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REPUBLIC OF THE PHILIPPINES
ENVIRONMENT AND SOCIAL SAFEGUARDS FRAMEWORK
(ESSF)
(February 7, 2012)
FOR THE
METRO MANILA WASTEWATER MANAGEMENT PROJECT
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FOREWORD
This Environment and Sodal Safeguards framework (ESSF) has been
prepared for the Bank's Metro
Manila Wastewater Management Project. The team that worked on
the preparation of the document
comprised of staff from land Bank of the PhiUppinesj Manna Water
Company, \nc" and MaynUad Water
Services, Inc. Consultations took place with re.levant
authorities from the Philippines for the preparation of the
document. An earlier draft version of the document was discussed in
a meeting at the premises
of Department of Environment and Natural Resources on October 5,
2010. The earlier version of the
ESSf was also publidy disclosed by lBP, Manila Water, and
Maynilad in their web~sitest and also placed
in the Bank's tnfoshop in February 4,2011.
The Borrower of the proposed Bank loan would be l8P which will
on-lend the Bank loan proceeds to Manila Water (MWCI) and Maynilad
(MWSI). As a Borrower, lBP wi.U ensure that Bank's polides on
environmental and safeguards are followed and to this end it would
work with the Manila Water and
Maynilad. The Bank's environmental category of financial
Intermediary is appHcabte for the project and
the ESSF has been prepared accordingly.
Throughout the document Manna Water and Maynilad have been also
referred to Concessionair. QI\"
Sub-Borrowers. Further, lBP has also been referred to as a
Borrower in different parts of the document.
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TABLE OF CONTENTS
LIST OFABBREVIATtONS AND ACRONYMS
........,......................................................................................4
I. Background..., .......................... 60
..............................................
'H.................................................
A. Project Overview
.........................................................................................................................6
B. Project Description .." ........... ,
............................................. ' ...................
"'... , .... , ............................ 7
C. Project Cost and Finandng ....... "
.................................................................................................
9
D. Areas of Jni1uence
.......................................................................................................................9
E. Scope and Objectives of the ESSf ......... n ......... "
.....................................~..................................
10
F. Retroactive Financing
..................................."'...... , n .... Of
10........................................................ n
II. Environmental and Social Safeguards
Issues..............................................................................11
A. Environment Safeguards Issues
.................................".n...........................................................
11
B. Social Safeguards Issues ..........,,,....................u
12................................................................"
.......
e. World Bank Safeguards Policies Triggered in the Project
...........................................................12
III. Project Process
Guideline................................................... "
..................................................... 14
A. Environmental
Safeguards.........................................................................................................16
B. Social Safeguards
......................................................................................................................19
C. Retroactive Fj,nanclng ..................... ,
...................................... , ...................... "
..................... , ...... 29
IV. Subproject Monitoring and Audit
.............................................................................................3,1
V. Public Consultation. Partidpation and Oisdosure
.............................n 33...n ........n
........................
A. Introduction .................... "
............................................................... '
........ " ............................... 33
B. Public Consultation Requirements for Environmental
Safeguards..............................................33
C. Public Consuftation and Participation in Social Safeguards m
..... ................................................33
O. Disclosure
................................................................. '
................................................................
34
VI. Institutionai Arrangements
...............................................................................................ro
35
A. Land Bank of the Philippines {LBP)..................... ,
............................. " ............ ", ..................
" .. " .. 36
B. Manila Water CompanV,lnc. (Mantia Water)
.............................................................................38
C. MaynUad Water Services, fnc. (Maynifad)
..................................................................................39
D. Department of Environment and Natura} Resources (DENR) and
laguna lake Development
Authority (LLDA)
.........................................................................
, ........................ "'., .......................... 39
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43
E. Local Government Units
(LGUs)"........................................................."'"
....................................40
VII. Capacity
Building....................................................................................................................
, .. 41
VIII. Grievance Redress
Mec:hanis,m.............................."' .................. H
.......... " ......... " .......................
Annex 1: Initial Screening Form for Potential Environmentar 8t
Social Safeguards Issues .......... .,,, ........ .46
Annex 2: EA Requirements for Sanitation and Sewerage
Projects..........................................................48
Annex 3: Sample Terms of Reference (TOR) for an EA for
Wastewater Collection, Treatment, Reuse and
Disposal Systems (Construction and RehabiUtation)
...............................................................................50
Annex 4: Template for an Environmental Management
Plan.............................. "
................................. S6
Annex 5: Cultural Property and Protection
Measures................. " ..............................."." .."
................ 63
Annex 6: Safeguards Procedures for Indusion in the Technical
Specifications for Contracts ..................65
Annex 7: Summary of'Public Consultation Meeting Proceedings on
the MWMP 'ESSMf ....................... 69
Annex 8: Terms of Reference (TOR) .................... "
.................................................................................74
Third Party Environmental Audit for MWMP ......... "
...............................................................................
74
Annex 9: Environmental requirements of Sub~pToje.cts,
Supervision and Institutional responsibilities ....78
Annex 10= Resettiement Policy Framework .......................
"
...................................................................
79
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UST OF ABBREVIATIONS AND ACRONYMS
ARAP BP CBOwl CNC DAO DENR OP EA ECC feR EOO EIA EIS EMA EMS EMM
EMoP EMP EPMAR EPMO ESSF FI F$
lEE ISO ESSF LBP lGU lLDA MWCI MWSI MWMP MWSS NIMBY NOL
OP peo peR PO PENRO PMD-Il PMO
RAP RCR ROW
Abbreviated Resettlement Action Ptan (World) Bank Procedures
Corporate Banking Department I Certrficate of Non-coverage DENR
Administrative Order Department of Environment 8. Natural Resources
Displaced Person Environmental Assessment Environmental CompUante
Certificate Environmental Compliance Report Environmental Due
Diligence Environmental Impact Assessment Environmental Impact
Statement External Monftoring Agency Environmental Management
Bureau Environmental Mitigation Measures Environmental Monitoring
Plan Environmenta! Management Plan Environmental Performance
Monitoring and Audit Report Erwironmenta\ Program and Management
Department
Environment and Sodal Safeguard Framework Financiallntermedrary
Feasibility Study Initial Environmental Examination Jnternational
Standards Organization Environmental and Social Safeguards
Framework Land Bank of the Philippines local Government Unit laguna
Lake Development Authority ManHa Water Company, Inc. Maynilad Water
Services# Inc. Metro Manila Wastewater Management Project
Metropolitan Waterworks and Sewerage System Not In My Back Yard No
Objection Letter Operational Pottey Poll ution Control Officer
Physical Cultural Resources Presidential Decree Provindaf
Environment &Natural Resource Office Programs Management
Department H Project: Management Offlce ResettJement Action Plan
Resettlement Completion Report Right of Way
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SA Social Assessment SEeR Social & Environmental Compliance
Report SMR Self Monitoring Report SSLDIP Support for Strategic
Local Development and Investment
Project STP Sewerage Treatment Plant
I III
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r.Sackground
A. Project Overview
1. The Philippines has been maintaining stroog economic growth
due to activities in urban
areas, especially around Metro Manila. As the urban areas
continue to grow, the challenge of
providing sustainable urban services arises, especially relating
to sanitation and water. Stnce
1997, water supply, sewerage, and sanitation services in Metro
Manila have been assigned by
the Metropolitan Waterworks and Sewerage System (MWSS) to be
managed by the two private Concessionaires: Manila WatE!r Company
Inc. (MWCt) for the east zone and Ma.ynilad Water
Services Inc. (MWSt) for the west zone. However, sewerage
coverage remains very Jow at 16
percent in the east zone and 8 percent in the west zone.
2. The need to increase the sewerage coverage in Metro Manila is
particularly important in
achieving the timeUnes set in the Clean Water Act and the
Supreme Court mandamus deCision
to realize an improved water quality in Manila Bay- MWCI p~ans
to increase coverage in the east lone to 30 percent in ZOlO and 100
percent by 2037. In the west zone, MWSI also plans to
expand its wastewater collection and treatment services to 14
percent by 2012 and to 100
percent by 2037.
3. In order to meet the objectives of increasing the coverage
and effectiveness of
wastewater collection and treatment as welJas septage management
in Metro Manila and its'
suburbs, the Government of the Philippines is preparing the
Metro Manila Wastewater
Management Project (MWMP) through the Land Sank of the
Philippines (lBP)1 which will act as
the Financial Intermediary (FI) and Borrower for the project and
through the two
Concessionaires: MWCI and MWSt, which will be the Sub-Borrowers.
Specific development objective of the MWMP is to improve wastewater
services tn selected sutrcatchments of Metro Mantia and surrounding
areas. This will be achieved by supporting Manila Water and
MaynUad
to increase their coverage of wastewater coflection and
treatment and septage management
which win contribute towards improving the environment in Metro
Manila.
