A. Executive Summary

The US-AEP/Philippines Workplan for FY2002 outlines the work that will be undertaken by Team Philippines and our US-based partners to improve the environment in the country by mobilizing U.S. environmental experience, technology, and services. It contains a multi-year strategy, activity data sheets with clustered activities, and a budget matrix. It is firmly based on our approved country strategy and has been reviewed by our partners in USAID/Philippines, the Embassy and FCS.

Our efforts are focused on achieving results in the following Intermediate Result areas: technology cooperation, industry, urban and policy and regulation.

The priority sectors of focus for the Technology Cooperation Office are air, solid waste, toxic and hazardous waste, and water/wastewater. Air is the first priority because passage of the Clean Air Act in 1999 is pressuring industry and government to take steps to decrease emissions and to increase monitoring. Moreover, funds are available through the ADB loan. We will continue to facilitate the creation of a Motor Vehicle Inspection and Environmental Testing system and promote the use of alternative technologies for hazardous waste treatment to help industry conform with the ban on incineration. Solid waste is the second priority because the recently passed Ecological Solid Waste Management Act has created a large demand for assistance from LGUs and because of the huge collection and disposal problem in Metro Manila. We will educate decision makers about US technologies and promote recycling of plastics.

Toxic and hazardous waste will be a focal sector in FY2002 because of the pressing need to address this public health threat and the growing commitment of the government and several donor agencies to address the need for a hazardous waste treatment facility in the country. We will continue to work closely with the Embassy and USAID/Philippines to implement the Interagency Bilateral Cooperation on Environment and Public Health initiative, and will help develop policies to support the new agreement on the transport of hazardous waste to the U.S. (which was signed on September 19, 2001). We plan to organize U.S. study tours and workshops in collaboration with the EPA to increase the Philippines� capacity to assess and manage hazardous waste problem areas and how industry can better deal with its hazardous waste treatment problems.

In the water/wastewater area, we will expose decision makers to US technology through several trade shows and technical conferences, collaborate with the ADB on the sewage treatment component of the Pasig River Rehabilitation project.

The Tech Rep Office will continue the following activities to increase U.S. firms� market share: organizing exchanges and study tours, providing market information through IMIs, ISAs, submitting quality trade leads with follow-up via videoconferences, and providing matchmaking venues through Gold Key Service, Platinum Key Service, trade shows, and trade missions. The Tech Rep Office will also work with donors to develop projects in our priority sectors and to assist US firms in competing for the resulting business opportunities.

ACEC will help firms access urban development business opportunities resulting from the World Bank-funded City Development Strategy, solid waste management needs, and other opportunities.

US-AEP will initiate industry activities that promote improved environmental performance including activities focused on ensuring basic environmental protection, encouraging cleaner production, and promising more sustainable practices. In the continuing absence of strong local regulatory controls and enforcement capacity, American multinational corporations with Asian suppliers are increasingly responding to market drivers by assuming a more active role in the management of their supply chains. US-AEP will continue its work in the Philippines to encourage, catalyze and promote the emergent trend in supply chain environmental management.

An area of intersection between policy, urban and industry is with eco-industrial parks (EIPs) and industrial estates (IEs). US-AEP will build on its earlier work and that of the UNDP-funded PRIME project to encourage capturing and efficiently using environmental data related to EIPs, undertake technical assistance to identify opportunities for moving industrial estates to eco-industrial parks, and encourage IEs and EIPs to adopt environmental management systems.

Rather than reinventing the wheel, efforts will be made to assist in the sharing of best practices between different organizations within the Philippines. Whether it be through recognition awards for Energy Efficient Building Design, sharing of greening the supply chain or EMS best practices, or by conducting workshops and outreach, US-AEP will strive to ensure that successes are replicated across the Philippines and throughout the region.

Efforts to promote environmental due diligence in the banking sector will continue, as banks play a key role in influencing the decisions industry makes. Environmental cost accounting will be used to promote the use of pollution prevention and cleaner production technologies, and new regulations by the Central Bank will be explored.

US-AEP will continue to assist in implementing the Clean Air Act regulations, specifically the establishment of air quality governing boards, as well as help to develop the Clean Water Act and the implementing rules and regulations for the Solid Waste Act.

Under the Regulatory Dialogue, US-AEP and EPA will work with the World Bank to expand dialogue among agencies, private sector leaders, environmental groups and other experts focused on the restructuring of the Environmental Management Bureau of the DENR, and improving Laguna Lake Development Authority�s collaboration with communities on water resource management and project promotion and financing.

The U.S.-Asia Environmental Partnership (US-AEP) is a public-private and interagency partnership of the U.S. Agency for International Development (USAID) with the Department of Commerce, the U.S. Environmental Protection Agency, other U.S. government and state agencies, and the private sector. Created in 1992 by a Presidential initiative, US-AEP promotes the adoption of clean, efficient technologies, policies and practices by Asian industries, cities, and governing entities.

The context of US-AEP�s engagement is economic as well as environmental, harnessing the broad-based desire in Asia for accelerated but cleaner economic growth to drive a "clean revolution" of sustainable development. US-AEP�s approach is to pursue sustainable change in the way Asia proceeds with its industrial and urban growth through a development assistance approach founded in two basic premises:

1. To form a nexus between sustainable development and trade, particularly with the United States, to the mutual benefit of each; and
2. To create and promote lasting partnerships, locally, regionally and internationally, that will carry on beyond the reach and longevity of development agencies.

US-AEP�s approach to fostering a transformation to clean growth is to engage key decision makers in the public and private sectors, and harness those forces which serve as incentives for change: market, political, corporate, regulatory, and public advocacy. Ultimately, the future of the environment in Asia will be determined by these key Asian decision makers, including individuals, institutions, and the general public.

US-AEP targets four main areas related to the interdependent goals of environmental quality and economic growth:

• public policy and environmental regulation;

• urban environmental management;

• corporate governance and environmental management; and
• the transfer of U.S. environmental technology, expertise and practices through trade and investment.

Woven throughout these four areas is an emphasis on energy and resource efficiency and other measures which reduce greenhouse gas emissions and thereby mitigate the impact of developing Asia on global climate change.

In order to leverage resources from outside the U.S. government and to create self-sustaining partnerships that will outlive development assistance, US-AEP enlists the expertise and commitment of U.S. and Asian stakeholders: professional associations, large multinational corporations, small-to medium-sized U.S. private sector firms, U.S. states, and Asian and American municipalities and non-governmental organizations. Through the partnership of USAID and the Department of Commerce, Asia�s environmental quality and economic growth are mutually advanced by connecting Asia�s decision makers with the best in American environmental technology and expertise.

US-AEP�s engagement with a wide variety of partners serves another key component of the US-AEP vision: supporting U.S. foreign policy interests and fostering improved international relations in many sectors of American society. By facilitating the active participation of the business community and public sector at state and municipal levels, US-AEP makes development assistance relevant to Americans not directly connected with international relations.

Environmental degradation is a serious problem in the Philippines. It receives a great deal of attention from vocal sectors of civil society and Congress, but concrete steps towards improvements on the part of government and the majority of industrial and household sources of pollution have been insufficient. High levels of poverty (40 to 50 percent) and population growth (2.3 percent) combined with slow progress in implementing economic reforms and improving governance, have contributed to low levels of economic growth following the Asian financial crisis. According to the ADB�s Asian Development Outlook 2000, the Philippine economy faces three structural challenges required to achieve sustained growth: poverty reduction, proper environmental management, and adequate infrastructure.

Despite its rather poor economic outlook, the Philippines remains a promising market for American environmental firms due to the urgent need to address development and environmental problems, the strong historic relationship between the two countries, and the relative ease of doing business in the country. U.S. firms also have the advantage of a dominant position because the U.S. is the largest investor in the Philippines. Lack of funds and poor capacity of the government to design and implement projects has focused attention on public-private financing schemes (e.g., build operate transfer (BOT)) and projects in which payment is guaranteed by donors (World Bank and ADB). The new Macapagal administration has committed itself to accelerating and improving donor-funded project implementation, but no improvement has yet been seen in the environmental sector.

The Philippine government supports environmental efforts and has made important strides in fostering cooperation between industry and government to improve environmental performance. However, the government has not committed significant resources to the task, and the regulatory and environmental management agencies remain weak.

• Reduce environmental degradation in the Philippines by promoting improved industrial and urban environmental management, energy efficiency and pollution prevention; strengthening environmental policies and regulations; and raising awareness among decision-makers and the general public.
• Improve Philippine government, private sector and civil society capacity to manage air pollution, solid waste, toxic and hazardous waste and water pollution (in that order of priority).
• Transfer U.S. environmental technology and best practices to the Philippines.

Multilateral Development Bank Collaboration

• Strategic Objective 1 � Sustained Impact on the key people, institutions, and forces that drive the movement to a clean revolution in Asia:

--------------------------------------------------------------------------------------------------------------------------------Relationship to US-AEP Country Strategy: This is in line with the country strategy, solid waste management and disposal is one of our priority sectors for FY2002.

Milestone Dates: Wastecon � October 2001,

These activities will continue to develop the market and increase sales of water and wastewater treatment equipment and services.

--------------------------------------------------------------------------------------------------------------------------------Relationship to US-AEP Country Strategy:

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Asian and Regional Partners: LGUGC, League of Cities of the Philippines, CDS cities (some new, some continuing), new cities.

• strengthening SWAPP and the San Fernando City, La Union showcase;

• helping the Muntinlupa Development Foundation put together a solid waste management and environmental management plan for a new relocation site for Pasig River squatters (w/ADB) ; and

• assisting the Sagip Pasig Movement or Recycling Movement of the Philippines to replicate successful SWM projects or conduct outreach/awareness programs, perhaps in communities along the river (w/ADB project)

Asian and Regional Partners: ADB, ICMA, ICLEI; League of Cities; selected city governments

Lead Responsibility for US-AEP: Jeremy Hagger, Jeff Bowyer

Primary Intermediary Result: 1.2

Updated September 24, 2001

Asian and Regional Partners: League of Municipalities of Philippines, City of Cebu, ICLEI

4th Quarter: Final Exchange and Best Practices Symposium

February 26-March 2, 2002: ADB RETA workshop in Manila

Relationship to US-AEP Urban Strategy: This activity will contribute to improved urban policies and information flow.

