general business environment environment and natural disasters
TRANSCRIPT
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Environment and Natural Disasters
For decades the Philippine environment has been under assault from a fast-growing population
and practices that have degraded the countrys air, land, and water. Despite laws requiring trees tobe replanted, forests were clear cut and denuded areas abandoned, damaging watersheds and silting
farmland and estuaries. Coral reefs were destroyed by dynamite blasting and the use of cyanide
to stun tropical sh. Mangroves and their sh spawning shallow waters were converted to prawn
ponds. Over half the countrys population lives in urban areas, where the air is often polluted and
a silent-killer, and solid waste management and sanitation are highly inadequate. The percentage
of the total population living in cities in the Philippines has long been higher than in other Asian
countries (see Figure 157).
Figure 157: Proportion of urban population, selected Asian countries, 1950-2010F
Fortunately, there has been growing recognition of the problems such bad habits have created
and an increasing desire to introduce sound environmental practices. More coastal communitiesunderstand that preservation of marine natural resources is critical for tourism and shing. The
costs of polluted air in terms of death, disability, and medical care have become better understood.
Logging continues, but at much reduced levels, as less forest remains, and enforcement of restrictions
on illegal logging have increased. Several landmark laws have been passed: the Ecological Solid
Waste Management Act, the Clean Air Act, and the Clean Water Act. These laws are, however,
under-funded and poorly implemented.
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Environmental degradation harms the nations investment climate when it results in unhealthy
living conditions, which deter foreign residents and visitors. The most adverse effects may be
on tourism, when marine and mountain environments are degraded, making tourist destinations
unattractive and sometimes unhealthy. Financial and economic cost of pollution is estimated atabout US$ 8.6 billion annually.
Table 65: Estimated cost of air and water pollution in the Philippines
Air pollution1,3 2.28 105.38 2007 119.0 2.5 1.55 WB-CEA-2009
Water pollution 1.24 67.00 2003 94.2 2.0 1.23 WB-PEM 2003
Water supply, sanitation
and hygiene3.49 167.73 193.5 4.1 2.52
Health1 2.77 127.90 2007 144.4 3.0 1.88 WB-CEA-2009
Water in terms of usage2 0.65 35.56 2005 43.8 0.9 0.57 WSP, 2008
Other welfare impacts2 0.04 2.07 2005 2.5 0.1 0.03 WSP, 2008 Tourism2 0.04 2.21 2005 2.7 0.1 0.04 WSP, 2008
Sources: WB-PEM, 2003, The Philippines: Country Environmental Analysis WB-2009, Economic Impacts of Sanitation in the
Philippines WSP-2008, NSCB (for GDP) and BSP (for ex rate)
Note: 1-includes mortality and morbidity cost; 2-includes economic and fnancial impacts; 3-indoor and outdoor air pollution
Source of pollutionAmount,
billion$US
Year% ofGDP
Amount,billionPhP
Amount,billion US$
(2009 prices)
Amount,billion PhP
(2009 prices)Source
Solid Waste
Metro Manila faces a solid waste crisis and is running out of disposal capacity.200Under the
Solid Waste Management Act (RA 9003), barangays are responsible for collecting and separating
biodegradable, compostable, and reusable materials, while the municipality collects non-recyclable
and special materials. Sanitary landlls must be built to contain the future solid waste of the
metropolis. Once in place and better waste management is achieved at the barangay level, thecurrent sites can be closed. Because of leachate leaking hazardous chemicals into ground water and
streams, the current dumps will still need to be cleaned.
Under the 1999 Clean Air Act (RA 8749), all incineration is banned to prevent air pollution.
However, the law ignored modern incineration technologies, which are non-polluting and can
produce energy and construction materials as by-products. Aside from an imminent solid waste
crisis, medical and chemical wastes are not properly disposed of or need to be shipped abroad.
Metro Manila generates many tons of medical waste daily, but the law forced medical incinerators
to close without providing an alternative.
A Supreme Court ruling in January 2002 (GR 147465) afrmed that not all incineration is
banned. The decision reads Section 20 [of the Clean Air Act] does not absolutely prohibitincineration as a mode of waste disposal; rather only those burning processes which emit poisonous
and toxic fumes are banned.
200 Asian Development Bank (ADB), The Garbage Book: Solid Waste Management in Metro Manila. ADB, 2004.
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Despite the Supreme Court ruling, uncertainty remains, and incineration is not taking place.
