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3. Objectives

The development objectives of the Manila Third Sewerage Project are to: (a) increase the coverage and effectiveness of sewerage service delivery in participating areas of Metro Manila through an integrated approach involving septage management, sewage management, and heightened consumer awareness of water pollution problems and their solutions; and (b) establish the financial and technical viability of new approaches for sewage management in MM.

The objectives of the MTSP areis to reduce water pollution in Manila Bay, Laguna Lake and Pasig River as reflected in the pollution mitigation action programme of the Manila Bay Coastal Strategy and thereby improve the living conditions of urban residents, including the poor, by reducing human exposure to sewage. It will also make strategic investments in sewerage and sanitation, and establish the viability of new approaches for sewage management in MM.
The objectives of Private Sector Support to MWSS Financial Rehabilitation are not fully defined yet. They will be defined by June 2006 as part of the proposed GEF project, specifically component 3 on the Public-Private Sector Investments in Priority Sewerage and Sanitation Projects.

4. Outputs


The MTSP comprises three components, all located in the MWCI concession area:

  1. Sewage Management component would include construction of ten sewage treatment plants, upgrading of two communal septic tanks to secondary treatment, and rehabilitation and construction of collection networks.

  2. Septage Management component would include vehicles (fecal tankers) for pumping-out septage1 from septic tanks, two septage treatment plants, and the safe disposal of treated septage.

  3. Technical Assistance component would include (a) specialized consulting services during implementation, (b) a public information campaign on the benefits of sewerage and sanitation, and (c) assist in preparation of follow-up programs for wastewater and sanitation improvements.

The components of Private Sector Support to MWSS Financial Rehabilitation are not defined yet; they will be defined by June 2006, and will all be located in the MWSI concession area. The proposed GEF project activities will influence the definition of those components.



B - Country Ownership


  1. Country Eligibility
    The Philippines is eligible for GEF assistance under the International Waters Focal Area through the World Bank.




  1. Country Driven-ness

The enactment of the Philippines’ Clean Water Act (CWA) of 2004 indicates the directions to be undertaken with respect to the protection, preservation and revival of the quality of the country’s fresh, brackish and marine waters. It puts in place a holistic national program of water quality management, which that recognizes that water quality management issues are not distinct from concerns about water sources and ecological protection, water supply, public health and quality of life. The MTSP IMBCS project supports the implementation of the CWA by unifying current fragmentation in the policy and regulatory regimes within the three watermajor bodies of water, bringing water quality objectives into compliance with the CWA, and leveraging investments critical for attaining water quality targets at the national level. and with significant implications on the LMEs of the East Asian Seas.
National level support is likewise articulated in the country’s Medium-Term Development Plan (MTPDP) -(2004-2020110) and the President Macapagal Arroyo’s 10 Point Agenda in ensuring regular supply of water to the entire country. The MTPDP gives due prominence to the protection of watersheds and coastal zones through integrated watershed and coastal area management, as well as and the attainment of the country’s Millennium Development Goals.
As a member of the ASEAN, the country has committed to attain by 2010, river water quality standards, with the highest priority to be accorded to urban and industrial pollutants. The marine water quality criteria for the ASEAN region, which sets parameters and values for the protection of aquatic and human life, is similarly recognized by the Philippines. The country is also one of the 12 coastal states of the East Asian region to sign the Putrajaya Declaration of Regional Cooperation for the Sustainable Development of the Seas of East Asia, thereby committing to regional cooperation to address transboundary issues of common concern. as articulated in the Sustainable Development Strategy for the Seas of the East Asia.
In the light of these imperatives and ccommitments, the DENR, PRRC, LLDA and MWSS have requested the Bank and GEF to support the MTSP in applying best international engineering and management practices, and innovative approaches to sewerage, sewage, and septage treatment. The Government has confirmed that the project and its service, as well as its environmental targets, reflect national priorities. LGUs and local communities have been notified of and briefed on the project through the involved agencies, libraries and consultative meetings, and have expressed their support for it. The project is designed to service areas with high population density where the poor prevail; therefore, it addresses the World Bank Country Assistance Strategy (CAS) theme of enhanced access to basic services for the poorest and disadvantaged groups.


