Sunday, April 24, 2011

Seminar on Biodigesters & Carbon Finance

I attended the Seminar on Biodigesters and Carbon Finance at the Visitor’s Center, Ninoy Aquino Park in Quezon City last August 18, 2009. The seminar was organized by the League of Cities of the Philippines (LCP) in cooperation with the DENR.

The seminar aimed to educate representatives from different LGUs on the potential of biodigesters in managing biodegradable wastes from markets and slaughterhouses thru methane capture for power/heat generation or as a cheap alternative to using LPGs for cooking. The LCP also informed the attendees that they will provide technical and networking assistance to interested LGUs for project planning in the hope of aggregating all projects that will prosper from the seminar into one CDM project to facilitate the whole CDM application process.

In line with this goal, questionnaires for markets and slaughterhouses were distributed to each LGU so that the LCP may estimate the budgetary and technical requirements that each LGU should meet in pursuing its own biodigester project. The undersigned is now awaiting the accomplished questionnaire from the QC MDAD.

Biogas and Biodigesters

Mr. Paul Puthenpurekal, president of Solutions Using Renewable Energy Inc. (SURE) – a company engaged in providing renewable energy solutions, gave presentations on the importance of harnessing biogas, the opportunities of biodigester technology and examples of some of their biodigester projects in the country.

SURE offers the full range of developing, consulting, engineering, procurement, construction, start-up, operation and maintenance services to renewable energy projects in the fields of solar, hydro, wind, and biogas.

Biogas, which is mainly methane, is naturally produced from the digestion of organic materials in an oxygen-free environment. It is interesting to note that human manure has the highest gas yield among other sources of animal manure – ranging from 0.3-0.5 m3/kg/day, of which 69-74% is methane. This is the reason why there have been promising developments in combined septage/wastewater treatment & biodigester systems.

SURE has been in operation since 2004 and has constructed a 0.5 MW waste to energy project in Bantayan Island, Cebu, a biogas-slaughterhouse-wastewater treatment facility at the Asia Pacific Meat Processing Development Center, which is a UN-assisted project, and several small scale biogas digesters for pig farms and poultries. They also have ongoing projects in Sumilao, Bukidnon (1.2 MW) and in Ben Cat, Vietnam – their largest so far with a 2.5 MW capacity.

The company usually undertakes projects under a Build-Operate-Transfer scheme. The reason is that under a BOT scheme, potential CDM projects are given a larger project development timeframe of about 5-7 years, whereas otherwise, they would only be accorded 1 year to complete the project for it to be registered under CDM.

The company has extensive experience in constructing dome-type biodigesters. This type of biodigester does not require any mechanical device for stirring the accumulating substrate and ensuring its flow. It is designed in such a way that as gas start to build-up inside the dome, it pushes the substrate against its round walls thus creating flow.

Aside from biogas, biodigester systems also produce solid sludge as residue. This, however, has been tested to be 99.99% pathogen free for as long as the right level of temperature, retention time (minimum of 15 days), and anaerobic conditions are maintained. The sludge may be directly land-applied as organic fertilizer after reaching the desired moisture content.

From the experience of SURE, markets, restaurants and slaughterhouses are the best sites for small scale digesters in urban areas since these are large generators of wastes where a fairly acceptable level of compliance to waste segregation may be reached by integrating it as part of their business operations. Collection is also not as cumbersome as community-wide household collection.

Carbon Finance

The Hon. Mary Ann Lucille Sering, Undersecretary of the DENR, discussed the Clean Development Mechanism (CDM) as the primary market-based instrument to facilitate the compliance of Annex 1 countries (developed countries signatory to KP) to their emissions reduction targets under the Kyoto Protocol (KP). She discussed the whole CDM registration process, the actors involved in each step of the process and the market for CERs (Certified Emission Reduction Units).

