Completion Report on the Use of GEF Manila Third Sewerage Project (P089082) Preparation Grants as of February 14, 2007
1. Please find the Completion Report for the above mentioned PDF Block B Grant which was approved last September 29, 2005 with a funding of Three Hundred Fifty Thousand US Dollars (US$350,000) executed by the recipient.
2. The recipient has successfully completed most of the activities funded under the PDF Block B, and the outputs are satisfactory. The specific activities funded under the PDF Block B are listed in the following table. A summary of the outputs is included. All uncommitted funds for activities that were not completed will be refunded to GEF.
Approved				Actuals
Proposed Activities at Approval		GEF financing	Co-financing	Completed Activities		GEF Financing committed	Cofinancing committed	Uncommitted GEF funds
1. Review institutions and policies, identify overlaps and prepare terms of reference for streamlining institutional arrangements		$50,000	$0	1. Institutional and Legal Studies and terms of reference for partnership planning and policy development and draft Memorandum of Agreement among the concerned agencies		$275,656	$40,000	$23,344
2. Baseline condition and investment program		$130,000	$0	2. Baseline conditions study with a delineation of the watershed boundaries and terms of reference for the review of the water and wastewater tariff structure and innovative financial mechanisms
3. Pre-feasibility study for prototype sewage-septage treatment plant		$100,000	$0	3. Pre-feasibility study Joint Sewage / Septage treatment plant
4. Prepare GEF project document		$30,000	$0	5. Monitoring and Evaluation Plan		$33,546	$30,000	$0
				4. Stakeholder analysis, workshop, TOR for partnership strengthening, build consensus, and prepare a stakeholder plan
				6. GEF Project Document
5. Conduct workshop, study visits		$40,000	$0	7. Study tour / replication and dissemination.		$0	$0	$16,455
Total		$350,000	$0	Total		$309,202	$70,000	$39,798
The total amount of uncommitted funds to be returned to GEF is US$ 39,798. This amount is for two individual consultant services that were cancelled (US$ 23,344) and for two study tours to Malaysia and Vietnam for 12 people from DENR, EMB, EMB-regional office, MWSS CO /RO, PRRC, and LLDA (US$ 16,455) which was forfeited.
The reason for increasing cofinancing from US$ 0 to US$ 70,000 is that during the course of preparation, the government and the Maynilad Water Services Inc allocated $70,000 to staff time, office space and equipment, travel costs for the workshops and consultations, and training sessions within and outside Metro Manila.
Project Preparation Grant Management Budget
	Approved			Committed
	Staff weeks	GEF Financing	Co-financing	Staff weeks	GEF Financing	Co-financing
Personnel
Local Consultants	80	$0	$40,000	85	$0	$40,000
International Consultants	0	$0	$0	0	$0	$0
Training		$0	$5,000		$0	$5,000
Office Equipment		$0	$5,000		$0	$5,000
Travel		$0	$10,000		$0	$10,000
Miscellaneous		$0	$10,000		$0	$10,000
Total		$0	$70,000		$0	$70,000
Outputs from completed project preparation activities
The purpose of the PDF B Grant is to assist the Recipient in the preparation of a project document entitled GEF Manila Third Sewerage Project (GEF-PPG Number TF0555659) which has at its main objective to complement the Manila Third Sewerage project, particularly, to remove institutional and technical barriers in sewage and sanitation management and to provide the Government with tools to better plan and leverage investments in these sectors in Metro Manila.
The development objective of the GEF-MTSP is to create an enabling environment to scale up investments in priority areas in sewerage and sanitation in Laguna de Bay-Pasig River-Manila Bay watershed area to reduce pollution loading discharges in Metro Manila through a) partnership strengthening; b) planning and policy development; c) innovative financing; d) use of market-based incentives; e) water and wastewater rate rebasing; and f) demonstration of the viability of combined sewage and septage treatment in Metro Manila.
Under the Fund, the global environmental objective of this project is to mobilize international and domestic financial resources to support the GOP as it builds a fully-functioning partnership between key agencies responsible for environmental management and pollution control, such that they can work together to remove the institutional, financial and technical barriers that limit investment in pollution control in MM, thereby promoting new, efficient investment in facilities that reduce land-based pollution of the East Asia Seas.
The project preparation activities were divided into the following major components:
1. Institutional studies, strengthening of partnerships among stakeholders. The project achieved the following: (i) reviewed the current institutional responsibilities for water pollution control within the Laguna Bay-Pasig River-Manila Bay watershed area; (ii) identified the institutions' manpower strengths and calibers, size of investment, operational budgets, actual water pollution control activities, value added elements, gaps and needs, overlaps in policies, jurisdiction, and development plans; and (iii) prepared the terms of reference for the formulation of convergence mechanisms and alternatives for streamlining institutional responsibilities
2. Review Baseline Conditions within the Watershed Area and Prepare ToR for an Integrated Watershed Investment Program: (i) reviewed available information on designated uses and socio-economic conditions of the watershed area; (ii) held stakeholder consultations on major pollution sources and delineated the hotspot areas within the watershed areas; (iii) prepared the terms of reference for the review of a tariff structure which supports scaling up investment in sewerage and sanitation and requirements for investment in government-defined hotspots, and (iv) prepared terms of reference for the formulation and implementation of an integrated watershed management program
3. Pre-Feasibility Study on a Joint Sewage-Septage Treatment Plant (STP): (i) identified design parameters for a STP to accept septage in order to demonstrate a prototype sewage-septage treatment system; (ii) completed a pre-feasibility study of the selected system to identify optimal quantity of septage, required modifications in the design and operation of the STP, estimated costs, engineering and equipment changes, and operating costs; and (iii) formulated a monitoring and evaluation program to determine the performance, efficiency and effectiveness of the joint sewage-septage treatment plant
4. Conduct Workshops, Build Consensus, and Prepare a Stakeholder Plan (i) conducted stakeholder workshops attended by stakeholders in the watershed to identify existing issues and constraints with respect to integrated management of the watershed areas and build consensus among the stakeholders on these issues (ii) prepared a stakeholder plan to guide implementation process
5. Prepare Monitoring and Evaluation Plan (i) developed a project monitoring and evaluation program (ii) developed a strategy to confirm the pollution reduction loading estimates achieved through the project (iii) prepared monitoring and evaluation parameters on the institutional and regulatory reform component
6. Preparation of GEF Project Documents (i) prepared GEF project documents
7. Replication and dissemination activities (i) made presentations and disseminated materials to share information and recommendations of the project studies in collaboration with the regional offices of the Department of Environment and Natural Resources and PEMSEA (ii) participated in national conferences to disseminate information on the project (iii) prepared a dissemination and replication plan