The Sewerage & Wastewater Treatment Plant Project (A Public-Private Partnership)

1. The Sewerage & Wastewater Treatment Plant Project(A Public-Private Partnership) The Puerto Galera Experience Presented by Mayor Hubbert “MD” A. Dolor, MD, MPA Public Private Partnership - A Case Study National Conference on ENR Financing September 24, 2009, Manila

2. What is Puerto Galera? • a small municipality of approximately 25,247.23 hectares • has 42 km. long coasts, consisting of shorelines rimmed with dazzling white beaches, coconut plantations and delightful scenery • 130 km South of Manila

3. is strategically located at the northernmost tip of the province of Oriental Mindoro • lies along the Verde Island Passage Marine Biodiversity Conservation Corridor where the South China Sea and the Pacific Ocean waters converge; bringing in nutrients that sustain the biodiversity of marine life in the area.

4. 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.

5. The Verde Island Passage is now more popularly known as the where Puerto Galera lies. Must we remain as mere spectators? We cannot. We must do something about the rapid degradation of the marine environment. “center of the center of marine biodiversity”

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

7. Why do we say these? • To emphasize the fact that this town is significant not only in history but also geographically. • Taking into consideration environmental economics, we say, we have to sustainably protect our environment.

8. There’s the DENR, the WWF, the MSI, the SCOTIA and the PEMSEA, to name a few. 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-called environmental economics? Who can teach us these? You mean, all public and private persons including the different institutions. Why not? Why don’t we tap all sectors?

9. HIGH HIGH COST DOING NOTHING ABOUT SEWAGE POLLUTION RISK COST • 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. • 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.

10. Current situation:

11. 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 aGod-centered citizenry

12. Here is our basis in saying there is gradual degradation in the environment: Sabang, Puerto Galera 2006 FECAL COLIFORM GEOMEAN RQ Seashore Resort 883.69 4.42 Near Sabang Inn 10,945.93 54.73 Pavillon Floating Bar 2,504.30 12.52 Triton Diver 48,929.66 244.65 Mabuhay Resort 174.64 0.87 La Laguna Beach Club 59.91 0.30 Source: Department of Environment and Natural Resources Water Quality Monitoring

13. Now, how do we perceive the problem of sanitation taking 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.

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

15. What did we / what did I do as the new leader of Puerto Galera? • Evaluated local government systems and implemented new ones to effect desired changes; • Held several consultative meetings from day 1 in office, with almost all of the residents of this municipality from all sectors;

16. Implemented unpopular measures like the EUF collection as a major step in caring for our precious environment and cure financial anemia; and • Currently, take all political risks by engaging in the Build-Operate-Transfer scheme as amended by RA 7718 of constructing the much needed Sewerage and Wastewater Treatment Project though opposed by some.

17. Is it a Priority Program? • Yes, it is! We have to help save the environment. • Sanitation has always been a first priority because we foresaw that with even a bit of bad news that Puerto Galera waters is contaminated, tourism will die, and everything that the local government worked for will be gone – so is the future of its people. • If it isn’t a priority, we don’t know what is!

18. What resources have been mobilized? • Mostly, it’s human resource, time and effort. • Conducted intensive information and education campaigns even in schools. • Tackled the problems on solid waste and wastewater in several meetings so that the different sector heads and members were conditioned that what our government should do is address the environmental problem.

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

20. How were we able to get the stakeholders’ support? • Through involvement – encouraged them to share in every aspect of the program: on pre-implementation, during implementation, and in evaluation of program/project progress. • Through collaboration – program launches were done in different barangays (the smallest unit of government in the Philippines).

21. Through example – by sheer display of transparency, the legislative body supported all programs of government. • Through establishment of trust – leaders who were delegated to do different tasks were left to decide on matters that fall under their jurisdiction.

