 29 October 2003)

C. Gap Analysis and Reconciliation of Laws and Policies

15. In the design of compensation and entitlements of affected persons or households, consideration was given to the resettlement policies of the Philippine Government and that of ADB. The policies are shown in Table 2 citing comparison, applicability and reconciliation in order to address the gaps in this Project.

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Table 2: Comparison and Reconciliation of Applicable Philippine Laws, ADB’s Policy and Project Policy Philippine Laws/ Key Issues ADB Policy Project Policy Policies 1. Non-titled land users, Philippine Constitution, Non- titled APs are not Non- titled APs are not caretakers/ tenants of Article XIII, Section 10: entitled to compensation of entitled to compensation land, sub-leased space Urban or rural poor land but APs including of land but APs including not covered by contracts dwellers shall not be renters, informal settlers/ renters, informal settlers/ between and among evicted nor their squatters are entitled to squatters are entitled to the owners of land, and dwellings demolished, payment for non-land assets payment for non-land informal settlers of except in accordance and assistance to restore assets and assistance to private government with the law and in a just their pre-project living restore their pre-project property, including humane manner. conditions. living conditions. community facilities Focus is given on urban If they are poor and If they are poor and poor as per UDHA. vulnerable, appropriate vulnerable, appropriate Limited assistance or assistance must be provided assistance must be protection is given to the to help them improve their provided to help them rural poor unless they are socio-economic status. improve their socio- tenured agricultural economic status. underclass. If government The law is not very clear infrastructure is affected, on assistance to small owners are consulted and enterprises, renters compensation and replacement will be provided. Project assistance shall be provided for APs housing structures with attached small enterprise 2. Compensation of R.A. No. 8974, Sections All compensation is based All compensation will be land, commercial 8, 9, 10 and 13 provides on the principle of based on the principle of structures, residential compensation of affected replacement cost. replacement cost. and income generating properties based on fair spaces with attached market value. with mixed- uses, crops Executive Order 1035 and trees. (1985) provides for the procedures and guidelines for the expeditious acquisition of properties and rights by the Philippine Government for infrastructure and other government projects. 3. Provision of Income restoration/ All eligible APs including Rehabilitation assistance rehabilitation assistance rehabilitation assistance tenants, employees of will be provided to those to displaced households is available only to affected businesses who who lose 10% or more of resettled and stand to lose their jobs, their income generating beneficiaries of socialized incomes or livelihoods assets and or physically housing. because of project impacts displaced. are entitled to receive one- The Philippines has law time financial assistance to Strategies to create new protecting women, elderly opportunities to improve Vulnerable groups cover losses of the move, as and children, persons well as economic and social income status of the poor with disabilities, and rehabilitation. and vulnerable people to indigenous peoples. avoid their further However, the issue is on Measures to include the impoverishment. proper implementation status of the poor and and attention given to vulnerable should focus on The project will provide these groups based on strategies to avoid future additional assistance on a resettlement impacts. impoverishment and create case to case basis new opportunities. depending on the type of vulnerability identified in

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Philippine Laws/ Key Issues ADB Policy Project Policy Policies the subproject. This assistance will be included in the subproject for each WD - RP.

III. PROJECT PRINCIPLES

16. The QMWD resettlement plan and entitlements have been built upon the laws of the Government of Philippines, principally the Philippine Constitution that provides basic principles of water resources development and management, which stipulate that all waters of the Philippines belong to the state and applicable laws and regulations covering land acquisition, resettlement and compensation of land and structures, and the ADB’s Social Safeguards Policy on Involuntary Resettlement (2009). Whenever a gap exists, the ADB policy on involuntary resettlement will prevail. Basic project principles of QMWD- WDDSP are as follows: (i) The acquisition of land and other assets and the relocation of affected persons (APs) will be minimized as much as possible by exploring all viable options. (ii) Rehabilitation assistance will be provided to severely affected people and other vulnerable groups to assist them to improve or at least restore their pre-project living standards, incomes and productive capacity. (iii) Particular attention will be paid to the needs of the poorest people and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, landless households, households headed by females, the elderly or disabled and other vulnerable groups. Appropriate assistance must be provided to help them improve their socio-economic status. (iv) Lack of legal title to affected assets will not bar APs from entitlement to compensation and assistance. (v) In the case of the relocation of APs, replacement houses and/or agricultural land will be located as close as possible to the assets that were lost, and at locations acceptable to APs. (vi) Efforts shall be made to maintain, to the extent possible, the existing social and cultural institutions of the resettled people and host communities. (vii) APs will be fully informed and closely consulted and will participate in the preparation and implementation of RPs for each sub-project. The comments and suggestions of affected people and communities will be taken into account during the design and implementation phases of resettlement activities. (viii) Adequate resources will be identified and committed during resettlement planning for each sub-project and the overall Project. This includes adequate budgetary support fully committed for each sub-project and made available to cover the costs of land acquisition, compensation, resettlement and rehabilitation within the agreed implementation period for the sub-project; and, adequate human resources for supervision, liaison and monitoring of land acquisition, resettlement and rehabilitation activities. (ix) Appropriate reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. Monitoring

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and evaluation of the land acquisition, resettlement and rehabilitation processes and the final outcomes will be conducted by an independent monitoring agency. (x) Key information in the RP will be translated into Filipino or, where necessary, the local language and placed in the Water District offices for the reference of APs as well as other interested groups. (xi) ADB shall not approve of any award of civil works contract for any sub-project to be financed from the loan proceeds unless the Resettlement Plan following detailed design and based on detailed measurement survey (DMS) has been submitted to and approved by ADB. .

