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LAND ACQUISITION REPORT

TALAYAN STP

November 2011

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1. INTRODUCTION

Maynilad Water Services, Inc. (MWSI) is undertaking a Project financed by the World

Bank. Six sub-projects have been identified by Maynilad to fulfill these objectives. One

of these, is Talayan STP.

A private property is being acquired by Maynilad for the construction of the Talayan

STP. The mode of land acquisition is through an open purchase agreement. The

property is occupied by 3 junkshop owner-operators headed by Mr. Virgilio Maderaje,

his brother Godofredo Maderaje and sister-in-law Erlina Maderaje. The property owner,

Mr. Tan Bun Beng made a deal in 1996 with the 3 junkshop owners to occupy and use

the property for free in exchange that they will protect and keep the property free from

illegal setters (See Annex A. Sworn Statements of Property Owner and the 3 junkshop

owners on free use of property arrangement). Now that property is being acquired by

Maynilad, the junkshop operators are voluntarily moving out of the property.

The land acquisition will not create adverse social impacts, permanent or temporary on

the occupants of the property to be acquired for the following reasons:

The mode of land acquisition is “willing seller-willing buyer” arrangement

The occupants/ 3 junkshop operators voluntarily gave up their work area based on

the original agreement they made with the land owner.

There is no relocation of residences of persons doing business in the property being

acquired.

There is no disturbance and loss of income to their livelihood. The 3 junkshop

owner-operators will transfer their businesses to their residences which cover a

distance of less than 10 to 50 meters away from Mr. Beng’s property.

43 workers are still working with the 3 operators and have continuous access to their

livelihood.

Because of the reasons cited above, OP 4.12 is not triggered hence a Land Acquisition

Report is prepared for the Talayan STP instead of a Resettlement Plan.

This Land Acquisition Report includes the following:

Introduction

Talayan STP

Description of Impacts

Resettlement Policy Framework and Entitlements

Compensation Entitlements

Public Consultation

Time Frame

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Grievance and Redress Mechanism

Implementation and Monitoring

2. TALAYAN STP

The Talayan Sewerage Treatment Plant (STP) is situated in Talayan Street, Barangay

Sto. Domingo, Quezon City. The construction is expected to start by June 2013.

Wastewater coming from the households will be collected and conveyed to the facility

for treatment before discharge to Dario-San Francisco River. This will benefit the San

Juan River Basin and will approximately serve 120,000 people. The STP capacity is

15,500 cubic meters per day.

The project is a design and build project, thus the layout diagram of the structures and

technical description will be available only after the completion of the detailed

engineering design.

In addition, the sewer network and locations of pumping stations are not covered in this

Land Acquisition Report because the detailed design has not been prepared yet, hence

the locations are not yet determined. If after the detailed design has been completed

and locations of sewer network and pump stations will have some impacts thus

triggering OP4.12, a Resettlement Plan shall be prepared based on the process

outlined in the ESSF.

3. DESCRIPTION OF IMPACTS

3.1 Project Area

The land to be acquired where the Talayan STP will be constructed has an area of

1,841 square meters is situated in an urban low-income residential and industrial mix

area. Talayan Street (also known as P. Florentino Street), where the land being

acquired is located, is a narrow street inhabited by mix of low-income and middle-

income households. This street used to be owned by the government through the

National Housing Authority who awarded in 1984 to informal occupants who have

resided in this area for at least 15 years See Figure 1 below for location of property to

be acquired.

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See Figure 1 below for location of property to be acquired.

Fig 1. Location Map of STP Site

The property is at the end of the road near the creek. At the entrance of the road

coming from Araneta Avenue, there are small eateries servicing workers in nearby

factories such as Honda Cars. Also, a small informal market exists on the side of the

road serving the local residents. There are 6 small junkshop businesses present in this

road, of which 3 are located in the property being acquired. The other junkshop sort

their garbage collection at the side of the road. Each junkshop has its own set of

garbage sorters/workers.

