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Manila’s Payatas dump site residents benefits the clean energy from Methane

AFP © Philippines turns trash into clean energy windfall

Philippines turn trash into clean energy windfall

Manila - Payatas residents experienced a first kilowatt power generated from the methane gas and now more likely benefiting the power from the garbage. Mrs.  Teresita Mabignay does her ironing using free electricity on the slope of a garbage dump, an unlikely beneficiary of efforts to turn the Philippines' growing rubbish problems into a clean-energy windfall.

Mabignay lives at the base of one of Manila's largest landfills, which was the first in the country to have its methane gas converted into power as part of a United Nations' programme aimed at tackling climate change.

Decomposing rubbish produces methane, which is one of the greenhouse gases that scientists blame for global warming, and turning it into electricity saves it from rising up into the atmosphere while reducing the need to burn fossil fuels.

The methane is captured with pipes that are dug into the landfill, similar to wells that extract gas from under the ground or ocean. Methane is then sucked down to a power station at the bottom of the dumpsite and pumped into generators to make electricity.

For the past few years Mabignay and other housewives from the slum community at the bottom of the Payatas landfill have been given free access to the power at a hall built at the dumpsite.

"It really helps because it cuts down on our electricity bills... sometimes we use the savings to buy food," said Mabignay, 50, whose husband earns the equivalent of about $200 a month working as a security guard at the dumpsite.

The company behind the project, Pangea Green Energy Philippines, could afford to be generous with its electricity as it was earning hundreds of thousands dollars to capture and convert the gas.

Under the UN programme, industrialized countries can meet their Kyoto Protocol commitments to cut greenhouse gas output by funding projects that reduce emissions in developing nations such as the Philippines.

Companies in developing countries earn credits for reducing emissions, each equivalent to one ton of carbon dioxide. The credits are then sold to companies, institutions or governments in industrialised countries to offset their emissions.

Pangea president Jennifer Fernan Campos said the Payatas energy project was set up to take advantage of the UN scheme, with the first kilowatts generated in 2008.

"We are also very gratified to be helping the environment and the community. In our own little way we are mitigating greenhouse gas emissions," she said.

Thousands of renewable energy projects in developing countries have been registered under the UN's Clean Development Mechanism since it began in 2005, including wind farms, solar stations and hydropower dams.

There have also been many waste-to-energy projects, with four others in the Philippines starting up after the pioneering Pangea operation, according to industry website www.cdmpipeline.org.

However the market price for each ton of greenhouse gas that companies save started dropping sharply in 2010, partly because of the economic meltdown in Europe which was the biggest source of revenues.

"Our rate is a floating one so when the market collapsed, we suffered," Fernan Campos said, explaining they made the mistake of not locking in a higher price when they had the chance.

Industry experts have warned the carbon trading scheme is in danger because of the collapse in prices, and many clean-energy projects face an uncertain future.

However Fernan Campos said the Payatas project had become commercially viable without the UN-channeled money.

She said Pangea this month expanded capacity from 200 kilowatts to one megawatt, and began selling directly onto Manila's electricity grid.

Previously the electricity generated at Payatas had just been used to power operations at the landfill and for the nearby slum communities via the ironing project and neighborhood street lights.

The amount of greenhouse gases that are now being saved at Payatas is the equivalent to taking 18,000 cars off Manila's roads, according to Fernan Campos.

She said the project had a host of other environmental benefits, including less direct air pollution for people living close by. The extracted methane gas could also no longer contaminate the water system.

Nevertheless, Greenpeace and some other environment groups oppose waste-to-energy projects, arguing their green credentials are often exaggerated and that they create a financial incentive for more rubbish to be dumped.

"The only way to address the issue of methane generation from waste is to stop the rubbish going to the landfill in the first place," Greenpeace Philippines programme manager Beau Baconguis said.

"Having such projects in place encourages the generation of waste, rather than eliminating it, because you need waste to run the facility."

Baconguis said there was no vision from the Philippine government to reduce waste, and that Manila's roughly 12 million residents were producing between 6,000 and 8,000 tonnes of rubbish every day.

However Fernan Campos insisted Pangea was not lobbying for, or encouraging, more waste to be dumped at Payatas.

She said the local government had implemented recycling and other waste-reduction policies in recent years that had seen the amount of rubbish going into the landfill drop from 1,800 to 1,200 tons a day.

"We are just clearing whatever is there, and helping the environment at the same time," she said.

Yahoo News

Philippines will Loan Half Billion US Dollars from Japan for Railway & Bohol Air

Japan to lend Philippines $570 Million for rail, airport

The Philippines would borrow more than $570 million from Japan to fund an expansion of the capital's light rail system and a new airport for one of the nation's top tourist attractions.

More than three-quarters of the package will be for the Manila Light Rail Transit system's expansion to two neighboring provinces, the foreign department and the Japanese embassy said in separate statements.

The transport department is expected to tender shortly for the 81.3-billion-peso ($1.98-billion) project, which will provide urgently needed alternatives for people commuting between Manila and nearby areas.