She emphasized that while the Philippines rank 7th worldwide (as of Nov. 2008) in terms of the total number of registered CDM projects, the country actually contributed only 1.66% (or 20) to the total of 1,207 CDM projects – 54% of which were registered from India and China. And out of the 20 projects registered in the Philippines, only two had started to earn carbon credits – the Quezon City Controlled Disposal Facility Biogas Emission Reduction Project and the NorthWind Bangui Bay Project in Ilocos Norte.

She mentioned that the primary barrier to the country’s participation in CDM was the people’s lack of awareness on the opportunities it present. She also stressed that the “Additionality” requirement for potential CDM projects leaves much gray area in its interpretation and enforcement that it delays projects already in the pipeline. The requirement states that the CDM status will be given only to those projects which cannot be implemented without it (CDM status), implying that those which can be carried out in the course of regular business (Business-As-Usual) are disqualified.

The market for carbon credits, according to her, will gain more demand considering that the first commitment period (2008-2012) of Annex 1 countries to meet their emissions reduction target is nearing its end. Experts speculate that carbon credits may average at a price of €29.00 in 2009-2012. Carbon credits sell for €15.62 as of end of December 2008.

Aside from the CDM, which ultimately serves the interest of Annex 1 countries in mitigating their emissions, Usec. Sering also touched on what she said was a more relevant issue to non-Annex 1 countries such as the Philippines – climate change adaptation. She was part of the Philippine delegation to the international climate talks led by the UN Framework Convention on Climate Change (UNFCCC) at Bonn, Germany last August to negotiate our country’s concerns and demands in the drafting of an international agreement that would hopefully succeed the Kyoto Protocol at the Copenhagen Climate Conference in December of 2009.

She said they negotiated for an increased Adaptation Fund, which is currently pegged at only 2% of CERs. She said the amount they are negotiating does not even reach 2% of the military funds of the Annex 1 countries. She stressed that vulnerable nations, such as the Philippines, should be compensated for the economic costs of the ill-effects of global warming primarily caused by anthropogenic greenhouse gas emissions of developed countries, even if it literally means paying a homeowner for the cost of transferring his house to a higher location to avoid rising sea levels.

Following are the PowerPoint Presentations used during the seminar.

Climate Change Impacts
Climate Change Impacts

Download here.

Biogas: Waste to Wealth

Biogas: from Waste to Wealth

Download here.

Clean Development Mechanism (CDM) Model for Waste-to-Energy

Clean Development Mechanism (CDM) Model for Waste-to-Energy Projects

Download here.

CDM Overview

Clean Development Mechanism (CDM) Overview

Download here.

Questionnaire for Potential Biodigester Projects

Survey Questionnaire on Potential Biodigester Projects under the Clean Development Mechanism (CDM) Program ...

Download here.


Friday, November 27, 2009

Lagon and Vista Group Solid & Liquid Waste Management Technology Demonstration

Last Nov. 24, 2009, I attended a demonstration of the Solid and Liquid Waste Management Technology "invented" by the Lagon and Vista Group. A formal launching was held at the executive lounge of the DOST and was attended by Dr. Nuna Almanzor, Director of DOST-ITDI, Comm. Leonarda N. Camacho, Commissioner of UNESCO, Mr. Norberto Lagon, President of the Lagon and Vista Group, Dr. Christopher Silverio, Chief Science Research Specialist of DOST-ITDI, Eng. Romeo Cabacang, Cheif - Microbiology and Genetics Division of DOST-ITDI and representatives from LGUs, NGOs, etc.

Above is Comm. Leonarda Camacho of UNESCO urging the participants to segregate and recycle. She, herself, was, if I'm not mistaken, one of those who founded LINIS GANDA - a cooperative of junkshops in Metro Manila. She even did a little plug and invited everyone to contact her if they wanted to sell recyclables.

If you think junkshop business is for the poor and desperate, you may be in for a surprise. Some of these junkshops earn in the millions per month according to her. And how would they not? They buy your scrap probably for just a tenth of how much they could sell it. You just have to bear the smell and the filth.

