Metropolitan Waterworks and Sewerage SystemManila Water Company, Inc.

E94Volume 12

Initial Environmental Examination

of the

Community Sanitation ProjectManila Second Sewerage Project

IBRD 4019

Project No. 10PALACOL LOT D

Taguig, Metro Manila

Prepared by:

Manila Water Company, Inc.489 Katipunan Rd, Balara, Quezon City

December 2001 -

Fl EC!Ydpw I L Cu" r I a-

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TABLE OF CONTENTS

PAGE NO.

Executive Summary 7

1.0PROJECT DESCRIPTION

1.1 BASIC PROJECT INFORMATION 11

1.2 PROJECT LOCATION 12

1.3 PROJECT RATIONALE 12

1.4DESCRIPTION OF PROJECT PHASES

1 .4.1 Pre-Operational/Construction Phase

1.4.1.1 Construction Plan 14

1.4.1.2 Total Surface Development Block 16

1.4.1.3 Estimate Total Area to be opened for Civil Works 16

1.4.1.4 Major Openings and Construction Activities 16

1.4.1.5 Types of Equipment to be Used 18

1.4.1.6 Source of Construction Materials and Facilities 18

1.4.1.7 Support Services and Facilities Requirements and

Availability 1 8

1.4.1.8 Estimate of Total Cut Soil Volume 18

1.4.1.9 Total Manpower Requirement 19

1.4.2 Operational Phase

1.4.2.1 Project Operation Schedule and Duration 19

1.4.2.2 Process Technology and Activities 19

1.4.2.3 Waste Production Scheme 21

1.4.2.4 Manpower Requirement 21

1.4.3 Abandonment Phase 23

2.0 BASELINE ENVIRONMENTAL CONDITIONS

2.1 STUDY METHODOLOGY

2.2 LAND

2.2.1 Land Resource Utilization 23

2

2.2.2 Physiography and Geology 23

2.2.3 Vegetation and Wildlife 23

2.2.4 Land Acquisition Assessment 25

2.3 WATER

2.3.1 Inventory of Water Bodies 25

2.3.2 Water Quality (Surface/Ground) 25

2.4AIR 26

2.5 PEOPLE

2.5.1 Population/Beneficiary 26

2.5.2 ProjectAffected Persons 26

3.0 PROJECT ALTERNATIVES 26

4.0 IMPACT ASSESSMENT

4.1 IMPACT IDENTIFICATION

4.1.1 Impacts During Construction Phase 28

4.1.2 Impact During Operation Phase 29

4.2 IMPACT PREDICTION AND EVALUATION 32

4.3 UNAVOIDABLE AND RESIDUAL IMPACTS 32

5.0 ENVIRONMENTAL MANAGEMENT PLAN

5.1 IMPACTS MITIGATION / ENHANCEMENT PLAN 32

5.2 ENVIRONMENTAL MONITORING ACTION PLAN 37

6.OCOMMUNITY CONSULTATION PROCESS 38

LIST OF FIGURES

1 Location Map of BLC 13

2 Proposed Implementation Schedule 15

3 Proposed STP Site Layout 17

4 General Treatment Process Scheme 22

5 Photograph of STP site 24

4

LIST OF TABLES

1 Typical Analysis of Septic Tank Effluent Quality 14

2 Estimates of Soil Excavation Volumes 19

3 Influent Flow Characteristics 20

4 DENR Effluent Parameters for Class C Waters 20

5 Sources and List of Potential Environmental 27Impacts

6 Typical Noise Emissions of Construction 29Equipment at Various Distances from Source indB(A)

7 Sludge Production of Various Wastewater 30Treatment Processes

8 Summary of Assessment of Environmental Issues 31/ Impacts

9 Environmental Management Plan 32

10 Environmental Monitoring Action Plan 37

11 Institutional Monitoring 38

5

LIST OF ANNEXES

1 Manila Water Company STARRT Card for Monitoring

Construction Works

2 Wastewater Quality Monitoring Schedule

3 Environmental Compliance Certificate (ECC) NCR-2000-12-

11-0262-211

4 Manila Water PCO Report Format

5 Sample Monitoring Sheet for Effluent Quality

6 Endorsement from the Barangay Captain

7 Memorandum of Agreement (MOA) between Manila Water

Company and the Bases Conversion Development Authority

(BCDA)

EXECUTIVE SUMMARY

The proposed project for Palacol Lot D is one of the twenty-three (23) sub-projects of the Community Sanitation Project Phase 1, which is a component ofthe World Bank-assisted Manila Second Sewerage Project (MSSP).

The project is intended to reduce the current wastewater pollution discharged tothe Laguna Lake by the seven hundred and eighty (780) households in PalacolLot D. The project involves the improvement of the sewerage system in thecompound. Specifically, the project includes the installation of new sewer lines tointercept combined sewage and wastewater flows from the storm drain andseptic tanks. An underground sewage treatment plant (STP) will be constructedto treat the wastewater flows.

A Memorandum of Agreement (MOA) between Manila Water Company and theBases Conversion Development Authority (BCDA) will be executed for theproject.

In conformity with the requirements of the Department of Environment andNatural Resources (DENR), an Environmental Compliance Certificate (ECC)NCR-2000-12-11-0262-211 issued pursuant to P.D. 1586 was secured for theproject.

I. BASELINE ENVIRONMENTAL CONDITIONS

Palacol Lot D, also known as Project Dreamland/Lupang Katuparan wasdeveloped by the Bases Conversion and Development Authority (BCDA) as arelocation site for the population affected by the disposition of portions of the FortBonifacio military reservation. It is bounded by Hagonoy Creek in the south andColonel Ballecer Street in the west. The 82,000-square meter property is cut into780 parcels intended to shelter an estimated population of 5,460.

Floral population within Palacol Lot D constitutes ornamental plants and a fewtrees. Faunal population is limited to household pets and stray animals. Thearea is characterized by a relatively even distribution of precipitation during theyear. Like in most parts of Metro Manila, the area has two distinct seasons: thedry season during the months of November to May and the wet season duringthe months of June to October.

Existing Sewerage System

The sewerage system of Palacol Lot D is made up of polyvinyl chloride (PVC)sewer pipes with diameters ranging from 150-200 millimeters as indicated in theplans. The sewer lines collect wastewater from the individual septic tanks of the780 households having an equivalent population of 5,460. From the septic tanks,settled wastewater flows to a chlorine contact chamber which is currently not in

7

use. Untreated wastewater then flows to the Hagonoy Creek which finds its wayto the Laguna Lake. The current BOD5 of the Laguna Lake ranges from 2-5 mg/Lwhich falls within the BOD5 for Class C waters. DENR Administrative Order 34(DAO 34) describes Class C water as that suitable for the following:

1. Fishery Water for the propagation and growth of fish and other aquaticresources;

2. Recreational Water Class 11 (Boating, etc.);3. Industrial Water Supply Class I (For manufacturing processes after

treatment).

II. ENVIRONMENTAL IMPACTS AND MITIGATING MEASURES

PotentialEnvironmental Mitigating Measures

ImpactCONSTRUCTION PHASE

1. Poor quality of * Manila Water Company will monitor the supply and installationconstruction contract to assure quality of equipment and construction. Site

Managers and Engineers with experience in constructionmanagement shall approve all materials and equipment to beused and installed at the site.

* The contractor will be required to post a performance bond forthe Design and Construction Contract of the sewerage system.

2. Air pollution . Efficient construction planning and work scheduling(suspended particulates, * Formulation of appropriate work plans, work scheduling, workodor and fumes, vehicle specifications and work methodologiesemissions eg. CO2 , CO . . Provision of properly maintained storage area for keepingNOx) stocks of construction materials and equipment

. Prompt and fast removal of excavated materials or dredgesspoils from construction site

. Sprinkling of water on dust-generating mounds of resultingfrom earthmoving activities and civil works.

* Control of motor vehicle emissions. Dust accumulation will also be prevented through proper

washing of the vehicles prior to its departure from the site. Development and enforcement of strict health and safety

pollution control regulations specific for the project site- Good housekeeping of workplace and construction

affected areas- Use of Protective Gear by all workers

8

3. Water pollution due to . Provide temporary drain systems and storage facilities forwastewater, oil excavation soils, fuel and oils needed for equipmentleakage/spills . Cautious and sensible planning for construction and post-

construction phases of the project. Provision of a routine chemical and oil spill clean-up plan. Formulation of a monitoring program

4. Noise pollution from . Establish temporary sound barriers around the work siteoperation of construction . Proper scheduling and phasing of high-noise activitiesequipment . Use of appropriate mufflers and sound proofing for

construction machinery, equipment and engines. Use of Personnel Protective Equipment by all workers

5. Temporary disruption of . Public information campaign posting schedule of constructiontraffic flow within the . Provision of a liaison officer from the residents of thecompound compound to assist the information dissemination regarding

inevitable changes in schedule of operations. Provision of temporary alternative routes, including visible

traffic warning signals. To the extent possible, sewer lines and manholes will be

constructed in common areas not used for pedestrian orvehicular traffic

. Scheduling of delivery materials and removal of excavatedmaterial during non-rush hour periods.