IV. SCOPE OF RESETTLEMENT IMPACT

17. Of the 101 surveyed , the were 41 households whose residential and commercial assets will be affected by the proposed project in the areas of Tayabas Upper, Tayabas Lower, and Lucena City The total affected residential and commercial area is 379 square meters, with an estimated value of Php 3,260,000. By area, the number of affected households is as follow: 2 APs in Tayabas Upper, 18 APs in Tayabas Lower, and 21 APs in Lucena City. There are other households along the strip of new lines whose residential assets will be affected such as concrete pavements, driveways, gutters, house frontages or side walls, wooden or barbed fences, and electric posts and trees. The total estimated value of affected residential assets is Php 2,950,000. There are three (3) households in Tayabas Lower with commercial stalls totaling to 31 square meters and an estimated value of Php 310,000, will be affected by the project. Lots in various sizes for reservoirs will be acquired from various owners on varied sizes. Actual land size and cost will be determined upon completed detailed engineering design.

18. Figures 1 and 2 show the schematic plan and the current and proposed plan for the water system in QMWD with identified affected assets.

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Figure 1: Schematic Plan for the QMWD indicating the Affected People and Assets

3 AP Tayabas upper (commercial)

39 various affected assets 2 AP Tayabas Upper such as trees, scrubs, fences, pavement etc. Along the entire strip

18 AP Tayabas lower

21 AP Lucena City

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Figure 2: Present and Proposed QMWD Coverage

2,000 sqm lot total in various sizes for reservoir for negotiated acquisition

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19. Methodology. Socio-economic surveys, preliminary inventory of losses (IOL) were conducted in October 2009 in coordination with the Quezon Metro District technical team and other staff members and PPTA consultants. Identified affected structures were based on the preliminary engineering designs prepared for the sub-project.

20. Impacts on Affected Land /Structure Owners. Based on the IOL and proposed plan, and a total estimated 2,000 sqm lot will be acquired for the subproject’s reservoirs. There 41 APs (structures and landowners) that will be affected by the subproject with multi uses. The IOL survey conducted showed that the water pipes will cut across these also among these properties and assets such as driveways, gutters, house fence frontages and side walls, wooden and barbed wires and electric posts that will be affected during construction of the water lines. Annex 1 is the summary of affected assets and their estimated value.

V. SOCIO-ECONOMIC INFORMATION

21. The franchise area of Quezon Metro Water District is composed of one city and two municipalities namely, the City of Lucena, Municipality of Pagbilao, and Municipality of Tayabas which are adjacent to each other. The city of Lucena is at the central portion of Quezon Province. Pagbilao is about ten kilometers from Lucena while Tayabas is about 12 kilometers away. The population of Lucena City is 236,390, according to the NSO Census of Population and Housing of 2007. Urban population accounts for 203,584 which is 86.12% of the total population, while the rural population accounts for 32,806 which is 13.88% of the total population. The annual growth rate is 2.71% based on the 2000 and 2007 population data.

22. The Quezon Metro Water District sample site encompassed 13 barangays out of 2 municipalities and one city of the province of Quezon. As of 2007, the population of the franchise area was 386,203 with 66,562 (as of 2000). which was close to 24% of the provincial population of 1,646,510. There were 35,084 combined service connections as of 2008.

23. The survey sample had the following characteristics. Average household size was 5 with 37% having 5-6 members. This gives an estimated household population of 77,241 and service coverage estimate of less than 45% of households since service connections cited above included commercial and government establishments.

24. Highest grade of household head was high school (38.8%) and college and over (36.5%); respondents were distributed under a wide occupational range including farming, business, street vending, and government and private and employment; 15.5% were unemployed but 23.7% owned a business. The QMWD franchise area had a high dependency rate; ages below 14 (1-2 members below 14 years old) were represented at 46% while there were 29% of households with 1 – 2 members above 65. Average length of stay in the area was 24 years though there were mobile/transient populations that were new to the area. Majority (85%) of households were Tagalog. Sole occupancy of dwelling was most common at 82.7% with 41% owning the house they occupied; 56.8% classified their dwelling unit as being made of strong housing materials while 26.4% had mixed but predominately strong housing materials. About 65% of those with strong housing materials had WD water connection.

25. Income and Expenditure Profile. Average monthly income was P13, 324 though 14.3% had incomes of less than P5, 000 and another 31.5% had an income range of P5,000 – P9,999. Estimated poverty threshold for a household of 5 members was around P6, 486. This was computed from the official annual per capita poverty threshold for Quezon for 2007

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 12 Supplementary Appendix V

which was pegged at P15, 445 for both urban and rural areas.