When she finished her speech, she walked by my direction and actually asked me in a kind of accusing tone, pointing finger at my face - "O kayo nagsesegregate ba kayo?". Startled, I just nodded my head in a quick knee-jerk like reaction. Then I kinda regretted not replying back. Of course, I do it at home. I even practice vermicomposting. How dare she.

Oh, I almost forgot. A funny incident happened when Comm. Camacho kept on referring to Dr. Nuna Almanzor as the DOST Secretary Hon. Estrella Alabastro. She kept on praising the good secretary of her integrity and competence as cabinet member. Even when they are sitted beside each other the good commissioner kept on refering to her as the DOST Secretary even when Dr. Almanzor herself told her she's mistaking her for Nina (Hon. Estrella Alabastro's nickname) and that she's pleased but quite embarrassed of her on-the-spot promotion!

*** Yeah a separate paragraph for lunch, to please our (soon) advertisers :) ***

Buffet lunch was provided by Ibarra's Catering. I knew Ibarra's was familiar. I remember calling them up when we're scouting for caterers for one of our events. They have a branches in Timog Avenue, Quezon Avenue and Ermita Manila. Too bad I failed to get pictures of the food. Will try to be more vigilant about getting food pictures on later seminars I will attend.

Ribbon Cutting

Anyway after lunch, off we went to the Environment Division Building of the DOST-ITDI. There we saw them preparing for the ribbon cutting.

That's Dr. Almanzor (Not Alabastro) on Comm. Camacho's right. On her left is the "inventor" Mr. Lagon. Eng. Cabacang, 1st from left, and Dr. Silverio, 2nd from left.

The System

The system is conveyor-linked and facilitates manual and automated sorting of waste. It also processes biodegradable wastes thru a biodigester and treats the wastewater for continued water reuse within the system.

Garbage is fed into a hopper. It is carried by the first conveyor belt where paper components are picked-out manually by the eco-aides. The garbage then enters a washing component to remove debris and mitigate foul odor. Water is continuously supplied from its own closed-loop waste water treatment facility which uses a three-layer filtration system composed of gravel, pebbles and activated carbon.

After washing, the garbage is then carried by a second conveyor belt where plastics, and other recyclable materials are manually sorted from the residual and biodegradable wastes. By design, a strong magnet is supposed to be installed at this stage to automatically separate metal components. In the demonstration unit, however, said magnet was missing. The separated recyclable and biodegradable wastes are then stored at separate bins.

The collected biodegradable wastes are then fed into a biodigester developed by the DOST-ITDI. A bare room can be found beside the facility which demonstrates the uses of the generated biogas – stove top cooking and running electrical appliances. Electricity is produced from a 13 horsepower biogas and LPG converted generator.

Although the technology boasts of operations “without the use of dumping areas”, it is clear that since the system lacks any provision for recycling residual wastes, final disposal in a landfill would still be required.

The Bottom Line

The technology clearly is not an innovation. Similar facilities have been established in other LGUs in previous years. One example that quickly comes to mind is the one located in Manggahan, Pasig. Unfortunately the said facility was shut down due to odor problems and manageability issues.

Although the whole system is still noteworthy in the sense that it attempted to pursue an integrated approach to waste management, it tends to complicate (in a very costly way) the simple task of waste segregation which in fact should be carried out in the household level. One would be better off leaving the recovery of recyclables in the household level and managing only biodegradable wastes by having the biodigester, thus saving Php 600,000 in conveyer belt apparatus.

Another serious concern is the rate at which the process is completed. In the demonstration, it already took the eco-aides almost 30 minutes, stopping the conveyer belt in several occasions, just to completely sort out a drum of garbage, which even seemed a bit too “sanitized” in form – visibly composed only of vegetable scraps and plastics. I think the use of conveyors would be optimized and be rendered cost-efficient only in large scale applications where you transport the garbage in longer distances, allowing more laborers to sort the waste at a faster rate, thereby increasing the system's overall processing capacity.