OPERATIONAL PHASE1.Environmental hazards. . Carefully designed post-construction maintenance,due to accidents, man- contingency and monitoring programsmade and natural disasters . Well designed plan for detection of accident or natural eventseg. accidental spills, fire, including precautionary and remedial measures to beseismic activity, observedearthquakes, heavy . Provision of preventive and remedial procedural manuals atrain/flooding and design workplacefailure . Adequate plans for environmental rehabilitation and

restoration of site and removal of temporary structures andfacilities installed during construction phase

2. Water Pollution (effluent . Wastewater discharged by the STP shall conform with thedischarge) Effluent Standards set forth in DENR Administrative Order 34

and 35 for Class C waters. Regular monitoring of wastewater effluent by the Manila Water

Company Central Laboratory. Regular check on sewer lines to prevent discharge/seepage of

untreated wastewater to the environment. Quality of civil work on the STP facility shall be enforced

during construction to avoid seepage

3. Noise Pollution (STP a Use of appropriate mounting for machinery to minimizeequipment, lift station) vibration

. All mechanical/electrical equipment shall be installed insideenclosures

. If appropriate, motors shall be provided with soundproofingdevices

. Maintenance of greenbelt zones and vegetation withappropriate tree species

9

4. Solid Waste . Solid waste generated within the STP facility will be minimal(generated within the facility but provision will be made for garbage collectionand by the facility) . Disposal of sludge generated will be in accordance with

established procedures of relevant authorities (disposal ofsludge for use as soil conditioner)

5. Odors (organic and sulfur . Maintenance of greenbelt zones and vegetation withcompounds coming from appropriate tree speciesraw wastewater and during . Provision of landscape which will improve the aesthetic of thedesludging of septic tanks) area by planting green strips using appropriate plant or tree

species* Provision of odor control mechanisms

(deodorizer/adsorbent/masking agent) to prevent malodorousemissions)

6, Maintenance and . Regular asset condition monitoring by Manila Water CompanyOperation of the System personnel* Poor maintenance of . Regular maintenance works for STP equipment (pumps and

mechanical equipment motors), sewer nehvork and septic tanks(pumps and motors) . Adequate training of STP operators

* Connections . A liaison officer from the Community will assist the STPoperator in assuring the facility's efficiency in operation

* Provision of adequate maintenance equipment and spares forthe sewerage system facility

111. ENVIRONMENTAL MONITORING PLAN

Environmental monitoring will be the responsibility of Manila Water Company.

- B 0 T: 1 .&

Construction Phase

Compliance with Manila . At STP site and its * On-the-spot dailyWater Company health and perimeter inspection andsafety policies (dust . Pipe laying area monitoring will beemissions, good * Equipment and implemented by thehousekeeping, noise, odors) materials storage area Health and Safety

Dept. of Manila WaterCompany using theSTARRT Card(Annex 1)

Traffic . Ingress and egress to * Dailythe construction site

10

Operational Phase

Effluent Water Quality . Influent . Annex 2 describes infor parameters like pH, 5-day * Samples from detail the schedule ofBOD, COD, Total coliform, Treatment stages wastewater qualitysuspended solids, and oil and . Effluent monitoring.grease.

O STP site andOdor prmtr*Daily

* tSpesimter

Sludge . AtSTP site Weeklyaccumulation/Clogging * Sewer network

. Communal septictanks

1.0 PROJECT DESCRIPTION

1.1 Basic Project Information

Name of Project : PALACOL LOT DCOMMUNITY SANITATION PROJECTMANILA SECOND SEWERAGE PROJECT

Address PALACOL LOT D, Barangay Signal Village,Taguig, Metro Manila

Contact Persons : Leonor C. CleofasManager, Engineering and ProjectManagement OfficeMetropolitan Waterworks and SewerageSystemGround Floor, Engineering Building, MWSSComplex, Katipunan Road, Balara, QuezonCity 1105Tel No. (632) 920-5413; (632) 920-5521 to 40locals 3570/3569; Telefax: (632) 922-2568

Ma. Fiorella De Los Reyes-FabellaWastewater Project Development ManagerManila Water Company, Inc.489 Katipunan Road, 1105 Balara, QuezonCity, PhilippinesTel No. (632)981-8147; (632)926-7999 loc2032Fax (632) 981-8106

1.2 PROJECT LOCATION

The proposed project for Palacol Lot D is a sub-project of the CommunitySanitation Project, which is a component of the World Bank-assisted MSSP.

The service area is the entire compound of Palacol Lot D. The project site isalong Pio Felipe Street in Taguig which is accessible by way of M. Almeda St. inPateros. Figure 1 presents the vicinity map of the project.

1.3 PROJECT RATIONALE

In Metro Manila, untreated/partially treated domestic wastewater is the majorsource of pollution of inland waters. Most residential houses in Metro Manilatreat their wastewater by means of septic tanks, which do not provide adequatetreatment to satisfy the DENR requirements for wastewater effluent standards.Moreover, majority of septic tanks in Metro Manila is not properly maintained.This situation has led to the deterioration of the Pasig River and other inlandwaters. The DENR has estimated that around 60% of the pollution load to PasigRiver, which empties to Manila Bay and Laguna Lake, come from domesticdischarges. In the case of Laguna Lake, 65% of the total pollution load isattributed to domestic waste.

There is therefore an urgent need to establish collection and treatment methodsthat will help reduce the pollution load to inland waters. The provision of anefficient and cost-effective sewage collection, treatment and disposal is theprimary objective of the Community Sanitation Project under the MSSP.

This project specifically aims to address the problems of inadequate wastewatertreatment and disposal in Palacol Lot D. Inadequate treatment of wastewater inseptic tanks is indicated by the typical analysis of the effluent quality of septictanks in other project sites (see Table 1 below). The project will help reducepublic health risks and environmental pollution from untreated/partially treateddomestic wastewater by providing a sustainable sanitation and sewerage facility.It will also serve as a good illustration of proper sanitation especially to theneighboring communities near Laguna Lake.

12

Figure 1. Location Map

P A L A C O~~~~PAACL LOT D z

LIZ Project Area Water Bodies

13

Table 1Typical Analysis of Septic Tank Effluent Quality

PH 6.5-9 7.3(R27.90C

Suspended solids, mg/L 70 90-120

Dissolved Oxygen, mg/L 0.00

Biochemical Oxygen Demand 50 150-250(BOD5), mg/L

Chemical Oxygen Demand, mg/L 100 200-300

Total Coliform Count, MPN/100 ml 10,000 10-107-

0 6 7Fecal Coliform Count, MPN/100 ml - .10W-10

1.4 DESCRIPTION OF PROJECT PHASES

1.4.1 Pre-Operational / Construction Phases

1.4.1.1 Construction Plan

The project is scheduled for bidding in December 2001. Construction isexpected to commence in March 2002 and project completion is targeted inSeptember 2002 (210 calendar days).

Figure 2 shows the implementation schedule for the project. Manila WaterCompany will undertake the project implementation.

14

Figure 2

Proposed Implementation Schedulefor the PALACOL LOT D Community Sanitation Project

Week No. 1 2 3 4 1 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

nStakiTraten

OrderEquipment

Excavatsing f.

MInstl Treactort l<_|

Auccept9ance & j{____112lt

Tn urinove

1.4.1.2 Total Surface Development Block

The service area is approximately 8.2 hectares and is estimated to have aprojected population of 5,460. The project will serve all residential andcommercial establishments within Palacol Lot D. Any increase in population isnot considered because there are no further planned development within thecompound that would significantly affect the quality and/or quantity of wastewaterdischarges.

1.4.1.3 Estimate of Total Land Area to be Opened for Civil Works

Civil Works will include installation of sewer pipe to collect the flow from thechlorine contact chamber to the STP, construction of the STP, and the laying ofSTP discharge pipe. The STP may be located underground in a 200 square-meter lot. Sewer lines totaling 20 meters will be opened for civil works. Figure 3shows the STP site layout for the project.

1.4.1.4 Major Openings and Construction Activities

The complete sewerage system will include the following components:

* Sewer lines (diameter=200 mm) with a total estimated length of 15 metersto connect the chlorine contact chamber to the STP

* STP with a design capacity of 874 m3/day and land requirement of 200 m2

* STP discharge pipe (diameter=200 mm) with a total estimated length of 5meters to existing storm drainage

Civil works to be implemented are as follows:

For STP - mechanical installation* Site clearing - electrical installation* Earthworks * Site restoration

- excavation and handling * Clearing/ miscellaneous activities- dewatering For Pipelaving- backfill and compaction o Pavement cutting- lean concrete/ gravel bedding o Shoring and removal

* Concrete Works * Excavation and handling- shoring and soil protection o Dewatering- formworks + Pipelaying- concreting o Backfill and compaction

* Electro-mechanical * Testing pavement restoration* internal and external pipeworks o Clearing / miscellaneous activities

Figure 3Proposed STP Site Layout

Manila Water K!/ ~~~~~~~~house

,mwsso EL20.05

//S <~WATE

EXISTING CHLORINE EEXiST 250mmn TO

EXISTINGCHLORINES EFFLUENT LINE

CONTACT CH BEL0 BE A DCYCLONE WIRE FENCE

17

1.4.1.5 Types of Equipment to be Used

The civil works contractor will provide equipment which include, but is not limitedto, the following:

* backhoe/loader* dewatering equipment* concrete mixer/concrete pump* welding machine* compactor* jackhammer and air compressoro generator* dump trucks

1.4.1.6 Source of Construction Materials and Facilities

The following alternative type of pipe materials will be permitted for sewer mains:

* UPVC Pipe* Polyethylene* Fiberglass Pipe* Ductile Iron Pipe* Cast Iron Soil Pipe

The contractor can choose from the above pipe materials.

1.4.1.7 Support Services and Facilities Requirements and Availability

Support services and facilities will be tapped from the available utilities on site.Arrangements with locators in Palacol Lot D and/or any other party will be madeby the contractor.

1.4.1.8 Estimate Total Cut Soil Volume(for pipelaying)

Table 2 presents the total system length, average excavation depth of the sewerpipes and area of the project.

18

Table 2Estimates of Soil Excavation Volumes

Estimated Average Excavation AverageDimensions Depth (m) Excavation

(sq.m) Volume(cu. m.)