STP

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The land being acquired is owned by Mr. Tan Bun Beng. It was originally a residential

lot but later a garment factory was built at the back of the residence. In 1995, however,

the building was burnt and the owner closed the garment factory. The owner assigned

a guard, Roger Maderaje, to look after the burned property because the owner moved

their residence to another place.

In 1996, Virgilio Maderaje through his brother, Roger Maderaje, made an informal

(verbal) agreement with Mr. Tan to use the property for garbage stacking and sorting. In

return, the property should be protected from occupancy by informal settlers (see Annex

A). Virgilio’s residence is across the property of Mr. Tan so it was easy to look after Mr.

Tan’s property for him to do so. Virgilo was joined by his brother Godofredo Maderaje

and sister-in-law Erlinda Maderaje, who occupied and used the property of Mr. Tan for

free in sorting the garbage sold to them by waste pickers. A total of 43 garbage sorters

work for the 3 Maderajes operating the junkshop business.

In 2010, however, MWSI through a broker identified the property of Mr. Tan as one of

the possible sites for the sewerage treatment project in Talayan. Two sites were

identified as possible options for the Talayan area: Site1 site was located in an elite

exclusive residential area called Talayan Village; and Site 2 was Mr. Tan’s property.

Mr. Tan made an offer to sell of his property to MWSI in May 28, 2010 (See Annex B).

Public Consultation meetings were conducted in Site 1 on May 2011 and the community

expressed its view of not wanting to have a sewerage treatment plant in the area. Site

2, Mr. Tan’s property was accepted by the community as the site for the proposed STP.

The zonal value of the property is Php 8,500/sq. meter and the appraised value given

by the Maynilad accredited broker, Cuervo is Php 17,000/sq. meter. The sale price is

Php 16,098/sq. Meter. A 50% downpayment was made last September 19, 2011

pursuant to the signed Contract to Sell dated August 2011 (see Annex C).

3.2 Land Acquisition and Resettlement Implications

The private property owned by Mr. Tan will be acquired by a private company,

Maynilad. Land acquisition is through an open purchase arrangement. (See Annex B.

Property Owner’s Offer to Sell and Annex C. Contract to Sell).

Although the property is being occupied for a junkshop business, The arrangement

between the property owner and the 3 junkshop operators/owners is that they will

voluntarily relocate their business to another area once the owner needs back his

property.

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The property owner committed to provide around 3 months time for the junkshop

operators to move out the garbage materials they have stacked/stored in the property to

another area. All 3 junkshop operators/owners agreed to move out. honoring and

recognizing the agreement they made 11 years ago (see Annex D Agreement1

between Tan and Maderaje) .

They transferred their operation to their respective residential lots nearby the proposed

STP site. See Figure 2 below for relocation sites of the affected junkshop businesses.

The picture below showing Erlinda Maderaje’s residence where her junkshop was

relocated.

Fig 2. Relocation Places of 3 Junkshop Businesses

Junkshop of Erlinda beside her residence Junkshop of Godofredo at his residence

1 This agreement between Tan and Maderaje was submitted as a requirement to a local commercial bank-

MetroBank where Mr. Tan applied for a loan from the bank and used this property as collateral in 2010.

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Junkshop of Virgilio (Left: GF of Son’s House; Right: In front of his house)

Virgilio Maderaje transferred his sorted recyclable materials at the ground floor and roof

of his residence which is just less than 10 meters away from Mr. Tan’s property.

Godofredo Maderaje transferred his garbage materials at the ground floor of his

residence which is approximately less than 50 meters away from Mr. Tan’s property.

Erlinda Maderaje transferred her garbage materials some 30 meters away from Mr.

Tan’s property. Erlinda has a vacant area beside her residential building.

The transfer/relocation of the junkshop business did not disturb the daily

operations/work of the garbage sorters. Work among these workers continues because

the distance from the original place of work and the relocation sites are very near.

