Monograph Series

CASE STUDIES

Civil Society-Business-Government Collaborationfor Environmental Protection:

The Southeast Asian ExPerience

1st Edit ion2003

Table of C,ontents

Experiencing the bond. . .. .. . . 1

Come together.. . , . 2

Case Summaries . . 4

Pedul i Aqua: Partnership Against Used Bott les. . . . . . . .9By Eka Budianta

f{ature Education Center: A Case Study.. . . . 20By Gunaseelan Thuraisamv

Environmental Technology From Coconut waste. . 30By Enrico O. Garde

Ayala Foundation's Solid Waste Management Program .41By Manolita Gonzales

Recyclable Waste Business For Sustainable Development.. 56By Dararatt Anantanasuwong, Ph,D

Experiencing the bondWhy should civil society, business and government work together for environmental protection?

The answer is simple: we alllive in the same planet, breathe the same air, getsoaked in the same rain we

rrJ*ort tog"ti"|, for environmental protection. We can't afford to beg the question The challenge

demands a response beyond rhetoric

The essential question perhaps is "under what conditions could we work together and how?"

These are not easv questions However, there are answers

The following five cases from lndonesia, Malaysia, Thailand, and the Philippines show that civil society'

Uriin"r. undgou"rnr"nt have different but interrelated motives for cooperatlng - different motivations but

interrelated, ihe stories are testimonies that show how recycling as an environmental activity cuts acrgss

Citferent mottvationsand is an activitythatcan easily generate collaboration among these three stakeholders

Everyone would like to recycle, though the motlves range from reducing the cost of hauling and complying

with environmental laws to projecting a positive company lmage

Among civll society memDers, envlronmental protectlo; could be a core.rno'al.value to unfold or colld

simolv be a strategy to generate income for the community lndeed, the rnotlvations are diverse but

interconnected.

Thus, groups working together often ask themselves: "How do we avoid conflict and encourage synergy?"

aemeriOer; tfre aeeper tlie disagreement, the quicker we sink in an environm-ental mess The business-as-

*ri attitua" of companies must now change, stnce even businesses suffer in a deteriorating natural

environment. Governments can no longer afford to spend billions of dollars for environmental work given

other pressing priorities like health, education and world peace

The first big step we must do is to try to understand each other, because it appears that as we understand

;ore, we;spect each others'motives more, and the potentialfor collaboration .is thus greatly increased'

the lissons irom the cases here cited are a good start toward encouraging the three sectors to work

together.

It is our hope that this contribution coLrld help push allof us to come together and unite to workfor a better

environment.

Sasakawa PeaceFoundation

Foundation for aSustainable Society Inc.

Come tqethertThey came together to make a difference.

Civil society, business and government people from six Asian countries gathered in February 2002to exchange views on how to collaborate more closely for the sake of the environment'

In that meeting, the discussions and presentation of five country case studies have identifledseveral essential points that may well provide the framework for such future collaborations

Following are some of the major observations noted in the meeting:

First. The economic and ecological crises facing the world are making people realize that workingtogether is good for everyone, especially in these critical times.

The experiences of Shell in lvlalaysia and Aqua in lndonesia show that the more directly linked abusiness is to nature and the environment, the stronger is the concern for environmental protection,

Amidst the threatening global crisjs, a business-as-usual attitude cannot thrjve in an environmentof resource exploitation,

f4eanwhile, Wongpanit in Thailand, Ayala in the Philippines and Aqua have discovered that theycould work with local communities for effective waste collection, with local communities cooperating,a significant volume of waste could be collected, thus making recycling businesses economicallyviable. They have shown that community-based environmental enterprises could grow from agarbage crisis.

Second. companies no longer hold shareholder jnterest as their sole consideration Shell and Aquawere both subjected to intense pressure by civil soclety groups to address the ecological problemsgenerated by their business operations. Aqua had to go into PET recycling. It had to provide plastic

crushers to communities who were not even shareholders Shell adopted the SustainableDevelopment f4anagement Framework as company policy to fuel local and global work inenvironmental protection.

These varied efforts have shown that businesses now have to consider a new set of stakeholders,namely the immediate community, civil society and local governments They must now flnd innovativeways of cooperating with these groups, and not only with their traditional shareholders. civil societyviews have influenced business policy, corporate practice and company pockets.

Third. Another basis for cooperation among the three sectors isthe frequent inability ofgovernmentsto respond to greater demands for social services and pressing global crises as well as the unevendistribution of Political Power.

The Ayala Group is performing solid-waste management functions that should have beengovernment's main responsibility. The company has had to act quickly because a "dirty" imagerL-rs away shoppers, rearlors, ard tenanrs of commercial spaces

As more companies like Wongpanit 90 into recycling, the pressure eases on governments/ sparlngthem from having to spend more on waste hauling or in developing new areas for final disposalsuch as landfills. Hopefully, governments could then shift their resources toward improving often..,,-l. ^6^lo+o.l .6^/i.ac c' '.h r. ha:lth anrl c.l r.;ltinn

Fourth. Responsible consumerism is on the rjse and consumers now speak through their wallets'lvlore consumers are willing to pay extra for food that has been organically grown and on cosn'leticsthat have not been tested on animals They are now prepared to pay park entrance inside reserveswhere endangereo species enjoy protecti0n.

The growth of international certification systems and standards, and the willingness of companiesio iu-bpct themselves for accreditation and environrnental clearance are signs that business, civilio.i"ty and gou"tn.ent have been listening to each other' ISO 9002.Certiflcation is now a bannerof good corporate practice together with a rising price of company sharel

The transformation of a social value, viz. environmental conservation, into an econornLc valuefosters cooperation between communities and business l4oney after all is no longer a business'sole measuring rod,

Fifth. Civil society! importance and influence have been growing, This emerging form of socialorganization has tested the capacity of institutions including powerful trade bodies such as thelptc, Iclnn and eu"n the Wofid Trade organization to work together with other stakeholders'

Companies and organizations have taken pains to finance projects that support and relate with theiivit society. settirig up a community Relations Department or an,'NGO desk" is fast becomingstandard practice.

TheVnowseethatWorkingWithcjvilsocietycreatesaVaIuefarbeyondgoodpUbIicre|ations'IYore.orbuni"t no* uppt"cia6 the powerful influence that civil society can wield on the policies anddecisions of business and governments.

The authoritative allocation of scarce natural resources is no longerdominated by powerful individualsanJ oiganizations. Civil society now influences the distribution of resources generated and benefitsderived from the environment

Public relations and philanthropy work have become rnore meanlngful for many companies

Finally, Ihe world is getting smaller' Sharing resources, products and profits, motivations andmindsets are now getting to be the order of the day

Wongpanit's recycling business was done in partnership among temples, communities and franchisenold6is in fhatlind a-nd Laos. Aqua is helping rehabilitate watersheds and is moving to deal with tsown PFT bottles that are littering beaches and sidewalks. Ayala's efforts in waste management;pply to its holdings, tenants and partners ln the Philippines. Juboken, through its bioengineeringeiforts is helping rehabilitate riverbanks and eroded areas in Japan and Europe'

ShelIl '4a|aysia,sDeVe|opment14anagementFramework]sconsistentWithshe||,sgIobaIpo|icy'FRI|v]and 14NS have joined hands to conserve a vast expanse of natural resource for future generations

to inheritl

The demand for environmental protection is both local and global Thus, when civilsociety, buslnessor oovernment calls for all of us to come together and work for environmental protection, advocatetor-a ootlcy, protect a watershed, pick up waste, or earn decent profits, who coLlld refuse?