STP site 200.00 6.0 1,200.00

Sewer line 200 10.00 1.5 15.00mm0

TOTAL 1,215.00*Estimated dimension of pipe (sq.m.)= [(pipe diameter +0.3) x total length of pipe required]

1.4.1.9 Total Manpower Requirement

The project will be bid out based on World Bank procedures. The winning bidderwill provide contractual work for a period of around 210 calendar days. Thecontractor will provide skilled and unskilled workers to carry out the scope ofworks as detailed in the bid documents. The scope of works includes:

* site clearing* installation works for the sewer.network* detailed engineering design and construction/installation works for the STP

and its appurtenances* landscaping of the STP site and the vicinity* abandonment activities (road restoration, etc.)* STP start-up operations

1.4.2 Operational Phase

1.4.2.1 Project Operation Schedule and Duration

Completion of construction is expected by September 2002. Start-up operationswill begin immediately after project completion.

1.4.2.2 Process Technology and Activities

The project will be bid on the basis of performance specifications for the STPTreatment Process:

* Wastewater flows were computed on the basis of a per capita water demandof 200 liters per day and a 70% wastewater discharge. Storm infiltration wasestimated at 10% of the total flows. A peak factor of 1.5 was added in thecomputation of design flows to determine pipes sizes and capacity of STP.

19

* The influent flow characteristics were based on random laboratory analysesof septic tank effluent in other project sites. The influent quality assumptionsare shown in Table 3 below:

Table 3Influent Flow Characteristics

0 100 1 200 350 50 6-9TSS = Total Suspended SolidsBOD5 = 5-day biochemical oxygen demand at 200CCOD = chemical oxygen demand

* Wastewater discharged by the STP shall conform with the Effluent Standardsset forth in DENR Administrative Order 34 and 35 for Class C waters asshown in Table 4 below:

* Wastewater treatment will reduce the BOD5 from 200 mg/L to 50 mg/L, at theminimum. This illustrates an STP treatment efficiency of at least 75%.

Table 4DENR Effluent Parameters for Class C Waters

j - M .F - S -s M :S. ... ;I

Color PCU 150pH 6-9COD mg/L 100Settleable solids mg/L 0.55-day 200C BOD mg/L 50Total Suspended Solids mg/L 70Total Dissolved Solids mg/L 7Oil and Grease mg/L 5Phenolic Substances mg/L 0.10Total Coliforms MPN/100 ml 10,000

Process Scheme of STP

The STP to be constructed in Palacol Lot D may be below ground. If contractaward goes to an underground STP proposal, the only aboveground structureswill be the control room/panel.

The STP treatment process will provide secondary treatment to septic tankeffluent. It is expected that bidders will propose different process technologiesbased on the performance specifications in the bid documents. Some factorswhich will be considered in selecting the STP treatment process are:

20

* Suitability in project site . Performance/Treatment efficiency* Capital and Replacement costs * Operations and Maintenance Costs* Complexity of operations . Flexibility of treatment process

A general scheme for the treatment process is illustrated in Figure 4.

1.4.2.3 Waste Production Scheme

Up to 2005, sludge produced in the treatment process will be transported to acentralized Septage Sea Disposal Station located in J.P. Rizal St, Brgy. WestRembo, Makati City. Mobile vacuum tankers will collect the sludge produced inthe STP.

A long-term disposal scheme for biosolids from the STP will be as soilconditioner for sugarcane and corn in Pampanga. Experiments done incoordination with the Sugar Regulatory Administration on the use of sludge inenhancing the soil quality of lahar-covered areas and the growth of crops such assugarcane, com and bittergourd resulted in the issuance of a temporary licenseissued by the Fertilizer and Pesticide Authority. The license allows the use ofsludge in growing similar crops.

Sludge generated from the STP can also be treated in the 600 cum/day septagetreatment facility which is expected to be operational by 2004. This facility is partof the Sanitation Component of the Pasig River Rehabilitation Project. Thefacility will be operated by Manila Water Company.

1.4.2.4 Manpower Requirement

Manila Water Company will assign an LLDA and DENR-accredited PollutionControl Officer (PCO) who will be responsible for the compliance of the STP withgovernment regulations. The PCO will have trained operators/crews who willmonitor and manage the operation of the sewer network.

Since the STP operations will be operated largely by automation, regularmaintenance works will include declogging of sewer lines and removal of sludgefrom the STP site and the communal septic tanks. The STP operator will visit theproject site daily. Monitoring of the effluent quality will be the joint responsibilityof the PCO and the Central Laboratory of Manila Water Company.

A liaison officer from the community will coordinate with Manila Water Companypersonnel on the proper operations of the STP and the sewer network. A 24-hourCustomer Service Hotline (1627) is available to accept complaints and otheremergency reports. Manila Water Company has sewer network repair crewswho work in regular round-the-clock 8-hour shifts and who are readily availablefor any emergency work.

21

Figure 4General Treatment Process Scheme

RawSew'ag J .\/

Lift Surge 20 Treatment DisinfectionPump Tank System (Chlorination)

Biological(SBR/IDEAActivatedSludge)

Waste Sludge

SludgeDigestion

Re-use sludge assoil conditioner

22

1.4.3 Abandonment Phase

Upon completion of the project scope, the contractor will remove all temporarystructures and facilities installed during the construction phase. All pavementswill be restored. The cost of abandonment will be incorporated in the overall costof the project. Manila Water Company will issue a certificate of final acceptanceonly upon completion of all abandonment works by the contractor and uponturnover of the STP operations.

2.0 BASELINE ENVIRONMENTAL CONDITIONS

2.1 STUDY METHODOLOGY

This Initial Environmental Examination (IEE) was prepared in compliance with theWorld Bank's Operational Directive 4.01 on Environmental Assessment. An IEEwas previously carried out according to the DENR Administrative Order No. 96-37, for which an Environmental Compliance Certificate (ECC) dated Dec. 11,2000 has been issued by the DENR-Regional Office (Annex 3).

2.2 LAND

2.2.1 Land Resource Utilization

Palacol Lot D has an estimated land area of 8.2 hectares. Approximately 30% ofthe total area is devoted to residential use, while 70% accounts for parkingspaces, driveways, other common facilities and open spaces.

2.2.2 Physiography and Geology

Palacol Lot D lies on a relatively flat plain. Soil type in the area belongs to theQA1-Quaternary Alluvium class. Quaternary Alluvium is characterized by detritaldeposits; mostly silt, sand and gravel.

2.2.3 Vegetation and Wildlife

The proposed site for the STP is in a vacant lot in Block 54. Figure 5 showsphotographs of the proposed site.

The vegetative cover of the site is predominantly wild grass interspersed with asmall number of wild, adolescent vegetation. The plant species that can befound in the site and which will be uprooted during construction are:

Aratiles (Muntingia calabura); Cassava (Manihot esculenta); Cashew; Commongrass (Phragmites spp); Guava (Psidium guajava); Makahiya (Mimosa pudica);Papaya (Carica papaya); Sweet potato; Tamarind (Tamarindus indicus)

Faunal population is limited to household pets and stray animals.

23

Figure 5. Proposed STP Site

v--a "

Vcnarea in Block 54a

24

2.2.4 Land Acquisition Assessment

Manila Water will be allowed to use a parcel of land for the STP by way of a grantof perpetual easement from the owner/developer of the community, which in thisproject is the Bases Conversion Development Authority (BCDA). The STP site isfree from informal settlers.

2.3 WATER

2.3.1 Inventory of Water Bodies

Wastewater flows from the individual septic tanks flow to the Hagonoy Creek andultimately to the Laguna Lake. The current BOD5 of the Laguna Lake is 2-5 mg/Lwhich falls within the BOD5 for Class C waters. DENR Administrative Order 34(DAO 34) describes Class C water as that suitable for the following:

1. Fishery Water for the propagation and growth of fish and other aquaticresources;

2. Recreational Water Class II (Boating, etc.); and3. Industrial Water Supply Class I (For manufacturing processes after

treatment)

2.3.2 Water Quality (Surface/Ground)

Surface Water Quality. Pollution loading to the Laguna Lake will be reducedsince septic tanks and raw wastewater from the project area will no longer bedischarged directly to the Lake. Effluent from the plant will comply with DENREffluent Quality standards sufficient for Class C waters.

At present, the Laguna Lake is used for the propagation and growth of fishes aswell as recreational and industrial uses. Sixty five percent (65%) of the pollutionloading to the Lake comes from domestic waste. Without any sewerage orsanitation interventions, the pollution load entering the Lake is expected toincrease dramatically unless necessary steps to reduce pollution loading formdomestic wastewater is taken.

Ground Water Quality. Since septic tank effluent will undergo further treatment inthe plant, the possibility of contaminating the aquifers due to leachate from septictank discharge or from raw wastewater will be eliminated. Seepage from plantoperations will be non-existent.

25

2.4 AIR

Taguig experiences only two types of weather conditions, rainy season and thedry season. Rainy season occurs between the months of July and October,while the dry season occurs between November and June. Mean annualtemperature is 27.40C and average annual humidity is 77% for Metro Manila.

Air quality within Palacol Lot D is moderately unpolluted. However, outside thepremise is a national road where public and private vehicles exhaust vehiclefumes contributing to the air pollution in the vicinity.

2.5 PEOPLE

2.5.1 Population

Assuming 7 persons per unit, the projected population in Palacol Lot D is 5,460.Social status of the families range from Class B to Class D based on theclassification of the National Statistics Office (NSO).

2.5.2 Project Affected Persons

During construction, the project will cause noise and traffic nuisance to thePalacol Lot D community, its neighboring communities and pedestrians. Onceoperational, the project will directly affect the residents of the entire Palacol LotD. The sanitation of the community will be improved when the new sewer systemis operational.

Manila Water will assign skilled personnel to operate and maintain the system upto approved standards.

3.0 ALTERNATIVES

Palacol Lot D is considered a priority area for the improvement of sanitationconditions based on the following factors:

* It has a relatively high population density.+ The existing sanitation facilities are inadequate to comply with the DENR

effluent standards.* The communal sanitation and drainage systems in the compound are not

maintained.

The site identified for the STP is a vacant lot in Block 54. The site will not requirerelocation of inhabitants during construction.