4. The overall environment and social benefits to be generated
by the project will contribute to an improvement in the general
state of the environment in Laguna lake-Pasig River-Manila Bay ~
watershedt leading to better health and wen-being due to improved
living
conditions for the people. This promises a better quality of
life and economic competitiveness
for Metro Manila and its suburbs. Additional project details are
available in the Project
Appraisal Document.
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The Concessionaires wit! pay for any land acquisition and
resettlement costs which will not be financed with Bank funds.
7. COmponent 1: Investments In Wostewtlter Services by Nlanikl
WGfer ($1.93.4 million} This component supports technical
assistance and investments by the Concessionaire in wastewater
coUectlon and treatmentl and septage management in the east
Concession zone of
Metro Manila. Only one investment has been foreseen for Manila
Water which is the North and
South Pastg Sewerage System. It will indude the construction of
a wastewater treatment plant
(capacity of 165,000 m 3/day) and associated sewerage tines. The
pre~qualiftcation process to select a contractor that wilt
construct the treatment plant on a Design Build basis is underway.
Separate contracts for instaUation of sewers win also be prepared
and for which preparation for designs is underway. Environmental
and social safeguard instruments have already been
prepared for the treatment plant. However, the designs and
location for the sewer systems
have not yet been completed. Permanent impacts due to sewer
network and laying' of wastewater mains are expected to be limited
as it is expected that new sewer lines would be laid rn public
spaces and mostlv in the mfddle of the existing roads. These works
would however,
cause temporary impacts on roadSide commerdalestablishment and
residential buildings In terms of temporary restriction of access.
Where waste water mains and sewer lines traverse private
properties/housing association areast easement rights for laying of
such pipelines, and
their periodic repairs/maintenancel would be obtained in
consultation with respective owners and associations. Therefore, no
land acquisition for such areas would be necessary. However, in
case of any need for land acquisition) the provisions of tneESSF
will apply.
8. Component 2: Investments in Wastewctter Servk:es by Moynilad
{$220.7 million} - This component supports te
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including the sewer lines; and Maynilad/s rehabilitation work in
Ayala Alabang 5TP, Talayan STP and Pasay STP. It Is expected that
the sewer lines investment would not require land acquisition
as the lines would be laid under existing public roads. The
finat designs for the sewer lines win be carried out during project
implementation and in case the final designs require land to be
acquired, the procedures outHned in the ES5F would be followed.
SimilarlY1- pump stations may
require land acquisition in case they are installed in areas
which are not public land. In case land acquisition is neededf the
provision of the ESSF would be followed. About 74 percent of the
Bank loan will be committed through the Phase I ;nvestments.
Phase 2 investments ate the indicative investments for Maynilad
where construction will start after March 31, 2013. These potential
investments are for the South Septage Treatment plant, Valenzuela
STP, and Muntinlupa STP. Mayniiad is in the process of acquiring
land for these sites.
Once the land is acquired, site specific conditions wouJd be
known and Maynilad wouJd be abJe
to prepare the. necessary safeguard instruments during project
implementation. The project is
classified as an FI loan for environmental purposes and r~lated
Bank procedures would be
followed. The safeguard documents would be prepared under phase
2 as per the procedures
outlined in the EnvirOnment and Social safeguard Framework
(ESSF). Maynilad will hire consultants to carry out detailed
designs for the sewer networks. Thereafter contractors would be
hired for the instaflation of the network. Maynilad will also hire
a contractor to construct the
STPs and the septage treatment plant through a Design Build
contract.
C. Project Cost and Financing
10. The total cost of the proposed project is US$ 414.1 milUon
with a Bank finanCing of US$
275 minion and US$ 139.1 million in equity investments provided
by the Concessionaires. The
total investment cost may change and it would depend on the
actual investments that are
carried out. The Bank toan of US$ 137.5 miHion would be made
available to each Concessionaire for the investments and the rest
of the investments would have. to be borne by the Concessionaires.
The front end fee of US$ 687.5 thousand will be paid by the
Concessionaires
outside of the Bank loan and the investment cost includes price
and physical contingencies. For Component 11 the investment cost is
US$ 193.4 million of which US$ 55.9 m~Uion wUl be financed by ManUa
Water and the rest bv the Bank. For COmponent 2, the investment
cost is US$ 22.0.7 million of which US$ 83.2 million is expected to
be financed bV MaynHad and rest by the Bank.
o. Areas of Influence
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11. In a sub~catchmene where there is Bank financing, all
activities - Bank financed or non
Bank financed - necessary to achieve the stated development
objective will follow Bank safeguard procedures. for the proposed
septage treatment plant by Maynilad.. the Sank's
safeguard policies wiH apply to the construction and operation
of the plant, including the associated septage coIIection t
treatment and disposal activities. For this project, the
environment and social safeguards policies will be applicable
for the construction/ rehabilitation
of the sewage/septage treatment faCilities, main sewer trunk
lines} pumping stations, sewer
manholes, interceptor canals and sludge management
E. Scope and Obiectives of the ESSf
12. Preliminary investigations carried out by the
Concessionaires suggest that environment
and SOcial impacts will occur both dUring construction and
operational phases of the project,
The scope of the impacts will vary from sub-project to
sub-project. This Environment and Social Safeguards Framework
(ESSf) w;U guide the project to adequately address and mitigate
adverse
environmental and sodal impacts that will be potentiaUy
generated bV the project.
13. The ESSF establishes the objectiveSI procedures,
institutional framework, and
implementation arrangements for identifying.. managing and
monitoring potential
environm~mta' and social impacts of the project activities. The
ESSf wm address mechanisms for public consultation and disclosure
of project documents as well as redress of possible
grievances. The scope and key objectives of the ESSF
incfude:
To establish dear procedures and methodologie.s for the
environmental and social
screening} review; approval and implementation of sub-projects
to be financed under
the Project; and
To specify appropriate roles and responsibilities, and outline
the necessary reporting
procedures, for managing and monitoring environmental and social
concerns related to suO-projects.
f. Retroactive Financing
14. Retroactive financing, as defined in the loan Agreement
between the Sank and LBP is possible under the project. For a
project to be considered for retroactive financing, the sub
project financing criteria.. induding those related to
environment and sodal safeguards have to be met. The procedures
laid out in this ESSF will apply for sub-projects to be conSidered
for retroactive financing as described in Section lIIe Retroactive
Financing,
2 Under this project, a sutJ..catchment comprises of a
wastewater treatment plant. sewerage hnes to convey WflStewater and
pipelines for conveying and d~ng treated wastewater. and systems
for sludge management and transportation.
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JI. Environmental and Sodal Safeguards Issues
15. The ESSF is responsive to the relevant national and local
Jaws and regulations and the
World Bank Safeguards Policies. The safeguards requirements for
the project wilt build upon national guidelines and requirements in
order to streamline the documents required for each sub-project
without compromising in any manner the safeguard requirements of
either the
government or the World Bank.
A. Environment Safeguards Issues
16, This project \s the fourth of a series of i~vestment
pro}ects assisted by the we to expand the effective de(fvery of
services for sanitation and sewerage sector in Metro Manila. The
WB
has assisted the financing of eight sewage treatment plants, two
septage treatment plants and
seven communal septiC tanks that are operating in Metro Manila.
These plants are operating
satisfactorily and the lessons learned have been incorporated in
the project design. Key lessons learned are applying open market
purchase for land acqutsiti
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treatment facility. These issues have to be addressed. Based on
experienceJ It is best practice
to iniUate an early engagement with the stakeholders and a
public disdosure of project
documents to end usersl iocal communitfes1 government
regulators, Local Government Units,
service providers in planning and designing sanitation and
sewerage projects to ensure project
sLJstainabifity and soda' acceptability.
B. Sodaf Safeguards Issues
20. Land will be required for the physicaJ components of the
project (Sewerage Treatment
Plant, wastewater treatment plants, interceptor boxes} pump
stations., etc.}. For STPs,
depending upon the capacity, the fand requirement may vary
(expected to be between 1~3
hectares). For pump stations and interceptor boxes, the land
requirement will be much smaller. During identification of
potentiat sites} both the Concessionaires will as much as possible
avoid
'and parcels with multip~e owners and encumbrances. Permanent
impacts due to sewer
network and laying of wastewater mains are expected to be
limited as it is expected that new sewer lines would be laid within
public roads. These works would however, cause temporary impacts on
roadside commercial establishment and residential buildings in
terms of restriction
of access. Where wastewater mains and sewer lines traverse
private properties/housing
association areas, easement rights for laying of such Pipelines,
and their periodic
repairs/maintenance, would be obtained jn consultation with
respective owners and
associations. Therefore. no land acquisition for such areas
would be necessary.
C. World Bank Safeguards Policies Triggered in the Project
21. Following Bank safeguard procedures will be triggered~
OP/BP 4.01 EA: Environmental category of Financial Intermediary
(FI} will apply. Individual sub-projects wiU be screened and
aSSigned the appropriate environmental categorization and
environmental due diligence (EOD) will be conducted in
accordance
with OP 4.01.
