INTEGRATED SAFEGUARDS DATASHEET
APPRAISAL STAGE
I. Basic Information
Date prepared/updated: 12/12/2006
Report No.: AC2458
Public Disclosure Authorized
1. Basic Project Data
Country: Philippines
Project ID: P089082
Project Name: PH-GEF-Manila Third Sewerage Project
Task Team Leader: Luiz Claudio Martins Tava
GEF Focal Area: International waters
Global Supplemental ID:
Estimated Appraisal Date: August 15, 2006 Estimated Board Date: February 15, 2007
Managing Unit: EASUR
Lending Instrument: Specific Investment
Loan
Sector: Sanitation (50%);Sewerage (50%)
Theme: Environmental policies and institutions (P);Pollution management and
environmental health (S)
IBRD Amount (US$m.):
0.00
Public Disclosure Authorized
IDA Amount (US$m.):
0.00
GEF Amount (US$m.):
5.00
PCF Amount (US$m.):
0.00
Other financing amounts by source:
BORROWER/RECIPIENT
84.46
84.46
Environmental Category: B - Partial Assessment
Simplified Processing
Simple []
Repeater []
Is this project processed under OP 8.50 (Emergency Recovery)
Yes [ ]
No [ ]
2. Project Objectives
Public Disclosure Authorized
The GEF-Manila Third Sewerage Project (GEF) development objectives are to assist the
GOP in the Project Areas in: (a) identifying essential adjustments to administrative,
institutional, and regulatory practices and existing legislations in order to attract private
investments in the Recipient?s wastewater sector; (b) increasing the effectiveness of the
agencies responsible for water pollution control through improved coordination; and (c)
promoting innovative, simple and effective wastewater treatment techniques.
3. Project Description
The project is a complement of the on-going Manila Third Sewerage Project approved by
the Bank in 2006. The GEF project components 1 through 4 aim at identification of
impediments to cooperation among sector agencies, and to non-conventional investments
in sewerage and sanitation; components 5 and 6 would assist MWSS in pursuing higher
investments in sewerage and sanitation by its concessionaires and in experimenting
Public Disclosure Authorized
suitable technology for disposing of septage. Component 7 is technical assistance for
project management, monitoring, evaluation and dissemination. A detailed project
description is in Annex 4 of the Project Appraisal Document. The summary is as
follows:
Component 1: Partnership strengthening (US$1.00 million)
The component would: (a) strengthen partnerships among the Recipient?s agencies
responsible for water pollution control to improve coordination and effectiveness,
through carrying out studies of successful pollution control and wastewater management
partnership models worldwide, and identifying and carrying out measures for improving
existing administrative, institutional, and regulatory practices; (b) establish an integrated
partnership information center in DENR to consolidate existing data concerning the
wastewater sector which would then be disseminated to stakeholders in said sector; (c)
integrate water quality monitoring systems of the Recipient?s agencies responsible for
water pollution control; and (d) expand the public assessment of water services to include
sewerage and sanitation services.
Component 2: Planning and Policy Development (US$0.50 million)
This component would (a) update the sewerage and sanitation master plans and
applicable standards for MWSS? jurisdiction areas; (b) refine policies, procedures, and
guidelines for regulating the providers of septic tank desludging service; and (c) develop
procedures and standards for implementing the Recipient?s Clean Water Act and the
Sanitation Code.
Component 3: Innovative financing (US$0.50 million)
This component would help the government in developing and testing innovative
financing arrangements for the sewerage and sanitation sector to attract private sector
investment in the sewerage and sanitation sector, including provision for technical
assistance.
Component 4: Use of market-based incentives (US$0.10 million)
This component would assist the LLDA in improving its environmental user fees
systems and implementing market-based incentives in such systems through provision of
technical assistance.
Component 5: Rate rebasing (US$0.60 million)
The component would provide technical assistance and training to MWSS and the
Recipient?s relevant government agencies for the preparation and negotiations of
2007/2008 rate rebasing in the water and wastewater sector.
Component 6: Joint sewage and septage treatment plant (US$4.65 million)
This pilot would upgrade a selected sewage treatment plant in Quezon City to a
combined septage and sewage treatment plant, including the first year trial operation of
the combined septage and sewage treatment plant.
Component 7: Project management (US$1.00 million)
This component would provide technical assistance and operating support to assist
DENR in implementing, coordinating, monitoring, evaluating, and supervising the
Project and disseminating the Project?s results and outcomes.