26

4.0 IMPACT ASSESSMENT

4.1 IMPACT IDENTIFICATION

Table 5Sources and List of Potential Environmental Impacts

r __ 0. 0. . 0 - . 0.

CONSTRUCTION PHASEAir Pollution The impact on the air quality will only occur

during the construction phase, but could be1. Dust emission will occur due to civil works controlled through proper measures. Among

such as excavation, disposal of excess the potential air impacts are:soil, etc. . Ground level concentration of suspended

2. Emission of dust and other air pollutants solids will increaseby vehicles. * Air pollutants such as C0 2, CO, and NO, will

occur from vehicle emissions.Water Pollution . Improper disposal of the wastewater

produced could lead to contamination of1. Domestic waste made by the construction ground water.

workers and staff. . Uncontrolled wastewater discharge,2. Wastewater will be produced due to the construction debris and oil leakage / spill will

washing of vehicles. increase the sedimentation/contribute to the3. Spillage of oil might occur through pollution of the nearest body of water

improper handling.Noise Pollution . Noise level will increase due to the usage of

noise generating equipment.1. Noise pollution from the operation of

construction equipment and vehicles.OPERATIONAL PHASE

Water Pollution . The project will reduce the wastewater loadinto the Laguna Lake and will constitute a

1. Improper operation and maintenance of positive impact. However, improperthe STP will result to water pollution. operations/maintenance of the STP will

result to the discharge of untreated orpartially treated effluent.

Odor Pollution . The whole Palacol Lot D, especially thebuildings near the STP, will experience

1. Unpleasant odor will result from the unpleasant odor during periods of odoranaerobic conditions and improper emission.operation and maintenance of the STP.

Noise Pollution . Impact will be insignificant and can easily becontrolled through proper preventive

1. Noise generating engines and equipment measures.that are necessary for the operation ofSTP will be used. Added noise will becreated during its operation.

27

Socio-Economic * The STP will result to a positive impactsince the domestic wastewater will be

1. The project will result to proper treatment treated and will help decrease the pollutionof wastewater. load into Pasig River. Also, the treated

2. Value of land will increase. water could be re-used.Residual and Unavoidable Impacts * Proper precautionary and preventive

measures to avoid these kinds of impacts.1. Accidents and man-made disasters might

occur due to design failure and improperconstruction practices.

2. Environmental hazards might occur due tonatural disasters like earthquakes,typhoon, etc.

4.1.1 Impacts During Construction Phase

A. Air Quality

During the implementation of the project, an increase in emission of dust andsuspended particulates will occur in the vicinity of the STP site and excavationsfor the sewer pipes. This can be attributed to civil works such as excavation,disposal of excess soil and other related construction activities. Another causewill be emission of fumes and other air pollutants of the vehicles to be used.

B. Water Quality

Excavation activities in the project site could loosen soils and transport of thesematerials to the Laguna Lake will result in siltation or increase in turbidity.Inappropriate disposal of human waste by construction workers, excessive use ofwater for washing of equipment and spillage of oil might also occur.

C. Noise

Noise will be generated during the construction of the project due to theoperation of equipment and construction activities. Considering that theproposed site for the project is near the residential buildings, proper mitigatingmeasures will be done to ensure that the equipment and activities will cause littleor no disturbance to the residents.

Heavy equipment will be monitored to operate only in short periods of time toavoid sustained high level of noise. The operator of heavy equipment will berequired to pause work for 10-15 minutes after every two (2) hours of operation.The use of heavy equipment will be strictly prohibited from 6:00 P.M. until 8:00A.M. on weekdays. Residents will be given prior notice at least one (1) daybefore use of any heavy equipment on Saturdays. Use of heavy equipment willbe prohibited during Sundays except for special or emergency activities thatneed immediate action.

28

Table 6 shows the typical noise emissions of common construction equipmentused at various distances from source.

Table 6Typical Noise Emissions of Construction Equipment at Various Distances

from Source in dB(A)

Air Compressor 75-87 69-81 63-75Backhoe 71-92 65-87 59-81Compactor 72 66 60Concrete Mixer 75-88 69-82 63-76Pumps 70-90 64-84 56-78Tractors, 78-95 72-89 66-83Bulldozers __lTrucks 83-93 77-87 71-81Jack Hammer 81-97 75-91 69-85

D. Ecological Effects

Since there are no rare, endemic species of flora and fauna in the project area,project implementation has minimal impact on the overall terrestrial ecology ofPalacol Lot D. Some plants will be unavoidably cleared during civil works.

4.1.2 Impacts During Operation Phase

A. Air Quality

There will be minimal effect on the air quality during the operational phase of theSTP. Aside from the occasional odor nuisance, there will be no adverse effecton the air quality. The performance specifications for the STP treatment processspecifically state that the facility should have odor control mechanisms (eg.,deodorizer, masking agent, adsorbent, etc.). Manila Water Company will notaccept the turnover of the STP by the contractor if the facility emits unpleasantodors. Permanent solution(s) to address any odor nuisance will be theresponsibility of the contractor.

B. Water Quality

Without wastewater treatment, Palacol Lot D accounts for an estimated 175 kgBOD 5/day loading to the Laguna Lake. The implementation of the project willcontribute to the improvement of the quality of water in Laguna Lake by reducingdischarge of untreated/partially treated wastewater. From a pollution loading of175 kg BOD5/day, loading will be reduced to 26-44 kg BOD5/day, or a 75-85%BOD5 reduction, when the STP becomes operational.

29

C. Socio-Economic

A flat sewer charge equivalent to 50% of the water charge will be included in thewater bill once the STP is commissioned. This fee will help cover the costs of theoperations and maintenance of the STP and the sewer network. Thisarrangement will be clearly explained to the community during the consultationprocess and the residents' agreement to the project will include their acceptanceof the additional fees. The consultation to be done with the community isexplained in Chapter 6.0.

The general sanitation conditions in the project area will significantly improve.The project will reduce, if not eliminate the threat of water borne diseases suchas diarrhea and typhoid fever, which are more costly to manage.

D. Sludge Disposal and Management

The existing septic tanks in the area produce an estimated 36.85 kg of sludgeper year. The table below illustrates the sludge production averages for variouswastewater treatment processes. Also indicated is the estimated sludgeproduction of the STP considering each type of treatment.

Table 7Sludge Production of Various Wastewater Treatment Processes

Treatment Process Typical Dry Solids Estimated STP SludgeProduction (kglm3) Production (kglday)

Activated sludge 85 74,290Trickling filtration 70 61,180Extended aeration 100* 87,400Aerated lagoon 100* 87,400*assumes no primary treatment

The bidders for the project may propose any of the above wastewater treatmentprocess or their modifications. Cost and operational efficiency are among theconsiderations for awarding the bid.

In the interim (i.e. up to 2005), sludge produced in the treatment process andcollected from the communal septic tanks will be transported to a Septage SeaDisposal Station located in J.P. Rizal St., Brgy, West Rembo, Makati City.Vacuum tankers will collect the sludge produced in the STP and the septagefrom septic tanks.

A long-term alternative is the disposal of sludge and septage to the lahar areas inPamapanga. The sludge can be used as soil conditioner for sugarcane and corn.Experiments done in coordination with the Sugar Regulatory Administration onthe use of sludge in enhancing the soil quality of lahar-covered areas and thegrowth of crops such as sugarcane, corn and bittergourd resulted in the issuance

30

of a temporary license issued by the Fertilizer and Pesticide Authority. Thelicense allows the use of sludge in growing similar crops.

Starting 2004, a septage treatment facility will also be available to treat sludgeand septage from the STP. This septage treatment is part of the SanitationComponent of the Pasig River Rehabilitation Project. Manila Water Companywill operate the septage treatment facility. Stabilized sludge may also be used asfilling material

4.2 IMPACT PREDICTION AND EVALUATION

Table 8 below presents a summary of the assessment of the impacts of theproject.

Table 8SUMMARY OF ASSESSMENT OF ENVIRONMENTAL ISSUES/IMPACTS

Environmental Impact AssessmentIssues/lmpacts Classification Probability Reversibility Time 11rFE

-Scale1. Construction Phase

Air/Dust Pollution * .t<

Noise - 0+ <

Traffic - + < 4.

Soil Erosion - 40 <

Water Pollution - 0 <

Increased + + <Employment

2. Operational Phase

Water Pollution - >

Contamination ofdrinking i 4' > +water supply

Odor Pollution o +<t

Noise El + < +

Accidents/hazards o + < +

Health benefits + >4+

Property Value andCommercial + > + >AttractivenessEnvironmentalsanitation + * 4> 4enhancement

+ Positive 0 Unlikely to occur + Reversible < Short term 4' Insignificant- * likely to occur + Irreversible > Long term T ModerateNegative

4 Severe

31

The implementation of the project is projected to produce minimal adverse effectenvironmental impacts. Moreover, the long-term benefits from the project such asimproved sanitation conditions within the compound, lesser risk of waterbornediseases, and reduction in pollution will more than compensate for the negativeeffects that this project will cause during construction and operation.

Mitigating measures will be implemented to minimize, if not eliminate anyadverse impact that the project may cause. Measures to enhance the existingenvironmental conditions in the project site shall be implemented, as needed.

4.3 UNAVOIDABLE AND RESIDUAL IMPACTS

Unavoidable and residual impacts are those which occur as a result of naturalcalamities such as floods caused by typhoons or heavy rains, earthquakes andthe like. Appropriate measures will be done to anticipate these impacts and toimplement contingency action plans.

5.0 ENVIRONMENTAL MANAGEMENT PLAN

5.1 IMPACTS MITIGATION / ENHANCEMENT PLAN

Table 9 below is a matrix on the environmental management plan of theproposed project.

