The Sewerage & The Sewerage & Wastewater Treatment Wastewater Treatment

Plant ProjectPlant Project(A Public-Private Partnership)

The Puerto Galera ExperienceThe Puerto Galera Experience

Presented by Mayor Hubbert “MD” A. Dolor, MD, MPAPublic Private Partnership - A Case Study

National Conference on ENR FinancingSeptember 24, 2009, Manila

What is Puerto Galera?What is Puerto Galera?

a small municipality of approximately a small municipality of approximately 25,247.23 hectares25,247.23 hectares

has 42 km. long coasts, consisting of has 42 km. long coasts, consisting of shorelines rimmed with dazzling white shorelines rimmed with dazzling white beaches, coconut plantations and beaches, coconut plantations and delightful scenerydelightful scenery

130 km South of Manila 130 km South of Manila

is strategically located at the is strategically located at the northernmost tip of the province of northernmost tip of the province of Oriental MindoroOriental Mindoro

lies along the Verde Island Passage lies along the Verde Island Passage Marine Biodiversity Conservation Marine Biodiversity Conservation Corridor where the South China Sea Corridor where the South China Sea and the Pacific Ocean waters and the Pacific Ocean waters converge; bringing in nutrients that converge; bringing in nutrients that sustain the biodiversity of marine life sustain the biodiversity of marine life in the area. in the area.

• VOTED MEMBER OF UNESCO• AFFILIATED AS THE 32ND MEMBER OF THE CLUB OF THE MOST

BEAUTIFUL BAYS IN THE WORLD • DECLARED AS A MAN & BIOSPHERE RESERVE IN DECEMBER 1973 • A WORLD CLASS DIVING HAVEN WITH 41 DIVE SITES• CLASSIFIED AS A TOURISM ZONE IN 1978 • CURRENTLY HOSTS MORE THAN 1 MILLION TOURISTS A YEAR • TO TOP IT ALL, PUERTO GALERA IS AMONG THE FAVORITE

TOURISM DESTINATIONS IN THE WORLD AND IS A MELTING POT OF ALL SORTS OF SCIENTIFIC AND TECHNOLOGICAL INTERVENTIONS WHICH ONLY PROVES ITS VITAL ROLE IN THE WORLD ENVIRONMENT.

The Verde Island Passage is now The Verde Island Passage is now more popularly known as themore popularly known as the

where Puerto Galera lies. Must where Puerto Galera lies. Must we remain as mere spectators? we remain as mere spectators? We cannot. We must do We cannot. We must do something about the rapid something about the rapid degradation of the marine degradation of the marine environment.environment.

““center of the center center of the center of marine biodiversity”of marine biodiversity”

Puerto Galera Waters is so Puerto Galera Waters is so significant but. . .significant but. . . What’s been What’s been happening?happening?

IT WAS DECLARED AN ECOLOGICALLY EN DANGERED ZONE PER PD 1605 IN NOVEMBER 1980, AS AMENDED BY PD 1605-A & 1805

and

DECLARED A MARINE SANCTUARY AND NATIONAL PROTECTED AREA IN NOVEMBER 2006

Why do we say these?Why do we say these?

To emphasize the fact that this town is To emphasize the fact that this town is significant not only in history but also significant not only in history but also geographically.geographically.

Taking into consideration Taking into consideration environmental environmental economicseconomics, we say, we have to , we say, we have to sustainably protect our environmentsustainably protect our environment. .

The local government, one of the prime movers for

societal change now recognizes the need for proper environmental

action. Who can we tap to help us?

And what is this so-calledenvironmental economics?Who can teach us these?

There’s the DENR, the

WWF, the MSI, the SCOTIA and the PEMSEA, to

name a few.

You mean, all public and

private persons including the

different institutions.

Why not?

Why don’t we

tap all sectors?

DOING NOTHING ABOUT DOING NOTHING ABOUT SEWAGE POLLUTIONSEWAGE POLLUTION

Increased health risk e.g. diarrhea, typhoid, polio,

hepatitis.)

Deterioration of quality of water resources.

Deterioration of coastal, marine and terrestrial habitats.

Decline in fisheries.

