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:

  1. What reactions/responses does the existing rate of wastewater pollution draw from the concerned government officials/offices such as the City Environment and Natural Resources Officer (CENRO), the Environmental Management Bureau (EMB), the Davao City Development and Planning Coordinator (CDCP), the City Council Committee on Environmental Protection (CCCEP), and the City Health Office (CHO) in terms of policy formulation or determination of program priorities by said agencies/officials?
  2. What are the perceptions/views of the Environment and Natural Resources Officer (CENRO), the Environmental Management Bureau (EMB), the Davao City Development and Planning Coordinator (CDCP), the City Council Committee on Environmental Protection (CCCEP), and the City Health Office (CHO) regarding the prevailing rate of wastewater pollution in the Davao River and Davao Gulf?
Objectives of the Study

Hence, this study attempts :

  1. To determine/find out the responses of the concerned government/agencies/officials regarding the prevailing rate of wastewater pollution in Davao City in terms of policy and program formulation or determination of program priorities;
  2. To find out the perceptions/views of said governments/officials regarding the existing wastewater pollution problem;
  3. To find out the desirability/necessity of the installation of wastewater treatment facility by the city government;
  4. To identify possible/probable site(s) on which to install said treatment facility.
Chapter II

Methodology and Review of Related Literature

  1. Methodology
This study made use of action research. The purpose of action research is to solve problem through the application of the scientific method. It is concerned with a local problem and is conducted in a local setting. The primary goal of action research is the solution of a given problem, not contribution to science (Gay, 1992).

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

The best potential area found turned out to be a site located in Bucana, by the Bolton Bridge, on the west bank of the Davao River. It is a privately-helad piece of land, partially occupied by an agricultural college and its vacant space amounts to some 3 to 4 Ha or 6 Ha with an extension towards the Gulf. There are no squatters on the site, aside from the 2 to 3 families, occupying its 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. We have, nevertheless, retained this site for the purposes of this study." B. Review of Related Literature

(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:

"In its passage through the hydrological cycle water is polluted by three major kinds of waste. One is the sediment washed from the land into surface waters by natural erosion and greatly accelerated erosion of soil from agriculture, forestry, mining, construction, and other land cleaning, and disturbing activities. Another is organic waste from human and animal excreta and the discarded parts of harvested pants. The third is the rapidly increasing volume of a variety of hazardous chemicals produced by industrialized societies.

All three categories of these wastes are increasing because of rapid population growth, poverty and industrialization."
 
 

Nelson L. Nemerow in his book entitled, "Liquid Waste of Industry, Theories, Practices and Development", published by Addison-Wesley Publishing Company, 1971 defined the wastewater produced by the industrial sector, salient features of which are thus presented below:

"A.Industrial Wastes

"23.19 Soft-Drink Bottling Wastes

Soft-drink bottling wastes result from the production of nonalcoholic beverages, both carbonated and non-carbonated. Wastes are produced from washing of bottles, production of syrup, treatment of water, and washing of floors. The wastes are usually highly alkaline, have a slightly higher BOD and suspended solids content than domestic sewage, and are discharged to the sewer with or without screening.

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.
 
 

Textile Wastes Textile mill operations consist of weaving, dyeing, printing, and finishing. Many processes involve several steps, each contributing a particular type of waste, e.g. sizing of the fibers, kiercing (alkaline cooking at elevated temperature), desizing the woven cloth, bleaching, mercerizing, dyeing, and printing. Textile wastes are generally colored, highly alkaline, high in BOD and suspendid solids, and high in temperature. xxx. The textile industry has long been one of the largest of water users and polluters and there has been little success in developing lowest treatment methods, which the industry urgently needs to lessen the pollution loads it discharges to streams.

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.
 
 

To sum up, the following are the eight major types and sources of water pollutants:
    1. Disease-causing agents – bacteria, viruses, protozoa, and parasitic worms that enter water from domestic sewage and animal wastes. In LDCs they are the major cause of sickness and death, prematurely killing an average of 13,700 people each day. Between 1970 and 1985, drinking water in the United States caused over 100,000 cases of disease, a larger number than in any 15-year period since 1920.
    2. Oxygen-demanding waste – organic wastes, which can be decomposed by oxygen-consuming bacteria. Large populations of bacteria supported by these wastes can deplete water of dissolved oxygen gas. Without enough oxygen, fish and other oxygen consuming forms of aquatic life die.
    3. Water-soluble inorganic chemicals – acids, salts and compounds of toxic metals such as lead and mercury. Such dissolved solids can make water unfit to drink, harm fish and other aquatic life, depress crop yields and accelerate corrosion of equipment that uses water.
    4. Inorganic plant nutrients – water-soluble nitrate and phosphate compounds that can cause excessive growth of algae and other aquatic plants, which then die and decay, depleting water dissolved oxygen and killing fish.
    5. Organic chemicals – oil, gasoline, detergents, and many other water-soluble and insoluble chemicals that threaten human health and harm fish and other aquatic life.
    6. Sediment or suspended matter – insoluble particles of soil and other solid inorganic and organic materials that become suspended in water and that in terms of total mass are the largest source of water pollution. Suspended particulate matter clouds the water, reduces the ability of some organisms to find food, reduces photosynthesis by aquatic plants, disrupts aquatic food webs, and carries pesticides, bacteria, and other harmful substances. Bottom sediment destroys feeding and spawning grounds of fish and clogs and fills lakes, artificial reservoirs, stream channels and harbors.
    7. Radioactive substance – radioisotopes that are water soluble or capable of being biologically amplified to higher concentrations as they pass through food chains and webs. Ionizing radiation from such isotopes can cause birth defects, cancer and genetic damage.
    8. Heat – excessive inputs of water that is heated when it is used mostly to cool electric power plants. The resulting increases in water temperatures lower dissolved oxygen content and make aquatic organisms more vulnerable to disease, parasites and toxic chemicals (Miller, Jr., 1991).
Kris Min of China, in her paper entitled, "Wastewater Pollution in China" thoroughly discusses the effects of untreated wastewater to our environment and proposes solution to the problem in this wise - "Not only is the health of the people at concern the concern of the environment is a major issue. By observing the vast amount of environmental factors that are affected by wastewater, we as a society must be able to grasp the concept of what types of risks we are putting on the natural capital. Goodland and Daly (1996) states that "the natural capital is comprised of intact ecosystems and ecosystem services (structurally and functionally)." However, the effect of wastewater pollution in China opposes that statement. With the on going problem of wastewater pollution in China, this will continue to affect the ecosystem negatively. With the high rate of wetland destruction, depletion of plant biomass, effects on aquatic wildlife habitat, and the decrease in fresh water access, the ecosystem services provided these components will continue to degrade. Since the natural resources of the ecosystem of the earth can not provide services any longer, the natural capital is completely depleted. The main objective is to maintain the natural capital so that we can ensure that the adequate resources are available for nature (Goodland and Daly, 1996).

