Sewage Collection System and Treatment Facility in Brgy.Sabang, Puerto Galera. A project of the Municipality of Puerto Galera

Transcription

1 Sewage Collection System and Treatment Facility in Brgy.Sabang, Puerto Galera A project of the Municipality of Puerto Galera

2 Why do we need a sewage system? Brgy. SABANG, PUERTO GALERA, 2006 FECAL COLIFORM GEOMEAN RQ Seashore Resort Near Sabang Inn 10, Pavillon Floating bar 2, Triton Diver 48, Mabuhay Resort La Laguna Beach Club Source: Department of Environment and Natural Resources Water Quality Monitoring

3 Current Situation

4 Current Situation

5 Current Situation

6 What are some of the risks of doing nothing about sewage pollution? Increased health risk (e.g., diarrhea; typhoid; polio; hepatitis) Further deterioration in river water and coastal water quality (e.g., reduced oxygen; algae build-up; odor; transparency) Further deterioration in quality of habitats (e.g., corals, seagrass) Decline in fisheries HIGH

7 What are the costs of doing nothing about sewage pollution? Loss of income due to illness/death Doctors/drugs/hospital costs Tourists go elsewhere tourist industry declines Tourism-related livelihoods and jobs decline Fishers income reduced Standard of living reduced HIGH COST

8 Puerto Galera is an Important Model a small municipality, classified as third class with residents of around 28,035, with limited resources to deal with the issues of marine pollution and solid waste Yet - is a significant contributor to the country s tourism industry. Strategically located in the world center of marine biodiversity A world-class diving haven with 37 dive sites Puerto Galera Bay is one of the world s most beautiful bays and the first in Asia Annually hosts a million local and foreign tourists CONCERN FOR THE ENVIRONMENT

9 Goal To protect the coastal and marine environment and natural resources of Puerto Galera from land-based pollution

10 The Sewerage Project Objective Consistent with the vision of the CRMP , to provide excellent sewerage infrastructure supporting high quality tourism and abundant fisheries, in an integrated manner

11 ROAD MAP Study Tour and site visit of Mayor - Jan Study tour/site visit of SP members - Feb Action Planning April MOA March Willingness to Pay Survey, Jul Project Study August Site Identification and Legal Due Diligence, Feb PENRO/ CENRO Site Visit and Validation March Meeting with DENR Sec March CRMB Meeting Project Presentation March MOA April/ Sept Stakeholder Consultation EUF Ordinance Development, Aug 06 Jan 07 SB -EUF Ordinance Feb SP Committee Hearing- EUF Ordinance -Mar CRMB Meetings EUF IRR Drafting, Feb? S t a k e h o l d e r I n f o r m a t i o n, E d u c a t i o n a n d C o m m u n I c a t i o n

12 Conclusions 1. The tourism industry is vital to the economic growth of the municipality, as such it is ECOTOURISM based; 2. Thus, a comprehensive approach is required to address sustainable development program for tourism in Puerto Galera; 3. And, the proposed sewage collection and treatment project is a critical component of the required environmental infrastructure;

13 Conclusions 5. No single sector or source of funding in Puerto Galera is capable of financing the entire investment and operating cost of the project; 6. For the project to be viable and affordable, a combination of revenue sources need to be tapped, including the central budget of the municipal government, the (potential) users of the sewage services, the tourists who benefit from improved environmental quality, and others; 7. A public-private partnership arrangement offers the opportunity to tap the technical and management skills of the private sector, while gaining access to financing at market-rate.

14 The Sewage Collection System and Treatment Facility Project Project Coverage 124 tourist resorts (95%) 550 commercial establishments (88%) 2,349 households (53%) 14,100 population (53%) 49.5 km 2 land area (20%) Three Hotspots - Three individual sewerage systems

15 Estimated Costs Capital Costs: Sewage Collection and Treatment Zone 1 Sabang/Sinandigan (55% of the tourists): PhP 107.1M* Zone 2 San Isidro/Aninuan (37% of the tourists): PhP 77 M Zone 3 Sto Nino/Poblacion (3% of the tourists): PhP 33 M Total Capital Cost : PhP 217.1M *includes cost of the land

16 Estimated O&M Costs Annual Operation and Maintenance Costs Zone 1 Sabang/Sinandigan (55% of the tourists): Zone 2 San Isidro/Aninuan (37% of the tourists): Zone 3 Sto. Nino/Poblacion (3% of the tourists): Total O&M Cost (year 1): PhP12.7 million PhP8.9 million PhP3.6 million PhP25.2M

17 Public-Private Partnership Arrangement PPP Objectives Access to innovative technologies, management and operating arrangements Access to capital Reduced risk in cost overruns and time delays design and construction Reduced risk in operating facilities, including operating costs, and violation of required effluent standards Opportunity to build a Corporate Structure with a private partner Ownership of facilities Control over tariff structure and fee collection

18 Sewage Collection System and Treatment Facility: The Sabang System Attracting Private Sector Participation

19 Fast Facts on the Sabang System Area Covered Estimated Volume of Sewage Barangay Sabang, Big Lalaguna, Small Lalaguna 3,500 m 3 /day (peak tourist season) Length of Sewer Site of treatment facility Total Investment Cost 4,683 meters, with 4 pumping stations Sitio Big Lalaguna, Sabang PhP million

20 Treatment Facility Site 3,000 sqm undeveloped area in Sitio Big Lalaguna, Sabang a perenially flooded requiring use of some low cost options such as lagoons, polishing ponds and engineered reed beds approximately 10 meter in elevation from the shoreline, representing the needed lift in hydraulic slope for resorts close to the shore.