Tourists go elsewhere - decline in tourism industry.

Loss of income due to sickness and higher medical costs for treatment.

Higher cost for water supply.

Reduction in income of fisher folk. Loss of tourism related jobs and livelihood.

RISK COST

HIGH HIG

HCOS

T

Current situation:Current situation:

Our vision:Our vision:

A progressive, globally competitive tourism municipality that upholds and enhances the rights of the people to a balance ecology, enriches culture, maintains peace and order, and preserves the comfort and convenience of a God-centered citizenry

Here is our basis in saying Here is our basis in saying there is gradual degradation in there is gradual degradation in the environment:the environment:

Sabang, Puerto Galera 2006

FECAL COLIFORM GEOMEAN RQ

Seashore Resort 883.69 4.42Near Sabang Inn 10,945.93 54.73Pavillon Floating Bar 2,504.30 12.52Triton Diver 48,929.66 244.65Mabuhay Resort 174.64 0.87La Laguna Beach Club 59.91 0.30

Source: Department of Environment and Natural Resources Water Quality Monitoring

Now, how do we perceive the Now, how do we perceive the problem of sanitation taking problem of sanitation taking into consideration our vision?into consideration our vision?

It is neither an issue of hygiene nor environment sanitation. Neither is it private nor public. It is not even an issue of cultural practices. Most of all, it is not too hard and not too expensive.

It is all of the above.It is all of the above.

Owing to the geographical importance of Puerto Galera it attracts all sorts of attention not only locally but internationally. Moreover, we cannot forego the economic gains our people get thus, begun the great history of the Public Private Partnership (PPP) which we now call the

PPP-Puerto Galera PPP-Puerto Galera Experience.Experience.

We responded to the challenges We responded to the challenges of the Global Environmental of the Global Environmental Change (GEC) Change (GEC)

What did we / what did I do as What did we / what did I do as the new leader of Puerto the new leader of Puerto Galera?Galera?

Evaluated local government systems and Evaluated local government systems and implemented new ones to effect desired implemented new ones to effect desired changes;changes;

Held several consultative meetings from Held several consultative meetings from day 1 in office, with almost all of the day 1 in office, with almost all of the residents of this municipality from all residents of this municipality from all sectors;sectors;

Implemented unpopular measures like the Implemented unpopular measures like the EUF collectionEUF collection as a major step in caring as a major step in caring for our precious environment and cure for our precious environment and cure financial anemiafinancial anemia; and; and

Currently, take all political risks by Currently, take all political risks by engaging in the Build-Operate-Transfer engaging in the Build-Operate-Transfer scheme as amended by RA 7718 of scheme as amended by RA 7718 of constructing the much needed Sewerage constructing the much needed Sewerage and Wastewater Treatment Project though and Wastewater Treatment Project though opposed by some.opposed by some.

Yes, it is! We have to help save the Yes, it is! We have to help save the environment. environment.

Sanitation has always been a first priority Sanitation has always been a first priority because we foresaw that with even a bit of because we foresaw that with even a bit of bad news that Puerto Galera waters is bad news that Puerto Galera waters is contaminated, tourism will die, and contaminated, tourism will die, and everything that the local government everything that the local government worked for will be gone – so is the future worked for will be gone – so is the future of its people. of its people.

If it isn’t a priority, we don’t know what is!If it isn’t a priority, we don’t know what is!

Is it a Priority Program?Is it a Priority Program?

What resources have been What resources have been mobilized?mobilized? Mostly, it’s human resource, time and Mostly, it’s human resource, time and

effort.effort.

Conducted intensive information and Conducted intensive information and education campaigns even in schools. education campaigns even in schools.

Tackled the problems on solid waste and Tackled the problems on solid waste and wastewater in several meetings so that the wastewater in several meetings so that the different sector heads and members were different sector heads and members were conditioned that what our government conditioned that what our government should do is address the environmental should do is address the environmental problem. problem.

What could be the impact of What could be the impact of these actions?these actions?