22. What legislative support do we have? • Since 1989, we enacted municipal laws. regulations and policies which are now compiled into a book recognized even by the Department of Environment and Natural Resources; • In 1992, RA 7160 was passed. Section 16 of which “. . . encourage and support the development of appropriate and self-reliant scientific and technological capabilities. . .” by local government units;

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

24. In November 16, 2007 with enabling ordinances (the IRR on the EUF) we started the EUF system collection. • 1st quarter of 2008 – started negotiations with all stakeholders on the then proposed Build-Operate-Transfer scheme as amended by RA 7718 of constructing the controversial Sanitation and Wastewater Treatment Project.

25. How were we able to get the support of the communities and the tourism sector in this program? • Held consultative meetings/public hearings on the proposed program/project; and • Made them part of the Technical Working Group (TWG) that dealt with every aspect of program/project implementation from planning up to the actual negotiations with the partner agency.

26. What other factors contributed to a workable sanitation program? • Worked based on legal requirements from the Department of Environment and Natural Resources (DENR), the National Economic and Development Administration (NEDA), the Department of Interior and Local Government (DILG), the Department of Budget and Management (DBM), the Department of Health (DOH), and other concerned agencies;

27. Consulted laws, policies and regulations, to wit: the BOT Law, RA 7160, DAO # 34 & 35, and other pertinent laws; • Collaborated with World Wide Fund (WWF), the Partnerships in Environmental Management for the Seas of Asia (PEMSEA), Sustainable Coastal Tourism in Asia (SCOTIA), the Provincial Government of Oriental Mindoro, the Barangay Government of Sabang, the host barangay of the proposed project;

28. Gave all Puerto Galerans and visitors a stake in the program and in environmental protection i.e., through the Environmental Users Fee (EUF); • We made them realize that the future of Puerto Galera and all its peoples lies in the responsible use of the environment.

29. The History of THE SEWERAGE & WASTEWATER TREATMENT PLANT PROJECT A Municipal Project adopted by THE COASTAL RESOURCES CONSERVATION AND MANAGEMENT BOARD 2004 November 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. 2005 June: Formulation of Puerto Galera Coastal Resources Management Plan 2006-2010, “Building Strength for Sustainable Fisheries and Tourism, with assistance of WWF-Philippines.

30. 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.

31. 2006 August 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. 2007 January 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 memorable day. December 20: Enactment of Municipal Resolution No. 07-230, Prioritizing the Implementation of the Sewage and Wastewater Treatment Plan in the Municipality.

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

33. Information and Education Campaign with the support of TOSCA, USAid and SCOTIA - Philippines

34. 2008 June 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.

35. AUGUST 8, 2008 PROJECT PUBLIC CONSULTATION AND PUBLICITY CAMPAIGN

36. 2008 July 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.

37. A PRIORITY MUNICIPAL PROJECT ADOPTED BY THE COASTAL RESOURCES CONSERVATION & MANAGEMENT BOARD

38. 2009 January 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.

39. APRIL 4, 2009 CONTRACT SIGNING

40. PERPECTIVE OF WASTEWATER TREATMENT FACILITY MODULAR / SBR – NH4 PO TECHNOLOGY 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.

41. Sewerage Pipe Laying: An Opportunity to Improve Beachfront Walkway EXISTING BEACHFRONT WALKWAY EXISTING DIRECT DISCHARGE OF SEWERAGE TO BEACH

42. SAMPLE BEACHFRONT WALKWAY DEVELOPMENT

43. Puerto Galera . . . Malaparaisong Dalampasigan

44. We cannot, we will not, and we must not neglect the marine environment Because WE MUST NOT COMPROMISE the FUTURE..

46. This is the Puerto Galera we know now -- vibrant, enjoyable and beneficial to mankind. We MUST 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 Partnership

47. We value the PARTNERSHIP we have established with everyone and with every sector . . . Maraming Salamat Po ! Mayor Hubbert “MD” A. Dolor, MD, MPA Municipality of Puerto Galera, Oriental Mindoro