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Posted on Tuesday, November 26, 2002

 

Investors reluctant to build 
plant for hazardous waste

By Dave L. Llorito, Research Head

(Hazardous waste is a growing menace in the country. But because there is no integrated handling and treatment facility for disposing of toxic waste, the problem has not been properly addressed. This last installment explains why investors are reluctant to go into hazardous waste disposal.)

A weak regulatory system is turning off investors interested in putting up an integrated treatment and disposal facility for hazardous wastes (HW) in the Philippines.

Sources from the Environmental Management Bureau of the Department of Environment and Natural Resources say that such a facility would cost at least P2.6 billion.

Only the private sector could cough up that kind of amount. Yet private investors would come in only if they are assured they could make a profit. And that hinges on the effective enforcement of and compliance with environmental laws and regulations.

What the government wanted is an integrated HW treatment facility that will dispose of HWs that cannot be recycled. It would include components for neutralizing waste acid and alkali, detoxification of toxic substances, thermal treatment of organic HWs, and a landfill for heavy metals containing treated and inorganic HWs.

Recyclable HW will be sold to recyclers. Those that need treatment will be brought to the facility. Some of the treated HW, due to environmental reasons, may have to undergo further chemical, thermal, or solidification treatment before being brought to an acceptable landfill. The main idea is to prevent possible damage to human health and the environment.

So far, nobody seems interested in building such a facility.

Cezar E. Pacheco, chairman of the Air and Waste Management Association-Philippine Section, says that poor compliance with the Toxic Chemicals and Hazardous and Nuclear Wastes Control Act of 1990 (Republic Act 6969) that mandates “cradle-to-grave” management of hazardous wastes is holding back potential investors in hazardous waste (HW) treatment and disposal facilities.

“How would an investor put his money into these facilities knowing that he has to compete with rivers, creeks, ravines, and secret dumpsites as disposal sites for hazardous wastes?” says Pacheco, who is also an environmental engineer. 

For the project to be economically viable, the government would have to make sure the HW for treatment and final disposal is delivered by generators to the treatment, storage, or disposal (TSD) facility and pay for the services. And this could be done if the laws and regulations on the proper HM management are enforced.

RA 6969 provides the legal framework for toxic and hazardous waste in the country. It calls for the regulation and control of importation, manufacture, processing, distribution, use, transport, treatment and disposal of toxic and hazardous substances.

Under the law, a tracking system must be in place to provide receiving and shipping documentation as well as certification of proper treatment, storage and disposal.

Transporting HW from the generator to a TSD facility would require a permit from EMB and other requirements from the DOTC. The transporters should carry a manifest duly signed by the generator, the transporter or hauler, and the final recipient or the operator of the TSD facility. 

HW transporters are also required to display warning signs regarding the shipments of HW and deliver the entire volume of wastes as specified in the manifest. This is to ensure that the movement of wastes are properly monitored and unaccounted for and not dumped illegally.

In reality, the process is far from perfect because of institutional weaknesses within the EMB, the main implementer of the RA 6969. This assessment is contained in the latest Japan International Cooperation Agency report, “The Study of Hazardous Waste Management in the Philippines.”

The biggest problem is manpower. The EMB has 763 personnel scattered across the country. The central office itself is understaffed, with only seven people, four of whom are technical experts (either a chemist or chemical engineer).

“A crucial constraint in effectively implementing RA 6969 … is the dire lack of qualified personnel trained and experienced in HWM (hazardous waste management) work,” says JICA. “The current staffing is a far cry from the optimal staffing required by the mandated tasks and the size of the regulated community.”

The EMB is also under-funded. “Since the passage of RA 6969 in 1990 until 1999, the HWMS (hazardous waste management sector) received no budget allocation of its own and was merely subsidized by EMB’s budget for operations … It means that no fund is available for purchasing field equipment, laboratory space and instruments for HW sampling and analysis,” the report notes.

The inadequacies show up in the EMB’s slapdash work.

Effective monitoring of the generation, transport, treatment, and final disposal of HW starts with a reliable database of generators. Yet EMB’s database has barely scratch the surface. It lists only 1,079 HW generators, when the number of potential generators could easily reach 150,000. This means that significant number of HW generators is not covered by the regulatory system.

“Taking into context the magnitude of the job, perhaps less than five percent of the potential HW generators are captured by the regulatory system,” says JICA. This also means reliable figures on the actual supply of HW for treatment and disposal, which could become the basis for computing revenue flows for a TSD facility, are not available.

Facilities of HW generators or operators of TSD facilities applying for registration with DENR need to be inspected to make sure the submitted data are verified. But only few facilities are inspected each year.

“One technical constraint is HWM is the lack of written protocol for inspection and monitoring of facilities … Due to limited staffing and equipment, the inspections tend to be mere ocular surveys and interview … HW sampling and analysis is hardly done,” JICA says.

Because of EMB’s poor monitoring and enforcement, many HWs are illegally disposed. This practice is reportedly common among small and medium enterprises that cannot afford treatment and are able to escape detection, JICA says.

This problem is aggravated by the existence of unregistered transporters, who offer cut-throat rates and dump the HW in open land or water or in municipal waste dumps,” says JICA. “Severe impacts on the environment and public health are the result, together with significant reductions in the volumes available for recycling and treatment.”

Comments Pacheco: “The private sector would only put this plant up if he is certain that hazardous waste generators would bring the stuff to the plant for proper treatment and disposal and get paid for the said services.”

Another dampener for private sector engagements in HW management in the Philippines is the lack of financing.

The report notes that many financial institutions in the Philippines promote “sustainable development,” yet they view environmental projects as too risky. Some government financial institutions have environmental credit facilities, yet they are inflexible when it comes to smaller loans. They are also not keen on lending money for environmental programs and projects which to their assessment do not yield immediate incomes.

Part 1

   
 
 
 

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Francis Andaya, Judee Perculeza, Marizhen Doctora
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