Asian and Regional Partners: Asia-Pacific Forum of Environmental Journalists, Environmental Broadcast Circle (Philippines), UNEP, Asian Media Information and Communication Centre (AMIC)

Milestone Dates: Manila conference in October, training courses to be scheduled.

Lead Responsibility for US-AEP: Lisa Lumbao

Primary Intermediary Result: 1.2.1

The U.S.-Asia Environmental Partnership (US-AEP) is a public-private and interagency partnership of the U.S. Agency for International Development (USAID) with the Department of Commerce, the U.S. Environmental Protection Agency, other U.S. government and state agencies, and the private sector. Created in 1992 by a Presidential initiative, US-AEP promotes the adoption of clean, efficient technologies, policies and practices by Asian industries, cities, and governing entities.

The context of US-AEP�s engagement is economic as well as environmental, harnessing the broad-based desire in Asia for accelerated but cleaner economic growth to drive a "clean revolution" of sustainable development. US-AEP�s approach is to pursue sustainable change in the way Asia proceeds with its industrial and urban growth through a development assistance approach founded in two basic premises:

1. To form a nexus between sustainable development and trade, particularly with the United States, to the mutual benefit of each; and
2. To create and promote lasting partnerships, locally, regionally and internationally, that will carry on beyond the reach and longevity of development agencies.

US-AEP�s approach to fostering a transformation to clean growth is to engage key decision makers in the public and private sectors, and harness those forces which serve as incentives for change: market, political, corporate, regulatory, and public advocacy. Ultimately, the future of the environment in Asia will be determined by these key Asian decision makers, including individuals, institutions, and the general public.

US-AEP targets four main areas related to the interdependent goals of environmental quality and economic growth:

• public policy and environmental regulation;
• urban environmental management;
• corporate governance and environmental management; and
• the transfer of U.S. environmental technology, expertise and practices through trade and investment.

Woven throughout these four areas is an emphasis on energy and resource efficiency and other measures which reduce greenhouse gas emissions and thereby mitigate the impact of developing Asia on global climate change.

In order to leverage resources from outside the U.S. government and to create self-sustaining partnerships that will outlive development assistance, US-AEP enlists the expertise and commitment of U.S. and Asian stakeholders: professional associations, large multinational corporations, small-to medium-sized U.S. private sector firms, U.S. states, and Asian and American municipalities and non-governmental organizations. Through the partnership of USAID and the Department of Commerce, Asia�s environmental quality and economic growth are mutually advanced by connecting Asia�s decision-makers with the best in American environmental technology and expertise.

US-AEP�s engagement with a wide variety of partners serves another key component of the US-AEP vision: supporting U.S. foreign policy interests and fostering improved international relations in many sectors of American society. By facilitating the active participation of the business community and public sector at state and municipal levels, US-AEP makes development assistance relevant to Americans not directly connected with international relations.

Environmental degradation is a serious problem in the Philippines. It receives a great deal of attention from vocal sectors of civil society and Congress, but concrete steps towards improvements on the part of government and the majority of industrial and household sources of pollution have been insufficient. High levels of poverty (40 to 50 percent) and population growth (2.3 percent) combined with slow progress in implementing economic reforms and improving governance, have contributed to low levels of economic growth following the Asian financial crisis. The 1999 growth in GDP was only 3.2 percent, the second lowest among eight Southeast Asian countries and half the Asia-wide average. According to the ADB�s Asian Development Outlook 2000, the Philippine economy faces three structural challenges required to achieve sustained growth: poverty reduction, proper environmental management, and adequate infrastructure.

Despite its rather poor economic outlook, the Philippines remains a promising market for American environmental firms due to the urgent need to address development and environmental problems, the strong historic relationship between the two countries, and the relative ease of doing business in the country. U.S. firms also have the advantage of a dominant position because the U.S. is the largest investor in the Philippines. Lack of funds and poor capacity of the government to design and implement projects has focused attention on public-private financing schemes (e.g., build operate transfer (BOT)) and projects in which payment is guaranteed by donors (World Bank and ADB). The government has also been slow in implementing donor-funded projects and was recently cited by the major donors as needing to accelerate and improve project implementation or face penalties.

The Philippine government supports environmental efforts and has made important strides in fostering cooperation between industry and government to improve environmental performance. However, the government has not committed significant resources to the task, and the regulatory and environmental management agencies remain weak.

• Reduce environmental degradation in the Philippines by promoting pollution prevention, improved industrial and urban environmental management, energy efficiency and climate change mitigation and raising awareness among decision-makers and the general public.

• Improve Philippine government, private sector and civil society capacity to manage air pollution, water pollution, solid waste and hazardous waste (in that order of priority).
• Transfer U.S. environmental technology and best practices to the Philippines.

US-AEP will continue to collaborate and coordinate with the USAID Mission and the Embassy in country to insure maximum impact and synergy. Our strategy is consistent with the Embassy�s Mission Program Plan, USAID/Philippines� Strategy, and the US Commercial Service�s Strategic Plan for the Philippines. USAID/Philippines has several large projects with which US-AEP coordinates and collaborates at the working level. Improving the Philippines� capacity to manage hazardous waste and solid waste are major areas of focus and collaboration. We are also working together to promote the adoption of environmental management systems by industry and assist the Philippine government to obtain international recognition of its ISO accreditation system.

Overall coordination includes monthly brown sector working group meetings, providing the Mission and Embassy with a monthly update on activities, and soliciting the Mission�s view on all environmental exchanges involving Philippine participants. US-AEP and the Mission will continue undertaking collaborative activities and joint projects that advance our common goals.

We will also continue to work with the ADB and World Bank by contributing short-term experts for project design and implementation, organizing environmental exchanges to the U.S. for Philippine officials, and working together to strengthen environmental policy networks and the sharing of best practices among Asian mayors. This collaboration allows US-AEP�s support to have a much larger impact and gives us advance information on fully-funded projects for potential American bidders. The banks have also benefited from the partnership by making use of US-AEP�s experience and insight and our flexible and responsive funding mechanisms. We will focus on the following bank-funded projects during this fiscal year:

ADB � (1) Metro Manila Air Quality Improvement Sector Development Project, (2) Pasig River Rehabilitation Project. (3) Regional Technical Assistance on Cleaner Production Practices and Policies

World Bank � (1) City Development Strategy Project, (2) Urban Integrated Program, (3) Sewerage and Sanitation Water Districts Project II, (3) Solid Waste Ecological Enhancement Program.

US-AEP will focus on the following sectors, in order of priority: (1) air, (2) water, (3) solid waste, and (4) hazardous waste, because they are serious environmental problems that are high priority for the Philippine government and U.S. firms have special expertise and a competitive edge in these sectors (ranking described below). We will continue to engage relevant NGOs to advance our objectives in these priority sectors. For example, we work with Concerned Citizens Against Pollution on air quality improvement and the Solid Waste Association of the Philippines to promote solid waste management.

To strengthen environmental regulations, US-AEP will continue to assist in implementing the Clean Air Act regulations, as well as help to develop the Clean Water Act and Solid Waste Act (through the Water Environment Association of the Philippines, Air and Waste Management Association-Phil. chapter and Philippine Pollution Prevention Roundtable). US-AEP will also continue to work with the Department of Trade and Industry and related government agencies to support improved industrial environmental management and to explore ways to measure the environmental performance of industry. Much of this will be done through Philippine participation in regional policy conferences and networks, including the Greening of Industry Network.

2. Urban environmental management

   US-AEP will help improve the capacity of local government units (LGUs) to address the impact of urbanization on the environment by utilizing U.S. urban management models and collaborating with the World Bank, USAID/Philippines, ADB, ICMA (International City/County Management Association), ICLEI (International Council for Local Environmental Initiatives) and others. The American Consulting Engineers Council will promote these models through a technical partnership council.

   Strategies for the four priority sectors: Air - Improve air quality by supporting the phase-out of leaded gasoline outside of Metro Manila and the implementation of the communications component of the ADB-funded air quality improvement project. Water - Collaborate with the ADB in developing and implementing the Pasig River Rehabilitation Project. Solid Waste - Promote composting and recycling technologies through study tours and seminars, and continue to assist LGUs through the Solid Waste Association of the Philippines. Hazardous Waste - Work with USAID/Philippines to improve the capacity of the Philippines to address hazardous waste management by conducting seminars and study tours.

3. Corporate environmental management

   In the continuing absence of strong local regulatory controls and enforcement capacity, American multinational corporations with Asian suppliers are increasingly responding to market drivers by assuming a more active role in the management of their supply chain. US-AEP will continue its work in the Philippines to encourage, catalyze and promote the emergent trend in supply chain environmental management. New areas of focus may include: promoting the use of a sustainability index, product take-back programs and life cycle assessment.

   US-AEP will continue to build the capacity of the Philippine Pollution Prevention Roundtable to promote P² among Philippine industry and access technical information from NPPR and EPA. We will also solicit a CSG grant to promote clean production programs for manufacturers.

4. Transfer of U.S. technology and practice through trade and investment

The priority sectors of focus for the Technology Cooperation Office will be air, water, solid waste and hazardous waste. Air is the first priority because passage of the Clean Air Act in 1999 will pressure industry and government to take steps to decrease emissions and to increase monitoring. Moreover, funds are available through the ADB loan. Water is the second priority because water/wastewater is the biggest pollution control market, the Environmental Users� Fee as a driver to reduce BOD levels in industrial wastewater has been relatively successful, ADB funding is available for the Pasig River Rehabilitation project, and the opportunities which will develop as a result of the upcoming development of a Clean Water Act. Solid waste is the third priority because the government is currently bidding out a contract for a 2,000 ton/day landfill facility for Metro Manila, and the Solid Waste Association of the Philippines is assisting local governments in developing and packaging solid waste projects.

Hazardous waste will be a focal sector in FY 2001 because of the growing commitment of the government and several donor agencies to address the need for a hazardous waste treatment facility in the country. We will work closely with the Embassy and USAID/Philippines to implement the Interagency Bilateral Cooperation on Environment and Public Health initiative. We plan to organize U.S. study tours and a workshop to increase the Philippines� capacity to assess and manage hazardous waste problem areas and how industry can better deal with its hazardous waste treatment problems. We are also exploring how the U.S. EPA can become involved these efforts, specifically in developing government agencies� capacity.