OP/B., 4.04 Natural Habitat$: The policy is triggered in case a
subllfoject affects natural
habitats. This wiH be determined during the preparation of the
environmental instruments. However, It should be also noted that
site vtsits for the known sttes in
Phase 1 have indicated that the project is not expected to cause
significant conversion
or degradation of natural habitats. All sub-project proposals
will be screened for potential adverse impacts on criti cal and
non-critical natural habitats and neatssary mitigation measures
will be prepared as part of the sub-project speCific EA and
EMf>.
OP/BP 4.12 Involuntary Resettlement: land acquisition and
involuntary resettlement
are anticipated under the project, particulariy for sub~Pfojects
involving service
expansion or reconstruction at new sites. Sub-projects will be
scteened for land~related
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impacts, and appropriate resettlement instruments. if needed
will be developed and implemented.
22. Provisions for chance finds will be included In the project:
AU construction activities will
I include mechanisms to address chance finds to avoid or
mitigate adverse impacts on Physical :.:J2.:y;..
Cultural Resources (PCR) in ManHa. Further" the environmental
assessments to be carried out
will confirm whether peR are affected. In case the environmental
assessment identifies that
peR will be affectedl the Bank's policy on Physical Cultural
Resources (OP 4.11) wHi be triggered and appropriate measures will
be taken as per the policy. Ways to address chance finds are
elaborated more in the ESSF (Annex 51 Cultural Property and
Protection Measures}.
I 23. Indigenous Peoples policy (01' 4.10) is not triggered. No
indigenous people that
correspond to the Bankls definition of Indigenous Peoples are
residing within project influence area. There are no ancestral
domains ;n Metro ManHa and indigenous peoples found there are
dispersed and do not form distinct cultural communities. Many
are temporary visitors seeking
seasonal economic opportunities. Further, no forced severance
from ancestral territories has
occurred. This has been confirmed in a discussion held with
National Commission on Indigenous People (NC1P) in August 2010 as
well as a review of the database in the NCIP website
http:U202S7.46.78/adis/Public/defaufta$Q.~.
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http:U202S7.46.78/adis/Public/defaufta$Q
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Ill. Project Process Guideline
24. As sl)b-projects win be prepared for financing in a
continuous manner during the proj~ct
implementation period, screening for potential environmental and
social impacts wiU be conducted and mitigation and managemen~
measures will be developed in line with the agreed ESSF.
Environmental and social impact screening, mitigation and
management measures development and implementation will foJlow
these steps. The two Sub-Borrowers will carry out the work related
to the steps mentioned below. LBP will review the process and the
documents
prepared to ensure that Bank procedures were followed, prior to
requesting financing from the Bank for the sub-projects. The Bank
will also review prior to providing financing to ensure that the
process has been adequately followed.
Step l .. ldentification of Subwptojects According to Selection
Criteria.
The selection criteria are known to the Sub Borrowers who will
identify the subprojects, including the possible land where the
investments are expected to be carried out. MWCI plans to acquire
the land through a willing-buyer-wilting seifer method and
the tocation of site would be known once the contract to sen
(s\gned between MWCI and the Jand owner) is signed.
Step 2 Screening
Screening for potential environmental and sodat safeguard
impacts and determination of safeguards documents required
according to national regulations and World Bank policies.
Screening will determine 0) whether the project Is environmental
category A, B or C (H) the national applicable requirements and
Bank poliCies to be triggered and (iii)
the choice of safeguard instruments. The social screening will
include in particular determination on whether the Bank's policy on
Involuntary Resettlement wiff apply and in case where the land is
acquired through open market purchase on a Willing BuverWilling
SeHer baSis, the process and procedures to do so.
The Sub..Borrowers will ensure that the sub-projects are aligned
with the screening process outlined in the eSSF.8ecause the
evaluation of the expected environmental and sodal impacts requires
speciatiled technical skins} the Sub-Borrower may employ qualified
environmental and social speciafists as well as consultants to
assist them in this
task. The Sub-Borrower will submit the results of the screening
to lBP.
Step 3 ~ Project Preparation and Documentation
Once the screening and dOQ.lmentat;on f~qU\rements are
acceptable to LSI' ~ it win
submit the results of the screening to the Bank. After the Bank
provides its comments,
the Sub Borrower will provide TORs that determine the scope of
the environment
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I lnstruments to be prepared. In particular for Category A
projects, the Bank will review
the TORs. Then the Sub-Borrowers will develop detailed safeguard
documents and
impact mitigation measures
it
AU corresponding safeguards instruments shaU be prepared by the
Sub-Borrower.
Likewise, It 'is the responsibility of the Sub-Borrowers to
carry out the necessary permit applications as required by the
ESSF, and to obtain the necessary clearances for each
sub~project before starting the construction. Sound safeguards
practices have to be
incorporated into the sub-project design and implementatiQn~ and
potential negative
impacts will have to be mitigated to acceptable levels /
stanth.;rds. The Sub,Borrowers
are responsible for the quality and accuraCy of the information
in the safeguards
document, as weU as the transmission of these documents to
Department of Naturat Resources {DENR} or other government
agency.
Safeguard documents will be subject to consultation and
disclosure in an accessible
placel in a timely manner, in a form and language understandable
to key stakeholders,
prior to the finalization of the documents. Particular attentioo
will be given to ensure
project-affected persons have adequate time and ready access to
draft documents
before consultation takes place.
Step 4 .. Review and clearance of environmental safeguards
documents
The environmental and social safeguards documents prepared by
each of the
Concessionaries wm be reviewed by LBP which may consult other
related agencies, After the documents are satisfactory to lBP. it
win submit the documents to the Bank for review and approval with
its assessment on how the ESSf conditions hav~ been met,
The safeguard documents for all sub-projects are subject to
Bank's review.
Step 5 -Implementation .. SUpervision, Monitoring and
Evaluation
Implementation of the safeguards measures during sub~project
implementation is the
responsibility of the Sub-Borrowers. Any costs associated with
the government process
and cost of monitoring shaH be shouldered by the Sub-Borrower.
The primary purpose of complian~ monitoring is to ensure the
jmplementatlon of sound and standard environmental procedures as
defined during the project preparation. Specifically, it aims
to: (i) monitor project compliance with the conditions set in
the safeguards instruments
and appticable laws1 rules and regulations; and (ii) provJde a
basis for timely dedsion
rnaJdog and effective planning and management of the mitigating
measures through the
monitoring of actual project impacts vis~a~vis the predicted
project impacts.
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A. EnvironmentaJ Safeguards
Applicable Policies
25. As per Bank's dasstficatior"l, this project has been
(;ategorized as a financial Intermediary (FI) and LBP as a Borrower
will ensure that the Bank's policies and national regulations on
the environment are followed, and appropriate instruments prepared.
Under the FI category, it is
possible to have subprojects belonging to environmental
categories AI B~ and C as per Bank's
classification. The procedures outlined for each of these types
of environmental categories wiU be followed by the Concessionaires
and lBP.
26, The following national laws and regulations relevant to the
environmental safeguards
and the protection of water bodies from pollution provide the
basis for the overall framework of
the ESSF:
Presidential Oecree (PD) No. 1586, 1978 on the EfS System;
Republic Act No. 9275, 2004 on the Philippine ctean Water
Act;
Presidential Proclamation No. 2146, 1981 on EnvironmentaJly
Critical Projects I Areas; Administrative Order No. 42 by the
Office of the President 2002, describing categories
of projects and areas subject to the EIS System;
DENR Administrative Order No. 2003-30; the Implementing RuJes
and R~ulations (lRR)
for the Philippines EtS System (2003), and its Revised
Procedural Manual issued August
2007;
Memorandum Oreular No.: 2010-14 Standardization of Requirements
~nd Enhancement
of Public Participation in the Streamlined Implementation of the
Philippine ElS System;
and
Republic Act 9003,2000, Ecological Solid Wastes Management
Act.
KeySttps
{IJ Identification of Subw-projects According to Selection
Criteria
27. In identifying the sub~PfOjectSf including the iO(atlon of
the site, the Concessionaires will take into account relevant
environmental and social considerations. This will indude
assessment of the various sewage treatment options, locations to
minimize potential environmental risks (noise, odor, pomping,
discharge ftom STP, e-tc), avaHability of land, as we" as
suitability of the
project in a given neighborhood that lead to the selection of
these investments.
(m Environmental Screening 28. The environmental screening that
would be carried out would identify key potential
environmental issues that coufd arise from the proposed project.
The screening process wilt
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arso be used to determine the environmental category of the
project (AI BJ C) as per BankJ s requirements. The success of an
environmental screening is dependent on adequate baseline
environmental data, technkal expertisel good planning,
management support, and coordination
with key players and decision makers.