Friday, November 20, 2009

Waste to Carbon Char to Electricity

Yes imagine that. Electricity from waste. In Quezon City, we are already extracting methane from our controlled disposal facility. This methane is currently being used to run a 250kw generator, enough to power the facility, its perimeter lighting, and a free public clothes-ironing facility. The next phase of the project is to install a 1 MW capacity generator and sell surplus electricity to the main power grid.

But this proposal which we received from Nasmech Technology Sdn Bhd of Malaysia is quite different. I'm not sure if I'm allowed to share this information with you, but I guess it would be the benefit of all if more people around the world learn about this technology. It is not groundbreaking in anyway. We have previously received other proposals invovling other technologies such as pyrolysis, which can derive fuel from waste or KDV (german for catalytic depolymerization process, not exactly sure of the company but will blog about it some other time) which can derive diesel from waste and a local company which produces "green charcoal" from waste.

The difference is that Nasmech uses Carbonization technology which converts all organic
Activated carbon both in powder and block formImage via Wikipedia
waste into carbon char which can be used to run a power plant in a similar way that coal-fired power plants are operated. The difference is that carbon char is a cleaner fuel that will not produce dioxins and other toxins (that is the claim). How is that possible?

Let's begin by discussing the carbonization process. I am not an engineer so I'll explain this in layman terms, the way I understood it. First of all, organic materials are composed of 4 basic elements: C-H-O-N. That is Carbon, Hydrogen, Oxygan and Nitrogen. Polycarbons or plastics are also organic (they are derived from petroleum) but have extra elements of Sulfur and Chlorine.

As Joey (sorry, I forgot the full name of the president - or was he the COO? will update once I get my facts correct, hehe.) puts it, the process is like roasting. Waste is placed inside a slow-rotating drum.Waste need not be sorted except of course for the bulky ones which can be easily separated like construction debris. Other inorganic waste like metals and glass would remain unchanged after the carbonization process so it will be easier to sort them out later.The drum is placed in a chamber where dry heat is pumped. Heat reaches at about 600 degrees celsius but heating is done incrementally, in stages.

First is the drying stage where moisture is evaporated. Then the pre-carbonization stage, where heat is increased to remove sulphur. Then, the carbonization stage, where heat is at its peak and waste is broken down into basic carbon. Joey explains that each type of material has its sort of "carbonization point", like a melting point, but instead of melting, the H-O-N bonds are destroyed leaving only Carbon. The "carbonization point" varies per type of material that is why heating is increased incrementally. After that is the cooling stage where the temperature is taken down slowly so as not to introduce oxygen that might cause the char to burn and instead leave ashes.

Carbonization is not burning or incinerating because the process is done without the presence of oxygen (<1%). Because of the heating, most harmful compounds are eliminated. There is also an air pollution control chamber where all emissions are directed and properly treated. A scrubber is introduced at the end of the air pollution control process flow thereby keeping the levels of dioxin, furan, NOx, SOx, CO, dust particles and even odour way below the regulartory standards. Verified results of emission tests are also attached in the presentation.

That's the technology, which they say was started in Japan but perfected or at least improved by Nasmech. They actually have 4 pending patents for the technology.


I'm pretty stoked that they have not seriously considered using the resulting char as their main source of fuel. If you're talking about "cradle-to-cradle" as oppose to "cradle-to-grave" then you must ensure that you are operating in a closed-loop system wherein you operate independently from external fuel sources. They say that the technology may be powered by LPG, bunker fuel or other types of fuel and that the resulting carbon char is of high-quality and I'm assuming that they're telling us that its actually more expensive to use the carbon char because it can be sold at a higher price than what they will pay for the other types of fuel. Is it really that more expensive? Remember, we are recovering it from waste. And besides, if you yourself do not use it, how else could we expect other people to buy it?

They should learn from MAPECON Green Charcoal Philippines, Inc. (will blog about them some other time). The concept of their end product is the same. They produce "green charcoal" which may be used as fuel. (I hope I could discuss their process; they use an enzyme additive which transforms shredded biodegradable matter into "green charcoal".) They are still studying the feasibility of using "green charcoal" to fuel power plants but are already using their products for their own consumption. They are a leading exporter of activated carbon to Africa. Thanks to their "green charcoal" which now replaced the more expensive bunker fuel in their plant. Anyway, more about them in a separate blog soon.