Table 9ENVIRONMENTAL MANAGEMENT PLAN

CONSTRUCTION PHASE lPotential Manner of

Environmental Mitigating Measures Implementation ScheduleImpact

1. Poor quality of . Manila Water Company will To be included in the Dailyconstruction monitor the supply and contractor's scope of

installation contract to work, under theassure quality of equipment supervision of Manilaand construction. Site Water Company.*Managers and Engineerswith experience inconstruction managementshall approve all materialsand equipment to be usedand installed at the site.

. The contractor will berequired to post aperformance bond for theDesign and ConstructionContract of the seweragesystem.

32

2. Air pollution . Efficient construction To be included in the Start of(suspended planning and work contractor's scope of constructionparticulates, odor scheduling work, under the and dailyand fumes, vehicle . Formulation of appropriate supervision of Manilaemissions eg. C02, work plans, work scheduling, Water Company.*CO NOR) work specifications and \'.'ork

methodologies. Provision of properly

maintained storage area forkeeping stocks ofconstruction materials andequipment

* Prompt and fast removal ofexcavated materials ordredges spoils fromconstruction site

* Sprinkling of water on dust-generating mounds ofresulting from earthmovingactivities and civil works.

* Control of motor vehicleemissions

. Dust accumulation will alsobe prevented through properwashing of the vehicles priorto its departure from the site

. Development andenforcement of strict healthand safety pollution controlregulations specific for theproject site- Good housekeeping of

workplace andconstruction affectedareas

- Use of Protective Gearby all workers

3. Water pollution a Provide temporary drain To be included in the Duringdue to wastewater, systems and storage contractor's scope of constructionoil leakage/spills, facilities for excavation soils, work, under thetoxic and hazardous fuel and oils needed for supervision of Manilasubstances equipment Water Company.*

. Cautious and sensibleplanning for construction andpost-construction phases ofthe project

. Provision of a routinechemical and oil spill clean-up plan

. Formulation of a monitoringprogram

4. Noise pollution . Establish temporary sound To be included in the Dailyfrom operation of barriers around the work site contractor's scope of

33

construction * Proper scheduling and work, under theequipment phasing of high-noise supervision of Manila

activities Water Company.** Use of appropriate mufflers

and sound proofing forconstruction machinery,equipment and engines

* Use of Personnel ProtectiveEquipment by all workers

5. Temporary * Public information campaign To be included in the Dailydisruption of traffic posting schedule of contractor's scope offlow within the construction work, under thecompound * Provision of a liaison officer supervision.of Manila

from the residents of the Water Company.*compound to assist theinformation disseminationregarding inevitable changesin schedule of operations

* Provision of temporaryalternative routes, includingvisible traffic warning signals

* To the extent possible,sewer lines, manholes andlift station will be constructedin common areas not usedfor pedestrian or vehiculartraffic

* Scheduling of deliverymaterials and removal ofexcavated material duringnon-rush hour periods.

6. Accumulation of * Hauling and proper disposal To be included in the Dailysolid waste in of waste construction contractor's scope ofconstruction site materials by contractor, work, under the

supervised by Manila Water supervision of ManilaCompany Water Company.*

* Provision of temporary toiletfacilities for workers

*Manila Water Company's contractor shall comply with all the conditionsstipulated in the scope of work. Any violation by the contractor will be penalizedby a performance security incorporated in the bid. The performance security willbe in the form of an unconditional bank guarantee in the amount of 10% of thecontract price.

34

OPERATIONAL PHASEPotential M Mannie? r;:of

Environmental Mitigating Measures Implementation ScheduleImpact --

1.Environmental . Carefully designed post- Manila Water Observancehazards due to construction maintenance, Company of guidelinesaccidents, man- contingency and monitoring will be donemade natural programs daily.disasters eg. * Well designed plan forAccidental spills, detection of accident orfire, seismic natural events includingactivity, precautionary and remedialearthquakes, heavy measures to be observedrain/flooding and * Provision of preventive anddesign failure remedial procedural manuals

at workplace* Adequate plans for

environmental rehabilitationand restoration of site andremoval of temporarystructures and facilitiesinstalled during constructionphase

2. Water Pollution * Wastewater discharged by Manila Water Refer tothe STP shall conform with Company Annex 2the Effluent Standards setforth in DENR AdministrativeOrder 34 and 35 for Class Cwaters. Annex 2 describes indetail the schedule ofwastewater qualitymonitoring.

-

* Regular monitoring ofwastewater effluent by theManila Water CompanyCentral Laboratory

* Regular check on sewer linesto prevent discharge/seepageof untreated wastewater tothe environment

. Quality of civil work on theSTP facility shall be enforcedduring construction to avoidseepage

35

3. Noise Pollution . Use of appropriate mounting Manila Water Observancefor machinery to minimize Company shall be donevibration daily.

. All mechanical/electricalequipment shall be installedinside enclosures

. If appropriate, motors shall beprovided with soundproofingdevices

. Maintenance of greenbeltzones and vegetation withappropriate tree species

4. Solid Waste . Solid waste generated within Manila Water Weekly(generated within the STP facility will be Companythe facility and by minimal but provision will bethe facility) made for garbage collection

. Disposal of sludge generatedwill be in accordance withestablished procedures ofrelevant authorities (disposalof sludge for use as soilconditioner)

5. Odors (organic . Maintenance of greenbelt Manila Water This shall beand sulfur zones and vegetation with Company inspectedcompounds coming appropriate tree species daily.from raw . Provision of landscape whichwastewater and will improve the aesthetic ofduring desludging the area by planting greenof septage) strips using appropriate plant

or tree species. Provision of odor control

mechanisms(deodorizer/adsorbent/masking agent) to preventmalodorous emissions)

6, Maintenance and * Regular asset condition Manila Water This shall beOperation of the monitoring by Manila Water Company done daily.System Company personnel. Poor . Regular maintenance works

maintenance of for STP equipment (pumpsmechanical and motors), sewer networkequipment and septic tanks(pumps and a Adequate training of STPmotors) operators

. A liaison officer from theCommunity will assist theSTP operator in assuring thefacility's efficiency inoperation

. Provision of adequatemaintenance equipment andspares for the seweragesystem facility

36

5.2 ENVIRONMENTAL MONITORING ACTION PLAN

Tables 10 and 11 below present the action plan for environmental monitoring forthe proposed project. Manila Water Company will be responsible for themonitoring of-the STP, the sewer network, and communal septic tanks.

Table 10Environmental Monitoring Action Plan

i *"m 2"] _' :" -A* LM t5

Construction Phase

Compliance with Manila * At STP site and its * On-the-spot dailyWater Company health and perimeter inspection andsafety policies (dust . Pipe laying area monitoring will beemissions, good * Equipment and implemented by thehousekeeping, noise, odors) materials storage area Health and Safety

Dept. of Manila WaterCompany using theSTARRT Card(Annex 1)

Traffic . Ingress and egress to * Dailythe construction site

Operational Phase

Effluent Water Quality * Influent . Annex 2 describes infor parameters like pH, 5-day . Samples from detail the schedule ofBOD, COD, Total coliform, Treatment stages wastewater qualitysuspended solids, and oil and . Effluent monitoring.grease.

Daily

Odor . Weekly

. STP site and

Sludge perimeteraccumulation/Clogging

. At STP site* Sewer network. Communal septic

tanks

37

Table 1 1Institutional Monitoring

Item Reporting SchemeReporter Recipient Frequency:

Pre-Construction PhaseConfined Space Contractor Manila Water every entry to aPermit confined spaceWelding Contractor Manila Water onceAccreditationConstruction PhaseSTARRT Card Contractor r Manila Water dailyProgress Report Manila Water iMWSS quarterly

MWSS World BankOperation PhasePCO Report (See Manila Water DENR/LLDA quarterlyAnnex 4 for the PCO MWSSPCO ReportFormat)

The procedures to be used during the sampling and analysis will be based on thestandard methods prescribed in DENR Administrative Order No. 34 and 35.Annex 5 presents a sample monitoring sheet of effluent quality used by ManilaWater Company.

6.0 CONSULTATION PROCESS

The development of the project is ongoing. Consultations with the BCDA and thecommunity associations are being conducted. Annex 6 presents theendorsement of the Barangay Captain for the project. A Memorandum ofAgreement (MOA) will be executed among Manila Water Company, the BasesConversion Development Authority, and the community associations. The MOAwill specify the responsibilities of the parties concerned in the project (see Annex7).

38

ANNEXES

ANNEX 1

ANNEX 1. MANILA WATER COMPANY STARRT CARD FOR MONITORINGCONSTRUCTION WORKS

SAFETY TASK ANALYSIS RISK REDUCTION TALK (STARRT) CARD

NAME OF CONTRACTOR: DATE: _ _

SUPERVISOR/FOREMAN: _

JOB DESCRIPTION: NIGHT ELOCATION: __ DAY m

TODAY ACTIVITIES:

PRIMARY HAZARDS INVOLVED:

SAFETY PRECAUTIONS TAKEN:

PUBLIC SAFETY HAZARDS (ENVIRONMENTAL)BARRICADES N/A YES NO NOISE N/A YES NOTRENCH PLATE N/A YES NO HEATSTRESS N/A YES NOSIGNS N/A YES NO GROUND CONTAMINATION N/A YES NOBARRIERS N/A YES NO WORKING AT HEIGHTFLASHERS N/A YES NO FULL BODY HARNESS YES NOGUARDS N/A YES NO SHOCK ABSORBING LANYARD YES NONOTICES N/A YES NO ACCESS LADDERS YES NOOTHER N/A YES NO TIE OFF POINTS N/A YES NO

HAZARDS (BODY) HORIZONTAL SAFETY LINE N/A YES NOFALL POTENTIAL N/A YES NO ENERTIA REAL N/A YES NOPINCH POINTS N/A YES NO SLIP GRIPS N/A YES NOELECTRICAL SHOCK N/A YES NO SAFETY NETS N/A YES NOSLIP-TRIP N/A YES NO MAN BASKETS N/A YES NOFLYING PARTICLES N/A YES NO SUSPENDED PLATFORM N/A YES NOTHERMAL BURNS N/A YES NO DROP AREA PROTECTION N/A YES NOMANUAL LIFTING N/A YES NO BARRICADES N/A YES NOSHARP OBJECT N/A YES NO SCAFFOLD