The Tech Rep Office will continue the following activities to increase U.S. firms� market share: organizing exchanges and study tours, providing market information through IMIs, ISAs, submitting quality trade leads with follow-up via videoconferences, and providing matchmaking venues through Gold Key Service, Platinum Key Service, trade shows, and trade missions. The Tech Rep Office will also work with donors to develop projects in our priority sectors and to assist US firms in competing for the resulting business opportunities. To strengthen the private sector�s involvement in environmental improvement, US-AEP and OPIC are supporting EnviroVentures Philippines, a company that will invest in environment-related joint ventures with local SMEs and NGOs.

ACEC will help firms access urban development business opportunities resulting from the World Bank-funded City Development Strategy, building on contacts made during the U.S. observation tour.

US-AEP continued to be involved in government and ADB-led efforts to develop the Implementing Rules and Regulations of the Clean Air Act. The FCS-ADB Liaison Commercial Environmental Specialist and the Tech Rep worked to provide two experts to assist the government in drafting the implementing rules and regulations, with financial support from the US Trade and Development Agency. The Tech Rep facilitated the Workshop-Conference on the Clean Air Act that focused on the Implementing Rules and Regulations for stationary sources, which includes refinery plants, power plants, semiconductor and electronics, chemical, and food processing industries.

US-AEP facilitated a consultation with local government units (LGUs) on the proposed Solid Waste Management Act. We sent key Philippine representatives to the Greening of Industry Network�s international conference and to the Strategies and Tools for Sustainable Development in Business Seminar in Taiwan, which focused on promoting industrial environmental performance measurement. Measurement using the Global Reporting Initiative protocols is being explored with several interested Philippine companies.

US-AEP, through its cooperative agreement with the American Consulting Engineers Council (ACEC), partnered with the World Bank to advance the City Development Strategy program. Representatives from seven participating Philippine cities participated in an observation tour organized by the Environmental Exchange program to learn about innovative U.S. models for urban development. We also sent participants to the World Bank�s Competitive Cities Conference in Washington D.C.

ACEC developed a Technical Partnership Council to enhance the decision-making capacity of local chief executives and their technical staff by demonstrating practical solutions to problems caused by urbanization. A workshop was held in which the League of Cities of the Philippines and the CCPSP gave a presentation on the Project Development Fund Facility. Another workshop will be held in September on urban planning and the importance of benchmarking and data management. ACEC also conducted outreach to its member firms through an ADB Business Opportunities Seminar, an ACEC Business Luncheon, and sending project leads and market insights to ACEC firms and other US firms.

In partnership with the Asian Development Bank (ADB), US-AEP continued to support the network of Asian mayors that have been sharing best practices in city development through annual forums. In addition, ADB has funded a regional technical assistance for integrating cleaner production principles into national environmental and industrial development strategies. US-AEP contributed a report documenting current CP policies in Batangas and a report on our financial initiative highlighting successes with Philippine Banks. The reports will be used as a basis for training.

Under the umbrella of the new Clean Air Act and the ADB-funded Metro Manila Air Quality Improvement project, US-AEP and USEPA spearheaded a public outreach campaign on the phase out of leaded gasoline that ensured public acceptance of the April 1 ban on leaded gasoline in Metro Manila. US-AEP and ADB are now supporting a campaign for the nationwide phase out, scheduled for January 1, 2001.

In the FY2000 budget, US-AEP earmarked a fixed amount to be spent on collaborative activities with the USAID/Philippine mission. The following activities were undertaken: US-AEP assisted USAID in providing consultants to the Philippine Presidential Committee on Flagship Programs and Projects to prepare bid documents for a 2,000 ton/day sanitary landfill facility. The bid documents have been issued and proposals are being evaluated. A conference on Private Sector Participation in Water Projects will be conducted for LGUs; the Philippine government was assisted in its effort to obtain international recognition of its ISO certification system; a study tour for industrial pollution prevention policy was conducted for key government officials; and greening the supply chain as a driver for EMS was introduced to more than 60 Philippine companies. Descriptions of these activities are listed under their respective PAG.

Participation in US-AEP study tours and conferences has led mayors of several local governments to substantially improve solid waste management in their cities and form the Solid Waste Association of the Philippines (SWAPP) to train other local governments. US-AEP worked in collaboration with the World Bank�s SWEEP project, the Solid Waste Association of North America, and USEPA to facilitate the establishment of SWAPP and organize the first national conference and exhibition on solid waste management. Two training courses for LGUs on Developing and Mobilizing an Integrated Solid Waste Management Plan were conducted. ACEC also submitted a success story resulting from the 1998 Solid Waste Management Study Tour: Pennoni International Phils., Inc. won a contract for detailed engineering design, construction supervision and commissioning for the landfill project of Puerto Princesa City.

US-AEP is working with Ford Motor Company Philippines and other companies to ensure that their suppliers use environmentally responsible methods of production. Supply chain management gives Philippine suppliers a very powerful economic reason to improve their environmental performance and implement an EMS. Letters of commitment will be obtained from 60 firms by the end of the fiscal year.

US-AEP is providing support to the Philippine Bureau of Product Standards to obtain international recognition of its ISO 9000 and ISO 14000 accreditation programs. This will enable the Philippines to increase trade and market-driven environmental improvements and join the U.S. in promoting an international system for cooperation in promoting environmental management systems. A peer evaluation team and a local staff person are being supported.

US-AEP signed an MOU with DENR Secretary Cerilles last January to launch DENR�s Green Government Procurement Program, which aims to integrate environmental considerations into DENR�s buying decisions. A U.S. study tour was conducted for DENR staff, and several seminars, roundtable discussions and exchanges have taken place. A step-by-step guidebook and a pilot project will be completed by the end of next year.

In cooperation with the Management Association of the Philippines and other industry associations, US-AEP has implemented the Best Environmental Management Practices program among their member companies. Industry association members participated in a U.S. study tour to learn about U.S. models. The group has developed and published BEMP manuals and case studies, a TV program, a video, and several roundtable discussions.

US-AEP provided a grant to the Semiconductor and Electronics Industry in the Philippines (an industry association) to encourage member companies to implement best environmental management practices and greening the supply chain. US-AEP assisted in developing and delivering five training modules to volunteer companies.

US-AEP provided limited transition assistance to the Technology Livelihood and Resource Center, an extension organization that received a US-AEP grant last year to provide outreach and assistance to industry and cities on environmental management. Support was provided to TLRC to develop a CD-ROM on EMS, and in providing institutional linkages to other organizations.

The Tech Rep Office reported 16 success stories totaling $3,090,915 for FY2000, $1,250,496 of which have been confirmed to date. Of these, 9 were non-monetary Agent Distributorship Agreements. The office staff completed four Gold Key Service programs, counseled more than 100 clients and engaged in 60 trade facilitations. Throughout the year, the Tech Rep focused her efforts and resources on the areas that offer the best opportunities for U.S. environmental firms. She and the FCS-ADB CES continued to undertake several innovative and effective outreach events to develop the market for U.S. companies and prepare them for upcoming commercial opportunities stemming from ADB-funded projects, including the Metro Manila Air Quality Improvement Project and the Pasig River Environmental Management and Rehabilitation Project. This included multi-point videoconferences with several different states; targeted International Market Insights on the details of projects; study tours, and participation of project hosts as members of delegations to the Air and Waste Management Association 2000 conference in Salt Lake City and the WEFTEC 99 business delegation in New Orleans.

The Tech Rep promoted "environment trade and catalog shows" while on temporary duty in Atlanta, Birmingham, and Nashville. She also gave a briefing to the State Trade Offices and Chamber of Commerce, and conducted videoconferences with Export Assistance Centers in Shreveport, New Orleans, Indianapolis and Memphis.

The Tech Rep signed up the first Platinum Key Service client for the Commercial Service, which resulted in a large CNA Trade Mission in November 1999. Tyco Flow, Inc. also signed up for the service to assist them in their business development.

The Tech Rep assisted in facilitating a USTDA grant for Metro Cebu Water District for the Mananga II Dam Project which is estimated at $141 million and with potential U.S. export opportunity estimated at $74.5 million. She also worked closely with USTDA in organizing an "Industrial Emissions Source Study (Phase II) Technology Transfer Seminar" on Nov. 21, 1999.

US-AEP continued to work closely with professional associations such as the Water Environment Association of the Philippines (WEAP), Air & Waste Management Association � Philippine Section, and Philippine Pollution Prevention Roundtable (PPPR), the Tech Rep has co-organized 18 technical seminars.

• Environtech �99 - organized a U.S. Pavilion and arranged one-on-one meetings, technology presentations, and market briefings for participating companies.
• Completed an Industry Sector Analysis on toxic and hazardous waste.
• Led a 20-member delegation to the Air & Waste Management Association�s 93rd Annual Meeting and Exposition in Salt Lake City, Utah, U.S.A. on June 17-22, 2000 with a spin-off site visit to San Diego, California. The delegation included Congressman J.R. Nereus O. Acosta, Ph.D., principal author of the Philippine Clean Air Act.
• Led a 36-member delegation to WEFTEC �99 in New Orleans, Oct. 9-13 with a spin-off site visit to the state of Mississippi.

Environmental degradation in the Philippines stems not from a lack of stringent laws and regulations, but mainly from lack of enforcement by the government. However, new environmental laws continued to be developed as an attempt to do something about the very serious levels of health-threatening air pollution, the solid waste crisis, and highly polluted rivers and bays in greater Metro Manila. US-AEP will focus on strengthening enforcement and implementation of existing environmental laws and regulations, contribute to the development of two new laws, and work with industry to encourage voluntary compliance and measurement. Specifically, US-AEP will continue to assist in implementing the Clean Air Act regulations, as well as help to develop the Clean Water Act and Solid Waste Act. US-AEP will also continue to work with the Department of Trade and Industry and related government agencies to support improved industrial environmental management and to explore ways to measure the environmental performance of industry. Much of this will be done through Philippine participation in regional policy conferences and networks, including the Greening of Industry Network (GIN) conference that will be held in Bangkok in January. US-AEP/Philippines will participate in the Industrial Environmental Template regional activity if it receives outside funding (currently being pursued by GIN-Asia).

