Project Proposal:
Development and Implementation of Investment
Opportunities in the East Asian Seas Region
by the
GEF/UNDP/IMO Regional Programme on Partnerships in
Environmental Management for the Seas of East Asia
(PEMSEA)
Background:
The formation of PEMSEA (i.e., the GEF/UNDP/IMO Regional Programme on Building
Partnerships in Environmental Management for the Seas of East Asia) evolved from the
increasing realization of the magnitude and complexity of the environmental problems in
the East Asian Seas region and the need to mobilize collective efforts, resources and
skills of all sectors and interest groups through genuine partnerships.
PEMSEA's geographical scope covers that of the East Asian Economy (ASEAN + 3).
PEMSEA's objective is to establish a multi-country, multi-sectoral shared vision for the
Seas of East Asia, along with supporting strategies and environmental action programs
for attaining that vision. PEMSEA activities focus on:
a) enabling local governments to effectively manage coastal and marine resources
and their environment through strengthening local capacity in integrated planning
and management of their coastal areas in collaboration with civil society and
other stakeholders;
b) promoting multi-country and multi-agency cooperation in managing subregional
sea areas and marine pollution hotspots through shared visions, strategic
management plans and common action programs;
c) developing management related methodologies, techniques, working models,
and standards to strengthen practical efforts in the field;
d) providing policy support and scientific advice to the decision-makers;
e) identifying and demonstrating the synergies and linkages between related
international environmental instruments and facilitating their integrated
implementation, and
f) creating environmental investment opportunities, sustainable financing
mechanisms and institutional arrangements for implementing marine
environment related international conventions and action programmes.
PEMSEA's Approach
A major component of PEMSEA is the development and promotion of investment
opportunities in environmental improvement and management through partnerships
between the public and private sectors. PEMSEA's approach includes:
a) establishing a suitable environment for investment at the national and local
levels, by setting in place institutional arrangements (e.g., supporting policies
and regulations; enforcement capabilities; strategic environmental management
plans; delineation of roles and responsibilities of major players), formulating
issue-specific and area-specific action programmes with local partners, and
building consensus among stakeholders on the values and benefits of changing
existing behaviour;
1
b) identifying priority environmental facilities and services that address the shared
vision of stakeholders, affordability, and compatibility with social, cultural and
economic characteristics of the site;
c) packaging investment opportunities, taking into account existing operations,
capacities, needs and shortfalls, including stakeholders' willingness-to-pay for
desired changes;
d) promoting investment opportunities to local, national and international
companies, investors and other interested parties with the appropriate
technology, expertise and financial capacity to partner with the local
stakeholders; and
e) bringing the two parties together into a partnership.
In identifying investment options Table 1: Governments' Objectives in Seeking
and the role of the private sector
Partnerships with the Private
in such investments,
Sector
governments are required to
select a financing mechanism
· Bring technical and managerial expertise
that is most suited to local
and new technology;
conditions and offers the best
· Inject investment capital or gain access to
delivery system. Table 1 lists
private capital markets;
some basic objectives of
· Improve economic efficiency in both
governments when seeking the
operating performance and the use of
involvement of the private sector
capital investment;
in environmental management:
· Reduce public subsidies and/or increase
Public-private partnership (PPP)
public revenues;
is the investment arrangement
· Provide long-term incentives for pol ution
being promoted by PEMSEA in
abatement and efficient use of resources.
the sites where it is applicable.
Under PPP, the public entity
forms a joint venture with a
private partner where both have an equity position in the new organization, assume co-
ownership and co-responsibility, and share the risks as well as the rewards.
PEMSEA's Project Sites
PEMSEA is working in four subregional sea areas/pollution hotspots (i.e. Malacca
Straits; Gulf of Thailand; Manila Bay; and Bohai Sea), as well as in ten integrated coastal
management (ICM) projects (i.e., Sihanoukville, Cambodia; Xiamen, China; Nampo,
DPR Korea; Bali, Indonesia; Klang, Malaysia; Batangas, Philippines; Shihwa Lake, RO
Korea; Chonburi, Thailand; and Danang, Vietnam). Another eight ICM projects will be
developed and implemented over the next three and a half years.
The management frameworks that are being applied at each project site are designed to
strengthen political will, improve public sector know-how and heighten civil society
awareness and ownership in developing and managing marine and coastal resources.
By institutionalizing self-sustaining environmental management programmes, PEMSEA
is addressing a major issue of investors political risk.
Political risk is one of the greatest constraints to investment by the private sector in the
developing world due to a real or perceived lack of political will, uncertainties over
2
project commitment, corruption, and poor transparency of process. The advantage of
PEMSEA's procedure in developing investments is that political will and, subsequently,
governmental commitment to a transparent process, are established prior to detailing
investment opportunities. The public sector must invest time, effort and resources in
creating a suitable environment for investment before packaging and promoting the
investment opportunities to potential partners.
Figure 1: Public-Private Partnership Process in the East Asian Seas
Stage 1: Awareness and Consensus Building
Local Government
Coastal Profile
NGOs
Strategic Management Plan
Action Plan
Central Agencies
Industry
Private Sector
PPP
No
Potential
Other Mechanisms
Yes
Institutional Strengthening
Financial/Economic Appraisal
Pre-feasibility Studies of
Potential Investment
Administrative Arrangements
Technical/Service
Opportunities
Investment Strategies
Capacity & Options
Local Stakeholder Consensus
Other Mechanisms
No
Stage 2: Packaging and Promoting Opportunities
Letter of Intent
PPP Process
Opportunity Briefs
Intergovernmental
Financial Institutions
Private Operating Companies
Commercial Banks
Venture Capital Groups
Investors'
Round
Donors and Trade
Table
Local Stakeholders
Development Agencies
(Public & Private Sectors)
Private Investors
Stage 3: Developing the Partnership
Procedure for
Expression
Private Partners
Project Documents
of Interest
Selection
Design, Construction, Operation
MOA (Project
and Financing of Facility
Operating Company)
Source: Ross (1999). "Implementation of Public-Private Partnerships: Batangas Case Study," In Chua Thia-
Eng and N. Bermas (eds.). Challenges and Opportunities in Managing Pollution in the East Asian Seas.
How does this approach benefit the private sector from a business perspective? Some
of the advantages include:
· Up-front costs for the preparation of project proposals and/or competitive tenders
are substantially eliminated;
· The cost of entry into partnership with the local parties is the investment in a
feasibility study. The feasibility study is the basis for future decision-making and
negotiation between partners;
· Project development, planning, approval and financing are shared
responsibilities;
· Innovation in planning and design, well-managed construction, effective
budgetary control, timely delivery and efficient facility operation result in rewards
to both parties; and
3
· Contributions of local capital by local partners minimize foreign exchange risk.
Investment Opportunities
Investment opportunities have been identified at PEMSEA sites as a consequence of:
a) a series of consultations with local stakeholders to create a shared vision and coastal
strategy at each location; and
Environmental Investment Opportunities in
b) the conduct of environmental risk
the Bohai/Yellow Sea and the South China
assessment, to identify and build
Sea Large Marine Ecosystems
consensus on priority issues
1. Bohai Sea Subregion:
regarding protection and
management of marine and
· Municipal wastewater treatment facilities,
coastal ecosystems, human
including recycling/reuse provisions (US$ 2.1
health in coastal communities and
billion)
the general well-being of the local
· Municipal solid waste (US$ 540 million)
society.
· Industry refurbishment/upgrading
· Off-shore exploration/production facilities
Outputs from these two processes
upgrading
are summarized for four PEMSEA
· Port development/upgrading, including shore
sites in Appendix A. Overviews of
reception facilities
investment opportunities, specifically
the facilities and services that are
2. Manila Bay - Pollution Hotspot in the
South China Sea:
required in order to address priority
environmental concerns, are listed
· Sewerage systems development and
along with selected information on
expansion (US$ 50 million)
the sectors of interest and related
· Water supply systems development and
institutional arrangements.