4. Project Location and salient physical characteristics relevant to the safeguard
analysis
The project is located in the Laguna de Bay-Pasig River-Manila Bay watershed area
which is in and near Metro Manila. Sewage in these areas drain to rivers and other
tributaries causing severe pollution and degrading the water resources of the watershed.
5. Environmental and Social Safeguards Specialists
Ms Maya Gabriela Q. Villaluz (EASEN)
6. Safeguard Policies Triggered
Yes No
Environmental Assessment (OP/BP 4.01)
X
Natural Habitats (OP/BP 4.04)
X
Forests (OP/BP 4.36)
X
Pest Management (OP 4.09)
X
Physical Cultural Resources (OP/BP 4.11)
X
Indigenous Peoples (OP/BP 4.10)
X
Involuntary Resettlement (OP/BP 4.12)
X
Safety of Dams (OP/BP 4.37)
X
Projects on International Waterways (OP/BP 7.50)
X
Projects in Disputed Areas (OP/BP 7.60)
X
II. Key Safeguard Policy Issues and Their Management
A. Summary of Key Safeguard Issues
1. Describe any safeguard issues and impacts associated with the proposed project.
Identify and describe any potential large scale, significant and/or irreversible impacts:
The MTSP GEF will have an overall positive impact on the environment by attracting
additional investments to reduce environmental and health risks attributed to wastewater
and polluted surface water exposure. The Project goals of aligning concessionaires?
performance targets to environmental goals, forging partnerships and cooperation among
different agencies/entities involved in sewerage management and sanitation and
broadening the spectrum of available finance for pollution reduction will strengthen the
framework for financing long-term environmental protection of the area.
The project is largely comprised of technical assistance and contains one component
that will finance the civil works to rehabilitate and upgrade a sewage treatment plant to a
combined septage and sewage treatment plant. The project triggers the Environmental
Assessment policy because of the environmental issues associated with this component.
The resettlement and IP policies are not triggered as there is no acquisition of land or
economic resettlement and the area does not contain indigenous groups.
2. Describe any potential indirect and/or long term impacts due to anticipated future
activities in the project area:
The project is specifically designed to support environmentally sustainable regional
development through identification and removal of institutional, economic and technical
barriers toward investment in reducing pollution that reaches the South China Sea
through the Manila Bay. The anticipated long term and indirect impacts are thus
expected to be related to reduction of pollution and thus be environmentally positive.
3. Describe any project alternatives (if relevant) considered to help avoid or minimize
adverse impacts.
The project was designed with environmental enhancement in mind and thus the
alternatives considered all had environmental benefits. Some of the key alternatives
considered were:
No project alternative: In the no project alternative, environmental degradation will be
higher as investments in sewerage and treatment will be of lower standard, and use less
effective planning with limited consideration of environmental hotspots. Additionally,
investments in treatment systems will be fewer or completed at a slower rate due to lack
of understanding of the benefits of the combined septage and sewage treatment system
and innovative financial mechanisms.
Focus of rate rebasing technical assistance: The project will support capacity building
and training for the upcoming negotiation of the rate rebasing exercise. Rather than
adopting the ongoing approach to sewerage and sanitation, the project will pursue an
alternative that specifically supports several measures that would improve the
environmental performance of the concessionaires through investments in sewerage and
sanitation. These include improving the tariff structure to support scaling up investment
in sewerage and sanitation and ensuring investment is prioritized in key hotspots which
will be identified during implementation based on environmental impact and
performance.
Technology for demonstration: Alternatives for sludge disposal and use as well as
alternative treatment technologies were considered in the demonstration pilot during the
preparation of the Manila Third Sewerage Project. Specifically, the disposal of treated
septage in the lahar area was chosen over other options including the ocean dumping of
the septage which underwent a trial during the Manila Second Sewerage Project but was
less desirable due to the lack of public support. Alternative technologies for treatment
were also considered and the use of a combined septage/sewage treatment plant was
chosen as it provides an opportunity to demonstrate a low cost solution that could utilize
the close to 20 non-functional small scale sewage treatment plants in Manila to treat
sewage and septage the cities septic tanks. The technology also provides additional
treatment that would reduce the amount of septage sludge that would need to be disposed
or used as soil conditioner.
Site of the demonstration plant: Two sites from MWCI and five sites from MWSI were
considered for the proposed prototype sewage-septage treatment plant under Component
6. The site was selected due to a number of advantages from a technical perspective and
also due to the following environmental/social issues: (i) the wastewater currently
pollutes Culiat Creek; (ii) it is close to the source of septage and thus reduces the length
of time for travel and potential traffic disruptions; (iii) the site area is relatively small;
(iv) there are no informal settlers on the site; and (v) there are significant numbers of
septic tanks in adjacent areas to draw septage.