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)
 
 

(b) Local Related Literature

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:

"ECOSYSTEM (RIVERS, LAKES)

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."
 
 

On the basis of the above findings, some concern agencies of the government have positively exerted effort to help solve the problem, in the same paper, it has enumerated the concerted concerns to rehabilitate the same, quoted to wit: "Efforts:

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.
 
 

CHAPTER III

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.

  1. Implementing and Regulatory Agencies
Together with the DENR, the following government agencies are tasked with the implementation of laws/regulations related to water pollution:
    1. National Water Resources Board (NWRB) on the conservation, utilization, and management of surface and ground waters;
    2. Philippine Coast Guard (PCG) for the enforcement of laws on disposal or dumping of solid wastes and oil spills into the sea and other navigable waters within the Philippine jurisdiction;
    3. Philippine Ports Authority (PPA) has the authority and jurisdiction, including the prevention of pollution, over all the country’s sea ports, harbor and piers;
    1. Metropolitan Waterworks and Sewerage System (MWSS) is authorized to issue regulations necessary for sanitary sewers and for water and sewer service protection within its jurisdiction; and
    2. Local Government Units, for the construction of artesian wells or water supply systems; constructions of irrigation canals or dams; and establishment of drainage systems, cesspools or sewerage systems and protection of rivers and creeks within their jurisdiction


Chapter IV

FACTUAL SITUATION

  1. Industrial/Agricultural Setting
(a) Industrial Area

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
 
 
POPULATION
NUMBER OF
LAND AREA
GROSS DENSITY
DAVAO CITY
1183960
222843
244000
4.85
DISTRICT I        
Poblacion
196535
36992
1028.2
191.14
Talomo
255412
48073
11040
23.13
Agdao
104884
19741
489.21
214.4
DISTRICT II        
Buhangin
165069
31069
8732.59
18.9
Bunawan
95816
18034
6550
14.63
Paquibato
38663
7277
65635
0.59
DISTRICT III        
Baguio
27712
5216
82735
0.33
Calinan
74355
13995
22735
3.27
Marilog
49166
9253
-
-
Toril
114922
21630
13130
8.75
Tugbok
61425
11561
32030
1.9

 

Table 2. Household by Kind of Toilet Facility Being Used in Davao City

Based on 1990 Census
 

TYPE OF TOILET

NUMBER OF

HOUSEHOLD

PERCENTAGE
Water-sealed, sewer /septic 
70741
44.22%
tank, used exclusively by 
the household
Water-sealed, sewer/septic
18364
11.48%
tank, shared with other
household
Water-sealed,
7486
4.68%
other depository used 
exclusively by the household
Water-sealed, 
5242
3.28%
other depository shared with
other household
Close Pit
20299
12.69%
Open Pit
26273
16.42%
Other (Pail System Inc., etc.)
2203
1.38%
None
9368
5.85%

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:

    • To adopt an ordinance requiring the proper design of septic vaults to no less than three chambers to further reduce the offensiveness of their effluents by the year 2000;
    • To adopt an ordinance requiring the cleaning of these septic vaults at least once every two or more as the case may be by the year 2001;
    • To prepare a long range development plan of a comprehensive sewerage system for the city giving particular attention to the Poblacion by the year 2000;
    • To prepare a long range development plan of a comprehensive system for the entire city by the year 2005;
To attain the aforecited targets, the City Government has formulated appropriate strategies and interim solutions to the city’s present sewerage problem. These strategies include the following:
    • Adoption of an ordinance requiring the proper design of septic vaults to no less than three chambers to further reduce the offensiveness of their effluents.
    • Adoption of an ordinance requiring the cleaning of these septic vaults at least once every two years or more as the case may be.
    • Application of adequate treatment of oxidizing sewage to make the remaining organic matter inoffensive.
    • Preparation of a long-range development plan of a comprehensive sewerage system for the city giving particular attention to the Poblacion.
    • Adoption of the proposed interim solutions for immediate implementation.
    • Adoption of the polluter pay principle as a long term measure which requires persons who generate wastewater and emission gasses to pay for the damages caused to the environment and people. Polluters must pay for the installation of pollution control devices.
    • Strict enforcement of environmental laws including imposition of stiffer penalties and enhancement of monitoring capacity in the government sector and civil societies.
The City Government has identified specific programs and projects for implementation within the medium-term period. Among the major ones are:
    • Feasibility study on Comprehensive Urban Sewerage Program for Davao City, including Toril District to be implemented in 1999 at an estimated cost of P2 Million with funding from the City Government.
    • Physical installation of the Comprehensive Urban Sewerage System by 2001 at an estimated cost of P500 Million funded with a loan from World Bank.
    • Establishment of industrial waste treatment plant by 2005 with project cost of around Php200 Million to be sourced from Japan International Cooperation Agency (JICA).
    • Sludge Treatment and Energy Recovery Project designed to treat sludge generated from wastewater treatment plants and septic tanks and to recover the energy to be generated through sludge treatment. It will be implemented in steps as the wastewater treatment plants are expanded. The City Government and Davao City Water District (DCWD) are the proposed implementing agencies with estimated investment requirements of P650 Million.
    • Establishment of Environmental Health Research Center, a regional research and training institutions attached to a provincial health office or medical school to carry out chemical analyses, epidemiological survey and training for environmental health control.
    • The Davao City Sewerage and Sanitation Development Project to be implemented by the City Government and DCWD with investment costs of P700 Million
    • Water Conservation and Recycling Program of the City Government and DCWD with investment costs of P300 Million

 
CHAPTER VI

Analysis of the Feasibility Study


  1. Technical Feasibility
Sometime in 1999, the S.M. Group International Inc., through the Aqua Production Technologies Company (APTCO) made a feasibility study of the wastewater collection and treatment system to be implemented in Davao City, Philippines.

The following are the salient features of the said feasibility study:

"A. EXISTING SANITARY CONDITIONS

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.
 
 

Table 2.1

Summary of Design Parameters
 
Davao-Poblacion

Parameter Bolton Bridge Site

Effluent discharged to Davao River
Contributing districts Poblacion part of Agdao & Talomo
Contributing population (year 2015) 292 996
Contributing flow: Qave Collection system: 57 713 m /2

Treatment system: 63 230 m /d

Contributing flow: Qpeak Collection system: 123 172 m /d

Treatment system: 138 240 m /d

Flows pumped All arriving by force main
Flows by gravity O
Wastewater strength:

BOD :

TSS:

300 mg/l

360 mg/l

Effluent std. Required

Total coli:

BOD :

TSS:

O&G:

3 000 MPN/100ml

30 mg/l

50 mg/l

5 mg/l

Treatment efficiency required:

BOD :

TSS:

90%

87%

Treatment process proposed Extended Aeration
SBR
Alternative number
D-1
D-2

Notes:

1. Protected Waters, Category II, Class B (DENR admin. Order No. 35)

2. Refer to 4.1.1. for criteria

GENERAL MASTER PLAN

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.
 
 

Table 3.1

Selected Districts and Barangays
 
   
1990
2015
District

Barangay

Area (ha)
Population

(1990)

Density

(po./ha)

Population

(2015)

Density

(pop/ha)

Poblacion

Agdao

Talomo

Bucana

Ma-a

Matina Aplaya

Matina Crossing

Talomo

1 028.2

489.2

699.2

808.5

384.5

490.3

678.3

141 090

75 295

41 210

25 027

12 892

36 637

29 136

137.2

153.9

58.9

31.0

33.5

74.7

43.0

226.335

120 788

66 109

40 148

20 861

58 773

46 740

220.1

246.9

94.5

49.7

53.8

119.9

68.9

Subtotal

Buhangin

Buhangin

Pampanga

Sasa

2 362

734.8

614.5

718.5

144 902

.36 772

25 409

30 486

61.4

50.0

41.3

42.4

232 452

58 990

40 761

48 906

98.4

80.3

66.3

68.1

Subtotal

Toril

Crossing Bayabas

Daliao

Lizada

Toril

2 068

323.0

130.0

232.0

254.2

92 667

11 301

14 999

7 488

10 465

44.8

35.0

115.4

32.3

41.2

148 656

18 129 

24 061

12 012

16 788

71.9

56.1

185.1

51.8

66.0

Subtotal
939
44 253
47.1
70 991
75.6
Total
6 886
498 207
72.3
799 222
116.1

C. MASTER PLAN LAYOUT

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 :
 
 

  1. Due to space limitations and environmental impacts, the central plant near Bolton Bridge cannot treat the wastewater for a potential population of 800,000 persons, so that at least three plants would be necessary, one for the West, one for the Center and another one for the East;
  2. The treatment of wastewater from both the Talomo-Matina and Toril areas at the same plant, would require a connection pipe and a pumping station which would cost around 58.4 million Pesos and would result in a saving of +/- 56 million Pesos in the construction of treatment facility instead of two, one in the Talomo-Matina area and another in the Toril area.
It is reasonable because of the topography to connect the whole Poblacion district, and a part of Agdao to the Bolton Bridge Station, located on the waest bank of the Davao River, downstream of Bolton Bridge. Since this plant is located at the Bucana barangay, it is also reasonable to connect this barangay and a part of Matina Aplaya to the Bolton Bridge Plant. However, due to land constraints, the capacity of this plant will be limited and will not be able to treat the wastewater of the whole district of Talomo. Another site will eventually have to be found for the wastewater treatment of Talomo, Matina Crossing, Matina Aplaya and Ma-a Barrio.