expansion
· Municipal solid waste collection and disposal
Environmental Investment
systems (US$ 150 million)
Opportunities at ICM Sites
· Centralized industrial wastewater
in the East Asian Seas Regions
processing/disposal facilities
· Shore reception facilities (US$ 2.5 million)
1. Danang, Vietnam:
· Improving/constructing sewage
collection and treatment system (US$ 41 million)
· Improving/expanding existing landfill
· Upgrading/expansion of water supply system
· Expansion and development of two seaports, including shore reception facilities (US$
175 million)
· Development of six industrial parks, including cleaner production processes and
wastewater treatment and disposal facilities (US$ 259 million)
· Eco-tourism development (US $300 million)
2. Bali,
Indonesia:
· Centralized and communal sewage treatment and disposal facilities
· Province-wide integrated waste management facility
· Centralized industrial waste processing facility
4
Project Objective
The objective of the proposed project is to develop investment opportunities at PEMSEA
sites for the purpose of:
a) establishing the economic viability and appropriate financing mechanisms for the
initiatives;
b) promoting and forging sustainable partnerships between the public and private
sectors to develop and manage the capital investments.
Project Development
The project will be developed as a collaborative activity with PEMSEA. To fast track
PEMSEA investment efforts at selected sites, extra-budgetary resources are required to:
· undertake pre-feasibility studies
· build local stakeholder support
· identify potential partners and investors in environmental facilities and services
for the East Asian Seas region and their expectations
· package and disseminate investment briefs to potential partners
· bring the local stakeholders and potential partners together for a round table on
investments and partnerships
· forge agreements between local parties and their selected partners concerning
the development and implementation of environmental facilities and services.
Project Strategy/Approaches
The project will be undertaken in the following stages:
1. Pre-feasibility Studies: Building Local Stakeholder Commitment
Pre-feasibility studies are required in order to:
a) delineate technical options for each proposed facility and service;
b) prepare financial assessments of the options;
c) evaluate economic implications on local users and beneficiaries;
d) address local capacities to provide and/or participate in the development,
financing and management of the investment;
e) review related policies and administrative arrangements; and
f) build consensus among local stakeholders on the most appropriate financing
mechanism for the proposed facility and service.
A principal purpose of the pre-feasibility study is to reach a consensus among local
stakeholders on the potential investment, the benefits of partnerships, the structure of
relationships, and an implementation strategy for moving the investment opportunity
forward to external investors and operating companies.
In addition, a pre-feasibility study explores technical, financial and economic aspects of
the facility or service. This preliminary assessment is designed to address basic
5
questions of potential partners and investors, to generate interest in the investment, and
to promote interactions with local stakeholders.
2. Packaging and Promoting Opportunities for Partnerships
Two actions are required in packaging and promoting investments to potential partners.
First, the development of a package of information on the situation at the site, which will
be of interest to investment groups, private operating companies, venture capital groups
and commercial banks, is required. The second action is to identify which of the
identified groups or group members are interested in environmental projects in the East
Asian Seas region, and the public-private partnership approach as an alternative to the
traditional contracting methods and relationships with the public sector.
Opportunity briefs are a consolidation of information collected during pre-feasibility
studies. They contain information on the community and the sector(s) of interest, 20-
year economic and market projections for the sector(s), cost estimates of alternative
technologies, processes and procedures, an analysis of local stakeholder capacities,
and a review of national and local institutional arrangements, pertinent regulations and
policies, incentives and constraints to proposed partnerships.
Developing linkages with a global network of investors, venture capital groups and
operating companies is a major effort, but one that is essential to the public-private
partnership mechanism as envisaged by PEMSEA. Three issues are of key importance
when setting up the network:
a) Network members must be willing and able to fulfill the objectives of the public
sector in a partnership arrangement, as outlined in Table 1;
b) The expectations of network members regarding environmental investments
should be clear and consistent, so that local stakeholder groups can package
their investment opportunities accordingly; and
c) The process by which network members become involved as partners with local
stakeholders, and the related commitments, must be fair, transparent and well-
understood by all parties.
To facilitate interconnection between providers and users of technologies, services,
expertise and financial resources, a "virtual center for environmental investments" will
be developed and brought on-line. A virtual center will serve as an on-line guide for
technical and business exchanges, technical cooperation among environmental
professionals, and an electronic sourcebook and access to information about
environmental technology, investments and financing. The virtual center will assist in
building long-term partnerships between local stakeholders in the region and the global
network of investors.
3. Investors' Round Table
The Investors' Round Table is an event designed to bring the local stakeholders/ project
proponents together with interested investors and potential partners. At the Round
Table, investment opportunity briefs are presented by local proponents to promote
private sector participation in the planning, development, financing, construction and
operation of environmental facilities and services.