The plan is for Nasmech to also set up a power plant that will use the carbon char. I just hope that will all the incentives from the Clean Development Mechanism and the Philippine Renewable Energy Act, the undertaking will prove to be a financially viable one. They are now studying the ROI and looking for potential investors to partner with us.


So far the only projections they gave us is that a 200 ton capacity system (that's daily processing capacity) may generate 40 tons of carbon char daily (that's 20% recovery). The char would have 6000 kcal/kg energy potential and the power plant would have 2.3 MW capacity (would have to verify my data, I'm just writing on top of my head) and the investment (excluding civil works) would stand at about $ 23 M (US) for the 200 ton plant and would require land area of 3 hectares.


They are hoping that they could come up with an ROI of less than 7 years to attract investors. Me? I hope that given a proper cost-benefit analysis which considers its environmental benefits and multipliers, we could convince the City Mayor to share with the cost of investment.

And also, I hope that we could make those who would oppose the project, saying that it would discourage people from segregating their waste, to understand that the project still adheres to the principle of waste recovery. And let's be realistic, it's almost been 10 years since the Philippine Ecological Solid Waste Management Act was passed and yet until now compliance to waste segregation is disappointingly low. Yes, the technology offers a quick-fix solution, but I think what is important is that it works, its easier to implement and that it still promotes waste recovery.


Tuesday, November 17, 2009

Philippine National Conference on Environment & Natural Resources (ENR) Financing

The Philippine National Conference on Environment & Natural Resources Financing was held at the Crowne Plaza Hotel in Quezon City from Sept. 23-24, 2009. The conference was hosted by the United Stated Agency for International Development (USAID) thru its Philippine Environmental Governance Project (EcoGov).

You will find below the PowerPoint presentations used in the seminar. I wrote a short overview of the discussion per topic, but as you will find out, towards the end, it becomes quite a drag so I'm leaving it up to you to read the presentations.

The seminar was indeed very informative. Though I'm already familiar with some market-based instruments for financing ENRs, its a welcome surprise to learn about LGUCC the MDFO and other local financing institutions with an environmentalist agenda. But for some who are hoping to receive dole outs, grants and donations, it might be a bit of a let down. I think it was only NEDA who spoke about grants and it was only in the form of technical assistance. But who needs grants when it is a proven fact that ENR projects can indeed pay for itself. And I'm not just talking about monetizing environmental benefits. We should all learn about ENR projects falling under the realm of social businesses.

The seminar aimed to provide the venue for creating further awareness on ENR Financing and strengthening the ability of LGUs to generate and access financing for their ENR projects.

The seminar was pursued following the results of as survey conducted by the DENR on the level of knowledge and experience of LGUs with respect to the various mechanisms for financing ENR projects. The survey revealed that most LGUs (92% of the 107 LGUs surveyed) are heavily dependent on public sector financing (IRA, CDF, Public Bank Loan) and only a few (23%) has had access to market-based instruments which were in the form of private sector initiatives (CSR and EMS).

1 Overview - Atty Analiza Teh
Download here.

National Economic Development Agency (NEDA)

Ms. Shiela Marie Encabo, OIC-Director of the NEDA, discussed the Green Philippines Component of the Medium Term Development Plan (Forest Management, Pollution and Hazard Control, Energy Independence, Protected Area and Wildlife Management) which provides the policy framework for ENR projects in the country. She also gave an overview of different forms of Official Development Assistance (ODA) extended by bilateral and multilateral development agencies with present ties with the country. She also expounded on the existing ODA terms and conditions, and provided an inventory of available loans and grants for ENR projects.