26. About 16.6% spent less than P5, 000 per month while 34.6% spent about P5, 000 – P9, 999. Over 71.6% were unable to save while those who could (12.4%) had less than P1, 000 in savings per month. Television (95.1%), cellular phones (86.3%) and refrigerators (77.8%) were the most common valuable items of the household.

27. Seventy-nine percent of households borrowed money in the last year; major reasons for borrowing were more for daily needs rather than for investment. These included household expenses (43.1%), business (32.7%), food (26.1%), education (25.8%), health (7.8%), building/renovation of house (0.3%). There was limited access to formal credit. Relatives and friends were the main sources of borrowing (51.3%); 19.3% had resorted to usurious lenders (5-6 or a monthly interest of 20%) while 24.2% took out loans from cooperatives, 13.1% from micro-finance institutions, and 1.6% each from credit cards, the GSIS/SSS and from stores.

VI. PROJECT ENTITLEMENTS

28. The executing agencies, the LWUA and WD as the borrowers for the infrastructure investment covered under the WDDSP, will ensure that the RP activities of QMWD subproject submitted for funding are conducted in accordance with ADB policy on Involuntary Resettlement and Philippine Government’s applicable laws and regulations.

• Cut-off Date. All APs who are identified in the subprojects sites on the cut-off date will be entitled to compensation for their affected assets and rehabilitation measures adequate to assist APs to improve or at least maintain their pre-project living standards. The cut-off date will be the last day of the census and detailed measurement survey (DMS) in QMWD. DMS will be conducted after the completion of detailed engineering plans. Those who enter in the subproject site after the cut-off date will not be entitled to compensation or any form of subproject assistance.

• Potential Impacts and Entitlements. Table 3 provides the types of losses and corresponding nature and scope of entitlements. However, this matrix may not cover all resettlement impacts and or losses specific and particular QMWD subproject. The detailed measurement survey (DMS) will be the basis for the determining the final entitlements based on the actual impact and or losses, appropriate project assistance, relocation and, special assistance to poor and vulnerable groups during the preparation of the RP. A replacement cost survey will be carried out to determine the actual replacement costs and rates.

• Donation. In the event that land owners will opt to convey and donate their affected land to the QMWD for the project, there is a need to hold series of consultation with the affected landowners to document and confirm the donation being made particularly on the size of land and its description and obtain a written document of this action. Additionally, the QMWD will conduct a validation assessment on the impact of this donation to determine if the land will not severely affect the living standards of the owners and the donor do not belong to the poorest of the poor. This process will be witnessed by a third party such as an organization in the community. A grievance redress for the donor will also be available to ensure that no one is put worse off because of this land donation.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 13 Supplementary Appendix V

Table 3: Project Entitlement Matrix Type of Loss/Impact Entitled Persons Entitlements Permanent land All APs listed in the Compensation based on the principle of replacement acquisition survey and has proof of cost which is a method of valuing assets to replace ownership/claim of their the loss at current market value, plus any transaction (Loss of agricultural, land. costs such as administrative charges, taxes, residential, commercial registration and titling costs. land) Residential / AP owners who were Compensation for permanent houses and other institutional structures located at the site during structures affected either in full or in part, will be and commercial/income the cut- off date of the determined according to replacement value for generating spaces survey regardless of materials and labor to rebuild similar structures, at tenure and status (i.e., current market prices in the locality. In determining (Loss of owners, renters, sharers, replacement costs, depreciation of assets and residential/institutional/ caretakers) salvage value of materials will not be taken into commercial/income account. generating Owners of public facilities structures/spaces) In the determination of compensation for movable structures including houses, where the structures can be moved easily, transfer, relocation and repair allowances will be calculated. An assessment of material replacement will be made, based on the condition of materials, with valuations calculated based on standard replacement and restoration costs. Permanent Impact to AP who stand to loose Payment for uprooted trees based on market value as Trees and Crops trees and crops assessed by the city agriculturist/assessor (Loss of trees and crops as well income derive from it ) Temporary impacts • APs with Cash or kind compensation for fixed and movable (during construction) improvements of their assets such as houses, pavements, fences structure and other community facilities, farm structures for animals and

physical assets farmers at replacement cost. (Temporary loss of structures and • APs planting crops, Restoration or replacement of a fixed asset I month improvements, productive ornamental plants and after construction of water transmission and assets, such as crops and vegetables on lots to distribution lines, sanitation facilities, reservoirs and trees, and income from be use as water other water facilities. business) sources such as wells Compensation for lost in full or part of residential and other surface structures, community facilities and productive assets water. such as crops and trees, and lost income from • APs with concrete business or wages. driveways and improvements on their properties that will be affected by the project.