6
The Round Table has three objectives, namely:
a) Affirmation of the political will and commitment of the local stakeholders and
project proponents;
b) Confirmation of the follow-on process for identifying and selecting partners and
the roles and responsibilities of both the public and private sectors in such a
process;
c) Expression of interest on one or more of the projects from the private sector, and
agreement to participate in the follow-on process.
4. Forging Agreements between Public and Private Sector Partners
The partnership selection process entails: a) written proposal from interested private
sector parties on the strategy, process and suggested arrangements with local
proponents to plan, develop and implement the proposed investment; b) the formation of
a local selection committee comprised of appropriate local stakeholders from the public
and private sectors and a representative of PEMSEA, who will oversee the process to its
completion.
Upon selection of the private partner, a Memorandum of Agreement is negotiated
between the parties, to formally agree on the roles, responsibilities and commitments of
the signatories, leading to the construction and operation of the proposed facility or
service. Typical considerations in such an Agreement include:
· Ensuring that all activities are in compliance with national and local laws
· Clarifying the permit and approval process
· Accessing sites for investigative field studies
· Providing supporting information, including available technical and financial
reports
· Valuating property, facilities and services
· Developing, adopting and enforcing regulations and controls to ensure a level
playing field
· Conducting a detailed feasibility study
· Developing a bankable document for submission to investors and lending
institutions
· Detailing milestones for decision-making, and the process and criteria by which
parties will determine the viability of the project
· Preparing and implementing a communication plan to build awareness among
policy makers, government agencies, the private sector and civil society.
The signing of the MOA marks the commencement of the partnership. The terms of the
MOA provide the guidance and benchmarks for parties to follow in proceeding to the
commissioning and operation of the environmental facility.
Roles and Responsibilities
Governments of participating countries
National and local governments shall provide technical and administrative support for
conducting the pre-feasibility studies, organizing meetings and workshops with
7
stakeholders, ensuring access to relevant information, developing consensus on
proposed investments among local stakeholders, participating in Round Table meetings
and negotiating MOA's between project proponents and private sector partners.
Local stakeholders
Local stakeholders, including local government agencies, the private sector, NGOs,
scientific and technical institutions and/or pertinent local community groups, as
appropriate, shall participate in the formulation, implementation and evaluation of the
pre-feasibility studies, coming to a consensus on appropriate options for addressing
environmental priorities and related financing mechanisms.
The Private Sector
International investors, operating companies, venture capital groups, green investment
funds, etc. with interest in environmental projects in the East Asian Seas region and the
public-private partnership approach to financing environmental facilities and services in
the region, shall form a global network, establish linkages to a virtual center of regional
investment opportunities, provide technical, legal and financial advice and assistance for
the preparation of opportunity briefs, participate in Investors' Round Tables, and
negotiate MOA's with project proponents concerning investments of interest.
The Global Environment Facility
The GEF shall provide a grant to assist PEMSEA, the participating governments of the
region, local stakeholders and the private sector to demonstrate and verify a financial
mechanism that facilitates public sector and private sector investment in self-sustaining
environmental facilities and services in the Bohai Sea-Yellow Sea and South China Sea
areas, through practical applications.
PEMSEA
PEMSEA will develop and coordinate the investment and partnership development
activities in the Bohai Sea, Manila Bay, Danang and Bali sites. PEMSEA shall oversee
the preparation of pre-feasibility studies and opportunity briefs and co-organize the
Investors' Round Tables. PEMSEA shall serve as an objective the third party in the
selection of private sector partners by local stakeholders and the negotiation of MOAs
between project proponents and selected partners.
Project Duration
The project will be implemented over an 18-month period.
8
Expected Outputs
The project will result in:
1. Four new environmental investment projects involving public-private sector
partnerships
2. A global network of environmental investors
3. A virtual center of investment opportunities for the region
4. A proven approach to facilitating public sector and private sector investment in
priority environmental facilities and services.
9
Project Budget Estimate
Activity Technical,
Legal
Meetings/Workshops Travel Misc.
and Financial
Consultants and
Experts
1. Pre-feasibility
2 subregional sites
2 subregional @
$20,000
$5,000
Studies
@ $75,000 ea.
$25,000 ea.
2 ICM sites @
2 ICM sites @ $2,500
$10,000
$5,000
$25,000 ea.
ea.
