The Proposed Urban Sewerage System for Davao City Chapter I Introduction As early as the 1960’s, the government has already expressed concern over the environment and the protection thereof when it passed RA 3931, commonly known as the "Pollution Control Law" (signed by the President on June of 1964). More than a decade thereafter, the law was revised by President Marcos through PD 984, otherwise known as the "National Pollution Control Decree of 1976", which recognizes the need to protect the people from the growing menace of environmental pollution brought about by the socio-economic growth of society. In its statement of policy, the law expressly provides: "It is hereby declared a National Policy to prevent, abate and control water xxx pollution for the more effective utilization of the resources of this country." A year later, during the 1977 World Environment Day Celebrations in Manila, three major decrees were issued. First, was PD 1151, which explicitly defined, for the first time, a national policy of the government recognizing "the right of the people to a healthy environment." The second, PD 1152, established specific environmental management policies and quality standards as embodied in the Philippine Environment Code. And third was PD 1160, which vested in local government unit executives (particularly barangay captains) the authority to enforce pollution and environmental control laws at the local level. Meanwhile, the City of Davao, in its City Council Resolution No. 13267, series of 1997, explicitly confirms its responsibilities "xxx to ensure the treatment of wastewater xxx and to supervise the conduct of the required studies to develop the infrastructure necessary to meet its objectives." However, it is sad to note that "Davao City as of 1995", still does not have an extensive sewerage system that would take care in the processing of its liquid wastes coming from residential, commercial and industrial establishments. The usual system is through the use of septic tanks and then through the storm drainage which in turn flushes out to the rivers and the sea. There are only two subdivisions that have their own separate sewer lines. They, however, do not have treatment plants." "It is not surprising therefore to note that some of the beaches of Davao City are already considered dangerous for swimming, and Davao River, especially near the Poblacion, is highly polluted; xxx through the years is an alarming rate of increase of E-coli within the Davao River and along Times Beach near the mouth of the river. This must be due to liquid wastes discharged from septic tanks or direct through the drainage lines towards the sea and rivers", without first passing through an adequate treatment facility compliant to the DENR requirements. "Since the promulgation of Resolution No 5, by the National Economic Development Authority in 1994, requiring that municipal and industrial wastewaters be treated to the standards established by the Department of Environment and Natural Resources, there has been practically no action taken by the Davao City Council that would contribute to abating the prevailing pollution problems emanating from the municipal sources." This study then hopes to establish some relevant information that might prove useful for an intelligent determination by the city government of its position vis-à-vis the prevailing rate of wastewater pollution adversely affecting the natural water condition or ecosystem of the Davao River and Davao Gulf in general. Statement of the Problem This study aims to answer the following:
Hence, this study attempts :
Methodology and Review of Related Literature
Pertinent data were gathered from various sources, namely: on-site inspection in the different industrial and manufacturing companies as well as the proposed site; interviews, research from libraries, the Internet and from documents secured from the City Hall, Legal Office, and other public offices. Referrals from technical experts; those involved in the preservation and maintenance of the environment; and concerned private sector were done for purposes of soliciting feedback regarding the design of the proposed water facility treatment. The steps followed in conducting this study were: (1) need survey and review of literature (2) site selection and analysis (3) financial data analysis. Need survey. Need survey was made by conducting interviews with the primary clients and prospective users of the water facility treatment. Questions asked in the interview have to do with problems related to how the industrial and domestic sector treat their waste water; whether or not they maintain their water treatment facilities as it should be done as mandated by law and how they can improve their present facility so as to lessen the pollution it caused to our water system. Technical men and engineers were also interviewed for data/information on the feasibility of putting up the proposed water treatment facility. Published as well as unpublished materials related to the topic were likewise considered. Site selection and analysis. In the feasibility study conducted by the Aqua Production Technologies Company, the S.M. Group International Incorporated, it has identified the site proper for the said project, to wit: "5.4 Wastewater Treatment Plant Site Selection xxx xxx xxx (a) International Literature Wastewater comes from different sources, G. Tyler Miller, Jr., in his book entitled, "Environmental Science Sustaining the Earth", Third Edition, 1991, enumerated the three major kinds of wastewater, quoted to wit: All three categories
of these wastes are increasing because of rapid population growth, poverty
and industrialization."
"A.Industrial Wastes "23.19 Soft-Drink Bottling Wastes The wastes from the bottle-washer are highly alkaline, since the wastes consists of a series of alkaline detergent baths. Although, for reasons of economics as well as waste reduction, labels are used less than they were in the past, there are still large amounts of suspended solids resulting from straws, cigarette butts, paper and other refuse left in the bottles. This foreign matter, plus leftovers drinks in dirty bottles, is the major cause of the high BOD concentration. Wastes from the cleaning of floors, syrup-mixing and storage tanks, syrup filters, spillage, and so forth, are intermittent, and are not considered major sources of BOD and suspended solids. Wastes from water treatment will differ widely according to the quality required and the quality of the incoming water. The characteristic of carbonated-beverage wastes, taken from Porges and Struzeski [6] and Besselievre [2] are presented in Table 23.36. Porges and Struzeski also observed [6] that, in 1954, 4643 bottling plants in the United States produced over one billion cases of soft drinks, valued at well over one billion dollars [3]. During that year, the per capita consumption in this country was more than 155 bottles. Analyses of several typical wastes from this giant industry are presented in Table 23.37. Most soft-drink bottling plants are located near centers of population, so that discharge to the municipal sewer system appears to be the best means of waste disposal. Screening of wastes from the bottle-washer, to remove foreign matter left in bottles and labels if used, is something practiced as a means of solids removal. To reduce the volume of waste, some plants reuse final rinse water from the bottle-washer for prerinsing the dirty bottles, or for other uses. Removal of waste drink and debris from the bottles and removal of labels before washing yields a pronounced reduction in BOD and suspended solids in the waste water. The small amounts of waste resulting from this operation can be disposed of in various other ways than letting them escape to the sewers. The remaining wastes, although they have a high pH and alkalinity, have little or no undesirable effect on most municipal sewage-treatment processes. In the past, the waste from water-treatment plants has not been considered an industrial waste. This may have been had some basis in regard to municipal facilities, but certainly wastes from industry-owned water treatment plants are industrial wastes. In addition, the water-treatment filed is so large today that it should be considered an industry within municipal government. Recent statements by
both state and federal officials have indicated that even municipal plants
will be required to treat their wastes, because federal and state legislation
does not distinguish between sources of pollution. Cost of handling and
treating wastes from water-treatment plants should be considered as a fundamental
part of water-treatment costs. The sources of wastes in treatment plants
are: (1) filter backwash water, (2) lime and lime soda sludge, (3) brine
from caution exchange and sodium zeolite softeners, and (4) alum sludge.