Based on our vision, we can be at par with Based on our vision, we can be at par with other eco-tourism destinations, ensure other eco-tourism destinations, ensure progressive economic growth and keep progressive economic growth and keep the lifestyle of the citizenry at the best they the lifestyle of the citizenry at the best they can afford. Peace and order can also be can afford. Peace and order can also be maintained when the economy is healthy. maintained when the economy is healthy. To top it all, To top it all, we can leave a healthy natural we can leave a healthy natural environment for posterity!environment for posterity!

How were we able to get the How were we able to get the stakeholders’ support?stakeholders’ support? Through involvement – encouraged them Through involvement – encouraged them

to share in every aspect of the program: to share in every aspect of the program: on pre-implementation, during on pre-implementation, during implementation, and in evaluation of implementation, and in evaluation of program/project progress. program/project progress.

Through collaboration – program launches Through collaboration – program launches were done in different were done in different barangaysbarangays (the (the smallest unit of government in the smallest unit of government in the Philippines). Philippines).

Through example – by sheer display of Through example – by sheer display of transparency, the legislative body transparency, the legislative body supported all programs of government.supported all programs of government.

Through establishment of trust – leaders Through establishment of trust – leaders

who were delegated to do different tasks who were delegated to do different tasks were left to decide on matters that fall were left to decide on matters that fall under their jurisdiction. under their jurisdiction.

What legislative support do we What legislative support do we have?have? Since 1989, we enacted municipal laws. Since 1989, we enacted municipal laws.

regulations and policies which are now regulations and policies which are now compiled into a book recognized even by compiled into a book recognized even by the Department of Environment and the Department of Environment and Natural Resources; Natural Resources;

In 1992, RA 7160 was passed. Section 16 In 1992, RA 7160 was passed. Section 16 of which “. . .of which “. . . encourage and support the encourage and support the development of appropriate and self-reliant development of appropriate and self-reliant scientific and technological capabilities. . .scientific and technological capabilities. . .” ” by local government units; by local government units;

In 2005, we enacted the Coastal In 2005, we enacted the Coastal Resources Management Plan with the Resources Management Plan with the help of the World Wide Fund and the help of the World Wide Fund and the Locsin Foundation-- from which sprang the Locsin Foundation-- from which sprang the Environmental Users Fee (EUF)Environmental Users Fee (EUF) System System or Municipal Ordinance # 06-03 which or Municipal Ordinance # 06-03 which was enacted in 2006. was enacted in 2006.

In November 16, 2007 with enabling In November 16, 2007 with enabling ordinances (the IRR on the EUF) we ordinances (the IRR on the EUF) we started the EUF system collection.started the EUF system collection.

1st quarter of 2008 – started negotiations 1st quarter of 2008 – started negotiations with all stakeholders on the then proposed with all stakeholders on the then proposed Build-Operate-Transfer Build-Operate-Transfer scheme as scheme as amended by RA 7718 of constructing the amended by RA 7718 of constructing the controversial Sanitation and Wastewater controversial Sanitation and Wastewater Treatment Project.Treatment Project.

How were we able to get the How were we able to get the support of the communities support of the communities and the tourism sector in this and the tourism sector in this program?program? Held consultative meetings/public hearings Held consultative meetings/public hearings

on the proposed program/project; and on the proposed program/project; and

Made them part of the Technical Working Made them part of the Technical Working Group (TWG) that dealt with every aspect Group (TWG) that dealt with every aspect of program/project implementation from of program/project implementation from planning up to the actual negotiations with planning up to the actual negotiations with the partner agency. the partner agency.

What other factors contributed What other factors contributed to a workable sanitation to a workable sanitation program?program? Worked based on legal requirements from Worked based on legal requirements from

the Department of Environment and the Department of Environment and Natural Resources (DENR), the National Natural Resources (DENR), the National Economic and Development Economic and Development Administration (NEDA), the Department of Administration (NEDA), the Department of Interior and Local Government (DILG), the Interior and Local Government (DILG), the Department of Budget and Management Department of Budget and Management (DBM), the Department of Health (DOH), (DBM), the Department of Health (DOH), and other concerned agencies; and other concerned agencies;

Consulted laws, policies and regulations, to Consulted laws, policies and regulations, to wit: the BOT Law, RA 7160, DAO # 34 & wit: the BOT Law, RA 7160, DAO # 34 & 35, and other pertinent laws;35, and other pertinent laws;

