Professional Documents
Culture Documents
OverallReport SWM2002 02
OverallReport SWM2002 02
Sir:
Background 2
Audit Objective 3
Audi Scope and Methodology 3
Audit Conclusion 4
Management’s Reaction to Audit Observations 5
Background 7
National Solid Waste Management Commission 8
Joint Congressional Oversight Committee 8
Metro Manila Development Authority 9
Local Government Units 10
Coordination of Waste Management Activities 11
Involvement of Industry 14
Costs Associated with Waste Management 14
Introduction 18
Observation 18
Management’s Response and
Team’s Rejoinder 26
Recommendation 31
Introduction 34
Observation 34
Management’s Response and
Team’s Rejoinder 37
Recommendation 39
Chapter 3 Sound Management and Monitoring
Mechanisms 40
Introduction 41
Observation 41
Introduction 57
Observation 57
Management’s Response and
Team’s Rejoinder 60
Recommendation 63
Introduction 65
Observation 67, 73
Management’s Response and
Team’s Rejoinder 74
Recommendation 80
Part IV Annexes 83
PART I
Executive Summary
1
EXECUTIVE SUMMARY
BACKGROUND
1.1.2. Section 17 of the Local Government Code of 1991 provides that Local
Government Units (LGUs) shall exercise such powers and discharge
such functions and responsibilities as are necessary, appropriate, or
incidental to efficiently and effectively provide basic services and
facilities such as solid waste disposal system or environmental
management system and services or facilities related to general
hygiene.
1.1.4. The Solid Waste Management (SWM) system has six elements: waste
generation, transfer, recovery/processing, storage, collection and
disposal. The audit did not endeavor to cover all stages but focused on
solid waste collection which is critical among the six mentioned
elements.
2
EXECUTIVE SUMMARY
AUDIT OBJECTIVE
1.1.7 The audit objective was to determine whether the solid waste
collection function of selected LGUs in Metropolitan Manila was
undertaken in the most efficient and economical manner giving
consideration to:
1.1.8 The audit focused on the evaluation of selected contracts for the year
2001 and 2002 of the following LGUs:
• Marikina City
• Malabon City
• Valenzuela City
3
EXECUTIVE SUMMARY
The audit was conducted from July 16 to October 31, 2002 pursuant to
COA Assignment Order No. 2002-021 dated July 18, 2002.
AUDIT CONCLUSION
1.1.9 The audit concluded that generally, selected LGUs have not efficiently
and economically carried out their SWM function through the
satisfactory selection of contractors and monitoring their performance
in the collection, cleaning and disposal of solid wastes. This was due
to failure of the LGUs to establish adequate policies and procedures on
selection of contractors to ensure that the most qualified contractors
were selected. Moreover, the performance of selected contractors were
not properly monitored due to absence of established policies and
4
EXECUTIVE SUMMARY
1.1.10 The team also noted that the LGUs do not have established
methodology in estimating solid wastes generation from different
sources such as markets, rivers, street sweeping, schools and other
institutions. As a result, they tend to estimate solid waste generation
from household population only of which they were using factors
ranging from .500 to 1.27 kilograms per person daily. The factor
established under the Japan International Cooperation Agency (JICA)
study for this source is .552 kg for 2002. Relatively speaking, three
LGUs were using factors higher than the established factor for this
source while the factors used by three other LGUs were not disclosed
in any document provided to the team. Since the estimated daily solid
waste generation is the basis of the contract, the reasonableness of the
contract cost is doubtful. The efficiency of the collection system could
not also be assessed.
1.1.13 The results of the audit were discussed with the concerned officials
and employees of the 10 LGUs audited in separate exit conferences
conducted between October 21 to November 15, 2002. Their
comments were incorporated in the report where appropriate.
5
PART II
6
SOLID WASTE MANAGEMENT FRAMEWORK
BACKGROUND
• frequent use of disposable items such as diapers, razors, pens and lately,
even disposable cameras;
• increase in packaging and the use of non-refillable materials;
• indifference of some stakeholders to the advantages of recycling;
• patronizing products that are made from recyclable, rather than non-
recyclable sources;
• presence of household toxic wastes in the garbage stream.
2.5 Under R.A. 7160, (Local Government Code of 1991), LGUs, i.e.,
Cities, Municipalities and Barangays, have the primary responsibility
over the collection of solid wastes. Disposal of solid wastes was the
function of MMDA. However, due to solid wastes crisis experienced in
7
SOLID WASTE MAGEMENT FRAMEWORK
the Metropolis in 2000 and 2001, this function was passed by the
MMDA to the LGUs. The MMDA now merely provides financial
assistance to the LGUs to assist them in the disposal function. Under
R.A. 7924 (Law creating MMDA), MMDA shall take the role of a
virtual coordinating body in SWM. Thus, it is considered as a regional
office for the 17 Cities and Municipalities within Metro Manila.
2.6.2 The NSWMC shall report to Congress, not later than March 30 of every
year following the approval of R.A. 9003, the detailed account of its
accomplishment and progress on SWM during the year and the
necessary recommendations on the need for legislative action.
8
SOLID WASTE MAGEMENT FRAMEWORK
• Set the guidelines and over-all framework to monitor and ensure the
proper implementation of R.A. 9003;
• Submit periodic reports to Congress;
• Determine inherent weaknesses in the law and recommend necessary
remedial legislation;
• Perform such other duties and functions as may be necessary to attain its
objectives pursuant to the provisions of R.A. 9003.
2.8.1 Under R.A. 7924, the primary responsibility of MMDA for SWM is to
provide LGUs the services of solid waste disposal and management
which include formulation and implementation of policies, standards,
programs and projects for proper and sanitary waste disposal.