Feedlot Wastes Large-scale livestock operations have removed animals from pasturage and now handle large numbers in small confinement areas (feedlot), where feed and water are brought to the livestock. Poultry, cattle and swine are the major animals involved. In a recent publication, Wadliegh (1968, 9) provides information on the amount of solid and liquid wastes produced by livestock in the United States. Liquid wastes are reported to amount to over 400 millions tons per year. The New York State Health Department has reported on the treatment of duck-farm wastes from Suffolk County, representing 6,250,000 ducks (60 to 70 per cent of the nation’s total). The waste waters from these farms contain two major objectionable impurities, manure and waste grain. Each of the 21 farms with treatment facilities has an aerated lagoon with 5-day detention, two or three sedimentation tanks in parallel with 12-hour detention (only one is used at a time while the others dewater and dry), and a chlorine contact chamber. Beet-Sugar Wastes There are five sources
of waste water at a beet-sugar plant which employs the Steffen process:
(1) the flume (transport) water, which is used to wash the beets and to
transport them from stockpiles in the factory to the site where they are
to be processed; (2) the process waste water, consisting of (a) the battery-wash
water, from the operation of flushing the exhausted (desugared) cosettes
(sliced beets) from the diffusion battery cells, and (b) the pulp-press
water, from the partial dewatering of the exhausted pulp; (3) the lime-cake
or lime-slurry residue from the carbonation process; (4) the condensate
from the multiple-effect evaporators and vacuum pans used to concentrate
the sugar solution; (5) the Steffen waste, resulting from the extraction
of sugar from the straight-house molasses by the Steffen process.
I will discuss the environmental effects of wastewater pollution. Environmental affects include: effects on aquatic life wildlife, a decrease in plant biomass, and the effects of wetlands. Effects on Aquatic Wildlife The environment is severely damaged in places due to water pollution. Water pollution has affected the ocean’s ecosystem, river, estuaries, lakes and groundwater (Bernarde, 1989). However, not only has the water pollution affected the environment, but also the species inhabiting the environment. Aquatic wildlife is one of the victims due to water pollution. One type of pollutant that affects the water is the physical effect, such as increased temperature (Benarde, 1989). As the water is released from industrial plants, about 15 to 25 mg/l, within the Xian City, heated water is released into the cool water systems (Krugger, 1997). When the heated water is discharged into the streams, the temperature of the streams increases. As a result, this may disrupt the ecological relationship between the water system and aquatic life. Even a rise in temperature of only a few degrees may be lethal to a variety of fishes and aquatic life. The death of certain species can remove the food supply of the species that prey on them and without food, they in turn will die or be forced to move downstream or to extinction. Also, most of the aquatic animals have a limited threshold on temperature changes. The abrupt temperature change may cause thermal shock to the species. Once again, since the species can not adopt to the sudden temperature change, this may cause the species to either go into extinction or migration to a more suitable environment. In addition to the adaptation problem with the temperature change, the warmed water may cause a decrease in the level of oxygen within the water. With the increased temperature and a decreased oxygen level, all chemical and biological activities are increased in terms of reaction rates. The further depletion of oxygen can affect the respiration and metabolism of aquatic plants and animals. If this continues, the stream capacity for self-purification is altered and further destruction of the ecosystem may occur. Another type of pollutant that may affect the aquatic wildlife is the chemical pollutants that are discharged into the water systems by the industrial plants in Tianjin City. There are some 5,000 separate industrial units in Tianjin City. The primary industries in Tianjin are chemical, metallurgical, textiles and electronics. Most of the chemical pollutants that industrial plants discharge are heavy metals, particularly calcium, zinc and some organic-metallic compounds, have caused a serious threat to public health and the environment. There is no wastewater treatment facilities on site and all the effluent discharged is of an unacceptable quality to the environment. The effluent contains chlorinated hydrocarbons and other toxic organic compounds and can cause a chronic environment health hazard (Xu, n/d). Most of the effluent is directly discharged into the water system such as rivers, lakes and oceans as point source pollution. If these pollutants are not at excess, the streams can self-purify. However, if the chemical pollutants are discharged at excess amounts, this will disrupt the ecosystem by the death of fishes and offensive odors can occur. The death of fishes occurs due to the chemical pollutants containing a high concentration of phosphates, nitrates, and potassium. Finally, other chemical pollutants such as metals can be toxic to the fishes inhabiting the streams. By killing off the fishes with the metal pollutants, this will disrupt the stabilization process by killing the necessary micro-flora for a healthy water system (Benarde, 1989). It is vital that an acceptable solution is found to treat this wastewater before the ground water and surrounding environment is severely polluted as well. Effects on Plant Biomass Not only is the aquatic wildlife altered due to water pollution, but the plant biomass is also altered. About 10,000 species of vascular plants are endemic to China, of which some 3,000 are in danger of extinction. With the continuous destruction of their native habitats, it is certain that many Chinese species have already become extinct. Since China is the native homeland for approximately 12% if the world’s flora, the preservation of its species is greatly important (China Steps up Wetland Protection, n/d). However, with the addition of chemical pollutants such as nitrates and phosphates in excess amounts, this can lead to algae blooms and eutrophication in the Chao Lakes and Xian City’s water systems altering China’s aquatic plant habitat. An example of aquatic alteration is eutrophication. Eutrophication occurs when the water system becomes enriched with nutrients such as fecal coliform bacteria and high concentration of chemical pollutants. The excessive amounts of nutrients can cause aquatic wastewater to the City sewers system, limited sewer collection system, and two municipal wastewater treatment plants. The entire area will cover about 240 km., 1,788 kms. of interceptors and main sewers within the city boundary, 131 pumping stations, 171 kms. of river embankments and sewage treatment plants. The Drainage Management Department (DMD), also known as Tianjin Sewerage Management will be responsible for the operation and maintenance TMG facilities (Wu, n/d). Most of the wastewater treatment plants are estimated to take on the average of two or four years for completion. However, in order for the wastewater treatment plants to be constructed, there must be sufficient funding provided. Economic Concerns for the Projects In order to undergo any large water treatment project within a country, there must be funding for the project. For the municipal wastewater treatment plants, the Camp Dresser & McKee (CDM) project coordinator made an estimated cost of about $1.35 billion US dollars. The Asian Development Bank (ADB) (Dresser, n/d) appropriated CDM to conduct a project for a municipal wastewater treatment facilities. However, for the industrial wastewater treatment plants estimated to be US$5.7 million dollars. To help fund this project, the World Bank will provide a loan of US$40 million. This loan is based on the Bank’s standarad interest rate and with a maturity of 20 years, including a 5-year grace period (Versak, 1997). Looking over the cost and funding for the overall project, we should estimate whether or not these estimations will be of a benefit for China in the long run. Currently the pollution caused by wastewater has impacted the economy in many ways. An estimation of economic losses resulting from the impact of water pollution on human health, industry, crop yields, livestock, and fisheries is large. With a negative impact on these variables, the agricultural status for the country will decline as well. Since agriculture is altered, the economy will suffer. With a decrease in fisheries, livestock and crop yields, this will also affect