The other districts and barangays which will eventually be connected to the other plants are the following :
 
 

  • Plant 2 (Daliao) Bayabas crossing, Toril proper, Daliao and a part of Lubogan,
  • Plant 3 (Lizada) Agdao district, Pampanga, Buhangin and Sasa of Buhangin district;
  • Plant 4 (Matina-Talomo) Matina Crossing, Matina Aplaya, Talomo and Ma-a of Talomo district
Table 3.3

General Layout of the Master Plan (2015)
 

PLANT

LOCATION
TERRITORY CONNECTED
APPROXIMATE

FEATURES

Plant No. 1 On the west bank of 

DavaoRiver, downstream

of Bolton Bridge

The whole Poblacion district 

a smaller part of Agdao & 

Talomo

Area: 1 301 hectares

Pop connected:

292 996

Av. Flow. 57 713 m3/d

Plant No. 2 In the Daliao barangay

(Toril District)

Bayabas Crossing, Toril 

Proper, Daliao and a part of

Lubogon

Area: 500 hectares

Pop: connected

48 000

Av. Flow 10 244 m3/d

Plant No. 3 In the Pampanga

barangay (Buhangin 

District

Buhangin, Pampanga, and

Sasa (Buhangin district) &

Agdao district

Area: 2 500 hectares

Pop connected

200 000

Av. Flow: 42 000 m3/d

Plant No.4 East of the Matina River estuary, not far from the Gulf (very preliminary) Talomo, Matina Crossing,

Matina Aplaya & Ma-a

(Talomo District)

Area: 3 000 hectares

Pop connceted

208 000

Av. Flow: 44 300 m3/d

  1. PRIORITY
Priority no. 1 is surely the Poblacion district and the most densely populated areas of the surrounding districts (Agdao and Talomo), for the following reasons :
 
  • 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;
  • risk of pollution to Davao City beaches.
WASTWATER COLLECTION SYSTEM
    1. WASTEWATER NETWORK
    1. Desgn Criteria
The wastewter collection network for the Poblacion area is designed according to the following criteria:
 
  • the construction of the proposed network is limited to areas where there are potable water pipies in the streets;
  • collector pipes have been planned in the street where there are potable water pipes;
  • the design year is 2015;
  • the connected population is computed on the projected density of each barangay in 1990 times 1.6042;
  • the number of connections is based on 8 persons by connection for the Poblacion district and 5 persons per connection for Bucana and Matina Crossing;
  • the average flow is based on 194L/d/pers. times 1.1 to take into account infiltration and inflow;
  • the infiltration and inflow peak flow is 20% of the average sanitary flow;
  • the total peak flow is the sum of the peak sanitary flow and the infiltration and inflow peak flow;
  • the minimum slope for construction convenience is 0.25%.
B. SUMMARY DESIGN

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,
 
 

  • Sub-basin 1 includes the Poblacion district and a part of Agdao;
  • Sub-basin 2 includes the part of Bucana on the east bank of the Davao river;
  • Sub-basin 3 includes the part of Bucana on the west bank of the Davao river and a part of Matina crossing
Table 4.1

Summary of Collection Network Characteristics
 
SUB-BASIN 1
Area (ha.)

Population (2 015)

  • Baranguay 21-23, 31, 37
  • other baranguay
TOTAL

Average Flow (m3/d)

Peak flow (L/s)

Number of house connections

Length of and diameter of gravity

collector pipes

Length and diameter of gravity

transportation pipes

Number and power of pumping stations

Length and diameter of force

mains
 
 
 
 

Number of communal toilets

956
 
 

45 000

213 300

258 300

50 315

1 205

+26 625

69 395 (150 & 200 mm)
 
 

24 675 m (from 200 mm to 1 050 mm)
 
 

4 (531, 57, 35 & 8.8 HP)

1 700 m of 900 mm

510m of 600 mm

10 m of 300 mm

370 m of 200 mm

131


 

Table 4.1 (continued)
 
SUB-BASIN 2
Area (ha)

Population

Average Flow (m3/d)

Peak flow (L/s)

Number of house connections

Length and diameter of gravity

collector pipes

Length and diameter of gravity

transportation pipes

Number and power of pumping

stations

Length and diameter of force

mains

Number of communal toilets

75

7 090

1 513

52.6

1 418

4 640 m (150 & 200 mm)

1 990 m (from 200 mm to 300 mm)

1 (29 HP)

1 800 m to 250 mm

0


 
 
 
 
SUB-BASIN 3
Area (ha)

Population

Average Flow (m3/d)

Peak flow (L/s)

Number of house connections

Length and diameter of gravity

collector pipes

Length and diameter of gravity

transportation pipes

Number and power of pumping

stations

Length and diameter of force

Mains

Number of communal toilets

270

27 570

5 885

168

+5515

30 145 m (150 & 200 mm)

7 375 m (from 200 mm to 450 mm)

1 (86 HP)

180 of 350 mm

0

C. PUMPING STATIONS

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."
 
 

Architect Hector Esquerra, of the Office of the City Planning and Development Coordination said that a World Bank consultant conducted a study on the advisability of establishing a sewerage service in the country. The consultant found out that five cities, among them Davao, are ideal for sewerage service.