VII. CONSULTATION, GRIEVANCES REDRESS, AND DISCLOSURE

A. Consultation and Participation

29. During the project preparatory stage, participation and consultative process for the RP preparation was aimed at increasing opportunities for both men and women to take active roles and responsibilities, harness their capacities and resources in planning, implementation and monitoring in all stages of the RP process. Social preparation prior the survey was conducted such as key information interviews conducted with some officers of

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 14 Supplementary Appendix V

barangay leaders and property owners. Consultation and disclosure activities with land owners were conducted to inform them about the plan of the QMWD to enhance water system and requested their participation in the WDDSP through their response and participation in the survey and inventory of assets/ properties for the project study. It was also discussed that there will be compensation on the temporary disturbance on the affected lands due to diggings and other project activities, however, these lots will be restored accordingly. Should there be permanent losses of structures and improvements and other assets the owners will be compensated at market value. Annex 2 is the public information bulletin that discloses the project description and objectives including potential involuntary resettlement issues of the subproject and in compliance with the ADB policy of providing AP a venue for a meaningful consultation and participation.

30. Consultation and Participation with Affected Owners during RP Preparation. From August - October 2009 intermittently, the PPTA consultant, the QMWD staff, conducted preliminary consultations with the some house/landowners who will incur permanent and temporary losses on land and structures that will be affected by the pipe lying under the QMWD water expansion program. The results of the consultations showed very positive response from the land and house owners. They were briefed about the project and also informed on their entitlements for the temporary disturbance for the owners of houses and structures along the pipe to be installed. The water district will continue to hold dialogue and consultation with the affected people after all the detailed engineering plans have completed in order to determine the actual affected houses and structures.

B. Grievances Redress Mechanism

31. The LWUA will create a Water District Resettlement Committee (WDRC) in QMWD to determine qualified APs, and safeguard their rights. The WDRC is composed of the WD-PIU head as chair, concerned NGOs and the barangay officials and households headed by women as members.

32. The decision of the court is for finality of case resolution. Below are the steps to be followed in filing grievances and the procedures for redress.

Step 1: The complainant provides the background and files the grievance/complaint verbally or in writing to WDRC If unwritten, the WDRC Secretary will put it in writing and will reproduce it in four (4) copies for distribution; the original copy to WDRC, two are for the WD-PIU, and one for file of the complainant. The complainant, WDRC, as well as representatives of PIU will meet to discuss the complaint and resolve it within 15 days.

Step 2: If no solution or understanding is reached, the complainant files the grievance/complaint to the WDRC central desk at the PMO for it to be resolved within 15 days after filing. The written complaint shall be reproduced in four (4) copies; the original to PMO/RC, two for WDPIU, and one for file of the complainant.

Step 3: Again, if no solution or understanding is reached and if the grievance/complaint qualifies for hearing at the Municipal, or Regional Trial Court, the household may request for assistance of the pro bono lawyer from the Public Attorney’s office, through the WDRC. The pro bono lawyer shall assist the household in reproducing the formal complaint in six (6) copies to be distributed as follows; the original to the appropriate court, one each for PMO, PIU, WDRC and for file of the complainant.

Step 4: the Municipal Trial Court (MTC) or Regional Trial Court (RTC) assesses the merit of grievance/complaint, schedules the hearing and renders a decision. Appeals can be elevated to the high court. The Supreme Court’s decision is final and executory.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 15 Supplementary Appendix V

C. Disclosure of Resettlement Plan

33. As per ADB’s Public Communications Policy13, and the social safeguards policy statement on involuntary resettlement, the resettlement planning documents will be disclosed to the APs as follows: (i) Before appraisal – the draft RPs; (ii) After completion of the final RPs – the final RPs; (iii) Following revisions to the RPs as a result of detailed technical design or change in scope of the Project – the revised RPs. The executing and the implementing agency – LWUA and the WD will disclose (i) draft RP prior to submission for review and approval by ADB; final RP approved by the LWUA, WD and ADB, and (iii) any revisions to the RP as a result of change in technical plans and design. The RP will also be uploaded to the implementing agencies’ and ADB website

34. Major information that will be included in the RP for disclosure to APs include: (i) compensation, entitlement, relocation and rehabilitation options, (ii) DMS results, (iii) entitlement and special provisions; (iv) grievance procedures; (v) schedule of payments/replacements of losses; ( vi) relocation and transfer schedule. All information will be made available to WD offices and public information bulletin will be provided to APs in Filipino or language that is easy to understand in the locality where the subproject is situated. Types of information materials include leaflets, brochure and RP prepared for the subproject.

VIII. ETHNICITY and VULNERABILITY

35. This RP acknowledges that specific social groups may be lesser able to restore their living conditions, livelihoods and income levels; and may be, at greater risk of impoverishment when their land and other assets are affected. For the subproject in QMWD, there is no ethnic group or indigenous peoples observed at the subproject. No vulnerable group is also identified because all affected landowners will not lose more than 5% of their asset as effect of the project

IX. INSTITUTIONAL ARRANGEMENTS

36. The overall responsibility of enforcing the QMWD Resettlement Policy, including this RP and its implementation rests with LWUA and the QMWD. A Project Management Unit (PMU) from LWUA as the EA will review and approve the RPs in accordance with the project design and principles. Additionally, the PMU will exercise the overall monitoring and evaluation of the RP updating and implementation for all QMWD as the subproject and they will be assisted by WDDSP project implementation consultants.