29. With respect to environmentaJ screentng of sub-projects, the
national regulations and
World Bank policies are considered together since both are
impact..t>ased and wifr require the Sub~Borrower to identify and
assess potential impacts to enVifOnm@4lta\ components such as
water, air, land and natural habitats and biodiversity. The
screening results wnt be cross~ checked with national regulations,
in order to dete.Nnine the applicable fA documentation
requirements. Three safeguards instruments are spedfied in the
regulations: (al EIA report; (b) Initial Environmental Examination
(tEE); and (c) Project description.
30. Annex 1 provides an Initial Screening Form for potential
environmental and social
safeguards issues. This form facilitates the determination of
applicable World Sank safeguards
policies as well C:lS those relevant to national legislations.
It provides the checkHst for screeningl classifies environmental
category and identifies the safeguards instruments required.
(iii) Project Preparation and Documentation
31. The environmental safeguards instruments for each
sub-project will be determined based on the screening procedure$,
as follows. All documents win be prepared by the Sub
Borrowers and submitted to lBP for review. After the documents
are acceptab~e to lBPI it will send the documents to the Bank for
review and dearance for the Bank to conform financing of
the sub-project. AU safeguard documents will be subject to prior
review by the Bank:
Category A: Subprojects will require an EtA that indudes an
Environmental Contingency Plan and an EMP prepared in accordance
with Sank requirementsl the terms of
reference for which can be found in Annex A of the Ban.k Policy
OP/BP 4 ..01. Moreover,
aU bidding documents wiU lndude a standard contract dause for
implementing and
reporting compliance to the EM?, occupational health and safety
protection measures and chance finds of physical cultural
resources~ The Sub~80rrower will consult with the
Borrower during preparation of aU safeguards documents for
Category A projects. The Sub-Borrower win set up an Environmental
G\larantee Fund {EGf) in agreement with
DENR for this project. The EGF is money reserved by the
Sub..Bofrowers in an escrow
bank account that will be used to rehabilitate Or restore
destroyed habitats or degraded
ecosystems or compensate any project affected individual caused
by any environmental negligence of the project. An EGF committee
shall be formed to manage the Fund and
shall be composed of representathres of DENR, affected
communities} concerned lGUs
and relevant government agencies identified by DENR.
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Category B: Sub-projects will require an EtA or simplified EIA
(i.e., IEEt as required under the national laws and regulations)
and an EMP (as per the Bank policy). The sub-project specific EMP
and standard environmental codes of practices, indudin8 coverage of
how to handle chance-finds of physical cultural resources, will be
included in all construction contracts/bidding documents.
Category C: Sub-projects that are rated Category C require a
Project description and an EMP depending on the size and nature of
their activities and wilt need to comply with the regulatory
requtrement for reg;slration. Investments that wUl have minimal
impact
on the environment will be classified under Category C.
(tv) Review and dearance of environmental safeguards
documents
32. Approved Environmental Compliance Certificate (ECC) and
other relevant government permits and clearances will be
transmitted by the Sub-Borrower to the Borrower. The Borrower will
exercise environmental due diligence (EDD) by keeping records of
sub-project EA reports, feedback I technical informationl and fces
I Cert,ncates of Non-Coverage (CNCs).
33. The requirements for review and clearance of the
environmental documents bV the WB are as follows:
Category A: The EtAjEM9 and other relevant documents for aU
Category A sub-projects will be subject to we standard prior review
and dearance procedures prior to approval of the sub-prOject.
Category B~ The Simplified EIA (or lEE) and EMP for Category 8
sub-projects 'NUl be
subject to W6 prior review and dearance before approval of the
sub-project.
Category C: If an EMf' is necessaryt the we wilt conduct a
review of the document prior to confirming financing for the
sub-project.
34. Safeguard documents wift b~ subject to consultation and
disctosure in an accessible place, in a timely manner, in a form
and language understandable to key stakeholders, prior to the
f\naHzation of the documents. Particular attent,on will be given to
ensure project-affected
persons have adequate time and ready access to draft documents
before consultation takes place.
(v) Implementation - Supervisionj Monitoring and EvaluatIon
Supervision
35. The SubSorrowers will be responsible for the implementation
of the EMP. Annex 6
contains Safeguards Procedures for tnelusion in the Technical
Specifications of Contracts for the Sub-Borrowers' Contractors. The
Borrower wiH visit the sub-project areas as needed throughout
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project implementation in order to supervise the implementation
of the safeguards instruments
to ensure they are implemented in compliance with the Bank
policy requirerMnts. Roles and
responsibilities of each institution involved are described jn
detail in Section Vi Institutional
Arrangements.
Monitoring and Evaluation
36. The primary purpose of compliance monitoring is to ensure
the implementation of
sound and standard env1fonmentaf procedures as defined during
the project preparation,
Specifically, it aims to:
monitor project compliance with the conditions set in the
ECC;
monitor compliance with the EMP andappficable laws, rules and
regulations;
provide a basis for timely decision-making and effective
planning and management of
environmental measures through the monitorfng of actual project
impacts vis~avis the
predicted impacts in the EA tEMP as well as corrective measures
to be taken tn cases of non-compliance to the EMP.
DENR Procedures
37. In addition to the monitoring and evaluation conducted by
the Sub-Borrower and r~v\ewed by the: Borrower and the Bank, an
projects covered by the PhlHppine El~ System which have been issued
an Environment CompJiance Certificate shall be. subject.ed to
periodiC monitoring by the DENR (i.e., compliance and impact
monitoring in accordance with estabHshed
procedures and protocols). Within the framework of the
Philippine EIS System1 the
responsibilities of monitoring projects are lodged with the EMS
regional offices and the Laguna lake Development Authority(llDA}~
As a minimum requirement in compliance monitoring,
DENR-EMB and lLDA shall focus on the foUowing:
status of Sub~Borrower's delivery of commitment made in its EMP
(0(1 in the case of lEE
Report, the Summary Matrix of Impacts); effectiveness of the
comm;tted MP;n mitigating PfO}ect'S environmental impacts; and
meeting the terms and conditions of the ECC.
B. Social Safeguards
Applicable PoJidss
38. In terms of national legislations in the PhUippinesl the key
legal and administrative
policies relevant to involuntary resettlement are:
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The Bilfs of Rights of the Constitution of the R.epublic of the
Phmppjnes states: In Artide
ut, Section 1, "No person shall be deprived of Hfe, Uberty, or
property without due process of law, nor shaH any person be denied
the equal protection of the laws." In
Article til, Section 9, I1Private property shan not be taken for
public use without just
compensation.H
Executive Order 1035 (1985) requires conducting of Feasibility
Studies, Public
Information campaign, ParceUary survey and assets inventory. It
also provides for compensation for acquiredfand at fair market
value based on negotiations between owner and appraiser; relocation
assistance to tenants# farmers and other occupants;
financial assistance to farmers and agricultural tenants
equiva'~nt to the average
harvest for the last three years but not less than P lS/000/ha;
Disturbance
compensation to agricultural lessees equivalent to 5 times the
average gross harvest during the last 5 years; and compensation
f.or improvement on land acquired under
Commonwealth Act (CA) 141.
CA 141, Public Land Act (1936) institutes dassificatlon and
means of administration,
expropriation and disposition of alienable lands of the public
domain.
Supreme Court Ruling (1987) defines just compensation as fair
and full eq.olvalent to the
toss sustained to enable affected household to replace affected
assets at current market prices.
Republic Act 6389 provides for dlsturbance compensation to
agricultural leases
equivalent to 4 times the average gross harvest in the last 5
years.
Republic Act 8974 (2000) which facilitates the a1:quis;t\on of
ROW, site or location for
National Government Jnfrastrutture Projects arid for other
Purposes. Implementing
Rules and Regulations of RA 8974 was also issued. This mandates
the use of replacement value of land and structures (without
depredation).
RepubHc Act 7279 (1992) "Urban Devetopment and Housing Act"
mandates the provision of a resettlement 5;te~ basic services and
safeguards far the homeless and
underprivileged citizens.
Republic Act 7160 (1991) "local Government Code" which allows
the lGUs to exercise
the power of eminent domain for public use.
39. in addition to the prior national requirements" World Bank's
Policy on tnvofuntary Resettlement (OP 4.12) is applicable. The
objectives and main prindples of the Policy can be summarized as
follows:
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Involuntary resettlement should be avoided where feasible, or
minimized, exploring all
viable alternative project designs.
Where it is not feasible to avoid resettlement, 'resettlement
activities should be conceived and e)(.ecuted as sustainable
development programs/ , providing sufficient
investment resources to ~nabJe the persons displaced by the
project to share in project
benefits.
Displaced Persons should be meaningfully consulted and should
have opportunities to
participate in planning and implementJng resettJement
programs.
Displaced Persons should be assisted in their efforts to improve
their livelihoods and standards of living or at least to restore
them, tn real terms, to pr~isptacement levels
or to levels prevailing prior to the beginning of project
implementation, whichever \s
higher.