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.
 
 

  1. Environmental Feasibility
Despite the promulgation of Resolution No. 5, issued by the National Economic Development Authority (NEDA) which requires that municipal and industrial wastewaters should be treated in accordance with the standards (as) set by the Department of Environment and Natural Resources (DENR), Davao City through its council has not taken any action which would put an end to the prevailing pollution problems emanating from the municipal sources.

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

Lubogon Plant 3 - Agdao District, Pampanga, Buhangin and Sasa 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.

C. FINANCIAL FEASIBILITY

a. Feasibility Criteria
 
 

The determination of whether or not the wastewater collection and treatment project is financially feasible depends on the following criteria:
  • The projected population for 2000 is 1,183,960 (Davao City Planning Comprehensive Development Plan, 1996-2021).
  • The concentration of the population is in the Poblacion, Agdao and Talomo areas, the population of which is 556,831 persons and 104,806 households in 2000, with an average household size of 5.3 persons (Ibid).
  • The project will be financed by the World Bank, thru the Land Bank of the Philippines, through a long term loan agreement. The estimated cost is Php500 Million. It will be implemented in 2001 by the City Government (Ibid).
  • The design year is 2015 (Davao City Wastewater Collection and Treatment System Feasibility Study).
  • There are four proposed treatment plants, the pilot plant being located on the west bank of Davao River, downstream Bolton Bridge and caters to the whole Poblacion district, a small part of Agdao and Talomo.
  • The collection system for the area connected to the pilot plant is subdivided into three sub-basins, with six pumping stations.
  • The capital costs are based on the cost estimates made by the S.M. Group International for the wastewater collection and treatment system, which considered an inflation rate of 20% since 1996.
  • The Sequence Batch Reactor (SBR) process has been shown to be the most attractive treatment option in terms of its capital costs.

  b. SOURCE OF FINANCING
 
The project will be financed by the World Bank and guaranteed by the Land Bank of the Philippines (Land Bank).

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:

1. The interest rate shall be fourteen percent (14%) per annum, fixed for twenty (20) years.

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:
 

    1. a ratio of current assets to current liabilities of not less than 1.5;
    2. a ratio of debt to total capitalization of not more than 0.75;
    3. a ratio of internal cash generation to debt service requirements of not less than 2.0; and
    4. a ratio of internal cash generation to capital expenditures of not more than 0.30.
c. CAPITAL COST ESTIMATES
 
The S.M. Group International has made cost estimates for both the wastewater collection and treatment systems.

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
 
Unit Cost Cost
Item Unit Quantity (P) (P x 1000) US $ x 1000
 
House Connections unit 26,625 12,532 333,665 8,712 
Collector Sewers meter 69,395 1,650 114,502 2,990
Transportation Sewers meter 24,675 Global 169,214 4,418
Force Mains meter 2,590 Global 23,137 604
Communal Toilets unit 131 632,500 82,858 2,163
Lift/Pumping Stations unit 4 Global 191,011 4,987
 
Total 914,386 23,874

 

SUB-BASIN 2
 
Unit Cost Cost
Item Unit Quantity (P) (P x 1000) US $ x 1000
 
House Connections unit 1,418 12,532 17,516 457 
Collector Sewers meter 4,640 1,650 7,656 200
Transportation Sewers meter 1,990 Global 9,340 244
Force Mains meter 1,800 2,018 3,633 95
Communal Toilets unit 0 632,500 0 0
Lift/Pumping Stations unit 1 Global 13,407 350
 
Total 51,551 1,346

SUB-BASIN 3
 
Unit Cost Cost
Item Unit Quantity (P) (P x 1000) US $ x 1000
 
House Connections unit 5,515 12,532 68,124 1,779 
Collector Sewers meter 30,145 1,650 49,739 1,299
Transportation Sewers meter 7,375 Global 35,405 924
Force Mains meter 180 3,223 580 15
Communal Toilets unit 0 632,500 0 0
Lift/Pumping Stations unit 1 Global 27,776 725
 
Total 181,625 4,742
TOTAL SUB-BASINS 1, 2 & 3 1,147,562 29,962

 

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
Alternative Land Requirement Annual Operating Capital Cost
Cost
 
Conventional 100% 100% 100%
Extended 89% 82% 93%
SBR 53% 88% 71%

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
 
Treatment Effluent Area Total HP Operating Construction
Process Discharged to Required Installed Cost Cost1
(USD/YR) (USD) 
 
Extended
Aeration Davao River 6 Ha 2425 1,847,000 12,074,000
 
SBR Davao River 3.8 Ha 4472 1,985,000 9,891,000

 

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
 
TREATMENT 

ALTERNATIVE MANPOWER ELECTRICITY MAINTENANCE CHEMICALS OTHERS1 TOTAL

 
EXTENDED
AERATION 132,000 1,037,000 300,000 290,000 88,000 1,847,000
 
SBR 132,000 1,162,000 265,000 331,000 95,000 1,985,000

 

1 Excluding costs of sludge disposal.

CAPITAL COSTS2
 
TREATMENT

ALTERNATIVE CIVIL OUTFALL PROCESS OTHERS TOTAL

 
EXTENDED
AERATION 1,854,000 26,000 5,708,000 4,486,000 12,074,000
 
SBR 1,362,000 26,000 5,374,000 3,129,000 9,891,000

 

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.
 