As the following case studies have shown, no one couldl

Case Summaries

INDONESIAPEDuLI AQUA adalah Program Daur Ulang Limbah kemasan botol Aqua

Program ini djprakarsai dan dicanangkan oleh Alm Tifto Utomo SH pada awal 1993'

ldenya berawal dari masalah botol bekas air minum dalam kemasan yang terbuatdari plastik PET ata! Poly

"in"i*" t"r"ptin"fat". Plastik PET ini sangat bagus untuk mengemas minuman karena kuat' iernih' tidak

o"rour, dun tiit puttungkus makanan, atau food grade'

Tetapi plastik PET yang kuat dan jernih itu sulit didaur-ulang sebagaimana plastik lainnya (PE dan PVc) yang

:#::ili;;l:l: lnyil*ti::Lgg* ll::i,,il ."iiik-ff i!.f 1?"i:l':i,lFl fiil:ft [:imenjaai rayon sebagai bahan polyester'

Jad ibo to lPETbekasdapatd i iad jkanbahanteks t i l , korden,karpe t ,dsb ,mela lu ip roses tersend i r i in i lah""1"" il"ort pi*"i a"ur ulang llmbah Aqua' Untuk itu diperlukan kerjasama dengan para konsumen'

;:fiiri;;;;;;;ffii;i p"niaiur,, oun pensg'na serpihan plastik PEr baik untuk konsumsi daram neserl

maupun eksPor'

Sisum keriasama dari pengumpulan, pencacahan, hingga penya lura n -l:: l l^]nl]: l vu"S dirintis dan

iir.".ounoGn rirto utomo. iapat nqua, tirto utomb, itutah yang memprakarsai,-dan mencanangkannya

;i;# ;"; ;;;;;ii"rit'it"nt ir,l nesara linskunsan hidup saat itu)' dan Ir' Erna witoelar' ketua

iayisan rembaga ronsurnen, pada waktu itu (1 Februari 1993)

Proqram ini memerlukan keterlibatan konsumen Pada awalnya p"ra-konsumen -AQUA dikenakan uang

iiii"l" rl lt"i ii,u.tii np 10,- untuk lotoi L"# trsoo ml), dan Rp s'- untuk botol kecil (600 ml) Blla

ion.um"n-."G.Oaf ,kan botet-notol to.ongnyu, iirto Uto;o mengembalikan uang jaminan itu dua kali

iii"il':"J''0".ii".""s aQUA la^u Rp 10,- va;g kecrl' oan Rp 20'- vang besar'

Pada awalnya, sambutan konsumen kurang maksimaL sehinssa A9Ul,!911s^lekerF sama dengan para

lintuilnr,is*:-r:ru:nru:'nB:'Ail?:'fiH"J.x"f:"iilir'""il'"1:,'"'ilffi:,iil-]:ii'i,1il;]f"i-p""ir.prf Oo"i, t m6nyediakan empat truk pengangkut botol yang berkeliling setiap hari'

Botol-botol kosong itu dikumpulkan, dicacah, dijadikan flake dan disalurkan ke pabrik- pabrik tekstil Dengan

!J;:iffiil;i"+i ;"i-usiir,uri,utran, oijril, dan menshrang dariiaranan. selama lima tahun prosram

o"[ri a"r" -u"ii""q.r"g

(rgg:-rssa) ledih'Jari np l,s mitvar alna oersih terkumpulkan' hasil penjualan

serpihan Plastik.

Uang itu disumbangkan sebagal Trust Fund bagi Dana Mitra Lingkungan' atau DJvlL Di antara programnya

termasuk menyebar-lua.*un p"tu*u'un t-"Sniutah eut'ng t"dit{t )S tesin pencacah dibaqikan kepada

;;#il;i; ;;;G.;;l seputar:akarta, aindung, Yosva' dln semarang' hrngga l99B Selain itu' bersama

6"rli p"iiln ittrrt1"" putroti o",.ir, ootol r"kuilit<awisan citiwung dan Pulau Seribu' Pelestarian terumbu

t"rurio oten vavasan Wallacea juga mendapat dukungan program peduli sebesar Rp 100 juta'

Sekarang pencacahan plastik PET sudan berialan secara nandiri dan swadaya dikalanqan pengelola daur

,i"ng ;i;tiik t"ougui blsnls yang menguntunqkan Berbagai seminar untuk mendorong bisnis daur ulang

PET bahkan berkembang cengan pesat, seirin-g dengan konsumsL dan prodLlksi PET dunia'

pogram PEDULI AQUA kini dikenal sebagaicontoh (best practice) yang berhasil menjadi model kemitraan

aniara Pengusaha dengan LSM, serta berlaniut sebagai inspirator wira-usaha di lingkungan pemulung,pelapak, da; pencinta lingkungan. Kepedulian ini tidak lepas dari peran Presiden Direktur PT Aqua Golden

I\.lississippi, Willy Sidharta.

PakTirto lJtomotelah meninggaldunia pada 1994, namun idenya, prakarsa dan teladannya dalam mengelolalimbah botol bekas, kini diakuidi berbagainegara. Pada 1999, Program PeduliAqua tercatat sebagaisatu di

antara 10 program kemitraan terbaik di kawasan Asia Pasifik studi kasus tentang keberhasilan Peduli Aquajuoa dilakuka; oleh lapan center for lnternational Exchange (JCIE) di Tokyo, lepang. *** (Eka Budianta,bi;ektur Eksekutil Yavasan Sahabat Aqua)

MALAYSIAPergefahaman tiga pihak'Forest Research Institute of Malaysia (FRIM)- Malaysian NatureSociety (MNS) dan SHELL untuk masyarakat mardani'

En Seelan Samy dari ERA Consumers, Malaysia.

Kertaskerja ini telah di kemukakan kepada Foundation for Sustainable Society Incorporated(FssI), dalam satu bengkel Masyarakat Mardini (Civil society) di Philippines pada tahun 2001dan 2002. Berikut adalah ringkasan dari kertas kerja ters€but'

Hasil dari ilharn Dato'Dr Salleh Mohd Nor selaku Ketua Pengarah FRII'4 dan juga Presiden f4NS, sebuahDusat Dendidikan alam sekitar (Nature Educauon Centre atau NEC) telah ditubuhkan pada tahun 1992 diperkarangan FRIM untuk mempromosi kesedaran terhadap alam sekitar.

NEC melambangkan satu perjanjian yang bersejarah kerana, ia merupakan satu-satunya inisiatif sectorkorporat, agensi kerajaan dan badan bukan kerajaan (NGO) yang rnembawa faedah kepada masyarakatpenubuhan NEc.juga penting kerana pen!buhan satu pusat pendidikan berteraskan konsep pendldikan dlluar bilik darjah merupakan satu perkembangan baru pada masa itu

semenjak pelancaran pada bulan Januari 1993, NEC telah berjaya menjalankan berbagai aktiviti termasuk,perkemahan-perkemahan untuk pelajar, ku rsus orientasi a lam sekitar untuk guru-guru dan pelalar, program-program korporat, seminar untuk para wartawan, bengkel-bengkel dan lain-lain lagi Lebih dari 10,000pel;wat tempatan dan luar negeri telah menyertai program di NEc diantara tahun 1993 - 2001'

selari dengan objektif untuk mewujudkan masyarakai mardani, satu "case study" telah didokumentasl olehEn Seelan Samy, pegawai penyelidik dari ERA Consumers l'4alaysia (sebuah NGO yang memperjLrangkanhak penggLlna) mengenai kejayaan dan pembelajaran darikerjasama tersebut. Kertas kerja tersebut kemudiantelan diremutan kepada FssI dalam satu slri bengkel dan seminar di N4anila. Phjl ippines pada tahun 2001.FSSI dan Sasakawa Peace Foundation diJepun yang berminat untuk mengetahuidengan lebih mendalamlagi, faktor-faKor yang mempengaruhi keberkesanan dalam institusi masyarakat mardani dan seterusnyaminyeoarkan maklumit tersebut di rantau Asia Tenggara. selain dari Malaysia, Thailand, Indonesia, danPhilippines juga telah menyumbang kepada kajian tersebut.

Berikutan bengkeldan seminaryang telah dijalankan pada tahun 2001, kerjasama yang telah terjalin diantaranegara-regarJ tersebut telah dipanjangkan kepada lawatan sambil belaiar ke Thailand untuk mendalamikei yang ikemukakan oleh Thailand. Maklumat lanjut rnengenai peserta-peserta dan kertaskerja merekaboleh dlrujuk dalam lampiran laporan ini

Salah satu faedah yang utama dari kerjasama tersebut adalah roeningkatkan profil secara tangsung untukketiga-tiga pihak iaitu FRIN4-rvrNS dan sHELL dararn pandangan masya;akat. seiain dariiru, r.ujian FSSIjugaterah mencungkir kembari faktor-faktor yang memotivasi kesinambungan daram kerjasama tersebut darammencapai aspirasi masyarakat rnardani.

Perjanjian persefahaman untuk pusat pendidikan NEC hari ini telah dipanjangkan ke fasa kedua (2002_2007) dan rawatan serta kerjasama diantaran negara-negara yang terah meribatkan diri dalam inisiatif inisedang diteruskan,

PHILIPPINNS

Juboken EnterDrises:A Case Study on Environmental Technology from Coconut WasteAng pag-aaral ay tumalakay sa karanasan ng Juboken Enterprises, isang pribadong entrepreneur sa aikor atng Foundation for a sustainabre society Incorporated (FssI) isang no-n-governrient organrzauon dito saPilipinas.

Bilang panimula tinalakay dito ang patuloy na pagkakalbo ng kagubatan na siyang nagtgrng sanhi ng soilerosion. Afg problemang ito ay magiging isang malaking krisis nJpipinsala sa mga pananjm at kabuhayann9 maraming tao.

Ang isang solusyon sa problema ay ang teknolohiya ng ,,bio_eng ineering,,, Ang teknolohiyang ito, na siyangpinasimulan ng Juboken Enterprises,sa piiipinas ay gumagamit ng mga maturfal". na mura sa p,nagbulatanng niyog (coconut husk).

Pinakamalawak ang nasasakupan ng tanirnan ng niyog sa buofg pil ipinas, Sa kasaruKuyan, copra angpangufal^,ing produkto.a nakukuha sa niyog, Ang bunot o pinagbalatan ay naitatapon tamang (60%) onagagamlt na panggatong (40olo). Ngayon, ang mga bunot ay nagagamit na bilang materyales na nagbibijaysolusyon sa problema ng soi erosion at patuloy na bumabang kakayahan ng-mga ranrman na magtngproduktibo.

Tiyaga, nasusing pag-aaral at determinasyo_n na tumulong sa problema ng kahjrapan sir KanayLtnan afgsiyang naging pangunahing puhlnan ni Dr Arboleda upang itayo ang Ju6oken Enterp.ses. tto rin angsiyang naging batayan ng FSSI na makipagtulungan sa luboken Enterp,'rises.

Ang ilang haiimbawa ng produkto muia sa dating basurang bunot ng niyog ay geo_textttes at tascines parasa sort erosion. Ginagamit dif afg mga ito sa pagpapatatag ng mga gilid ng ilog at katsada. t4ayroon dint|narawag na cocopeat na muJa sa bunot. Ang cocopeat aygjnagamit bilang materyalsa paggawa ng patabao ferlilizer sa lupa.

Bukodsa teknolohiya ng bio-engineering, maraming mahahalaw sa karanasan n9 Juboken Enteprises. Una,naipakita na ang mga naitatapon na bagay tulad J.rg blnot, kung pagtutuunan ng masusing pag,aaral atalapatan ng kaukulan teknolohiyang praktikal ay maaring pakinabingin at makap;gbibigay ng trabaho tatona.sa mga kanayunan. pangalawa, binibigyan d;in na isang teknolohiya ng pioO-utsiyon upang magjngmabilis ang pagtanggap ay dapat nababatay sa karanasan ng mga gaganit ;9 teknolohtya.

Ipinakita din sa pag-aaralkung ano ang mga pangunahing katangian ng isang "socia l.entrepreneur" at kung-ti"tii.if'.bs"

"ti, katangia-n ito.u pagbuo ng itang matatag na samahan o partnership ng pribadong

sector, ng mga NGO at mga komunidad sa kanayunan

PHILIPPINDS'

Ayala FoundationSolid waste Management Program

Anq Avala Foundation Incorporated (AFl) ay isang non-government organization na itinatag ng Ayala Group

oi6o'irpanies (AGc) Ang Ayala Group ofcompanies ay binubuo ng 21 malalaKing kumpanya sa Pil ioilas

e"q AdC brdd sa kila6 sa larangan ng komersiyo at negosyo, at nagunguna din sa pagtataguyod ng

cor-porite sociat responslbility (csR) Ayon sa panuntunan ng csR may katungkulan angAGctumulong para

mapawiang kahirapan sa pamamagitan ng pagtugon sa mga problemang pang-ekonomiya at lipunan pati

na suliraning dulot ng prcblema sa kallkasan,

Sa oaa-aaral na ito, iplnakita ng AGC sa parnamagitan ng AFI kung paano sila tumutulong lumutas sa

lumala-lanq problema ng pagdaml ng basura bunga ng komersiyalisasyon at urbanisasyon'

Nuong 1993, slnimulan ng AFI ang isang Solid Waste Management Project bilang bahagi nq isang malaking

oroqrima na naqlalayong tumulong sa mga maralitang taga-lungsod at itulak ang pagkakaroon ng isang

mitinis na tapatiqiran. Nlgbuklod ing layunin ng AGc na tumulong sa mga tagalungsod, magkaroon ng

miiinis na t<aiatigiran para sa kanilang kliyente o tenants at itaguyod ng husto ang slnasaad na prinsipyo ng

Sa pamamagitan ng programa, ragkaroon ng pagsasanay upang hikayatin arg nga komunidad na magka'oon

