Japan International Cooperation Agency PREPARATORY SURVEY FOR METRO MANILA SEWERAGE AND SANITATION IMPROVEMENT PROJECT- PHASE-2 FINAL REPORT VOLUME1 JULY 2011 OEC ORIGINAL ENGINEERING CONSULTANTS CO., LTD. SAP CR(3) 11-043 PROJECT STUDY AREA MAP EXECUTIVE SUMMARY LIST OF TABLES LIST OF FIGURES LIST OF ANNEXES MEASUREMENT UNITS ABBREVIATIONS TABLE OF CONTENTS VOLUME 1 1 INTRODUCTION 1-1 1.1 Project Background 1-1 1.2 Project Objectives 1-2 1.3 Scope of Preparatory Service 1-2 1.4 Basic Policy of Work Implementation 1-3 1.4.1 The Project Coverage Area 1-3 1.4.2 Current Conditions in the Project Area 1-7 1.4.3 Priority of Work Implementation 1-12 2 DESCRIPTION OF THE PROJECT TARGET AREA 2-1 2.1 Parañaque City 2-1 2.1.1 Brief History 2-1 2.1.2 Physical and Environmental Profile 2-1 2.1.3 Demographic Profile 2-2 2,1,4 Social Sector Profile 2-3 2.1.5 Infrastructure Sector 2-4 2.1.6 Land Use 2-6 2.1.7 Economic Profile 2-7 2.2 Las Piñas City 2-9 2.2.1 Brief History 2-9 2,2,2 Physical and Environmental Profile 2-9 2.2.3 Demographic Profile 2-10 2.2.4 Social Sector Profile 2-11 2.2.5 Infrastructure Sector 2-13 2.2.6 Land Use 2-13 2.2.7 Economic Profile 2-14 2.3 Cavite City 2-16 2.3.1 Brief History 2-16 2.3.2 Physical and Environmental Profile 2-16 2.3.3 Demographic Profile 2-17 2,3,4 Social Sector Profile 2-18 2.3.5 Infrastructure Sector 2-19 TOC-1 2.3.6 Land Use 2-21 2.3.7 Economic Profile 2-21 2.4 City Plans Related to the MMSSIP 2-25 3 SANITATION CONDITIONS IN THE PROJECT AREAS 3-1 3.1 Sewerage and Sanitation Facilities 3-1 3.2 Household Sanitation Facilities and Excreta Disposal Method 3-2 3.2.1 Household Sanitary Toilets 3-2 3.2.2 Types of Household Sanitation 3-2 3.2.3 Public Toilets 3-3 3.3 Biosolids Management 3-4 3.4 Recycled Wastewater 3-4 3.5 Sanitation Coverage 3-4 3.5.1 Desludging Services 3-4 3.5.2 Sewerage and Sanitation Programs 3-5 3.5.3 Sewerage and Sanitation Projects 3-5 3.6 Drainage and Flood Control Facilities 3-6 3.6.1 Main Rivers and Creeks in the Areas 3-6 3.6.2 Flood Prone Areas 3-7 3.6.3 Flood Control Facilities 3-7 4 WATER SUPPLY SERVICES 4-1 4.1 Service Area and Population Served 4-1 4.2 Water sources for those Not Connected to the System 4-1 4.3 Description of Physical Facilities 4-1 4.4 Service Connections and Metering 4-2 4.5 Cost of Water and Water Tariff 4-2 4.6 Water Accountability 4-5 4.7 Proposed Improvement Programs 4-5 4.8 MWSI Activities for NRW Reduction 4-5 5 BASIC STRATEGY AND STUDY CONCEPTION 5-1 5.1 Past Master Plans and Latest Survey Reports for MWSS Sewerage 5-1 System 5.2 Basic Strategy of Development of the Business Plan for Sewerage 5-4 Services 5.3 Basic Conception of Sanitation and Sewage Treatment Systems 5.6 5.3.1 Appropriate Share of the Services by Septage and Sewage Management Systems 5-6 5.3.2 Parameters for Sanitation and Sewerage Projects 5-7 5.3.3 Design Conception for the Sanitation and Sewerage System Improvement 5-15 5.4 Combined Sewer System Application 5-16 5.5 Substantial Methodology of the Combined Sewerage System 5-22 5.5.1 Conversion Manhole 5-23 5.5.2 Manhole Pump and Intermittent Pumping Station 5-27 5.5.3 Sewage Treatment and Management System 5-28 5.6 Installation Interceptors and