HOUSEKEEPING GREEN TAG UP TO DATE N/A YES NOAREA TIDY YES NO HANDRAILS, LADDERS, BOARDS N/A YES NOFREE OF WASTE YES NO FULL WIDTH PLANKING N/A YES NO

PPE ALL PLANKS IN GOOD CONDITION N/A YES NOHARD HAT YES NO CONFINED SPACESAFETY GLASSES YES NO CONFINED SPACE PERMIT ISSUED YES NOWORK GLOVES YES NO CONFINED SPACE STANDBY PERSON YES NOSAFETY BOOTS YES NO ATMOSPHERE TESTED YES NOCHEMICAL GLOVES N/A YES NO WORKERS TOLD OF HAZARDS YES NORUBBER BOOTS N/A YES NO ENTRY PERMIT COMPLETED YES NOMONO GOGGLES N/A YES NO WELDINGFOOT GUARDS N/A YES NO HOT WORK PERMIT YES NO

EXCAVATION FIRE WATCH MAN YES NOEXCAVATION PERMIT YES NO FIRE EXTINGUISHERS YES NODAILY INSPECTION YES NO FIRE BLANKET YES NOBENCHED/SLOPED/STEPPED YES NO SHIELDS N/A YES NOLADDER PROVIDED YES NO CYLINDERS SECURED...SIGNS & BARRICADES IN PLACE YES NO ... & MOVED FROM SPARK AREA N/A YES NO

ELECTRICAL SPARKS CONTAINED N/A YES NOCORDS IN GOOD CONDITION N/A YES NO COMBUSTIBLES CLEARED N/A YES NOPLUGS & RECEPTORS NOT - FACE SHIELD N/A YES NO

BROKEN N/A YES NO BURNING GOGGLES N/A YES NOCORRECT VOLTAGE RATING N/A YES NO FRESH AIR N/A YES NOSTRUNG ABOVE GROUND N/A YES NO RESPIRATOR N/A YES NONOT THROUGH WATER N/A YES NO EAR PROTECTION N/A YES NO

SAFETY HARNESS N/A YES NOOTHERS: --------

LIFTING EMERGENCY EQUIPMENTRIGGING IN GOOD CONDITION YES NO FIRE EXTINGUISHER N/A YES NOPROPER RIGGING YES NO SAFETY SHOWER N/A YES NOLIFTING ZONE BARRICADED YES NO EYEWASH NiA YES NOCURRENT INSPECTION ON CRANE YES NO REPAIR PROCESS EQUIPMENTOVERHEAD POWER YES NO VALVES LOCKED N/A YES NOLINES CLEARANCE (10'+) YES NO TAGS HUNG N/A YES NO

OVERHEAD WORK OR FLOOR OPENING PROPER EQUIPMENTFIXED BARRICADES YES NO MANLIFT N/A YES NO(TAPE) DANGER N/A YES NO FORKLIFT N/A YES NO(TAPE) CAUTION N/A YES NO TRUCKS, TRACTOR ETC. N/A YES NOBARRIERS N/A YES NO HAND TOOLS N/A YES NOSIGNS N/A YES NO HAND POWER TOOLS N/A YES NOTRENCH & HOLE COVER IN . GENERAL

PLACE N/A YES NO TRAFFIC WATCH N/A YES NOHANDRAILS/TOEBOARD N/A YES NO PERMIT & STARRT CARD N/A YES NO

DISPLAYEDREMARKS:

SUPERVISOR: SIGNATURE:__FOREMAN: SIGNATURE: _ _

EMPLOYEE NAME: ID # EMPLOYEE SIGNATURE:12 =_=

3

43 __ _ _ _ _ _ _ _ _ _ _ _ __ _ ___ . _ ___ _ _ _ _ _.__ _ _ __ _ _ _ _ _ ._ _ _ _ _

6 . .... .. . ... .____ __ _ _ ..__._ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

8 9 ___,__ _ _ _ _ _ __ _ _ _ _ _ _ _ ___ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _

1010 . .. _. _ _ _ ._ __ _ _ __

11 _ ,_, . ___ ._ _ _ -

12 __ _ . ._ ___ -----

13

14 ___

15 _ _ _

ANNEX 2

ANNEX 2. WASTEWATER QUALITY MONITORING SCHEDULE

Parameters Sample Frequency Agency Total Costs forIdentity Manila Water

(PhP/month)TOT=46,961.00

pH Influent, quarterly DENR 14,696.00Suspended solids effluent monthly MWSSDissolved Oxygen RegulatoryBOD5 OfficeCOD weekly Manila WaterOil & greaseResidual ChlorineTotal ColiformFecal Coliform30-Minute settling Sample daily Manila Water 25,080.00test from

Aerationtank

COD effluentResidual Chlorine effluentDissolved oxygen Return weekly Manila Water 2,640.00Sludge Volume activatedIndex sludge,Settleable Matter MixedSuspended Solids liquorTotal Solids tankspH Raw monthly Manila Water 4,545.00Suspended solids sludge,Cyanide DigestedCadmium sludgeChromiumCopperIronManganeseLeadZinc

ANNEX 3

ANNEX 3. ENVIRONMENTAL COMPLIANCE CERTIFICATE (ECC)

Republic of the Philippines -

Department of Environment and Natural ResourcesNATIONAL CAPITAL REGION

i 1ti - rl i#zz3s1 Cni-.nrt-ssionofAvenute, Pr^ecli e irzo: 'n City

%c'9Z-2000 -_L_- i_-021)2-21fi'1009- 266 -q-f -211

ENVIRONMENTAL COMPLIANCE CERTIFICATE

DENR-NCR hereby grants Environmental Compliance Certificate(ECC) for the construction and operation of the Centralized SewageTreatment Plant project of Manila Wator Compay Inc. (MWCI) located inDreamiand Subdivision, Palacol, Brgy. Signal Village, Taguig, Metro Manita aftercomplying with the Environmental Impact Statement (EIS) system requirementsas prescribed in the guidelines of the implementing Rules and Regulations ofPresidential Decree 1586.

This Certificate is issued subject to the following conditions:

1. PRE-CONSTRUCTION AND CONSTRUCTION STAGE:

I That all amenitieslutilities (e.g. recreational areas, parking areas, drainagelrnes, paved areas. etc. ) affected by the project shall be immediatelyrestored and rehabilitated:

2 That the proponent shall condtict orientation for resident engineers andcontractor who will undertake and Implement the project to apprise themof the conditIons/stipulations of this ECC and the necessary measures thatwill mitigate adverse environmental impacts and submit report withinfifteen (15) days from date of orientation;

3 That a billboard measuring 0.5 meter by 1.0 meter, bearing "NCR-2000-j i -0262-211 Issued pursuant to P.D. 1586" shall be displayed

in a conspicuous location at the project site for Identifitcation and guidance.

1I. OPERATION STAGE:

4 That this Certiricate covers the operation of a 1660 cu.m. per daycapacity, below ground mounted Sewage Treatment Plant to exclusivelyserve the existing buildings of Dreamiand Su5divlsion;

5. That adequate maintenance procedures shall be undertalen to avoidemission of objectionable odor from said facility;

It. OTHERS

6. That all the proposed environrmentalt nanagemeritttteasures tontained inthe Environmental Management Plan shall biieltected;

7. That should adverse impacts,odWur as a resait d' ojet'oeiatis, all iheactivities causing the sameqshafl[be lminediely'itoopped arfd'remedial,measures shall.be effected ond) all dnmagest6., life and prjpei shallH'eproperly compensated to all aggnieved'parties

-An*& . Vatr :totpaTny huc-A!V-200 <LgdL -062 -2112(09-60''1- Tg- >!i

8. That In case of abandonment or Indefinite work stoppage. the projectproponent shall submi a written notification thirty (30) days before thescheduled abandonment/work stoppage and to restore the site to itsonginal condition or provide safety and protective measures to preventadverse environmental impacts that may be caused by the project:

9 That restoration works/grading of the exposed grounds shall beimmediately undertaken for safety enhancement and ecologicalpurposes:

10 That this Certificate shall be posted In a conspicuous place in theAdministration's Office for easy reference and guidance;

11 That the proposed Environmental Monitoring Programl must beimplemented, the report and/or result under oath of said monitoring andon the compliance with each of the conditions of the ECC shall besubmitted to this Office annually,

12. Thiat a written notification shall be made to the DENR-NCR for approval, inrcase the project proponent cannot comply with any of the conditions fortechnical reasons: and

13 That the project proponent shall allow DENR-NCR personnelwith proper Identification card and travel/misslon order to conductinspection/monitoring of the project without prior notice to overseecompliance to ECC conditions.

Non-compliance with any of the above stipulations and/ormisrepresentations In the IEE submitted by the proponent will be sufficient causefor the suspension or cancellation of this Certificate andlor imposition of a fine inan amount not to exceed Fifty Thousand Pesos (P50000.00) for everyviolation thereof pursuant to Article IX, Section 6.0, DENR Administrative OrderNo. 37, Series of 1996. This ECC Is not a permit rather it is a certification thatthe proponent has committed to undertake or Implement mitigation measures toreduce the negative impacts to acceptable level

Given thist I tR 7ay of 2000.

CORAZON,'C. DAVIS.OIC. Regional Executive Director

Recommending Approval;

SIX;E OL JR.

Regional Diredtor for Environment

ANNEX 4

ANNEX 4. MANILA WATER PCO REPORT FORMAT

Pollution Control Officer'sReport

Period Covered: - Quarter of 200

General Informnation

Name of Firm: MANILA WATER COMPANY

Plant Address:

Natuire of Business: Utility

Plant Category: 1. 0 Air Pollutive 2. l Water Pollutive 3. 3 Air & Water Pollutive

NOTE: Sections To Be Filled-up. For Categoryl, Sections A & C; For Category 2,Sections B & C

And For Category 3, Sections A, B & C.