"" i"jirir-"-i lupitjqir5n. Kasabiy nito, t'nuruan ang mga bahay'bahay kLng paano naaring kJn ta sa

Oisr.ilJpumjniaSilan ng maayo; na paghihiwalay nb mga basura, Hindi masyadong nakarnit ang avLn r

n6-r"ing "ilg"ti"g ito'. Hindr kasl ganuon kadami ang basurang may halaga o naipagbibili mula sabahay-bahay nq mga maralitang taga-lungsod

Nuong 1996, rnuling naglunsad ang AFI ng isang pinagbuting programa ng solid waste management Angtinukov naman nq Daosasanay ay ang mga gusa'i ai establ sementong nasa sentro ng komersivo at negosyoil p"tj."qiuti itg progra'i'a,' "adawasan ang basura sa mga gusaling pinangangasiwaan ng Avala atdumam'iang basurang maaring ipagbili o pagkakitaan

I4akaraan muliang apat na taon, minabuti ng AFI na makipagtulungan sa iba pang sektor kabilafg na angf"r"Oitil" i"i JSr-rt inabte Soci6$/ inc. (FSSi) at lnstitute for the Developmenl of Ecological and Educationa lI-lt"rnitiu"i ilorasl. eng dalawani Noo na nboangit ay may mahabang karanasan na din sa pangangasiwang basura lalo na yaong mga nabubulok na basura

P,nao-ibavo anq paqsasanay sa paqhihiwalay (segregation) ng basJra 19 ayo'r sa oagong batas <a

oi16.in'uiu nq o*;ru o sa iu 9tl0J- eco,ogicai so'id waste I4anagemenl Act. 14uli, ang darri n9 basufa5i niou*u.un iin.glng maavos ang kolers:'ion ng rrga bas'irang pinakikinabangan (o naipagbrb'li)'

Ang mga karanasan at aral na napulot ng AFI mula nuong 1993 hanggang 2001 ay siyang inilahad dito sapag-aaral.

THAILAND

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INDONESIA

Peduli Aqua:Partnership Against Used Bottles

Bv Eka Budiantax

N4ore than 60 experts from ail over the globe gathered in Jakarta from Sept 11-14, 2001 to Find ways toovercome problems posed by plastic waste. The United Nations International Development organlzation(UNIDO) and the government of lndonesia played host to the International lYeeting and Exhibitlon onRecycling and Environmentally Degradable Plastic from Renewable Resources. They were joined byrepresentatives from governments, business, nongovernment organizations (NGos) and the academe.

The Indonesian lvlinistry of Research and Technology shared their experience on the development of thepolymer industry while the Indonesian industry represented by PT Aqua Golden Mississippi, was very keenon plastic reclcling, Companies from China, Korea and some research institutions from Australia, Europeand the US u/ere enthusiasUc in introducing options by using environmentally degradable piastic, especiallythatdeveloped from renewable resouTcessuch ascorn andtapioca. Delegatesfrom Laos, Vietnam, Bangladeshand Bosnia Herzegovina told the audience of the alarming increase in the amolnt of plastic waste theirrespective countries are consuming.

PLASTIC CONSUMPTION AND THE BOTTLED WATER INDUSTRY

Indonesia is a country of more than 220 million people, with an average plastic consumption of sevenkilograms per capita in the year 2000. The country consumed more than 1.54 billion kilograms of plasticannually. Ofthe total consumed, 15 percent came in the form of polyethyiene terephthalate (PET), a type ofp astic commonly lsed as containers for bottled water, softdrinks, frying oil and cosmetics.

Itwas calculated that more than 40,000 tons of used bottles littered Indonesia in the early 1990s ThebLlkwerc mineral-water bottles marked Aqua Golden Mississippi.

The Indonesian bottled-water industry began in 1973 when a 43-year-old lawyer for the state oil companyPerlamina shifted jobs and established tre PT Aqua Go den N4ississippi. The idea had come to llrto Utomo when aforeigf guest suffered an upset stomach as a result of drinking tap water at the five-star hote she was staying. Theguest did not realize that bp water in Jakarta had to be bo ed for drinking.

The incident challenged 14r Ljtomo to come !p with a means to provide clean drinking water to every top-rated hotel in Jakarta. On October 19, 1973, Utomo patented his "invention" - drinking water in a glassbottle - which became popularly known as'Aqua."

According to f4r. Willy Sidharta, 14r. Utornob successor in the PT AqLla Golden 14ississippi, the company gotits name from [4ississippi, which means "father of water." The word also coincides with the founder's nameTirto, which means in Javanese "water" and Lrtomo, which means "noble."

Withln a yeat the 950-m g lass- bottled water was introduced not onlyto hotels, as targeted, but to the openTarke_ as Wel'. Tne glass containe-s canp in varyilg s1apes a'rd sires.

The use of PVC Dlastic for bottled water started in 1981. The bottles could be recycled and tLlrned lntosecondary products sLrch as plastic pipes, jars, trash boxes and clothes hangers, so theywere notconsidereda waste problem then. The recognized downside in the use of PVC was that it ernitted poisonous smokedurinq rnanufacture, and had a smell that tainted the botUed water The bottle was also quite hea!ry'

The use of polyethylene terephthalate (PET) plastic as bottled water container was introduced in 1987. PETplastic is more expensive than PVC but is more durable and transparent. PET plastic, howevet is very hardto dissolve and is thus a soil pollutant. The treatment for PET waste was little known during that time. Therccycling process was complicated and required a more complex technological procedure.

Although Indonesia had seen plastic recycling ventures since the late 1970s, PET recycling came into thepicture only after Aqla led the campaign in 1993, less than a year after it became a public company.

The introduction of PET plastic bottles dramatically boosted the bottled water industry in Indonesia. Wtthintwo decades after its introdudion, over 50 brands of bottled drinking water have emerged ln Indonesia.

PT Aqua Golden lvlississippi, better known as AGlv1, continued to lead the market with a production of overone million llters ofdrinking water a day, AGpl products were sold not only in the country but were exportedto IndonesiaS neighbors such as Singapore, Brunei Darussalam, Malaysia, Taiwan and even the [4aldives.Three years later, Aqua drinking water was being sold in Australia, New Zealand, Hong Kong, the Philippinesand Vietnam.

With the company's success, lts plastic bottles scattered everywhere were becoming visibly a waste problem.Empty PET bottles littered the stfeets of Jakarta and other big cities in Indonesia, as well as picnic areasnear mountainS and beaches,

Erna Witoelar, an environmentalist and consumer rights advocate, noted how the drinking water packagingwas growing lnto a major environmental problem. Plastic waste made soil less healthy. Some types ofplastic, it was calc!lated, remained un-degraded for as long as 100 years after their disposal.

[4n Tirto Utomo realized that PET plastic waste created problems because of its volume and durabiiity andbecause no one wanted to coLlect the bottles for recycling or reuse, In 1992, dlring an open debate at apublic seminar on the envlronment that was he d to find a solution to urban garbage, he took note carefu 1yof the crlticlsms from Erna Witoelar and other environrnentalists such as Ag us Purnomo. He promised to flnda solution to the Droblem within one veai

Utomo was also told that using deep wells to source his water was not environmentaly sustainable. He thusexplored other sources, and found that he could use the overfiow frorn natural springs. Utomo then boughtands with sprjngs of potable water, buying the adjoining lands as well, to protedthe water catchment area.