Environmental groups still claim that all incineration is banned to prevent air pollution. To avoid
a solid waste crisis, the DENR should establish clear rules and standards that would allow modern
incineration technologies. There is also a need to amend the Act to allow modern incinerators thatmeet clean air emission standards.
Air quality
Despite passage of the strict Clean Air Act, many vehicles, especially trucks, buses, jeepneys,
and two-stroke motorcycles, spewing noxious fumes still ply Metro Manilas streets due to weak
enforcement of pollution standards and corruption of mid-level ofcials. Licensed private emission
stations have operated for more than a decade, but smoke-belching vehicles with up-to-date stickers
on their license plates that passed the emission test remain on city streets. National and local
government should demonstrate greater political will to reduce air pollution in the megalopolis and
lessen this serious public health hazard.
Bangkok, Beijing, Dhaka, New Delhi, and Seoul, cities where natural gas is now widely used
for many public transit vehicles, are good examples for the Philippines to learn from. A Natural
Gas Vehicle Program for Public Transport, started in 2004 under EO 290, allowed bus companies to
import and operate 200 buses fueled by Compressed Natural Gas (CNG). However, the program has
not been successful, reportedly due to technical difculties accessing the CNG from the countrys
only natural gas eld.
Many taxis in Metro Manila are converting from gasoline to Liqueed Petroleum Gas (LPG)
fuel in order to save fuel costs. Since 2006, over half of the more than 30,000 taxis in Metro Manila
have converted to LPG.
Much rmer enforcement by local authorities is essential to rid the streets of the principal causes ofair pollution. Polluting two-stroke engines should be replaced by 4-stroke, as has happened elsewhere.
Overall, these various efforts are reportedly preventing Manila air from getting dirtier but have
not been sufcient to improve it to healthy levels. The DENR reports the quality of air may have
slightly improved. According to the Total Suspended Air Particulates Air Quality survey released
by the DENR in 2009, the air quality of the metropolis in 2008 averaged 138 micrograms of
pollutants per normal cubic meter, far above the 90 micrograms target set by the DENR. The air
quality of the metropolis improved from 160 micrograms in 2004 to 132 micrograms in 2007.
Epifanio de los Santos Avenue (EDSA) continues to have the dirtiest measured air in the country
with 282 micrograms, over twice the Metro Manila average. Tests conducted by the DENR in
the rst quarter of 2010, however, showed an increase of suspended particles in the air to 190
micrograms per normal cubic meter.
Water Infrastructure
In July 2010, the United Nations General Assembly passed a resolution declaring access to
clean water and sanitation a basic human right. Whether an urban or a rural resident, every Filipino
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would like to have ready access to clean, inexpensive water, but does not. There are also problems
involving the disposal of wastewater and a need to better educate the public about the growing
problem of sewage pollution, which can have grave effects on health.
The Philippines faces two major challenges in improving water resources: supply and quality.
In large urban areas such as Metro Manila, adequate supply in the future is an issue in the absence
of large expenditures on infrastructure. In remote rural areas, distribution is poor. Years of
deforestation have reduced watersheds. Over-population is shrinking aquifers. Some are threatened
with salt-water intrusion.
Another problem is declining water quality due to sewage pollution in many rivers and coastal
areas. Except for some areas of Metro Manila, only a few (Bacolod, Baguio, Cebu, Davao, Vigan
and Zamboanga) out of more than 100 cities and 1,600 municipalities have sewage systems. In
addition to the runoff of raw sewage into clean water resources, open pit dumpsites used for solid
waste throughout the country create leachate (concentrated organic and inorganic pollutants) that
seeps into groundwater, rivers, and lakes. As a result, water in some bays and coastal areas isbecoming unsuitable for swimming, tourism, and sh spawning.
The Clean Water Act (RA 9275), signed in 2004, is a beginning to solving sewage pollution.
The law: (i) requires designation of multi-sectoral Water Quality Management Areas (WQMA)
to monitor and upgrade local water resources; (ii) mandates preparation of a national sewage
and septage program and requires interconnection of all existing sewage lines; (iii) requires
implementation of a wastewater charge system for all industries located in WQMAs that discharge
wastewater and a nancial liability mechanism under which new factories and infrastructure
will put up an environmental guarantee fund, insurance, or bond; and (iv) provides investment
incentives for compliance in the form of scal and non-scal incentives under the Investment Code
for projects involving wastewater treatment and water pollution control.