4. Describe measures taken by the borrower to address safeguard policy issues. Provide
an assessment of borrower capacity to plan and implement the measures described.
The project impacts are related to Component 6 including the construction and operation
of the treatment plant and the collection of and transport of the sludge. They are shown
below along with their mitigation measures.
Impact:
Construction of treatment facility
Minimal erosion from site preparation and spoil management
Mitigation Measure:
Dry season construction activities, spoil management plan.
Impact:
Demolition and construction wastes
Mitigation Measure:
Proper recycling and disposal including asbestos wastes as they are encountered.
Impact:
Safety of workers and pedestrians.
Mitigation Measure:
Protective equipment, fencing of areas, safety nets to prevent falling debris.
Impact:
Traffic congestion.
Mitigation Measure:
Hauling of debris in non-rush hour. Assign workers to direct traffic.
Impact:
Dust from construction site activities.
Mitigation Measure:
Regular watering in affected areas.
Impact:
Noise
Mitigation Measure:
Use of new and well-maintained earthmoving equipment.
Impact:
Waste management from construction workers.
Mitigation Measure:
Sanitation facilities and proper waste collection and disposal.
Impact:
Local flooding
Mitigation Measure:
Provision of adequate drainage system.
Operation of treatment facility
Impact:
Wastewater effluent
Mitigation Measure:
Meet treatment and effluent standards.
Impact:
Air emissions from generator and odor from treatment plant operation.
Mitigation Measure:
Operation and maintenance of generator. Use of odor control system.
Impact:
Noise Pollution
Mitigation Measure:
Good foundation design and enclosures.
Impact:
Solid waste from facility.
Mitigation Measure:
Treatment of wastewater in facility and proper waste collection and disposal.
Impact:
Flooding impacting area and building.
Mitigation Measure:
Drainage system and good building design.
Impact:
Health and safety for residents and visitors.
Mitigation Measure:
Design of building and safety equipment.
Impact:
Management of sludge produced.
Mitigation Measure:
Will be used as a soil conditioner in lahar area.
Collection and transport of sludge
Impact:
Spillage and cleaning of vehicles and septage collection equipment
Mitigation Measure:
Regular maintenance and management of equipment, plant and of vehicles
Impact:
Air quality and odor from vehicles.
Mitigation Measure:
Regular maintenance and cleaning of vehicles.
Impact:
Traffic and congestion.
Mitigation Measure:
Assign workers to direct traffic, traffic plan and ensuring sufficient parking area for
operational vehicles at plant site.
The costs of mitigating construction impacts will be included in the costs of facilities.
Other mitigating and monitoring costs (odor, noise, workers health, site safety and
hygiene) will be borne by MWSI.
In addition to the environmental assessment undertaken for the civil works, the project
took a regional approach to environmental enhancement based on work done during
preparation of the Manila Third Sewerage project and the associated Regional
Environmental Assessment. Some of the key regional issues identified through this
process and addressed through project design are: (i) wastewater is politically and
socially much less of a priority than water supply and therefore needs specific incentives
and efforts to increase public awareness; (ii) financing mechanisms for sewerage and
sanitation are limited and innovative financing mechanisms are thus necessary; (iii)
monitoring compliance with laws and institutional coordination are limiting investment in
and maintenance of sewage and septage management systems; and, (iv) standards and
accreditation for septage tank desludging service providers are needed to improve the
quality and availability of this service and reduce the environmental impacts of illegal
disposal practices.
Implementation arrangements: The MWSI would be primarily responsible for
compliance with the environmental safeguards of Component 6 by securing proper
implementation of the ECC and EMP. Implementation of the environmental
management plan during construction will be undertaken by the construction contractor
as an obligation under their contract.
Institutional Responsibilities: The Department of Environment and Natural Resources
(DENR) Foreign Assisted Project Office as the implementing agency of the Grant, shall
be responsible for ensuring the completeness and accuracy of all GEF MTSP
environmental reports to be submitted to the Bank. DENR, through its
environmental/social unit, will perform an oversight function to ensure that
environmental covenants in the Grant Agreement are complied with and that the EMP is
properly incorporated into the contracts used to implement Component 6 of the project.
EA approval: The IEE and EMP for the STP/ SpTP have been approved by DENR.