40. The key gaps between the local lawS' and regulations and
provisions of the World Bank's
Policy on Involuntary Resettlement (OP 4.12) inchide:
Philippine Constitution t Article XJlI, section 10: Urban or
run~f poor dweUers shall not be evicted nor their dwellings
demolished, except in accordance with the law and in a just
humane manner. Focus is Biven on urban poor as per UDHA. limited
assistance or
protection is given to the rural poor unless they are tenured
agricultural tenant~
R.A. No. 8974, Sections 8, 91 10 and 13 provides compensation of
affected properties
based on fair market value. However! 1and donation is the first
approach to the acquisition of private rand.
Notwithstanding the ruling by the Supreme CotJrt, nanff of the
laws and regulations dearly provide for com pensation at
replacement cost
Income restorationl rehabilitation assistance is avarlabte only
for resettled beneficiarie.s
of the government's socialized housing.
There is no policy for displaced vendors and employees of
micro/small enterprises that have to shut down their business / to
be relocated.
41. The Resettlement Policy Framework {RPF} for the project has
been prepared to address any involuntary land acquisition or
resettiement. The RPfl provided in Annex 10, includes
spedfic provisions to ensure that compensation for affea.ed
lands and other assets \s provided
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at replacement value to aU the Displaced Persons (OPS) induding
those who may lose access to
livelihood due to the project. The RPF is consistent with the
provisions of the World Bank's OP 4,12 and national laws and
regulations;n the Philippines." addresses namely gaps between
the
provisions of the World Bank's Policy on rnvoluntary
Resettlement (OP 4.12) and focal laws and regulations.
42. Entitlements and compensation for the types of losses and DP
categories shall be guided
by the Resettlement Entitlement Matrix shown in the RPF in Annex
10.
43. In general, the provisions of the ESSF, and RPF, would be
applicable in all the sub
projects that result in adverse sodal impactsl permanent and
temporary, due to the acquisition of land and oth@r assets or
causing toss of incomes and livelihood. However, the
requirements
for surveys and documentation would vary depending upon the mode
of acquisl.tion of land by the Concessionaires. Where the land is
obtained through direct negotiations between the
ConceSSionaires and the land owners and the responsibility to
relocate any occupants on the land rests with the land owners, the
Concessionaires should ensure that the compensation and other
assistance provided to affected households is adequate to enable
affected households to
restore their livelihoOd and income levels to prEHiisplacement
lev~ts. tn this respect, Concessionaires should provide a RCR to
lBP to demonstrate that the procedures carried out fOl' the land
acquisition and the compensation provided are in line with the ESSF
and that the
process to acquire land through open market purchase is in
accordance with the proposed protocol specified in the ESSF.
KeySteQi
44. The Sub-Borrowers win be responsible for providing resources
for aU activities related to the resettlement planning and
implementation. Where In a subproject OP 4.12 is triggered, the
Concessionafres wilt carry out necessary studies {census"
inventory of assets, etc.} and pr&pare
necessary documents (ResettJement Action Plan (RAP) or an
Abbreviated Resettlement Action
Plans {ARAP}. The scope and contents of the RAP or an ARAP will
follow the provisions of the World Bank/s OP 4.12 Annex A. Each
RAP, AMP and RCR wilt include detailed cost estimates for
compensation and relocation of OPs dJ5aggregated by category of DPs
and types of impacts and assets lost. Cost estimates wiH make
adequate provisions for contingencies. In case of any cost
over-runs, concerned Concessi.onaire wilt provide additional
funds In a timely manner to ensure that the implementation of
involuntary resettlement activities is completed according to the
schedule. All costs in regards to the acquisition of land and other
assets, compensation and financial assistance to affected
households would be included towards cost of the sub-projects. The
procedures that would be followed to meet the safeguard
requirements are outlined bElow.
ti) Identification of subi'lrojeCts actOrdinJ to selection
criteria
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45. Potential sub-projects are identified by the respective
Concessionaires based on the
overall project objectives and needs assessment. First step in
this respect would be on selection
of sites and getting generaf agreement from the communities in
the adjoining areas before the site is considered as final. In the
past~ many neighborhoods resisted construction of STPs in their
immediate vidnjty. Together with the Not in My Backyard (NIMBY)
syndrome, many have expressed concerns on possible foul odor and
noise. To mitigate these fears, the subproject
proponents have incorporated community tours to operating STPs
as part of the community awareness programs. One of the sub
proponents has also incorporated community facilities in
their design. In consideration of safety and health, basketball
courtsl playgrounds and similar
structures have been made for receiving community acceptance of
the project. At this stage, the Concessionaires are aiso required
to identify the typeSI degree and scale of potential social
impacts of the sub'project. To correctly identify the relevant
social issues and to assess the type and te.vel of information
required during subsequ~nt fie\d \ovestigations, partkuhu attention
win be paid to adverse Impacts to the affected community~ such as
toss of land and other fixed assets and the number of persons
marginally or severely affected and the types of vulnerable groups
affected. Preliminary social and land acquisition assessment wUl
also help in identification of risks and in deciding whether or not
to proceed with th~ project or to consider alternatives to ensure
that the adverSf! impacts are avoided, or minimized \f cannot be
avoided.
During this stage, the sub-project proponent should identify key
stakeholders, locaf NGOs and
OPs. They should then undertake public consultation to: (a)
provide information on the project,
its benefits and impacts; (oJ obtain feedback from the public;
and (c) discuss the pJan for theparticipation process and the rofes
of the community, NGOs and other key stakeholders.
(li) Social Safeguards Screening
46. The Concessionaires are required to carry out screening of
the project to determine
scale of impacts: marginal or severe and the consequent need for
further field investigations,
surveys and documentation necessary in order to meet the
requirements specified in the ESSF.
'n cases where SQcia\ screening results to significant socia'
impact, a socia' assessment win ~
undertaken as part of the Environment Assessment (EA)f as
specified in para 3 of OP 4.01, by the
Sub"Borrower irrespective of whether there is land acquisition
or involuntary settlement.
AdditionaUy, the Concessionaires wilt also screen the
sub-projects for national/provindal laws and regulations regarding
land acquisition and involuntary resettiement.
(no Project Preparation and Documentation
Procedures for land Acquisition
47. land acquiSltion for subprojects will be carried out mainly
through two modes depending upon the ownership of potential sites
for sub"projects.
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o tnvoluntary Resettlement (l.and ACQuisition invoking OP
4.12)
48. Following modes of land acquisition will trigger weJs OP
4.12 and the Concessionaires would be required to conduct necessary
field investigations/surveys in accordance with the provisions of
the RPF for resettlement plan preparation and implementation:
Grant of Right-of-Way (ROW): Where sewer/wastewater
mains/distributary lines pass through any private properties, the
sub~project proponent may seek the Imposition of an Easement of
Right-of-Way (ROW) provided for under the Philippine Civil Code. In
such cases, a ROW easement agreement witt be executed by the
property owner and the sub-project proponent, whereby the former
wilt grant the latter the right to use the
affected portion of the loti as ROW1 but the owner retains
ownership of the said portion of the lot. tn these cases and
depending upon the agreement between the sub-project proponent and
the owner/s of the property, either the easement rights are given
free of any charges or on some payment by the sub-project proponent
to the owner. The payment can be based on the value of the affected
portion of the lot determined by an independent appraiser according
to internationaHy accepted norms. In addition, the
sub-prOject proponent is required to compensate the owner for
any improvements
and/or structures on the land affected by the ROW at replacement
cost. The sub~project
proponent will enter the easement area after the provision of
the run payment for the easement to the property owner. The ROW
easement agreement win be immediately registered with the Registry
of Deeds.
usufruct: The Sub-project Proponent may also acquire a property
through usufruct. The
property owner retains the ownership of the landl while the
sub-project proponent
enjoys the benefit of the use of land. The sub-project proponent
and the property
owner will execute a usufruct agreement. The agreement wiU cover
the rights and
responsibilities of the two parties, including the duration of
the usufruct which should
not be lower than the project fife.
Lease Agreement: The sub~project proponent may also acquire
lands through lease
agreements with the rightful property owner. The sub-project
proponent and the
property owner will execute a Lease Contract. The contract win
cover the rights and responstbiHties of the two parties} incfudins
the duration of the lease which should not
be lower than the project Ufe. Under this agreement, the land
owners continue retain legal ownership of the land parcel. AU fand
transaction should be registered with the
Registry of Deeds fOf annotation in the title of subject
property_
o Expropriation. Although both the MWCl and MWSl are private
corporationsl they are Concessionaires under the MWSS, which is a
public enterprise. Both
the Concessionaires have the option to acquire private
properties for their sub
projects. USing the legal process, eminent domain through MWSS,
However I
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none of the Concessionaires have ever used eminent domain to
acquire p(ivate
properties,
o Open Market Purchase - OP 4.12 is not triggered in this
case.