• Develop a provincial SWM plan from the submitted SWM plans of the
respective city and municipal SWM boards which shall be submitted to
the NSWMC for approval;
• Provide the necessary logistical and operational support to its component
cities and municipalities in consonance with subsection (f) of Section 17
of R.A. 7160;
• Convene joint meetings of the provincial, city and municipal SWM boards
at least every quarter for purposes of integrating, synchronizing,
monitoring and evaluating the development and implementation of its
provincial SWM plan;
• Represent any of its component City or Municipality in coordinating its
resource and operational requirements with agencies of the national
government.
9
SOLID WASTE MAGEMENT FRAMEWORK
2.9.1. Under R.A. 7160, among the basic services and facilities that shall be
provided by the LGUs is solid waste collection.
• Develop the City or Municipal SWM Plan that shall ensure the long-term
management of solid waste, as well as integrate the various SWM plans
and strategies of the barangays in its area of jurisdiction. In the
development of the SWM Plan, it shall conduct consultations with various
sectors of the community;
• Review every two (2) years or as the need arises, the City or Municipal
SWM Plan for purposes of ensuring its sustainability, viability,
effectiveness and relevance to local and international developments in the
field of SWM.
2.9.3 The City or Municipal SWM Plan shall be composed among others of:
10
SOLID WASTE MAGEMENT FRAMEWORK
• processing
• source reduction
• recycling
• composting
• solid waste facility capacity and final disposal
• education and public information on source reduction, recycling and
composting programs
• special waste
• resource requirements and funding
• incentive programs
2.10.1 Since various aspects of waste management are spread over a number
of agencies, it is important that the duties and responsibilities of each
agency are clear and that their activities are well-coordinated. This is
necessary to ensure that all agencies involved in SWM are working
toward common goals. Since R.A. 9003 took effect in December 2001,
most of the LGUs have incorporated their SWM plan either in their
Medium-Term Development Plan (MTDP) or Investment Plan for
2002.
11
SOLID WASTE MAGEMENT FRAMEWORK
• Gathering data needed for the preparation of the National SWM Status
Report to be used as basis in formulating the National Solid Waste
Framework;
• Issued the Implementing Rules and Regulations (IRR) of R.A. 9003 with
the assistance of the United Nations Development Program (UNDP);
• Drafted 7 guidelines to support the enforcement of the Act;
• Issued guidelines to encourage LGUs to establish and operate Materials
Recovery Facilities (MRFs) and composting facilities;
• Issued guidelines on the operation of controlled dumps as temporary
disposal sites until 2006;
• Finalized guidelines on duty and tax-free importation of Waste Recovery
and Recycling Equipment with the Department of Finance;
• On-going formulation and pilot- testing of model SWM Plans in 3
provincial cities;
• Implementation of Integrated SWM Programs with donor assistance in the
Visayas (Regions VI, VII and VIII);
• Provided assistance to 30 LGUs in the conversion of open dumpsites to
controlled dumpsites, one of which was Lingunan dumpsite in Valenzuela
City;
• Assessed potential sites for waste processing and disposal facilities;
• Conducted technical review and technology evaluation of 23 proposed
waste management projects and technical advice to proponents;
• Showcased MRFs and Ecological SWM projects nationwide;
• Conducted information and education campaign:
2.11.2 The following LGUs were able to partially implement R.A. 9003 thru
the following:
12
SOLID WASTE MAGEMENT FRAMEWORK
biodegradable and fielding two trucks at the same time for collection. The
scheme enabled the City to give livelihood to families engaged in
scavenging by commissioning them as sorters of solid waste paid on a
daily basis while at the same time earning an income from sale of
salvaged solid waste for the City.
• The City of Valenzuela on the other hand, has established its Ecology
Learning Center (ELC) in April 1999 which was further
strengthened/improved to meet the requirements of RA 9003. Based on
their 10-year ESWM Plan, R.A. 9003 will be implemented as follows:
Period Implementation/Coverage
• Storage of waste
• Discharge or set out of waste for collection
• Waste collection system
• Waste collection truck standards
• Conduct of public information, education and communication (IEC)
campaigns
• Administrative procedures and imposable administrative fines
• Collection and disposition of fines
• Penal provisions
13
SOLID WASTE MAGEMENT FRAMEWORK
2.12.1 Not all LGUs audited were servicing industrial and commercial sectors
of the City as most of the owners of industrial/business establishments
contracted the services of private haulers to collect and dispose of their
solid wastes.
EXPENSES
CITY 2001 2002
BY CONTRACT:
Quezon P 681,476,044.45** P 541,170,098.28*
Manila 473,153,280.00** 493,468,800.00**
Makati 534,066,584.22** NA
Pasay 224,980,320.00** 232,320,000.00**
Caloocan 286,556,805.00** 247,380,000.00**
Pasig 177,945,002.00 175,708,494.00**
14
SOLID WASTE MAGEMENT FRAMEWORK
EXPENSES
CITY 2001 2002
Mandaluyong 140,603,097.21@ NA
BY ADMINISTRATION:
Marikina 63,834,061.69 NA
Malabon 43,907,342.96 25,046,857.33***
Valenzuela 49,068,836.00 38,700,187.00***
15
PART III
Audit Observations
and
Recommendations
16
CHAPTER 1
17
ESTABLISHED POLICIES AND PROCEDURES
INTRODUCTION
3.1.1 Generally, LGUs contracting out the collection, cleaning and disposal
of solid wastes do not have adequate guidelines in the selection and
awarding of contracts for this type of service. In two LGUs, the
eligibility requirements of the contractors were defined. However, the
contractors’ commitment for the same services with other LGUs and
private entities were not required to be submitted. Hence, LGUs could
not assess the actual resources committed to the services being bidded
out.