The most important public utility privatization undertaken in the Philippines was that of MWSS
in early 1997, with technical assistance from the International Finance Corporation. The privatization
resulted in two concessions and was internationally recognized as a major accomplishment. After
13 years of operations, the two concessionaires Manila Water Company (a Filipino-UK-Japan
joint venture) and Maynilad Water Services (initially a Filipino-French joint venture and now
Filipino-Hong Kong) have demonstrated the effectiveness of the PPP model.
One of the Millenium Development Goal (MDG) targets by 2015 is to reduce by half the
proportion of the population without sustainable access to safe drinking water and basic sanitation.
To meet this MDG target, the Philippines must raise water access to over 92% by 2015 (that is
reducing the waterless by at least half between 1990 and 2015). The Philippine data were based
on the National Demographic and Health Survey (NDHS) and Multiple Indicator Cluster Survey(MICS) of UNICEF. Given the data of the WHO and UNICEF, the country is on track of surpassing
that goal as it is already at 91% as of 2008 (see Figure 158).
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Figure 158: Proportion of population with access to safe drinking water sources
84% 93%
76%
88% 93%82%
91% 93% 87%
0%
10%
20%
30%
40%
50%
60%
70%80%
90%
100%
Total Urban Rural
1990
20002008
Sources: Joint Monitoring Program reports of UNICEF and WHO, 2006 and 2008 issues
Figure 159: Proportion of population with access to sanitary toilet
58%
70%
46%
69%76%
59%
76% 80%69%
0%
10%
20%
30%
40%
50%
60%70%
80%
90%
100%
Total Urban Rural
1990
2000
2008
Sources: Joint Monitoring Program reports of UNICEF and WHO, 2006 and 2008 issues
However, anecdotal evidence suggests these gures are overestimated. At present, there are
still about 400 municipalities (out of more than 1,600) that remain waterless (dened as less than
50% of the population has access to potable water).201Moreover, a World Bank expert on water
and sanitation has expressed concern that high urbanization and underinvestment in water and
sanitation in urban slum areas means the Philippines may not meet this MDG target. As many ofthese urban residents are informal settlers, local government is usually reluctant to provide such
infrastructure.202
Deforestation
The extensive deforestation of the country over a century has been the largest contributor to
the contemporary degraded environment. Improved protection of watersheds, rivers, and estuaries
is essential, as are programs of reforestation and developing sustainable upland agriculture
practices.
201 The Presidents Priority Program on Water (P3W) launched in 2005 to address the potable water needs of then 432 municipalities
identied as waterless, was marred by technical, administrative, and bureaucratic problems resulting in little improvement in the
welfare of target areas. Insertions of municipalities not included in the established target list was made possible by inuential political
gures and constant changes in the leadership of the National Anti-Poverty Commission (NAPC), which is the lead agency, are only
some of the concerns the program encountered. The program was given PhP 5 billion by the National Government to nance water
projects between 2005 and 2010.
202 Article by Michelle Remo, Philippine Daily Inquirer, April 28, 2010
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Figures 160 shows the decline of Philippine forest cover from 90% of the countrys total land
area in 1934 to around 20% in 2007.203Figure 161 shows that the rate of deforestation in the
Philippines from 1990 to 2007 was signicantly higher than in Indonesia, Malaysia, Thailand, and
Vietnam. That rate, 3% between 1990 and 2000, declined to 2% since 2000. The Philippines mustwork harder to reduce it further and reverse the decline as the present forest cover is critically low.
In Vietnam the reforestation rate has been 2% over the past two decades.
Figure 160: Philippine forest cover, 1934-2007, mil has, % total land area
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
2
4
6
8
10
12
14
16
18
1934 1970 1990 1997 2003 2005-07
Forest cover, Mil Ha, lhs
% of total land area, rhs
Sources: CEA 2009, Bureau of Forest Management and FAO
Figure 161: Deforestation rates, selected countries, 1990-2007
1.7%
0.4%
2.8%
0.7%
-2.3%
2.0%
0.7%
2.1%
0.4%
-1.9%-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
Indonesia Malaysia Philippines Thailand Vietnam
1990-2000
2000-2007
Source: ADB; Negative values mean reforestation (e.g. in the case of Vietnam)
Disaster Prevention
Philippine urban areas have developed with very little planning
to mitigate the effects of ooding, landslides, earthquakes, and other
potential disasters, despite the frequency of these events in the country.
During the dry season, res are common in slum areas of cities.
Storms and oods are the major types of disasters in thePhilippines, both in terms of frequency and the number of people
affected (see Figures 162 and 163). Earthquakes and volcanic
eruptions, while more dramatic, are infrequent.
203 Forest is a minimum area of land of 0.05-1.0 hectares with tree crown cover of more than 10-30 per cent with trees with the
potential to reach a minimum height of 2-5 metres at maturity in situ. (FAO, 2006)
In the wakeof Haiti and
Chile, earthquake experts
have been scanning the
globe for other high-risk
areas and most agree that
the likelihood of a major
earthquake in Manila is
high.
PSA report, August 2010
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Metro Manila has grown rapidly but has not experienced a serious earthquake since 1968, when
the Ruby Tower apartment building collapsed killing 268 sleeping residents during an intensity 7.3
earthquake. In 1990 an earthquake of intensity 7.8 struck north of Manila and killed 1,621 persons
in Cabanatuan and Baguio. A recent study assessed the probability of extensive damage to thecapital in the event of a major earthquake on the scale of those in recent years in Sichuan, China
(intensity 8.0 killed at least 68,000 persons) or Haiti (intensity 7.0 killed an estimated 230,000
persons).204
Figure 162 shows the frequency of natural disasters for the current and three previous decades.
The frequency of natural disasters has doubled over 40 years to an average of 15 each year. During
the same period, the number of persons affected by natural disasters has more than doubled to some
50 million (see Figure 163). Damage from natural disasters has averaged around US$ 300 million
a year (see Figure 164).
Figure 162: Total frequency of natural disasters, Philippines, per decade, 1970-2009
0
20
40
60
80
100
120
140
160
1970-1979 1980-1989 1990-1999 2000-2009
Others
Flood
Storm
Source: CRED International Disaster Database; Note: Others include earthquakes, epidemics, extreme tempincidents, insect infestations, wet & dry mass movements, volcanic eruptions, and wildfires.
Figure 163: Number of people affected by natural disasters, Philippines, in Mn,per decade, 1970-2009
0
10
20
30
40
50
60
1970-1979 1980-1989 1990-1999 2000-2009
Others
Flood
Storm
Source: CRED International Disaster Database
204 Metro Manila Earthquake Vunerability Assessment, Pacic Strategies and Assessments, August 2010
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Figure 164: Estimated damage of natural disasters, Philippines, in US$ Bn,
per decade, 1970-2009
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1970-1979 1980-1989 1990-1999 2000-2009
Source: CRED International Disaster Database
Urbanization has reduced the drainage and storage capacity of creeks, rivers, and lakes to
hold water, as they become clogged with garbage and mud, making inhabited areas nearby more
vulnerable to ooding. Typhoon Ondoy (Ketsana) in September 2009 documented a record-highamount of rainfall in 24 hours of 18 inches (in Quezon City). The storm killed 464 persons and
caused damages estimated at US$ 237 million.
It is necessary not only to make buildings safer, earthquake-resistant, ood-proof, and
reproof, but also to improve roads, open spaces, and parks that can prevent the spread
of re, while at the same time raise government and citizen preparedness for disasters in
order to minimize the potential loss and damage to life and property.
Architect Jun Palafox, urban planner,MAP Statement, February 2, 2010
Global Warming
As a relatively small developing economy, energy consumption in the Philippines is a minor
contributor to global warming. Its level of CO2 emissions per capita, after doubling over the
period 1986 to 1996, has been stable in the subsequent decade and is the lowest of the ASEAN-6
(see Figures 165 and 166). However, continuing deforestation in the country is adding to global
warming.
As the worlds second largest archipelago with a total coastline of 36,289 kilometers, the
countrys shores and estuaries will be subject to inundation as seas rise. As throughout Southeast
Asia, much of the population lives near river mouths, since marine travel was prevalent for
millennia, and modern land and air travel are less than a century old. As the sea rises, ooding of
these littoral communities will increase and force their inhabitants to relocate to higher ground,which could reduce available land for agriculture.