society in terms of jobs and profit. By proposing the projects for wastewater treatment facilities, we can prevent the degradation of the economy by saving the agricultural industry. PROBLEMS AND OPPORTUNITIES Within the problems and opportunities, we will observe the problems inflicted by the lack of wastewater treatment facilities throughout China and the possible opportunities that can be made to help alleviate the wastewater pollution problem. In order to propose a viable solution to the wastewater pollution within China, we must observe the components that contributes to the problems caused by the lack of wastewater treatment facilities. These problems include (1) the environment (2) impacts on society (3) economic concerns in building the project and (4) the agricultural economic effects on the lack of wastewater treatment facilities within China. In addition to these problems due to the lack of wastewater treatment facilities, there must be a proposal for treating the wastewater efficiently. PROBLEMS Environment In order to propose an efficient way of treating wastewater through treatment plants, we must understand the negative environmental impacts made by the untreated wastewater would affect the ecosystem nearby. We need to know exactly how the untreated wastewater would affect the surrounding ecosystems, plants to bloom at a faster rate. The blue-green algae is one type of aquatic plant. After time, as the aquatic plant starts to die off and decay, this will lead to further depletion of oxygen concentration in the streams. Also, the supply of nitrogen is the factor which determines algae growth, which in turn determines the growth conditions for the next link in the chain (zooplankton), and results in the growth of higher organisms, the existing organisms such as plant biomass will be in competition for a suitable environment, which may eventually lead to species extinction. Effects of Water Pollution on Wetlands Wetlands provide a habitat for many living organisms and plant species throughout China. Wetlands are known for their vital feeding and nesting grounds for waters, feeding areas for fish-eating birds and wintering for migratory birds. One well-known wetland within China is the Poyang Lake. This wetland has been so far listed as a national nature reserve (Smart, 1996). Within this particular wetland in China inhabits a number of worlds endangered species. These endangered species includes the Siberian Crane, Oriental White Stork, the Swan Goose and White-naped Crane. Since wetlands are nurseries for many terrestrial animals and fish species by destroying the ecosystem, with wastewater pollution, most of these endangered species can be driven into extinction. In a healthy wetland or estuary, there are microscopic plants (algae) that are often essential part of the food chain. When nutrients, particularly phosphorous from chemical pollutants, are added to the system, more algae grow. Most of the phosphorous that is being added to the water systems is discharged from nearby industrial plants. With the increase in phosphorous, it throws the ecosystem out of balance. When the algae die and decompose they can reduce the oxygen level in the water, which can kill fish and other aquatic organism within the wetlands. The algae also reduces the amount of light that is able to penetrate the water, which can affect the growth of other aquatic plants. With the continuation of wastewater pollution in China, the precious wetland habitat is destroyed affecting many animals inhabiting the ecosystem. Waste Water Treatment Plants Since wastewater affects
the environment in many ways, there must be a solution to treating and
small sized cities in China, discharging 10 billion tons of wastewater
every year (N/A, 1998). Up until now, wastewater pollution in china
is a serious concern. Therefore, it
is important to treat and recycle wastewater and encourage environmentally
sustainable economic development for the future of China"
(emphasis
supplied)
To date, like China, our country has suffered the impact of the continuous disregard of unregulated disposal of untreated wastewater. The quality of our water is fast deteriorating. Metro Manila and Metro Cebu, two highly developed cities in our country, have experienced severe water crisis that most residents are dependent on bottled water for their daily water intake. This is just the minimal effect to say the least. Water pollution has underwent an alarming stage that if no effort will be done, the continuous complete disregard will surely put humanity in great danger. The Department of Tourism thru the Development Academy of the Philippines, Institute of Public Managemen in their Environmental Management Program has outlined the present stage of our environment, quoted to wit: Physical Characteristics/Importance: 421 rivers with drainage areas ranging from 40 to 25,000 sq. Kms., 58 natural lakes and more than 100,00 has. of freshwater swamps. Concerns: Although less than 30% of the rivers in the country has been classified as being in their best usage, they are not regularly monitored in terms of their water quality. All five Metro Manila rivers namely: Pasig, Parañaque-Zapote, Tullahan and San Juan are considered as biogically dead. These rivers have have mean concentration of dissolved oxygen (DO) well bellow the DENR criteria for Class C rivers. The DO content ranges from 0.07 to 4.5 mg/L. The biochemical oxygen demand (BOD) has increased rendering the rivers fit only for navigation. Outside Metro Manila, many of the rivers in other parts of Luzon, Visayas and Mindano have been polluted in varying degrees. The Jalaur and Ulian Rivers in Iloilo and Minuyan, Lupit, Salamanca and Pontevedra Rivers in Negros Occidental have also shown some deterioration. Sugar and alcohol distilleries were among the major industries responsible for the generation of large amounts of organic wastewater primarily containing molasses, cane juice and malt. River systems in mining areas have also experienced pollution problems even in the seventies. Siltation of the waterways appear to be the major problem. Heavy metal pollution in these river systems have posed serious health problems, the common metals present in the rivers are copper, lead, zinc, arsenic, nickel and mercury. Unusually high concentrations of mercury were observed in several water bodies in Mindanao which may be attributed to the extensive use of mercury for recovering gold from ores. Other major rivers such as Cagayan de Oro River and the rivers around Cebu City exhibit high septicity as evidence by the increase in total colliform count. Lakes: Except for Laguna de Bay, the other 57 lakes in the country have not been monitored on a regular basis. For Laguna de Bay, nearly 1,000 factories generate effluents which ultimately Fertilizers and pesticides from the agricultural lands around the lake increase further the level of contamination. Siltation has made the lake very shallow. TheLaguna Lake Development Authority (LLDA) reports that the water in Laguna Lake may be variously classified as Class C to Class E. Lake Buhi in Camarines Sur which is home to one of the smallest fishes in the world has also been disturbed by the inflow of sulfuric water, domestic sewage, siltation and agricultural chemicals. Based on recent studies, the lake’s dissolved oxygen content ranges from 0.88 to 2 52 mg/L. At this level, the lake barely meets the water quality criteria from Class E water. Similar problems plague
several lakes in South Cotabato, Lakes Sebu, Lahit and Silutan show advanced
stages of siltation."
The "Clean and Green Project" by the First Lady which aims to revive the country’s dying rivers like the Pasig River; Administrative Order 74 designating DENR Secretary Angel Alcala as Chairman of the nine-member Presidential Task Force to supervise the cleaning and rehabilitation of the Pasig River. The "Ilog Ko, Irog Ko", a DENR-San Miguel Corporation joint effort in the late eighties started a campaign to clean up the nation’s rivers starting with the Tullahan River. The Laguna Lake Development Authority (LLDA) assists the Environmental Management Bureau (EMB) in the environmental regulation of the Laguna de Bay watershed. Rivers Revival Program A Rivers Revival Program
was launched because of the deterioration of surface waters. The first
project under this program, the "Ilog Ko, Irog Ko," was a multi-agency
undetaking aimed at lowering by 50 percent, the pollution load of the Navotas-Malabon-Tenajeros-Tullahan
River in Metro Manila. The project involves implementation of a basin wide
septic tank cleaning program, which is expected to lower the sewage load
from the current 26,808 kilograms BOD per day to 9,978 kilograms BOD per
day in 1992. The National Housing Authority (NHA) also plans to relocate
squatter shanties along the 26-kilometer waterway.