OBSERVATION
18
ESTABLISHED POLICIES AND PROCEDURES
3.1.3 Of the ten LGUs covered in the audit, 7 were contracting out the
collection, cleaning and disposal of solid wastes to private contractors
either on a clean up or per trip basis. The audit however disclosed that
while contracting out has been practiced for several years, the LGUs
have not established policies and procedures in selecting contractors to
undertake SWM operations. The City Governments of Quezon and
Pasig however managed to define the qualification of contractors
allowed to participate in any bidding undertaken for this purpose.
However, the bidders were not required to submit their current and
present commitment with other LGUs and private entities for the
provision of the same services to assess the actual resources available
for the services being bidded out.
3.1.5 In the case of Manila, the City’s requirements and specific activities
were incorporated in the contract. The contractors were however not
required to submit technical proposal or comprehensive work plan
indicating strategies to undertake the contracted activities.
3.1.7 Of all LGUs, the City Government of Quezon was the only City to have
issued Executive Order providing guidelines in the conduct of public
bidding and award of contract for solid waste collection and disposal
services.
3.1.8 Under the Executive Order, the Quezon City Government will issue
Terms of Reference (TOR) where the contractor’s qualifications are set
as follows:
The TOR also set penalties in case contractors failed to comply with
the following requirements to be deducted from the contractor’s billing:
Violation/Requirement Penalties
Violation/Requirement Penalties
3.1.9 The failure of the LGUs to establish policies and procedures for SWM
operation resulted in awarding of contracts to contractors who were not
capable of undertaking the tasks as illustrated below:
• Caloocan City
21
ESTABLISHED POLICIES AND PROCEDURES
c. During the audit, the audit team was consistently reminding the
SWM officials on uncollected solid wastes most particularly in
major thoroughfares in Barangay 177 particularly along Zabarte
road within the jurisdiction of Caloocan City.
• Makati City
No. of
Trips /
Req. Day per Discrep Contractors’
Daily Dispatch -ancy No. of Equipment No. of
No. of Report per Equip. per Equip.
Contractor Trips (Range) Day Utilized Inspection Req.
• Quezon City
I Dodge 47 9 56 54 2 15 %
III Omni 50 10 60 51 9 15 %
IV IPM 56 11 67 56 11 14 %
22
ESTABLISHED POLICIES AND PROCEDURES
• Manila City
• Mandaluyong City
23
ESTABLISHED POLICIES AND PROCEDURES
• Pasay City
Equipment requirement in
the cities with existing Equipment
Truck/Equipment contracts required
per inspection Quezon Caloocan for Pasay
GOEPI 11 – 10 wheeler DT 40 8
12 – 6 wheeler DT
RM
14 6
Maintenance 13 – 10 wheeler DT
2 – 6 wheeler DT
c. This only shows that the bidders do not have enough equipment
to simultaneously enter into contract with different Cities. Their
capability to collect and dispose of solid wastes in their
areas/sectors were therefore questionable. This was manifested
by uncollected solid wastes noted by the team during ocular
inspection at Tolentino Street under Sector 3-E serviced by RM
Maintenance Services. (Annex 1)
24
ESTABLISHED POLICIES AND PROCEDURES
• Pasig City
• Marikina City
• Malabon City
• Valenzuela City
Since 01 January 2002, the City The team acknowledged that the
has adopted the Package Deal objective of the contract and the
System of contracting its garbage obligations of the contractor are well
collection and disposal. The defined in the contract except for the
objectives are defined in all the number of equipment to be fielded.
contracts with the garbage This should be clearly stated in the
contractors. contract. The term “sufficient
number” is subject to different
The Package Deal contract requires interpretation and does not bind the
27
ESTABLISHED POLICIES AND PROCEDURES
Our policies may not be perfect but The policies may be working for the
surely it is working for the City of City. But for such policies to be
Manila. effective, the same should
continuously be enhanced and
improved. As it is, there were some
deficiencies that need to be corrected
Although the contractor has not The team recognized that there could
submitted a work plan in writing, be verbal discussion to resolve
28
ESTABLISHED POLICIES AND PROCEDURES
it being not part of the contract, the various issues. However, if such
DPS has discussed this with the discussion and commitments were not
former. In fact, adjustments have put in writing, it could easily be
been made to improve the work forgotten and could not be properly
plan as a result of these meetings. monitored. The effectiveness and/or
deficiencies on such strategies
therefore could not be assessed.
January 1, 2001 was the start of the The contract for CY 2001 contains
29
ESTABLISHED POLICIES AND PROCEDURES
Generally, all LGUs agreed to the The team appreciates the responses of
30
ESTABLISHED POLICIES AND PROCEDURES
RECOMMENDATION
a. Collection Schedule;
b. Equipment mix appropriate for the area to be serviced;
c. Collection strategies for inaccessible areas;
d. Provision for motor pool and dispatching area;
e. Strategies for disseminating information materials:
f. Collection equipment and paraphernalia;
g. Available manpower;
h. Proposed actions on complaints.
31
ESTABLISHED POLICIES AND PROCEDURES
32
CHAPTER 2
Appropriate Resources
33
APPROPRIATE RESOURCES
INTRODUCTION
3.2.1 The audit however disclosed that except in the case of Marikina, the
LGUs audited were not preparing a comprehesive plan for SWM
operations. The SWM plan and budget were incorporated in the plan
and budget of the Department where SWM operation was part of. The
total amount budgeted for SWM operation, except for payment to
contractors were not specifically provided.
3.2.2 The team also noted that in some LGUs, total expenditures of the
Department and payments to contractors exceeded the funds
appropriated for the purpose. The failure of the LGUs to determine the
total funds needed for SWM operations affects the efficient
performance of contractors and effective implementation of SWM as
manifested by increased incidence of uncollected solid wastes and
inadequate implementation of information/education campaign on
proper SWM operation.