C - Program and Policy Conformity


  1. Project Conformity


Conformity with OP 10:

The proposed GEF-funded activities under the MTSP are consistent with the GEF’s Operational Program (OP) 10, the Contaminant-based International Waters OP in that it will demonstrate and encourage replicable innovative approaches to wastewater collection and treatment. Its innovative features include: (a) a decentralized approach to sewerage master planning, with q focus on high population density areas with concentrated pollution, (b) the locations, technologies and the small-scale size of the treatment plants reflect the shortage of land, and (c) the use of a cost effective and environmentally sound combined sewerage system, which is uncommon in the Philippines in the collection of wastewater.


Conformity with overall Program Criteria:
The Program Brief, for the Pollution Reduction Investment Program for the Large Marine Ecosystems of East Asia, scheduled for submission to the GEF Council in November 2005, is still under formulation, but the general criteria for financing have already been defined. Pollution reduction components of World Bank projects that are most likely to receive GEF co-financing under the Program typically meet one or more of the following criteria: (i) demonstrate a new pollution control technology or technique; (ii) “try and test” a pilot where there is low public awareness, limited experience, and where the client is not be willing to take on that cost; (iii) are innovative institutional mechanisms or technical solutions to combat land-based water pollution; and (iv) are easily replicable and/or scalable. The Program would focus mainly on pollution hot-spots in the coastal areas of China, Indonesia, Philippines, Vietnam and Cambodia.
The proposed GEF-funded activities under the MTSP clearly meet the criteria listed above. GEF funds support the development of suitable water quality and sewage treatment standards, the coordination and integration of existing water pollution control master plans, and test the extension of an innovative technology - joint treatment of sewage/septage by small treaatement plants.

Without GEF, such development in standards, integration, and innovations would not be implemented on a full MM-wide scale. These indispensable institutional and technological efforts are not funded under the baseline project because they are sensitive, even when recognized by those involved as necessary. Typically they would not be carried out by any sector agency in the Philippines.


Treatment of septage by STPs has been tried before but not in MM. The design for MM must be based on actual pilot tests and practical experimentation. Once proved successful, it is relatively easily replicable in each STP within MM, including the MWSI service area. Such experimental testing of technology in new environments is an excellent candidate for GEF support. As noted in Section 4 (Replicability), a replication strategy is planned both under the project and the overall Program.

Conformity with GEF Strategic Priorities:

The project is also consistent with GEF Strategic Priorities (SP) 1 and 3 for the International Waters Focal Area in 2004-06. With respect to Ppriority 1, it will facilitate the efforts of a nation that signed the Putrajaya Declaration of Regional Cooperation for the Sustainable Development of the Seas of East Asia to mobilize financial resources for implementing policy/institutional reforms and stress-reducing investments to address a priority trans-boundary water issue (land-based pollution of a shared water body) that is highlighted in the declaration. The Manila Bay Coastal Strategy is a critical component of the Strategic Action Plan (SAP) for the South China Sea, one of five large marine ecosystems in the region, which lays the foundation for bay-wide cooperation for restoring the productive capacity of the bay and addressing issues of transboundary concern. The regional targets embodied in the SAP and the WSSD are hence built into this planned GEF support.


Furthermore, as called for by the SP 1, these resource mobilization efforts are mainstreamed into the regular program of a GEF agency, in this case the World Bank, under the framework of a strategic partnership among nations and the GEF agencies that support the World Summit on Sustainable Development’s (WSSD) Plan of Implementation outcomes.

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With respect to Ppriority 3, the project will demonstrate the feasibility of innovative technical solutions, which accelerate investments in wastewater structures that reduce pollution of the rivers and the contamination of an international water body. The combination of these particular sewage collection and treatment technologies represent least-cost solutions that generate a mix of local and global benefits.





  1. Project Design


Problem Statement

Unprecedented economic growth in East Asia has resulted in rapid urbanization, particularly in the coastal regions of those countries. The environmental impact of this rapid development over the last 2 decades has been largely borne by the main water bodies and seas of East Asia. The result is severe land-based pollution of East Asia’s seas, coasts, estuaries and rivers. This is a well-recognized problem by the countries in the region, including the Philippines.


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