37. At the QMWD level, a Project Implementation Unit (PIU) will be established and will be responsible for the RP updating and implementation. A resettlement section within the PIU will be in placed and together work as a team to ensure that the project social safeguards policies contained in the RF/RP are adhered to. The PIU will be responsible of ensuring that sustained efforts will be made to enhance community relationships in the conduct of resettlement activities such as DMS, physical design development and technical verifications, disclosure, preparation and implementation of income restoration program, timely delivery of compensation and entitlement to all APs, act as grievance officers and prepare quarterly resettlement progress reports.

13 This refers to The Public Communications Policy of the Asian Development Bank: Disclosure and Exchange of Information, March 2005.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 16 Supplementary Appendix V

X. MONITORING AND EVALUATION

38. The Project Management Unit (PMU) will develop internal monitoring indicators, procedures and reporting requirements for all subprojects. Periodic reports will be submitted by the PIU to PMO and ADB. Internal monitoring and evaluation of the RP implementation will jointly be undertaken by the LWUA and the QMWD. It addresses the degree to which the resettlement activities have achieved in harmony with civil works schedule; it allows the subproject proponent to assess its accomplishments and their desired outcomes. A quarterly monitoring report to the executing agency/borrower will be submitted at the start of RP implementation and other updating activities. The EA/borrower will in turn include updates on resettlement activities to its regular progress reports to ADB. Monitoring reports on resettlement and social impact will be available for the affected households and will be submitted to ADB for website posting.

39. The external monitoring and evaluation activities, which will be undertaken by an independent agency, will be conducted to verify the results of the internal monitoring activities and evaluate whether the objectives of the resettlement plan were met. Both qualitative and quantitative methods will be used in the process. This will give an independent assessment on the achievements of the resettlement objective, as well as the effectiveness and sustainability of entitlements, and the need for supplementary mitigating measures. The lessons learned in the RP implementation will be drawn from the monitoring and evaluation activities and will serve as guide for future policy formulation in resettlement planning. The independent monitoring group will also conduct semi-annual reviews for the entire duration of the resettlement implementation and during the end-of-project evaluation.

40. Table 4 discusses relevant indicators for monitoring the project including the APs participation in the monitoring and evaluation process.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 17 Supplementary Appendix V

Table 4: Indicators for External Monitoring Type of Indicators Information Required in Monitoring and Evaluation Indicators • Number of Water district staff assigned for Resettlement Plan Staffing implementation. • Number of Social Development and Resettlement Specialist assigned by PMO. • Number of consultations and participation programs held with Consultation, APs and various stakeholders. Participation, • Types of PIBs distributed to APs. and • Number and types of grievances received from APs and the Grievances number of days consumed in resolving them by concerned Resolution GRCs. • Number and names of representatives of community and APs who participated in the consultations and in RP implementation. • Reporting and feedback mechanism in placed. • Types of forms used in recording the activities undertaken in RP implementation. • Efficiency of coordination with PMO, PIU, APs and other Operational institutions. Procedures • Type of database being maintained. •

Process Indicators Efficiency of PIU and Water District staff. • Efficiency of compensation and disbursement payment system. • Adequacy of logistical support for implementing the RP. • Asses if the project policies in RP have adequately been complied with. Issues and • Indicate the issues and problems encountered in staffing, Problems during consultations and grievances resolution, and in the Encountered execution of operational procedures. • Indicate number of consultations conducted to resolve issues and problems pertinent compliance of the WD in the provisions of the RP. • Household Indicate the actual number granted applications for water Water connection. • connection Indicate the amount of monthly payments that shall be paid by beneficiaries. • Indicate the frequency of information received by the APs as regard access to water connection. • Indicate number female headed households benefiting the water connection. • Indicate number of households. • Number of APs availed individuals’ water connection. • Indicate if the type of payment either one time or installment;

OutputIndicators • Indicate if the APs who are engaged in micro business that Compensation were affected and were compensated for their temporary loss and of business incomes due to project construction. Entitlement • Indicate record of disbursements and acceptance of APs of their entitlement.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 18 Supplementary Appendix V

XI. IMPLEMENTATION SCHEDULE

41. The propose subproject in QMWD will commence by the second quarter of 2012. Construction may start in quarter 3 of 2012. Table 5 presents the proposed implementation schedule for the resettlement activities of the subproject.