LEGAL MANDATES The Philippines has quite a number of environmental laws that are specifically concerned with the abatement, reduction and/or prevention of water pollution. This chapter aims to summarize these pertinent environmental laws. A. Environmental laws Republic Act 3931 of 1964, known as the Pollution Control Law, was promulgated and amended by Presidential Decree No. 984 (PD No. 984) in 1976. To enforce the provisions of P.D. No. 984, the National Pollution Control Commission (NPCC) was created and given the responsibility of preventing and abating water and other types of pollution in the country. However, the NPCC was abolished by Executive Order No. 192 (E.O. No. 192) or the Reorganization Act of the Department of Environment and Natural Resources (DENR). Section 16 of E.O. No. 192 states that the powers and functions of the NPCC are integrated into the Environmental Management Bureau of the DENR. Presidential Decree 1151 (PD1151) or the Philippine Environmental Policy mandates the government to protect the right of the people to a healthy environment and emphasizes the duty and responsibility of each individual to contribute to the preservation and enhancement of the Philippine environment. Presidential Decree 1152 (PD 1152) or the Philippine Environmental Code provides general standards for water quality management. There are also other laws that have been enacted such as Presidential Decree 424 which created the National Water Resources Council (NWRC) to regulate ownership, utilization, development, conservation, and protection of water resources; PresidentialDecree No. 1160, which vested authority in barangay captains, councilmen, and zone chairmen to enforce the pollution and environmental control laws including those concerning water use; and Presidential Decree 856, which authorized the Department of Health (DOH) to protect the public from hazards that may be caused or brought about by water pollution.
FACTUAL SITUATION
Davao City (DC) is one of the largest cities in the world. It has a total land area of 244000 hectares divided into three (3) districts and represented by one local government. Through the years, DC went through a vigorous industrial development but has maintained it suburban air. For the many, DC caters the best of both worlds – that is the highlights of urban living and the harmony of rural life. At its present state, DC has amazingly shown a remarkable achievement in regulating the upkeep and maintenance of its water resources. To say the least, DC water has ranked second internationally and its local water district bagged the number one title in Asia and the Pacific Region for water utility. The city officials claim that, these achievements have much to do with the people, the government and the environment itself. Like any other developing city, DC is not without the bad leg. From the list of bureaucratic red tape, dirty politics, poverty, graft and corrupt practices starting from the line of traditional politicians down to the most unpopular block who peddles the street for cheap leftovers. . . Yes, DC is not spared from having to contend with the many problems the world is facing today. In short, DC cannot be summed up by simply coveting the title of "the most livable or the cleanest city in the Philippines". We also have pressing issues to face and precautions to undertake before we can safely arrive at the future of our present. Let us face it, a developing city means a turn-about from the natural charms of the environment. Industrialization means a way to artificialize the natural amenities of nature. It means hundreds of short cuts and elegant conveniences owed from scientific and technological ventures. It is a fact of life that industrial development brings about all kinds of pollutants or toxic substances which slowly work in tipping the balance in the ecosystem including the water system. The modern world is faced with the issues of pollution – how to stop, minimize or prevent it from totally destroying the earth. DC in its dream to achieve a more stabilized development, also becomes a victim of the detrimental effects brought about by industrial pollutants into its water. This is all because a city in the boom always has its consequential damage to a once diverse and perfectly natural environment. Categorically speaking, this is where the government takes its tool in preventing a future doom lamented by the regression and catastrophic changes in the environment. The focus of this project, however, is the present state of the DC water in relation to the sharp implications of industrial wastes. Quoting from the feature on "Wastewater Pollution in China", the lack of clean water has always been an issue of environmental concern all over the world, this environmental issue is mainly stresses in developing countries today. The main sources of water pollution are: Industrial (chemical, organic and thermal wastes)" . . . xxx, and agricultural (animal wastes, pesticides and fertilizers)" . . . . Unlike China, DC is still enjoying the best drinking water today. But this does not mean that we will not eventually arrive at the same predicament China experienced. According to Engr. Patnugot of the Environment Management Bureau, DC water is still in its viable state but we could not expect to have the same drinking water several years from now because whether we know it or not, our water resources are slowly suffering from the onslaught of water pollution. The situation here, according to Engr. Patnugot, is that there are dangerous amounts of wastewater pollution which go directly to Davao City rivers and other water beds untreated. The Department of Environment and Natural Resources (DENR) Industrial Effluent Quality Monitoring Report in 1998 (Annex "A") shows that more or less 50% of the industries in DC have the Davao Gulf receiving waterbody. This means that wastewater pollution from the industries are one of the responsible contributions to the existing pitious plight of the Davao Gulf. In the same report, the following are among the list of industries receiving waste waterbody: Sirawan Creek, Kilono Creek, Sirawan River, Bunawan River, Talomo River, Bago Creek, Tamugan Creek, Panacan Creek, Davao River, Malagos River, Leong Creek, Bato Creek, Catalunan Creek, Marapangi River, Lipadas River, Calinan River, Libby Crreek, Likanon Creek, Binugao Creek and Tugbok Creek. Other industries have impounding ponds, sewage, septic tanks, the city drainage, city canal, settling tanks, and the subsurface soil (LS Properties, INC.) however some opted for recycling and the oil-water separator in the conduct of facilitating the flow of ther wastewater. It is noticeable that most of the industries dispose of their waste watrer into DC’s main sources of domestic waters. It is also worth noting that several of these industries have failed to pass the effluent standards set by the DENR in testing the quality of their wastewater facilities (refer to Annex "A"). But when the EMB was asked as to the effect of wastewater pollution contaminating DC’s bodies of water, it contend that the industries should not be blamed by the amount of water pollution affecting our golf and creeks today. The blame should be printed towards the municipal wastewaters which emit largely of sewage consisting of human wastes, other organic wastes and detergents. Engr. Patnugot would say that the industries are safely monitored in the conduct of their waste disposal. The government can have an easy access to their operation and the same can always order its closure or demand that they comply with the environmental standards in disposing their wastewater, whereas, the government does not have the same control over municipal or domestic wastewater disposal. It is sad to note, says Engr. Patnugot, that a good number of DC residents disposes their human waste direct to the river. And it is quite impossible as of the moment for the government to cater to the said problem since there is yet no medium provided by the government in monitoring the flow and disposal of municipal wastes. Unlike the industries, the local government of DC has at least taken control of over 70% of their waste by keeping a careful tab on business establishments wastes through a system of compliance put up by various agencies. (Note that the 70% statistical rate is not reliably accurate.) – this is merely speculative. Nevertheless, EMB maintains that industrial operations must not be given the biggest burden of the blame on the amount of wastewater contamination plaguing the future of our waters today. However, DENR has come up with categories in industrial compliance with a system of monitoring the discharge of wastewater pollution. Attached herewith is DENR’s copy of the Status Report for Industrial Environmental Compliance as of December 31, 1999 (Annex "B"). The same was handed out by the EMB to show the veracity of its claim. In the said report, categories are assigned to each amount of compliance attendant to certain industries which are deemed to engage in the discharge of wastewater. The DENR uses codes to determine a certain degree of compliance (Annex "C") for every establishment enlisted. Please refer to Annex "C" for clarity. In Davao City, not all industries are engaged in the discharge of wastewater pollution. It is common knowledge however that pollution takes a number of forms which practically covers all phases of matter – solid, liquid and gas. But our main concern here is the liquid form of waste materials or even the solid ones which undergo decomposition in our bodies of water. For comparison, we have the Pasig River and the Laguna de Bay which are tragically industrial, municipal and agricultural wastes. The Pasig River and the Laguna Lake would eventually mirror the future of the Davao Gulf if we keep on predicting the unhampered disposal of waste materials to the said body of water. Even the EMB agrees that to a certain point, DC will eventually arrive at the stage where its waters would no longer be fit for drinking. If the Davaeños will not be able to create a healthful change in the disposal of their wastes, DC will eventually reach the point whereby all sources of water are a danger to life already. This is because, according to Engr. Patnugot, we are