49. Open Market Purcbase. Under the ongoing Manila Third
Sewerage Project (MTSP) the
project proponent# ManUa Water was completety dependent on the
respective locaJ
Government Units (LGUs) to acquire and make the required land
avai.lab'e for the project. Howeverl the LGUs failed to acquire
land for the project causing severe delays in project
implementation. Similar experience in other projects caused
severe delay.s and even cancellation of SUb~PfOjects. Learning from
the past experiences and to avoid recurrence of similar problems
for this project, the two Concessionaires have decided to acquire
the landI
I themselves. Current procedures consisting of 'open market
purchasel from the land owners,
either through the brokers or in direct negotiations based on
open market purchase basis t are borne out of experiences from
previous projects. However, where open market purchase fail,
other forms of land acquisition will be considered. The
processes and procedures to be followed for voluntary or
involuntary land acquiSltion are presented here in this same
Section (Ill B Social Safeguards).
50. Therefore, negotiated purchase of private assets is the most
preferred mode of land
acquisition by both the Concessionaires. Once a potentiaf land
parcel is identifiedi both the Concessionaires contract
professionaJ appraisers to obtain information on the legal and
tenure
status of the land in question, its market value and other
issues that may be of relevance. Based
00 the findings of the appraisal reports1 the Concessionaires
enter into negotiations with the land owner, Since both the
Concessionaires are private corporations, they enter into
n~otiations with the land'owners either indirectly through a
reat estate agent (as in the case of
Manila Water) or directly (as in the case of MaynUad through
their ROW unitt, Once the
agreement is reachedJ the property owner issues a written permit
to the sub-project proponent
to enter the property and a contract of sale is su~uently
executed between the property
owner and the sub-project proponent. Since the Concessionaires
plan to follow the open
market purchase Using direct negotiations with land owners for
aU future land requirements, a protocol is proposed with the key
objectives as below:
to ensure a transparent and consultative process;
) en Ma~'1lilad's case. ~ process is fdlowed through tMse steps:
1) IMg list ofsites identified based 00 Optioos Anaiysii):, 2)
(Tioritization of candidate sites l'msed oncost, land availability.
and e.'\1ent orresettlement tequired~ 3) initiaf community
consultations to detenuine the NIMBY syndrome;, 4) o\\ner's offer
to sell wtlinmg the {riooand other conditions; 5) buyer's decision
to proceed with contract to sdl; 6) ~tion ofthe safeguards
~1ltner}ts; 7) O\\1lef'S actions prior to sa1e; 8) deed ofabsolute
sale~ 9) land at:quired (title tIaruifer) ~ and 10) constroction
ofSlP tQ start (after Design Build Contractor is sdected),.
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to ensure that compensation paid is at or above prevalent market
prices to enable all
affected land owners to replace their affected assets;
to ensure that aU the affected land owners are better-off due to
the project; and
to document public consultation and negotiation proceedings.
51. The protocol, presented below, will be foUowed by both the
Concessionaires for the Bank funded projects.
Key provisions of the Protocol include:
Inventories of affected land and other fixed assets would be
prepared,n consultation with affected land owners and submit the
same to the Borrower and the Bank;
All land would be free from any disputes on ownership and
encumbrances;
Concessionaires to ensure that the subprojects will in no way
cause adverse impacts on
sources of incomes and liveUhood of adjoining communities;
Negotiations: for direct purchase would be carri~d out in a
transparent manner;
All negotiation proceedings wilt be documented and the final
agreement would be signed by the negotiating parties;
The negotiat.ed amount will be fully paid after the submission
of the required documents; and
Concessionaires will submit completed documents tnduding maps
together with the
subproject proposals to lBP and the World Sank to show the
process used for obtaining
the required land.
52. The types of surveys and field investigations required and
social safeguards documents that would need to be prepared for a
sub-project will depend upon the degree and scale of the
impacts and the method adopted for acquisition of private assets
for the sub~proJect.
Depending upon the degree and scale of impacts and based on the
data coUected through the field investigations, a full RAP or ARAP
will be prepared. The scope and contents of the RAP or an ARAP wifl
be conSistent with the provisions of the World Bank's OP 4.121
Annex A. In cases where the sub~project affects and/or displaces
more than 200 persons a time-bound RAP wUl be prepared in
accordance with the prOVisions of the RPf (Annex 10). In cases
where the jmpacts of
the sub-project are marginal such that less than 200 persons are
affected and/or displaced, or where the impacts are minor,an ARAP
should be prepared. In cases where land has already been acquired,
or is to be acquired voluntarilYJ a due diUgence report or its
equivalent will be
prepared.
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53. Where the land is to be acquired using the power of eminent
domainJlnvoluntary land acquisition), the Sub-Borrower is required
to conduct surveys to coUect information on census of affected
households, inventory Qf Josses andsodo-economic characteristics as
spe.cified during the screening. Prior to undertaking the survey
the project proponent should implement a public
information campaign to describe the project components" types
of impacts, content and schedule for the census and inventory or
other background surveys.
54. Where in a subproject required fand is obtained under open
market purchase through
direct negotiations with the fand owner) as is the current
practice by the MWCI and MWSIJ the SubBorrower wHI hire a
professional appraiser to conduct appraisal, induding valuation, of
the
potential site before any decisjon is taken to proceed with the
negotiations with the land
owner/s, The Sub-Borrower is also required to conduct detailed
survey of the occupants and improvements on the land parcel to
record aU types of potential losses, if any~ due to the
acquisition of the land. As per the agreement between the
SutrBorrower and the land owner, if the occupants on the land and
their affected assets are to be re~ocated, the Sub-Borrower should
ensure that the affected households are provided sufficient support
and financial assistance to enable them to improve, Of' at least
restore their IIveHhood to pre-displacement
level.
55. When negotiations for acquisition of private assets are
carried out 00 a Open market purchase basis, cases wilt be
carefully documented so as to ensure they meet the policy
requirements to be conSidered, such as land free of encumbrances,
no coercion, and ability of
the land owner to say no to any sales without the threat of
eminent domain land acquisition. ESSF provides a protocol to define
objectives, and procedures para 49-51 in this section on
Open Market Purchase).
56. In cases where the sub-project proponent has already
acquired the land needed for the
project and that the occupants of the land acquired have been
relocated as an agreement
between the landowner and the reaJ estate agent of the
Sub-project Proponent, as in the case of The North and South Pasig
Sewerage System STP of Manila Water, a RCR will be prepared.
The content of the Completion Report are: project descriptionl
description/census of the
occupants/project-affected-persons and inventory of thek
affected assets and properties
including crops and trees (if any), compensatlon and other
assistance provided to them, possible
location where the occupants/DPs will be relocated and a
detailed description of how the ~and
was acquired. Documents required are Minutes of the consultation
meetings with the
occupants, Property (tand) Appraisal Report Based on the RCR.
the Borrower wilt conduct Due Diligence (Resettlement Audit) which
will be reviewed by the Bank to check whether the
acquisition of land and other assets is consistent with the
requirements of the ESSF, and will
develop a plan to fill any gaps.
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Method of Valuation of Affected Assets
57. The ESSF {and the RPf) provides for compensation for tand
and other affected assets at
replacement cost. To meet the above objectives, the
Concessionaires wilt fOllow the valuation procedures for different
types of affected assets as below:
Land: The Concessionaires will contract professional appraisers
for valuation of affected land to determine preva.lent market
prices. tn case of topen market purchase' of land for subprojects,
the negotiations for the .Iand would be based on the market
prices
d~termined by the appraisers. Where land is acquired under
eminent domain, the final prices of affected land wUl be at least
equal to or higher than the prevalent market prices to ensure that
the DPs are able to replace affected land at current market
prices.
Structures. The Concessionaires wilt ensure that the
compensation for affected structures is paid at replacement cost
based on current market prices for material and labor. The
compensation for affected structures win be paid without any
depreciation and deductions for salvaged material by the DPs. For
the purpose, the Concessionaires will contract professional
appraisers to conduct market surveys to determine prevalent market
prices for material and labor to arrive at rates for different
types of structures.
Trees and craps. Compensation rates for affected trees provided
by OENR and for affected crops by Department of Agriculture.
Review and dearance of sodal safeguards documents
58. The sub-project proponent wilt submit aU social safeguards
documents (AMP and/or RAPt RCR) to the Borrower, who will review
these documents for compliance with the Social Safeguards
Framework. The Borrower wm approve, refuseapprovat or request
revisions/reformulation of these documents after review and
dearance by the Bank. The
Borrower will submit to the World Bank aU RAPs, ARAPs and RCRs
after it has ens.ured that the
documents meet the requirements of the ESSF before the
subproject is approved for implementation.
tmpJementation - Supervision, Monitoring and Evaluation 59. The
Sub-project proponents wHi supervise and monitor the implementation
of the sodal safeguards in each sub-project to ensure that they are
implemented in accordance with the approved documents and are in
compliance with the ESSF. Periodic progress reports wifl be
prepared and submitted to the Borrower and to the Wor'd Bank on a
regufar basis. The
Borrower, through its Programs Management Department U (PMD-II)
will carry out regular monitoring of safeguards implementation of
the two Concessionaires and consolidates for
submission to the World Bank. In case of non-compUance with the
provisions of the ESSF, the
LBP, in consultation with .the respective subproject proponent
discuss appropriate measures or
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regulations land whether there are any pending claims and legal
issues; and ti) for land
acquisition from the date of the first identification mission by
the Bank or where land acquisition activities are currently
undergoing or recently been comp~eted, the
provisions of the Sank's OP 4,12, and the ESSF will be
applicable.