Table 5: Resettlement Plan Implementation Schedule Activities Year 1 Year 2 Year 3 2012 2013 2014

Detailed Design Q 2 RP updating Q 2 Consultation , Social Preparation Q 2 Validation of Affected Persons/Households Q 2 Finalize project entitlements, budget Q 2 Disclosure of key information on draft Updated RP Q 2 Grievance and redress Q 2 Finalize Updated RP Q 2 Review and Approval of Updated RP Q 2 • Adoption of RP by the Municipal Council Q 2 • Review and concurrence of RP by ADB Update RP Implementation Q1 Consultation and Disclosure Q1 Provision of project compensation Q1 Provision of project assistance Q1 Grievance Redress Q2 Q1 to Q4 Q1 to Q4 Monitoring Q2 Q1 to Q4 Q1 to Q4 • Internal (quarterly Q2 Q1 to Q4 Q1 to Q4 • External (semi- annual) Q2 to Q4 • Civil works Q2-4 Q1 to Q4

XII. COST ESTIMATES AND FINANCIAL PLAN

A. Cost Estimates

42. The Resettlement Plan for QMWD Subproject will require a total budget of PhP 4,082,650.00. Table 6 presents the proposed budget for the RP, with the details of cost items for funding by the QMWD. A ten percent (10%) contingency will be added to each of the items to accommodate increases in prices of goods and services.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 19 Supplementary Appendix V

Table 6: Resettlement Plan Financial Plan and Budget Total (PhP) Category Cost Items Unit Cost Total 1. Resettlement social • Information and preparation prior RP dissemination/meetings, focus group 1,500/AP 61, 500 implementation discussions a part of the social for preparation activities for land owners 41 APs and caretakers as APs and households affected by water pipe laying and water reservoir • Information regarding the updated RP including APs entitlement and project assistance. • Activities to Update RP 2. Compensation for residential Tayabas Upper 2- Residential 35,000 – commercial affected assets Tayabas Lower – 18 Residential 1,427,00 3,260,000 owners that will have Commercial – 3 - Commercial 310,00 temporary losses on Lucena City – 21 Residential 1,727,00 structures, pavements, fence 1,488,00 and other improvements. Cash payment to affected land and structure owners and caretakers with driveways and pavements, structures and trees. Cost of compensation was computed at current market rate based on construction cost and replacement.

3. Cost of trees affected by pipe Cost and type of tree estimates were 50,000 50,000 laying, pump houses and based on the estimates of the city reservoirs engineer’s office and city agriculturist of Quezon Metro WD. Fruit trees, coconut and shrubs 1. Administrative Costs • Salaries and Wages PhP20,000 240,000 (Project • Operating Expense /month Management ) • Monitoring X12 months

6. External Monitoring and • Salaries and Wages 2 sets at 100,000 Evaluation • Operating Expenses P50,00/ • Survey (Monitoring and Post- set evaluation) Sub- total • 3,711,500.00 Contingency of 10% 371,150.00

4,082,650.00 Total in Pesos $ 90, 725.55 Total in Dollar Source: Local costs and consultants estimates * Estimated amount is also included in the project cost

B. Funds Flow and Disbursement of Compensation

43. The LWUA- QMWD as borrowers for this project will ensure the timely delivery of budget for implementation of resettlement activities. All compensation in cash or kind any form of payments will be prepared by the PIU and the finance office of the QMWD. A compensation schedule chart approved by LWUA- QMWD with disbursement will be undertaken before the project construction. Funds disbursement procedures to all affected

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 20 Supplementary Appendix V

households will follow the new accounting rules and regulations of the Philippine government. The PIU in coordination with the budget and finance office of the QMWD will process the necessary documents for disbursements of project assistance stipulated in the RP. The affected persons will sign the compensation/replacement/and or project assistance forms as proofs of receiving the resettlement compensation and assistance.

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 21 Supplementary Appendix V

ANNEX 1: SUMMARY OF INVENTORY OF LOSSES SURVEY – QMWD

Description of Other Affected Profile of Affected Household Income/Expenditure Affected Structures Assets Res Estimated Number Estimated Estimated Estimated Lot Estimated Value Estimated pon HH with Status of number of Area Name of HH Head Gender of HH Monthly monthly Description of Affected Assets size and of Structures Value of dent Disability Occupancy affected crops Members Income Expenditure price Affected trees/crops No. and trees Tayabas Upper 1 1 Vicente Oabel M 5 n/a 9,500 15,250 Pavement 5 sq m 5 12,500 n/a n/a n/a Tayabas Upper 2 2 Nieves Dadios M 6 n/a 6,000 14,800 Terrace 1 sq m 1 22,500 n/a n/a n/a Tayabas Lower 44 3 Rick Queano M 4 n/a 6,000 7,273 Frontage 4 sq m 4 40,000 owner n/a n/a Tayabas Lower 45 4 Menchie Salibo F 0 n/a 4,000 8,667 Frontage 8 sq m 8 80,000 owner n/a n/a Tayabas Lower 46 5 Lucia Mabuti F 2 n/a 2,000 3,750 Frontage 4 sq m 4 40,000 owner n/a n/a Tayabas Lower 47 6 Cornelio Mabuting M 7 n/a 5,000 2,810 Frontage 4 sq m 4 40,000 owner n/a n/a Tayabas Lower 48 7 Edgardo Quintero M 5 n/a 8,000 7,447 Frontage 4 sq m 4 40,000 renter n/a n/a