already slowly moving towards that direction. Our movements may be slow but we are sure to arrive there. Just take a look at the proliferation of subdivision projects, newer and more highly technological industries, the development and methods of growing plants and livestock. All these would mean bigger amounts of wastewater discharges. Another implication of these developments is the growth of DC population. More disposes waste matters. Therefore, everything seems to redound into polluting the earth or in a smaller scale; DC is really going into the direction of polluting itself. Some industries however, are sensitive enough in considering the plight of the DC waters. Some of these industries are the Coca-Cola Bottlers Philippines, Cosmos Bottling Philippines, Univesal Richfood Corporation, Davao Central Chemical Corporation, Davao Susana Farms, etc. (refer to Annex "B" with compliance Status Code "F"). The foregoing establishments have their own water treatment facilities. This means that before wastes are discharged into the DC bodies of water, they are already treated. But we have to take into account that the maintenance of these treatment facilities are so high and expensive. Lets take for example the Davao Medical Center (DMC), the said hospital is known to engage in incineration process but of course, wastewaters could not be treated the same way, so they are directly disposed untreated. As of late, a group abroad has donated a wastewater treatment facility to DMC. The said institution could not help but appreciate the value of the said facility. But it could not afford to maintain the same because of its high cost. So what happens now, DMC merely set aside their waste treatment facility and goes on with their usual practice of incineration. Practically, the industrial sector is faced with the dilemma on how to maintain a waste treatment facility when the same costs too much. Another thing, it would be hard to believe that all of the DC industrial or agricultural establishments have their own waste treatment program. In DENR Industrial Environmental Compliance Status Report (Annex "B") only one has been categorized as in need to install their waste treatment program (U-mix Concrete Aggregates). But take note that there are still several industries which are yet to undergo a survey from the DENR (refer to those having "SS" code for Compliance Status, Annex "B"). It would then be safe to infer that the list of those who fail to pass the compliance requirement may still increase. It is also safe to consider that not every establishment (industrial or agricultural) are closely monitored by the DENR. Violations of certain standards could never be eradicated totally in a system where no strict administration is given. Let us face it, DC government has its flaws. It is basically generated from the insufficiency of laws and execution stemming from the central or national government itself. The fact is, the Davao Gulf and several bodies of water in DC are slowly affected by the rise of industrial and agricultural development. It is true that we have monitoring bodies and certain laws to monitor the existence of these industries but as to extent of its execution, nobody has come up with a graphical data on the city officers performance level. The root of the problem stems from a lot of causes and these causes generally increases as DC opted for more advance development and industrial investments. DC is faced with a very pressing issue today – that is, how to reach the future without endangering even more the plight of our waters today? (b) Agriculture The factual data presented in the industrial setting are also applicable in DC agricultural business. The DENR did not seem to separate one establishment from the other in terms of the nature of each business. Based from the Status Report (Annex "B") and the Quality Monitoring Report (Annex "A"), the performance of the Agri-Business in terms of waste disposal are also within the same framework as all the other industrial firms. What is important to note here is that the agricultural sector are responsible for the discharge of wastewater pollution In the form of animal wastes, pesticides and fertilizers. In Annex "A", Nest Farms failed to pass the DENT Effluent Quality Standards in the discharge of its waste. This would show that, to a certain extent, the agricultural sector in DC are also to blame in the amount of contamination polluting out waters today. Table 1. Demographic Information Based
on the Population Projection by the National Statistics Office
Table 2. Household by Kind of Toilet Facility Being Used in Davao City Based
on 1990 Census
ANALYSIS A large fraction of the city’s population reside in the urban and urbanizing areas. As shown in Table I, forty-seven percent (47%) or a total of 556831 are found in the first district, that in fact occupying only about 12557.41 hectares of land and only about 51.4% of the total land areas of the city. Gross density therefore in this area is relatively too high as compared to the other two districts. As these facts reveal, it can be concluded therefore, that in the above mentioned area (District I), due to its high density, its waste disposals can no longer be absorbed by both the soil and water resources without altering its natural composition. Furthermore, based on the data published by the Office of the City Planning and Development Office, (Comprehensive Development Plan 1996-2021) the only method of water waste disposal is draining through the septic vaults which then pass to the storm drainage and finally to the rivers and the Davao Gulf. It is further noted that though there is an existing sewerage system in the city, there is yet no system as to the treatment of all the water wastes disposed by the households. In fact, not even subdivisions in the city have their own treatment system/ plant. Thus, it is not surprising that there is in fact an alarming increase of E. coli and other pollutants within the Davao River and along Times beach near the mouth of the river. These must be due to the liquid wastes discharged from the septic tanks or direct through the drainage line towards the river and sea. Chapter V DAVAO CITY PROGRAMS AND INITIATIVES ON SEWERAGE AND LIQUID WASTE MANAGEMENT The absence of an adequate sewerage system that would take care in the processing of its liquid wastes coming from residential, commercial and industrial establishments is fully recognized by the City Government. The usual existing system is through the use of septic tanks and then through the storm drainage. There are only two subdivisions that have their own separate sewer lines. They, however, do not have treatment plants. To address this concern, the Davao City Government formulated an integrated sewerage and liquid waste management program. This program and other initiatives along this concern is best reflected in the Comprehensive Development Plan of Davao City (1999-2020) and the Environmental Sector Report of the Davao Integrated Development Program (DIDP) Master Plan. It forms an important component of a comprehensive development plan of the City and the DIDP area for the environment sector. The City integrated sewerage and liquid waste management program aims to safeguard the health of the citizenry and protect the City’s waterways, beaches, and other water resources from the palliative effects of human and industrial wastes. Its objectives include the immediate reduction of the pollution caused by human and industrial wastes and to provide an effective sewerage system in the city. The targets of the city sewerage and wastewater management program are:
Analysis of the Feasibility Study
The following are the salient features of the said feasibility study: Since the promulgation of Resolution No. 5 by the National Economic Development Authority in 1994, requiring that municipal and industrial wastewaters be treated to the standards established by the Department of Environment and Natural Resources (DENR), there has been practically no action taken by the Davao City Council that would contribute to abating the prevailing pollution problems emanating from the municipal sources. EXISTING TREATMENT FACILITIES The existing Davao City municipal wastewater treatment facilities are inadequate. Within the older parts of the urban area, especially the central business district of Poblacion, these constitute a combination of illegal surface or underground discharges and old, often dilapidated septic tanks. New residential subdivisions, on the other hand, located in the outlying west, north and east areas, are typically equipped with more up to date septic tank systems. However, septic tanks discharging directly to the sewer system do not provide adequate treatment relative to the DENR requirements. POTABLE WATER CONSUMPTION According to the "Comprehensive Development Plan" as of 1995, 53% of all Davao City households were served by the Davao City Water District (DCWD) piped water system; and according to the projection of the DCWD, the proportion will be substantially greater in 2005. This water is of good quality, partly coming from the Dumoy area well fields. WATER RESOUCES According to the "Comprehensive Development Plan", Mount Apo serves as the recharge point and the areas at the foot of the mountain contain large reservoirs of good quality drinking water. This ground water is expected to meet the needs up to the year 2000. After that date, the City should regulate cautiously the drilling and wells' operation in order to prevent saltwater intrusion. B. WASTEWATER CHARACTERISTICS I. Municipal Wastewaters The World Bank report assumes the organic unit load (expressed as biomedical oxygen demand) to be equal to 40g/capita/day. From the researchers' experience, this is a low value by Southeast Asian standards. The preliminary design of treatment facilities by the APTCO has therefore been based on more conservative values- 60 and 73 g/capita/day for BOD and SS respectively. II Industrial Wastewaters Most of the Davao industrial
output is related to food processing and this through small-scale operations,
many of which are located within the central business district. Larger-size
industries either already have, or soon will have, installed their own
pre-treatment systems.