2 NEDA - Shiela Marie Encabo
Download here.

Municipal Development Fund Office (MDFO)

Ms. Helena Habulan, Executive Director of the MDFO, introduced the Municipal Development Fund (MDF) of the Department of Finance. This is a special revolving fund exclusively created for re-lending to LGUs. She discussed different financing facilities available from the fund, which LGUs may access to finance ENR projects. Below are some examples.

  1. The Millennium Development Goals Fund (MDGF) is available to 4th to 6th class municipalities for financing ENR projects in line with the 7th MDG of ensuring environmental sustainability. MDGF offers 100% loan financing payable up to 15 years with 7.5% annual interest.
  2. The Municipal Development Fund may be availed by any LGU for infrastructure and equipment financing of environmental projects related to solid waste management, land conservation, air quality management, and water management. It offers 100% loan financing payable up to 15 years with 9% annual interest.
3 MDFO - Helena Habulan
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Public-Private Infrastructure Advisory Facility (PPIAF)

The PPIAF is a global multi-donor technical assistance facility managed by the World Bank, which aims to develop an enabling environment for private sector participation in infrastructure development. According to its representative Hope Gerochi, the organization offers technical assistance grants averaging $210,000 per project thru its Sub-National Technical Assistance Program which aims to help Sub-Nationals (LGUs, state-owned enterprises, utilities, etc.) get access to market-based finance without sovereign guarantees.

4 PPIAF - Hope Gerochi
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LGU Guarantee Corporation (LGUGC)

The LGUGC is the first private guarantee corporation which offers guarantees on loans made by LGUs to private financial institutions. It was created by members of the Bankers Association of the Philippines initially because of their desire to finance rural development in the provinces and to act as the private sector counterpart of government financial institutions.

According to Lydia N. Orial, President/CEO of the LGUGC, LGUs were once regarded by private financial institutions as high-risk borrowers, mainly because of their transitory political nature. Hence, LGUs have very limited relationships with private banks. But because of the assistance of LGUGC, their credit ratings improved and have enjoyed more access to the private financial market. In fact, to date, a total of Php 4 B worth of projects of LGUs was guaranteed by the LGUGC.

LGUGC also assists LGUs in issuing municipal bonds to its constituents as a means to finance projects. Municipal bonds are any interest-bearing or discounted government security that obligates the issuer (LGU) to pay the bondholder (LGU constituents as investors) a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity.

Issuance of municipal bonds encourages transparency in LGU project implementation since accounting books related to the project will necessarily be opened for investor information. It also results to the constituents having a greater stake through the bond purchase, and encourages ring fencing of an LGU enterprise or project making it possible for the LGU to determine whether or not it is earning from the enterprise or project. Ring fencing in this context is the act of financially separating an LGU enterprise or project from the normal accounting of the whole LGU to focus on the cost and revenues incurred by the LGU from the particular enterprise or project.

5 LGUCC - Lydia Orial
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ECC International

ECC International is a leading training and business consulting firm providing pragmatic yet dynamic solutions to organizations in Asia. Its mission is to help companies achieve performance excellence by unleashing their full potential through enduring, business-oriented advisory services.

According to Karthik Subburaman, representative of the ECCI Group, investors nowadays are as interested in the environmental benefits of projects as they are with the economic. Aside from the monetary returns, the following are some key considerations which enhance the attractiveness of projects to investors: 1) conservation of biodiversity; 2) sustainable management of natural resources; and 3) fundamental principles and rights of employment, health, safety and security of local communities. This is summarized as the triple bottom line of “people, planet and profit”, which captures the expanded spectrum of values and criteria of the economic, ecological and social.

Mr. Subburaman introduced the concept of Market-Based Instruments (MBIs) as policy instruments that use price or other economic variables to provide incentives for organizations to improve performance. Several MBIs are already in place that encourages environmental sustainability. Among these are carbon trading, voluntary certification systems (e.g. ISO certification for Environmental Management Systems), corporate social responsibility (CSR), green procurement policies, etc.