OBSERVATION
Except in the case of Marikina, the total budget and expenditures for
SWM operations in 2001 and 2002 could not be determined as the
SWM budget and expenditures were included in different
Departments of the LGUs where SWM operations is part of. The
LGUs do not also prepare a comprehensive plan for SWM operation
properly indicating the budget per activity. As a result, the adequacy
of SWM budget could not be determined. The failure of the LGUs to
provide funds needed for SWM operation affects the efficient and
effective implementation of SWM operation as manifested in
unsatisfactory performance of some contractors.
34
APPROPRIATE RESOURCES
LGUs Department
• Marikina CIty Environmental Management Cluster
• Quezon City Environmental Protection and Waste Management Dept.
• Manila Department of Public Services
• Pasay Office of the Mayor
• Caloocan Environmental Sanitation Services
• Valenzuela Clean and Green Office
Solid Waste Management Office
• Malabon Office of the City Administrator
Office of the City Mayor
• Mandaluyong Environmental Cleaning and Beautification Dept.
• Makati Environmental Sanitation Dept.
• Pasig Office of the Mayor
3.2.4 Except in the case of Marikina City, the budgets for these Departments
were not broken down into programs. For this reason, the team could
not determine the total budget and expenditures for SWM operations.
This was aggravated by the absence of comprehensive plan for SWM
operation properly indicating the budget per activity. Only the total
amount budgeted for payment to contractors were specifically
indicated. The absence of a comprehensive plan would deprive LGUs
to determine the adequacy of the budget provided for SWM operation.
For CYs 2001 and 2002, the audited LGUs have appropriated/budgeted
and expended funds for their environmental protection/sanitation
programs as follows:
36
APPROPRIATE RESOURCES
3.2.5 The expenses that could not be accounted for were related to salaries
and allowances of SWMO Officials and staff, maintenance of SWMO
and activities related to street sweeping, apprehension of violators of
environmental laws and information dissemination.
3.2.6 The failure of the LGUs to determine the total budget needed for SWM
operations affected the efficient and effective implementation of the
project as manifested in the following:
• Trucks for hauling solid wastes which need repairs could not be
repaired due to lack of spare parts, thus affecting the number of trucks
fielded;
• Hauling equipment which are beyond repair could not be replaced
due to lack of funds. As a result, daily collection schedules/routes
was not followed leaving uncollected solid wastes in the areas not
covered. This poses health risk to the City’s constituents;
• Payments for services of contractors were delayed by 3-27 months
after the billing date;
• Information/education campaign on proper SWM through seminars
and distribution of flyers were compromised;
• Ecological SWM projects could not be implemented;
• Incidence of uncollected solid wastes due to lack of monitors.
The City will review the audit The team appreciates the actions
recommendations and find the best taken by the City on the team’s
way to assist in improving the observation. A comprehensive plan
existing system. for SWM operation indicating the
specific budget per activity should be
prepared to ensure availability of
funds for each activity.
Payment Process- Under the new The team appreciates the action taken
administration, this is now being by management to expedite payment
corrected. The Head of EPWMD to contractors so as not to
has issued a Memorandum to the compromise efficient delivery of
contractors giving them only 7 days services.
within which to submit their
statements of billing for the current
month, otherwise their claims will be
processed together with their claims
for the succeeding month.
RECOMMENDATION
39
CHAPTER 3
Sound Management
and
Monitoring Mechanisms
40
SOUND MANAGEMENT AND MONITORING MECHANISMS
INTRODUCTION
3.3.1 The audit concluded that generally, selected LGUs do not have
adequate policies and procedures including performance
indicators/standards to assess contractor’s performance. While some
LGUs have established indicators, these were not adequate and there
were no parameters set to measure contractor’s performance which can
be gauged on the number of instances contractors failed to act on the
following, among others:
OBSERVATION
41
SOUND MANAGEMENT AND MONITORING MECHANISMS
3.3.4 As can be discerned from the contracts, the contractor’s activities that
should be monitored are the following:
3.3.5 The team however noted that while these activities can be used as
indicators by itself, LGUs have not been using such indicators and
42
SOUND MANAGEMENT AND MONITORING MECHANISMS
• As the need arises, meet with the contractor and Barangay Chairman
on issues such as systems improvement, suggestions and comments
(Manila);
3.3.6 Evaluation of these activities however showed that the same were not
adequate to properly assess the performance of the contractors. There
are a number of activities contracted which were not monitored. The
team also noted that in some cases, the monitors were submitting
conflicting reports or declared certain area to be clean when
43
SOUND MANAGEMENT AND MONITORING MECHANISMS
3.3.7 As the total area monitored were not disclosed in the report, the team
could not assess the extent of monitoring activities undertaken by the
LGUs except in the case of Quezon City where the number of cells
monitored were indicated in the report. Evaluation of the reports made
available to the team covering the month of July 2002 revealed that for
Districts IIA, III and IV, only about 2 to 38% of the total number of
cells assigned to a particular contractor were actually monitored as
illustrated below:
not recorded in the logbook. Hence, the reported collection could not
be validated. In a number of instances, a six wheeler truck was
reported to have collected 18 cubic meters when this can only load a
maximum of 12 cu. meters. These deficiencies render the reported
accomplishments questionable.
3.3.10 In the case of Pasay City, the monitoring activities could not be
documented as there were no monitoring reports submitted to the
team;
3.3.12 However, the LGUs claimed that they have been assessing the
performance of the contractors using the following indicators:
45
SOUND MANAGEMENT AND MONITORING MECHANISMS
• Manpower checklist:
46
SOUND MANAGEMENT AND MONITORING MECHANISMS
• No. of times the contractor failed to collect within the scheduled time
set;
• No. of times the contractors failed to field the minimum number of
trucks and collect the minimum volume of solid wastes within a
certain period;
• No. of times the mopping operation was not conducted and solid
wastes including wastes due to late throwers were not collected;
• No. of trucks/ times not complying with the required masks and
gadgets and number of personnel;
• No. of incidence of uncollected solid wastes as monitored by the
LGUs and complaints by the residents;
• The quantity and quality of information dissemination conducted.