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Country: Philippines

Activity Name: Strengthening of Environmental Laws

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To strengthen environmental regulations, US-AEP will continue to assist in implementing the Clean Air Act regulations, as well as help to develop the Clean Water Act and Solid Waste Act. The Clean Air Act was passed in 1999 and we will continue to work with the ADB and the Philippine government to facilitate implementation of the law by participating in relevant discussions with the government and the ADB and responding to requests for assistance. We plan to expose Philippine government and private sector officials to the US experience with alternative fuels such as compressed natural gas. Other assistance related to implementation of the Clean Air Act can be found in other activity sheets with primary intermediate result 1.2 (Urban).

US-AEP, mainly through its Office of Technology Cooperation, will work with the Water Environment Association of the Philippines, the Air and Waste Management Association-Phil. Chapter, the Solid Waste Association of the Philippines, and the Consulting Engineers Council of the Philippines (CECOPHIL) to develop position papers on the soon-to-be-drafted Clean Water Act and Solid Waste Act. This may involve meetings or seminars to discuss the proposed laws and develop the position papers. The seminars may be conducted in collaboration with the Philippine Pollution Prevention Roundtable.

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Environmental laws and regulations strengthened, specifically improved implementation of the Clean Air Act and input into drafting the Clean Water Act and Solid Waste Act by Philippine environmental professionals.

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Air pollution is our first priority, followed by water and solid waste management. This activity meets our goals of working with the ADB and developing professional associations in the country.

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Asian and Regional Partners: ADB, Phil. DOE, WEAP, AWMA-Phil Section, SWAPP (all continuing), CECOPHIL (new)

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Anticipated Cost Share: Private sector study tour participants will provide cost share. WEAP and AWMA-Phil. will organize the seminars and pay for the venue and other seminar costs.

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Milestone Dates: Study tour TBD, Seminars on water and solid waste acts Qtr 2

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Lead Responsibility for US-AEP: Alma Madrazo

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Primary Intermediate Result: 1.1 Improved Public Policy and Environmental Regulations

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Date: July 5, 2000

US-AEP Activity Description IR 1.1

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Country: Regional Activity with focus on Indonesia, Philippines, Vietnam, Thailand

Activity Name: Regional Inspector Training and Peer Networking in Southeast Asia

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A regional inspector train-the-trainer project approved by US-AEP for fiscal year 2000 is a concrete step to strengthen environmental compliance and enforcement networking and capacity building in Southeast Asia. The program proposes a combined 5-day seminar and demonstration of multimedia inspection, criminal investigation techniques and USEPA experience with EMS/process oriented audits in combination with compliance inspection. It would focus on a priority problem area, proposed as a focus on refineries given attention to air pollution in the region or alternatively energy, pulp and paper, or mining. Training would be multi-media in nature and incorporate experience with typical types of violations, root causes, opportunities to correct and prevent. Inspector training would include opportunity for exchange on types of requirements currently in place within the U.S. and countries of focus.

Environmental enforcement officials from 10 countries, 8 from Southeast Asia, participating in a meeting sponsored by the World Bank Institute on "Regional Cooperation to strengthen Environmental Compliance and Enforcement in Asia", June 19-22, 2000 enthusiastically endorsed the planned delivery of train the trainer inspector training for the region by USEPA inspectors supported by the US Asia Environmental Partnership. US-AEP project funds supported participation by two USEPA officials, including a prospective trainer for inspectors in the region. This enabled USEPA to help launch a regional inspector training project and generally provide support for regional networking and commitment to strengthening environmental compliance and enforcement.

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Strengthened partnerships in the region, attention to inspection activities, training of 35 inspectors from 9 countries from the first delivery. Video taped sessions that can support future deliveries and distance learning. This project will enhance capacity within three host countries in depth and across the region as a whole at appropriate levels of government to conduct objective, credible and thorough environmental inspections to monitor compliance with national environmental laws and investigate potential environmental crimes. It will leave the region with a core of trained inspector trainers for cost-effective delivery of inspector training and create a context for sustained informal peer support and networking as well as future training deliveries, through the auspices of ASEAN, the UNEP regional environmental program or other mechanism for regional cooperation. The training is designed to provide focus on types of pollution sources and economic activity that will have the greatest potential for measurable improvement in environmental performance. Most significantly it will build capacity in a core skill area, inspection, required for effective implementation of a range of innovative and traditional environmental programs and policy instruments. It also has the potential to demonstrate the application of distance learning by taping, broadcasting and using new communications technology to support a wider audience for training opportunities.

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Relationship to US-AEP Country Strategy: Effective programs to encourage and compel compliance with regulatory regimes and policies to promote cleaner production, environmental technology, and improved environmental performance beyond compliance rest upon several fundamental capacities including the ability to present an effective, credible field presence through dedicated, independent environmental inspection.

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Asian and Regional Partners: UNEP, ASEAN, World Bank including the World Bank Institute, APCEL are potential near term partners in supporting country participation and sustaining partners in supporting ongoing networking and capacity building on a regional basis.

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Anticipated Cost Share: The World Bank Institute and country loan or grant programs will contribute to some of the participant travel expenses and help to support some of the distance learning opportunities that arise from these deliveries.

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Milestone Dates: Training delivery is proposed for January, April and June 2001. Government officials recommended that it commence no sooner than January of 2001 to avoid the rainy season and enables sufficient time for preparation for participants to arrange for funding. Training would be staggered to take place in each of three locations within the region: Indonesia, the Philippines and Vietnam (unconfirmed) and/or Thailand who offered to host the inspector training as well. Alternatively we could deliver training for two weeks twice at two different locations. Contacts for each of the countries were solicited June 22 at the regional meeting. Scheduling and selection of sector focus will be set by September 2000 and invitations extended by October 1. This should give country officials sufficient notice to arrange for funding and travel. We should have some agreements in advance on how the training will be used and built upon by the countries and provision for ongoing mutual support among all those involved in the training including the US personnel. We also need to overcome issues related to Health and safety, training and equipment confidentiality of refinery operations within country, among countries.

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Lead Responsibility for US-AEP: Cheryl Wasserman from EPA.

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Primary Intermediate Result: 1.1 Improved Public Policy and Environmental Regulations

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Date: August 13, 2000

US-AEP Activity Description IR 1.1

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Country: Regional

Activity Name: Vehicle Emissions Action Plan

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The ADB is hosting four regional workshops at the end of 2000 and in 2001 on topics to mitigate vehicular and transportation-related pollution in Asia, bringing together government, civil society and the private sector. The ADB will select one country to take the lead on each topic to construct a model "Action Plan," through domestic consultants, prior to each seminar. Specifically, the workshops will review market incentives and regulations in relation to the following topics during regional conferences at the proposed locations:

• Conventional and Alternative Fuels. India will do the Action Plan, conference may be held in India.

• Pollution Controls and New and In Use Vehicles. China will do the Action Plan, conference will probably be in China.

• Urban Transportation and Traffic Management. Maybe Jakarta for the Action Plan, conference could be in either Indonesia or Dhaka, Bangladesh.

• Final Workshop for presentation of Action Plans, Policies and Recommendations and list of proposed projects will be held in Manila, Philippines.

ADB has requested that US-AEP and EPA participate as partners in these workshops based on their expertise and experiences on air quality in Asia. Specifically, US-AEP/EPA assistance has been identified as follows:

• Identify and provide resource speakers for each topic. This would be a good opportunity to share the EPA and World Bank�s Transport and Air Quality Tool Kit.

• Identify key Asian officials working on air issues who would be interested in participating in the workshops. It is proposed that US-AEP Tech Reps� country funds and "regional funds" would support the participation of key participants.

** US-AEP has informed ADB that it is not able to pay for speakers to attend a workshop held in China.

** The ADB Regional TA covers participation of 16 developing member countries. If US-AEP would like to support "observer participants" from developed members (HK, Sing, Taiwan) that will be accepted.

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• Improved partnership with regional organizations
• Trade and investment- Identification of future air emissions reduction and vehicle pollution reduction projects and policies. These would provide identification of opportunities for U.S. technology/expertise.

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Relationship to US-AEP Strategic Objective: Participation will be dependent upon the air pollution priority of each country.

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Asian and Regional Partners: ADB, DENR, Phil. DOE (all continuing)

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Anticipated Cost Share: Regional grant by the ADB for the design and implementation of workshops and Action Plans.

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Milestone Dates:

Project approval date by ADB- should be August 2000. First conference probably in March.

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Lead Responsibility for US-AEP: US-AEP/ADB Stacy Bonnaffons

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Primary Intermediate Result: 1.1 Improved Public Policy and Environmental Regulations

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Date: August 9, 2000

2. Improved Urban Environmental Management

It has become clear that local government units play a critical role in environmental improvement. Through the provision of municipal infrastructure such as water supply and solid waste collection and in issuing permits to industry to operate in their jurisdiction, local governments are the key to improving environmental conditions throughout the Philippines. The devolution of functions from national agencies is slowing becoming a reality and local government officials and staff are eager to obtain the skills and information needed to fulfill these new responsibilities. US-AEP will help improve the capacity of local government units (LGUs) to address the impact of urbanization on the environment by utilizing U.S. urban management models and collaborating with the World Bank, USAID/Philippines, ADB, ICMA (International City/County Management Association), ICLEI (International Council for Local Environmental Initiatives) and others. The American Consulting Engineers Council will also promote these models through a technical partnership council. We are also proposing support to implement the Clean Cities Center concept in eight pilot cities. Our four priority sectors will be covered as follows: 1) Air: Work with the ADB will continue the FY2000 focus on public outreach for improved air quality in collaboration with the EPA. 2) Water: Collaborate with the ADB in developing and implementing the Pasig River Rehabilitation Project (the activities have been grouped in an activity sheet in the IR 1.4 section). 3) Solid Waste: Continue to assist LGUs through the Solid Waste Association of the Philippines and promote composting and recycling technologies through study tours, seminars, or perhaps a NASDA OPF or NGO grant. 4) Hazardous Waste: Improve the capacity of the Philippines to address hazardous waste management by conducting seminars and study tours, in collaboration with the EPA and USAID/Philippines.

