Table of Contents

Message ~~~~~~~~~~ 1

Research & Development ~~~~~~~~~~ 2R&D Breakthrough

Award Winning ResearchesContract R&D Projects

Areas of Convergence ~~~~~~~~~~ 5Packaging R&D Center

MetrologyCleaner Production

Greenhouse Gas Emission Reduction fromIndustry In Asia and the Pacific (GERIAP)

Energy, Environment and ClimateInterrelations for the SMIs

Solid Waste Management ~~~~~~~~~ 12ITDI Materials Recovery Facility

Biodegradable Solid WastesRecyclables Solid Wastes

Residual and Hazardous Wastes

Liquid Waste Management ~~~~~~~~~ 17Activated Sludge and USAB

Enterprise Modules ~~~~~~~~~ 18Accelerated Vinegar

Sweetened Calamansi Juice ConcentrateSmoked Fish

Virgin Coconut OilSoap Making Technology by Cold Process

Process EngineeringPost Harvest Handling/Near Farm Processing

Technology Transfer Program ~~~~~~~~~ 23Information Technology ~~~~~~~~~ 23

DOST Enabled Facilities & Organizations thatProvide Technological Services ~~~~~~~~~ 24

S&T Services ~~~~~~~~~ 25S&T Human Resources Development ~~~~~~~~~ 27

S&T Governance ~~~~~~~~~ 29Scientific Linkages & International Cooperation ~~~~~~~~~ 30

Financial Resources Management ~~~~~~~~~ 31ITDI Organizational Chart ~~~~~~~~~ 33

Director’s Message

The year 2003 has been a difficult year for us as a result of a restricted inflow of governmentresources for our operations. This was frustrating at the onset but we did not allow the situation toaffect our entire operation. On the contrary, it challenged us to become more resolved, resourceful,resilient, and forebearing. Many outstanding performances, demonstrating a high degree ofdedication, commitment and professionalism have emerged.

We implemented projects along the areas of convergence (metrology, packaging, cleanerproduction technologies, waste management, enterprise modules, process engineering, post harvesthandling/near-farm processing) which we identified in our new framework of strategies. We continuedto pursue our Bioreactor 500 project, gaining a competitive edge. We have accredited anotherfabricator, making possible the inclusion of Dole Phils.’ waste management system. We are likewisegaining headway in our continuing efforts to promote and maximize our EMs. We shall continue tofocus in these areas to upgrade the capabilities of the micro, small, and medium enterprises (MSMEs).

ITDI continued to operate in a pyramidal structure where the apex stands for the developmentof mid-level and appropriate technologies that cater to the micro, small and medium enterprises in thecountry. We have developed notable advanced technologies such as the super critical fluid (SCF)extraction, modified atmospheric packaging (MAP), bioceramics, and capabilities on polyxyclicaromatic hydrocarbon (PAH) analysis and limulus amoebocyte lysate (LAL) test; mid-leveltechnologies such as the bioreactor, essential oils, carrageenan capsules and sutures, conveniencefoods, and coco-chemicals; and appropriate technologies such as coco-vinegar, smoked fish, soap,and other village level technologies.

While we continued to strengthen our R&D initiatives, we pursued projects that would createopportunities for the Institute in enhancing its image as an Institution. One is the enhancement of thelaboratory infrastructure at the Standards and Testing Division (STD).

The enhancement of the laboratory infrastructure paves the way for greater testing capacitiesof the Institute, which will house more state-of-the-art equipment in the future. This would give clientsall they need to showcase their modern testing equipment which are available in the market.

The STD microbiological laboratory is now recognized by the Bureau of Food and Drugs(BFAD) of the Department of Health under its Laboratory Recognition and Accreditation Program.Conversely, the much awaited metrology bill that would introduce a unified system of physicalmeasurements has now been ratified and approved by both Congress and Senate. The NationalMetrology Act of the Republic of the Philippines will soon become a law upon official signing by Pres.Gloria Macapagal-Arroyo.

We shall be facing more challenges in the coming years with a continually decreasing budgetallocation until 2009. This situation is in consonance with government efforts to reduce the budgetdeficit to zero. We therefore have to set our priorities and identify this structural and operationalchanges early enough to be able to continue operating efficiently with limited resources.

As we have proven ourselves resilient in hard times, I am confident that we will once again giveour best to realize our goals for 2004 and beyond.

ITDI is pleased to report the following highlights of accomplishments for the year 2003:

DR. ERNESTO P. LOZADADirector, ITDI

The ITDI implemented119 R&D projects in 2003 ofwhich 89 are carry-overprojects and 30 newprojects. Twenty-seven (27)of the carry-over projectsand six (6) of the newprojects undertaken weresuccessfully completed thisyear. The rest arecontinuing projects.

R&DBREAKTHROUGHS

Activated Carbon Fabricfrom Textile Wastes

Activated CarbonFabric (ACF) is activatedcarbon in the form of wovenmaterial or cloth. Wastedenim and gauze cloth arethe raw materials processedby carbonization andactivation in the absence ofoxygen. The ACF has a widerange of adsorptioncapacities to suit applicationsas life disposable respiratorydevice, air filters anddeodorizers. The product isvery convenient to use andeasy to handle. It has auniform and highlydeveloped structure that isefficient in blocking thegrowth of bacteria and isideal for use in respiratorydevices for filtration ofharmful gases. Anapplication for patent on theprocessing of ACF has beensubmitted to the IntellectualProperty Office (IPO).

Chitosan-ImpregnatedFilter Mask

Chitosan is a naturallyoccurring biopolymergenerally obtained byextensive deacetylation of

chitin isolated fromcrustacean shell. It isnon-toxic, biocompatible andbiodegradable polymer.Chitosan has been shown toinhibit a wide variety offungi, yeasts and bacteria.The positive charges ofchitosan interfere withnegatively charged residuesof macromolecules at the cellsurface by competing withCa2+ for electronegative siteson the membrane withoutconferring dimensionalstability, rendering the cellmembrane leaky. The maskis three-layered composed ofpolyester materialimpregnated with chitosan inthe middle layer. Thetechnology has been appliedfor patent under the utilitymodel category at the IPO.

Photo-Activated Mask

Titanium dioxide(TiO2) is a semiconductorchemically activated by lightenergy. The photo activity ofTiO2 tends to decomposeorganic materials that comein contact with it; e.g., dirt,grime, malodorouschemicals, irritants, toxicchemicals, and smokeresidues. Bacteria andviruses are also decomposedon the mask surface due tothe strong oxidizingproperties of titaniumdioxide. The photo-activatedmask also exhibits aself-cleaning effect due tothe strongly oxidizing as wellas superhydrophylicproperties. Thephoto-activated mask isthree-layered composed ofpolyester materialimpregnated with titaniumdioxide in the middle layer.The technology has beenapplied for patent under theutility model category at theIPO.

Research & Development

2

AWARD-WINNINGRESEARCHES

Production andEfficacy Test ofControlled ReleaseFertilizers for theLahar Affected Areasand Coarse-TexturedSoils

This project won FirstPrize in the OutstandingCreative Research Category(LIKHA AWARD),Government Sector in theArea of Agriculture duringthe 2003 National InventionContest sponsored by TAPI.

In this researchproject, four variants ofcontrolled release fertilizers(CRF) were developed usingthe conventional fertilizers ascore materials. Nutrientsare available for 90 to 100days of incubation. The fourvariants of CRF were massproduced and field tested inlahar and coarse-texturedsoils. The application of CRFproducts demonstratedhigher fertilizer efficiencyand crop yield.

Research team: L. G.Dominguez, J. L. Pondevida,M. B. Carandang, A. U.Cargado, R. Baaco, H.Matulac and C. P. Aganon.

Topical Analgesicsfrom NaturalEssential Oils

This project wonSecond Prize for OutstandingCreative Research (LIKHAAWARD) in the Area ofHealth, Education andEntertainment during the2003 National InventionContest sponsored by TAPI.

The study subjectedseven locally producedessential oils of lemongrassoil, citronella, eucalyptus,ginger, guava, cinnamonbark and leaves to analgesicactivity assay using thePlantar Test or Hargreavemethod. Among these oils,ginger oil exhibited thehighest analgesic activity of65% protection at 250mg/kgas compared to aspirin’s

52% at 300 mg/kg dose.From these results, oils ofginger and lemongrasstogether with other plant oilsand extracts were blendedand again bio-assayed.Blended oils which gavesignificant analgesic activitywere concocted in four kindsof topical products:greaseless gel and liniment,massage oil and balm.

The research team iscomposed of: R. C. Torres,M. A. Villanueva, F. M. Sison,P. M. Cuasay, E. C. Monroyo,C. O. Manalo, E. A. Lanto, R.R. Estrella, E. L. Arrogante,I. B. Mendoza, R. Banal andC. Melo.

Lemongrass Oil asPotential Anti-FungalTopical EyeMedication AgainstCorneal Blindness

This research projectbagged the Grand PrizeAward at the 14th PCHRDScientific Poster Contest onHealth and RelatedTechnologies. The project’sresearch team includes R.C. Torres, M. A. Villanueva,U. G. Bigol, C. O. Manalo,Ma. C.S. Cruz, Q. M.Montevirgen and Drs. J. M.Abaño and J. Sy ofUniversity of Santo Tomas,Department ofOphthalmology.

Lemongrass oil wasproven effective against two(2) species of fungi,Fusarium and Aspergilluswhen applied experimentallyon infected rabbits.

Clayliner for SanitaryLandfill

The research projectwon 3rd prize for OutstandingCreative Research (LIKHAAward), Government -Environment and SanitationCategory during the NationalInvention Contest held onNovember 29, 2003.

Research team: R. C.Loberiano, P. S. Braganza,Jr., J. M. Filio, J. B. Salvador,G. Santos, M. G. Daan, S. L.Cabillon, B. A. Basilia and S.T. Bernardo.

(Details on this research projectare written under the Areas ofConvergence: WasteManagement.)

3

In addition to theconduct of regular R&Dprojects, ITDI alsoundertakes R&D projectsunder contract agreementwith the private sector, othergovernment agencies andnon-governmentorganizations. This year, theInstitute conducted 29contract R&D projects for theprivate sector, 11 of whichwere completed, while 18are ongoing. Value of thesereached P1.4 Million. Notableof the completed R&Dcontract projects withprivate firms are:

• Utilization of Carrageenanfor the Production of SoftCapsules with ShembergMarketing Corporation &Drugmakers BiotechResearch Laboratories,Inc., San Pedro, Laguna;

• Clinical Studies for OrbitalEye Implants with Dr. Ma.Perla Duran, Departmentof Ophthalmology, Collegeof Medicine, University ofSanto Tomas, Manila;

• R&D on Bioceramics(CPGC) for Dental Implantwith College of Dentistry,University of the East,Manila;

• Product Development ofCanned Guinataan Mais,Munggo and Halo-Halowith Moonbake, Inc., LasPiñas City;

• Formulation of a WaxingProduct for Removal ofUnwanted Hair with EllaFace Care Salon;

• Product Improvement/Reformulation of LiquidSeasoning & TomatoCatsup with GourmetFoods Mfg., MandaluyongCity;

• Treatability Studies onCENMACO Wastewaterwith Central Macaroni Co.,Inc., San Juan, MetroManila; and

• Product Development ofSweetened Calamansi withBanaba Extract,Sweetened Calamansi withMuscovado and SweetenedCalamansi with Dalandanwith Moonbake, Inc., LasPiñas City.

An ongoing contractresearch project worthmentioning is the Bio-2TProject, which will undergotechnical viability analysis tosupport standarddevelopment of plant-basedoil derivatives (Bio-2T) forunmodified two-stroke sparkignition motorcycle engine. AMemorandum of Agreementwith the Department ofEnergy, Philippine CoconutAuthority TechnologicalUniversity of the Philippines ,and the Department ofScience and Technology wassigned last November 19,2003. Initial activityconducted by ITDI was thedistillation of the coconutmethyl ester provided byD&L Industries Inc. to comeup with different fractions offatty acids (C8-C10), (C12),(C14), and (C16-C18). Thefractions were submitted toDOE for formulation andapplication testing.

CONTRACT R&D PROJECTS

4

To address a broadspectrum of issues orproblems associated withindustrialization,technological and sustainabledevelopment, the ITDIinstitutionalized itscapabilities in seven (7)strategic areas ofconvergence to upgradeproduction capacities ofSMEs. These are anchoredon packaging, metrology,cleaner productiontechnologies, wastemanagement, enterprisemodules, processengineering, and postharvest handling/near farmprocessing. The process ofupgrading the productioncapacities of the SMEsinvolves the convergence ofR&D activities along thesekey areas to enable the firmsto effectively managetechnological progress andcompetition with a consciouseffort to integrate broadersocial responsibility in theiroperations.

Further, as amultidisciplinary Institute theconvergence of expertiseamong the Institute’sdivisions in the conduct ofR&D and delivery oftechnical services alongthese areas will enable firmsto experience a one-stopshop for solutions to theirproduction problems.

For the year,initiatives undertaken were:

Packaging

Packaging Researchand Development Center(PRDC), which wasestablished in 1999. servesas a venue to conductpackage research anddevelopment, testing,training, and a depository ofpackaging information,standards and regulations.PRDC extends its services tothe regions to accelerate thegrowth of the micro and

small industries in thecountryside. The Centeroffers the following services:

• Collaborative R&D in theareas of food and non-foodpackaging

• Development of newpackaging materials

• New packagingconcept/innovation

• Development of genericpackaging containers

• Shelflife extension throughappropriate packagingmaterials

• Development of standardcontainers for freshproduce

• Cushion and structuraldesigns

• Shelflife testing• Product-package

compatibility test• Burst/leak/seal integrity• Water vapor transmission

rate• Package headspace

composition• Coefficient of friction• Nutrition labeling and

mandatory labeling• Packaging performance

evaluation• Testing of plastic/flexible

film and other containersfor food application

• Promotional/graphicdesign

• Toll/contract packaging forvacuum packaging,vertical form-fill-sealpackaging for solids,lidding machine, blisterpackaging, thermoformingmachine for solids, sampleplotter for box structure

• Training and technicalconsultation

Areas of Convergence

5

PRDC developed 127packaged products, whichwas 27% higher than theirtarget for the year. Ninecompanies/businesses wereestablished or expanded inthe domestic market while12 products were introducedin the export market. TheCenter also assisted 37companies/entrepreneurs inthe packaging of products formarket testing, completednutrition labeling/facts for 22products and product-package compatibility testfor 18 products. It organizedand/or participated in 32packaging seminars.

From among theproducts developed/improved with assistancefrom the Center, thefollowing were launched inthe market:

• Mega Sardines instand-up pouch at AnugaFood Fair, Germany inOctober 2003; Asian FoodFestival, World TradeCenter, Philippines inNovember 2003

• Mura Sarap Bagoong insingle-serve pouch at theAsian Ethnic Food Festivalin October 2003

• Bucarez Peanut Kissesin kiddie pack at the AsianEthnic Food Festival inNovember 2003

• Gyne-Fresh FeminineWash at the OBConference in November2003

• Yakan Cloth inSeptember 2003

• Coco Palm Nectar inNovember 2003

In addition, the PRDCshowcased mango productsin new or innovativepackages. These includedried mangoes in stand-uppouch (SUP), mangorachada, mango chutney,mango tart, and freshmango in gift packagesduring the Philippine SoloExhibition in Shanghai, Chinaon March 22-30, 2003.

To continuouslyenhance its capabilities,PRDC staff conductedin-house seminars andparticipated in variousconferences/seminars hereand abroad on WTO,packaging and labeling,GMP/HACPP, food festivals,and food congresses.

Metrology

The MetrologyProgram responds to the callfor accuracy in the units ofmeasurement for productstandardization, higherquality and competitivenessof local products. This wouldmean better protection ofthe consumers. This programis being undertaken throughthe National MetrologyLaboratory (NML), which wasestablished in 1999. TheNML has laboratories in thefields of mass, length,temperature & humidity,electricity, time interval,force and pressure, densityand viscosity, and volumeand flow.

This year, the NationalMetrology Programundertook majorinterventions to strengthenthe hierarchicalinfrastructure formeasurements, the so-calledMetrology Pyramid,consisting of the followinginstitutions:

Institutions formingthe Pyramid are:

• The base: In-housecalibration laboratories ofmanufacturers, traders

• The mid-section:Regulatory bodies like theLocal Government Unitswhich inspect weighingscales in the market,private commercialcalibration laboratories,DOST Regional calibrationlaboratories, and

• The apex: Laboratoriesmaintaining anddisseminating thenational standards forunits of measurements—Philippine NuclearResearch Institute (PNRI)for Ionizing radiation,Philippine Astronomicaland Geophysical ServicesAdministration (PAGASA)for time, and NationalMetrology Laboratory(NML) ITDI for the otherquantities.

The pyramidalstructure assures an efficientprovision of services foraccurate, internationallytraceable results ofmeasurements. Voluminouslow accuracy instruments arechecked at the base. Thenumber of instruments fortesting tapers down asaccuracy level goes up to themiddle and eventually theAPEX, where more difficult,accurate measurements areconducted on fewerstandards.

Areas of convergence .....

6

Upgrading of thefacilities at the Apex ofthe Pyramid:

• National MetrologyLaboratory, ITDI, up-grading in mass measure-ments and informationsystem

NML-ITDI developedan interface and program forthe semi-automaticoperation of a 1-kg masscomparator. This creates aregular timing for thesequence of measurements,contributing to better repeat-ability of test results. Theprogram eliminatesintermediate transfer of data(from raw measurementdata to test results in thecertificate), to avoidpotential errors.

A 10-kg highresolution masscomparator was acquired toimprove the build-up, andbuild-down from the 1 kgnational standard to thelower, and higher values oftest weights.

The comparator hasa built-in test weighthandler, which furtherminimizes sources ofuncertainties in measure-ment due to manualhandling of samples.Interface with a computermakes transfer of test dataunnecessary.

OIML (InternationalOrganization on LegalMetrology) class E1 masseswere acquired to accom-modate the increasingnumber of high accuracy (upto class E2) standardweights being received bythe Laboratory.

Computer system(purchased under a JapanMITI project) and networkinghardware were acquired.These are being installed tocomputerize the manage-ment of information – testdata, calculations, servicesstatus, standard equipmentand staff information.Implementation of the planwill make the quality system

of the NML moremanageable and reliable.

• PAGASA: Time

Under the NationalMetrology Program, a timestandard (Iridium clock) andaccessories for comparisonof the standard with those ofITDI’s as well as with foreignstandards through satellitesare available. Computersystem is included for thedissemination of the timestandard via internet andthe broadcast media. Thisprovides an efficient strategyfor nationwidesynchronization of officialclocks.

• PNRI: Ionizing Radiation

PNRI’s health andsafety related functionsinclude dissemination ofstandards on radiationthrough calibration andmeasurements on surveymeters, area monitors,personnel dosimeters,environmental monitors andcontamination monitoringinstruments.

In treating cancerpatients, a high dose ofradiation frombrachytherapy source isadministered. Accuracy ofdose measure- ments is veryimportant in seeing to it thatthe dose kills the cancer cellsbut causes the least damageto the healthy cells of thepatient. The metrologyprogram therefore providedfunds for the acquisition of adose calibrator well to beused to check that theradiation source is giving theright amount of radiation asprescribed.

Another veryimportant equipment forprocurement by PNRI is aConstant Potential X-RayGenerator. The equipmentenables PNRI to check theenergy response ofdosimeters and surveymeters more accurately andalso extend calibrationcapability from low to highenergy levels.

7

Upgrading of facilitiesat the mid-section ofthe Pyramid: DOSTRegional MetrologyLaboratories

The NationalMetrology Program hasdeveloped an over-all planfor the DOST RegionalLaboratories. Facilities forbasic metrology services(mass and small volume)were designed for allregional laboratories, whileselected regions wereidentified to havespecialization on fieldsrelevant to their region andsurrounding regions.

For year 2003, as apart of the over-all plan, thefollowing developments werenoted:

DOST Region 4completed acquisition ofequipment and had thelaboratory (Los Banos,Laguna) inaugurated inNovember. Basic Services tobe started are in Mass, SmallVolume, Length andElectricity. NML staffprovided advice on theevaluation of biddenequipment, laboratorylayout, and other factorsaffecting reliability ofmeasurements. A bigvolume laboratory wasestablished in Batangas forthe calibration of vehicletanks and calibratingbuckets.

NML calibrated thelaboratory equipment andprovided training of staff.

DOST Region 7completed acquisition ofequipment and startedoffering basic services forMass, Small Volume, andLength.

Other Regionallaboratories upgraded are:

• DOST Region 6 Laboratoryin Iloilo City for Mass andSmall Volume

• DOST Region 11Laboratory in Davao City a60-kg balance to completeits facilities for Mass andSmall Volume calibrationservices.

• DOST CARAGA Butuan Citya 60-kg balance tocomplete its facilities forMass and Small Volumeservices

Training ProgramsConducted for theRegional Staff

The conduct oftraining courses wascontinued, with this year’spriority on the developmentof DOST Regional staff.

Training for the NMLStaff

To improve theirtraining capabilities, the NMLstaff undertook one-daytraining on “Presenting andDelivering Technical Contentin June 2003.

Areas of convergence .....

8

A significant move,ITDI initiated a local(metrology) interlaboratorycomparison program (theonly one in the Philippines).Under this program, itcreated a circle linked to AsiaPacific Metrology Program(APMP) which in turn islinked at multiple points tothe international circle runby the International Bureauof Weights and Measures(BIPM). The local circleprovides opportunity for thelocal calibration laboratoriesto participate in comparisonprograms appropriate totheir level.

Local Inter-laboratoryComparisons were continuedand the following werecompleted in 2003:

• 2200 g x 0.01 gElectronic Balance, 9private calibrationlaboratories and DOSTCalibrations laboratories inRegions 1, 4, 5, 6, 7, 8, 9,10, and CAR.

• Micrometer, 25 mm x0.001 mm; Group A: 12Semiconductor andElectronic Companies.Group B: 7 Privatecalibration and testinglaboratories.

• 10 mL VolumetricPipette and 10 mL x0.01 mL graduatedpipette -5 NCR GovernmentLaboratoriesDOST RegionalLaboratories 1, 2, 4, 5, 6,7, 8, 9, 10, 11, CAR.

• 0-100 oC 0.5 oCMercury-in -GlassThermometer -7 Private laboratoriesDOST 7 RegionalLaboratory

• 1 kg 100g OIML ClassF1 Mass -2 Private LaboratoriesDOST RegionalLaboratories 7, 10

National Metrology Act

This has been finallyratified and both House andSenate versions have beenconsolidated. The finalversion has been submittedto the Office of the Presidentfor approval and signature.

PARTICIPANTS AND DISTRIBUTION BY REGIONS

CAR 1 2 3 4 5 6 7 8 9 10 11 12CARAGA

PrivateSectors

TOTAL

Calibration of:

Analytical Balances

Volumetric Wares

(Small volume)

21 21

Introduction to:

Metrology/Mass Metrology

Calibration of: Analytical/

Precision Balances & Test

Weights

Volumetric Wares to

contain/to deliver

- 2 - 1 2 2 1 2 2 1 1 2 2 2 20

Calibration of: Liquid-in-

Glass Thermometer

Enclosures - Oven &

Incubator

Dimensional Metrology 1:

Calibration of Caliper &

Micrometer

(Overview of Electrical

Metrology Lab. Activities

(Orientation of Inter-Lab

Comparison of 10L-Bucket)

- - - 2 2 - 1 2 1 1 1 2 2 2 16

Laboratory Proficiency Evaluation Program

9

Cleaner Production

Cleaner productiontechnologies are alternativeprocesses, systems andpractices that use minimalraw materials and minimalenergy with the net effect ofreducing unit cost ofproduction, thus maximizingreturns.

The IntegratedProgram on CleanerProduction Technologies(IPCT) was established in1999 to promote theintegration of cleanerproduction principles in R&D,technology transfer,manufacturing, and in thevarious sectors of industryfor sustainable development.The IPCT offers the followingservices:

• Facility assessment,treatment and monitoringassistance to industries

• Seminars and Trainings(ECO201, CP Assessment,Waste Minimization in AutoRepair Shops, Solid WasteManagement, HazardousWaste Management,EnvironmentalManagement System, etc.)

• Compendium of scannedand reviewed CPtechnologies

• Information, Educationand Communication

For the year, IPCTassessed 20 facilities andmonitored 27 companies. Inaddition, preliminary CPassessments were conductedin six (6) facilities. Fivecompanies were likewiseassisted on the modificationand improvement of theirwastewater treatmentplants.

Since the start of theprogram IPCT has trained1571 participants on CPAssessment and has givenCP Advocacy andEnvironmental Awarenessseminars to 3228participants. IPCT haslikewise assessed a total of56 companies for CP optionsin 8 regions and quantifiedthe environmental andeconomic benefits of 18facilities. Results indicatedthat investment costs ofabout PhP5 Million by thesecompanies for theimplementation of CP optionsincreased their productivityby PhP28 Million per year. Ithas also reduced capitalinvestment for wastewatertreatment plant by PhP2.4Million, and reducedoperating costs forproduction, waste treatmentand disposal by PhP8 Millionper year. These companieslikewise reaped savings ininput materials and reducedwaste generation. Aside fromthese economic andenvironmental benefits, thefacilities assessedenumerated the followingadvantages of CP at theircompanies:

• Improved GoodManufacturing Practices(GMP)

• Improved Product Quality• Achieved SA 8000

Accreditation• Improved Plant Layout• Improved Company Image

• Ensured OccupationalHealth and Safety ofWorkers

• Compliance toEnvironmentalRequirements

• Increased Environmentaland Health and SafetyAwareness

IPCT has partneredwith the League of Cities ofthe Philippines (LCP) for itsClean Cities Center (CCC)Project. The partnershipaims to enhance thecapabilities of localgovernment units inpromoting cleanerproduction and serve as avehicle in assisting SMEstoward the implementationof the CP program. IPCT hasalready conducted CleanerProduction AssessmentTraining Workshops in 10participating cities, namely:Antipolo City, Bais City, SanFernando City in La Union,Dagupan City, Iloilo City,Island Garden City of Samal,Mandaue City, Naga City,Tagaytay City, and ToledoCity in Cebu. Part of thetraining was the mock facilityassessment of a volunteeredfacility per city. Two of thefacilities that volunteeredwere given full CPassessment and have thusadopted the program in theirfacilities. The retreat housein Tagaytay City, forexample, was able to savePhP95 thousand per year onits operating costs afterinvesting in CP.

Along the concept ofCP, ITDI has integrated itsprogram on CLEAN ENERGYAND ENERGYEFFICIENCY. EnergyAudit, in particular, hasbeen part of the CPassessment being conductedby experts from the Fuelsand Energy Division (FED)with the IPCT technical staffto requesting firms in theindustry. This year energyaudit was completed for thefollowing companies andorganizations:

Areas of convergence .....

10

• Philippine Food Processorsand ExportersOrganization, Inc.(PHILFOODEX): Boileraudit of selected foodmanufacturing plants

• Manila Electric Company:Energy audit of sixMERALCO customers

• Energy ManagementAssociation of thePhilippines: Energy auditof Westin Philippines

• Energy ManagementAssociation of thePhilippines: Energy auditof Optodevelopment, Inc.

In addition, the FEDhas two prominent projectsundertaken this year:

Greenhouse GasEmission Reductionfrom Industry in Asiaand the Pacific(GERIAP)

This project isdesigned to develop andpractically demonstrate amechanism for encouragingcompany level actions toincrease the efficiency ofenergy use in theirproduction processes,thereby reducing associatedemissions, especiallygreenhouse gases (GHG).The mechanism is based onthe CP approach toenvironmental managementwhere the combinedenvironmental and economicbenefits that can beachieved simultaneouslyencourage companies to takeaction on their own.Targeted are the iron andsteel, pulp and paper, limeand cement and chemicalssectors. The first yearactivities of this project,funded by the United NationsEnvironment Programme(UNEP) or the SwedishInternational DevelopmentCooperation Agency (SIDA)have already beencompleted.

The project startedwith a 2-week InternationalTraining for Trainers onCleaner Production-EnergyEfficiency (CP-EE) held inManila, Philippines inFebruary 2003, which wasparticipated in by the energyaudit team of the GERIAPmember countries, namely,Bangladesh, China, India,Indonesia, Mongolia,Philippines, Sri Lanka,Thailand, and Vietnam. OnJuly 16, 2003, a NationalAwareness Seminar for theproject was held andattended by variousstakeholders of CP-EE.

Five industrial plantswere selected to becomeGERIAP’s Assessment Plantsand these include the UnionCement Corporation, SolidCement Corporation, UnitedPulp and Paper Corporation,Steel Asia ManufacturingCorporation, and Puyat VinylProducts, Inc. These plantsidentified their respectiveCP-EE Teams who weretrained on energy audit onAugust 25-29, 2003 at theRichmond Hotel, OrtigasCenter, Philippines. In-plantassessment ofagreed/focused areas (e.g.,kiln, electric motors, boilers,etc.) were conducted fromSeptember to December2003. CP-EE optionsresulting to 10-15% energysavings were identified.These energy savings alsoresult to the reduction ofGHG emissions.

Action plans forimplementation of therecommended CP-EE optionsby 2004 were identified byboth the ITDI and theassessment plants.

Energy, Environmentand ClimateInterrelations for theSmall and MediumIndustries

ITDI through FED hasbeen assisting the ceramicsand metalcasting industriesin their concern for energycost. In Phase II of thisproject, awareness seminarsand training on energymanagement and energyconservation were conductedto promote energy efficientand environmentally soundtechnologies. Energyefficient technologies; i.e.,waste heat recovery fromkilns and furnaces, use ofhighly efficient electricmotors, and use of efficientthermal insulation wereidentified. The ceramics andmetalcasting industrieswelcomed the assistance ofITDI particularly on therecommended energyconservation options.Options which did not entailinvestment wereimmediately carried out andabout 2-5% energy savingswere realized. Phase II alsoidentified the barriers to thepromotion of energy efficientand environmentally soundtechnologies, as follows:managerial andorganizational barriers;financial and economicbarriers; technical andinformation barriers; andpolicy and market barriers.

This year, Phase III ofthe project started. Thisincludes activities such asranking and prioritizingbarriers, identification ofmeasures for the removal ofbarriers, estimation of GHGfrom the ceramics andmetalcasting industries, andpreparation oftechno-economic feasibilityof energy efficienttechnologies. A survey onthe barriers was undertakenand results showed that bothindustries ranked financialand economic barriers No.1.

11

Waste Management

While the CP Programaims to minimize the wastesgenerated by businessesduring operations, the ITDIWaste ManagementProgram, on the other hand,aims to provideend-of-the-pipe solutions.Factories, animal farms,communities, publicmarkets, and householdsgenerate huge volumes ofsolid wastes (biodegradableand non-biodegradable),liquid wastes (wastewater &effluents), and gaseousemissions. Several wastemanagement technologieshave been developed byITDI through joint efforts ofits researchers from theMaterials Science Division(MSD), Microbiology andGenetics Division (MGD),and Environmental Division(EnD) to address theseconcerns particularly forliquid and solid wastes. ITDIis aggressively promotingthe transfer of thesetechnologies to localgovernment units,communities, and industries.

TECHNOLOGIES FORSOLID WASTEMANAGEMENT

Segregation: ITDIMaterials RecoveryFacility

In September 2001,ITDI created the EcologicalSolid Waste ManagementProgram to implement anintegrated approach to solidwaste management focusingon waste segregation atsource. ITDI Divisionsoccupying a total of nine (9)buildings were each providedwith five (5) bins tocorrespond to the five majorwastes, namely: 1)biodegradable; 2) plastics;3) paper; 4) metals andglass; and 5) residualwastes. Divisional contactpersons were assigned tomonitor the properimplementation of theprogram.

With propersegregation at source,wastes were easily collectedand transported to the MRFusing a side car. The MRFoccupied two bays of theITDI garage, one bay forplastics and the other hasthe segregation table andsegregation trays.Biodegradable wastes frombin 1 were either brought tothe ITDI bioreactor at theMGD building or to the ITDIbiodigester at the EnDbuilding. Wastes from bins2-4 were brought to the MRFof the MSD for furthersegregation and processing.The final segregated saleablerecyclables were sold toecoshops, materialsprocessors and buyers.Other recyclable wastesparticularly plastic-basedwastes such as styrofoam,sando bags, plasticlaminates, and usedfluorescent lamps were usedas raw materials for R&D todevelop new marketableproducts.

Solid Waste Management

12

The ITDI MaterialsRecovery Facility (MRF) nowoccupies a new site at theback of the MGD building tointegrate in its operation thebioreactor for biodegradablesand the newly constructedexperimental landfill withleachate ponds for residualwastes in just one location.The new MRF was alsoconstructed to become therecycling and processingcenter for fullimplementation of anintegrated program on solidwaste management. Ithouses the plastic crusher,the CHB making machine,and the foamed polystyrenemelting facility. Glassrecycling, which is on a pilotscale and technologybusiness incubator (TBI)status occupies a separatebuilding.

The ITDI solid wastemanagement technologiesunder the MRF are nowavailable in compact discsand are used as a mediumfor a nationwide advocacyseminar series. InterestedLGUs can contact the ITDIfor the conduct of wastemanagement seminars.According to the MetroManila DevelopmentAuthority (MMDA), the ITDIMRF model is vital inachieving higher levels ofrecycling from the presentlow of 6% to a high85%-90%.

Biodegradable SolidWastes

• Bioreactor 500 Project

The Bioreactor 500Technology TransferProgram was officiallylaunched on April 23, 2003through a Press Conferenceat Hotel Rembrandt. It wasoriginally envisioned tocommercialize 500 units of500kg/day stirred-tankcomposting bioreactors in500 days. However, in viewof doubling of prices of metalproducts and the demand forcapacity bioreactors,

commercialization effortsconsidered high capacityrotary tank bioreactors.

This year can beconsidered as a cruciallearning curve for ITDI,which successfullycommercialized 4 bioreactorsof various designs in thefollowing locations:Tuguegarao City (500 kg/dayModel 3 stirred-tankbioreactor); Pagadian City(500 kg/day Model 2stirred-tank bioreactor);Northern Foods Corporationin Ilocos Norte (500 kg/dayModel 1 stirred-tankbioreactor); and NationalKidney and TransplantInstitute in Quezon City (500kg/day rotary tankbioreactor). Undergoingcompletion are for OzamisCity (2 tons/day Model 2rotary tank bioreactor), BaisCity (500 kg/day, Model 3stirred-tank bioreactor andanother one for PagadianCity (1 ton/day rotary tankbioreactor). The firstsuccessful commercializationmodel was done in SmokeyMountain using a capacity of2 tons/day Model 1 rotarytank bioreactor. The limitedcommercialization by ITDIwas done in support to R&Dfor further improvement ofthe technology. As a result,latest bioreactor models aremore user-friendly, moreenvironment-friendly andmore cost-competitive.Efforts are being completedto allow all existingbioreactors to double theiractual capacity within thefirst 6 months as atechnology safety netagainst the sky rocketingcosts of fabricationmaterials.

It was also a learningcurve for the accreditedfabricators (see list) whowere taught the technologyincluding the details ofequipment design. To date,the first successfulcommercialization by anaccredited fabricator was inDavao City, where the unitserved as demo facility to

increase market of thetechnology. As a result, nine(9) bioreactors are beingconsidered for fabrication forvarious LGUs and for DOLEPhilippines, mostly 500kg/day stirred-tankbioreactors. The latter has atotal compost requirement of40 tons/day.

Another fabricator iscompleting a 6-10 tons/daycomposting facility for ViganCity. Further, three (3) ofthe ITDI accreditedfabricators are bidding a500kg/day bioreactorinclusive of the MaterialsRecovery Facility (MRF)requirement of Keppel’sIlijan Power Plant. Recently,the local government unit ofLa Trinidad, Benguet decidedto adopt the bioreactortechnology to solve its 70tons/day biodegradable solidwaste problem while FirstHoldings Power Plant is setto adopt this technology forits nearby barangay with acapacity of 2 tons/day. LipaCity and Castilleja inSorsogon have also signifiedintention to adopt the ITDIbioreactor technology.

ITDI expects thesucceeding year to be a boonfor the Bioreactor 500Project with the increasingnumber of accreditedfabricators taking the lead intechno-transfer.

Accredited Fabricators

• Asia Envirocon, Inc. -Q.C.• Dragon Construction, Inc.-

Q.C.• GPE Builders, Inc. - Q.C.• I.M. Bongar & Co., Inc. -

Las Piñas City• Kasaka Farm Industries -

Calumpit, Bulacan• L. Angeles Machineries

Corp. - Pasay City• Raymac, Inc. - Caloocan

City• Triclops Engineering - La

Trinidad, Benguet• Davao NCG Services, Inc.

- Davao City• New Nonagon Engineering

- Pagadian City

13

Scrap packaginglaminates commonlydescribed as “aluminum foilpacks” can be reprocessedinto functional products suchas construction materials(e.g., panel boards) orinjection molded articles(e.g., functional/decorativearticles) and other relatedproducts. A project jointlyconducted by ITDI andNestle Phils, Inc. (NPI) hasshown that the recycling andprocessing of scrappackaging laminates intovaluable products istechnically feasible. Theproject was implementedpursuant to R.A. 9003 orEcological Solid WasteManagement Act whichrequires segregation ofwastes at source intobiodegradables, recyclablesand residual wastes. Thebiodegradables will go to thecomposting facility, therecyclables to the MaterialsRecovery Facility for furthersegregation or recycling andthe residual wastes, to thesanitary landfill.

Samples of packaginglaminates generated by NPIsuch as MILO sachets andpouches were successfullyreduced into fine particlesusing the fabricated grindingmachine producing finegrinds ready formolding/fabrication. Toexplore their valuable uses,two different moldingtechniques/processes wereemployed as follows: 1)forming panel boards by hotpress machine; and 2)molded products by injectionmolding.

The following are thebreakthroughs andsignificant accomplishmentsof this research work:

1. Design and fabrication ofa grinding machine (capableof reducing the size of thescrap packaging laminatesinto fine grind) with thefollowing specifications: 5Hp,1700 rpm, 50kg/hr capacity

2. Successful trialproduction of 5L pail byinjection molding at aplastics manufacturing firm.(Significant Result: The finegrind packaging laminatesare practically moldable byinjection molding machineboth in small and larger sizessuch as the pail.)

3. Development andfabrication of panel boards(21”x21”x9mm) by hot pressmachine.

Solid waste management .....

• Functional Products from Scrap PackagingLaminates

Recyclable Solid Wastes

14

• Functional Productsfrom Waste FoamedPolystyrene

Polystyrene (PS) is themost common plasticmaterial used forsingle-use/disposable foodpackaging products. FoamedPS (FPS), which is popularlycalled as “Styrofoam”, iswidely used as foodpackaging shells in most fastfood stores such asMcDonalds, Jollibee,Wendy’s, etc. Accordingly,the FPS remains the mosteconomical and safestpackaging material all overthe world; hence, theincreasing demand andusage for these packagingmaterials have alsocontributed to problems onsolid wastes disposal.

ITDI in cooperationwith the PolystyrenePackaging Council of thePhilippines (PPCP) hasdeveloped a melting unit forthe processing of waste PSfood packaging shells intorigid solid blocks. The 95%reduction in bulk density offoamed PS will reduce atruckload of scraps to onedrum (220L) of solid plastic.The melting unit is locallyfabricated, simple to operateand at affordable cost. LGUsand junk shop owners canreadily adopt the technology.The economic incentiveencourages on-site recyclingto avoid high transport costs.Functional productsdeveloped from these wastesinclude molded products forgarden/yard fixtures, tabletop, paving blocks, etc.

In consonance withthe Clean Air Act, ITDI iscurrently undertakingactivities to evaluate theenvironmental impact of thetechnology specifically gasemissions produced duringthe processing of FPS.

15

• Clayliner for SanitaryLandfill

R.A. 9003 stipulatesthat the open dumpsitesshould be converted tocontrolled dumpsites by2005 and eventually toSANITARY LANDFILL by2007. Hence, the country,which is composed of 1500local government units, hasonly four years left to put upa sanitary landfill (SLF).

ITDI has developedanother breakthrough for theecological solid wastemanagement in the countrywhen its team of researchersformulated geocomposites toserve as clay liners forsanitary landfills. Landfillliners act as barriers so thatleachates will notcontaminate groundwater, asource of drinking water.High density polyethylene(HDPE) is the mostcommonly used liner butcosts P4000/m2. Comparedto HDPE, clay liner costs onlyP400/m2 thus a suitable andlow- cost alternative for localsanitary landfills.

In Bais City, aresearch was conductedleading to the construction a3,300 sq. meterexperimental landfill. This isthe first clay lined sanitarylandfill in the countryinaugurated by PresidentGloria Macapagal-Arroyo inApril 2003. The projectedcost of the Bais sanitarylandfill is P7.1 Million, muchcheaper than the commercialHDPE lined sanitary landfills.

Late this year, fourLGUs from Pagadian City,Ozamis City, La Trinidad,Benguet and Lucena Citysought ITDI assistance fortechnology transfer of clayliner SLF in their areas.

• Solidification/Encapsulation ofHeavy-Metal BearingSludge

The ITDI CentralizedHazardous Waste TreatmentFacility (CHWTF) handlestoxic substances andhazardous wastes generatedby laboratories within theDOST Bicutan ScienceCommunity. Likewise, itserves as a demonstrationfacility for other researchinstitutions, organizations,academe, and industries inthe proper management ofhazardous wastes.Treatment methods such asacid/base neutralization,heavy metal removal,recovery of halogenatedsolvents, and solidification/encapsulation of hazardouswastes are also undertakenat the facility. Solidified andstabilized sludge are used asweights and landmarkers.

For the year 2003, theintegrated facility hastreated and disposed a totalof 120 L of spent reagentsand 60 L of heavymetal-bearing wastes, andrecovered 32 L ofnon-halogenated solventsfrom different laboratories ofthe DOST RDIs. TheEnvironmental Division iscurrently conducting studieson the solidification/encapsulation of the sludgegenerated in the facilityusing various inexpensiveencapsulating materials suchas cement, sand and fly ash.

Solid waste management .....

Residual and Hazardous Wastes

16

Activated Sludge andUASB

ITDI has beenpromoting the integration ofan upflow anaerobic sludgeblanket reactor (UASB) inthe wastewater treatmentfacility (WTF) of processingplants in the country. UASBhas a high efficiency in thetreatment of wastewatercontaining highconcentrations of organicpollutants. It entails lowmaintenance cost and lowenergy consumption. Theconstruction of a WTF withhigher efficiency will helpindustries reduce pollutionload and thereby complywith DENR effluentregulations.

Two pilot plants havealready been constructed todemonstrate the efficiency ofintegrating activated sludgeand UASB in the WTF of aprocessing plant. Pilot Plant1 is installed in a Pulp andPaper Company while PilotPlant 2 is installed at ITDI.

ITDI has assisted thefollowing in the treatment ofwastewater generated bytheir processing plants:

Container Corporation ofthe Philippines – a papermill company involved inrecycling used papers.

• Laboratory and pilot-scalewastewater treatabilitystudy

• Design of a full-scalewastewater treatmentplant

TSB Enterprises, Inc. – afood processing companyengaged in the production offruit juices and bakeryproducts.

• Pilot-scale wastewatertreatability study

Central Macaroni, Inc.(CENMACO) – a foodprocessing companyengaged in the production offruit juices.

• Full-scale upflow anaerobicsludge blanket reactor

Syscore Corporation – afood processing companyengaged in the processing oftomato paste, pork andbeans, and health drinks.

• Full-scale wastewatertreatment facility

Fitrite, Inc. – a foodcompany engaged in themanufacture of shrimp pasteand fish sauce.

• Waste audit• Full-scale wastewater

treatment facility

Kemwerke, Inc. – anindustrial chemical plant.

• Waste audit• Evaluation of the existing

wastewater treatmentplant.

Liquid Waste Management

TECHNOLOGIES for LIQUID WASTEMANAGEMENT

17

Introduced in 2002,the Enterprise Modules (EMs)are based on the concept ofa demonstration of atechnology in its optimizedfeasible capacity that smallentrepreneurs can easilymanage, readily adopt andcommercialize. It initiallyenables an entrepreneur toproduce enough products formarket testing and identify amarket niche for hisproducts until such time thatit can compete in thecommodity market.

The Institute launchedthese modules through aPress Conference at theTraders Hotel on 2 July2003. The PressConference aimed topromote greater publicawareness and solicitsupport from media, whowould then be ITDI’sfirst-line advocates for thepromotion of the EMs. Thefollowing were presented:accelerated production ofvinegar, sweetenedcalamansi juice concentrate,smoked fish, virgin coconutoil, and bath soap. As aresult, ITDI receivednumerous inquiries and visitsfrom interestedentrepreneurs, anunexpected turnout. Whatwas more encouraging wasthat a number of clientshave immediately enteredinto MOA/CLs for adoption ofthe technology.

STATUS/UPDATES

Accelerated VinegarProduction

The equipment systemfor the production ofaccelerated vinegar has beendown-sized to replace thetraditional/importedlarge-scale equipmentsystem for vinegarproduction. Its featuresmake it appropriate for smallbusinesses: easy to operate,can be set up in thecountryside and requiresminimum processing area.The process allows harvestof vinegar within seven (7)days and daily withdrawalthereafter from thefermentor. The traditionalfermentation process takestwo (2) months prior to 1st

harvest. The acetator canconvert sugary materialssuch as coconut sap,pineapple wastes,sugarcane, and spent syrupfrom dried mangoes intovinegar.

The EM packageincludes the acetator kit,technology training andtechnology managementassistance. It costsapproximately P16,000.00.From the time it waslaunched, ten (10) adoptorshave availed of thetechnology, as follows:

• DMMSU, Batac, IlocosNorte - 1 unit 200-Lcapacity vinegar fromtomato paste processingwastes

• CAPUCHIN FRIARS,Tagum, Davao del Sur-5 units 200-L capacityvinegar from coconut sap

• LLM Trading, Solano,Nueva Viscaya -1 unit200-L capacity vinegarfrom coconut water

• CITY COOPERATIVE,Santiago, Isabela - 1unit 200-L capacityvinegar from sugarcanejuice

Enterprise Modules

18

• CHARI ALCASEBA,Ozamis City, MisamisOccidental- 1 unit 200-Lcapacity vinegar fromcoconut water

• MARLON AGUILAR,Negros Oriental - 1 unit200-L capacity vinegarfrom coconut water

• PANTALEON CUNANAN,Surigao del Sur - 1 unit200-L capacity vinegarfrom coconut water

• WARLITO PALMONES,Pagadian City,Zamboanga del Sur - 4units 200-L capacityvinegar from coconut

• DR. MAQUIZO, GingoogCity, Misamis Oriental -1unit 200-L capacityvinegar from pineappleprocessing wastes

• ARTHUR CHAN, OzamisCity, MisamisOccidental- 1 unit 200-Lcapacity vinegar fromcoconut water

Sweetened CalamansiJuice Concentrate

The EM for theprocessing of calamansi tosweetened juice concentrateconsists of a simpleproduction line of equipmentthat can process 500 kiloswithin an 8-hr operationwithout the requirement of10 laborers to do the manualsqueezing. The productionline consists of a hydraulicpress, filter with stainlesssteel trays, a thermal kettle,and a filling machine. All ofthese were designed andfabricated by the foodprocessing engineers ofITDI. The entire productionsystem is modular andmobile hence can betransported to areas nearthe calamansi farm to takeadvantage of the peakmonths of the fruit andprotect the farm gate priceof calamansi as well.

The EM has beentransferred under acollaborative R&D contractwith the Aklan StateUniversity and the ProvincialGovernment of Lanao delNorte. The latter hastransferred the technology toPIELSADAI, a localcooperative of calamansigrowers in Lala, Lanao delNorte. Moonbake Inc. in LasPiñas has also adopted thetechnology.

19

Smoked Fish

The in-house facilityfor smoked fish productionhas a capacity of 150 kg fishfor an 8-hr shift and featuresa sanitary processing areawith an easy-to- operate-and-maintain fixed concretesmokehouse. Thesmokehouse has amechanism for the control ofsmoke within the chamberand allows for adding/discharging of smokingmaterial without disruptingthe smoking of fish atanytime. While traditionalsmoking uses bamboo trays,this EM uses stainless steeltrays to comply with GMP.

This EM is available forpilot testing or for lease atthe Food Processing Divisionof the Institute. At least twotechnology adoptors haveleased the facility forbusiness incubation.

Virgin Coconut Oil

The virgin coconut oil(VCO) has been known forages for its medicinal valueand health benefits. It couldbe produced using the dry orwet method. Bothtechnologies have beendeveloped but the modifiedwet method has beenpromoted this year. At leastseventeen (17) clients haveindicated interest incommercializing thetechnology, for which theyunderwent training at theInstitute (modified wetmethod)

EMs .....

20

Soap MakingTechnology by ColdProcess

Two facilities havebeen established at the CMDbuilding for demonstration,training or lease tointerested parties. Twoentrepreneurs have adoptedthe technology.

Process Engineering

The Food ProcessingDivision of ITDI in particular,offers a wide array ofprocess engineering servicesto the local food industry andother institutions interestedin setting up or improvingtheir processing infra-structures. These serviceswill provide firms withappropriate technicalassistance to improveproduct quality andproductivity in theiroperations, enable them tocomply with stringentSanitary and PhytosanitarySystem (SPS) requirementsof international tradingunder the World TradeOrganization (WTO). Thefood process engineeringservices are as follows:

Food EngineeringServices• Process optimization &

product redesign• Development of enterprise

modules• Development of

appropriate equipment

Production Scale-Up• Pilot testing/Pilot

production• Lease of facilities• Capability building

(Equipment Installation)

Establishment ofProcessing Plant Facilities• Site inspection & layout

design• Construction monitoring &

assessment• Equipment installation &

testing

• Pilot operation and plantturn over

Other Interventions

• Plant audit/Inspection forcompliance to GMP/HACCPRequirements (includingCP Assessment & EnergyAudit) & Productivityassessment

• Technical advisory andInformation dissemination

Some of theappropriate equipmentdeveloped and fabricated byITDI through the processengineers of the FPD and thecorresponding clientsbenefited are as follows:

Water Retort

• NATIONAL DAIRYAUTHORITY, DAVAO

• FESTIVE FOODS (formerlyJO-NAS)

• DALISAY SWEETS• PENTAGON

AGRIBUSINESSCORPORATION

Universal Fruit JuiceExtractor

• AKLAN STATE UNIVERSITYCOOPERATIVEBanga, Aklan

• LGU-LALA, LANAO DELNORTE

• TRI-TEA FOOD PRODUCTS

21

Corn De-kernellingMachine

• PENTAGONAGRIBUSINESSCORPORATION

Double-Jacketed Kettle

• AKLAN STATE UNIVERSITYCOOPERATIVEBanga, Aklan

• LGU-LALA, LANAO DELNORTE

LPG-Heated Cabinet Dryer

• SPRIGS• GRACIAS

Spray Dryer

• NATIONAL DAIRYAUTHORITY

• PETER MANLICLIC• STO. NINO HERBAL

PRODUCTS• CUENDA MFG.

Drum Dryer

• TENTAY MFG.• RITA RITZ

PostharvestHandling/Near FarmProcessing

This program providesencompassing solutions toproblems on maintainingquality and extending shelflife of a crop from the timeand place of harvest to thetime and place ofconsumption, with minimumloss, maximum efficiencyand maximum returns to allconcerned. The programtouches on findingalternative solutions forseasonality of crops toensure continuous supplyand more importantly,ondeveloping value addedqualities to the product.

ITDI, through itsMaterials Science Division,has recently introduced theuse of zeolite-coatedModified AtmosphericPackaging (MAP) filmtechnology in retarding theripening process of fruits andvegetables for export.Performance tests wereconducted on Philippinecarabao mangoes for exportand results indicated anextended shelf life andmaintenance of freshness,aroma, and distinctive taste.The “saba” variety of bananawas also subjected to testsusing the technology, withencouraging results.

EMs .....

22

The ultimate goal indeveloping technologiesthrough R&D is to be able totransfer the research resultsto end users. This year, newstrategies and mechanismsfor the effective transfer oftechnologies have beenemployed including thecreation of varioustechnology transferprograms suited to currentindustrial needs and to theeconomic situation of thecountry.

ITDI has transferredfor commercialization 12technologies (generic and/orinnovative) to 17 technologyusers. These technologiesare 2-ton capacitybioreactor; 500-kg capacitybioreactor; acetator kit foraccelerated production ofvinegar; dried mango andpineapple processing; nonijuice production; sweetenedcalamansi juice concentrate;herbal bath soap production;candle making; oystermushroom production;canned ginataang halo-halo;canned ginataang mais; andcanned ginataang munggo.The most saleable isaccelerated production ofvinegar.

Anent contractprojects with the privatesector, 23 technologytransfer projects wereundertaken this year, seven(7) of which weresuccessfully completed:• Commercial Scale

Production of CalamansiConcentrate with AklanState University, Bunga,Aklan and DOST RegionVI, Iloilo.

• Setting Up of a FoodProcessing Plant at Jordan,Guimaras with OBDTrapppist Monastery andDOST Region VI

• Production of Noni Juicewith Akamine CitrifoliaJuice Enterprises, MakatiCity

• Production of 3000Kilograms Noni Juice,Technical Consultancy andTraining on GMP AkamineCitrifolia Juice Enterprises,Makati City

• Demo-Test Run ofITDI-DevelopedAccelerated CompostingTechnology with Brgy.Ayala Alabang, AyalaAlabang Village,Muntinlupa City

• Establishment of a MicroEnterprise Food ProcessingIndustry with DOST 10,TESDA-10, DTI-10, andProvincial Government ofLanao del Norte

• Commercial ScaleProduction and Promotionof Sweetened CalamansiJuice Concentrate withDOST 10 and ProvincialGovernment of Lanao delNorte.

Through lecture-demo, walk-in and phoned-ininquiries, ITDI is able todiffuse information onavailable technologies. Forthe year, the Institutediffused a total of 113technologies (103 existingtechnologies and 11 newtechnologies) to 1358potential adoptors. Majorityof the lecture-democonducted on requestinvolved advanced aromaticand decorative candlemaking.

Systems improve-ment, particularly on the useof application of electronicprocessing tools, was appliedin the Institute Library forautomation andstrengthening of its services.Approximately 2000traditional card catalogswere retro-converted toelectronic catalogs and 7000books and publications werebar coded. The ITDI Libraryhas adopted the IntegratedLibrary Management System(ILMS) Program in theelectronic processing of itsholdings. With the program,card catalogs, inventory list,library patrons, andacquisition list can now beeasily generated.

The InstituteManagement InformationSystem (MIS), together withthe Divisional Web-PageRepresentatives haverestructured and reformattedthe ITDI Website.Restructuring andreformatting was done tomake navigation easy andappealing to clients, as wellas for uniformity/standardization of divisionalweb pages. of the Institute’sdivisions. In addition, theITDI website now includessearch engine for access ofthe STD Tests and AnalysesFees, which are mostfrequently asked.

Tech. Transfer Program/Info. Tech.

23

• The Provincial Governmentof Lanao del Norte (PGLN)implemented its “OneVillage-One ProductProgram” to providelivelihood programs for itsconstituents usinghome-grown resourcesand products. Initially, theproject recipients werefarmer members of thePinuyak Cooperative. TheITDI, in coordination withDOST Region 10, providedtechnical assistancethrough training, set upand installation ofproduction equipment,among other things.Training programs wereconducted specifically onunsweetened calamansijuice concentrate (EM) andfish processing, inclusiveof GMP.

• The Aklan State University(ASU) Food ProcessingCenter, Banga, Aklanhandled the operation ofthe enterprise module onsweetened calamansi juiceconcentrate. Thisincreased the productioncapacity of the centerbenefiting their kalamansigrowers, who supply theraw materials.

DOST Enabled Facilities & Organizations thatProvide Technological Services

24

The ofOfficial Drink

PALARO 2003

JuiceCalamansi

Savor the natural

bitter-sweet taste

of calamansi

Natural & refreshing

Excellent for athletes

Savor the natural

bitter-sweet taste

of calamansi

Natural & refreshing

Excellent for athletes

Processed & Packed by the

Lemon Growers Association of

Lala, Lanao Del Norte

O’ Lala

• Testing and Calibration

ITDI, through itsStandards and TestingDivision (STD) and NationalMetrology Laboratory(NML), provides clients fromindustry and other sectors ofthe economy a wide array oftechnical services, namely:testing and analyses ofmaterials and products,calibration and repair ofmeasuring instruments,formula of conversion, andbreeding and maintenance ofquality experimentalanimals.

For this period, theseDivisions rendered anaggregate of 11,251technical services to 2,864clients, which contributed tothe national coffers anincome of PhP 13.2 Million,an increase of almost 12%from last year’s income fromtechnical services. Income isexpected to increase furtherin 2004 with the phasing-inof new tests, namely:toxicity tests (leachable leadand cadmium) in plastic andmetallic food containers, testfor lycopene, test for aminoacids (serine, alanine,aspartic acid, glutamic acid,asparagines, histidine,arginine, & tyrosine),Polycyclic AromaticHydrocarbon (PAH) analysis,Limulus Amebocyte Lysate(LAL) test for identification ofendotoxins, vibration test,and drop test.

• Other TechnicalServices

The R&D Divisions ofITDI likewise provide theirshare in the technicalservices rendered to clientsin their respective sectorsthrough joint ventures whichfall under T.S. and arecovered by contractagreements. These includetests and analyses, designand fabrication ofequipment, industry trainingand skills development, useof laboratory/pilot plantfacilities, cleaner productionassessment, energy audit,package development andlabel design, shelf lifestudies, and technologybusiness incubators, amongother things. For this year,ITDI entered into 478contracts for non-R&Dtechnical services, whichcontributed PhP 2.7 Million inincome.

• Information Services

ITDI also providesconsultancy, information andlibrary services. For theyear, 103 consultancy and2088 information and libraryservices were rendered toclients. Majority of theclients consulted on theproduction of beauty andhealth care products (herbalbath soap, shampoo, lotion,and cream), processing ofcarrageenan, virgin coconutoil, accelerated vinegar

S&T Services

25

production, feasibility studypreparation, and calamansijuice processing.

It was a good year formarketing and promotion ofITDI’s capabilities, productsand research & developmentand technical services. ITDItook a bold step andwidened its circle of mediafriends while continuallynetworking with its long-timeset of media friends. Itaggressively tappedadditional venues for printand broadcast media.

This year, ITDI wasable to penetrate prestigiousmagazines with internationalcirculation likeENTREPRENEUR, PILIPINOREPORTER andAGRICULTURE. In thesemagazines, the Institutefeatured success stories oftechnologies and takers,such as mushroomtechnology and Moonbakecanned viands, lambanog,mango leather, essentialoils, etc., as well assuccesses resulting fromtechnical interventions. ITDIalso featured 11 simpletechnologies: How Tos in MR& MS MAGAZINE. In theOctober 2003 Issue of theFEDERATION OF ASIANCHEMICAL SOCIETY (FACS)Magazine, Volume No. 2, theSpecial Topic entitled,“Introduction on Philippines’Industrial TechnologyDevelopment Institute” wasfeatured. ITDI has assuredgreater mileage in theinternational market throughprint media. A total of 87press releases werefacilitated for the year.

For broadcast, ITDIhas enhanced linkage withSA KABUKIRAN, sustainedthe latter’s interest bycontinuously coordinating forinterviews. Through DOST, ithas inked a pact withBUSINESS CAFÉ, a dailyprogram over DWBR,104.3-FM Band and DZHH,Armed Forces Radio for

techno-business venturesand successes. These, inaddition to the usual radiostations, which ITDI hasbeen comfortable with incontinually sendingmaterials, namely: BAGOYAN AH (DZMM); RADYOMAGASIN (DZRM); TALINOPARA SA MASA (DZRB); andJOURNEY TO DISCOVERY(DZEC). TV Stations in whichITDI continues to enjoyexposure are MUB-overABS-CBN Channel 2,ENTREPINOY-IBC 13, andChannel 5.

ITDI likewiseparticipated in exhibits andtechno-fairs, as follows: 2nd

Phil Food EXPO ’03 at the SMMegaTrade Hall; Conferencefor Solid Waste Management(Poster Exhibit) at the PICC;Press Conferences atRembrandt and TradersHotels for the launching ofthe Bioreactor 500 andEnterprise Modules,respectively; DOST AnnualNational Science andTechnology Fair; DOSTMindanao Cluster S&T Fair;and the launching of theBioreactor 500 in PagadianCity/Seminar on WasteManagement in Ozamis City(Poster). These exhibitsprovided excellent venuesfor the promotion of thetechnologies and services ofthe Institute.

• Training

A total of 136technology trainingprograms were conducted bythe Institute. These includethose held in the regions andwith the TechnologyLivelihood Resource Center(TLRC). The technologiesinclude ampalaya tea,mango halves in syrup, resinbonded artwares, candle,soap, fish, ceramics, fruitprocessing, mini-oil refining,and Good ManufacturingPractices (GMP). A total of2566 participants weretrained this year.

26

To be able to build onits competence on R&D andS&T-related services, theInstitute’s continuing humanresources developmentprogram ensuresopportunities for itsresearchers and supportpersonnel in acquiringexpertise and in enhancingknowledge and skills. TheInstitute’s manpower poolhas always been its potentresource for achieving itsgoals.

This year, onerecipient of the DOSTscholarship grant from theInstitute graduated with aMasters degree in FoodScience from the Universityof the Philippines, Diliman,Quezon City. Conversely, 17from the ITDI staff (13continuing and 4 newstudents) are finishing theirgraduate studies leading toMasters and Doctoratedegrees. Fifteen of thesegraduate students arerecipients of local scholarshipgrants, 11 of which are fromthe DOST Staff DevelopmentProgram, 3 from ITDI StaffDevelopment Program, and1 from the Philippine Councilfor Advanced S&T Researchand Development

(PCASTRD). Two researcherspursued M.S. in FoodScience and Ph.D. in PolymerEngineering abroad throughscholarship grants awardedby reputable organizations inAustralia and Korea,respectively.

To foster professionaladvancement and enhanceskills in their respectivescientific disciplines, theInstitute made possible theattendance of 1792employees to 113 training/seminars/workshops/conferences here andabroad. Twenty-four of thetraining courses weresponsored by foreignorganizations and heldabroad. The venues includeJapan, Thailand, Switzerland,Singapore, Korea, Australia,and the United States ofAmerica.

S&T Human Resources Development

Personnel Profile

(As of December 2003)

Male Female Total

By Itemized PositionsFilledVacant

By Status of AppoinmentPermanentContractual/Casual

By Educational AttainmentDoctorate DegreeTechnicalNon-Technical

178

19217814

440

24923118

532

55140914244140932

972

Master’s DegreeTechnicalNon-Technical

17152

45414

62566

Bachelor’s DegreeTechnicalNon-Technical

78717

16313825

24120932

Technician DiplomaHigh School Level & Below

1065

022

1087

27

Research visits ofthree (3) researchers toJapan under the JapanScience Promotion Society(JSPS) Exchange Programwere made possible duringthe last two quarters of theyear to promote greatercooperation andcollaboration in chemicalsand materials science R&D ofboth countries. Continuingassociation of ITDI staff withlocal and international S&Torganizations to enhanceexisting linkages and to keepthem abreast with currenttrends and issues in the S&Tarena was similarlysupported throughattendance to meetings,symposia, conventions, andfellowships. Twenty-four ofthese local and foreignactivities were participated inby the staff this year.

The Institute’stechnical seminar seriescontinued to regularlyprovide a venue forinformation exchange as wellas fellowship among itsresearchers. This program,which started in 2001consists of scientific paperpresentations and echoseminars on short-termtraining courses availed oflocally or abroad by ITDIpersonnel. For the year, five(5) technical seminars wereconducted for ITDIpersonnel. The topics wereon temperature metrology,wastewater treatment,construction of clay-linedsanitary landfill, andrainwater harvesting as auseful practice to improvewater supply andenvironment.

28

S&T human resources .....

• Science LegislativePolicy Advocacy

ITDI, through itsNational MetrologyLaboratory (NML), draftedthe National Metrology Billand presented this tolawmakers in 1998. InNovember 2003, the Senateand House ofRepresentatives in Congresshave finally ratified this billas Republic Act No. 9236,which shall be known as“The National Metrology Actof 2003”. This Act is due forofficial signing by PresidentGloria Macapagal-Arroyo.

The NationalMetrology Act of 2003establishes a nationalmeasurement infrastructuresystem (NMIS) formeasurement standards thatare internationally traceableand consistent with theMeter Convention. The NMIScovers units ofmeasurement, measuringinstruments, measurementstandards, their applicationand metrological controls,establishment of a laboratoryaccreditation system, and asystem of appropriatepenalties.

This Act also created aNational Metrology Board(NMB) to be chaired by theDOST Secretary while theITDI is mandated to serve asthe Board’s Secretariat. TheNML, which exists as thelaboratory arm of the ITDI,is likewise maintained tocarry out the technical,calibration and laboratoryfunctions to effectivelyimplement the provisions ofR.A. 9236.

• Enhancing InstitutionalImage

While ITDI continues tostrengthen its R&Dinitiatives, it likewise pursuesprojects that would createopportunities for theInstitute to enhance itsimage as an Institution. Oneof them is the improvementof the building infrastructureof the Standards and TestingDivision (STD). This initiativeis intended to increase thetesting capacities of theInstitute to be able to housemore state-of-the-artequipment to give clients allthey need from a responsivenational testing laboratory.ITDI is also preparing STD tobecome another venue forequipment suppliers in thecountry to showcase theiravailable modern testingequipment.

A year after obtainingan ISO/IEC 17025accreditation, the STDMicrobiological Laboratory isnow recognized by theBureau of Food and Drugs(BFAD) of the Department ofHealth under its LaboratoryRecognition andAccreditation Program.

To provide STD withsound bases for its continualimprovement and attest toits high credibility, it hasbeen participating inproficiency testing programs,which are organized byinternational serviceproviders such as theNational Association ofTesting Authorities (NATA) ofAustralia, Jabatan Kimia ofMalaysia, Hong KongLaboratory AccreditationScheme (HOKLAS,InternationalAccreditation-New Zealand,and the Asia-PacificLaboratory AccreditationCooperation.

S&T Governance

29

The ITDI maintainsscientific linkages andinternational cooperationwith different organizationsto facilitate informationexchange and bring aboutopportunities for thedevelopment of R&Dprograms of mutual interest,expert/consultancy servicesand exchange visits. Inaddition, these linkages helpthe Institute generateresources for researchthrough funding assistanceand equipment grants andprovide opportunities fortraining, attendance toconferences andconventions. Scientificlinkages and internationalcooperation wereaggressively pursued by theR&D Divisions and thePrograms/Centers of theInstitute.

To mention a few, thefollowing are the R&Dprojects jointly implementedwith international institutionsthis year:

• Upgrading of the GlassLaboratory and Pilot Plantof the Materials ScienceDivision - JapanInternational CooperationAgency (JICA)

• Harmonization ofDurability Standards andPerformance Tests forComponents in BuildingMaterials in TropicalCountries –Commonwealth ScientificInternational ResearchOrganization (CSIRO)

• Greenhouse Gas Emissionsfrom Industry in Asia andthe Pacific – UnitedNations EnvironmentProgramme (UNEP)

• Determination of Levels ofDioxins, Furans andDioxin-Like PCBs in HumanMilk – UNEP Chemicals

• Asia-Pacific RegionalDioxin Pilot Project(National AwarenessSeminar on Dioxins andFurans) - UNEP

Scientific Linkages & International Cooperation

30

As budget allocationsfor ITDI operationscontinued to decline everyyear, it devised mechanismsto efficiently manage thevery limited resourceswithout sacrificing quality ofservices to its stakeholders.These mechanisms includetapping of foreign grants,local grants- in-aid, andincreasing academe andprivate sector participation inR&D.

For the year underreview, ITDI expended fromits regular appropriationsthrough the GeneralAppropriations Act (GAA) atotal amount of PhP152.88Million. The largest portion(78%) was used for paymentof Personal Services (PS).Maintenance and OtherOperating Expenses (MOOE)accounted for 20% whileCapital Outlay (CO) for ameasly 2% of the totalexpenditures. From thesefigures, it can be clearlygleaned that releases offunds for operations weremerely for salaries andmaintenance.

To be able toimplement new R&D projectsand support these withtimely acquisition ofequipment, supplies andmaterials, ITDI aggressivelytapped other sources offunding such as foreigngrants and local grants-in-aid (GIA) including income/receipts from technicalservices which the instituteis allowed to use. About 69%of total funds contributed bythese sources werechanneled to capital outlayrequirements. Financialrecords also indicated thatfunds provided by thesesources filled in the gap ofPhP63.06 Million or 46% ofthe total expenditurerequirement of the ITDI for2003 in the amount ofPhP215.93 Million. Inparticular, 100% of thefunding requirement forcapital outlay in R&D wastapped from GIA funds. TheDOST-GIA contributed thelargest funding at 89%.

Financial Resources Management

31

INDUSTRIAL TECHNOLOGY DEVELOPMENT INSTITUTECondenced Balance Sheet

For the Fiscal Year Ended 31 December 2003

ASSETSCurrent Assets

Cash PhP 567,220.85Receivables 44,593,599.14Marketable Securities 1,417,400.00Inventories 417,653.46Prepaid Expenses 978,820.62Other Current Assets 14,011,014.33 PhP 61,985,708.40

Property, Plant & Eqpt.Propety, Plant & Eqpt. 728,182,976.62Less: Accumulated

Depreciation 104,457,090.77 693,725,885.85

TOTAL ASSETS PhP 685,711,594.25

LIABILITIES & EQUITYLiabilities

Current Liabilities PhP 62,666,036.14

EquityGovernment Equity 623,045,558.11

TOTAL LIABILITIES & EQUITY PhP 685,711,594.25

STATEMENT OF CASH FLOWS

Cash Flow from Operating Activities:

Cash Inflows:Receipt of Notice of Cash

Alocation (NCA) PhP247,993,938.00Collection for

Miscellaneous Income 3,443,832.97Receipt of Refunds of Cash

Advances & Overpaymentsof Expenses 112,483.38

Receipt of Inter-agencycash transfers 24,845,588.90

Receipt of Bidders Bond 270,825.37Receipt of Deposit RTID

Training Fund 107,160.35

Total Cash Flows PhP 276,773,828.97

Cash Outflows:Cash payments of

operating expenses PhP168,855,568.93Cash payment of payables

incurred in operations 12,284,193.85Granting of cash advances/

petty cash fund 1,507,465.10Remittance of W/holding taxes

except thru remittance advice 2,202,842.40Remittance of GSIS/PAGIBIG/

Philhealth Payable 20,175,828.45Refund of Performance/

Bidders/Bail Bonds Payable 75,620.87Funds transfer to treasury 67,982,025.21Reversion of unused NCA 807,062.51

Total Cash Outflows (273,890,607.32)

Cash Provided by Operating Activities PhP 2,883,221.65Cash flow from investing activities:

Cash Inflows: PhP 0.00Cash Outflows:Cash Purchase of Equipment 2,422,308.71

Cash provided by investing activities (2,422,308.71)Total cash provided by operating/

investing activities 460,912.94Add: Cash balance, beginning Jan. 1, 2002 106,307.91Cash balance, ending 31 Dec. 2003 PhP 567,220.85

32

Financial resources .....