Quezon City: At A Glance Payatas: A Closer Look

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Disposal Facility through their agreement with IPM Environmental Services Inc. PANGEA ... development; Pangea Green Energy, Inc. for the Biogas Emission Reduction Project; ... The local government unit hosting the facility is given a.

Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

Quezon City: At A Glance

Quezon City is one of the cities and municipalities comprising the Metropolitan Manila. Largest among others, Quezon City has a total land area of 16,112.8 hectares with a total population of 2.68 Million. It is host to more than 60,000 business establishments, 61 hospitals and 60 health centers, 578 public and private schools, 231 community parks and 4 major parks, 84 public and private markets and 3 slaughterhouses.

With these figures, the City accounts for 20% to 25% of the estimated 80 Million tons of municipal solid waste produced in Metro Manila. It actually generates 1,768 tons of waste per day or 0.66 kg/cap/day. Almost half of which are biodegradable, 39% are recyclables and the remaining are the residual wastes. These volume of garbage are transported to the major solid waste repository of Quezon City - - - Payatas.

Payatas: A Closer Look

Payatas is located in the northeast portion of Quezon City. It is bounded by the La Mesa Reservoir, Bagong Silangan, Commonwealth and Batasan Hills.

Payatas has been known as the solid waste dumpsite in Quezon City. Before, it is a garbage disposal site open to all; but due to the 2000 Payatas tragedy, it is now catering only to its mother city’s use.

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

The Payatas dumpsite is divided into two sites – the old and the new. The 11-hectare “old site” started operating in 1973 but was closed due to the ten-year old trash slide incident. Currently, it is the 9.7-hectare “new site” which serves as the active disposal facility of the City.

The PAYATAS Dumpsite: NEW SITE Area: 9.70 hectare Waste Intake: 7,000 cum./day Average Wt.: 1,402 TPD Per Capita Generation: 0.550kg/P/D Waste Density: 210 kg./Cum. Ave. Daily Truck Trips: 500 trips/day Figure 1: Locational Map of Payatas

Figure 2: Payatas “New Site” Profile

Payatas Then: A Glimpse from the Past

Payatas residents had been a victim of a disastrous incident that had killed 300 people. It was in July 10, 2000 when the wastes that were stacked up to 50 feet high came crashing down on the houses and shanties of residents, mostly scavengers, situated near the actual garbage mountains. To make the situation worse, the methane gas emanating from the huge pile caused instantaneous combustion and fire, inflicting burns and inhalation problems. The dumpsite was momentarily closed, but was soon reopened • Corsame • Ramos • Tumamao-Guittap | 2

Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

due to the lack of alternatives for a waste disposal area in the National Capital Region. It was then limited to the use of Quezon City.

To further ensure that the so-called Payatas tragedy be avoided, the City Government created the Payatas Operations Group in November 2000 through an Administrative Order to manage, operate, and secure the entire dumpsite.

Just in time, the Republic Act 9003, or the Ecological Solid Waste Management Act of 2000, was passed a year after. However, it was only in 2004 when the City complied with the RA 9003 requirements to convert the open dumpsite into a controlled disposal facility.

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Department of Environment and Natural Resources, the initial conversion efforts were inputted in the components of the final closure plan of the dumpsite. Figure 3: Timeline of Payatas Events

These occurrences in Payatas paved the way for the Quezon City Government to embark on the Payatas Landfill Transformation Program.

The Payatas Landfill Transformation Program: A Component of the City’s Comprehensive Development Plan

The Quezon City Comprehensive Land Use Plan (CLUP) recognizes the compelling need to prioritize, among others, the conversion of the Payatas dumpsite into a more

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

environmentally sustainable disposal site due to its possible negative impacts to its residents and the adjacent La Mesa Dam, to wit:

“Being an unsanitary open dump, the Payatas dumpsite is a critically confronting issues as it poses danger not only to the residents in the vicinity but to the immediate-lying La Mesa Dam which is the depository of domestic water for Metro Manila. If only for public health considerations alone, there is compelling reason to convert the present dumpsite into other environmentfriendly solid waste disposal system that can address both the garbage and environment problems as well as the socio-economic needs of the residents in the area.” This and the City’s determination to avoid the recurrence of the 2000 Payatas Tragedy, the Quezon City Government identified, in its Comprehensive Development Plan, the Payatas Dumpsite Improvement Program as one of the development strategies under the Environmental Management Sector, specifically for addressing the issues of the City’s solid waste management.

This is further reflected in the Zoning Map of Quezon City, wherein the Payatas dumpsite area is identified as a special development zone.

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

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Figure 4: Zoning Map of Quezon City

Quezon City’s CLUP and CDP thus provided the framework for the realization of the Payatas Landfill Transformation Program.