Collaborated with World Wide Fund (WWF), Collaborated with World Wide Fund (WWF), the Partnerships in Environmental the Partnerships in Environmental Management for the Seas of Asia Management for the Seas of Asia (PEMSEA), Sustainable Coastal Tourism in (PEMSEA), Sustainable Coastal Tourism in Asia (SCOTIA), the Provincial Government Asia (SCOTIA), the Provincial Government of Oriental Mindoro, the Barangay of Oriental Mindoro, the Barangay Government of Sabang, the host barangay Government of Sabang, the host barangay of the proposed project;of the proposed project;

Gave all Puerto Galerans and visitors a Gave all Puerto Galerans and visitors a stake in the program and in environmental stake in the program and in environmental protection i.e., through the Environmental protection i.e., through the Environmental Users Fee (EUF);Users Fee (EUF);

We made them realize that the future of We made them realize that the future of Puerto Galera and all its peoples lies in Puerto Galera and all its peoples lies in the the responsible useresponsible use of the environment. of the environment.

The History of THE SEWERAGE & WASTEWATER TREATMENT

PLANT PROJECT

A Municipal Project adopted byTHE COASTAL RESOURCES CONSERVATION AND MANAGEMENT

BOARD

2004November 17: Enactment of Ordinance No. 04-14, Creating a Coastal Resources Conservation and Management Board (CRMB) in Puerto Galera. The CRMB was re-organized by Executive Order No. 17, on January 5, 2009.

2005June: Formulation of Puerto Galera Coastal Resources Management Plan 2006-2010, “Building Strength for Sustainable Fisheries and Tourism, with assistance of WWF-Philippines.

2005 December 5-6: Visit of PEMSEA environmental and investment specialists to Puerto Galera upon invitation of the former Mayor Aristeo E. Atienza

2006 March 31: Execution of Tri-Partite Memorandum of Agreement between the Municipality of Puerto Galera, PEMSEA and SCOTIA.

April 19: Stakeholders Consensus Building and Action Plan Workshop was held in Puerto Galera

July 25: Training workshop conducted in Puerto Galera for the enumerators, facilitators and encoders for Willingness to Pay (WTP) Survey.

July 26 –August 1: PEMSEA, SCOTIA and WWF-Philippines conduct of WTP Survey using contingent valuation method (CVM.)

August 2 -14: Encoding of results of WTP survey by LGU staff.

2006August 28: Completion of Feasibility Study for Sabang Sewerage Collection and Treatment Plant Project by PEMSEA technical team, covering Sabang Beach, Big Lalaguna and Small Lalaguna with a total composite sewer area of 127,697 square meters.

2007January 24: Enactment of Municipal Ordinance 06-03, Establishing the EUF System in the Municipality of Puerto Galera.

November 16: Kick - off of EUF implementation. This is a very Kick - off of EUF implementation. This is a very memorable day.memorable day.

December 20: Enactment of Municipal Resolution No. 07-230, Prioritizing the Implementation of the Sewage and Wastewater Treatment Plan in the Municipality.

Puerto Galera is not only for Puerto Galera is not only for Puerto Galerans -- it is for the Puerto Galerans -- it is for the people of the world. Thus, people of the world. Thus, on on November 16, 2007 with November 16, 2007 with sheer sheer political willpolitical will and a genuine desire and a genuine desire to address the almost rapid to address the almost rapid degradation of our environment degradation of our environment we implemented the we implemented the Environmental Users’ Fee Environmental Users’ Fee systemsystem (EUF). (EUF). Thus began the classic Thus began the classic example of a true example of a true Public Private Public Private Partnership Partnership -- with the private -- with the private persons giving their share for persons giving their share for environmental care to the environmental care to the government that now spearheads government that now spearheads worthy and noble projects for our worthy and noble projects for our children’s future. children’s future.

Information and Education Campaign with the support ofTOSCA, USAid and SCOTIA - Philippines

2008June 30: Enactment of Municipal Resolution No. 2008-117, Approving the Sewerage Collection and Treatment System Project in Barangay Sabang and Request for Proposal, authorizing Hon. Hubbert Christopher A. Dolor, MD MPA, Municipal Mayor to Proceed with the Procurement and Competitive Bidding Processes in accordance with BOT Law.