21 TWG Executive Order No. 13 Created the TWG-PPP (technical working group-public private partnerships) to study the project and the various procurement processes in order to make appropriate recommendations to the Local Chief Executive and the BAC Membership 2 Councilors from the SB Municipal Engineer Municipal Environment and Natural Resources Officer Municipal Planning and Development Officer Municipal Tourism Officer Municipal Health Officer Councilor from Bgy. Sabang Representatives from the Private Sector and Resort Establishment

22 Design Considerations Pumping stations Buffer area Total No. of manholes Total length of pipes Pipe sizes a. Main connection b. House connection Sewerage system operation Two (2) pumping stations in Sabang, One (1) in Big Lalaguna near the proposed treatment facility site, and One (1) in Small Lalaguna sufficient buffer area between the plant and the existing community 36 4,683 linear meters from 200mm to 450mm diameter house from 100mm to 150mm diameter combined conventional and modified sewer system based on the actual condition and terrain of the area

23 Estimated Costs Construction costs of the treatment facility Construction costs of Sewerage and Collection System including outfalls - O&M TOTAL P 52.6 M P 41.8 M P 94.4M P 12.7 M Cost of Land (LGU)

24 BIG LA LAGUNA SMALL LA LAGUNA EXISTING SEPTIC TANK UPGRADED TO PUMP STA. P1A SABANG Layout of the proposed sewerage system 1 S-01 ALTERNATIVE 4 SEWERAGE SYSTEM PLAN SCALE 1 : 2000 METERS.

25 Project Challenges 1. Capital funds to design and construct the system 2. Sources of revenue to operate the system 3. Project development and management capacity

26 Access to Capital Financing 1. Development banks (e.g., DBP; LandBank) or commercial bank (e.g., LGU-GC) 2. Private investor(s) (e.g., holding company) 3. Private partner (e.g., BOT, joint venture, etc.)

27 Financing and Investment Attractiveness A project of the Municipality of Puerto Galera

28 LGU Sources of Revenue For Repayment and O&M Costs 1. LGU: Central budget of the LGU 2. Users of Sewerage Services (Households and Establishments based on User/polluter WILL pay principle): thru - a. Connection Fee (one-time) b. Sewerage Fee (monthly) c. Tipping Fee (per discharge of siphoned wastes from septic tanks from other barangays 3. Tourists: Environmental users fee Other Options 4. Wastewater Users: fee from use of wastewater 5. Landowners: special taxes on land to finance infrastructure

29 Revenue Estimates 1. Local Government Support: Increase/commit revenues to cover a portion of the annual costs (i.e., the management costs of the proposed facility - PhP1.9 to 2.6 million/year for the first 10 years)

30 Revenue Estimates 2. User Fees for Sewerage Services: Users pay a fee, based on water usage, willingness and ability to pay The goal is to cover the annual O&M costs of the Sabang facility (i.e., PhP12.5 million in year 1) Simple Calculation* Households (15PhP/person/month): Tourist establishments (PhP12,500/month): Commercial (PhP1,500/month): Potential revenue (Year 1) PhP 0.43 million PhP 9.30 million PhP 4.3 million PhP14.03 million

31 3. Tourists/EUF: Revenue Estimates EUF reviewed annually to determine efficiency, effectiveness and reasonableness of the fee With EUF Php50/tourist arrival, 280,000 tourists would generate the required Php14 million per year for the Sabang system

32 Project Development and Management 1. Technical skills to develop, plan and implement a sewage collection and treatment project 2. Development of a business plan/access the necessary capital 3. Experience in operating a sewage collection and treatment system in accordance with the national and local regulations and meeting the community s expectations 4. Experience in a corporate approach to managing a sewerage facility

33 Project Development and Management Forge a partnership with the private sector, to access experience and skills in planning, design, construction, operation and management of the facility Number of models (and risks) when working with the private sector: BOT DB + management contract (+ Joint venture) DBFO + Joint venture

34 Conclusions: The Way Forward 1. The local government, users of the sewerage service, and the tourists who will benefit from the service have a moral responsibility to pay; 2. A variety of fee schedules are possible, but due consideration to fairness (i.e., use of the services) and ability to pay is required; 3. By sharing the costs across the three sectors, the project is affordable and doable within a 10-year timeframe.

35 Conclusions: The Way Forward 4. The PPP approach provides the municipality with access to technical and management skills, experience and financing of the private sector to implement a cost-effective and efficient project; 5. The PPP process is transparent and interactive, and provides stakeholders with due diligence assessments of capital and operating costs, project risks, and roles and responsibilities for managing risks;

36 Examples Subic Bay

37 Examples Punta Fuego