house owner/renter Tayabas Lower 49 8 Ricardo Enriquez M 6 n/a 10,000 11,115 Frontage 4 sq m 4 40,000 of the lot n/a n/a Tayabas Lower 50 9 Junicio Eclavea M 6 n/a 45,000 26,493 Business Stall 15 sq m 15 150,000 owner n/a n/a Tayabas Lower 51 10 Flaridel Quino M 6 n/a 3,000 13,250 Frontage 4 sq m 4 40,000 owner n/a n/a Tayabas Lower 52 11 Rommel Lado M 6 n/a 20,000 15,333 Business Stall 16 sq m 16 160,000 owner n/a n/a Tayabas Lower 53 12 Juanito Cabriga M 2 n/a 10,000 7,033 Pavement 12 sq m 12 120,000 owner n/a n/a Tayabas Lower 54 13 Vivian Eclavea F n/a Business Stall/Restaurant caretaker n/a n/a Tayabas Lower 55 14 Ferlido Alpay M 4 n/a 7,000 22,652 Frontage 15 sq m 15 150,000 caretaker n/a n/a house owner/lot is government Tayabas Lower 56 15 Celso Francia M 3 n/a 4,000 661 Residential structure 12 sq m 12 120,000 property n/a n/a Tayabas Lower 57 16 Emerico Salameda M 7 n/a 30,000 21,067 Frontage 30 sq m 30 300,000 owner n/a n/a House owner/ lot is Tayabas Lower 58 17 Pascual Valencia M 6 n/a 16,000 27,983 Driveway 15 sq m 15 15,000 rent to own n/a n/a Tayabas Lower 61 18 Reynaldo Zeta M 5 n/a 45,000 8,990 Frontage 30 sq m 30 300,000 renter n/a n/a Tayabas Lower 62 19 Luminada Sayas F 5 1 25,000 12,520 Pavement 12 sq m 12 12,000 owner n/a n/a house owner/lot is government Tayabas Lower 63 20 Mario Marciano M 3 n/a 3,000 3,485 Residential structure 9 sq m 9 90,000 property n/a n/a Lucena City 72 21 Andrea Gadia F 7 n/a 7,000 9,558 Driveway 5 sq m 5 5,000 owner 1 calamansi n/a Lucena City 73 22 Rymarth Daleon M 2 n/a 18,000 5,598 Wood fence 6 sq m 6 10,000 owner n/a n/a Lucena City 74 23 Eudalia Tadiosa F 7 n/a 26,000 9,865 Wood fence and barbed wire 8 sq m 8 8,000 owner n/a n/a Lucena City 75 24 Roxanne Orgina F 5 n/a 300 927 Wood fence and barbed wire 5 sq m 5 5,000 caretaker n/a n/a Lucena City 81 25 Edwin Subeldia M 4 n/a 2,000 2,907 wood fence 7 sq m 7 70,000 owner n/a n/a Lucena City 84 26 Antonio Zubeldia M 5 n/a 300 3,062 Side of the building 3 sq m 3 30,000 owner n/a n/a Lucena City 85 27 Angelina Ramos F 8 n/a 8,000 4,820 Concrete 6 sq m 6 60,000 owner n/a n/a Lucena City 86 28 Junior Romillo M 9 n/a 5,000 24,572 wood fence and plants 8 sq m 8 80,000 owner n/a n/a Lucena City 87 29 Ramon Rejano M 10 n/a 45,000 41,500 Concrete gutter and frontage 12 sq m 12 120,000 owner n/a n/a Lucena City 88 30 Jerry Japor M 15 n/a 30,000 28,500 Fence and property line 12 sq m 12 120,000 owner n/a n/a Lucena City 89 31 Patrocinio E. Diala M 5 n/a 5,000 4,000 Conrete gutter and frontage 7 sq m 7 70,000 owner n/a n/a Lucena City 90 32 Usefio Alcantara M 5 n/a 3,000 3,000 Fence and property line 25 sq m 25 250,000 caretaker n/a n/a

Lucena City 91 33 Melinda Pionilla F 3 n/a 2,500 2,200 electric meter post and property line 10 sq m 10 50,000 owner n/a n/a Lucena City 92 34 Wilfredo Lusterio M 3 n/a 5,500 5,500 Concrete gutter and frontage 10 sq m 10 100,000 owner n/a n/a Lucena City 93 35 Aufamia Murillo F 3 n/a 9,000 5,000 Concrete gutter and frontage 6 sq m 6 60,000 caretaker n/a n/a Lucena City 94 36 Ramil Araullo M 4 n/a 5,000 7,155 wood fence and plants 9 sq m 9 90,000 owner n/a n/a Lucena City 95 37 Marlon Aguilar M 2 n/a 3,000 5,798 Fence 5 sq m 5 50,000 owner n/a n/a Lucena City 96 38 Corazon Molon F 2 n/a 3,500 7,845 Concrete fence 15 sq m 15 150,000 caretaker n/a n/a Lucena City 97 39 Annie Calapit M 4 n/a 9,000 15,220 Front of the House 5 sq m 5 50,000 owner n/a n/a Lucena City 98 40 Ellen Macatanay F 5 n/a 7,000 5,396 Side of the house 6 sq m 6 60,000 owner n/a n/a Lucena City 101 41 Recardo Falcon M 4 n/a 2,000 3,765 concrete fence 5 sq m 5 50,000 owner n/a n/a