One project that the group undertook in the country is the GreenPhilippines Project. The project assisted 20 private companies in adopting energy efficiency measures. The results of the project were very encouraging. One company, for example, realized savings of about Php 1 M per month.

6 ECCI - Karthik Subbaraman
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Private Sector Financing

Private sector financing is another financing option explored in the seminar. Mr. Alexander Gilles, a chartered financial analyst, talked about investors in the private sector and how they make decisions. According to him, there are only four questions that need to be considered to understand how investors decide which projects to invest in:

  1. Is the project bankable?
  2. Is investment money available?
  3. Is the investor willing and able to invest?
  4. Is the proponent able to communicate?
Mr. Gilles stressed that aside from highlighting the environmental benefits of ENR projects, proponents should also highlight the business angle of the project. Proponents should show that it will achieve sustainability and assure the investor that mitigating measures are carefully considered to prepare for all perceive risks.

7 Investors in the Private Sector - Alexander Gilles
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Accessing Funds from E.R. 1-94

Energy Regulations No. 1-94 (ER 1-94) is the IRR of Section 5(i) of R.A. 7638 otherwise known as the DOE Act of 1992. This mandates the provision of direct benefits to the province, city or municipality, and community that hosts energy resources and/or energy-generating facilities.

According to Mr. Leo S. Carias of the Rural Electrification Administration and Management Division of the Electric Power Industry Management Bureau of the Department of Energy, ER 1-94 requires all generation companies and/or the energy resource developers to set aside one centavo per kilowatt hour (P0.01/kWh) of their total electricity sales as financial benefits to host communities.

Three types of benefit funds compose the ER 1-94 fund. These are the Electrification Fund (EF) (50%), Development and Livelihood Fund (DLF) (25%) and Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF) (25%). The latter may be used to fund ENR projects.

As of July 2009, 845 projects, worth a combined value of Php 1.02 B, have been funded thru the RWMHEEF. Examples of these projects include the acquisition of waste management equipment and the construction of sanitary landfills, MRFs, and wastewater treatment facilities.

8 Accessing Funds From ER 1-94 - Leo Carias
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Opportunities from the Operations of the National Power Corporation (NPC)

To give the participants an idea on how the ER 1-94 Fund applies to a power generation company, Mr. Emmanuel Umali, manager of the Watershed Management Department of the NPC, discussed how their Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF) is managed and gave an overview of some of the environmental services that their company provide such as watershed rehabilitation and management and biodiversity conservation.

According to him, any proponent who wishes to implement a project which is in line with the objectives of the RWMHEEF may submit a project proposal to the corporation, provided that the project will benefit communities within the vested areas of the corporation. Proposed projects will be subject to the approval of the Energy Regulatory Commission (ERC) and the Power Sector Assets and Liabilities Management Corporation (PSALM).

The RWMHEEF accumulates from the Environment Charges that is derived as a small percentage (0.25%) of the corporation’s total electricity sales. To date, almost Php 340 M worth of ENR projects was financed thru the fund and another Php 428 M worth is pending approval.

9 Investment & Financing Mechanisms in Environment Services
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Cost Recovery Mechanism & Ring Fencing of LGU Accounts – Jagna SWM System

Jagna is a 3rd class municipality in the Province of Bohol. Hon. Municipal Councilor Senen Lloren talked about how they were able to implement an ecological SWM system thru cost recovery mechanism and ring fencing.

Cost recovery mechanisms instituted in the municipality include requiring all residents to buy official trash bags bearing the residents’ name. These bags are color-coordinated specific to a type of waste. Thru this system, it is easier to determine which households fail to segregate their wastes. In addition, it serves as a form of disincentive to households that dispose a lot of waste since they would have to purchase more bags.

They also have a centralized MRF where composting and recycling is carried-out. The unique feature which they have established to recover the cost of composting is to charge households with a “Composting Fee” of Php 5.00 for every sack of compostables collected at the household.

Apart from these other sources of cost recovery comes from the sale of compost and recyclables, garbage fees imposed to both households and businesses, and the transport permits (for dump trucks) issued by the municipality. Thru ring fencing, they were able to determine their level of cost recovery in solid waste management which stood at 68.6%.