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Country: Philippines

Activity Name: Urban Management and Finance � Resource Cities � Cebu, Philippines

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The Resource Cities program of ICMA is an international partnership program through which the skills and successes of a select U.S. city are shared with a city in a developing or transitional country. Under this initiative, the city of Cebu, Philippines would be paired with a U.S. city counterpart to provide technical assistance in improving delivery of environmental services concerning greenhouse gas emissions.

This eighteen month partnership has two phases: Phase I (due to be completed in July 2000) involves a diagnostic whereby an appropriate U.S. city counterpart will be selected based on mutually agreed on activities. Phase II (to be completed by the end of 2001) will involve an exchange for the U.S. and Philippine city officials to agree upon a common objective, discuss best practices, develop a workplan specifying activities required to meet the objectives and exchanges between the cities to fulfill these objectives. A roundtable to share lessons learned will be held at the end of the project. Joseph Batac is the contact at the League of Municipalities. ICLEI�s Manila office will also provide support. (Ann Arbor, Michigan has been selected by the Mayor of Cebu.)

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Improved urban environmental management in Cebu City as a result of best practices sharing between city officials and their U.S. city counterparts.

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Supports the US-AEP Philippines� strategy of improving urban environmental management by strengthening the capacity of LGUs to address the impact of urbanization on the environment by utilizing U.S. urban management models.

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Asian and Regional Partners: City of Cebu, ICLEI (continuing)

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Anticipated Cost Share: Government officials� staff time and office space/materials.

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Milestone Dates: September 2001: roundtable at end of project

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Lead Responsibility for US-AEP: Conchita Silva (LBG), Deborah Kimble (ICMA)

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Primary Intermediate Result: 1.2 Improved urban environmental management

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Date: August 14, 2000

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Country: Philippines

Activity Name: Clean Cities Center

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The Clean Cities Center (CCC) proposal with the League of Cities of the Philippines was developed as part of the CSG project implemented by the Clean Washington Center last year. The Clean Cities project aims to encourage, and if possible require, investors putting up new infrastructure to consider cleaner

production methods and to develop environmental management systems at the design phase of projects, not after the factory is already built using inefficient technologies. In the Philippines, all investments must be approved by local authorities through the mayor's permit. This gives mayors the critical ability to screen new investment proposals and steer the proponents to qualified technical assistance that can help the new investment improve its potential environmental performance. The CCC will provide the technical capacity needed to provide these assessments, and by tying it to the mayor's permit, we can be assured that the investors will take the advice seriously.

Aside from new investments, the CCC will also provide the mayors with the necessary technical support to influence all existing industries within their jurisdiction since the mayor's permit is renewed annually.

Existing companies can be influenced and even trained to adopt waste minimization, pollution prevention and cleaner production technologies. The Clean Cities personnel in each city can work with companies to ensure that clean technologies are considered in existing and any new plants being built.

Several of the key officials involved in the CCC will attend a Clean Cities Training Institute program in Seattle.

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Establishment of Clean Cities Centers in 8-16 cities in the Philippines that have the ability to encourage and influence industries to use clean technologies and environmental management systems.

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Supports the US-AEP Philippines� strategy of improving urban environmental management by strengthening the capacity of LGUs to address the impact of urbanization on the environment by utilizing U.S. urban management models.

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Asian and Regional Partners: League of Cities of the Philippines (new)

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Anticipated Cost Share: Government officials� staff time and office space/materials.

Milestone Dates: Training TBD

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Lead Responsibility for US-AEP: Joy Abelardo-Jochico (ACEC), Conchita Silva (LBG)

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Primary Intermediate Result: 1.2 Improved urban environmental management

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Date: August 14, 2000

US-AEP Activity Description IR 1.2

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Country: Philippines

Activity Name: LGU Capability Building using the City Development Strategy and Technical Partnership Council

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This is a continuation of the initial support provided by US-AEP in FY2000 to local government units (LGUs) through the World Bank�s City Development Strategy (CDS) Program. The CDS is both a planning process and a product that promotes partnership among the various stakeholders in a city�the city government, private business, civil society, academe and the national agencies�to jointly analyze growth issues, develop a vision for the future, formulate development strategies, design programs, prioritize projects, mobilize resources, implement, and monitor and evaluate implementation. CDS has finished with seven Philippine cities and is now starting with a new batch of 20 more cities. The support that US-AEP will provide essentially involves capability building in urban planning and management in the context of best practices in the U.S. for the new CDS cities including the other members of the League of Cities. ACEC�s Technical Partnership Council will bring together private sector professionals from the U.S. and those based in Manila to conduct a series of workshops. The workshops aim to enhance the decision-making capacity of the local chief executives and their technical staff by demonstrating practical solutions to problems caused by urbanization through the following themes/topics:

1. Urban planning and the value of benchmarking/data management (to be completed in FY2000)

2. Prioritizing infrastructure needs

3. Creditworthiness and privatization

In the process of conducting these workshops, a module on these topics will be developed and shared with the League of Cities to complement the strategy of the World Bank to institutionalize the CDS process within the League.

This activity will support US-AEP�s urban program specifically by a) engaging urban leaders and stakeholders in this quest; b) promoting U.S. and regional best practices and methods; c) leveraging bilateral, multilateral and private resources.

Representatives of some of the cities will be sent to the U.S. for a study tour if funds become available.

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Expected Results:

Improved capacity of local government units (LGUs) to address the impact of urbanization on the environment by utilizing U.S. urban management models and collaborating with the World Bank and the League of Cities.

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This activity supports the country objective to improve Philippine government management of the urban environment.

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Asian and Regional Partners: League of Cities (new), CDS cities (some new and some continuing), World Bank (continuing)

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Anticipated Cost Share:

The League of Cities and the World Bank will pay for logistical and administrative costs.

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Milestone Dates: Prioritizing infrastructure needs (second quarter) Creditworthiness and privatization (third quarter)

Study Tour - TBD

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Lead Responsibility for US-AEP: Ben Martin/Joy Abelardo-Jochico

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Primary Intermediate Result: IR 1.2 Improved urban environmental management

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Date: August 13, 2000

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Country: Philippines

Activity Name: Sustainable Financing of Environmental Management in Batangas Province

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This activity will support the Provincial Government�s Environment and Natural Resources Office (PG-ENRO) of Batangas to develop and implement market-based instruments as a tool for sustainable financing of environmental management. The support requested is an exchange program for select professionals (4) from the Provincial Government Office to visit relevant organizations in the U.S. to familiarize them with the development and applications of market based instruments as a tool to improve environmental performance.

Batangas contributes substantially to the country�s economic growth. It is host to the country�s second largest and most modern international port, power generating plants, two of the three oil refineries, and 12 industrial estates. Because of its proactive environmental initiatives and successes, the DENR recently devolved some of its functions to the PG-ENRO. This is the first time that DENR has devolved its functions to a local government unit.

Mechanisms for preventing serious environmental threats are in place in Batangas, however, these may not be adequate given the significant increase in development in the area. An alternative approach seen to complement existing programs is the mobilization of financial resources through innovative financing mechanisms to ensure sustainability of efforts and resources. This could include the application of disposal charges, monetary bonds based on risks and liability schemes, pollution charges, user fees and environmental fees.

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Creation of a Batangas Bay Environmental Management Fund. Increased understanding of various market-based instruments by the PG-ENRO staff who participate.

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Relationship to US-AEP Country Strategy:

Supports the US-AEP Philippine strategy of improving urban environmental management by strengthening the capacity of LGUs to address the impact of urbanization on the environment by adopting US urban management/financing models.

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Asian and Regional Partners: Province of Batangas (continuing)

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Anticipated Cost Share: staff time, office supplies

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Milestone dates: study tour in February/March 2001

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Lead Responsibility for US-AEP: Conchita Silva

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Primary Intermediate Result: 1.2 Improved urban environmental management

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Date: August 15, 2000

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Country: Philippines

Activity Name: Public Outreach and Communications Training

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As a part of the ADB�s Metro Manila air quality improvement project and the new Clean Air Act, EPA and US-AEP, in coordination with ADB consultants, will help build the capacity of the Philippine government, NGOs and other stakeholders to develop and implement social marketing outreach campaigns on air pollution. The goals of this activity include increasing a) awareness and understanding of the health effects of mobile and stationary sources of air pollution; b) educating the public about the different issues associated with airborne pollution; and c) implementing public outreach campaigns based on EPA�s "Communications for Environmental Results" training and other strategies by enlisting key stakeholders from government, industry and the public to improve air quality in Manila by reducing mobile and stationary sources of pollution.

Building upon the successful unleaded gasoline public outreach campaign, this activity would help EMB/DENR and NGOs in the Philippines develop their capabilities to promote public awareness, develop their skills in communicating, fund raising and disseminating information to the general public and to professional audiences, and develop and expand education and outreach activities.

This activity will consist of three workshops. The first workshop will enlist key stakeholders to define and finalize an overall public outreach strategic framework to address mobile and stationary sources of pollution. The second and third workshops would focus on developing public outreach campaigns targeting mobile and stationary sources of pollution, respectively. We are currently considering engaging an American NGO to provide advice on fundraising to the Philippine NGOs. Additional budget resources would be required.

In addition, the National Council for Women will go on a U.S. study tour to gather information needed to develop a training and education program for drivers, and bus/jeepney operators.

To finance the production of some campaign materials and coalition secretariat costs, we may apply for another NASDA OPF grant or an NGO grant (we have a request from Earth Savers for a radio soap opera on environment).

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Expected Results: Improved institutional capacity in the Philippines to implement outreach/communication campaigns. DENR staff and consultants responsible for the public outreach component of the ADB-funded Metro Manila air quality improvement project should be ready to implement the communication campaign strategy that will be developed during the training programs. The campaign will promote awareness of air pollution issues and improved air quality management.

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Relationship to US-AEP Country Strategy: This activity meets all three objectives in the strategy and focuses on the first priority sector (air) and is part of our strategy to increase our effectiveness by working with other donors (ADB). Addresses US-AEP goal to raise public awareness to strengthen the environmental market.