Methane Recovery in Payatas: The Biogas Emission Reduction Project

Under the Payatas Landfill Transformation Program, there are several projects identified and were already being implemented, at present. These include the Methane Recovery Project, or technically known as the Biogas Emission Reduction Project. • Corsame • Ramos • Tumamao-Guittap | 5

Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

The Biogas Emission Reduction Project of Quezon City is the first registered Clean Development Mechanism (CDM) initiative under the Kyoto Protocol of the United Nations Framework Convention on Climate Change in solid waste management, not only in the Philippines but in Southeast Asia as well.

Basically, it involves the extraction, collection, flaring and conversion to energy of biogas from the dumpsite.

The Kyoto Protocol is an international agreement that sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions. These amount to an average of five percent against 1990 levels over the five-year period 2008-2012. Source: United Nations Framework Convention on Climate Change

Institutional Framework The Quezon City Biogas Emission Reduction Project, as abovementioned, is an initiative supported by the UN Framework Convention on Climate Change (UNFCCC), which encourages the industrialized countries to stabilize their greenhouse gas (GHG) emissions. This encouragement effort of the UNFCCC has translated into a more concrete commitment called the Kyoto Protocol.

In the local level, this Project is greatly supported by the Ecological Solid Waste Management Act of 2000, or Republic Act 9003, not to mention the mandates by the Philippine Constitution of 1987 and the Local Government Code of 1991.

RA 9003 emphasizes the necessity for adopting an integrated environmentally-friendly national framework for solid waste management. It gives provisions for institutional mechanisms, comprehensive and sustainable waste management targets for the local government units, as well as penal measures.

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

With the conscious effort of complying with the requirements of RA 9003, Quezon City has been awarded by the Department of the Environment and Natural Resources for the promising positive impact of this Project.

Another important legal framework relevant to this Project is the Philippine Clean Air Act of 1999, or Republic Act 8749.

RA 8749 describes the requirements for a comprehensive air pollution control and management program. Related provisions to the Biogas Emission Reduction Project include Section 11, which is about the Air Quality Control Techniques; Section 20, which is about the Ban on Incineration; and Section 31, which is about the Greenhouse Gases.

Aside from RA 9003 and RA 8749, other relevant legislations that stand as the institutional frameworks of the Biogas Emission Reduction Project are Republic Act 6969 (Toxic Substance and Hazardous Waste Act) and Presidential Decree 856 (Code of Sanitation) for waste management; Presidential Decree 984 (Pollution Control Law) and the Republic Act 9275 (Clean Water Act) for pollution control; Presidential Decree 1151, 1152 and 1586 (Philippine Environmental Policy, Philippine Environmental Code, Environmental Impact Assessment Framework respectively) for the environmental laws.

The Agreement On February 14, 2007, the Quezon City Government signed a 10-year period Memorandum of Agreement with an Italian company along with its Philippine counterpart, which is the Pangea Green Energy, Inc.

Generally, the MOA provides for the full autonomy of Pangea in carrying out its functions to achieve the following Project objectives:

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.



Address the environment, health and safety concerns of the local government of Quezon City for its constituents, particularly those residing in the immediate surroundings of the Facility.



Promote the application of appropriate technology and know-how for the extraction, collection and processing of biogas from solid urban wastes



Demonstrate its environmental, social and economic benefits.

In order to facilitate the project, the MOA clearly determine the roles of the Quezon City Government and the Pangea, as follows:

LOCAL GOVERNMENT OF QUEZON CITY 

Control and jurisdiction over the project site



Management of Quezon City Controlled Disposal Facility through the Payatas Operations Group



Governing body with authority over the operation of the Quezon City Controlled Disposal Facility through their agreement with IPM Environmental Services Inc.

PANGEA GREEN ENERGY 

Project Development 

Feasibility Study



Local Authorization



Registration as a CMD Project

 Implementation 

Design and Construction



Testing and Commissioning

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

 

Operation and Maintenance

Financing  100 percent of the Project Cost

The Operational Structure As the representative of the Quezon City Government, the Payatas Operations Group acts as the overall regulatory body that oversees the operations of partner private entities, such as the IPM Environmental Services for site rehabilitation and development; Pangea Green Energy, Inc. for the Biogas Emission Reduction Project; Holcim Philippines, Inc. for the Used Tire Retrieval Project and Co-Processing of Residual Plastics; DOST-ITDI for the pilot testing of the Plastic Densifier Technology; and the Recycler’s Association for the recovery of the recyclable materials.

Figure 5: Operational Structure

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

The Project Technical Description The project is planned to be executed in two phases.

During first Phase, the combustion plant will be composed of a biogas extraction system (wells and blower), a high-temperature torch for flaring the methane extracted and an electrical engine for on-site power supply. The electrical engine will be fed by biogas during plant operation (about 8,000 hours/year). An electrical connection to the local grid will be provided in order to supply electricity requirement of the plant during engine maintenance and start-up operations.