62. The Social and Environmental CompHance Report (SEeR) will be
prepared by the Sub
Borrower to briefly describe the safeguards aspects of each
retroactively financed sub-project. The .post-review reports and
necessary mitigation measures will be reviewed by the Borrower and
the World Bank. Compliance with the ESSF requirements is a
condition for retroactive financing under the project. For
Maynilad"s investments, resettlement and land acquisition are not
required for Ayata-Alabang STP Rehabilitation because it is an
existing facUity. Retroactive financing is being considered for
this plant where the contract for rehabilitation has already been
awarded (PhP 51.6 million). At appraisal, the Bank will also
confirm its financing for the Plant.
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IV. Sub-project Monitoring and Audit
63. The implementation of the sub-projects would be carried out
by the Concessionaires,
induding actions related to safeguards. LSI> will monitor the
project implementation and submit to the Bank a SEeR on a
semjannual bas.is that will state how the Bank~s policies are being
met and what corrective actions, if any, are being taken. The SECR
woufd be prepared by the Borrower, based on inputs provided by the
Concessionaires. lBP as a Borrower of the Bank toan will oversee
safeguard operations and ensure that the Sub-Borrowers are tn
compliance with the procedures outlined in this ESSf.. In case of
non~comp4iance with the provisions of the ESSF, the LBPI in
consultation with the respective subproject proponent discuss
appropriate measures or remedial actions and implementation
schedule for such measures/actions. Subproject
proponent will be required to implement such measures within the
agreed time~frame at its own cost, failing which LBP would take
additional measures, which could include suspending further
disbursement, untfl the remedial measures are implemented to the
satisfaction of the Borrower.
64. Each Concessionaire will monitor comptiance with the
conditions of the ECC and the EMP and carry out the requisite data
collection during both the pre-construction and
construction phases. The Concessionaires must satisfy this
requirement by submitting a SubBorrowers SEeR, which wit( include
an Environmental Monitoring Plan {EMoP)" and a Self~
Monitoring Report (SMR) on a semi-annuaf frequency ( i.e.,
within January and July of each year). Copies of the submitted
Sub-8orrowers SECRana SMR must be provided in two sets to
LBP for reference and review purposes. lap will be responsible
for monitoring and evaluating the SEeRs and SMRs submitted by the
SutrBorrowers. one set of the SEeR received by the Borrower win be
transmitted to the Bank for further review. The Sub-Borrower's SEeR
win
indude the following: information on the data collection;
discussion on the compliance or non
compliance to the RAP, EMP and ECC; corrective actions, if any;
condusions and recommendations; and photographs, as needed.
65. External Monitoring. In sub-projects w,th significant (200
persons or more} resettlement, including phvsical and economic
displacement of large number of households, the
Sub~Borrower will, in consultation with the Borrower and the
Bank, contract an external monitoring agency Jconsultant group,
with adequate experience in involuntary resetttement to conduct
periodk independent monitoring of resettlement implementation by
the
-4 EMoP defines selt.'ded indicators for ensuring that
mitigation l~ are being impl~ and are effective (e.g.? if there is
a mitigati.ng ~ to control noise durirtg OOllSbliCtioo., the
monitoring plan should include l'IOise ~.. during construction). It
ensures tbe project is oomplying with MtionaI regulations and WB
sar~r~ addresses concerns which may rise during the public
consultation. and identifies flUtllaities respotllribie tor
monitoo.ng including estimated related costs.
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http:monitoo.nghttp:mitigati.ng
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Concessionaires in thesub-project/s. The external monitors wiU
submit their periodic monitoring reports to the Borrowers and a
copy ofits monitoring report to the Bank directly.
66. During the sub~project developmental phase} the Sub-Borrower
shall furnish the SEeR to
lBP for the pre~constructjon and construction stages of the
sub-project. Once construction works are completed, the
Sub-Borrower shall submit a statement of environmental closure
for
the construction phase to the LBP and DENR Environment
Management Bureau.
67. During the sub-project operational phase, the Sub-Borrower
shall continue the submission of SEeRs and start the submission of
the SMR to lBP~ DENR-EMB on a quarterly
basis. The Sub-Borrower wiU also conduct an Annual Third Party
Environmental Performance
Audit and submit the Audit report to the lBP and DENR. The
Sub~Borrowers will pay for the audit report from their own
resources~ The terms of reference for the Audit is provided in
Annex
8. If any irregularities are observed in the third party audit}
the lSP will report its findings to the Sub-Borrower and discuss
measures to be taken,
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V. Public Consultation, Participation and Disclosure
A. JntroductJon
68. lnformation disclosure and public consultation are important
and necessary in sub..
project preparation and implementation. These enable sub-project
affected people and other
stakeholders to partidpate in and contribute to the sub..project
planning and implementation) and thereby help minimize adverse
impacts and maximize subllroject benefits. The t4:vel of pubUc
consultation and the scope of information dissemination win be
commensurate with the environmental category of the sub-project and
the slgnificance of the soda' impacts.
69. The draft ESSF was an object of the public consultation with
key institutional stakeholders on October 51 2010. The ESSf was
presented and discussed in detail during the
consultation} which was attended by stakehofders with
representations from various national and local government agenties
and select non-government institutions. The summary of the
proceedings is presented in Annex 7. Furthermore, copies were
made accessible to the public
through the Department of Environmental and Naturaf Resources,
the Borrower and the Sub
Borrowers through their website. Comments received have been
incorporated.
B. Public Consultation Requirements for Environmental
Safeguards
70. During the EA process for Category A and B sub-projects, as
earfv as possible, the Sub
Borrower. wit! consult with project-affected groups and locaJ
nongovernmental organizations (NGOs) about the project's
environmental aspects and takes their views into account. For
Category A proiects, the Sub~Borrower consu'ts these groups at
least twice: {a) shortly after
environmental screening and before the terms of reference for
the EA are finalized: and (b) after the draft EA report is
prepared. In addition, the Sub-Borrower consults with such
groups
throughout project implementation as necessary to address
EA~related issues that affect them.
These groups may be represented ;n the Multipartite Monitoring
Team that the OENR may
organize to serve as the monitoring arm of the project.
c. Public Consultation and Participation in Social
Safeguards
71. Public consultation and partidpation ensures project
acceptability and fosters good
community relationship between the community, community leaders
and the Sub-project
proponents. MWC' and MWSJ have Zone Managers and Business
Centers to work c10selV with
communities to ensure better reception of their projects. The
two Concessionaires wiU consult and provide relevant information to
the community as early as possible. Information provided
will include: the purpose, nature and scale of the project; and
the duration of the proposed
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activities and of any risks to and potential impacts on the
community. Documentation is the
responsibility of the Concessionaries which wiH provide updates
and feedbacks to the
commuOity, as needed, on the project activity. Publi
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VI. lnstitutionai Arrangements
75. The key institutions having accountability for the
\m~lementat\on of this Framework are:
(I) LBP, as the Borrower; and Ii) MWCI and MWSl as the
SufrSorrowersl who are the sub-project proponents and implementers.
The following GOP institutJons - DENR, LlDA and lGUs * have
regulatory oversight to ensure that the project is compliant with
relevant national laws and
regulations. A brief description of these institutions together
with their roles and
responsibilities tn planning and implementation of sub-projects
is presented in Table 1.
76. 1t is the responsibility of the Sub-Borrowers to carry out
the necessary EA required by
the ESSFJ and to obtain the environmental dearances for each
sub-project before starting the construction, Sound environmental
practices have to be incorporated into the sub..project design and
implementation, and potential negative impacts wm have to be
mttigated to acceptable levels I standards. The Sub*Borrowers are
responsible for the qoafity and accuracy of the information in the
EA document, as weUas the transmtssion of the EA documents to DENR.
Annex 2 provides a list of the environmental safeguards documents
for a typical sanitation and sewerage project, Annex 3 provides a
typical Tenns of Reference for the conduct of an EtA also for a
typical sanitation and sewerage project.
I Table 1. 'nstituttonal Rotes and Responsibilities
SlJb..Projed EA
processIdentlflcatJon/ ~: Screens and scopes sub-projectS In
coordnation Confirms the category (env); informs Screening with
refevant agencies. Determines category of sub* , tht)'Sank.
projects as A. 8 or C.
~: Determines level of impact and mode of land acqu~itlon;
Identifies key stakeholders; unoortakes public consultations.