By 1986, AGIVI had stopped using water ffom deep wells. It saved the overflow from various springs, storedthem in water tanks and transported them to its processing factories situated near big cities slch aslakarta,Surabaya and l4edan.

This ed a local NGO to recognize I\4r. Tlrto Utomo as an envlronmentally wise businessman, and awardedhim the Sahwa i Award in 1991. Tirto Utomo, who was born in Central Java on l.4arch B, 1930, kept hispromise. Less than a year after he rnade the pledge, he invited Erna Witoelar and the state minjster forenvironment, Emil Salim, to his Ciracas factory in the southern outskirts ofJakarta, to witness the launchingof his new project, the PeduliAqua-D[41program,

t'4inister Salirn and his wife, along with Erna Witoelar, and the chairperson of the Board of Directors ofFrjends of the Environment Fund, more commonly known as DI4L, witnessed the crushing of used PETbottles intoflakes. Tirto Utomo invited everyone who was interested to see his factory the recycling program,and the water springs in the mountains, even providing a company bus for transport.

On the sarne day, I\4r Utorno started to offer a double refund on the deposit for his company's bottle, asincentive for consLrmers to return their used Aqua bottles. A used 500-ml Aqua bottle would get a refund ofRp5 labolt US$o.0021 and the 1500-ml bottle, Rp10 labout US$0.0041. The amoLrnt generated was to begiven to Dl4L.

The response to this offer was not notable, howeve. Not many people came to return thek used bottles for

In 1995, researchers returning from Jakarta Bay reported that many empty Aqua bottles were scattercd inthe sea, posing a threat to the surrounding mangrove ecosystems. Shortly before this report was madeduring the launch of Peduii Aqua-DIYL program, Tirto Utomo, then 64 years old, had just passed away aftera heart att"ck. But his wife, Lisa utomo, did what her husband would have done, Together with her staff andsome Dl4L officials, Lisa Utomo sailed to Jakarta Bay, visited several islands and recruited scavengers tocollect the used boftles.

Scavengers were also the main weapons used in protecting the soil from plastic pollution Consumers maynot have shown interest in the offered refund for returned bottles, but scavengers did. Scavengers and thelrcoordinators made the collection of empty PET containers a success. AGM management claimed in 1993that almost 30 percent of its boftles were returned and recycled,

Tirto Utomo was not there to see it but he dld manageto fulfill his promise to contribute the profits from thecrushed PEI bottles and the remalning amount of the bottle refunds to DI\41,

It is very clear that AGtl volunteered several environmental and social projects since it started opections,Some ofthe projects Include tree planting, clean-river movements and watershed protection. It worked withgovernments, univeFlties, the medla and nongovernment organizations (NGOS), Among its other partnersin these projects are The Coalition for Healthy Indonesia, the l4icro Finance Movement and groups workingon mountain protedion, Aqua is particularly concerned about mountains because it uses mountain springwater as a resource.

In 1998, the holding company of Aqua Group consisting of at least 14 factories began a strategic alliancewlth Danone Group, d French multinationai company, which acquired 40-percent share In the company,Three years later, Danone became the world! largest bottled-water manufacturer when itacquired up to 74percent of Aqua. In 2000, it soid more than 1,8 billjon llters of bottled water. By the end of 2001, AGI4announced plahg to vqluntarlly withdraw its involvement from the stock market, It would have become thefirst publlc comp?ny to quit the.Inddnestan stock market had shareholders not rejected the proposal, Aspecial shareholdert assembly rejeded the idea, shelvinq lt for later discussion.

THE I{@ AII D TT{VIRON MEIIT{L PROTECTIOI{

The two maln 'institutions that came together in the interest of environmental protection were PT Aqualvlississippi and its partner Dana Mitra Lingkungan (DNlL)/ also known as Friends of the Environment Fund,Their adivlties enjoyed support'frdm the Indonesian government, th€ press and the academe, who wereinvolved in various aspects ofthese projects. other Nms and businesses, especially those involved in theproject as crusher operators, were considered stakeholders.

DML was founded in 1983 by environmentally conscious businessmen in collaboration with govemmentofficials, memb€rs of the academe, the press and civil society activisLs, Its main program is aimed atenhancinq environmental awareness and activities among business and industry groups. Bankers,manufacturers and small and large-scale enterp.rises 3re invited to join its programs for cleaner industry.DIYL started with a gr_oup of volunteers, By 1994, it had installed an executive director and employed anumbel oftrofessiondls. Today, it is'suppoted by more than 200 members and it conducts various programsfor environmental partnership. Its name in the vernacular is Dana Mitra Lingkungan (hence Dl4L), whichtranslates to lthe fund of environmental partnership,"

The idea was to generate income by tapping corporations that support environ menta I projects. For the first10 years, the projects de!,lt with green issues, such as saving the Javan rhino and Balinese starllng. It alsosupported the First Earth Run and Operation Raleigh, These events succeeded in raising such environmentalconcerns-to the international level.

During the Earth Run, a flaming torch was made to circle a globe as symbol of the peoplet growingawareness. The activity drew the attention even of dignitaries. Operation Raleigh was a program to attract

Both events enticed the business community to contribute funds and even Lrsed the activities as theirmarketing too .

Dl4L received support from a number of prestigious businessmen, government officiars, and academics.D[4Lt First chairperson was pror soemitro Djojohadikuslmo, an eaonomist known in Indonesia for hisexpertise in economic analysis as well as his integrity and humility. He was joined by the best businesspractiUoners in Jakarta, such as famous banker Omar Abdalla, ..billion_managei,, Tanri Abeng, and the mostsuccessful advertisemeft expet in the 1980s, Ken sudarto. prominent newlpaper tycoon, Jacob oerama,and world'renowned environmental leader, prol Emil salim, ikewise became involved, DplL was establishedby clearly the best 22 people in Indonesian civi society,

Their names brought prestige and respect to DtyL, whose dinners and luncheons were big events, attendedby high{anking ministers or top businessmen. The Board of rrustees consisted of up to 1B mernbers, halfof whom were founders of the fund. h the span of 10 years, DlvlL managed to contribute more than a billionruprahs to support various projects proposed by NGOS. The projects ranged from deve opment of pub icsan tation to a waste-paper recyc ing venture.

The launch of D[41's PET recycring project on Feb, 1 1993, signa ed the shift of its focus ro brown ]ssues,The p_artnership with AGr4 was inaugurated n the company! citeufeup prant, one of Aqua! factories inwest Java It-got extensive press coverage and was considered one of the best examples of corporate-NGopartnerships for environmenta protection.

since then, there have been more examples ofcorporate-Nco partnerships for the efvironment in Indonesia.PTcoca-cola Amatillndonesia p!rsued the idea otdistribuung crlshers by giving soft revolving loans. Afewyears later/ a battery factory worked with DI4L for a recycling campalgn whole proceeds iould financeresearch on the uses of the factory's used products.

Partnersh ps are being built in order to get public support to protect nature. I'.r East Java, a glass factorystarted teaching community members how to, make use of broken and unused glass. Severai t,l6bs designedand mplemented a jolnt partnership with a famous glass factory l.4aspion.