 

d. Analysis d.1 Repayment Schedule
 
Of the total P2.3 Billion principal amount of the sub-loan with the Land Bank, it can be assumed that the City will have an equal share of P460 Million. Based on the salient terms and conditions of the sub-loan, the schedule of principal repayment and interest payments will be as follows:

Table 5

REPAYMENT SCHEDULE
 
YEAR
PAYMENT
OUTSTANDING BALANCE
ANNUAL INTEREST
ACCUMULATED INTEREST
DEBT SERVICE REQUIREMENT
1
0
500,000,000
40,000,000
40,000,000
40,000,000
2
0
500,000,000
40,000,000
80,000,000
40,000,000
3
0
500,000,000
40,000,000
120,000,000
40,000,000
4
0
500,000,000
40,000,000
160,000,000
40,000,000
5
0
500,000,000
40,000,000
200,000,000
40,000,000
6
33,333,333
466,666,667
68,250,000
368,250,000
101,583,333
7
33,333,333
433,333,333
63,583,333
331,833,333
96,916,667
8
33,333,333
400,000,000
58,916,667
390,750,000
92,250,000
9
33,333,333
366,666,667
54,250,000
445,000,000
87,583,333
10
33,333,333
333,333,333
49,583,333
494,583,333
82,916,667
11
33,333,333
300,000,000
44,916,667
539,750,000
78,250,000
12
33,333,333
266,666,667
40,250,000
579,750,000
73,583,333
13
33,333,333
233,333,333
35,583,333
615,333,333
68,916,667
14
33,333,333
200,000,000
30,916,667
646,250,000
64,250,000
15
33,333,333
166,666,667
26,250,000
672,500,000
59,583,333
16
33,333,333
133,333,333
21,583,333
694,083,333
54,916,667
17
33,333,333
100,000,000
16,916,667
711,000,000
50,250,000
18
33,333,333
66,666,667
12,250,000
723,250,000
45,583,333
19
33,333,333
33,333,333
7,583,333
730,833,333
40,916,667
20
33,333,333
0
2,916,667
733,750,000
36,250,000
TOTAL
500,000,000
 
733,750,000
 
1,233,750,000

1The payment starts from Year 6, at the end of the 21st quarter up to Year 20, in 60 equal quarterly installments. For the purpose of this analysis, the payment is computed annually.

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
 
 

The ratio of current assets to current liabilities which the City is required to maintain is not less than 1.5. The current liabilities are all the liabilities which will become due and payable within twelve (12) months, including accounts payable and debt service requirements. This is the primary test of solvency to meet current obligations from current assets as a going concern. The current ratio is computed as follows:

current assets

Current ratio = ---------------------

current liabilities

Table 6

Current Ratio
 
YEAR
CURRENT ASSETS
CURRENT LIABILITIES
CURRENT RATIO
1
60,000,000
40,000,000
1.5
2
60,000,000
40,000,000
1.5
3
60,000,000
40,000,000
1.5
4
60,000,000
40,000,000
1.5
5
60,000,000
40,000,000
1.5
6
152,375,000
101,583,333
1.5
7
145,375,000
96,916,667
1.5
8
138,375,000
92,250,000
1.5
9
131,375,000
87,583,333
1.5
10
124,375,000
82,916,667
1.5
11
117,375,000
78,250,000
1.5
12
110,375,000
73,583,333
1.5
13
103,375,000
68,916,667
1.5
14
96,375,000
64,250,000
1.5
15
89,375,000
59,583,333
1.5
16
82,375,000
54,916,667
1.5
17
75,375,000
50,250,000
1.5
18
68,375,000
45,583,333
1.5
19
61,375,000
40,916,667
1.5
20
54,375,000
36,250,000
1.5

Analysis: The City must maintain at least such amount of current assets annually to maintain the current ratio of not less than 1.5.


(b) Debt Ratio
 
 

The ratio of debt to total capitalization which the City is required to maintain is not more than 0.75. This is reflective of the amount resources which shall be provided by the city, other than the loan, and is determinative of the strength and weakness in the basic financial operation of the project. The total debt maturing more than one year from the date which is originally incurred is at most Php500,000,000 diminished by annual repayments. The total capital required annually is computed based on this formula:

Total debt

Debt ratio = ---------------------------

Total capitalization

Table 7. Debt Ratio
 
YEAR
TOTAL DEBT
TOTAL CAPITALIZATION
DEBT RATIO
1
500,000,000
666,666,667
0.75
2
500,000,000
666,666,667
0.75
3
500,000,000
666,666,667
0.75
4
500,000,000
666,666,667
0.75
5
500,000,000
666,666,667
0.75
6
466,666,667
622,222,222
0.75
7
433,333,333
577,777,778
0.75
8
400,000,000
533,333,333
0.75
9
366,666,667
488,888,889
0.75
10
333,333,333
444,444,444,
0.75
11
300,000,000
400,000,000
0.75
12
266,666,667
355,555,556
0.75
13
233,333,333
311,111,111
0.75
14
200,000,000
266,666,667
0.75
15
166,666,667
222,222,222
0.75
16
133,333,333
177,777,778
0.75
17
100,000,000
133,333,333
0.75
18
66,666,667
888,888,889
0.75
19
33,333,333
44,444,444
0.75
20
0
0
0.00

Analysis: This means that the City shall maintain a total capital of at least such amounts annually as are shown to maintain a debt ratio of not more than 0.75 for the duration of the unpaid long term loan. The capital from the unimpaired paid-up capital, retained earnings and reserves not allocated to cover specific liabilities. (c) Ratio of Internal Cash Generation to Debt Service Requirements
 
Internal cash generation means the difference between the (a) sum of revenues from all sources related to operations and net non operating income, and (b) sum of all expenses related to the operations including administration, adequate maintenance, but excluding provision for depreciation and other non-cash operating expenses, interest and other charges.