Total Estimated Losses 379 sq m 379 3,260,000

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 22 Supplementary Appendix V

ANNEX 2: PROJECT DISCLOSURE - QMWD

Part 1:

1. Purpose of the public meeting/consultation. Thank you very much for your attendance. There are two reasons why we have invited you to this public meeting. First, is to establish the basis for the formulation of policies and guidelines in the ongoing study on Water District Development Sector Project (WDDSP) and get the opinions of various stakeholders particularly the opinions of affected persons/households (AP). And second, is to comply with the provision of the law that there should be consultation with the community to obtain their opinions before any project is implemented by the concerned government agency.

2. The need to know issues and constraints. – The issues and constraints encountered by the stakeholders and the APs in their community should be disclosed, as these are the basis for formulating the policies and plans for WDDSP Subprojects. For this subproject, community issues vary from each other and they have their own individuality. For example, water sources or water service distribution could be a problem in your community, while it could be another problem in other community. What we want to know in this public meeting are the issues concerning water service and sanitation service delivery in your community particularly related to specific issues such quality, efficiency and tariff.

3. People’s awareness on WDDSP in your locality. – What this public meeting/consultation also wants to know is if you are aware if there is a subproject is being initiated, and or for implementation by the Water District or any government agency in partnership with LWUA and other concerned agencies including the private sector. If there is a project being promoted or implemented in your locality, kindly mention what this project is and why do you think it is appropriate to your community.

Open Discussion (30 minutes)

Part 2: WDDSP: PROJECT INFORMATION BULLETIN (PIB)

Frequently Asked Questions:

4. Question: What is the Water District Development Sector Project? (WDDSP)

Answer:

• WDDSP is a national government project of LWUA that will be implemented nationwide with the objective of uplifting the quality of water and sanitation services for the Cities and Municipalities outside the Metro Manila areas. A project preparatory technical assistance study (PPTA) for LWUA and the initial 5 pilot WDs will be undertaken. It will formulate a sector investment project (WDDSP) in the water supply and sanitation sector with funding from ADB and other investment sources. Based on the financial planning budget of ADB, the scope of the initial phase of the Project will cover a short-list of up to five pilot water districts (WD),namely: Metro La Union Water District, La Union Province, Luzon; Quezon Metro Water District, Quezon Province, Luzon; Legazpi City Water District, Albay Province, Luzon; Leyte Metro Water District, Leyte Province, Visayas;; City of Koronadal Water District, South Cotabato province, Mindanao and a long-list of WDs will be identified for implementation under subsequent phases. It will also

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 23 Supplementary Appendix V

undertake a preparation of implementation support and institutional development programs addressing sector reform, governance and public awareness.

• It will be implemented by the Local Water Utilities Administration (LWUA) and the Water Districts. The ADB provided grant for Technical Assistance (TA) in the subproject preparatory study and eventually a loan facility for the implementation of the project. The WDDSP consists of two components: (i) Infrastructure Investments that will cover all WDs nationwide; (ii) Institutional Capacity Development and Sector Policy Reform component. The intended impact of the Project is to improve water and sanitation service delivery by WD throughout the Philippines. The targeted outcomes of the Project are the increase in quality, coverage and reliability of water and sanitation services, improved infrastructure facilities and sustainable water sources, and an improved institutional capacity of WDs to manage and undertake development of sustainable water services.

5. Question: What are the key concerns/issues and activities to be addressed by the Water District Development Sector Project? (WDDSP)

Answer: • Scope of subproject, in view of future population and water demand. • Non-revenue water. • Sanitation component (septage management). • Social and environmental safeguards. • Political/stakeholder support • Water resources assessments • Water supply audits • Sanitation audits • Social/ Resettlement risks assessments and mitigations • Socioeconomic survey and poverty analysis • Subproject community consultations and focus group discussions • Subproject environmental assessments and public consultations • LWUA/WD capacity building, training needs assessments

6. Question: What is the plan of the Water District for the Affected Persons/ Households of the Project?

Answer: • A Resettlement Plan (RP) will be prepared for all the affected persons/households (if applicable to the subproject) to ensure that there will be no persons/households worse off due to the project.

• The Resettlement Plan will be based on Philippine laws and statues on resettlement and in the ADB’s policy on Involuntary Resettlement. The aim of ADB Policy on Involuntary Resettlement is to avoid or minimize the impacts on people, households, businesses and others affected by the acquisition of land and other assets, including livelihood and income. Where resettlement is not avoidable, the overall goal of the ADB policy is to help restore the living standards of the affected people to at least their pre-Project levels by compensating for lost assets at replacement costs and by providing, as necessary, various forms of support.

Open Discussion (30 Minutes)

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 24 Supplementary Appendix V

ANNEX 3: CONSULTATION ATTENDANCE – QMWD

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD 25 Supplementary Appendix V

TA No. 7122-PHI: Water District Development Sector Project PPTA – FR – RP QMWD