• No. of times the contractor failed to observe the proper collection
method.
3.3.14 The team also noted that LGUs have not established monitoring
strategies to ensure that the contractors were performing as required
such as:
47
SOUND MANAGEMENT AND MONITORING MECHANISMS
The contents of garbage contracts as Any penalties that were deducted from
to compliance by contractors are the contractor’s claim manifest the
being enforced through monitoring contractor’s inefficiency. The City
by Monitoring Officers. should therefore not be contented on
Corresponding penalties or penalizing the contractors by
deductions are being implemented deducting a certain amount from their
by the Office of the City claim. Contractors’ non-performance
Accountant and Office of the Mayor or breach of contract translates into
every monthly billing of contractors. uncollected solid wastes that would
reflect in the LGUs’ performance and
48
SOUND MANAGEMENT AND MONITORING MECHANISMS
49
SOUND MANAGEMENT AND MONITORING MECHANISMS
The DPS has performance The Daily Monitoring Reports for all
measurements as indicated by our Districts from September 2 to 7, 2002
monitoring teams who do ocular reflect uncollected solid wastes in
inspections and accomplish daily several areas/locations. In most cases,
monitoring reports. Performance is there were no reported actions by the
measured by the daily monitoring contractor, rather, it is the City itself
report of our monitoring team. that acts on such complaints. Despite
Based on this, the Department reported uncollected wastes, the OIC-
Heads of DPS prepares his Head, DPS, issue certification to the
certification. effect that the contractor, Leonel
Waste Management Corporation, had
satisfactorily cleaned the six districts.
The certification entitles the contractor
to full payment of the monthly
50
SOUND MANAGEMENT AND MONITORING MECHANISMS
contracted amount.
Reports of uncollected garbage are Sample reports of the Task Force 9003
immediately forwarded to respective for the month of July 2002 reflect a
area service contractor by phone. A number of monitored uncollected solid
standby garbage truck is dispatched wastes which remained unacted by the
depending on the volume. If the contractors. This only reflects the
volume is very minimal, the garbage deficiencies in the monitoring system.
is picked up the following day at the Nevertheless, the team appreciates the
regular schedule of collection of plan of the City Government to
garbage. The City fully agrees with conduct regular survey to determine
the observations that Barangay the community’s perception on the
residents’ perception on waste City’s SWM operation.
management service is a tool in
measuring the program’s
performance. On this point, the City
is inclined to conduct regular bi-
monthly survey to determine the
perception of the community
regarding waste collections
delivered by WMSCs.
For this year, there will be review of The City's policy of recording
the present set up regarding complaints is a step toward the
contractor’s performance, establishment of an effective feedback
evaluation of the formula or method mechanism. As observed by the team,
in determining the daily garbage only complaints received during office
generation, review of barangay hours were recorded in the logbook.
development plan regarding waste Moreover, actions taken on such
management, residents perception complaints were not recorded and
data on the collection of garbage, monitored. The purpose therefore of
52
SOUND MANAGEMENT AND MONITORING MECHANISMS
The City will take into consideration The team appreciates the actions to be
the observations and comments of taken by the City to address this
the team in the future for the problem.
purpose of enhancing its monitoring
system.
The SWM Program of the City of The team acknowledge the efforts
Mandaluyong aims to combat health being undertaken by the City to
and sanitation problems brought improve SWM operation and attain its
about by piles of solid waste along objectives. However, the City could
streets, clogged canals and sewers, not ensure the validity of the reported
waste from occurrence of disasters, sources of solid wastes unless the
and others. To achieve the purpose contractor's performance is monitored.
of the program, policies and An assurance from residents or any
procedures were formulated towards barangay official on the collection
the reduction of wastes generated at undertaken in their respective area
source and the improvement of would validate the report of the
collection efficiency for all sources contractor.
of solid waste, among others.
The suggestion that at least two (2) This procedure is being practiced in
residents for each route to sign the Marikina City and not a single resident
53
SOUND MANAGEMENT AND MONITORING MECHANISMS
RECOMMENDATIONS
55
CHAPTER 4
56
EFFECTIVE QUALITY ASSURANCE PROCESSES
INTRODUCTION
3.4.3 Under RA 9003, each LGU is required to create SWM Board to ensure
the efficient and effective implementation of SWM operation.
3.4.4 The audit noted that of the ten LGUs audited, only 2 have so far created
an SWM Board. In view of the absence of an oversight body to develop
mechanics and guidelines, monitor/oversee and review adherence to
existing regulations in the implementation of SWM operations, lapses
in the operations were not given particular attention.
OBSERVATION
57
EFFECTIVE QUALITY ASSURANCE PROCESSES
within the LGUs. On the other hand, the SWMB of the 2 LGUs
were not yet functioning as intended. As a result, there were
practices required under R.A. 9003 which were not followed and
lapses in the operations were not detected and corrected.
3.4.5 Under RA 7160, LGUs are responsible for collection of solid wastes
within their jurisdiction and transfer of these wastes to a designated
place. The LGUs are also primarily responsible for the implementation
and enforcement of the provisions of RA 9003.
58
EFFECTIVE QUALITY ASSURANCE PROCESSES
3.4.7 The team noted that as of audit date, of the ten LGUs included in the
audit, only Caloocan and Malabon Cities have created SWMB
pursuant to R.A. 9003. Unfortunately, these SWMBs are not yet
functioning in accordance with the provisions of RA 9003.