Monitoring, auditing and reporting: Monitoring, auditing and reporting procedures
related to the EA implementation, covering both biophysical and socio-economic
parameters, are described in the EMP.
Monitoring arrangements include:
Internal monitoring: MWSI?s site managers, wastewater project development team,
plant managers and Pollution Control Officer (PCO) will be responsible for the
monitoring and oversight of the EMP including oversight of associated obligations of the
construction contractor.
External monitoring: An external auditor will be hired to serve as a third party
monitoring unit during project implementation. The auditor will check MWSI?s
compliance with the EMP.
Reporting: MWSI will provide a monitoring report to DENR, copied to the World
Bank. The World Bank supervision missions will summarize the status of compliance.
Implementation completion report: As part of the monitoring/impact assessment to be
done at the end of the project, the World Bank will work with DENR, LLDA, MWSS,
MWSI and other project participates to evaluate the effectiveness and implementation of
the EMP. The evaluation will be attached to the final report on the project and lessons
learned will be incorporated into the EMP and EA process for future projects, as
appropriate.
Capacity to implement safeguards: DENR, MWSS and LLDA have extensive
experience in the preparation and implementation of similar World Bank projects.
Through the implementation of the ongoing various investment projects such as the Land
Administration Management Project 1, Laguna de Bay Institutional Strengthening and
Community Participation Project and the Mindanao Rural Dev., Project- GEF Coastal
Marine Biodiversity component; and various technical assistance projects funded by trust
funds such as the Montreal Protocol Ozone depleting substances phase-out project and
the Capacity building on Persistent Organic substances, the DENR has developed
effective working procedures for coordinating investment activities. Also MWSI has
extensive experience with Bank procedures, as this project is a follow-up to the MSSP
and MTSP.
5. Identify the key stakeholders and describe the mechanisms for consultation and
disclosure on safeguard policies, with an emphasis on potentially affected people.
The proposed project has strong support from the residents and government authorities at
the national and local levels with strong commitment. Several public consultations,
including residents, were done during the EA work. The following approaches were
taken for public consultation: (a) consultation meetings with local residents,
communities, local government representatives, and (b) questionnaire analysis of public
opinion supplemented by interviews.
The environmental documents prepared by MWSI were publicly disclosed on March 17,
2006 at the InfoShop in Washington and in the Knowledge Development Center of the
World Bank Manila Office. Project related information and the EA documentations were
also disclosed in the project area during public consultation processes and to the general
public from March to August, 2006.
B. Disclosure Requirements Date
Environmental Assessment/Audit/Management Plan/Other:
Date of receipt by the Bank
03/01/2006
Date of "in-country" disclosure
03/17/2006
Date of submission to InfoShop
03/17/2006
For category A projects, date of distributing the Executive
Summary of the EA to the Executive Directors
* If the project triggers the Pest Management and/or Physical Cultural Resources,
the respective issues are to be addressed and disclosed as part of the Environmental
Assessment/Audit/or EMP.
If in-country disclosure of any of the above documents is not expected, please
explain why:
C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the
ISDS is finalized by the project decision meeting)
OP/BP/GP 4.01 - Environment Assessment
Does the project require a stand-alone EA (including EMP) report?
Yes
If yes, then did the Regional Environment Unit or Sector Manager (SM)
Yes
review and approve the EA report?
Are the cost and the accountabilities for the EMP incorporated in the
Yes
credit/loan?
The World Bank Policy on Disclosure of Information
Have relevant safeguard policies documents been sent to the World Bank's
Yes
Infoshop?
Have relevant documents been disclosed in-country in a public place in a
Yes
form and language that are understandable and accessible to project-affected
groups and local NGOs?
All Safeguard Policies
Have satisfactory calendar, budget and clear institutional responsibilities
Yes
been prepared for the implementation of measures related to safeguard
policies?
Have costs related to safeguard policy measures been included in the project
Yes
cost?
Does the Monitoring and Evaluation system of the project include the
Yes
monitoring of safeguard impacts and measures related to safeguard policies?
Have satisfactory implementation arrangements been agreed with the
Yes
borrower and the same been adequately reflected in the project legal
documents?
D. Approvals
Signed and submitted by:
Name
Date
Task Team Leader:
Mr Luiz Claudio Martins Tavares
11/28/2006
Environmental Specialist:
Ms Maya Gabriela Q. Villaluz
11/29/2006
Social Development Specialist
Additional Environmental and/or
Social Development Specialist(s):
Approved by:
Sector Manager:
Mr Keshav Varma
11/30/2006
Comments: