Ex-Post Monitoring of Completed ODA Loan Project

Philippines
Special Economic Zones Environment Management Project
External Monitoring Consultants: Kazunori Honda / Toyo Tanaka Nakamoto&Associates Co., Ltd

1. Project Description

Project Location

Aerator (Mactan)

1.1 Project Objective

The project’s objectives are as follows: (a) to establish sewage treatment plants (STP) andtreated wastewater reuse facilities in the Special Economic Zones (ECOZONEs) of Mactan,
Baguio City, Bataan and Cavite, and (b) to strengthen the PEZA’s capability in the planning,
regulation, enforcement, and environmental monitoring of the ECOZONEs to promote pollution
control, to improve public wellbeing in the neighboring areas, and to promote investments in thePhilippines.
1.2 Outline of the Loan Agreement
Approved Amount / Disbursed Amount

2,746 million yen / 534 million yen

Loan Agreement Signing Date / Final

March 1997 / July 2005

Disbursement Date
Ex-post Evaluation

2007-2008

Executing Agency

PEZA(Guarantor: Government of the Philippines)

Main Contractor-

Main Consultant

Pacific Consultants International (Japan), TCGIEngineers (Philippines) (JV)

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1.3 Background of Ex-post Monitoring
In 1995, the Philippine government enacted into law Republic Act no. 7916 otherwise known as
the Special Economic Zone Act of 1995 and developmentally restructured the Export Processing
Zone Authority (EPZA) to establish the Philippine Economic Zone Authority (PEZA). The PEZA
manages and operates four (4) public Special Economic Zone (ECOZONES) namely Mactan
Economic Zone (MEZ), Cavite Economic Zone (CEZ), Baguio City Economic Zone (BCEZ) andBataan Economic Zone (BEZ), now Freeport Area of Bataan (FAB). In the ECOZONEs, preferential
treatment for investments, and provision of improved infrastructure and services were offered to
attract business enterprises. As a result MEZ, CEZ and BCEZ were filled to their capacity. As
investments grew in the ECOZONEs, the amount of wastewater and solid waste was expected toincrease, and there was urgent need to prevent pollution in the ECOZONEs. Therefore, theconstruction and rehabilitation of sewage treatment facilities were implemented in the fourECOZONES directly managed by the PEZA.
Although Sewage Treatment Plant (STP) and Wastewater Reuse Facility (WRF) were installed,
the amount of treated water and their operation / utilization rate was low at the time of ex-post
evaluation, and the effectiveness of the project was limited. Further, the ex-post evaluation report
indicated that some areas within Mactan needed repair and/or rehabilitation of the existing sewage
collection system. In Bataan, besides the low locator filling rate, the necessity for construction
and/or renovation of the existing sewage collection system were indicated. In addition,
environmental audit/monitoring, and management and maintenance of the STP and the WRF were
outsourced to private entities. However, at the time of ex-post evaluation, the PEZA had not
outsourced its operations in Bataan, and it continued hiring private engineers and supervising theoperations by itself.

In this context, this project was selected for ex-post monitoring, while placing an emphasis on theanalysis of the operation / utilization rate, number of locators and the situations of the investment in
the ECOZONEs, the external monitoring consultants reviewed the findings from the field survey andthose of other research activities, and deducted a final conclusion.

2. Outline of the Monitoring Study

2.1 Duration of Monitoring Study
Duration of the Study: September 2012 – June 2013
Duration of the Field Study: November 27, 2012 – December 6, 2012

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3. Monitoring Results
3.1 Effectiveness3.1.1 Quantitative Effects
3.1.1.1 Results from Operation and Effect Indicators(1) Sewage Treatment Plant (STP) Operation
Since 2007, the volume of treated sewage and the operation rate of the STP have continued toincrease (Table 1). However, considering the occupancy rate of ECOZONEs in Mactan and Baguio
City, which is near 100%, operation / utilization rate for the STP remains low. According to thePEZA, one of the reasons for low operation / utilization rate is due to the overly ambitious predictionof the sewage volume at the time of planning for the construction of the STP. The initial planassumed the locating companies to be water-intensive manufacturing industries. However, due to thechanges in the business environment in the recent years, ECOZONEs saw an increase in locators of
non-water-intensive industries such as telecommunications service. Further, many locators installed
their own STPs in order to fulfill the requirement for the ISO14001 designation. These are believed
to have led to the sustained low level of the STP's operation / utilization rate.
Furthermore, as indicated at the time of ex-post evaluation, insufficiency of the improvement ininstallation of sewage pipeline network is also a factor in the STP’s low operation rate. Sewage
pipelines in the ECOZONEs require large-scale repairs, but due to budget restraints, the PEZA is
implementing such repairs gradually. The PEZA has already started the procurement for Phase 1(Repair and Rehabilitation of MEZ Drainage and Sewage Collection System Project). PHP 79
Million have been earmarked for Phase 1 and the PEZA plans to complete this project in 2014. Since
these repairs are planned to span several years, their impact on the improvement in the STP’s
operation rate is not yet noticeable.

Table 1. Volume of Treated Sewage (Operation / Utilization Rate) in the ECOZONEs
M actanInstalled Capacity

Baguio15,500

‐

-

1,100
(7%)

‐

495
(33.0%)

1,112(7.2%)

‐

4,700
2009

1,400
(30%)

2011

1,713
(36.5%)

Treated Volume(Operation Rate)

Bataan(unit: m3/day)
Cavite*1,500

Source: PEZA/AFAB*Data for CEZ was not collected since it did not take part in the project.. The same applies to the rest of
this report.

(2) Water Quality of Treated Sewage
The PEZA has made protection of environment one of its main objectives, and has implemented astrict effluent control. Each ECOZONE has its own standards for effluent wastewater in accordance

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with Department of Environment and Natural Resources (DENR） classifications. The project’s
initial objective to improve environmental management has been attained and maintained, as theeffluent's BOD, COD, and SS values, which are indicators for water quality, are below the standard
value (Table 2).
In 2010, Bataan ECOZONE has changed from Special Economic Zone to a Freeport Area, andjurisdiction of Bataan Special Economic Zone has been transferred from the PEZA to the Authority
of Freeport Area of Bataan (AFAB). At the FAB, the effluent water quality is monitored under astandard more stringent than the standard set by the DENR, and the monitored indicator values
collected there are also maintained below the standard (Table 2).

Table 2. Water Quality of Treated Sewage(mg/l)
2008
ActualStandard
BOD
Mactan

COD
TSS
BOD

Baguio City COD
TSSBOD
BataanCavite

COD
TSS
BOD
COD
TSS

19
79
16
6.2
N/A
4.81
11.22
N/A
4.18
-

2009
ActualStandard

100
200
150
50
100
70
30
60
50
-

3.7
46
14
7.74
N/A
7.79
17
N/A
4.5

100
200
150
50
100
70
30
60
50

-

-

2010
ActualStandard

4.7
50
9.5
9.86
49.67
6.76
21.5
N/A
8.25
-

2011
ActualStandard

100
200
150
50
100
70
30
60
50
-

7
54
12
13.4
39.6
14.4
29.5
N/A
10.5
-

100
200
150
50
100
70
30
60
50
-

Source: PEZA/AFAB, JICA

In FAB, BOD in 2011 was 29.5mg/l which is near the effluent standard which is 30mg/l. This wasdue to one locator company, which was not properly pre-treating the influent that was released to the
STP. The AFAB instructed this company on sewage treatment after the incident, and the problem
were resolved at the time of ex-post monitoring.

(3) Water Supply and Consumption
Table 3 shows the amount of water supply and consumption of each Special Economic Zone. At
the time of ex-post evaluation, there was a concern for the lack of water in Mactan. However, thedata for the water supply in Mactan was not available, since the aggregate water supply data is notcollected on a regular basis. According to an interview with the officials conducted at Mactan, it was
revealed that Mactan is currently provided with ample water through three water pipelines fromneighboring Cebu Island, and there is no longer any concern over the shortage of water. In Bataan,
the water is transported from a dam located within the FAB, hence, there is no concern over water
shortage, either.

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Table 3. Potable Water Supply and Consumption(1,000 ㎥/year)

Mactan2010
2011

Water Supply
Water Consumption
Water Supply
Water Consumption

Baguio City

N/A
17,098
N/A
N/A

Bataan

1,167
1,096
1,111
916

N/A
700
N/A
2,561

Cavite

6,890
6,890
-

Source: PEZA/AFAB(4) Volume of Recycled Water
After reviewing the status of wastewater reuse in Mactan, it was found that, since 2009, thenumber of the companies using the recycled water had been slowly increasing. (Table 4) 13 out of
105 companies (12.4%) were using recycled water in 2009, and 17 out of 114 companies (14.9%) in
2011.
Use of recycled water is free of charge. However, in order for companies to use recycled water,
additional investment is necessary to install an additional interior pipeline to connect to the recycledwater pipeline. Also, the use of recycled water is restricted to limited use, such as watering the plants
or flushing the toilet. In this context, most locator companies do not feel the incentive balances withthe required investment. In addition, the fact that the problem of water shortage in Mactan has
already been eliminated has also contributed to the low usage rate.

Table 4. Volume of Reused Water(㎥/day)Dec-09Installed Capacity of WRF
Actual Usage

2011 Average
1,269

1,269

340

414

Source: PEZA

(5) Water Quality of Recycled Water
No problem was detected regarding the quality of recycled water. Since 2009, water quality ofrecycled water has always been maintained and its values stayed below the standard. In the project,
the PEZA is paying particularly close attention to the maintenance of water quality. Problems of soil
pollution or of odor due to the use of reused water have not been reported.

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Table 5. Water Quality of Reused Water(mg/l)
BOD
3.0
4.7
6.1

2009 Average
2010 Average
2011 Average
Standard
Source: PEZA

10.0

(6) Volume of Treated Solid Waste
There were no revisions to the “Republic Act No. 8749”, enacted in 1999, which prohibits the useof incinerator. Construction of a new incinerator for solid waste disposal has not been implemented.
There is no change in the methods for treating solid waste in Mactan or Baguio since ex-post
evaluation. Although Bataan's jurisdiction changed from the PEZA to the AFAB, there is no change
concerning the method of solid waste disposal.

Table 6. Volume of Treated Solid Waste
M actan
Disposed amount in
disposal sites
Collection & Disposal

Baguio City
34.4

PrivateContractor

0.36
PrivateContractor

Bataan(tons/day)
CaviteN/A

N/A

PrivateContractor

PrivateContractor

Source: PEZA/AFAB

In Mactan, solid waste is collected by approved contractors and disposed at waste disposal sites
approved by the DENR. Baguio's solid waste is collected and sorted by approved contractors anddisposed at the municipal disposal site. In Bataan, solid waste is collected by approved contractors
and disposed at the ECOZONE's disposal site.

From the above indicators, concerning the water quality of treated sewage and recycled water, theprocess is properly managed to keep the water quality indicators below the pollution standard.
Therefore it can be concluded that the effect of environmental protection continues to take effectsince the time of ex-post evaluation. On the other hand, in considering the STP and the WRF, theamount of treated sewage is consistently low compared to the capacity of the facilities, though theincreasing trend has been seen. However, there have been significant changes in the surrounding
environment since the appraisal of this project. In this context, the selection of the operation /utilization rate of the STP as the only indicator to measure the effectiveness of this project isquestionable. (See Lessons Learned (2))

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3.1.1.2 Results of Calculations of Internal Rates of Return (IRR)
Re-calculation of Internal rate of return (IRR) will not be performed due to the fact that IRR was
not calculated at the time of ex-post evaluation.

3.1.2 Qualitative Effects
Awareness for environmental protection has continually been sustained since ex-post evaluation.
According to the interview with the PEZA personnel, this project has contributed to pollution
prevention and water preservation. No trouble with residents in surrounding areas has been reported.
In addition, although the project is not the only factor, the occupancy rate of Mactan and Baguio isnear 100%.

Sedimentation Tank (Bataan)

Faucet for Reused Water (Mactan)

3.2 Impact
3.2.1 Intended Impacts
3.2.1.1 Number of Locators(1) Mactan Economic Zone
Special Economic Zone is almost filled to its capacity, although fluctuation can be seen in thenumber of locators. There is a waiting list for companies wanting to locate in the ECOZONE. The
number of locators is stable, but change can be seen in the locator's type of industry. At the time of
the appraisal of the project, locators were expected to be mostly manufacturing industry. Recently,
there are companies from different industries including call centers, warehouses, and real estate.

(2) Baguio City Economic Zone
There are no significant changes in the number of registered locator companies in real term since2007, though, in the statistics, a significant increase in the number of locators can be seen in 2011.
This is due to the fact that the number of permit locators, which are companies that perform support

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services such as maintenance and cleaning for registered locators, were added to the number ofregistered locators in the Special Economic Zone. Therefore, there is no change in the number ofcompanies registered in the ECOZONE.

(3) Freeport Area of Bataan
Number of companies has remained at a constant level. The number has not shown significant
fluctuation since the time of the ex-post evaluation. Reasons include the location of Bataan, which isfar from a port, and the development of numerous private ECOZONEs which has contributed to thiscause. Filling rate continues to be low compared to the capacity of the ECOZONE.
Decrease in the number of locators was seen between 2007 and 2010, during which thisECOZONE was under the PEZA jurisdiction. However, after the transfer from ECOZONE to FAB,
the number of locators has increased from 39 to 54, which is the same level as at the time of ex-post
evaluation.

Table 7. Number of Locators
2007

2008

2009

2010

2011

M actan

120

123

113

117

114

Baguio City

22

21

21

27

41

Bataan

53

42

43

39

54

Cavite
Total

-

195

186

177

183

209

Source: PEZA/AFAB

3.2.1.2 Investments from Locators
Investments by locator companies were also made continuously since 2007. Investments in
Mactan and Baguio have increased since 2007. Investments in the ECOZONE are made throughactivities of locators such as moving, renovation of existing company facilities, and construction of
new facilities. Increase in the investments in Baguio in 2010 and 2011 were due to construction of
new manufacturing plants by Moog Controls Corporation.

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Table 8. Investments by Locators
2007

2008

2009

2010

(1 billion pesos)
2011

M actan

0.78

1.37

2.87

0.97

4.47

Baguio City

3.60

0.41

0.18

18.21

16.50

0.00

0.48

Bataan

N/A

N/A

N/A

Cavite

-

-

-

Total

(4.38)(1.78)(3.05)

19.18

21.45

Source: PEZA/AFAB*() are reference values since Bataan is not included.

3.2.1.3 Employment in the ECOZONEs
Number of employment in the City of Baguio and Mactan has been maintained at a high-level,
and has increased from the time of the ex-post evaluation. On the other hand, in Bataan, the number
continues to be low in accordance with the number of tenant companies. However, as a result of thetransfer of Bataan ECOZONE to the AFAB in 2010, slight increase was seen in 2011.

Table 9. Employment in the ECOZONEs
2007

2008

2009

2010

(1,000 persons)2011

M actan

50.5

47.1

43.7

51.9

58.6

Baguio City

7.0

8.0

8.6

9.8

9.2

Bataan

15.5

12.3

13.4

12.6

12.8

Cavite
Total

-

73.0

67.4

65.7

74.3

80.6

Source: PEZA/AFAB

3.2.2. Other Impacts
3.2.2.1 Social and Environmental Impact
There is no change from the time of ex-post evaluation in Baguio and Mactan. In Bataan, as thejurisdiction was changed from the PEZA to the AFAB, former PEZA engineers, under thesupervision of the DENR and the AFAB, are implementing the operation and maintenance of the
STP. An outsourced contractor engages in the daily management of the STP and the WRF andmonthly activity reports are submitted to the PEZA / AFAB.
Environmental investigation/monitoring of the effluent from the STP is performed by outsourced
contractors. In principle there is no change in the supervisory role of the DENR, PEZA/AFAB, andmandatory monitoring results are submitted to the DENR and the PEZA/AFAB. This environmental
investigation/monitoring system are implemented not only in the public ECOZONEs, but also in the

2-9private ECOZONEs under the supervision of the PEZA.
In conclusion, there are no negative environmental or social impacts in the ECOZONE/FAB areas.

3.2.2.2 Land Acquisition, Relocation
There were no resettlement or land acquisitions.

In addition to the significant contribution by this project to the number of locators, investment
from locators, and employment, especially in Mactan and Baguio, the impact of the rise inenvironmental awareness is evident not only in the four ECOZONEs under PEZA jurisdiction, butalso in the private ECOZONEs.

3.3 Sustainability
3.3.1 Structural Aspects of Operation and MaintenanceManagement organizations in the Freeport Area of Bataan have changed, and the operation andmaintenance of wastewater treatment facilities have been outsourced to private contractors. However,otherwise, there have been no major changes since ex-post evaluation. Operation and maintenancesystem is functioning appropriately. In Mactan and Baguio, operation and maintenance have been
outsourced to private companies under the supervision of The PEZA’s responsible departments.
Bataan’s managing organization changed from the PEZA to the AFAB in 2010. The AFAB engineersfrom the time of the Export Processing Zone Authority (EPZA, predecessor of the PEZA) areengaging in operation and maintenance as external contractors. Environmental monitoring results are
required to be submitted to the PEZA/AFAB and DENR. All the data and monthly reports submitted
by the contractor is stored and being utilized for maintaining and improving the water quality.

3.3.2 Technical Aspects of Operation and MaintenanceTechnical training for operation and maintenance has been carried out continuously from the timeof ex-post evaluation, and no major problem has been recorded. For each ECOZONE, operation andmaintenance of the facility have been entrusted to private contractors, and there have been no reportsof technical problems or major breakdowns of the facilities. Environmental training (which covers
the Clean Water Act, Water Standards and Monitoring, Environmental Laws) is being conducted on aregular basis to the staff of the PEZA/DENR. In Mactan and Baguio, staffs of Environmental Healthand Safety Division (EHSD) receive two-day seminars on Clean Air Act, Clean Water Act, solid
waste management, and hazardous waste management at least once a year. In FAB, internal training
by engineers and operators is being held on a daily basis.

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3.3.3 Financial Aspects of Operation and Maintenance
The PEZA has ensured sufficient profit in operating profit and profit after tax over the past 8 years.
No problem can be found concerning the financial status. (Table10) According to interview with the
PEZA, there were no abnormal or extraordinary expenditure that would have impact on the financial
situation. (Table 11)
Setting and collection of sewage treatment fees and wastewater reuse fee of Mactan, which wasunder deliberation in 2007, has not yet been implemented. (Table 15) The matter is still underdeliberation. In BCEZ and FAB, sewage treatment fee has been levied continually from 2007.

Table 10. Financial Condition of the PEZA
(1,000 pesos)
2011

2007

2008

2009

2010

Income7,177,081

6,389,471

5,509,578

6,257,862

7,075,661

Expenses

6,256,809

5,658,067

5,182,953

5,660,664

6,169,785

Income from Operations

920,272

731,404

326,625

597,198

905,876

Other Income (Expenses)

72,521-314,974

196,960-3,720127,810

Income Tax

304,350

117,015

151,042

172,556

293,571

Net Income

688,444

299,415

372,542

420,923

740,116

Source: PEZA

Table 11. Breakdown of Expenses(1,000 pesos)
2011

2007

2008

2009

2010

Personnel Expenses

367,566

367,327

495,775

567,138

561,047

M aintenance andOperation Expenses

5,889,243

5,290,740

4,687,178

5,093,526

5,608,738

Source: PEZA

On the contrary, the AFAB is in a state of deficit in its income and net income since its inception.
(Table 12, Table 13) Under the new law (Republic Act No. 9728), the AFAB should receive a 500
million pesos budget annually for the five (5) years after its establishment, as subsidy from thePhilippine government. However, no such budget was received in 2010 and only 100 million pesos
was approved in 2011. The AFAB has requested for an allocation of five hundred million from thePhilippine Government budget for fiscal years 2012 and 2013 but the government has only approved
100 million pesos for each year. These cases are not uncommon in the Philippines.
AFAB has drafted a master plan for the renovation of the FAB. Improvement of the operation /utilization rate of the STP is included in the plan. AFAB plans on continuing the request for
additional budget. Should they receive the full requested budget, the AFAB plans to invest in the

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installation of sewage pipe network in areas which are not yet connected to the STP and improve theutilization of the STP. Despite the AFAB's current budget constraints, they are properly operating
and maintaining the STP.

Table 12. Financial Condition of the AFAB
(1,000 pesos)
2011

2010
Income342,503775,577

Expenses

363,312813,347

Income from Operations-39,350-37,770

Other Income (Expenses)-16,142-30,916‐

Income Tax
Net Income‐-38,949-68,686

Source: AFAB

Table 13. Breakdown of Expenses
2010(1,000 pesos)
2011

Personnel Expenses

28,80360,164

M aintenance andOperation Expenses

353,071753,184

Source: AFAB

Table 14. Operation and Maintenance Cost of the STP

M actanBaguio City
Bataan

2008
5,640
1,816
919

Cavite‐Source: PEZA/AFAB

2009
5,888
1,653
1,069
‐

2010
5,888
1,772
1,137

(1,000 pesos)
2011

5,989
1,687
1,017

‐

‐

Table 15. Revenue from Sewage Treatment Services

M actan

2008

2009

2010

(1,000 pesos)
2011

‐

‐

‐

‐

Baguio City

1,491

1,416

1,558

1,663

Bataan

3,590

3,140

3,028

3,214

Cavite‐‐Source: PEZA/AFAB

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‐

‐

3.3.4 Current Status of Operation and Maintenance
There is no change in the status of operation and maintenance from the time of ex-post evaluation.
Operation and maintenance is carried out properly based upon the manual. In Mactan, operation andmaintenance is done by 3 shifts of 5 workers and 2 back-up workers, and the periodic inspection has
also been carried out properly. Check-up of all equipment in the plant is carried out daily, andampere voltage information of the device is recorded. Cleaning of the pump stations, manhole
stations, strainer of final sedimentation tank is done on a daily basis. Removal of suspended solids inthe tanks, such as plastic and paper, and cleaning of pipes for water reuse facility is being conducted
on a regular basis several times a month. With respect to the management of the facility, there has
not been an issue to date from the time of the ex-post evaluation. There is no problem obtaining
spare parts. Their purchase is to be approved by the PEZA and executed on the needs basis.

From the above, the operation and maintenance conducted by the PEZA is satisfactory, and nomajor problem has been identified. On the other hand, although the AFAB is sufficiently
implementing the operation and maintenance activities such as water quality monitoring within thelimits of its budget, governmental budget has not been allocated and future prospects remain unclear.
The AFAB has fallen into a deficit and is in a severe financial situation.

