Prior to this project, the Project 7 facility was an Imhoff tank serving a sewered area
under the management of Maynilad. The facility had outlived its design (facility was constructed
in 1955), and as consequence, Maynilad had been paying penalties to LLDA for non-compliance
to effluent standards. The project upgraded the facility into a 2640 MLD joint sewage and
septage treatment facility that would serve the same sewered area in Project 7 as well as accept
septage in the non sewered areas in the vicinity. Total project cost was P266 million, with the
grant financing P57 million and the balance provided by Maynilad to be recovered through the
rate rebasing. The project cost included the investment, the operation and maintenance cost
during the commissioning period of three months and during one-year of process proving, net of
tax and contractor’s profit. The technology adopted (Sequencing Batch Reactor or SBR) was
selected based on a Technical Options Study and the selected technology garnered the lowest net
present value. The facility is operating at full capacity.
6. The economic rate of return of this component was estimated to be 15% with benefits
comprising of environmental benefits, health benefits, avoided cost from non-payment of
discharge fees to LLDA, and benefits from water re-use. An additional benefit but which was not
estimated due to incomplete data is the cost savings of diverting vacuum trucks to a closer
destination for treatment rather than to the Dagat-dagatan treatment facility of Maynilad