3.4.8 The oversight of the quality assurance process is also not a specific
responsibility of any of the offices within the LGUs. As such, there
were requirements under R.A. 9003 which were not complied and
lapses in the operations were not detected and corrected. Nine (9)
LGUs have however managed to prepare their waste management plans
and strategies which were incorporated either in the Medium Term
Development Plan (MTDP) or Annual Investment Plan (AIP).
However, the plans were not in accordance with the requirements
prescribed under the Act and were not yet submitted to the Metro
Manila’s Regional SWMB for evaluation and approval. The individual
plans were supposed to form part of the Provincial SWM Plan which
the MMDA is tasked to monitor.
3.4.9 The absence of the Board also resulted in lack of coordination between
Municipalities/Cities and their component barangays. Some barangays
have already purchased their mini dump trucks for collection purposes
and yet this was not considered by the Cities/Municipalities in their
contracting activities. The contracted services should have been limited
to collection of solid wastes in a transfer area where the barangay
trucks would temporarily deposit their collection. This would reduce
the presently contracted cost of collecting solid wastes from house to
house.
3.4.10 The absence of the SWMB also contributed to the failure of some
LGUs to strictly implement other activities required under RA 9003
such as:
• Marikina City
• Valenzuela City
• Malabon City
Our R.A. 9003 Action Plan will show The team takes cognizance of the
that we have taken the initial steps in actions being taken by the City in the
the implementation of Republic Act implementation of R. A. 9003. The
9003 and in the preparation of a creation of SWMB which was
Comprehensive Ecological Solid required under the said Act would
Waste Management Master Plan for greatly help in ensuring the quality of
Makati City. We had meetings with the services now being rendered by
the Association of Barangay Captains the City and maintaining its status of
for the conduct of Action Planning being the cleanest City.
Workshops and Capacity Building
Seminar. At the regional level, we had
regularly attended meetings initiated
by the MMDA in order that we may
be properly guided on policies and
programs relative to proper waste
management. The SWMD is also
currently preparing a City Solid Waste
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EFFECTIVE QUALITY ASSURANCE PROCESSES
Pasay City's SWMO, being newly The team recognized the actions
born, has accomplished more than is being taken by the City’s SWMO in
expected. However, it admits that with the implementation of R. A. 9003.
the pressures of RA 9003, it has more The creation of SWMB as required
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EFFECTIVE QUALITY ASSURANCE PROCESSES
growing to do. The City has drafted its under the RA would greatly help the
SWM plan based on RA 9003 but SWMO in planning and coordinating
admits that resources and conditions with NSWMC for an improved
are not favorable to sustain its performance.
implementation. However, it shall be
prioritized in CY 2003.
The City is already in the process of The team appreciates the actions
developing its 10-year solid waste being taken by the City to expedite
management plan in accordance with the development of the SWM Plan
Section 16 and 17 of Republic Act No. and other activities required under
9003. In fact, the City is currently RA 9003.
pursuing and/or implementing basic
policies and strategies thereon,
particularly on waste segregation,
recycling, collection, information
campaign, etc. aimed at reducing solid
waste collection and disposal. The
results of these activities are being
62
EFFECTIVE QUALITY ASSURANCE PROCESSES
RECOMMENDATION
63
CHAPTER 5
Cost Measures
64
COST MEASURES
INTRODUCTION
3.5 Of the ten Cities audited, 7 were contracting the services of solid
wastes haulers/contractors for the collection, hauling, disposal,
cleaning and information and education campaign. The 3 others
managed their solid wastes by administration.
3.5.3 On the other hand, per trip is a collection system whereby the LGUs
monitor and record the volume of solid wastes collected and number of
trips made by the contractor to ensure that the LGU is paying for the
right volume and number of trips actually undertaken by the
contractor.
3.5.4 The team however, noted that while the contract cost under the package
deal scheme will greatly depend on the estimated solid wastes to be
generated, there was no established methodology in computing the
estimated solid wastes generated from different sources. At present, the
LGUs were using different factors in arriving at estimated solid wastes
generation per person per day which vary widely from LGU to LGU.
The factors used were also found to be higher than the factors
established under the JICA study. Solid wastes from other sources were
generally not included in the estimates as there were no factors
established yet. This raises concerns on the accuracy of the estimated
figures which were used as the basis of contracting cost. The
reasonableness of the contract cost is therefore doubtful.
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COST MEASURES
3.5.5 Between February 1997 and February 1999, the Government of Japan,
in response to the request of the Government of the Philippines, owing
to the problems associated with escalating generation of solid wastes,
particularly in Metro Manila, dispatched a study team under the Japan
International Cooperation Agency’s (JICA) development study
program . JICA was assisted by a team of consultants from the Pacific
Consultants International and Kokusai Co., Ltd. The MMDA acted as
the government counterpart agency on the JICA Study particularly in
coordinating with other governmental and non-governmental
organizations that may be involved in the study to ensure its smooth
implementation.
3.5.6 The objective of the study was to improve the SWM system in Metro
Manila through formulation of a practical and sustainable Master Plan
for SWM, with emphasis on upgrading the service level and expansion
of service coverage.
3.5.8 The results from the WACS are tabulated below. The study also
showed that the future waste generation rate (WGR) in Metro Manila
showed a 2% annual increase.
Escalated
Quezon Generation
Category Unit Ctiy Makati Parañaque Average in 2002
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COST MEASURES
OBSERVATIONS
Where:
Population = household population
Ave. wastes
generation/day/ = .500 to 1.27 kg.
person
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COST MEASURES
The conversion factors and average solid wastes generated per day per
person per LGU are as follows:
Average
solid wastes
Conversion generation per
LGU Factor person per day
Mandaluyong - .710
Caloocan 300 .550
Makati - Not indicated
Malabon - .500
Manila - Not indicated
Marikina 300 .550
Pasig 300 1.27
Pasay 200 .914
Quezon City 200 .585
Valenzuela - Not indicated
The team was not provided by the Cities of Manila, Makati and
Valenzuela with the factors used in estimating solid wastes generation
for household population.