10 Cost Recovery Mechanism and Ring Fencing LGU Accounts - S
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Payment for Ecosystem Services (PES) in Tropical Forests

Ecosystem Services (ES) refer to the benefits derived from the functioning of ecosystems. These include carbon sinks, watershed, biodiversity and eco-tourism. In the past, these benefits have not been accorded economic value as modern societies would normally do for any form of service in the market. Beneficiaries do not pay for ES and protectors/providers of ES do not get compensated.

This form of injustice is hoped to be addressed by the concept of Payment for Ecosystem Services (PES). PES establishes an economic value for ES. As for any market, the value arises from the relationship of buyers and sellers. Buyers are the beneficiaries of ES who want to secure the continued provision of ES from those who protect it (sellers). An example is a hydropower plant which benefits from watershed protection activities of upland communities. Without the PES, upland communities would have no incentive to protect watersheds which might eventually lead to a decrease in water levels in the dam, thereby compromising the operations of the plant.

Ms. Emma Abasolo from the International Fund for Agricultural Development talked about her experience with the RUPES Project (Rewarding Upland Poor for Environmental Services). They lobbied for the compensation of the upland poor in Bakun, Benguet and Kalahan, Nueva Viscaya thru the PES for the latter’s role in watershed protection and carbon sequestration.

11 Payment for Ecosystems Services in Tropical Forests - Emm
Download here.
View/Download Video here.

Funding the Management of Protected Areas: The Integrated Protected Area Fund (IPAF)

Ms. Theresa Mundita Lim talked about the IPAF, examples of its uses and the status of collection and disbursement.

12 Implementing and Accessing IPAF - Thess Blastique
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Sewerage & Wastewater Treatment Plant Project : The Puerto Galera Experience

I've never been to Puerto Galera. But I know it's one of the top Philippine tourist destinations for beach-loving creatures and diving enthusiasts. A wastewater treatment plant for LGUs dependent on marine tourism should be a no brainer. Puerto Galera shares its experience in setting-up its own thru a public-private partnership. I just wish they have also explored its CDM potential thru biogas capture to enhance the sustainability of the project.

13 Public - Private Partnership Sewerage Treatment Facilitie
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Carbon Trading and Finance

This is quite a familiar presentation. I have seen this at least three times in other seminars. Ms. Joy Goco of the DENR-EMB (the Philippine Designated National Authority for CDM) talked about Climate Change, Clean Development Mechanism and the Philippine experience in CDM.

14 Carbon Trading & Finance - Joy Goco
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Project Proposals

The second day of the seminar saw the presentation of project proposals from different LGUs. The objective is to have a panel of experts critique their proposals and give recommendations on how to better package the proposals by emphasizing the feasibility and financial viability and sustainability of the projects.

Below is the guide template in preparing the project proposals.

Template Questions for Project Proposals
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Reforestation of Critical Watershed in Sebaste, Panay, Philippines

The project proposal was presented by Hon. Mayor Jose Christopher A. Varona of Sebaste.

Reforestation of Critical Watershed in Sebaste, Panay, Philippines
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Establishing a Vermicomposting Program in Gonzaga, Cagayan, Philippines

The project proposal was presented by Mr. Joshua Wayland, a US Peace Corps Volunteer, and Bennyfred G. Sandi, MENRO of Gonzaga.

Establishing a Vermicomposting Program in Gonzaga, Cagayan
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Agro-Forestry Project in Libmanan, Camarines Sur, Philippines

Agro-Forestry Project in Libmanan, Camarines Sur, Philippines
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Rehabilitation and Protection of the River Bank of Pulupandan, Negros Occidental, Philippines

The project proposal was presented by Hon. Magdaleno M. Peña., Municipal Mayor, and Federico F. Infante Jr., Municipal Administrator.

Rehabilitation and Protection of the River Bank of Pulupandan, Negros Occidental, Philippines
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