In 1999, the holding corn pa ny of Aqua corporation installed a new post ca lled the director of socia affa irs,to expand its partnership program which started with its involvement with Dl4L. The company decided todevelop nore collaboration with NGos to conduct nature conservation projects, incruding mangrove plan'ngand protection of mo!ntain ranges.

The Dl4L partnership on used pET botfles is stir notabrythe best examp e ofcorporate-NGo partnership. onlop ofits success in preventing soir polrution by contro ring p astic waste, the program gave a netcontributionamounting to more than Rp3.55 bilion [aboui usg1.42 miflion]. The project benefltid other conservationprograms At least Rp500 mi lion labout tjsg200,000l was donated to the wallacea Foundation in April 1997for a marine conservation project.

ENVIRONMENTAL SITUATION IN PROJECT SITE

Like other tropical countries, Indonesia faces the probrem of waste cofiring frorn a modern rifesry/e, such asthe use of plastic containers. Tons of garbage are being dumped outside big cities or simply thrown intonearby rivers ln the past, biological, agricultural and natural waste did not-pose much problem becausethey were mostly biodegradable.

But garbage that cortains rnetals, plastics, and syntheuc materials need a different treatment. Indofesiangarbage pickers have learned how to recycle glass and iron, and since the eariy 19BOs, they have atso beenable to convert plastic waste into plastic robes, water jars and clothes hangers. Howevei pET plastic and thetechfology for its recycling is more cornplicareo.

I

After PET Dlastic was introduced as water container in 1987 and Indonesia's water business boomed, morethan 150 new manufacturers appeared nationwlde and by the early 1990s, used PET bottles ittered thecountry.

The Indonesian Consumer Organization led by Erna Witoelar, who was also a founder of Dl4L, demandedthat Aqua take responsibility for its waste. As mentioned earlier, Aqua founder Tirto Utomo, when he stillived, had invited a civilsociety organization to design a program fora return system for Aqua's used bottles,recycling, and generation of funds,

The partnership program that began on February 1, 1993, offcialy cLosed on JLrne 30, 1998, It began wlthteaching consumers and scavengers, and ended with a donatlon for environmental programs taken from thecollected funds. The company was also able to distribute at least 22 plastic crushers to NGOs.

The partnership was later replicated by Coca-Cola for its own PET recyclng program.

As a rcsult of the concerted efforts, used bott es disappeared from lakarta's streets, even as complaints andinquiries were stil volced and clean-!p programs continued to be needed.

On October 23, 1998, the president of Coca-Cola Indonesia and the president of the argest drinking watercompany in the colrntry PT Aqua Golden lvlississippi, were among a crowd of about 60 people gathered inthe middle of a ricefield in West Java. Among the cfowd were scavengers, NGO activlsts and reporters, cometo attend the presentation of a PET crusher machine to a small village near Bekasi, in the eastern peripheryof Java. A small building had been bu lt over a dry piece of land amldst the swampy fields.

The coca-cola boss, a young Euro-American/ spoke fuently in the loca language and talked about how helearned to recyc e PET bottles from Program Peduli Aqua-D[41. He sa]d his company was inspired andencouraged by Aqua. In order to rid streets, hotels and plcn c resorts ofthis refuse, certain activities such asused bott le colection, transpoft ing, cleaning and resell ing should be done, he said.

The Coca-Cola officiai said the company was offerlng to give anyone a PET plastic crusher worth Rp17million labout uS$6,8001 as a non-interest loan with a six-month grace period. The monthly amortization ofRp350,000 labout US$1401 for four years wou d beeasytohandle, hesaid, i f the operators crushed evenonly 200 kg of bottles a day. The rnachine was capable of processing up to 500 kg per day, he said.

With a PET crusher, discarded bottles could be made into flakes or plastic flbet which ln t!rn co!ld be soldto textile factories, or exported to Taiwan and Japan. Cleaner flakes get better prices.

Aqua President Directoi Mr. Willy Sidharta, who heard the Coca-Cola official's commendations, said he was"happythat Aqua was no longer alone in cleaning up the PET plastic mess," PET plastic bottles are also usedfor soft drinks and cooking oil. Wlth more Lrses being found for PET plastic, so should the recycllng activltiesbe strengthened, he said. Scavengers wo!ld have more materia s to recycle!

In 1993, only Aqua bottles were accepted for recyc ing. Crushers were very few, apart from the one run bythe company in a site 50 kms south of lakata. By early 1998, scavengers and collectors could send PETbotues to be processed jn nearby crushing plants. Some even had their own crushers by then. Aqua haddistributed nine more crushers bythistime, and for free, unlike the Coca-Cola program. Aqua crushers weredistributed as grants to NGOs selected or organized by Dlvll.

Today PET recycling has become a viable commercial enterprise. Recycling businesses are operated as bigfactories or as home industries. Although the use of PET bottles continues to grow, collection of the usedbottles from durnpsites is becoming increasingly difficult. [4eanwhile, many of the crushing units earlierdistributed arc no longer functioning.

THE MOTIVATION TO COLLABORATE

The Peduli Aqua-D[41 program was spurred by nothing more than the "company's responsibility to clean upits own waste." Environmental campaigns were still not a priority concern in the rest of Indonesia. None ofthe political parties struggled with environmental issues during general eledions in Soehafto3"New Order"

A bank that distributed seedlings to its customers and called itself a "green financial institution" had closed.I\4edia coverage of environmental events mostly dealt with disasters such as toxic pollution, forest fire andindigenous disputes like the case of Indorayon puLp and paper industry in North Sumatra, and the Freeportcopper mining in Irian Jaya.

The rate of environmental degradation was alarming. Any talk about the environment could be misused ascriticism of polluters, including Aqua. AGl4's flve-year campaign toward a refund and recycling program ofltsPET bottles was thus qlite daring, It ceased this program on y after PET recycling had become a regularbusinessfor plastic manufacturers, Besides, refundscould no longer be implemented dueto pricing problems,which were among the effects of the Asian economic slowdown.

Neither letter of agreement nor memoTandum of partnership had to be signed between Dl4L as the NGOand AGf4 as the corporation in irnplementing thejolnt program. Despite this, millions of PET bottles, severaltrucks and thousands of packaqes were marked with stickers proclaiming the cooperative effort betweenthe two parties. The recycling symbol and the names of the two institltions became popular with the widedistribution of Aqua water. The total net sales ofAqua drinking water soared from Rp48,693 milion [aboutUS$19,5 mill ionl in 1992 to Rp220,834 mill lon IUS$88.3 mi l ionl in 1997. Aclvl was always the market leaderin bottled drinking water, although more thFn 70 other brands were in the market, of which rnany failed tosLrv;ve the fnancial storFrs,

Athough Aqua group $ias led to condud a program to clean its packaging waste, it cou d not do it alone dueto the magnitude of its problem. Aqua needed the help of its consumers, garbage pickers and NGOs, as defrom the government. A special taxation law was needed to obtain tax exemptions for the money donatedto the program. Since no rule or legal incentive for contrlbLrtions of that sort applied/ a highly fecogn zedNGO slch as Dlvll gave it a sense of egitimacy,

The State N,linister for Environment, as wellas high{anking officials from the ministries oftrade and lndustrythe United Nations hternational Deve oprnent Organization (UNIDO) and offlcials from the lnance ministrywere invited to attend the handover ceremonies for the contributions. For three consecutive years, thehandover ceremonies of donatlons collected from PET recycling was one ofthe-better-covered envlronmentaevents,

On the other hand, the NGO needed support from indLrstry to implement its program in enhancingenvironmental activities among business communities. D14L also enjoyed the publicty generated by lts PETrecycling project. Other NGOS noted that apart from recycling programs, there were other projects wheregroups collaborated to address the PET pollution problem by using PET bottles for plantseedlings, fishermen'sbuoys, UV disinfectants and various kinds of handicrafts, Another program used Aqua cups forthe productionof household utensi s. The motivation ls to prolong the use of the plastic.