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Asian and Regional Partners: ADB, DENR (both continuing), National Council for Women (new)

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Anticipated Cost Share: ADB and DENR will help to organize the workshops. ADB will provide the venue and food. The National Council for Women will pay for their airfare, hotel and per diem (we will provide insurance and ground transportation for them).

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Milestone Dates:

November � Initial workshop to formulate campaign strategy.

January - Conduct 2 workshops to prepare campaign plans for mobile and stationary sources of pollution.

May/June 2001 � NCW study tour

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Lead Responsibility for US-AEP: Lisa Lumbao (US-AEP); Kristy Miller and Sarita Hoyt (EPA).

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Primary Intermediate Result: 1.2 Improved urban environmental management

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Date: July 5, 2000

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Country: Philippines

Activity Name: Improved LGU Capacity to Manage Solid Waste

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The solid waste management crisis in the Philippines deserves a great deal of attention from the local government units (LGUs), which are primarily responsible for delivering this basic service to their constituents. Their technical capability, however, is generally quite low. Last year, US-AEP assisted several LGUs in forming the Solid Waste Management Association of the Philippines (SWAPP) to serve as a network that will be the channel for information-sharing on solid waste management and strengthening LGUs� technical capability in developing solid waste management programs. The following activities are proposed to respond to the above-mentioned needs:

WORKSHOP AND TRAINING FOR LGUs

The Office of the Technology Cooperation (OTC) will work closely with ACEC in organizing a solid waste management workshop with SWAPP and AWMA-Phil. It will strengthen the technical capability of the LGUs, ensure that U.S. firms will be able to participate as technology presenters, and facilitate networking between suppliers (U.S.) and buyers (project hosts).

2^ND NATIONAL SOLID WASTE CONFERENCE AND EXHIBIT

This activity is a follow-up to the first national conference sponsored by US-AEP, World Bank, GOLD (USAID-funded), Environmental Management Bureau, Land Bank, Development Bank of the Philippines and the UWEP/CAPS (Urban Waste Expertise Program/Center for Advanced Philippine

Studies) in November 1999. This year, the recently organized SWAPP will organize a 3-day annual conference to bring LGUs, SWM professionals and service providers to share best practices in solid waste collection, recycling, composting and dumpsite management. Likewise, the conference will also showcase the latest technology through exhibits to elevate present municipal solid waste management practices to a more advanced and ecological level. The conference will also tackle issues on financing and public involvement in solid waste management projects.

RECYCLING AWARENESS CAMPAIGN

We will seek a US-AEP NGO or NASDA OPF grant to engage an NGOs in a more intensive "recycling awareness campaign" in line with the government�s goal to increase recycling in the Philippines from 6% to 12% per year.

DEVELOP A RESOURCE CENTER WITHIN SWAPP

To achieve the goal of SWAPP being an information-sharing network among LGUs to improve their technical capability on solid waste management, SWAPP intends to prepare and publish the following materials this year:

1. Best Practices on Solid Waste Management.
2. Update and obtain publishing rights for the World Bank-funded publication on recycling entitled "Mag-recycle Tayo."
3. National Directory of Recyclers and Junk Shop Dealers in the Philippines.
4. Quarterly newsletter.

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Improved capacity of LGUs to address urban environmental management issues such as solid waste, promote composting and recycling technologies by showcasing American technologies and continued assistance to SWAPP.

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This supports the country objective to improve Philippine government management of solid waste.

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Asian and Regional Partners: SWAPP, GOLD (USAID-funded), World Bank, AWMA-Phil., EMB/DENR (all continuing)

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Anticipated Cost Share:

LGU staff time and travel funds, training venue, office space and equipment for the training center, recycling NGO staff time.

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Milestone Dates:

1. WORKSHOP AND TRAINING FOR LGUs � January 2001
2. 2^ND NATIONAL SOLID WASTE CONFERENCE AND EXHIBIT � November 2000
3. RECYCLING AWARENESS CAMPAIGN � February 2000
4. DEVELOP RESOURCE CENTER WITHIN SWAPP � October-March 2001

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Lead Responsibility for US-AEP: Joy Abelardo-Jochico/Alma Madrazo

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Primary Intermediate Result: IR 1.2 Improved urban environmental management

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Date: August 13, 2000

US-AEP�s industry program is based on the premise of using market-based drivers to change industrial behavior and improve their environmental performance. The industry program in the Philippines was "cutting edge" and provided US-AEP a niche to catalyze and promote improved corporate environmental performance. US-AEP will continue its work in the Philippines to identify, catalyze and promote important emerging trends, and cultivate networks for facilitating change. US-AEP will continue to build the capacity of the Philippine Pollution Prevention Roundtable to promote P2 among Philippine industry and access technical information from NPPR and EPA. We will also solicit a CSG grant to promote clean production programs for manufacturers and one to develop a degree program on environmental management for professionals.

US-AEP Activity Description IR 1.3

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Country: Philippines

Activity Name: Promotion of P2 and CP

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US-AEP will continue to promote the use of P2 and CP in Philippine company operations by helping organize and provide American speakers for conferences in the Philippines and sending key Philippine partners to conferences overseas. We will build on existing partnerships and invest in events that have been successful in the past, as well as undertaking a few new things to broaden our reach. Several small roundtable seminars will be organized by P3R, perhaps in collaboration with PBE, to educate industry members about specific P2/CP technologies that they can employ in their operations. We will help organize these and identify speakers. No activity budget required, only staff time.

1. Conference on CP in Montreal � send two key members of the Philippine Pollution Prevention Roundtable (P3R) and the Asia Pacific Roundtable for Cleaner Production (APRCP) to improve their knowledge of P2/CP issues and techniques for fostering adoption among industry. It is the first International Pollution Prevention Summit and is called, "ENGAGING THE WORLD in advancing pollution prevention and cleaner production." It will be held October 18-20 and is sponsored by the Canadian Centre for Pollution Prevention.
2. Environmental Accounting will be one of the session topics of the Confederation of Asia Pacific Accountants Convention (CAPA) in Manila from November 8-11, 2000. We will fund the participation of a speaker who was the project director of the CSG project that brought environmental accounting to the Philippines. She will also speak at a PBE-organized seminar on Environmental Mediation and Dispute Resolution on November 6-7.
3. US-AEP staff in Manila are heavily involved in planning for the 3^rd APRCP, which will be held in Manila February 28-March 2. Regional US-AEP funds are supporting the event.
4. We will provide a speaker on CP in the chemical industry for the PICHE (Philippine Institute of Chemical Engineers) annual convention in February. The expert will also speak at events organized by the Department of Science and Technology and at least one university (to be planned).
5. We would welcome a CSG grant project focusing on promoting clean production in manufacturing and one to develop a degree program on environmental management for professionals.

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Expected Results: Increased knowledge of P2 and CP among practitioners in the Philippines and strengthened networks among them, leading to improved corporate governance and environmental management.

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Relationship to US-AEP Country Strategy: These activities support our objective to "reduce environmental degradation in the Philippines by promoting pollution prevention and improved industrial and urban environmental management."

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Asian and Regional Partners: Philippine Institute of Certified Public Accountants, Philippine Business for the Environment, Philippine Pollution Prevention Roundtable, Philippine Institute of Chemical Engineers, Asia Pacific Roundtable on Cleaner Production (all continuing)

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Anticipated Cost Share: P3R partners will provide the venue for the small roundtables.

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Milestone Dates: See conference dates in description section above. The P3R small roundtables will be held during Qtr 3 and 4.

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Lead Responsibility for US-AEP: Alma Madrazo

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Primary Intermediate Result: 1.3 Improved corporate governance/environmental management

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Date: July 10, 2000

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Country: Philippines

Activity Name: A Guide to Green Government Procurement

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This activity is a continuation of a program that was initiated in January 2000 for implementation by the Department of Environment and Natural Resources (DENR). The objective is to integrate environmental considerations into DENR�s buying decisions, taking account of environmental costs and benefits and, when relevant, evaluating the environmental performance of tenderers in providing products and services, including any relevant manufacturing processes.

An Action Plan has been developed by a Task Force and approved by the DENR Secretary. Activities include:

1. Roundtable discussions to develop a framework and identify staff responsibilities;
2. Develop information tools and handbook;
3. Seminar/workshops for DENR staff and suppliers (send two speakers from the U.S. in Jan.);
4. Implement a pilot project to test capability of DENR to implement a nationwide program;
5. Environmental Exchange Program

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Expected Results: A practical program for DENR to encourage its suppliers to improve their environmental performance.

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Relationship to US-AEP Country Strategy: This activity directly supports the country strategy to improve corporate environmental management through supply chain environmental management.

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Asian and Regional Partners: DENR (continuing)

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Anticipated Cost Share: Staff time, office facilities and seminar venue.

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Milestone Dates:

December 2000 - Complete design of program

January 2001 � Seminar in Manila and develop handbook

March 2001- Complete Handbook, a step-by-step guide for integrating environment into the procurement process.

July 2001-Implement pilot project

September 2001-Implement supplier outreach program to accredited suppliers in pilot region.

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Lead Responsibility for US-AEP: Conchita Silva

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Primary Intermediate Result: 1.3 Improved corporate governance/environmental management

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Date: July 10, 2000

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Country: Philippines

Activity Name: Support Peer Evaluation Review

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Description of Activity: This activity will assist IISE (Industrial Initiative for Sustainable Development), a USAID/Philippines-funded project, to provide logistical requirements and manage a QMS/MLA (Quality Management System/ Multilateral Recognition Agreement) "Peer Evaluation Review" of the Bureau of Product Standards� (BPS) ISO 9000 accreditation system.

This involves provision of support services and coordination to BPS (of the Philippine Department of Trade and Industry). The support will facilitate and fast track BPS�s program to develop an independent national accreditation board for environmental management.

Funds were obligated in FY2000 (as part of the $150,000 in joint projects with USAID) to cover the cost of international airfare and per diem of 2 evaluators who will be selected by the Pacific Accreditation Cooperation. The evaluators will carry out an office audit and on-the-job evaluation of BPS as auditors using Guide ISO 61 and International Forum Guidelines. US-AEP will also cover the salary for a local accreditation specialist for approx. 3 months. The specialist will assemble the necessary EMS and personnel certification documentation for BPS. FY2001 funds are being requested to continue this support so that the evaluation can be completed. A follow up visit by the evaluators will probably be needed as well as continued funding of the staff position, which will be funded by USAID/Philippines.