A. Air Pollution Aspect

A.1. Process Equipment

* 1 2 3 4 5 6 7 8Air Pollution Hrs. Air Pollution Hrs. Air Cont. of Disposal

Source per Material Control per Pollutants Air of CollectedInstallations Qtr. Processed Facilities Qtr. Monitored Cont. Solid Wastes

I - Name of Air lPollition Installatinns 2- Number of Uotirs of Operation of the Installations Dl)ringthe Quarter

3 - Name of Materials Processed by the Source histallations 4 - Name or thc Pollution Control Device of the Installations

5 - Number of 11ouirs of Operation of the Devices During the Quarter 6- Name of Air Contaminants Monitored

7 - Concentration of Air Contaminants Emitted by the Installations 8 - Name the Collected Solid WVastes and Means of Disposal

A.2. Fuel Burning

* 1 2 3 4 5 6 7 8Air Pollution HFrs. Air Pollution Hrs. Air Cont. of Disposal

Source per Material Control per Pollutants Air of CollectedInstallations Qtr. Processed Facilities Qtr. Monitored Cont. Solid Wastes

I- Name of Air Pollution Installations 2- Number of liouirs of Operation of the Installation Du ringthe Quarter

3 - Name ofMaterials Processedl by the Source Installations 4 - Name of the Pollition Control Device of the Installations

5 - Number of Hours of Operation of the Devices Duiring the Quiarter 6 - Name of Air Contaminants bv thc Installations

7 - Concentration of Air Conitaminants Emitted by the Installations 8 - Name the Collected Solid WVastes anfd Means of )isposal

B. 1. Sources of Wastewater

Sources Quantity

1. Domestic 19,820 m3 d

2. Process 200.0m 3 / d

3. Cooling m3 / d

4. Washings: Equipment 2.6 m3 I d

Floor 2.0 m3 / d

B.2. Wastewater Treatment Process

* Treatment Scheme

Inrdicate wastewaterflow diirections and rates anrd tite different tunits involvel in the process.

WAS RAS

influent V\tUV LL PI.SEDIA ACT. AERAC E

,------________1-

Sludge Cike ECLCR=2INA11 Eflitrent

* Design Capacity of the Wastewater Treatment Facilities _ M3 / day

* Operation of the Treatment Facilities:

Average Hours/Day 24

Number of Days During the Quarter 92

- Slud(ge Mlanagement

Quantity Pro(duce: n3 / day

Method Used for Shldge ThickeningMethod Used for Sludge TreatmentMethod Used for Sltidge DisposalFrequency of Disposal

B.3. Wastewater Characteristics

Attach resilts of thie nionthly phiysical and( chemnical laboratory analysis on the IYTP effluent.

Physical & Chemical Analysis include the following:

Parameters Results

Color Color Un

Temperature

pH

Suspended Solids mg

BOD5 mg

Oil/Grease mg

C. Maintenance & Repairs Wor-ks (Indicate anlY breakdowvn on the air & ivater polluttion installationsproblems encountered in the operation; repair & maintenance works undertaken & improvements made on thecontrol devices.)

Submitted by: Attested by:

ANTONINO T. AQUINOPollution Control Officer President

Quality and RegulationLaboratory ServicesAnalytical Services

RESULT OF ANALYSISAC-01- 03-012AT-01-03-013

Source of SampleSubmitted byCollected byDate/Time CollectedDate/ Time SubmittedAnalyzed by Analytical Services Personnel

PARAMETER(S) RESULT(S)LIMIT(S) INFLUENT EFFLUENT

Color TCU 150.00Turbidity NTU -

Settleable Matter mUL 0.50Suspended Solids, 103'C mg/L 70.00Dissolved Solids, 1800 C mg/L -

pH 6.50-9.00Dissolved Oxygen (DO) mg/L -

Biochemical Oxygen Demand (BOD) 5 mg/L 50.00Chemical Oxygen Demand mg/L 100.00Surfactants (MBAS) mg/L 5.00Oil and Grease mg/L 5.00Phenols mg/L 0.10Cadmium mg/L 0.05Chromium (Cr'0) mg/L 0.10Copper mg/L -

Cyanide* mg/L 0.20Iron mg/L -

Lead mg/L 0.30Manganese mg/L -

Zinc mg/LResidual Chlorine mg/L

BACTERIOLOGICAL EXAMINATIONTotal Coliform MPN/100 ml 10,000Fecal Coliform MPN/100 ml

Sample analyzed as submitted eur-equipment under repair Analyzed qualitatively

Certified Correct: Orig. Sgd.ELIZABETH P. SEVILLENO

Sr. Quality & Regulation OfficerDate Test Report Issued:

This report may not be reproduced in full and may not be used for advertisement or litigation purposes without permisssion ofMWC.This report is certified to have passed the MWC Quality Control procedures for reporting of analysis results.

ANNEX 5

ANNEX 5. SAMPLE MONITORING SHEET FOR EFFLUENT QUALITY

Quality and RegulationLaboratory ServicesAnalytical Services

Ctri #: LE-00-06-004

RESULT OF ANALYSIS

Source of SampleSubmitted byCollected byDate/Time CollectedDate/ Time SubmittedDate AnalyzedAnalyzed by Analytical Services PersonnelAnalytical Methods Used 'Electrometric, 2Cobalt-Platinum Scale, 3Gravimetric, 4Azide Modification,

5Open Reflux Dichromate, 6Multiple Tube Fermentation Technique

PARAMETER(S) LIMIT(S) RESULT(S)

pH 1 Units 6.50-9.00

Color 2 TCU 150.00

Suspended Solids3 mg/L 70.00

Dissolved Oxygen4 mg/L -

Biochemical Oxygen Demand 4(BOD)s mglL 50.00

Chemical Oxygen Demand5 mg/L 100.00

BACTERIOLOGICAL EXAMINATIONr_

Total Coliform MPN/100 mL 10,000

Fecal Coliform MPN/1OOmL -REMARKS: Sample analyzed as submitted

Submitted by: Certified Correct:Original Signed Original Signed

MA VIRGINIA B. PINEDA ELIZABETH P. SEVILLENOSr. Analyst Unit Head, Analytical Services

Date Test Report Issued:

This report may not be reproduced in full and may not be used for advertisement or litigation purposes without permission ofMWC.This report is cerified to have passed the MWC Quality Control procedures for reporting of analysis results.

ANNEX 6

ANNEX 6. ENDORSEMENT FROM BARANGAY CAPTAIN

, *¢^ . ^ OFFICE' OF TH'E DApG'AY'CiAJMi~Ni

ARW111 U S. gARCIANlllv

,l. yjff.o . _ _.

t . . l 'lXileclor. ~~~I)l:.NRt N'w'

9,>nyi ' S.X/rm %JN.1.t1 Y 1 tllel pijVtktZdti2 o1rt of 1IWSYSS 'aMnila RV0er-Ciimpany". IIC wl t jiVI'lic wt'o ti xclxuivey pfo4r Wtiler*<#8.*rw.^wir t! ;. bb A'n'nA ml iJi 4IId scwragesIrirc0 'tot lIC Easletfl: pntttt.oMetrn NIlnnIla. Inilhine wlilis it% svicc 1bhigltIolln6 htuc-lWC has cleted to

IeI.,, S),. ,,t*hawtS:l*tl ; ... . .. * I ctieveoi xtttI implrufo alz'. scvcartg0 ysijezs of PAIalccl(IlltiiPtt> O 31ctl,>t\

,4f t, 1,1vi.t'$, .S V)14401,l NVIIEIJYEAS. 4he ne ioastt31 I>;Allse0l IttnY

Ir iur, ms, L t LiU a:,it n in tiheRrca :nity riprcsent bulinruds .tgyl*'ieithi tr diie rsidulls uf iiteconInlulliiy;

OiK 1ANIWMOI WI IEIRAS, tile existuh seer tn atent rocirity netislo be uptaidcd so lint, tlhe uhtewiat'r eilIu'eais will filed

w Ilal rcr.lr

wtfmuREAS.' ie .NlnVClrnimitcstO upg,e.thc sewcrt?; r'k b....te #leU wl iJnpztivc ;IIJ tratmnnrrtfl'ulicI r-l'y ; or n 1, atud.,

t:LI .zi(t{viaI(u is'tj.urX+lprtii:rIr j,z rf-ccugrilolt uk6e Iwpadi Ix IuIsj,rvjcculn teduc iug(114r. *I#I1 SItMliIiIflt. ~ IIIC ptilluliun lnit to tI ilia Lutuialakc, ts iv.eI Bs tihe

;nccomnpnybig benet1s, ty ithe cainrnuuiury,,'i tihe undersigned,FOi(olAFtl oIFovuvwe W 111mtr on beimir or tihue Buru;jy -CixmdciI,. hereby suponrt tuid

avor,ably clidolrse ilue iIa pftject o0lWC.3. 1eihk SwritaUrn^* .11k £,h,nlw , Jngsx

4. IA)IlIlF brt3A'j'ii'i* flIhl.'ff 1Yours

ffi &Ie{tdJwujie e*o J4 d.t4r,tfuli,Tuv,ukt6 . A 4 U .

*,. - ,-<.