Summary
of Design Parameters
Notes: 1. Protected Waters, Category II, Class B (DENR admin. Order No. 35) 2. Refer to 4.1.1. for criteria A. TERRITORY AND POPULATION Davao City has an area of 2,440 square kilometer along the Gulf of Davao. The shape is roughly rectangular, oriented North-South. Its largest dimensions are 65 km. on the north-south axis, and 50 km. on the east-west axis. The total population was 849,947 in 1990 for an overall density of 3.5 pop./ha. A study of the World Bank in 1996 forecasts a population growth of 60.4% between 1990 and 2015, which would give a population of 1,363,300. The population is mainly concentrated in the urban area along the Gulf of Davao. B. COLLECTION AND TREATMENT MASTER PLAN The present wastewater collection and treatment master plan should
take into account the population density, since, (1) a given density is
required for the population to be able to afford the cost of the collection
network, and; (2) an individual environmentally safe wastewater disposal
system is more easily feasible in a light density area.
Selected
Districts and Barangays
According to the master
plan, the wastewater of the most densely populated areas of Davao City
would be treated at four (4) different Wastewater Treatment Plants. The
number of four plants has been chosen for the following reasons :
The other districts
and barangays which will eventually be connected to the other plants are
the following :
General
Layout of the Master Plan (2015)
The area connected to
the Bolton Bridge Treatment plant can be subdivided into three sub-basins,
two on the east bank of Davao river and one on the west side,
Summary
of Collection Network Characteristics
Table
4.1 (continued)
Six pumping stations or lift stations are needed to allow for the pipe slope required to avoid sedimentation while limiting excavation depth to acceptable values. D. COMMUNAL TOILETS Some 131 communal toilets will serve the area south of Quezon boulevard and possibly some other small areas occupied by squatters. Those toilets will be located 71 m. from each other so that each toilet will serve an area of half a hectare and the longest distance to a toilet will be 71 m. without any shortcut. According to the average density of the area, each toilet will serve an average of 350 persons. The toilets will be connected to the transportation sewer network by gravity or by pumping. They will be equipped with a convenient number of private stalls, public urinals, handwash sinks and possibly showers and laundry tubs. WASTEWATER TREATMENT PLANT A. EFFLUENT STANDARDS Any wastewater treatment plant situated within the confines of Davao City and discharging its treated effluent into an aquatic environment, would have to meet the effluent quality standards set out by the Department of Environment and Natural Resources in its Administrative Orders No. 34 and 35 (series of 1990). These standards cover largely conventional pollutants, with no requirement for nitrogen or phosphorus removal. B. WASTEWATER TREATMENT SYSTEM Subsequent to a technico-economic evaluation of several alternatives, the Sequencing Batch Reactor (SBR) process has been shown to be the most attractive treatment option in terms of its capital cost, which amounts to 9.9 million US$. It has been found out that the SBR process is the most economical treatment alternative and id thus proposed for the treatment of Davao City's wastewater. With the recent advances in control technology, SBR systems have become recognized for their inherent mechanical simplicity and high degree of treatment achievable with no or little attention on the operator's part. Equally, by virtue of its "batch" operation, the SBR process is actually taking place under controlled, steady conditions and is thus not exposed to freshly arriving wastes, as in conventional systems. This renders the process virtually immune to shock loads and upsets. Basically, the entire treatment process takes place in a single reactor on a batch fill-and-draw basis under an automatic control, monitoring and scrutiny. Multiple reactor units are typically installed. The sludge produced is usually older than that from the conventional process but may not be quite as stabilized as in the extended aeration system. C. SLUDGE DISPOSAL, QUANTITY AND CHARACTERISTICS The sludge produced by the treatment plant can be transported to a sanitary landfill. The estimated sludge quantity, produced by the SBR process, is approximately 15t/day, dry solids basis. This corresp9onds to 75 cubic meter/day of dewatered sludge at 20% solids content. The sludge produced would be an old, inoffensive, well stabilized sludge with a minimum sludge age of 20 days. It would be free of pathogeni9c bacteria. Its pH would be approximately 7 and it would be rich in nutrients such as proteins, nitrogen, phosphorus, potash and in alkalinity. There is no reason to expect it to contain undue concentrations of heavy metals. The dewatered sludge solids content would vary from 15 to 20%. D. WASTEWATER TREATMENT PLANT SITE The best potential area is the site located in Bucana, by the Bolton Bridge, on the west bank of the Davao River. It is privately-held piece of land, partially occupied by an agricultural college and its vacant space amounts to some 3 or 4 hectares or 6 hectares with an extension towards the Gulf. There are no squatters on the site, aside from the 2 or 3 families in north-east corner. A treatment plant at this location could easily receive sewage pumped from Poblacion across the river, and could discharge its treated effluent into the estuary right next to it. The main disadvantage of the site, of course, would be its high purchase cost. E. COLLECTION AND PUMPING SYSTEM The study shows that the collection and transportation of the wastewater of the most densely populated area of Davao is feasible and would cost 1.148 million pesos or 30 million US$. The best layout has been found out to be the separation of the whole area into three sub-basins, each with a pumping station, pumping directly to the wastewater treatment plant on the west bank of Davao River. The wastewater collection
and treatment for a population of 310,300 persons in the most densely populated
part of Davao is estimated to be approximately 39.9 million US$ excluding
cost of resettlement, land, financing, duty and tax."
The city government under the administration of then Mayor Rodrigo R. Duterte was already in the sate of finalizing the Memorandum of Agreement with the World Bank regarding the long-term loan in the amount of approximately Php2.3B for the sewerage project. Since the sewerage project was not part of the fifteen-point agenda of the present administration, it was temporarily shelved. The idea was to get a long-term loan from the World Bank with the city government as principal borrower. The Davao City Water District (DCWD) will be the collecting agent and will get the fees for wastewater collection and treatment form the water bill that the residents are paying to the DCWD. There was also a "willingness to pay survey" conducted from the affected establishments and the support was overwhelming. Architect Esquerra added that today is the most ideal time for the construction of the wastewater treatment facility because the fewer the pollution, the better and the city can afford it. Indeed, the idea of
having a wastewater collection and treatment facility is possible and timely
to address the problem of environmental degradation of shorelines and water
quality.