3.5.11 It may be noted that the LGUs do not have a standard factor in arriving
at their estimates which ranged from .500 to 1.27 kg per person per day.
They could not also provide the team with the basis for such factors.
The factor would greatly affect the computation of the total estimated
solid wastes generation. Since the estimate should be the basis of the
cost to be contracted, the reasonableness of the contracted cost is
therefore doubtful.
3.5.12 The team also noted that the factors applied by the LGUs vary greatly
with the factor established under the JICA study which was escalated to
be .552 kg. per person per day as of 2002. The resulting quantity
difference ranges from (1,825) to 844,807 cu. m. per LGU which will
greatly affect the total contracted amounts.
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COST MEASURES
* Per City profile, however the contracted estimated volume was 1,040,520 cu. m.
** Per agency records
NI - Not indicated
3.5.13 The big difference in the case of Quezon City was due to a 20%
allowance on the estimated household population of the City based on
agency profile.The City claimed that the daytime population is greater
than the nighttime population due to students and employees working
within the area but were not considered in the population profile as they
were not residents of the city.
3.5.14 The team however did not consider said increase as most City
residents are also working outside the City. Besides, non-resident
population would not generate the same volume of solid wastes as that
of the residents since they do not have household to maintain.
Moreover, solid wastes generated by daytime population are
concentrated on establishments where they are working or in
restaurants or shops, which has a different factor.
3.5.15 In the case of Caloocan City, the team was informed that the City’s
estimates also include wastes generated from commercial
establishments and markets. The density factors used were however not
provided to the team.
3.5.16 In Manila, Makati, Pasay, Valenzuela and Malabon Cities, the team
was not provided with the methodology of calculation hence the
differences could not be assessed.
3.5.17 On the other hand, the difference in Pasig is due to a very high factor
used on average daily wastes generation which is 1.27 kgs per person
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COST MEASURES
and 26.67 kgs per shop in 2002. Pasig City is using the highest factors
for these items.
3.5.18 The conversion factor used by the LGUs also vary. The conversion of
300 cubic meters per kg. was used by Consoer Townsend and
Associates in their study of SWM in Metro Manila in 1989, while under
the JICA study, the conversion factor used was 200.
3.5.19 The team also noted that except for Pasig City, the LGU’s estimates
include only solid wastes generated by household population and do not
include waste generated from markets, business establishments, street
sweeping or institutions. While in some LGUs, business
establishments take care of their own wastes by contracting out the
collection and disposal of their wastes to private contractors at their
own costs, the collection of solid wastes in the market places is the
responsibility of the LGUs.
3.5.21 Using their estimates, the LGUs entered into contracts with different
contractors. Analysis of the contracts revealed that the contracted
activities also differ from one agency to another. Hence, the derived
unit cost per cubic meter could not be compared accross LGUs as each
contract contains salient features not present in other contracts:
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COST MEASURES
3.5.22 It can be gleaned from the table above that the contracts with the Cities
of Quezon and Manila involved provision for streetsweepers to
clean/sweep street litters, which is not present in the contracts of other
LGUs. Yet, the unit cost per cubic meter in these Cities were lower than
other LGUs without special features. On the other hand, Pasig City
unit cost per cubic meter is also comparatively lower than other LGUs.
However, the City’s estimate was about 199% over the team’s
computation using the JICA standard. Makati City, with relatively high
unit cost compared to Pasig City, was also found to have estimates of
153% over the team’s computation using the JICA standands.
3.5.23 Audit also disclosed that the costs per cubic meter in the LGUs
implementing SWM by administration of P 113.13 to P 256.88 were
relatively lower than the derived unit costs under contracts.
Actual Annual
Garbage Collection EXPENSES
(in cu.m).
Jan.-Jun Unit 2002 Unit
LGU 2001 2002 2001 cost (Jan. to June) cost
3.5.25 It can be noted from the above tabulation that of the seven (7) LGUs
undertaking SWM operation by contract, the cost per capita was highest
in Makati and Pasay. On the other hand, Valenzuela registered the
lowest cost per capita. Valenzuela is undertaking SWM operation by
administration. The expenses considered by the team in Makati and
Pasay Cities consist only of the total contract cost in the collection and
disposal of solid wastes. Other expenses relative to SWM operation
incurred by the said Cities were not included since the data were not
available.The expenses for other activities were lumped in the expenses
incurred by Environmental and Sanitation Department, where SWM
was one of the programs. The cost per capita in said Cities will even be
higher if incidental expenses incurred in SWM operation will be
considered in the computation
.
3.5.26 Due to absence of a standard factor in computing for the estimated
daily solid wastes generation, the LGUs were not able to adequately
manage the risk of ensuring the accuracy of the calculated solid wastes
generated.
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COST MEASURES
2. The shifting of two (2) LGUs from Per Trip Basis to Package
Clean-up System enabled said LGUs to reduce government cost
by a total of P 271,789,746 in collection and disposal contracts
without sacrificing the quality of the services rendered by the
contractors and maintaining a clean environment.
3.5.27 In 2001, the Cities of Quezon and Makati contracted out the collection
of solid wastes on a per trip basis. In year 2002, these Cities shifted
from per trip basis to “Package Clean-Up System” where the
contractor was given the full responsibility to manage/administer and
directly carry out actual collection, cleaning and disposal of solid
wastes from various sources.
3.5.29 The present system tends to have favorable effect on the government
not only on account of reduced cost but in ensuring that all solid wastes
within the contracted area are collected by contractors regardless of
volume. This would also make monitoring activities easier as the City
could initially assess the performance of contractors by just going
around the City to see if all solid wastes have been collected.