On the Second Phase which will begin on the third year, depending on the actual availability of biogas and the financial and technical viability, Pangea will install a bigger biogas electrical engine (about 700 kW) for the conversion of a portion of the methane recovered to electricity that will be delivered to the local grid.

Figure 6: Process Flow Diagram of the Project

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

The project area has a total of 66 wells each with its own monitoring equipment that measures the amount of gas ready for harvest within its area. These are spaced at approximately forty meters apart in both the old and new mounds. Each well is connected to one of four controlling substations. Each substation conveys biogas from each well into main lines up to the extraction plant. Before the biogas is received by the electricity generator, the biogas collected passes through a heat exchanger and condensate trap to remove remaining moisture. The extractor fan allows flow of biogas to the high temperature flare and the electricity generator. Biogas is then combined with oxygen and burned by the electric generator to produce power. The remaining amount of biogas that is not consumed in the production of power is flared and released into the air as carbon dioxide instead of methane.

Project Benefits 

Environmental Benefits Benefit

Qualitative/ Quantitative Value

Environment Quality Improvement

Energy Efficiency

Elimination or reduction of explosion or fire hazards Reduction of damage to existing vegetation and acceleration of re-use of land Reduction of odor and groundwater pollution Improvement on the stability of dumpsite through removal of voids and perched water / leachate. Reduction of greenhouse gas emissions Production of energy from a renewable source

Estimated emission reduction of 110,000 tonnes CO2e per year Minimum average of 4,200 MWh per year

Reduction of greenhouse

Displacement of grid

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

gases from traditional sources



Benefit to the Community Benefit

Qualitative/ Quantitative Value

Supply of free electricity

Community-based development



electricity (CEF = 0.46 tCO2e/MWh)

- Plantsahan ng Bayan Project - Perimeter lights of the dumpsite - Streetlamps along Visayas Avenue Extension and Zamboanga Street in Brgy. Payatas - Generation of employment; prioritization of Payatas residents in the hiring process - Capacity building of local stakeholders thru education and training; socio-civil responsibility

Financial Benefits o Donation of Proceeds from Emission Trading The company earns emission reduction credits which can be sold to countries that committed to reduce their greenhouse gas emissions through Emission Trading, one of the three market-based mechanisms of the Kyoto Protocol. As set out in Article 17 of the Kyoto Protocol, this allows countries that have emission units to spare - emissions permitted them but not "used" - to sell this excess capacity

to

countries

that

are

over

their

targets.

Thus, a new commodity was created in the form of emission reductions or removals. Since carbon dioxide is the principal greenhouse gas, people speak simply of trading in carbon. Carbon is now tracked and traded like any other commodity. This is known as the "carbon market."

The CER’s (Carbon Emission Reduction) units generated by the facility are traded in the international market after these were certified and validated by a third party consultant. The local government unit hosting the facility is given a donation from the proceeds of the sales expressed in percentage in direct proportion to the price per unit of CER. • Corsame • Ramos • Tumamao-Guittap | 12

Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

CER Price Range (In Euro per Tonne)

Donation to Quezon City (in percentage)

6.00 – 7.00

15

7.01 – 8.00

16

8.01 – 9.00

17

9.01 – 11.00

19

11.01 – 13.00

21

13.01 – 15.00

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15.01 – 17.00

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17.01 – 20.00

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20.01 - up

32

Figure 7: Percentage of CER Donation to Quezon City

o Investment shouldered by foreign company Clean Development Mechanism allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets. The mechanism stimulates sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction or limitation targets.

This project is a product of the above mentioned mechanism. Pangea Green Energy is a company based in Italy; an industrialized country party to the Kyoto Protocol. Since the investment is shouldered by the foreign company, the local government does not have to divert any of its funds to cover the cost of the project. This allows developing nations such as the Philippines to acquire technology without the financial burden that would otherwise limit access and utilization to more progressive nations.

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

Payatas Project Magnified: The Public-Private Partnership (PPP) Public Good Defined What is your understanding of public good? Public goods are products and services, consumption of which are collectively enjoyed by the public. It is non-divisible and nondiscriminatory. The government being the representative body of its citizens and the public, production of such goods is headlined by them.

For residents in the vicinity of Payatas dump site, their public health and safety is one good example of a public good. The main dumpsite hosts thousands of Filipino families who consider it their home, where they work and live. In July 2000, their safeties were greatly undermined by a tragic slope failure which resulted to a severe garbage slide that killed close to 300 people.

The local government

of Quezon City in particular, improved the stability of the dumpsite through reshaping of slope and improvement of drainage system in the area. This shows one effort of the government to safeguard health and safety of the public.