Conversion Manholes 5-29 TOC-2 6 AVAILABLE SEWERAGE AND SANITATION TECHNOLOGY 6.1 Available Sewerage Management Technology 6-1 6.1.1 Basic Technological Strategy 6-1 6.1.2 Range of Applications for Sanitation Technology 6-1 6.1.3 Options for On-site Excreta Disposal 6-4 6.1.4 Options for Wastewater Collection and Conveyance 6-7 6.1.5 Options for Wastewater Treatment and Disposal 6-12 6.1.6 Determination of Needs for Sanitation and Sewerage 6-24 6.2 Available Sewerage Sludge Management Technology 6-26 6.2.1 Sewage Sludge Treatment System 6-26 6.2.2 Form of Sludge Final Disposal 6-69 6.3 Sewage Treatment Plant Operation and Maintenance System 6-75 6.3.1 Sewage Treatment Plant Operation 6-75 6.4 Sewage Sludge Effective Utilization 6-120 6.4.1 Compost 6-120 6.4.2 Construction Materials from Melting 6-125 6.4.3 Sludge-Digestion Gas Utilization 6-132 7 FACT FINDINGS AND EVALUATION OF INITIAL SITE 7-1 SURVEY 7.1 Waterways and Wastewater Discharging 7-1 7.1.1 Wastewater Flow 7-1 7.1.2 Wastewater Outfall Locations 7-1 7.1.3 Tidal Situations 7-8 7.1.4 Current Water Quality Conditions 7-8 7.2 Sub-basins and Water Flow Rate 7-24 7.2.1 Sub Basins and Sub-sub Basins 7-25 7.2.2 Population in Each Sub Basins 7-25 7.3 Site Candidate for Sewage Treatment Plants 7-32 7.3.1 Site Candidate Locations and Features 7-36 7.3.2 Interceptor Installation Plan 7-51 7.4 Over Flood Situations 7-56 7.4.1 Interview to MMDA 7-56 7.4.2 Interview to Site Residents 7-60 VOLUME 2 8 RECOMMENDABLE PROGRAMS OF SEWERAGE AND 8-1 SANITATION IMPLEMENTATION PLAN 8.1 Needs for Sewerage and Sanitation Improvement Project 8-1 8.1.1 Project Target Area Status in Metro Manila 8-1 8.1.2 Pollution Load and Hygienic Concerns in Project Areas 8-2 8.1.3 Needs of Implementing Sewerage and Sanitation Systems 8-4 8.1.4 Necessity /Justification for Japanese Technical Grant 8-4 8.2 Applicable Alternatives of Project Recommended for Target Areas 8-5 TOC-3 8.2.1 Population Projection 8-5 8.2.2 Organization of sewage Treatment Plants 8-7 8.2.3 Applicable Sewage Treatment Process to Each Site Candidate 8-25 8.2.4 Comparison of Applicable Sewage Treatment Processes 8-26 8.2.5 Applicable Sewage Sludge Treatment Process 8-30 8.2.6 Sewerage Treatment System Implementation Project 8-61 8.3 Recommendation of Implementation Plan of Sewerage System 8-66 Project Components 8.3.1 Project Description 8-66 8.3.2 Land Acquisition Plan 8-66 8.3.3 Breakdown of Project Cost Estimates 8-74 8.3.4 Project Scope 8-75 8.3.5 Project Implementation Plan 8-75 8.3.6 Contract Package 8-85 8.3.7 Organization of Project Implementation 8-86 8.4 Conceptual Designs 8-93 8.4.1 Technical Specifications 8-93 8.4.2 Project Design Drawings 8-95 8.4.3 Least Cost Study of Project Facility Construction 8-95 9 SUB PILOT PROJECT ENHANCING THE MAIN 9-1 PROJECT ACTIVITIES 9.1 Supporting Program for Hygienic Improvement of Poverty 9-1 9.2 Families 9-2 River Cleaning Activity Plan 9.2.1 Solid Waste Management 9-2 9.2.2 River Dredging Activities 9-5 9.2.3 Educational Programs 9-10 9.2.4 Onsite Treatment and Dredging Program 9-14 9.3 Promoting Sewerage System Development 9-14 9.3.1 Educational Plant Tour Program 9-15 9.3.2 Water Park in Sewerage Treatment Plant 9-15 10 Mitigation Measures of Climate Change integrated in the 10-1 Project 10.1 Sewage Sludge Generation Rate 10-1 10.2 Sludge Digestion Gas Generation Rate 10-2 10.3 Sludge Digestion Gas Power Generation 10-3 10.3.1 Current Conditions of Digestion Gas Power Generation 10-3 10.3.2 Digestion Gas Generation Rate 10-4 10.3.3 Types and Features of Power Generation Systems 10-7 10.3.4 Gas Engines and Micro Gas Turbines Composition for Digestion Gas Power Generation 10-9 10.3.5 Digestion Gas Fuel Cells 10-10 10.4 Prediction of Optimistic Digestion Gas Volume Generated in 10-11 MWSS Jurisdiction Areas 10.4.1 Projection of Population in MWSS Service Area 10-11 TOC-4 10.5 Effectiveness as Mitigation Measure against Climate Change by 10-13 Sludge Digestion 10.5.1 Total Reduction of Greenhouse Gas predicted (Optimistic) 10-13 10.5.2 CDM Application of Sewerage Treatment System 10-15 10.5.3 CDM in the Philippines 10-17 10.5.4 Possibility of CDM Application of the Project Components 10-21 11 CAPACITY BUILDINGS 11-1 11.1 Institutional Study 11-1 11.1.1 Operation and Maintenance System 11-1 11.1.2 Institutional Study of MWSS and MWSI/MWCI 11-89 11.2 Training and Education Program 11-100 12 UPDATING THE LATEST MASTER PLANS OF MWSS 12-1 AND MWSI 13 FINANCIAL –ECONOMIC ANALYSIS 13-1 A FINANCIAL CAPACITY AND FINANCIAL VIABILITY ANALYSIS 13-1 13.1 Financial Capacity Assessment 13-1 13.1.1 The Maynilad or MWSI (Maynilad Water Services, Inc.) 13-1 13.1.2 Commitments and Obligations relative to the Concession 13-2 Agreement 13.2 The MWSI Organizational Structure 13-3 13.2.1 Finance 13-3 13.2.2 Operations 13-3 13.3 The Proposed Investment 13-4 13.3.1 Investment (Capital or CAPEX) and Operating (OPEX) Costs 13-4 13.3.2 Investment (Capital) Plan 13-7 13.3.3 Impact on Tariff and Projected Revenues by Phase and Overall 13-7 Project 13.3.4 Financing Plan for the Proposed Investment 13-9 13.3.4.1 Possible Financing Schemes/Options 13-10 13.3.4.2 Terms and Conditions for the Two Possible Financing 13-17 Schemes/Option 13.4 Results of the Financial Viability Analysis 13-18 13.5 Possible Implementation Arrangement 13-19 B ECONOMIC VIABILITY ANALYSIS 13-24 13.6 Affordability to Pay for the Services 13-24 13.7 Corporate Social Responsibility (CSR) of the Maynilad (MWSI) 13-25 13.8 Results of the Economic Cost-Benefit Analysis 13-26 13.8.1 Projected Economic Benefits of the Project 13-26 C CONCLUSION AND RECOMMENDATIONS 13-29 14 ENVIRONMENTAL ASSESSMENT 14-1 14.1 Proposed Environmental Improvement 14-1 14.2 Project Setting … 14-2 14.2.1 Needs Analysis 14-2 14.2.2 Goals and Objectives 14-2 TOC-5 14.2.3 Project Impact Area 14-3 14.3 Significant Environmental Baseline Information … 14-3 14.3.1 Geology 14-3 14.3.2 Land Use 14-4 14.3.3 Air Quality 14-7 14.3.4 Hydrology 14-8 14.3.5 Water Quality 14-11 14.3.6 Flora and Fauna 14-12 14.3.7 Cultural Heritage … 14-13 14.3.8 Indigenous People 14-13 14.3.9 Informal Settlers 14-13 14.4 Project Implementation 14-13 14.4.1 Pre-Construction Phase 14-13 14.4.2 Construction Phase 14-14 14.4.3 Post-construction Operation Phase 14-14 14.5 Prediction of Impacts 14-15 14.5.1 Positive and Negative Impacts 14-15 14.5.2 Socio-economic Benefits