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Figure 165: Philippines CO2 emission from energy consumption, 1980-2008
0.0
0.3
0.6
0.9
1.2
0
10
20
30
40
50
60
70
80
90
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Total CO2 emissions from consumption of energy, in mil MT, lhs
Per capita CO2 emission from energy consumption, MT, rhs
Source: EIA
Figure 166: Per capita emission from energy consumption, 2008, in MT,
selected countries
0 5 10 15 20 25 30 35 40
Philippines
Vietnam
India
Indonesia
Thailand
China
Malaysia
Japan
Korea, South
United States
Australia
Singapore
Source: EIA
Headline Recommendations
Implement policies prescribed by the Solid Waste Management Act, CleanAir Act, and Clean Water Act. Deal effectively with the solid waste challenge.Reduce air and water pollution. Clean rivers. Improve access to water and
sanitation. Establish clear rules and standards that would allow modernincineration technologies. Amend the Clean Air Act to allow non-pollutingclean incineration.
1.
Benet tourism, agriculture, and sheries by ending deforestation, beginningreforestation, and rebuilding damaged coral reefs.
2.
Emphasize disaster prevention as well as disaster relief. Reduce oodingby improving drainage, zoning, and infrastructure. Make cities safer against
earthquakes. Plan effectively for the impact of climate change/global warming.
3.
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Recommendations: (14)
A. Environment: Solid Waste. Implement the Solid Waste Management Act (RA 9003). Build
sanitary landlls to contain the future solid waste of the metropolis and clean up existingdumpsites. Improve garbage collection and recycling. Establish clear rules and standards that
would allow modern incineration technologies. Amend the Clean Air Act to allow non-polluting
clean incineration. (Medium-term action by DENR, MMDA, LGUs, and private sector)
B. Environment: Air. Implement the Clean Air Act (RA 8749). Clean Manilas air faster by
removing all vehicles that fail to meet pollution standards. Crack down on corrupt emission
stations. Replace 2-stroke with 4-stroke engines. Convert jeepneys and buses from diesel to
natural gas. (Medium-term action by DENR, DOTC, and DTI)
C. Environment: Water. Implement the Clean Water Act (RA 9275) to increase sewage systems
and water treatment plants in all cities and municipalities in order to reduce water pollution.
(Long-term action DENR, DPWH, LGUs, and private sector)
D. Environment: Rivers. Replicate the KapitBisig Para sa Ilog Pasig (KBPIP) project to clean
and restore the Pasig River for other polluted waterways. (Medium-term action private sector)
E. Environment: Water. Increase access to water and sanitation facilities for more Filipinos, in
waterless municipalities and for residents of slums in urban areas. (Long-term action DENR,
DPWH, LGUs, and private sector)
F. Environment: Reforestation. Reduce the rate of deforestation to zero. Protect remaining
forests effectively and increase reforestation of damaged watersheds. (Long-term action
DENR, LGUs, and private sector)
G. Environment: Reefs. Continue to ght illegal shing methods that destroy reefs. Expand reef
restoration programs and education of coastal communities. (Immediate action DENR, LGUs
and private sector)
H. Environment: Plastic Bags. Educate the public to use reusable non-plastic bags and consider
laws to reduce the widespread use of plastic that pollutes the marine environment and clogs
waterways. (Immediate action DENR, Congress, LGUs, and private sector)
I. Disasters: Prevention. Incorporate disaster prevention, not just disaster reaction, into planning,
development, and education. (Medium-term action NEDA, LGUs, and private sector)
J. Disasters: Typhoon Warning Systems. Install Doppler radars, capable of predicting rainfall,with coverage of Luzon and Visayas. Improve alert systems when typhoons are approaching
and when full dams need to spill water. (Immediate action PAGASA, DOST, DILG, LGUs, and
private sector)
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K. Disasters: Flood. Seek to create ood-proof cities by undertaking extensive ood-control
measures, improving drainage, building dikes and water retention facilities, and planting trees.
(Medium-term action DENR, DPWH, DILG, LGUs, and private sector)
L. Disasters: Earthquakes. Develop and implement a program to make cities safer against
major earthquakes. Make gas, electric, and water supply facilities more secure and make codes
for building construction stricter following best practices to more advanced countries. Audit
buildings and infrastructure for safety. (Medium-term action DENR, DILG, LGUs, and private
sector)
M. Disasters: Hazard Maps. Prepare and publish Hazard Maps for earthquakes, ooding,
volcanic eruption, tsunami, re, and rising water levels due to climate change and other hazards.
(Medium-term action concerned agencies)
N. Global Warming. Implement the planning, educational and other tasks of the Philippine
Climate Change Commission (PCCC) created in 2010 by the Philippine Climate ChangeAct (RA 9729) especially making the country better prepared to deal with natural disasters.
(Medium-term action OP and concerned agencies)