The following reasons explain that the land acquisition will not create a big negative

impact on the occupants of the property to be acquired: (i.) the 3 junkshop operators

voluntarily gave up their work area based on the original agreement they made with the

land owner; (ii.) there were no disturbances in the livelihood since the distance of

relocation for the businesses were within a radius of 50 meters away from the property

of Mr. Tan; and (iii.) workers are still working with the 3 operators and have continuous

access to their livelihood (see Annex E Initial Census of Workers and Annex F Census

of Workers After Relocation).

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4. RESETTLEMENT POLICY FRAMEWORK AND ENTITLEMENTS

OP 4.12 will not be triggered because of the willing seller-willing buyer mode of land

acquisition. The ESSF provides the process and procedures where land is obtained

through direct negotiations under open market purchase system on a voluntary basis

with the land owner, as is the current practice by Maynilad.

The ESSF includes an Entitlement Matrix with the following provisions:

For residential land and/or commercial land where the affected area needed by the

project are occupied

Affected squatters and other informal settlers will not be entitled to compensation

for affected land but will be compensated for affected structures and other

investments made on the land and relocation assistance;

Renters of structures including shanty dwelling in urban areas will be given 3

month notice on the schedule of demolition, and if shifting of dwelling/shop is

required

o , they will be given transitional allowance equivalent to 1 month rent of a

similar structure within the area;

o free transportation allowance;

o Rehabilitation assistance such as skills training if means of livelihood is no

longer viable and Displaced Persons will have to engage in a new income

activity.

5. COMPENSATION ENTITLEMENTS

Based on the ESSF Entitlement Matrix, the junkshop owner-operators are entitled to a

3 month notice of moving out from the property of Mr. Tan. The lot owner offered around

3 months to the junkshop owners to vacate and clear the garbage stock in his property.

There is no adverse impact on loss of residences nor did loss of income from livelihood

since the relocation site of the junkshop businesses will be transferred to the individual

residential properties of the 3 Maderajes that are locate less than 10 meters-50 meters

away from Mr. Tan’s property. As for Virgilio Maderaje, he went back to his original

junkshop area before he moved into Mr. Tan’s property in 1996.

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6. PUBLIC CONSULTATION

Public Consultation was conducted in April 2011 at P. Florentino Street (Talayan St.).

Around 34 persons from the community together with some Barangay officials attended

the consultation meeting. This public consultation was carried out before the Contract

to Sell was signed and in place for Maynilad to determine the social issues related to

the purchasing of the property.

7. TIME FRAME

The timeframe given for the junkshop owner-operators to move out from Mr. Tan ’s

property is between October 2011 to December 2011. Demolition of building structures

will start once the area is cleared of the stacked garbage materials.

During this period, Maynilad will conduct regular visits to monitor and inspect progress

of work and see to it that the ESSF is being complied to.

8. GRIEVANCE AND REDRESS MECHANISM

Maynilad has a Public Complaints Section in their Consumer Relations Department to

address all complaints and grievances received from the public. Also, the public can

raise their complaints and grievances to the Barangay Council, which will submit to

Maynilad the complaints raised. Complaints will be addressed within 15 days

maximum.

9. IMPLEMENTATION AND MONITORING

Maynilad’s Environmental Unit will monitor from their side the implementation of the

RP. Land Bank of the Philippines will monitor from time to time the implementation of

the land acquisition.

Specifically, the following will be monitored:

Relocation of junkshop business

Affected workers for lost of livelihood

Complaints from the community on disturbances such as noise, traffic and safety

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ANNEX A

SWORN STATEMENTS

(PROPERTY OWNER AND 3 JUNKSHOP OWNER-OPERATORS)

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ANNEX B

PROPERTY OWNER’S OFFER TO SELL

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ANNEX C

CONTRACT TO SELL

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ANNEX D

WRITTEN AGREEMENT BETWEEN TAN AND MADERAJES

(the Metro Bank requirement for loan application)

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ANNEX E

CENSUS OF 43 JUNKSHOP WORKERS OF THE MADERAJES

(Initial Census August 3, 2011)

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ANNEX F

CENSUS OF 43 JUNKSHOP WORKERS OF THE MADERAJES

(After Relocation, Nov 25, 2011)

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