This is why this study would be of great help in the determination by the city government of the high right of wastewater pollution which has adversely affected the natural water condition or ecosystem of the Davao River and Davao Gulf in general. Treatment Master Plan The existing waster water collection and treatment master plan should consider the density population since the same is required for the population to be able to afford the cost of the collection and an individual environmentally safe wastewater disposal system is more easily feasible in a light density area. According to the master plan, districts and wastewater treatment plants are: Plant 1 - whole Poblacion District Plant 2 - Bayabas crossing, Toril proper, Daliao and a part of Buhangin District Plant 4 - Matina Crossing, Matina Aplaya, Talomo and Ma-a of Talomo District However, Poblacion District and other must densely populated areas of the surrounding Districts should be given a priority because of the population density and limitations of on-site sanitation possibilities, presence of large commercial establishments and institutions such as schools, hospitals, colleges, universities and government offices, health hazard by increasing wastewater flow in the municipal stormwater, network, high level of urban development with a population density that can afford to pay for the wastewater service charges and risk of pollution to Davao City beaches. Implementing and Regulatory Agencies The Pollution Control Law of 1964 (RA 3931) was promulgated and amended by Presidential Decree No. 984 (PD No. 984) in 1976. For the enforcement of the same, there was created the National Pollution Control Commission (NPCC) which was given the responsibility of preventing and abating water and other types of pollution in the country. However, the NPCC was abolished by Executive Order No. 192 (EO No. 192) or the Reorganization Act of the Department of Environmental and Natural Resources (DENR) which integrated the powers and functions of the NPCC into the Environmental Management Bureau of the DENR. The Philippine Environmental Policy (PD 1151) was promulgated to protect the right of the people to a healthy environment. This law was promulgated to emphasize the duty and responsibility of every individual for the preservation and enforcement of the Philippine environment. The Metropolitan Wastewater and Sewerage System (MWSS) was created and given the power to issue such rules and regulations necessary by sanitary sewers and for water and sewer service protection within its jurisdiction. The National Water Resources Board (NWRB) was created and given the task of implementing the laws and regulations on the conservation, utilization and management of surface and general waters. a. Feasibility Criteria
The World Bank thru the International Bank for Rural Development will grant to and in favor of the Land Bank a loan in the principal amount of FIFTY FOUR MILLION FIVE HUNDRED THOUSAND DOLLARS ($54,500,000.00), US Currency, for the specific purpose of relending to local government units in the improvement of sewerage, sanitation and drainage services within the areas of their jurisdiction. According to Mr. Hector Esguerra of the Davao City Planning andd Development Office, the peso equivalent of the principal amount will be P2.3 Billion (Foreign Exchange Rate = P42 : $1). This loan will cover the construction and other costs of the proposed sewerage system for five cities in the Philippines, including Davao City (City). The Land Bank will grant to and in favor of the City a term loan or a sub-loan, usable as Letter of Credit (L/C) Line. This shall be exclusively used to finance the construction, installation and implementation of the World Bank Water Districts Development Project - Sewerage, Sanitation and Drainage Component (WDDP-SSD). The principal amount to be granted to the City has not yet been determined because this matter was taken out of the agenda of the 11th City Council per Resolution No. 14063, dated May 26, 1998, and was returned to the Local Executive Depertment with the suggestion that the matter be taken up by the 12th City Council, considering that the proposal involves a large sum of money. There is as yet neither an agreement with the World Bank. However, the City Planning and Development Office expects Php500 Million financial assistance. The following are the salient features of the sub-loan: 2. It shall have a termof twenty (20) years, inclusive of five (5) years grace on principal payments. 3. The repayment of the principal shall be in sixty (60) equal quarterly payments to start at the end of the twenty-first (21st) quarter from the date of release. 4. The World Bank standard interest rate, based on variable US$ single currency at the time of availment, shall be capitalized for the first twenty (20) quarters and included in the principal while the eight percent (8%) interest rate shall be paid at the end of each quarter from date of release/drawdown for the first twenty (20) quarters; and the fourteen percent (14%) interest payment to start in the twenty-first (21st) quarter from date of initial release. 5. The City shall maintain:
For the COLLECTION system, the total estimated cost is 1.15 billion Pesos or 30.0 Million US $ for the three sub-basins, considering an inflation rate of 20% since 1996. However, this excludes the costs of land acquisition, financing duty and tax. The summary sewer costs, as well as the cost of house connections, collector pipes, transportation pipes and pumping stations for the three sub-basins are as follows: Table 1 SUMMARY OF SEWER COSTS1 SUB-BASIN
1
SUB-BASIN
2
SUB-BASIN
3
1 Excluding cost of land, financing, duty and tax. For the TREATMENT system, four alternatives were initially considered, namely: Extended Aeration, Conventional Activated Sludge, Sequencing Batch Reactor (SBR) and Aerated Facultative Lagoon. The Aerated Facultative Lagoon treatment option has been eliminated due to its excessive land requirements, doubtful quality of effluent produced and excessive digested gas emissions. The remaining options, as compared, show: Table 2 COMPARISON OF DESIGN ALTERNATIVES A
Due to its relatively high costs, the Conventional Activated Sludge process has been rejected. Thus, the option has been narrowed down to the Extended Aeration and SBR, which have been compared as follows: Table 3 COMPARISON OF DESIGN ALTERNATIVES B
1Excluding costs of resettlement, land, financing, duty and tax; 1999 prices, exchange rate = 38.30 Pesos to 1 USD.
Table 4 BREAKDOWN OF COSTS ANNUAL OPERATING COSTS
1 Excluding costs of sludge disposal. CAPITAL
COSTS2
2Excluding costs of resettlement, financing, land, duty and tax; 1999 prices, exchange rate = 38.30 Pesos to 1 USD. The SBR process is proposed
for being the most economical treatment alternative. This process entails
a total estimated cost of 379 Million Pesos or 9.9 Million US $, excluding
the costs of resettlement, land, financing, duty and tax, and an operating
cost of 76 Million Pesos or 1.98 Million US $ per year, excluding the cost
of sludge disposal.