2. Packaging and
Promoting
Opportunities:
a) Packaging/
2 subregional sites
2 subregional sites @
$10,000
$2,500
consensus
@ $50,000 ea.
$10,000 ea.
building
2 ICM sites @
2 ICM sites @ $2,500
$7,500
$2,500
$20,000 ea.
ea.
b) Global network Global network
2 @ $5,000 ea.
$10,000
$2,500
of investors
established @
$75,000
Virtual Center
$15,000
$2,500
established as on-
line linkage between
project proponents
and potential global
partners @ $75,000
3. Investors' Round
2 @ $25,000 ea.
2@ $25,000
$30,000
$5,000
Tables
(2)
4. Forging
4 partnerships @
$15,000
$2,500
Partnerships
$25,000 ea.
SUBTOTALS
$640,000 $140,000 $117,500
$27,500
Project Overhead
$75,000
Total Estimated Budget: US $1,000,000
GEF contribution: US $1,000,000
***
10
APPENDIX A
SITE PROFILES
11
Manila Bay Profile
Site description:
Coastline length:
190 km
Water surface area: 1800 km2
Watershed area:
17000 km2
Mean water depth:
17 m
Mean retention time: 2 weeks to one month
(seasonal variation)
Watershed population: 16 million
Priority environmental issues:
· Coastal waters severely contaminated
with sewage
· High levels of PO4 in the water column,
with localized NH3 hotspots
· Elevated levels of Cu and Cd in sediments
· Human health risk associated with high levels of metals and pesticides in fish
tissue
· Degradation/destruction of coastal habitats
· Overexploitation of fisheries/destructive fishing practices
· Erosion and sedimentation due to coastal development/reclamation projects
· Inadequate potable water supply
Investment Opportunities:
1. Sewerage expansion programmes in the National Capital Region (NCR)
2. Several proposed sites for centralized sewerage systems in Bulacan and Nueva
Ecija (US$ 50 million)
3. Water supply expansion programme for households without safe water
supply/limited access to piped water in NCR and Provinces
4. Solid waste management facilities for Metro Manila (US$ 100 million), and for
Provinces outside of Metro Manila (e.g., Bataan Province: US$ 7.5 million)
5. Centralized processing and disposal facilities for electroplating industry, liquid
hazardous wastes, food and beverage industry, and oily wastes in Metro Manila
6. Shore reception facilities for ports under the Philippine Port Authority (US$ 2.5
million).
Sector profiles:
Municipal sewage treatment and disposal
· 554,000 m3 of domestic wastewater generated daily
· 82% of households with flush toilets
· only the NCR has a central sewerage system
· less than 1.5% of population connected to sewage treatment facilities
· over 2 million septic tanks, with limited desludging services
12
Municipal water supply
· 692,000m3/day is the current demand; 2% growth per year
· over 4.6 million households
· 46% of households are served by central distribution systems
· 25% of households fetch water from a community source
· 19% of households do not have access to a safe water supply
Municipal solid waste
· 14,516 tonnes of garbage are generated daily
· <75% of household waste is collected
· <60% of household waste is disposed in approved facilities
Hazardous waste management
· 1.17 million tonnes of hazardous waste generated per year
· no central facilities for treatment and disposal of hazardous waste
· top five generators of hazardous waste are: metal finishers, industrial chemicals,
food and beverage, basic metals and electricity generators
· top types of hazardous waste generated are acids, alkalis, inorganic chemicals,
oils, organic waste and plating waste
Ship and port waste management
· >35,000 ship arrival per year
· >53,000 tonnes of used oil generated
· no shore reception facilities
Industrial waste management
· 7,596 industrial establishments based on census
· 63% of establishments with wastewater treatment facilities
Agricultural waste management
· >34 million head of livestock
· 20% comprised of backyard operations with no treatment facilities
· 80% of commercial operations with treatment facilities
Institutional Arrangements:
Local governments are responsible for pollution control (Local Government Code, RA
7160)
Local governments are responsible for solid waste management, including development
of sanitary landfills, collection of fees and private sector participation (Ecological Solid
Waste Management Act, R.A. 9003)
13
Department of Environment and Natural Resources regulates toxic chemicals and
hazardous wastes (Toxic Substances and Hazardous and Nuclear Wastes Control Act,
R.A. 6969) and industrial waste (Philippine Environment Code and Presidential Decree
984).
In Metro Manila, the Metro Manila Development Authority (MMDA) provides services,
which transcend administrative boundaries, including health, sanitation and pollution
control. The Metropolitan Waterworks and Sewerage System (MWSS), a government-
owned and controlled corporation, has jurisdiction over all waterworks and sewerage
systems of all cities and municipalities in Metro Manila as well as selected areas in
surrounding provinces. Two concessionaires have entered into 25-year contracts with
MWSS and are obliged to achieve service targets, and to maintain, upgrade and install
new facilities to meet such targets.
The Local Water Utilities Administration (LWUA) promotes the development of provincial
water supply outside of Metro Manila. It is authorized to form Water Districts to take
over the management and operation of local water systems. LWUA is mandated to
provide financial assistance in the form of short and long-term loans for foreign and
domestic sources.
The Board of Investments (BOI), under the Department of Trade and Industry, is
responsible for implementing the 1987 Omnibus Investments Code (E.O. 226). The
Code provides a comprehensive set of incentives for local and foreign enterprises
engaged in activities high priority for national development.
***
14
Bohai Sea Profile
Site Description:
Coastline length:
3,784 km
Water surface area: 77,284 km2
Mean water depth:
18 m
Mean retention time: 16 years
Coastal provincial
population:
205 million
Priority Environmental Issues:
· Increased occurrences of Red Tide
· High concentrations of nitrogen in the
water column
· Contaminant build-up in tissues of marine organisms
· Disappearance of marine species
· Degradation/destruction of coastal habitats
· Oil contamination of coastal and marine areas from ship operations and off-shore
development/production activities
· Conflicting uses of coastal and marine resources
Investment Opporunities:
· Establishment and operation of sewage treatment plants, Tienjin
· Recycle/reuse effluents from sewage treatment plants in Tienjin and Qingdao
· Treatment/recovery of black liquors in pulp mills in Panjin (Liaoning Province)
and Tongying ( Shandong Province)
· Ecotourism in Qinwandao (Hebei Province)
· Ecotourism in protected area covering sand dune (one of two coastal sand dunes
in the world exceeding 40 meter high) in the coastal area of Qinwandao
· Coal terminal management in Qinwandao;
· Oil terminal management in ports around Bohai Bay.
· Organic fertilizer production using wastes from pulp mills in Tongying and Panjin
· Establishment of pollution monitoring stations in the Bohai region
· Design and production of small-scale incineration plants for island and coastal
areas, Pamjin
Sector Profiles:
Municipal Sewage Treatment and Disposal
· 7.34 million m3 of domestic sewage daily
· 20% of the sewage receives treatment prior to discharge
· National People's Congress requires the rate of sewage treatment to be 45%
across the country by 2005
· Sewage treatment capacity in the Bohai Sea region will need to increase by 1.5
million m3 per day in order to meet the 2005 target.
15
Municipal Water Supply
· Severe water shortages in Tienjin, Qingdao and other cities in northern China
· Cities pursuing water conservation programs, including recycle/reuse of
municipal wastewater
Municipal solid waste
· 90.4 million tones generated in 2000
· 24% of wastes collected and disposed in open dumps
· integrated waste management and sanitary landfills being targeted in cities and
provinces of the region
Industrial Waste
· 780+ industries in the coastal area
· 3.8 million m3 of industrial wastewater generated daily
· 80% of industrial wastewater is treated (1998)
· industrial processes being upgraded using cleaner production technologies
Hazardous waste
· industrial sectors suspected of generating hazardous wastes include chemical,
petrochemical, papermaking, electroplating, mining, metallurgy, print and dying
mills and power
· no hazardous waste facility at present
Sea-based Sources of Marine Pollution
· oil pollution in coastal waters; pollution hotspots in local areas
· 70 ports in the region, no shore reception facilities
· second largest oil field in China located in the Bohai Sea, with extensive offshore
oil exploration and production
· 65% of oil pollution estimated to originate from coastal oil fields
· dumping of dredged material not monitored or controlled
Tourism
· Bohai region is an important Chinese coastal settlement and socio-economic
hallmark
· richly endowed with "Golden Beaches", mountains, historical landmarks and
natural scenery
· >6 million tourists each year.
Mariculture
· 418,000 ha of mariculture
· seaweed, mussels, prawns and scallops produced
· pollution and Red Tide threaten industry
16
· 1989 Red Tide resulted in US$40 million economic damage to mariculture
· improved technology required in order to increase productivity, improve quality of
products and reduce environmental impact of the industry
Fisheries:
· major spawning area for Yellow Sea fisheries
· coastal habitats under threat due to pollution and over-exploitation of resources
· over-fishing resulting in reduced catch
Institutional arrangements:
State Oceanic Administration (SOA) has overall responsibility for ocean functional
zoning and sea area use, and control of marine sources of pollution.
State Environmental Protection Agency (SEPA) is responsible for regulating land-based
activities, and the prevention and management of marine pollution from land-based
sources.
Ministry of Agriculture is responsible for conservation of fish stocks, control of pollution
caused by aquaculture, and the economy of the fishing industry.
Ministry of Commerce is responsible for economic development
The Navy is responsible for monitoring and enforcement of maritime regulations, and for
search and rescue.
Local government units are responsible for implementing policies and regulations
prepared and adopted by central government.
***
17
Danang ICM Site Profile:
Site Description:
16.30
Fig u r e 1. Re l a t iv e b o u nd a r y o f t h e p r o j e c t c o r e a r e a
Coastline length:
30 km
Water surface area: 3,750 km2
e
c
Thua Thie n Hue Pr o v inc e
16.20
in
v
o
Watershed area:
954 km2
r
P
e
.
u
H
Maximum water depth: 20 m
n
ie
h
Lien Ch ieu Dist r ic t
T
a
Da Nang Bay
u
Watershed population: 702,546
h
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16.10
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Priority Environmental Issues:
r
e
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i
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R
n
a
H
D a na ng a irport
t
ic
r
Q
t
·
u
Uncontrolled/illegal disposal
Ha i Ch a u Di s t r i c t
a
is
Leg en d
n
D
g
n
o
N
o
16.00
a
of municipal solid waste
Riv er/s pring
m
Tu
S
y
Loa
n
h
R
P
iver
n
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r
a
o
H
· Sea-based sources of oil
P rov inc ial boundary
v
u
in
g
c
Dis tric t boundary
N
e
pollution/waste discharges
Railway
0
2.5
5
M ain road
Kilometers
Qua ng Na m Pr o v inc e
Local road
· Rivers and coastal waters 15 90
107 80
107 90
108 00
108 10
108 20
108 30
108 40
contaminated with sewage
Source: Department of Science, Technology and Environment of Danang City
· Industrial waste discharges
to coastal areas
· Hazardous and toxic waste
· Uncontrolled development/use of coastal resources
· Flooding and coastal erosion
Investment Opportunities:
· Improving/constructing sewage collection and treatment system (US$ 41 million)
· Improving stormwater drainage system
· Upgrading septic tanks for 32 communes
· Improving/expanding existing landfill
· Upgrading/expansion of water supply system
· Port expansion and development, including shore reception facilities (US$ 175
million)
· Development of six industrial parks, including the provision of cleaner production
technology and industrial wastewater treatment and disposal facilities (US$ 259
million)
· Ecotourism development (US $300 million)
Sector Profiles:
Municipal sewage treatment and disposal
· No central wastewater treatment facilities
· 6,000 m3 raw sewage discharged daily
· <20% households on sewage collection system
· World Bank project approved (1999-2004) for sewerage and drainage system
18
Municipal water supply
· 52,000 m3 daily water supply
· 93% of population has access to tap water
· World Bank and AusAid project underway to rehabilitate and expand water
supply system
· New pumping station, water treatment plant, water storage and distribution
system proposed (200,000 m3 capacity)
Municipal solid waste
· 723 m3 generated daily (estimate)
· <50% of garbage is collected
· one open dump site
· medical and industrial wastes being disposed at same site
Industrial waste
· 145 factories rated as high, medium and low polluters, located in residential
areas; no waste treatment provided
· 219 industrial establishments located in three existing industrial parks/export
processing zones with existing or proposed treatment facilities
· 6 new industrial estates planned, removing industry from residential areas and
upgrading technologies and providing treatment facilities
Hazardous waste
· 24 medical/hospital facilities
· Stockpiles of banned pesticides
· Stockpiles of toxic chemicals from war
Ship and port waste
· 3 seaports; two port expansions being planned
· no shore reception facilities for ship wastes
· vessel traffic management/oil spill response required
Tourism
· one of 3 core tourist areas in Vietnam
· 15% of total tourism revenue for Vietnam
· two marine protected areas have been established
· three UNESCO World Cultural Heritage Sites in the area
Flood Management
· several districts and most coastal communes affected
· development of special housing in flood prone areas
· relocation of some communities under high risk of flooding
19
Institutional arrangements:
Danang's People's Committee is responsible for policy development and implementation
and the overall administration of Danang. Authorized to grant investment licenses for
projects with investment capital up to US$ 5 million. Danang City Development Master
Plan (2000-2010) has been adopted.
Danang Industrial Zone and Export Processing Zone Authority is authorized to grant
investment licenses to projects valued at US$ 5 million for industrial zone enterprises,
and up to US$ 40 million in the export processing zone.
***
20
Bali ICM Site Profile
Site Description:
Coastline length:
219 km
S e a of J a v a
Water surface area: 3,350 km2
BULELENG REGENC Y
Watershed area:
1,791 km2
t
i
Petang
Kubu
a
Site population:
1,769,261
JEMBERANA REGENCY
r
t
S ila
Abang
B
Rendang
KARANGASEM R EGENCY
Payangan
BANGLI
g
TABANAN REGENCY
l
a
n
REGENCY
t r a i t
g
a
l
l a
Bebandem
e
T
Selat
Karangasem
Priority Environmental Issues:
s
i
r
i ng
p
ak
b o k S
a
m
T
Sidemen
g
Manggis
k
an
L o m
Ubud
k
u
n
n
g
n
g
r
a
a
u
nj
Kl
a
GIANYAR
Gianyar
B
Dawan
BADUNG
REGENCY
REGENCY
KLUNGKUNG
Blahbatuh
REGENCY
Mengwi
Sukawat i
· Rivers and coastal waters contaminated
DENPASAR
CITY
B a d u n g S t r a i t
a
r
E. Denpasar
p
a
s
Kuta
e
n
D
Lembongan Is.
W.
Ceningan Is.
Nusa Penida Is.
with sewage
S. De npa sar
Nusa Penida
Serangan Is.
· Coastal habitats threatened by waste
LEGEND
mismanagement
Hindian Ocean
District Boundary
Sub District Boundary
Bali ICM Site
· Uncontrolled development in coastal
Scale 1 : 1,000,000
areas, resulting in erosion and destruction
of habitat
· Overexploitation/destructive fishing practices
· Conflicting uses of marine and coastal resources
Investment Opportunities:
· Construction of sewage collection and treatment facilities
· Development of a municipal solid waste management system
Sector Profiles:
Municipal sewage treatment and disposal
· no central collection and treatment system
· some beaches contaminated with sewage
Municipal water supply
· >150 million m3 annual domestic water demand (Province-wide)
Municipal solid waste
· >2,900 tonnes of waste generated daily in the Province
· waste currently disposed to open dump in the coastal area
Industrial waste
· 1216 small scale industries
· no central facilities for wastewater treatment
21
Hazardous waste
· textile, priniting and publishing, chemical and food and beverage industries
present
· no hazardous waste facilities
Ship and port waste
· 4 ports in the Province
· >6 million arrivals/departures (1999)
· >4 million tones of cargo handled
· >6,500 boats/vessels in the area
Tourism
· 1,355,000 tourists (1999)
· significant growth in industry predicted over next five years
Coastal development and public works
· 65 km stretch of beach eroded in Bali (as of 1997)
· engineering structures needed to control beach erosion: eg breakwater
constructed in Sanur Beach
Institutional arrangements:
· Law Number 22 of 1999 on Regional Government gives direct legal mandate to
district and town governments in coastal and marine management
· Provincial government has jurisdiction over marine areas up to 12 nautical
miles from shoreline; District and town governments have jurisdiction over
marine areas up to 1/3 of the provincial marine areas measured from the
shoreline
· central/national government has jurisdiction over marine areas beyond 12
nautical miles (eg Department of Sea Exploration and Fisheries, Indonesian
Maritime Council)
***
22
Document Outline