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
 
YEAR
REVENUE
EXPENSES
DEBT SERVICE REQUIREMENT
RATIO
1
163,370,000
83,370,000
40,000,000
2.0
2
163,370,000
83,370,000
40,000,000
2.0
3
163,370,000
83,370,000
40,000,000
2.0
4
163,370,000
83,370,000
40,000,000
2.0
5
163,370,000
83,370,000
40,000,000
2.0
6
286,536,667
83,370,000
101,583,333
2.0
7
277,203,333
83,370,000
96,916,667
2.0
8
267,870,000
83,370,000
92,250,000
2.0
9
258,536,637
83,370,000
87,583,333
2.0
10
249,203,333
83,370,000
82,916,667
2.0
11
239,870,000
83,370,000
78,250,000
2.0
12
230,536,667
83,370,000
73,583,333
2.0
13
221,203,333
83,370,000
68,916,667
2.0
14
211,870,000
83,370,000
64,250,000
2.0
15
202,536,637
83,370,000
59,583,333
2.0
16
193,203,333
83,370,000
54,916,667
2.0
17
183,870,000
83,370,000
50,250,000
2.0
18
174,536,667
83,370,000
45,583,333
2.0
19
165,203,333
83,370,000
40,916,667
2.0
20
155,870,000
83,370,000
36,250,000
2.0

 

Analysis: The City is required to generate annual revenues of at least such amount as shown to maintain a ratio of not less than 2.0.


(d) Ratio of Internal Cash Generation to Capital Expenditures
 
 

Capital expenditure means all expenditures incurred for fixed assets, including interest charged during construction. The estimated construction cost for the treatment and collection system is US$39,853,000, or Php1,526,369,900 (Foreign Exchange Rate = Php38.3 : $1). The ratio which the City is required to maintain is not more than 0.30. This is computed as follows:
 
 

Revenues - Expenses

Required ratio = ------------------------

Capital expenditures

Table 9

Internal Cash Generation to Capital Expenditure Ratio
 
YEAR
REVENUES
EXPENSES
CAPITAL EXPENDITURE
RATIO
1
163,370,000
83,370,000
1,526,369,900
0.05
2
163,370,000
83,370,000
1,526,369,900
0.05
3
163,370,000
83,370,000
1,526,369,900
0.05
4
163,370,000
83,370,000
1,526,369,900
0.05
5
163,370,000
83,370,000
1,526,369,900
0.05
6
286,536,667
83,370,000
1,526,369,900
0.13
7
277,203,333
83,370,000
1,526,369,900
0.13
8
267,870,000
83,370,000
1,526,369,900
0.12
9
258,536,637
83,370,000
1,526,369,900
0.11
10
249,203,333
83,370,000
1,526,369,900
0.11
11
239,870,000
83,370,000
1,526,369,900
0.10
12
230,536,667
83,370,000
1,526,369,900
0.10
13
221,203,333
83,370,000
1,526,369,900
0.09
14
211,870,000
83,370,000
1,526,369,900
0.08
15
202,536,637
83,370,000
1,526,369,900
0.08
16
193,203,333
83,370,000
1,526,369,900
0.07
17
183,870,000
83,370,000
1,526,369,900
0.07
18
174,536,667
83,370,000
1,526,369,900
0.06
19
165,203,333
83,370,000
1,526,369,900
0.05
20
155,870,000
83,370,000
1,526,369,900
0.05

Analysis: The City will meet the required ratio if it generates at least such annual revenues as are shown.


(e) Payback period
 
 

Payback measures the length of time required to recover the amount of initial investment. It is the time interval between the time of initial outlay and the full recovery of the investment. Normally, it is computed as follows:

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
 
YEAR
PROJECTED REVENUES
PROJECTED POPULATION
NUMBER OF HOUSEHOLD
FEES/HOUSEHOLD/YEAR
FEES/PERSON/YEAR
2001
163,370,000
576,067
108,427
1,507
284
2002
163,370,000
594,994
111,989
1,459
275
2003
163,370,000
615,046
115,763
1,411
266
2004
163,370,000
635,773
119,664
1,365
256
2005
163,370,000
657,198
123,697
1,321
249
2006
286,536,667
679,198
127,865
2,241
421
2007
277,203,333
702,240
132,175
2,097
394
2008
267,870,000
725,905
136,629
1,961
369
2009
258,536,637
750,368
141,233
1,831
345
2010
249,203,333
775,656
145,993
1,707
321
2011
239,870,000
801,560
150,869
1,590
299
2012
230,536,667
828,816
155,999
1,478
278
2013
221,203,333
856,747
161,256
1,372
258
2014
211,870,000
885,619
166,690
1,271
239
2015
202,536,637
915,465
172,308
1,175
221
2016
193,203,333
946,316
178,114
1,085
204
2017
183,870,000
978,207
184,117
999
188
2018
174,536,667
1,011,172
190,322
917
173
2019
165,203,333
1,045,249
196,735
840
158
2020
155,870,000
1,080,474
203,365
766
144

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:

a. Each household connected either compulsorily or voluntarily with the system shall be charged with reasonable fees.