ANNEX 7

ANNEX 7. DRAFT OF MEMORANDUM OF AGREEMENT (MOA) BETWEEN MANILAWATER COMPANY AND THE BASES CONVERSION DEVELOPMENT AUTHORITY

MEMORANDUM OF AGREEMENT

This Memorandum of Agreement made and executed on this _day of 2001at Pasay City by and between:

MAMILA WATER COMPANY, INC., a corporation duly organizedand existing under and in accordance with the laws of.the Republic of thePhilippines, acting as concessionaire/contractor/agent of the MetropolitanWaterworks and Sewerage System (the "MWSS"), with principal office atthe MWSS Administration Building, 489 Katipunan Road, Balara, QuezonCity, Metro Manila, represented herein by its President, ANTONINO T.AQUINO, thereunto duly authorized, hereinafter referred to as "MWCI";

-and-

BASES CONVERSION DEVELOPMENT AUTHORITY, agovernment corporation duly organized and existing under and inaccordance with the laws of the Republic of the Philippines, with principaloffice at BCDA Corporate Center, Gozar corner Lucas St., Villamor AirBase, Pasay City, represented herein by its Chairman and President,ROGELIO L. SINGSON, thereunto duly authorized hereinafter referredto as "BCDA";

WITNESSETH THAT:

WHEREAS, by virtue of and pursuant to a Concession Agreement datedFebruary 21, 1997 (the "Concession Agreement"), executed by and between the MWSSand MWCI, MWSS granted to MWCI, as concessionaire/contractor/agent, the soleright to manage, operate, repair, decommission and refurbish all fixed and movableassets required to provide water delivery and sewerage in Service Area East (the"Service Area") of the franchise area of MWSS, which includes the Municipality ofTaguig in Metro Manila;

WHEREAS, BCDA is the owner and developer of a housing project known asProject Dreamland, hereinafter referred to as "Dreamiand", situated in Barangay

Signal Village, Taguig, Metro Manila, described in and covered by TCT No. ofthe Registry of Deeds of ;

WHEREAS, the BCDA owns and holds title to the Common Areas inDreamiand which include the sewer lines from the outlet of individual septic tanks tothe chlorine contact chamber and the chlorine contact chamber installed in Lot _

covered by TCT No., _ _ of the Registry of Deeds of , hereinaftercollectively referred to as the "Sewerage System";

WHEREAS, in line with a program initiated by MWCI in pursuance of theConcession Agreement, MWCI has offered to uograde, operate and maintain theSewerage System, and BCDA, as the present owner of said Common Areas hasaccepted said offer, upon and subject to the terms, conditions and stipulationshereinafter set forth;

WHEREAS, in order for MWCI to provide surface water supply to the variouscommunities in Signal Village and Upper Bicutan areas, including Dreamland, MWCIshall construct a 400 mm 0 water main along Cuasay St. (the "Cuasay Line") to beinterconnected to the 600 mm 0 feeder main along C-5 Road which shall becommissioned by the latter part of 2003, more or less;

WHEREAS, pursuant to the provisions of the Concession Agreement, MWCI iscommitted to provide sewerage services to at least 52 percent (52 %) of the populationof Taguig with MWCI water supply by year 2006;

NOW, THEREFORE, for and in consideration of the foregoing premises and ofthe mutual covenants herein contained, the parties hereto have agreed, and do herebyagree, as follows:Article 1. RIGHTS AND RESPONSIBILITIES OF MWCI

1. Upon completion of the water service connection from the Cuasay Line tothe water distribution system of Dreamiand, MWCI shall extendtechnical assistance to the BCDA for the distribution of water to eachcistern and overhead water tank.

2. Subject to Item 1 of Article 2 hereof, MWCI shall, at its expense,construct a Sewage Treatment Plant (the "STP") to serve Dreamland.Ownership of the STP shall be held by MWCI.

3. MWCI shall submit a maintenance program and coordinate with BCDAprior to any repair/rehabilitation of the existing Sewerage System.

4. Prior to the construction of the STP, MWCI shall submit to BCDA thedetails of the plans for the construction of the STP for BCDA'sconcurrence, including the necessary permits to implement the

construction. Upon completion of the STP, MWCI shall provide BCDAwith copies of as-built drawings of the STP.

5. Commencing from the date of commsissioning of the STP byMWCI,MWCI shall be liable for any charges or fines that may be assessed forany violation of the national and local environmental laws and standards,provided that the said violations are not the result of or due to the acts,fault or negligence of BCDA and/or the residents of Dreamland.

6. Commencing from the date of commissioning of the STP by MWCI andupon activation of the water service connection from the Cuasay Line tothe water distribution system of Dreamiand, sewer charges shall beincorporated in the MWCI water bill, which shall be paid by BCDA (orthe Homeowner's Association upon turn-over of Dreamland from theBCDA to the Homeowner's Association), based on the readingsregistered on the mother meter and/or deepwell meters, and at rates inaccordance with the Concession Agreement.

Article 2. RIGHTS AND RESPONSIBILITIES OF BCDA

1. BCDA shall provide gratuitous easement on the lot on which MWCI shallinstall/construct the STP.

2. BCDA shall ensure and guarantee to the authorizedpersonnel/representative(s) of MWCI, its contractors, successors, andassigns, free ingress to and egress from the Sewerage System for theexecution/performance of all works and activities in connection with theoperation, management and maintenance of the Sewerage System.

3. In the event that the ownership of or title to any Common Areas andother areas on which gratuitous easements or rights of way areconstituted and/or intended to be constituted under this Agreement, istransferred or encumbered to another party, BCDA shall see to it that therights and obligations of BCDA and MWCI under this Agreement and/orany amendment or extension thereof, shall be recognized, protected andrespected by appropriate stipulation.

4. At any time prior to the activation of the water service connection fromthe Cuasay Line to the water distribution system of Dreamland, the costof the operation, maintenance and management of the Sewerage Systemand the STP will be for the account of BCDA.

5. BCDA, together with MWCI, shall ensure that the residents ofDreamland are duly informed, educated and notified of the turnover ofthe operation, management and maintenance of the Sewerage Systemfrom BCDA to MWCI, and their concomitant rights and responsibilitiesregarding the same.

6. BCDA shall execute a Contract for Bulk Water Service Connection withMWCI prior to installation of any water service connection. It isunderstood and agreed that BCDA shall seek written consent fromMWCI of its transfer of rights and obligations under the said Contract toany duly registered homeowners association, or other legal aggrupation.

Article 3. MISCELLANEOUS PROVISIONS

1. Indemnity. Each party hereto shall indemnify and hold the other party, itsofficers, employees, successors and assigns, harmless from and against alldamages, losses or expenses suffered or paid as a result of any and allclaims, demands, suits, actions, causes of action, proceedings, judgmentsand liabilities (including, reasonable attorney's fees incurred in litigation orotherwise) assessed or incurred or sustained by or against any such partywith respect to or arising out of an act or omission or breach of covenant orrepresentation or warranty of the indemnifying party or any of its officers,employees, agents, contractors, representatives, successors or assigns,except to the extent that any such damages, losses or expenses are theresult of the gross negligence or willful misconduct of, or failure to complywith the terms of this Agreement by the indemnified party, its officers,employees, agents, contractors, representatives, successors and assigns.

2. Non-modification of Terms and Conditions. This Agreement cannot bechanged except in writing and subscribed by the parties. This Agreementshall be binding and shall inure to the benefit of the parties and theirsuccessors and assigns.

3. Authority of Contracting Parties. Each party hereto represents andwarrants that it has full power and authority to enter into and perform itsobligations under this Agreement. All necessary actions, consents andapproval for the execution of this Agreement have been taken and/orobtained. This Agreement constitutes the legal, valid and binding obligationsof the parties enforceable according to its terms. MWCI also warrants thatthis Agreement is in conformity with its Concession Agreement with MWSS.

4. Venue of Legal Action. The venue of all suits or actions arising out of or inconnection with this Agreement shall be the proper court of Taguig, MetroManila.

5. Review of OGCC. This Agreement has been reviewed by the Office of theGovernment Corporate Counsel whose comments, corrections, andamendments were made part of this Agreement.

6. Effectivity of Agreement. This Agreement shall take effect immediatelyupon its signing.

IN WITNESS WHEREOF, the parties hereto have caused this Memorandum ofAgreement to be executed by their respective officers, thereunto duly authorized, onthe day and at the place hereinabove stated.

MANILA WATER COMPANY, INC. BASES CONVERSIONDEVELOPMENT AUTHORITY

By: By:

ANTONINO T. AQUINO ROGELIO L. SINGSONPresident Chairman

SIGNED IN THE PRESENCE OF

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES) S.S.

On this day of 2001,before me, a Notary Public in and for, personally appeared the following:

Name Comm. Tax Cert. No. Date/Place Issued

Antonino T. Aquino

Rogelio L. Singson

both known to me and to me known to be the same persons who executed theforegoing Memorandum of Agreement, consisting of - pages including this page, eachof which has been signed by the parties executing the same and their two (2)witnesses, and they acknowledged to me that the same is their free and voluntary actand deed as well as the free and voluntary act and deed of their respective principals.

IN WITNESS WHEREOF I have hereunto set my hand and affixed my notarialseal on the date and at the place hereinabove stated.

Doc. No. ;Page No. ;Book No. ;Series of 2001

ACCOUNTABILITY STATEMENT OF THE PROJECT PROPONENT

This is to certify that all the information in the enclosed InitialEnvironmental Examination (IEE) are true, accurate, and complete. Should welearn of any information which would make the enclosed IEE inaccurate, we shallbring the said information to the attention of the Environmental ManagementBureau (EMB) of the appropriate DENR Regional Office and the EnvironmentalDepartment of World Bank.

We hereby bind ourselves jointly and in solidarity with the preparers forany penalties that may be imposed arising from any misinterpretations or failureto state material information in the enclosed IEE.

In witness whereof, we hereby set our hands this 21St day of December2001 at Quezon City.

Manila Water CompanyProject Proponent

by:

Antoni oT. A uinoPresident

SUBSCRIBED AND SWORN to before me this 21st day of December2001, affiant exhibiting to me his Community Tax Certificate No. 05959688issued on January 12, 2001 at Quezon City.

Notary Public

Doc. No. " Page No .Book No X ' ,,f .

Series of 2001

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