1
Ex-ante Evaluation
I. Name of the project
Country: Republic of the Philippines
Project: Environmental Development Project
Loan Agreement: September 30, 2008
Loan Amount approved: 24,846 million yen
Borrower: Development Bank of the Philippines (DBP)
II. Necessity and Relevance of JBIC’s Assistance
1. Present conditions and issues of the environment sector in the Philippines
The Republic of the Philippines is confronted with serious environmental problems
including water shortage, water pollution, air pollution and increasing volume of wastes due
to growing population especially in Metro Manila and significant increase in economic
activities.
According to the classification of all the rivers in the country based on the
environmental quality standards of the Philippines, the water of only 35 percent of the total
rivers is drinkable. 48 percent of biological oxygen demand (BOD) derives from
domestic wastewater emitted nationwide. The percentage of population served with
sewage system is approximately 4 percent of the nation’s population and only 10 percent in
Metro Manila, thereby seriously aggravating the water pollution of rivers and oceans. As
for air pollution, the concentration of air pollutants is far much higher than the country’s
environmental quality standards in urban areas. With respect to wastes, out of a volume of
30,000 tons’ solid wastes emitted every day nationwide, 70 percent is collected in urban
areas, whereas 40 percent are collected in rural areas. The wastes that are not collected are
illegally dumped or insufficiently treated at home.
2. Development policies for the environment sector in the Philippines and the position of the
project
The government of the Philippines has actively taken measures to address the problem
of environmental deterioration focusing on the development of legal and institutional
frameworks. In its Medium-Term Development Plan (MTPDP) 2004-2010, it delineates
environmental protection that is essential for sustainable grow