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.
 
 

The Comprehensive Development Plan of Davao City reveals that based on its annual income and reserves from 1990 to 1999, the City has a maximum loan-paying capacity of about P1.2 Billion annually. This means than it can shoulder debt payments of such amount per year. The sources of the City’s income are the local revenues and its share in the Internal Revenue Allotment. The local revenues are derived not only from local taxes but also from three major economic enterprises operated by the City, such as the Slaughterhouse, the Public Market and the Overland Transportation Terminal.

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 :

    1. Adoption of an ordinance requiring the proper design of the septic vaults to no less than three chambers to further reduce the offensiveness of their effluents.
    2. Adoption of an ordinance requiring the cleaning of these septic vaults at least once every two or more years as the case may be.
    3. Application of adequate treatment of oxidizing sewage to make the remaining organic matter inoffensive.
    4. Preparation of a long-range development plan of a comprehensive sewerage system for the City giving particular attention to the Poblacion.
    5. Adoption of the proposed interim solutions for immediate implementation.
    6. Preparation of a long-range development of a comprehensive sewerage system for the city.
At present time, Architect Hector Esguerra said that there is no existing city ordinance nor letter of intent concerning the urban sewerage project. However, unsolicited proposals had been submitted to their office. One in particular was that submitted by the S.M. Group International of Canada in collaboration with the Aqua Production Technologies Company (APTCO) entitled, "Wastewater Collection and Treatment System, Davao City ( Philippines)"

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:

  1. To adopt an ordinance for the implementation of a Comprehensive Urban Sewerage Program for Davao City to be installed not later than 2015.
  2. In consonance with (a), to prepare a long range development plan for a comprehensive sewerage system for the entire City. The plan shall consider the following:
  1. Particular attention shall be given to the Poblacion, Agdao and Talomo areas, which make about forty seven (47%) or a total of 556,831 persons (101,806 households) in 1996, and which, by 2001, would have about 576,067 persons or 108,427 households and by 2015, about 915,465 persons or 172,308 household.

  2.  

     

    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.

  3. Business establishments, particularly those engaged in industrial and agricultural manufacturing, not compliant with the standards set by Environmental Management Bureau for wastewater pollution control, which make up about 30% of the total covered establishments, and others not covered thereby, should be considered for inclusion in the sewerage system. This would help curtail the charges for the operation of the sewerage system imposed on residents compulsorily or voluntarily connected, since these establishments will be charged, although based on different rating schemes.
  4. The sewerage system shall be composed of both treatment and collection systems and shall use the Sequence Batch Reactor process of wastewater treatment.
  5. The pilot plant shall be on the west bank of the Davao River, downstream Bolton Bridge and will cater to the whole Poblacion district, a small part of Agdao and Talomo. Subject to the demand of the City and its financial capability, additional plants shall be installed, particularly in Daliao, Toril (Plant 2), Lizada (Plant 3) and Matina-Talomo area (Plant 4).
  6. The toal estimated cost for the construction of the sewerage system is Php1.529 Billion or US$39.9 Million, composed of Php1.15 Billion (US$30.0 Million) for the COLLECTION system and Php379 Million (US$9.9 Million) for the TREATMENT system, both excluding the costs for resettlement, land, financing, duty and tax.
The estimate annual operating cost is Php76 Million or US$1.98 Million, excluding the cost of sludge disposal.
  1. To execute a Memorandum of Agreement with the World Bank for securing a LONG-TERM LOAN of Php500,000,000, for the purpose of financing the construction of the sewerage system, and a SUBSIDIARY LOAN agreement with the Land Bank of the Philippines to guaranty the efficient payment of the principal loan with the World Bank.
  2. To adopt proposed interim solutions for immediate implementation, geared towards the effective repayment of the long-term with the World Bank. The City shall consider the following:
  1. Imposing, increasing and/or monitoring the collection of local taxes, a portion of the collection of which shall be allotted for the financing the system.
  2. Developing a comprehensive revenue measure with the aim to allocate a substantial portion of the internal revenue allotment (IRA) and the local revenues from various sources, particularly from the locally-operated business enterprises, to critical environmental projects such as the sewerage system.
  3. Implementing and monitoring the mechanisms of the sewerage system, particularly the effective and efficient collection fees from the households and/or business establishments connected, with the aim of reaching the annual cash returns from operations.
  1. Should the city forego the long term loan with the World Bank, to consider the advisability of entering into a contract with independent contractors under the BUILD-OPERATE-TRANSFER (BOT Law) (RA 7188).
  2. To adopt a scheme to consistently, effectively and efficiently monitor the strict compliance of the legal requirements for the wastewater pollution control imposed by the Environmental Management Bureau (EMB) on industrial and agricultural establishments. The EMB should be enjoined to regularly regulate the operations of the existing business establishments, particularly the thirty percent (30%) non-compliant establishments, and impose penalties sanctioned by the pertinent environmental laws on water pollution.
  3. To adopt scheme, based on the Polluter Pay Principle, to be implemented by the local government of Davao City as long as term measure which will require persons, natural or juridical, who generate wastewater to pay for the loss, destruction or deterioration caused to the environment and the people of the city. Polluters must pay for the installation of pollution control devices, particularly the sewerage system.
  4. To strictly enforce other and related environmental laws, including the imposition of stiffer penalties and enhancement of monitoring capacity in the government sector and civic societies.