"This project... (will be) contributing to the mitigation of road congestion in Metro Manila," a Japanese embassy statement said.

The light rail expansions, covering 15.7 kilometers (9.7 miles), are due to be completed by 2015.

The loan will also provide part of the financing of a $190.5-million airport planned on Panglao island adjacent to Bohol island.

This will replace a small airport now in operation on Bohol, which has seen massive growth in tourist traffic in recent years, the embassy statement said.

Japanese ambassador to Manila Toshinao Urabe signed and exchanged notes on the projects on Monday, the two governments said.

Neither side disclosed details about the terms of the loan, worth 54.03 billion yen ($573 million), nor when the money would be distributed.

Japan has accounted for about a third of all official development assistance to the Philippines in recent years, according to the embassy.

Global Post

GOING GLOBAL: Filipino competitiveness is NOT GOOD, IT’S GREAT!

Illustration by REY RIVERA

By James Michael Lafferty

MANILA, Philippines -I was a panelist last week in the Euromoney Philippines Investment Forum along with many dignitaries, including President Benigno Aquino III and Secretary of Finance Cesar Purisima. One of those "standard" questions came up concerning, "What can the Philippines do to improve competitiveness?" I think many people were shocked at how bullish I am on the Philippines. And I am not saying there is nothing to improve upon. It is just that, from my vantage point of leading multinationals in this country, this nation is incredibly competitive! Let me tell a few stories to explain why.

I have worked for some of the biggest and most respected consumer goods companies: Procter and Gamble. Coca-Cola. And now BAT. And on five continents and over 40 countries.

In every country, there are indeed competitors — some local, but typically the ones concerned being other multinationals. Like when I was at Coke, my biggest worry was Pepsi most of the time, not the local cola brand.

There is, however, one nation that stands out. Where the local companies are so good, so well run, that they represent the big competitive risk. And that country is right here, the Philippines!

Let me give some examples.

P&G is the biggest laundry detergent company in the world. By far. And in normal cases, the key competitors are companies like Unilever, or Henkel, as examples. But not here. In my time leading P&G, the leader of the laundry detergent bar segment, which was nearly half of the market, was a great brand called Champion from Peerless. A local company. Well run. A very formidable competitor. They were winning market shares. And they deserved it, doing a better job of delivering real consumer value. I respected them. And they made me better.

You can see the same in many, if not most, consumer categories. Diapers have EQ, a brilliant local brand. Toothpaste has Hapee. And there are many more: Splash Corporation, Belo Skincare, Alaska Milk — all local Filipino companies that are well run, hyper-competitive, and winning market shares.

I have never seen a market like this. So competitive. So good at turning out world-class companies and talent.

My two favorite examples start with iced tea. I can only imagine if I was a consultant, and a local company came to me and asked, "Do you think we can win if we enter a category dominated by Coca-Cola, Pepsi Cola, Unilever, and Nestle?" My answer would be, "Don't be crazy, you are taking on four monsters. Go find something else to compete in!"

Well, I am glad my friend Lance Gokongwei and his colleagues at URC never asked me. Because what they did is extraordinary. They entered. They had the unique name, flavors, and distribution strategy of C2. And in a few short years, they took the lead from the big boys. It's about as impressive a story as there is. In fact, it's a lot more impressive in my view than the story of Bill Gates starting up in a garage!

Finally, when I retired from P&G and left the Philippines, sadly, for my new role in Nigeria as CEO of Coca-Cola, I met in my first week in Lagos with my top customer, an owner of the largest fast-food chain called Chicken Republic. We were chatting and he asked me where I came from. I answered, "The Philippines." And I will never forget his answer.

"Oh, my gosh! That's neat! My hero is a Filipino."

So I, of course, asked, "Who is that?"

His answer was, "Tony Tan, the founder of Jollibee. And let me tell you why. I am today the biggest fast food chain in Nigeria. But we know McDonald's is coming. And it is scary, all their money and might and PR. But we have hope. Because somewhere out there in this world, there is a local chain that has succeeded in beating McDonald's, and keeping leadership. And that is Jollibee."

I loved it. Even in the middle of Nigeria, the excellence of Filipino business is recognized and cheered.

Nine months later, upon the gracious invitation of Tony Tan and his team at Jollibee, I escorted my Nigerian customer and his team to Manila for a one-week visit with Jollibee to learn. It was a wonderful experience, and the entire group could not say enough good things about Jollibee, their leadership, and their commitment to excellence. It is a great, great company.

I could go on and on. This country has amazing competitiveness. Yes, we can do more. We can continue to truly knock down barriers to free market competition, to level the playing field like was recently done in tobacco, to allow more companies to enter and invest. We can continue to push for investment-grade ratings, to open up more capital markets to our businesses. We can upgrade more infrastructure.  The administration is pushing all the right buttons. Anyone can see it.

And I tell you this: with the amazing base of talent, skill and competitiveness this nation has right now, if we fix these things, it will be downright exciting — and scary to some — how competitive this country's businesses can be.

The Philippine Star

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