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Expected Results: Achievement of an MLA (multilateral recognition agreement) for Quality Management System. International recognition of the Philippines� accreditation system will encourage more firms to seek certification, thereby encouraging improved environmental management. Production of EMS personnel certification documentation.

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Relationship to US-AEP Country Strategy: This activity supports the country objective to reduce environmental degradation in the Philippines by promoting improved industrial and urban environmental management.

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Asian and Regional Partners: Bureau of Product Standards (continuing)

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Anticipated Cost Share: BPS staff time, office space and materials.

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November 2000 Peer Evaluation Review completed

January 2001 Corrective Actions Accepted

February 2001 EMS Personnel certification completed

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Lead Responsibility for US-AEP: Conchita Silva

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Primary Intermediate Result: 1.3 Improved corporate governance/environmental management

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Date: July 10, 2000

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Country: Philippines

Activity Name: Adoption of Energy Efficient Technologies by Philippine Industries

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The project aims to make information available to Philippine industries on state-of-the-art energy efficient technologies, and to increase their adoption of these technologies and energy management programs.

The participants of the three-week study tour to the U.S. shall be selected from industry and government and spearheaded by the Energy Management Association of the Philippines (ENMAP). About seven participants shall be selected. The study tour aims to promote awareness and enhance the knowledge of the participants on the various energy efficient technologies currently being adopted in the U.S. Through discussions with the company representatives, the participants will be able to assess the advantages and benefits that can be derived from adopting such technologies.

After the study tour, a two-day seminar on energy efficient technologies shall be conducted in Manila. The seminar shall aim to disseminate information on the role of adopting energy efficient technologies for environmental protection. Participants of the seminar shall be invited from industry, government, policy makers, academe and other energy organizations. Experts from the U.S. shall be invited to give lectures on the various energy efficient technologies being adopted in the U.S. citing their advantages and benefits to the industry and to the country as well.

ENMAP shall render technical assistance to selected industries needing consultant services to get started in adopting energy efficient technologies or energy management programs. Local consultants will be tapped.

ENMAP shall also disseminate information through the publication of technical manuals, brochures, and guidebooks. It shall prepare a compendium of energy efficient technologies available in the U.S. and locally. It shall also prepare a manual of success stories of local companies that benefited by adopting energy efficient technologies.

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Expected Results: Increased capacity of selected industries to adopt energy efficient technologies and energy management systems, based on experience gained in the U.S. For the Philippine industrial sector as a whole, written information disseminated and available locally to assist firms in adopting energy efficient technologies and practices.

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Relationship to US-AEP Country Strategy: An objective of the country strategy is to reduce environmental degradation in the Philippines by promoting energy efficiency and climate change mitigation.

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Asian and Regional Partners: Energy Management Association of the Philippines (new), Phil. DOE (continuing)

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Anticipated Cost Share: ENMAP staff time and technical assistance.

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Milestone Dates: Study Tour Q1; Conduct Seminar Q2; Technical assistance to industries Q3;

Preparation of publications Q2 � Q4

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Lead Responsibility for US-AEP: Alma Madrazo (Manila); Judith Barry (Washington)

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Primary Intermediate Result: 1.3 Improved corporate governance/environmental management

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Date: July 4, 2000

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Country: Regional

Activity Name: Asian Benchmarking Community (ABC)

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Description of Activity: The "ABC" activity is an umbrella for all of the industrial and urban environmental measurement and disclosure activities that The Policy Group would like to initiate, sponsor, and encourage over the next several years. For the now, the ABC encompasses two activities: 1) a "benchmarking" activities with small-and-medium enterprises (focused in Indonesia and Malaysia), and 2) work with the internationally-organized Global Reporting Initiative (GRI) (focused in the Philippines, Thailand, Malaysia and Korea).

1. The benchmarking activities are the less-developed of the two. Our colleagues in Indonesia have identified a few export sectors that have strong leadership potential. The cement sector, for instance, is extremely sensitive to rising energy costs; the crumb rubber sector is a water-intensive export sector (one partner company could be Goodyear Tire); and palm oil looks promising given its regional topicality and the potential for collaboration with Malaysia. (See attached meeting notes from Mr. Achmad Djani and Mr. Made Setiawan�s visit to Washington, D.C. in May 2000.) We have committed to identifying appropriate donors and partners that can contribute to this initiative.
2. Our plans with GRI are better developed. As today�s companies�multinational corporations, national companies, and small-and-medium enterprises (SMEs)�go about setting environmental goals, identifying industrial processes for improvement, and making significant strides toward sustainable development, they rely on a range of methods and tools. Within this corporate toolbox, environmental performance indicators (measurements) and corporate environmental reports (for internal and public use) play an important role. GRI began efforts in 1997 to design global guidelines for just such measurement and disclosure efforts. GRI plans to release its most recent version of Guidelines for Reporting on the Environmental, Social, and Economic Aspects of Corporate Activities in June 2000.

Several corporations and organizations from Malaysia, Korea, the Philippines, and Thailand plan to experiment with these guidelines throughout 2000, using them as a model to create�in some cases for the first time�their own corporate environmental reports. In addition to actual corporate publications, these participants have agreed to provide candid feedback to the international environmental community about the usefulness and relevancy of such guidelines from an Asia-Pacific perspective. Participants will assess 1) how the guidelines interact with other public information already required by public agencies, shareholders, or partners, and 2) how this information may prove useful to their own internal planning and goal-setting strategies.

US-AEP and its partner, GIN-Asia, will collect and document this feedback and will provide an overarching analysis, including some observations regarding the appropriateness of the GRI guideline tool for differently structured firms in markedly different industries and regulatory environments. The authors will also make recommendations for implementation of the guidelines, including development of a clearinghouse for corporations that have already tested the GRI guidelines and would be interested in serving as mentors to other non-competitor companies that may be trying the GRI guidelines for the first time.

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Expected Results: We expect to have these countries teams share their lessons learned in environmental benchmarking and disclosure in a way that will benefit that international community that is currently setting standards and developing a process related to these issues. Asian participants will have an opportunity to provide input through two scheduled conferences (5 participants to Washington, D.C. in October 2000 and 5 participants to Bangkok in January 2001), a US-AEP publication, and�hopefully�increased participation on the GRI Steering Committee.

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Asian and Regional Partners:

The Greening of Industry Network � Asia (GIN-Asia) as a lead partner, with possible participants from:

Indonesia: 1) The Pollution Prevention Roundtable & its industry associations; 2) BAPEDAL / PROPER

Korea: LG Corp. and other chaebol

Philippines: 1) Philippine Business for the Environment & its members (Nestle, Unilever, & San Miguel?)

Thailand: 1) CP; 2) Shaha Patana; 3) Siam Kraft

Malaysia: 1) Malaysia Business Council for Sustainable Development & its member companies

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Anticipated Cost Share:

TBD. Cost of testing and reporting on GRI guidelines. Conference registrations.

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Milestone Dates:

Final report compiled from GRI participants: October 2000

Key participants travel to Washington, D.C. to speak to GRI�s annual conference: October 2000

Key participants travel to Bangkok to speak to GIN-Asia�s annual conference: January 2001

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Lead Responsibility for US-AEP: Brenda Bateman (The Policy Group)

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Primary Intermediate Result: IR 1.3 Corporate environmental management/IR 1.1 Improved public policy

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Date: June 15, 2000

More than any other industry, the environmental sector is contingent on the strength of the economy.

Although the Philippines has recovered from the effects of the financial crisis, projected GDP growth in 2000 is a mere 3.5 � 4 percent. The environmental market started to recover in 1999, and still has good prospects, but recent economic signals point to continued slow growth in the overall economy. The pollution control market is estimated to be worth $500 million and is dominated by American equipment. However, last year�s expected upgrading of the Environmental Management Bureau of the Department of Environment and Natural Resources to a line agency with more staff and resources, has not happened. This leaves the government�s enforcement of environmental laws in a very weak state, which reduced demand.

Implementation of the Clean Air Act (CAA) is expected to increase the market for air pollution control and monitoring equipment, which is almost 100 percent import dependent. Cement plants, power plants, and refineries will need air pollution control equipment. Water supply and wastewater is considered to be the largest pollution control market. The biggest sectors are: semiconductor and electronics industry, account for 70% of Philippine exports, automotive industry, in which U.S. firms are re-entering the market, the flourishing food processing industry, and industrial estates that need common treatment facilities for their locators. Significant business opportunities also exist in the solid waste sector due to the urgency of the problem and the availability of donor funds and a new government contract for landfill development in greater Metro Manila. The hazardous waste sector offers demand from industry, especially the electronics industry, but so far, efforts to establish a common treatment facility have not succeeded. There is one large electronics company that is negotiating with a treatment company to co-locate with its new plant and treat waste from nearby factories as well.

US-AEP�s trade and investment goal is increased market share for U.S. environmental firms in the Philippines. This is reported as success stories, which include sales for U.S. firms, joint ventures, agent-distributorship agreements, and other market entry milestones. This will be done by providing U.S. firms with access to market intelligence and trade opportunities and facilitate relationship-building between local buyers and US sellers. Strategies include: 1) Organize exchanges and study tours, provide market information through IMIs, ISAs, quality trade leads with follow-up, videoconferences, provide matchmaking venues through Gold Key Service, Platinum Key Service, trade events and trade shows, and trade missions. 2) Work with donors to develop projects in our priority sectors and assist US firms in competing for the resulting business opportunities. 3) Collaborate with other donor-funded projects to increase effectiveness and coordination.