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COST MEASURES
The JICA estimates are not accurate The team could not particularly
basis for reviewing the soundness determine the difference between the
of the existing system. First and team’s estimates and the City’s
foremost, it should be pointed out estimates as the team was not
that the difference between actual provided by the City with its
contract cost that the City of Makati methodology of calculation. The
budgeted for waste disposal in the JICA’s standard factor set in 1997
amount of P408,992,957.14 and the was escalated on the basis of 2%
figure estimated by COA in the waste increase annually to be .552 kg
amount of P96,512,570.00 is per household population in 2002.
caused by the different data used by The team also noted that considering
COA and the City of Makati. COA that at the time of audit, the
used the estimated daily volume monitoring system of the City was
provided by JICA in its study still inadequate, the reliability of the
conducted on 1997 for a two month alleged historical data is doubtful.
period (April and June) while the
City of Makati relied on its
historical data for the actual waste
collection for the year 2000.
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COST MEASURES
On the other hand, COA, while The tabulation provided to the team
using JICA’s estimate on waste indicating the City’s estimates of
generated by the City, actually daily garbage generation was based
reduced this volume by limiting the only on population. Hence, for
estimate to the daily garbage comparison purposes, the team
collected only from households. computed only solid waste generation
COA did not take into account the from household population. The team
waste generated by restaurants, could not prepare similar comparison
institutions, markets, street of wastes generation from other
sweeping and the like (e.g. soil sources due to lack of information for
mounds, yardwaste, fire and calculation.
construction debris). Mixed waste
generated by these business
establishments are not confined at
the CBD alone but are also situated
in most of the other barangays of
Makati. It operates on the principle
that ‘The higher the economic
activities, the more volume of
garbage generated” , Makati being a
highly urbanized City.
In coming up with its estimate of As discussed above, the City, as of
daily garbage generation, the City audit date, has not yet established
did not use as a basis the actual monitoring procedures to ensure that
volume of garbage collected for the the data reported by contractors are
year 2001. This is because for the accurate.
year 2001, there was an abnormal
situation brought about by the
closure of dumpsites, which
translated into more garbage being
generated and collected within the
City. Now, had the City used its
data for 2001, then it would have
translated into a higher estimate of
daily garbage generated. Precisely,
the City reffered to the data for
2000, in order to come up with a
more accurate estimate of the
generated daily garbage.
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COST MEASURES
The JICA study is based on the The JICA study includes factors for
number of population and fixed solid wastes generated from
stalls in public market. The study restaurants, nightclubs, markets,
did not include business street sweepings, rivers and other
establishments including private shops. However, the team’s
markets, viajeros and ambulant computation was based only on
vendors in public market, super number of household and shops as the
malls, high rise buildings, City’s own computation of estimated
government institutions and solid wastes collection was also based
factories. The NSO data is also not only on number of households and
accurate of its records for Pasig shops/business establishments. The
City since the data failed to include team also considered the population
residents and commercial based on the agency’s profile and not
establishments in disputed on NSO records as can be seen from
boundary areas involving Pateros, the report. The population based on
Taguig, Taytay, Cainta and NSOs records was however higher
Marikina where garbage collection than that of the agency’s profile. The
services are extended by the City. difference in volume is primarily
based on very high factor used by the
City on the average generation per
person which is 1.27 kgs. and 26.67
kgs. per shop, as against the JICA
study of .552 kg. per person and
8.017 kgs. per shop for current year
2002. The City however could not
provide the team with the basis for
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COST MEASURES
such factors.
The contract is package deal and Review of the bid documents show
results are given emphasis rather that the bid price of the contractors
than volume. But we will study on was primarily based on the volume of
this suggestion. solid wastes estimated by the City to
be generated within a particular
period. The estimate is being
forwarded to the bidders as basis of
their bids. It therefore follows that if
the City’s estimates is overstated, the
bid quotations submitted is likewise
overstated. Thus, it is important for
the City to establish a valid
methodology of calculating solid
wastes generation and to monitor
actual volume collected to confirm
the accuracy or discrepancy in
calculation.
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COST MEASURES
The factor for population growth The team is not questioning the factor
rate that was used by EPWMD in for population growth rate. In the
projecting garbage generation was team's computation, the team adopted
1.92% which came from the City the household population provided by
Planning & Development Office. the EPWMD. The difference was due
NSO’s factor is 1.78%. EPWMD to the City's practice of increasing the
thought it more appropriate to use population by 20% and the difference
the CPDO’s growth rate. in the factor used by the City which is
Furthermore, QC’s land area is .585 as compared with the factor
more than 5 times bigger than that established under the JICA study of
of Manila. Such expanse requires .552.
longer distances to travel resulting
in higher hauling costs. Likewise,
one of the problems encountered by
the City is the illegal dumping of
garbage coming from other LGU’s.
This attributed to the bigger garbage
volume collected.
Another reason, aside from The team took notice of the reduction
increased economic activity, that in solid wastes collection costs and
accounts for the large volume of agrees that the City’s performance on
garbage in the City is illegal the area is improving. However, in
dumping from neighboring LGUs. order to achieve the City’s aim of
People from Caloocan and Marikina rendering quality services, the noted
have been apprehended previously deficiencies should be adequately
for dumping their garbage in the addressed.
City.
RECOMMENDATION
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COST MEASURES
81
Submitted in compliance with COA Assignment Order No. 2002-021
dated July 18, 2002.
EMELIE P. PESTANO
Team Member
EVELYN P. REYES
Team Supervisor
Reviewed by:
SUSAN P. GARCIA
OIC-Assistant Director
Approved by:
Annexes
83
Annex 1
Page 1 of 1
Solid wastes were seen along Tolentino St., Pasay City at 3:00 P.M.on October 2, 2002.
Annex 2
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Annex 2
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