March 5: 1st Sabang Public Consultation and Dialogue Concerning the Proposed Sewerage and Wastewater Treatment Plant to be located in Big Lalaguna area.

March 31: Enactment of Provincial Development Council Resolution No. 02, Series of 2008, Endorsing the Construction of Sewerage and Wastewater Treatment Plant at Big Lalaguna, Sabang, Puerto Galera

May 16: 2nd Sabang Public Consultation and Dialogue Concerning the Proposed Sewerage and Wastewater Treatment Plant to be located in Big Lalaguna area.

AUGUST 8, 2008 PROJECT PUBLIC CONSULTATION AND PUBLICITY CAMPAIGN

2008July 2 – 23: Publication of Invitation to Bid / Request for Proposals

July 22: Issuance of Bid Documents, with registration of 5 proponents.

August 7: Pre-Bid Conference

August 8: Formal launch of project, public consultation and municipal wide publicity campaign.

October 20: Submission of Proposals

October 20 – November 15: Evaluation of Proposals

December 10: Enactment MIMAROPA Regional Development Council of RDC Resolution No. 026-137-2008, Endorsing for Implementation of the Proposed Sewerage and Wastewater Treatment Project in Barangay Sabang, Puerto Galera, through LGU – Private Sector Partnership.

A PRIORITY MUNICIPAL PROJECT ADOPTED BY THE COASTAL RESOURCES CONSERVATION &

MANAGEMENT BOARD

2009January 28: Enactment of Municipal Resolution No. 001, Series of 2009, approving contract award to the winning bidder, Puerto Galera Water Consortium (now Puerto Galera Infrastructure Corporation) upon recommendation of the PBAC, with exercise of option to appoint winning proponent to operate, manage and maintain the sewerage collection and treatment system project.

January 29: Issuance of Notice of Award to winning proponent.

April 4: Execution of Contract with the private sector proponent

July 3: Release of notarized copy of contract.

APRIL 4, 2009 CONTRACT SIGNING

PERPECTIVE OF WASTEWATER TREATMENT FACILITYMODULAR / SBR – NH4 PO TECHNOLOGY

Capacity Capacity per Dayper Day 3,500 cu.m.3,500 cu.m.

Effluent Effluent StandardsStandards

per DENR DAO 35 for per DENR DAO 35 for SB marine watersSB marine waters

Fecal ColiformFecal Coliform200 MPN/100mL200 MPN/100mLmonthy geometric monthy geometric mean per 15 grabmean per 15 grabsamplessamples

Total Total Phosphorus Phosphorus (as PO4)(as PO4)

1Mg/L1Mg/L

Total Nitrogen Total Nitrogen (as TN)(as TN)

10Mg/L10Mg/L

DESIGN PARAMETERS:

Sequential batch reactor (SBR), a biological cleaning process with application of NH4 PO process for the removal of phosphorus and nitrogen and modular system for treatment of additional capacity in the future.

Sewerage Pipe Laying: An Opportunity to Improve Beachfront Walkway

EXISTING BEACHFRONT

WALKWAY

EXISTING DIRECT DISCHARGEOF SEWERAGE TO BEACH

SAMPLE BEACHFRONT WALKWAY DEVELOPMENT

Puerto Galera . . .Malaparaisong Dalampasigan

We cannot,We cannot,

we will not, we will not,

and we must and we must not not

neglect the marine neglect the marine environmentenvironment Because WE MUST NOT

COMPROMISE the FUTURE..

This is the Puerto Galera we know now -- vibrant, enjoyable and beneficial to mankind. We MUSTMUST endeavor to leave this paradise to the future

generations. Shouldn’t we be part of its conservation?

WE PUERTO GALERANS ARE!!!

Even doing it not alone but through

Public-Private Public-Private PartnershipPartnership

MaramingSalamat Po !

We value the PARTNERSHIP we have established with everyone and with every sector . . .

Mayor Hubbert “MD” A. Dolor, MD, MPAMunicipality of Puerto Galera, Oriental Mindoro