DI\41was the only environrnental funding agency in Indonesia from 1983 until the establishrnent ln 1994 ofthe Biodiversity Foundation, a foundation sLrpported by the Japanese and American governments. Thefoundation was formed durlng ? convention for the protectlon of biodiverslty. Equipped with an initialtrustflrnd of US$20 million, the few foundation dwarfed D[4L in financia] power. At the sarfe time, moreenvironmental agencies were created during the five-year operation of the Peduli Aqua-Dt\41 prograrn. As aresult, proposals for flnanciaL assistance were also directly submitted to the AGI'4. One of AGM'S largestdonations (Rp100 million or about iJS$40,000) that was taken from the Peduli fund was rnade to a marinebjodiversity project run by the Wallacea Foundation, then led by Ibnu Sutowo, a close friend ofthe late TirtoUtomo i6 Pertamina, the state oil company where he had worked.

with an average bL]dget oflessthan Rp500 miLlion or about us$200,000, DlulL became less and less attractivefor the image buiLding ofthe AGI,4 conglomerate. A high-ranklng Aqua officlal was quoted to have noted thatthe country's once-richest NGO had become the poorest among donors operating in Indonesia

Besides the Biodiversity FoundaUon, which began disbursement of envronmental grants jn 1996, otherforeign environmental agencies flooded Indonesla. Among them were the Australian Aid, swiss contact,Keid;nren from lapan, USAID and more than 30 other donors, including some from Canada and Denmarktn the mid-1990s, international envircnmental bodies such as wwF, wetlands Internatlonal and NatLlre

Conservation, arfong others, also introduced their respective country programs in lndonesia

DESCRIPTION OF THE ENVIRONMENTAL STRATEGY

The company gave its commitmentto adoptthe pro per tech nology for recycllng and involved its n]anagementln different s6ges of the program. The co aboratlon invited partlcipation from different departments,marke|n9/ fnancial and production. A program director at Pedu i Aqua was instal led to coodinate the work

with n th; cornpany and communicate with DML Likewise, the execLltive director of DIVL was frequentlyinvited to monitorthe process and discuss arrangements. For example, the two directors worked togethertodistriblte crusher mach nes, to hold pub ic outreach programs, to deslgn and implement programs to ut lizecontrlbutions.

The NGO was expected to oversee implementation and report these to a larger audlence. DML made pllblic

this partnership and donations throug h press releases and covefage in its environmenta quarterly Pancaroba.

Its executive director traveled, vls ted and screened potentlal crusher operators. The rnost imp0rtant task,however, was finding capable crushing machine manufacturers,

Local machine bullders were contracted to copy and inpfove on the design of the crLlshing machine, Two

sampJes were init lal ly tmported from Taiwan. uslng them as models, local shops assembled at east 20 morecrusi.rers to be distributed to satelLtte sites, UnfortLrnatel, almost al these machines stopped working within

three years. Two examples were examined for thjs case report. The first ls a crusher run by the lndonesian

Envlronmental Education Netlvork, arl NGO hosted by l'4itra Kebun Raya (l\4KRl) The other s a machine rln

by an entrepreneut 14r. Taufk Soeriadjaja

The crusher o0erated by 14KRI was stationed at Bogor Botanical Garden lt was considered a ow-capacify'machlne, crushing 200 kg of used PET bottles daiy Stlll, it was suffic ent to handle the used Aqla bottles

that littered the bbtan cal garden. AqLla and D[41 provided the crusher and the diese engine and provided

an jnitial capital to pay workefs and to buy used bottles frorn scavengers

Sjmllar arrangements were made wjth other NGOS. The initial wofklng capital normaly ranged from Rp5mll l ion to RplO miLion, roughly uS$1,000. On the average, crushing activit ies ceased nlesstnanayeatApparently, collecting 200 kg of used botues a day was not so easy. The 14KRl could not get enough nLlmber

oi botges irom the botanicalgarden alone. It had to work with other state parks, markets and even scavengersfrom faraway beaches. The additional cost in transpotaUon could not be borne by an NGO

In the early stage, Aqlta used at least four trucks to transport lsed bottles from lts colLection points to its

crushing mach]nes' With the failure ofthe buy-back program, AqL]a resorted to charg]ng consumers depos ts

on the -botUes,

to be refLlnded double when the bottle was returned. The deposlt charged (or the refund

offered?) was Rp5 for a 600-ml bottle and Rp10 for a 1,500-ml bottle Still, not enough bolUes wefe beingreturned,

The collect|on strategy shifted totargeting scavengers. Thecompany maximized bottle collection by mobilizing

special kucks to transport waste bottles to crushing sites, a strategy adopted by professional recycLers like

I\ir. Tauik Suriadjaja as well. On one occaston, the material to be crushed was collected from a slte more

than 700 kms away,

[l'ij:i"I:]""i:iiiffiix.f"x#,fj::i,iu:|,::'.]fi:,Hj:t'":T?",]:Eliiff,,ry;r:i?fl:i"#::!;iIFt;fiui#Ln:f;i,f:i::j!!i!i::."d:f ,,,n:n,,:il;,n,,iiyt:Elli:::ji,,.,"t".jjsupply of used botUes, and the fluctuati""iri g,.";t""i ; ;;;il ;,:;Til3,31f:"i:?il"ff!ii;it"t1,xi* .T5,1?!? lJ .j:J;:Hi,tr!gIMPACT OF THE TECHNOLOGY AND PROJECT

ii"di[l;ri,,,"{:i;",JtJ!:T*i,tJ::i,::;:!!.ffi5f"'Jil,ffii"#:?ff:i*:::';il:?"..,.Tr;:j:fi :,_,: i:iilEl[!:? !it'!:il:,:":1 i?ilie:jffi tfl j*$'",_:"jJ lrdl*1i:";::*ffiffi!:Tfitri:iT:Ji,T$$,o,ioofl1"ilff:"#:",,,#dooij.ilp;;",i;;:;:.iiJiilJr,o.rui*un,r,i.r,.o,tThe machife has two parts, a container vn:[1.iLT]i#:,Hn"l""ff ffi ,ilfi].il lii,:]ixir::!4F !:ij::T*iff t#y,".,::,:ffi r""?;:lii:li:;"rm::ii':*En#:;# :Tt'r:#i{i&i:i""'i;€':,:, J;: j;ll[:l':; niit;:m+:'ruq ;:i:l* :,.'lnfi '1.ili{ fi*,{,flT?fl ,,,ffi j#i;3l l,*:::il,H":,J::ilnifli,lit-;{ib,g'tflifl[:i]tii{g,l'{4"[::ffJ,::i[,i:J]",;:iliffflil:,,:ffi",yj?i:soLtthern Bandung, ior example, showed i

lTfr;[dJ*'"fffi; "ffi["ff*i":ii:fl:H: ]:n:9y,Til,"?:m":"*;*k "*nl*iAs w Inessed oy local adn ntslrators aad ervtro.nearalists, a used crusher was granted !o rim in 1996, on:f.l,olJ'l?:,'.:JTf:,f:",[:J:$,i:"" n. o".i",uJ"p,L"i iiii''-oiii#o']'l*.*, sovernmen,