Table 5 REPAYMENT
SCHEDULE
2 Annual interest rate for the first 5 years is 8%; for the next succeeding years, 14%, based on the outstanding balance of the principal amount. 3 Debt service requirement is the aggregate of the repayment of the principal and payment of the interest. d.2 Financial Indicators (a)
Current Ratio
current assets Current ratio = --------------------- current liabilities Table 6 Current
Ratio
Total debt Debt ratio = --------------------------- Total capitalization Table
7. Debt Ratio
The annual operating expenses for the project is estimated at US$1,985,000 or P83,370,000 (Foreign Exchange Rate = P42 : $1). The average debt service requirement is P57,960,000. The ratio which the City is required to maintain is not less than 2.0. The annual revenues which the City is required to generate in order to maintain a ratio of not less than 2.0 is computed as follows: Revenues - Expenses Required ratio = -------------------------- Debt service requirements Table 8. Internal
Cash Generation to Debt Service Requirement Ratio
Revenues - Expenses Required ratio = ------------------------ Capital expenditures Table 9 Internal
Cash Generation to Capital Expenditure Ratio
Net investment Payback period = ----------------------- Annual cash return Net investment represents the inital cash outlay that is required to obtain future returns or the net cash outflow to support a capital investment project. Annual cash returns are the cash inflows expected from the operations of the investment. Given the net investment and the non-uniform annual cash inflows, the payback period for the sewerage project is computed by cumulating the estimated cash in flows and determining the point at which they equal in the investment outlay. The cash in flows are uniform for the first five years which equal Php816,850,000 while those for the succeeding fifteen (15) years are not, which equal to Php3,318,050,000. Thus, the payback period is computed as follows: 1,526,369,900 – (5*163,370,000) Payback period = 5 years + ------------------------------------------ 3,318,050,000 = 5.21 years The estimated capital cost can be recovered in about 5 years. It must be noted, however, that the projected costs given by the SM Group International are quite unrealistic since these exclude the cost of land acquisition, financing, resettlement, duty and tax. Given the variances in the foreign exchange rate and the prices of materials, the projected made by the SM Group International as to the capital costs may not be entirely relied upon. If locally produced materials are considered for the treatment and collection system, the city may but on its costs since import duties may be lessen. The local government may even seek discounted prices from local suppliers does the payback period may reach as much as ten (10) years, if not more, or it may indeed be lesser than projected if other factors are taken into account. The rate and efficiency of collection of fees from the connected persons or households must also be considered otherwise the payback period will be unreasonable. This figure also means that if the project will be implemented, more diligent effort must be exercised to devise measures to raise revenues in order to shoulder the costs of construction, not to consider the expenses to be incurred to operate and maintain the same annually. Note, however, that the payback determines only the period for the recovery of the investment, and not the loan, including interests. d.3 Fees Collection The priority areas for the sewerage project are the main thoroughfares and slums in the Poblacion, Agdao and Talomo. Connection with the wastewater treatment and collection system is compulsory with respect to persons or households situated within the 35-meter area from the pipes or lines on both sides. Others may apply for voluntary connection. The fees to be charged will be based on the discharge or flow, the rate of which will be determined by meters installed for every household. The City shall charge as minimal fees as possible, taking into consideration the capacity and willingness of each household to pay, the expected annual cash inflows to pay off the amount of loan, the possibility of raising taxes and other sources of revenues, the profitability of the City and the effectivity of collection, among others. The projected population in the Poblacion, Agdao and Talomo for the year 2000 is 556,831persons and 104,806 households, with an average household size of 5.3 persons. Based on the projections of the National Statistics Office, as reported in the Davao City Planning Comprehensive Plan for 1996 to 2021, the estimated fees to be charged per household or household member annually are as follows: Table 10. Estimated
Fees Per Household
It appears that the fees may be reasonable at first glance. However, since the cost on which the expected revenues are based do not include the cost of land acquisition, financing, resettlement, duty and tax, the charges may be more than the figures shown. Thus, the more realistic charges may be unreasonable on the part of the household which may be required to pay them, therefore, there must be means on how to curtail the burden of the municipal or residential sector. Located within the target areas are several business establishment without wastewater treatment facilities, considering that most of these establishments are neither agricultural nor industrial, which are required by the EMB to install their own treatment facility. These establishment can be sanctioned to share in the burden of paying treatment and collection fees, by requiring them to apply for connection. Moreover, business establishments under the regulatory powers of the EMB but are non-compliant with the minimum legal requirements for operating a wastewater treatment facility, can also be given the option to apply for connection in the treatment system, in lieu of the compulsion of the EMB standards, if they can not reasonably comply with the same due especially to financial constraints. To be able to generate the expected revenues from the operation of the sewerage system for the purpose of paying off the long-term debt and interest payments for 20 years while maintaining a required ratio over the debt service requirement, the following are some recommendations: b. Business establishments located within the same area and which are not compliant with and/or not covered by the EMB requirement of a treatment facility shall also be charged, but with relatively different fees than those imposed on households. c. Devise revenue raising projects to augment the sources of financing the sewerage system, such as adoption of the polluter pay principle as a long-term measure of requiring persons who generate wastewater and mission gases to pay for damages caused to the environment. Polluters must pay for the installation of pollution control devices. d. Cut on the revenue
allotted to other non-priority projects and apply the revenue to the sewerage
project.
Like most long-range infrastructure projects, the proposed sewerage project, composed of treatment and collection systems, will likely incur loses for the first few years of its operations. Once the City pays off the initial investment therefor, it may thereafter recover the costs of the long-term debt incurred for the purpose. The purpose for the term of the debt is to allow the City to devise measures for the payment of amortization of both the principal and interests, while seeking to generate profit at the same time. Hence, while it may seem remote to be able to raise as much annual cash returns for the payment of the debt, this must not draw us back from considering other possibilities to generate so much, such as local government reserves, tax collections, revenue allotments from national sources and major income generating establishments, and innovative campaigns. Legal and Management Aspects A. Legal Aspect - City Government of Davao The City government of Davao asserts positively its responsibility to "ensure the treatment of waste water..... and to supervise the conduct of the required studies to develop the infrastructure necessary to meet its objective," when it enacted Resolution No. 13267 , series of 1997. Under Section 2 of Davao City Ordinance No. 5026 approved on January 29, 1998 , then Mayor Rodrigo Duterte was authorized to make all related negotiations for the Davao City Urban Sewerage and Sanitation Project in connection with the loan facilities of the World Bank. Resolution no. 14063 of the 11th City Council approved on 26, 1998 zeroed in on the need for the 12th City Council to further deliberate on the matter concerning the Subsidiary Loan Agreement between the City of Davao and Land Bank of the Philippines, and the Loan Agreement between the Land Bank of the Philippines and the World Bank. The Subsidiary Loan Agreement was for the specific purpose of relending to the city government in the improvement of sewerage, sanitation and drainage services. In an interview with Architect Hector Esguerra, Assistant Department Head of the Davao City Planning Council, he revealed that the urban sewerage project ( with waste water treatment facility as its main component ) is not part of the fifteen (15) point agenda of the present administration. Consequently, the proposed urban sewerage project was temporarily shelved for now. Since Davao City even as of 1995 still does not have a sewerage system that would take care in the processing of its liquid wates coming from residential, commercial, and industrial establishments, interim solutions were suggested to be formulated for immediate implementation, such as :
B. Management Aspect Architect Esguerra declared that if the urban sewerage project will become operative, its management will be under the care of the city government itself in partnership with the Davao City Water District (DCWD) for collection of sewerage fees. C. Analysis C.1. Legal Aspect There is a need for the 12th City Council to make parallel legislations in pursuance of what had been started by the 11th City Council under then Mayor Rodrigo R. Duterte. C.2. Management Aspect To build, operate and
manage the urban sewerage project including the waste water treatment facility
is a burdensome and laborious tasks to the city government. As such, the
city government should look into the advisability of entering into a contract
of agreement with independent contractors under the Build-Operate-Transfer
(BOT) Law (RA 7718).
Chapter VII Summary and Recommendations After reconsidering the existing water pollution control situation in the municipal or residential areas, industrial areas and agricultural areas vis-à-vis the legal and practical demand for combating the effects of water pollution as well as the local government initiatives and plans, we have come up with the following recommendations:
The waste disposals method is limited to draining through the septic vaults, which allows wastes to pass through storm drainage and finally to rivers and the Davao Gulf, causing an alarming increase of E-coli and other pollutants therein.
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