Philippines: Environmental Market Analysis Addendum
The food and beverage industry appears to be a high priority with a
growing economic base, even through the crisis, and intense regulatory
pressure. This industry has received more Cease and Desist orders than
any other industry and represented the single greatest target of regulatory
sanctions in 1996. If combined with the related segments of fish
canning, meat processing, agroprocessing, and coconut processing, the
segment represents nearly 22% of all sanctions. If sugar milling and
refining is included, the number jumps to 33%. If current regulatory efforts
are focused similarly to those in 1996, we can assume that the food
processing segment is comprised of highly motivated potential buyers of
environmental goods.
With respect to food and beverage's ability to buy environmental
technologies, the segment's relatively strong average monthly revenue growth
(3.3%) since mid-1997 also supports placing food processing quite high on
the priority industry list. Because pre-crisis growth rates for food and
beverages were actually the lowest of all segments (-3.4%), pre-crisis
levels of investment in environmental technology may have received a
significant boost since July 1998.
We were unable to determine the level of regulatory pressure on these
industries, and we recommend that they should have industry sector analyses
performed. The regulatory enforcement data presented in this market analysis
does not track the electronics segment, which may have been excluded because
no enforcement actions were recorded. Metal finishing is reported, but
accounts for only about 1.3% of enforcement actions. This data, though
incomplete, seems to support the view that the segment would not likely be
highly motivated to purchase environmental technologies.
With respect to the segment�s ability to buy environmental technologies,
the electronic manufacturers showed strong average monthly revenue growth of
4.8% prior to August 1997 and have remained relatively strong at 3.7% since
then. We are unable to include an evaluation of metal finishing due to the
lack of economic performance data for that segment.
Assuming that chemicals and petrochemicals include industrial gases,
plastics, and paints, this segment represents approximately 10% of 1996
enforcement actions. Therefore, environmental technology
purchases should be a fairly high priority for business managers in this
segment.
With respect to the segment�s ability to buy environmental technologies,
the petroleum segment has shown an in-crisis average monthly revenue growth
rate of 1.1%, while chemicals have contracted 0.9%. If we combine the likely
buying patterns of these two segments, we do not see a group particularly
well equipped to make investments in environmental technologies. Their
positions were not much better before August 1997.
While it can be assumed that the chemical and petrochemical industries
are violating regulations daily, few citations have been written due to lax
regulatory pressure. Without such pressure, U.S. companies
marketing to this industry will probably have very long sales cycles. Unless
long-term projects meet the revenue generation objectives of a company, it
should focus on another industry until enforcement is more serious in this
one.
We were unable to determine the level of regulatory pressure on these
industries, and we recommend that they should have industry sector analyses
performed. Neither hospitals nor pharmaceuticals are tracked explicitly in
the available regulatory enforcement data or the economic performance data.
To the extent that information regarding these segments (particularly
pharmaceuticals) is captured or reflected in the chemical industry data
discussed above, we might tentatively conclude that sales in these areas are
likely to be met with some difficulty.
PD No. 984
- prohibits any person from disposing of a polluting substance in any
resource
- permits establishment of effluent and emission standards for
industrial facilities and other activities
- permits local government, development authorities, and other
authorities to establish higher standards of permissible effluents or
emissions (subject to federal government approval)
- directs the relevant authority to discontinue activities where
discharged sewage/waste is deemed to be of immediate threat to life or
public health, or exceeds allowable standards
- prohibits various activities without first securing a permit from the
relevant regional office of the DENR
- stipulates that operations of waste treatment equipment/facilities are
to be under the supervision of a pollution control officer.
Water usage and classification standards establish quantitative quality
criteria for both fresh and marine waters for industrial municipal
discharges.
Source: � Baker & McKenzie
RA No. 6969
- governs the import, manufacture, processing, handling, storage,
transportation, sale, distribution, use, and disposal of all unregulated
chemical substances and mixtures in the Philippines
- sets forth restrictions against the storage or importation into the
Philippines of any amount of hazardous or nuclear wastes
- requires that producers of toxic substances or hazardous wastes be
permitted by the DENR.
PD No. 984 contains provisions regulating the storage, collection,
processing, transport and disposal of solid waste, and notifications
requirements concerning accidents.
DENR Administrative Order No. 35 (1990) prescribes effluent standards for
toxic and other deleterious substances discharged into water and prohibits
discharge of effluents containing toxic and deleterious substances in excess
of specified levels.
Source: � Baker & McKenzie
PD No. 1152 provides for the establishment of management policies and
prescribed quality standards for air.
PD No. 984
- establishes maximum permissible emission standards for specific air
pollutants from industry
- specifies notification requirements in the event of breakdown of
pollution control equipment, record retention requirements in relation to
sources of air contaminants, and various other requirements designed to
control air pollution.
PD1181 calls for prevention and control of air pollution from motor
vehicles.
Source: � Baker & McKenzie
PD No. 1511 requires all government and private sector entities to
prepare an environmental impact statement (EIS) for projects significantly
affecting the quality of the environment. Whenever a proposal involves the
use of depleting or nonrenewable resources, a finding must be made that such
use and commitment are warranted.
PD 1586 mandates the submission of an EIS and requirements for obtaining
an Environmental Compliance Certificate (ECC) from the Environmental
Management Bureau.
DENR Administrative Order No. 21 provides the rules and regulations
implementing PD 1586.
Proclamation No. 2145 sets forth requirements for proclaiming certain
areas and types of projects as environmentally critical per PD No. 1586.
Source: � Baker & McKenzie
The Rules and Regulations of the National Pollution Control Commission
(1978), pursuant to PD No. 984
- provide mechanisms for investigation of environmental infractions and
for reparation and fines related to violations.
- In the wastewater area, however, the existing penalty for
noncompliance of approximately $200 per day has not been adjusted since
1976 and is therefore not perceived as an effective deterrent to
industrial polluters.
Source: � Baker & McKenzie |