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Country: Philippines

Activity Name: Promotion of Trade and Investment in the Air Sector

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US-AEP�s Office of Technology Cooperation (OTC) and the specialist in the Commercial Liaison Office to the ADB will work together to promote U.S. firm involvement in the business opportunities arising from the ADB-funded Metro Manila Air Quality Improvement Sector Development Program loan and implementation of the Clean Air Act. This is a continuation of work done over the past two years. Specific activities planned at this time are:

1. A videoconference on the Industrial Air Emissions Phase 2 feasibility study results (project was funded by TDA) will be held. The event will identify and link interested firms in the U.S. to the project managers in Manila, thereby encouraging the firms to pursue related business opportunities and giving them useful contacts and information. It will be held in December with assistance from ETNA and NASDA and make use of the Commercial Service�s facilities.
2. A workshop on the planned Motor Vehicle Inspection System is currently being discussed with the ADB, AWMA-Philippine Section and the Land Transportation Office (executing agency for the Motor Vehicle Inspection System). USAID and TDA will also be involved.
3. US-AEP staff (mentioned above) will prepare IMIs and submit trade leads on air sector opportunities. No activity budget required.
4. The AWMA-Phil. Section will conduct technical sessions on the air sector. US-AEP will provide speakers (1 through EEP, the rest will be U.S. firms interested in the market).
5. The OTC will organize a delegation to attend the AWMA conference in the U.S. in June (Orlando) and a spin-off site visit as has been done in previous years.

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Sales (and other commercial success stories) for U.S. firms in the air sector.

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These activities meet our objective to transfer U.S. environmental technology and best practices to the Philippines, focus on our top priority sector, and are part of our work with the ADB.

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Asian and Regional Partners: ADB (continuing), AWMA-Phil. (continuing), Land Transportation Office (new)

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Anticipated Cost Share: The private sector delegates to the AWMA conference pay all their own travel and per diem costs, except five who receive a fixed reimbursement.

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Milestone Dates: Videoconference in December, AWMA in June.

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Lead Responsibility for US-AEP: Alma Madrazo and Stacy Bonnaffons

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Primary Intermediate Result: 1.4 Increased trade and investment

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Date: July 20, 2000

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Country: Philippines

Activity Name: Promotion of Trade and Investment in the Water and Wastewater Sector

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These activities will continue to develop the market and increase sales of water and wastewater treatment equipment and services.

WEFTEC 2000, Anaheim, California, USA � October 14-17, 2000

The Tech Rep will recruit, organize, and lead a big delegation of buyers, clients, decision-makers to the Annual Meeting and Exhibition of the Water Environment Federation (WEF) � USA. The delegates will have one-on-one meetings, visit wastewater treatment facilities and will have a spin-off site visit in Hawaii. The Tech Rep will make a presentation on the "Environmental Business Opportunities in the Philippines" and will have her own one-on-one meetings.

CATALOG SHOW & EXHIBIT BOOTH, Oct. 18-21, 2000, Cebu City

Office of Technology Cooperation (OTC), US-AEP Manila will have a catalog show and an exhibit booth during the annual convention of the Philippine Society of Mechanical Engineers (PSME) in Cebu City. OTC will recruit companies to display their catalogs and will provide speakers to the convention. This activity is designed to gather trade leads and to gain more exposure and good publicity for US-AEP.

AQUATECH & ENVIRONMENT PHILIPPINES 2000, Nov. 27-29, 2000

OTC will have a U.S. Pavilion at this big environment show. Recruitment is 100% done by OTC, US-AEP Manila. A welcome and networking reception, one-on-one meetings, and technology presentations will be set-up for the participating U.S. environmental firms.

AMERICAN WATERWORKS ASSOCIATION CONFERENCE AND TRADE SHOW, June 2001

OTC and the ADB Commercial Liaison Office will send two participants to this show in Washington D.C.

PASIG RIVER PROJECT

Tech Rep will continue to alert U.S. firms on existing opportunities related to this $175 million ADB-funded project through trade leads, IMIs and market updates.

WEAP TECHNICAL SESSIONS

To support Water Environment Association of the Philippines in its many technical sessions, we will provide 2 speakers for the year (3^RD & 4^TH quarter)

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Increased trade and investment activities manifested by increase in the number of trade leads generated, success stories, joint venture and distributorship agreements.

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Relationship to US-AEP Country Strategy:

This is in line with the country strategy, water and wastewater sector is one of our priority sectors for FY 2001.

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Asian and Regional Partners:

Water Environment Association of the Philippines (WEAP) (continuing), Philippine Society of Mechanical Engineers (PSME) (new)

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Anticipated Cost Share:

WEFTEC delegates will shoulder their own expenses in attending the annual meeting and exhibition, support from AEP will be setting up of 1 on 1 meetings and spin-off site visits.

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Milestone Dates:

Q1, Q3, and Q4 (see details above)

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Lead Responsibility for US-AEP: Alma Madrazo

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Primary Intermediate Result: IR 1.4 Increased trade and investment

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Date: July 20, 2000

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Country: Philippines

Activity Name: Promotion of Trade and Investment in the Solid Waste Management Sector

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With the expected passage of the Solid Waste Act triggered by the tragic dumpsite incident in Payatas, the following activities will continue to develop the market and increase the chances of US firms in getting most of the solid waste management projects.

WASTECON 2000, CINCINNATI, OHIO, USA � October 23-26, 2000

The Tech Rep will recruit, organize, and lead a delegation of buyers, clients, and decision-makers to the WASTEON 2000 Annual International Solid Waste Exposition. The delegation will be made up mostly of LGU members of SWAPP. The delegates will have the opportunity to see collection/hauling equipment, composting equipment, landfill, resource recovery, odor control equipment, and transfer trailers. They can attend technical sessions and meet engineering services providers. A visit to the existing solid waste and landfill facilities in the area will be part of the activity.

Considering the crisis existing in Metro Manila, this first delegation is important in helping and assisting the government in the implementation of the pending Solid Waste Act which prohibits open dumpsites and may require the provision of a sanitary landfill for each municipality.

ETV FOR SOLID WASTE TREATMENT AND DISPOSAL METHODS

Work with CERF in assisting DOST to establish the Environmental Technology Verification Center and to help them test their ETV protocol.

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Increased trade and investment activities manifested by increase in the number of trade leads generated, success stories, joint venture and distributorship agreements.

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Relationship to US-AEP Country Strategy:

This is in line with the country strategy, solid waste management and disposal is one of our priority sectors for FY 2001.

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Asian and Regional Partners:

SWAPP/ACEC (continuing), Recycling NGO (new)

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Anticipated Cost Share:

WASTECON delegates will shoulder their own expenses in attending the International Solid Waste Exposition, support from US-AEP will be expected in terms of logistical support and some reimbursements or even EEP funding considering that most of the delegates will be local government unit heads (mayors or general services manager of cities and municipalities who are in charge of garbage handling).

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Milestone Dates:

Wastecon � October 2000, ETV to be determined

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Lead Responsibility for US-AEP: Alma Madrazo and Joy A. Jochico

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Primary Intermediate Result: IR 1.4 Increased trade and investment

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Date: July 20, 2000

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Country: Philippines

Activity Name: Promotion of Trade and Investment and Improved Capacity to Manage Hazardous Waste

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The focus of these activities is implementation of the Interagency Bilateral Cooperation on Environment and Public Health initiative. EPA's activities will include the sharing and exchange of information, best management practices and partnerships through capacity building exercises and consultations among government and on-government experts, directly and by electronic means, particularly to enhance Philippine institutional and technical capacity and the transfer of appropriate technologies. The specifics of this cooperation will be defined in future discussion of the Interagency Teams. Two study tours are planned. One will be done in collaboration with EPA and focus on the treatment of PCBs with participation from the Department of Environment, National Power Corp, electric utilities and independent power producers.

The other study tour is being planned by the Philippine US-AEP team to advance the Industrial Waste Exchange Project (administered by the Philippine Business for the Environment) and educate participants on alternative hazardous waste treatment technologies. Participants will include Philippine Business for Environment, Pasig River Commission, industrial estate representative, and the Semiconductor and Electronics Industry.

Two workshops will be organized in collaboration with EPA, one focusing on PCBs that will be co-organized with the Pacific Basin Consortium on Hazardous Waste Research & Management, and another focusing on hazardous waste treatment in a more general way. AMCHAM and other chambers of industry will be involved.

We will discuss the Pasig River Project study on hazardous waste with the ADB and TDA to determine if our involvement is needed and to facilitate discussions on establishing a hazardous waste treatment facility.

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Increased knowledge of hazardous waste treatment technologies and approaches among participants in the above activities that will lead to the transfer of environmental technology through trade and investment.

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This is in line with our country strategy to address the existing hazardous waste handling, treatment, and disposal problems in the country.

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Asian and Regional Partners: DENR, AMCHAM, Pacific Basin and Hazardous Waste Management Research & Management (all continuing)

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Anticipated Cost Share:

Study tour participants from the private sector will be asked to shoulder their international and domestic airfare. Workshop co-organizer will pay part of the logistical support such as venue, invitations, and site visit arrangements.

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Milestone Dates: TBD

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Lead Responsibility for US-AEP: Alma Madrazo and Lisa Lumbao (US-AEP) and Carolyn Barley (EPA)

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Primary Intermediate Result: IR 1.4 Increased trade and investment

Date: July 21, 2000

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Country: Philippines

Activity Name: EnviroVentures: Investing in Sustainable Development in the Philippines

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EnviroVentures is a new lending facility dedicated to investing in sustainable development in the Philippines. It is an initiative of Counterpart International and WorldWIDE created with support from US-AEP and OPIC (Overseas Private Investment Corporation). Counterpart is an NGO based in Washington, D.C. that provides humanitarian and developmental assistance throughout the world. WorldWIDE develops and advances projects and policies that support women, communities and the environment across the globe.

EnviroVentures will invest in Philippine business projects that promote sustainable development and environmental well being. EnviroVentures and its local partner will establish a legally separate joint-venture company for each investment project. There will be a focus on small and medium-sized enterprises. OPIC is providing a $750,000 loan and US-AEP is providing a $250,000 grant to fund the initial operational costs.

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Growing the value of small and medium-sized enterprises while protecting the environment.

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This activity is consistent with the country objective of reducing environmental degradation in the Philippines.

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Asian and Regional Partners:

EnviroVentures will establish a local entity (new).

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Anticipated Cost Share:

The Philippine company will contribute 60 percent of the joint-venture company�s assets.

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Milestone Dates:

Two projects by April 2001.

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Lead Responsibility for US-AEP: Alma Madrazo and Lisa Lumbao

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Primary Intermediate Result: 1.4 Increased trade and investment

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Date: July 25, 2000