4. Conclusion, Lessons Learned and Recommendations
4.1 Conclusion
In Mactan, Baguio City, and Freeport Area of Bataan, the operating / utilization rate of thewastewater treatment facilities has increased, though slightly. However, the operation / utilization
rate is constantly low compared to the projected / designed capacity of the facility, and its value
remains below 50%. One of the major causes is the increase in the number of non-water-intensive,
non-manufacturing locators resulting from the diversification of business environment. Also,
locators are constructing their own STP facilities to obtain the ISO certification. In addition, as has
been detected prior to this report, the upgrading/rehabilitation of the existing sewage collection
system has been prolonged and not sufficient areas have been covered, which is also a contributing
factor to the situation. Therefore, it can be speculated that the dramatic increase in the utilization ratein the future is unlikely.
On the other hand, in terms of prevention of pollution of the surrounding environment, which was
one of the objectives of the project, the PEZA and the AFAB are particularly observant, and water
quality survey has been carried out continually on a regular basis. The indicators for the water
quality are maintained below the water quality standard, and the STP’s effluent and Mactan's
recycled water quality is maintained at a satisfactory level. There have been no reports of soil
contamination or odor. In this regard, the role played by this project is particularly significant.

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4.2 Recommendations
None.

4.3 Lessons Learned(1) PEZA
In planning of water use project in the ECOZONE, it is desirable to predict the potential industries
of locators, as much as possible. At the time of appraisal, locators from water-intensive industries
such as garment and steel industries were assumed to be potential locators. However, rapid growth of
information and technology industries and other factors have led to a change in the locator industries.
Predicting such changes is difficult. While taking into account the “future economic conditions”,
consideration should be given to the possibility of changes in the industry of the locators at the timeof appraisal; review, including the reconsideration of the project at a reasonable timing, is desirable.
Also, if the promotion of environmental protection by water conservation is conducted atgovernment level and ample budget can be allocated for this cause, then raising the operation /utilization rate of the existing facilities through the completion of proposed sewage collection systemprojects in the ECOZONEs and the strengthening of environmental awareness programs for locators
will become possible. Because Mactan and Baguio are leading tourist destinations in the Philippines,
linking such efforts to tourism projects may lead to further promotion of environment protection.

(2) JICA
Operation / utilization rate has been adopted as the indicator to evaluate the effectiveness of thisproject. However, since the objective of the project is to prevent pollution and to improve public
well-being in the neighboring areas through installation of the STP and the WRF, operation /utilization rate should not be the only indicator to measure the effectiveness of this project. As forthe indicators used for the evaluation of such project, in order to assess the project from different
viewpoints, it is desirable to use multiple indicators, or to leave a certain flexibility to revise theindicators when the situation evolves. In this project, for example, the proportion of locators using
the STP (including the STPs installed by the locators themselves) may be an effective indicator.

2-14Comparison of the Original and Actual Scope of the Project
Item
Original(1) Output
STP
Mactan (New construction)
BaguioCity(New
construction)
Bataan (Rehabilitation)
Wastewater Reuse
Mactan (New construction)
Facilities
BaguioCity(New
construction)
Cavite (New construction)
Environment
Procurement
Management Equipment
for the ECOZONEs
Consultant Services
International : 180M/M
Local : 399M/M
1. D/D, construction
supervision, and other tasks for
STPs（Mactan, Baguio City,(2) Project Period(3) Project Cost
Foreign Currency
Local Currency
Total
ODA Loan Portion
Exchange Rate

ActualAs planned (ODA loan)
As planned (PEZA own fund)As planned (PEZA own fund)As planned (ODA loan)
Postponed
Postponed
Cancelled

International : 49.2M/M
Local : 603M/M
1. As planned

Bataan）
2. D/D, construction
supervision and other tasks for
wastewater reuse facilities

2. As planned in Mactan

3. D/D, and other tasks for
wastewater reuse facilities（Mactan, Baguio City,

and Cavite）
3. Cancelled - RA8749(Clean
Air
Act, 1999) prohibits
incinerators.

Bataan, Cavite）
4. Capacity building
5. Urgent planning ofengineering services of
ECOZONEs
March 1997 – February 2001
(4 years)
2,746 million yen
357 million yen(89 million pesos)
3,103 million yen
2,746 million yen
1 peso＝4 yen(in 1997)

2-15（Postponed in Baguio City

4. As planned
5. Cancelled
March 1997 – July 2005
(8 years and 5 months)
534 million yen
636 million yen(292.8 million pesos)
1,170 million yen
534 million yen
1 peso＝2.17 yen(average of 1997-2005）