Project preparationj PrePares and submits to BorrOWer for revlew
the ! ReViews documents for acceptability documentatIon follOWing
documents. j to the Sank
! E,nv:
Cat A:. EtA that lndudes Contingency Plan and EMF>, Cat 8;
EIA arlEE andEMP Cat C: p~ dMa1ptkm and EMP dePfinding on
slle and nature of actMties
.~; AAAJ) and ~rRAP, RCR
r-R-e-v-iew-a-nd~de-a-ra-n-ce--t~:E!1Y:;:::;.:;lt;'Transmft.$
approved Eees and other rel-fWant Exerdses envlronmentel due
diligence
of documentation government permits and clearances to tile
Borrower. prior to appraisal by Reviews documents acooptable to the
BanI
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III
Implementation ~ Monitors project implementation and SU
pervislon, Monitors project compliance as per fCC and EMP/ ciS,
submits SECR ta the Bank OOIl semIMonitoring and lEE annual basis
Evaluation Submits SCR including EMoP iJnd SMR Reviews nv1ronment
Audit Report,
Conducts Annual Third Party Environl'l'lte-ntal performance
Conducts regular monitoring of Audit and EnVironmental Audtt Report
s.afeguards implementation for
submission to the World Bank. Sor;.: Provides msoorces for all
actMties related to the resettlement plaMfng and impl-ementatkm I
Ensures projects are in compliance with the ESSF / ProvkSes
periodic Progress reports. incorporatlng monitoring results. to the
Borrower.
A. Land Bank of the Philippines (LBP)
77, lBP is the Borrower under the MWMP and wUJ act as the
servicing agent of the
Government LSP has demonstrated through its involvement in past
Bank projectss that it has
the capacity to review, monitor and supervise project activities
induding safeguards. lBP will on
lend the loan funds to the two Sub-Borrowers, namely: MWCl and
MWSL As the Borrower, It shall perform oversight function to ensure
that environmental and social safeguards covenants
are complied with, MWCI and MWSJ wIll submit environmental and
social safeguards
documents (te., EA, ECCs, CNes, EMPs, land titlest RAPs, etc.)
to the tBP/s Corporate Banking Department (CBD)-f. CSD"I will
handle the financial management of the project. lSP will make the
funds available for the project.
78, A Project Management Office (PMO) has been created for MWMP,
The PMO will be
responsible for supervising project implementation and complying
wlth the reportorial
requirements of the project. The PMO draws on C8D-11 PMD-U, and
Environmental Program and Management Department (EPMO) staff as wen
as the services of a consulting firm that wm b~ hired by LaP if
needed (to be funded by its own internal funds) to assist the PMO
with: (i) Sub~ project review, evaluation and advisory services;
and (il) Sub-project impfementation management monitoring. The
c:onsultant shail ensure compliance of the Sub-projects with
applicable Phmppine laws and regulations, the Project Operations
Manual and the World Bank
policies.
79. lBP will provide the necessary resources and staff to meet
the environmentar requirements of the framework that will include
tapping the personnel of the EPMD to handle the environmental
compliance concerns of the project and the PMO-II for the social
safeguards
compliance. PMD-H is the Program .Manager for MWMP and wiJI also
be responsible for the
supervision of the Sub-Borrowers1 compliance with the agreed
framework on procurement,
:'> WorJd Bank projt."l.1s being implemented by LBP include
Manila Third Se~e Project and SuppJrt tOr Strdt~~ I.-ocal
Oeve}opn:~lt and Investment Prqjat. Past prQjects include Water
Districts Development Project. Rural f'mnnce Project 1mtul
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~:. ' .;.1'
technical and sodal aspects of the project. The sodal
safegu.ards counterpart staff of the lBP is now actively involved
in the MWMP preparation. One of the functions of the PMQ..II is
managing Official Development Assistance (ODAs) funds. tt is
involved in the safeguards monitoring of the
SSLDIP, where the expertise of LBP on social safeguards
operations was developed and continues to be demonstrated. They wiH
be assisted by a Consultant to fulfitt their monitoring and
reportjng requirements. Trainings will be conducted) with the
asslstance of WB, to further enhance the capacity of lBP to process
the safeguards requirements of the project.
80. The EPMO will review and validate the suffidencv of thf!
submitted environmental safeguards documents in a.ccordance with
the ESSf. The PMO has three units - one of which is the
Environmenta~ Review and Assessment Unit (ERAU), which has enough
personnel that win provide the needed support to meet the
requirements of the World Bank regarding the environmental aspects
of MWMP. The EPMD has the environmental expertise to oversee
the
Sub-Borrower in carrying out the EA and attaining environmentaf
compliance to the conditions and statement of the ECC/EMP. The
Borrower, through the PMD-It as the Program Manager,
submits the environmental documents to World Sank for
concurrenc.e.
81. The social safeguard documents wHf be reviewed by PMD-ff and
ensure comptrance to the conditions and provisions of the ESSF.
Similarly, the Sub-Borrower through the PMO-ll wilt submit the
social safeguard documents to World Bank for review and
approval.
82. As the loans for investment financing are channeled to the
Sub-Borrowers through the LBP, lBP shall require sub-projects to
comply with existing national environmental lawst regulations and
with applicable Bank policies and ENS Guidelines for Sanitation.
The LBP's EPMO
has the environmental expertise to oversee the Sub-Borrower in
carrying out the EA and
attaining environmental compliance to the conditions an~
statement of the ECC/EMP.
Enviro11l'nental safeguards documents may undergo substantive
assessment by the Borrower,
particularly if preSSing environmentally critical issues exist.
The Borrower shall conduct EDD for MWMP sub-projects, as
follows:
Description of both the positive and negative impacts to provide
a balanced risk
assessment it wiH also recognize the DENR as the so1e
governmentaJ organization that is mandated to issue Eees based on
the Philippine EIS law (PO No. 1586). Sub-Borrowers are required to
coordinate with the OENR-Envjronmental Management Bureau (EMS) to
certify through the issuance of an E.CC that the proposed
sub-project/s underwent EA
prior to finalization and implementation of plans.
EA. EMP implementation, monitoring and reporting .shall be
conducted until project completion. Thereafterl the Borrower wifl
continue monitoring of environmental
compliance of the sub..projects consistent with its
environmental policy on credit
delivery, until the toan is fully paid.
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LBP-EPMD is the unit assigned to conduct assessment! monitoring
on the environmental compUance of approved sulrprojects.
B. Manila Water Company, Inc. (Manila Water)
83. The Program Management Department is the overall in-artment
ensures that an facilities and
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projects comply with existing environmental regulations, and
also implements (beyond
compliance' environmental initiatives in support of the
sustainabflity viston of Manila Water.
C. Maynilad Water Services, Inc. (Maynilad)
88. The Environment Management Department {EMO}I h~aded by
Senior Assistant Vice
President, wiU take charge of EAJ monitoring. and compliance
with aU the environmental
requirements of the project assisted by the manager and five
Environmental SpeciaUsts, peos prepare Self Monitoring Reports
(SMRs) and submit these to the EMD where the document is
reviewed and slgned by the Corporate PCO~ the EMD Head. The
document is sent to OENR or
llDA.
89. The EMD consolidates these quarterly SMRs for' submission,
and as an attachment for
the renewal of the discharge permit. It also audits the peos as
part of the surveillance audit in its ISO 9000, ISO 14000, and
OSHAS 1800 Certification. The department ensures that peos are
regularly informed on the latest environmental requirements, and
that they undergo training, as
needed. The EMO conducts EIA and EISwrelated studiesl seoping
studies, and pub/lc
consultations. It a1soappUes for the ECC and secures its
issuance, conducts regu~ar inspections for issuance of all ECCs,
and secures other permits relative to environmental
requirements.
90. The socia' safeguard issues win be handled by the EMD unit.
The Right of Way (ROW) Unit is responsible in locatingJidenttfying
laod needed for the Construction of project structures
and facilities. Once a potentia' land area has been located, the
Wastewater Management Division team conducts community consultation
to introduce the project to the community and
gather their reactions. If the community accepts the concept of
the project, the potential land
area is Usted and the ROW unit undertakes further investigation
of the potentjalland and its
landowner. Land purchase negotiations is also undertaken by the
ROW unit.
91. MWSI wHt make funds available to implement the ESSF for the
duration of the project for the fof lowing 3 activities:
preparation of EIA, EMP and necessary instruments related to
Land
Acquisition and Resettlement of Displaced persons; conduct of
public consultation; and securing
necessary permits; trainIng; EM? imptementat\oo and monitoring,
and securing an
Environmental Management System; and Environmental Hea~th and
Safety Certification.
O. Department of Environment and Natural Resources (DENR) and
laguna Lake Development Authority (LlDA)
92. The DENR is the primary national government agency tasked to
protect, conserve and manage the country's environment and natura!
resources. It is responsible for setting policies,
plans and programs and regulating the development and use of the
countr(s natural resources
to ensure compliance to national and international environmental
rules, regulations, and
guidelines. It enforces various environmental rules and
regulations relevant to the construction
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and operation of various development projects induding
sanitation and