Another example of a public good is clean air. Payatas dumpsite, being a mountain of biologically decomposing matter that gives off huge volume of biogas, is an alive catastrophe that slowly poisons the people in its vicinity. Methane, being the largest emission to the atmosphere, is, as well, the most poisonous among the biogas. To mitigate its effect, the local government of Quezon City tapped Pangea Green Energy to extract, collect, flare and convert methane energy from the dumpsite.

Still in relation to clean air, and to further illustrate non-divisibility and nondiscriminatory of a public good, arises the market-based mechanism of the Kyoto Protocol. This is one instrument used to control air pollution by setting pollutant

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

emission limit allowed for a country. Highly industrialized countries on the other hand, are permitted to buy emission reduction credits (ERC) or finance environmental projects that reduce greenhouse gases emissions in other countries. The credits gained can be used to meet the emission limit set for them. To generalize the concept, reduction of air pollution may not be happening in some parts of the world but practiced in some less industrialized countries is still applicable for the purpose because these countries, may it be first or third world, belong to one earth and shares one atmosphere.

The project undertaken by Pangea at the Payatas dumpsite involves vacuuming of methane gas and processing it to power an electric power generator. Phase 1 of the project produces 200 kW and Phase 2 is projected to produce 700 kW power. The project being at its first stage, produces electricity as its by-product only. Thus, at present, electricity can be considered also as a public good since it is collectively enjoyed by the Payatas residents through lights provided along perimeter of the dumpsite and street lamps along Visayas Ave. Ext. and Zamboanga St., Payatas. Free electricity is also enjoyed by everyone through the Plantsahan ng Bayan Project, where a certain location in the Payatas area is supplied with free electricity for everyone’s use.

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

Private Goods Defined What are private goods? Private goods are produced by private entities, which have direct control over their operation and production. Normally, such undertakings would result to profitability to its owner.

The most common form of private good in a public-private partnership such as the case study presented above is the technology, in this case is the facility that converts waste into methane, as provided by

Pangea. Since

the

government cannot provide such an expensive technology, as well as the technical expertise in operating such, a private entity came into the picture.

Figure 8: Technologies Used by Pangea Green Energy, Inc.

As discussed, Kyoto Protocol is a market-based mechanism to reduce emissions of greenhouse gases as agreed by most developed nations. For the Methane Extraction Project of Payatas, Pangea Green Energy conducted the feasibility study during its planning stage. They were, as well, responsible for the design, construction, commissioning and operation of the Biogas Plant.

Aside from this private entity providing the technology and the financing for the whole project, the main product of Pangea Green Energy from methane extraction, which can

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

be considered as a private good, is Emission Reduction Credits (ERC). The private good owner profits from this project through the ERC which they sell to highly industrialized countries committed to reduce their greenhouse gas emissions.

Figure 9: UNFCCC Matrix of CER Issuances

Public Goods treated as Private Goods In the realm of planning for the public sector in the Philippines, public-private partnership has emerged as the framework for accelerating infrastructure development, usually accompanied by technological advancement. In this setup, the private sector provides for the public infrastructure, which normally calls for proper sharing of project cost.

Often, public goods are treated as private when the government cannot finance such causes or due to lack of resources such as funds, technical know-how and machinery.

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

One concrete example for this Public-Private Partnership (PPP), as was already explained in the abovementioned discussions, is the Methane Recovery Facility in Payatas, or the Quezon City Biogas Emission Reduction Project.

Comments and Suggestions

In an interview with a Pangea representative, it was learned that only 20% of the methane extracted from the dumpsite were used to fuel the electricity generator. The remaining 80% were flared and converted to carbon dioxide. This is because of the generator capacity of 200kW that limits the plant operation. Given that methane is an effective fuel to generate electricity, flaring 80% of it is a great waste of resource which might only increase the carbon dioxide pollutant in the vicinity of Payatas dumpsite.

In line with this, it is therefore important for the government to pass regulations in order to monitor and evaluate how the private entities operate biogas plants. The government should further understand the technology, through seminars and crash courses, in order to have criteria during evaluation of procedures and overall operation of a biogas plant. In return, they can thoroughly peruse contracts executed between public and private entities and make sure all important factors are considered and the public good is safeguarded.

Conclusion

The local government of Quezon City pioneered and become successful in the conversion of Payatas dumpsite into a controlled waste disposal facility. As shown in its success in terms of timeliness, effectiveness and support garnered from various stakeholders of the project, its replication to other existing sanitary landfills is POSSIBLE.

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Methane Recovery Facility in Payatas: A Partnership between the Quezon City Government and Pangea Green Energy, Inc.

Based on the success story of the Payatas dumpsite, it is best to recognize that the implementation of projects like this requires multi-disciplinary and multi-sectoral efforts. In this endeavor, all stakeholders - from public agencies, people’s organizations, academe and the private sectors - were consulted and made involved with the project. This project just shows that each entity is linked and that each one should work together for its success.

“May Pera sa Basura…”

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