&::'"':"'!'#lTi;:T[?11'lT;tfl:": ':::l"l' sudrajat did not become the suiBs:Tti:[::J;$:1""T:r;i;tr*fl rf [ili"*#j:h,'1ffi fi 5*" j.il.:l*lft LTiHir:rn"v toor-tn" riuru"# ;# :#l'T;:S",,T::'li:*i: :l,r,i:-",^.5::ffi :l:*ir-;il;Ti*:ni.j

;lji*:{ljl.'iii:j"","H?ili!t:"9..t.P,1?J;"*,:fliff",:il:,:,:J:,."",""[ijj?:,i"i;,?il;:lj|,:!:"ffil""TJf:; il1:i;."nf;,,*,?i=T:",, cjrv. u.ri;0. u :".0"-"""o"i,iJi r" waLn,.'*i,i;

ffi ;rm"-*#;:lH i+iinlyi::'.r"#itti,1:ili:ft l;nfl,#i",'i{";,#There is likewise the question ofwhy a used

-l--,ru::+n ill' :t.l:unliTiffifi+,H#'.,;ti?,,;" :",.l"";;lijfl;,"J:+:;,l:,.ft ,:5iJ[1]$":: :61,""ffi"t,T,: [i,.]!";::.11 9"""H:m::1,:ll*li ik,]!"^15.31 ,5"11 , =" ,*1

to them was very low. Even lf they ran the machine 24 hours a da, the output woLlld sti be insufflcient topay For the purchase of enrpq/ bott es from scavengers, the salar es of the mach ne operators, and the coslof transport ng fakes to the nearest text le factories.

Theoreticaly, t shor.r ld not be the case. A k logram of empty bott es was worth Rp400, while a kiogram ofPET f akes ranged between Rp600lo Rp1,200 labout US$0.481 depending on the r c eanliness Butthe prceoFflakes someUmesdropped toas owasthepriceoftheusedbott lesthemseves These f luctuat ons nPETprices were inf luenced by the amount of imporled plastic seed and by vo aUie exchanqe rates of the fo-e gn

cufrenc e5,

In 1996, a new petrochemica p ant opened, which boosted dornest c PET prodLlct on but h tthe PET recyclngbusiness very badiy. On the other hand, the qLladrlp ng of the Amefican dolldr exchange rate in 1998he oed the bLrs ness to prosPer.

Bu t t f esu l ted in theshooUngupo f thep r j ceo i c rL i she rs The p rog raTn spen t ess thanRp l00n l l i on [abou tUS$40.0001 to dlstf ibute 12 crlshes in 1997 buf t took morc than Rpl50 m ion labout US$60,000] top!rchase six Tnach nes dLrring the monetary crss of 1998

luleanwhile, thc economlc crisls hlt AGI\4 badly too. The afqest boLt ed watef company, wh ch opefated morethan 15 factofcsand 56 depots with i thearch pc aqo, had to nvlte ln a lore qn partner Thrls fr-cfch basedwaLcr manufacturer, Dirnone, bought40 perccntoithc cornpany's shareslo hc p AGM pay iorforcign deblsOn JLrnc 30, I998, the PeduI Aqua D'Vl- proglam oif lcaly ceased.

In those f ive years, hovlever, the recycl inq ploqrnm sLlcceedcd n promotinq the commerci i l vaueofLlse' ipET bot es. t ' tar]y bec.rf i te awire that used PET boll lcs act!aly coat rnore than tha'f conlent. consumer5were encouraged to f ind nrany cfeative and dif i€rent ways to uti lzc their used bott es Recyc ed bott es weref rst used to make do 's ha f, p asl ic robes, and p astic bands. Some ol the highest qlal i ty PET l lakes wefcexported to China. DL-tr fqt one high PET demand scason in l ! ly 2001, ior example, t\4f Tarlf k Sur adiaja s0 dal east 50 tofs ol hiqh qlal i ty PET fakes to Ch na.

The domestic m a rket accepted lower q Lra lty Fla kes fo r owef prices These we fe tLlfn ed lnto ca rpets, polyester;

c!rta n drapes, and zippers. 'The sad parLofthe bLlslness was the Lrncontfol led fLlct!at ion ot f ake prces' Insome cases, smal crusher operators had to stofe thelf prodL.rcts for sevefa months while walt ing for pnces

lo irnprove. As a result, caplta dld not revolve and some businesses had to request for subsidy

Another Droblem was the unstab e qua lty oF the fakes. some texti le tactories reiected dclverles becalsethese had be ow-standard ceanliness and purlty A specal screeninq was then nsta ed to prevenl l freexDortatlon of low qualty PET f lakes. ALso, there was neurs that a huge p astic recyc ng center v! th e ght

mach nes and a LJS$50,000 caprta izat on was estab shed by a foreign company A de egaUon oF s x cf!sh ngmachine operatoTs came to Aq!a, request ng lor protect on They leared conrpetlt ion with the fore gn andgiant recycers. Plastc recyc inq wotl ld then be on y benefcia lor huge enterpfises, and notforsmal-scaep ayers, especia ly loca NGos.

LESSONS LEARNED

Cofporatlons need to col laboraie with nonproi i t and nongovernment organizatons to dea with vafousissltes that have to do with the envlronrnental impact of thelr operat ons Activ t es can range from natLlralresouTce protecton tlp to waste manaqement of waste This \ras demonstfated n the AGI']'S lsed bottlespr0qram,

NGO5 for the r part m ght want to conslder corpofat ons as partners instead of enemies There shoLlLd beopport!nitles to learn and to contrlbltte for the benefit of many parties and the environmenl despite confl ctlnginterests that n'ray tend to dlscourage collab0rat 0ns.

when the late lvlr. Tirto utomo promjsed to clean up his company's waste and donated the mobilized fi-lnd tohelp environmental activities all over the country no letter of agreement had to be mad€ The only writtenD;oof of the fact was a report of serninar proceedings on urban development held in Jakarta in 1992 As;uch, it rs understandable that members of the DI\41 board of directors regarded the AGf4 donation as awindiallor an Lrnimaginable surprise Fundraising activ t ieswerevery owforquirea ong period Afundraisingdinner was held at B;robudur Hotel on October 2Z I993, on the Lenth anniversary of DI\41. But the Rp3.55billion laboL]t US$1.42 millionl donated by Aqua as a result of the partnership is probably the biggestenvirorimentat funO received bi a local NGO. Reports reveal that Dl4L was the only environmental fundingagency in a developing country that was financially supported by local resources

Educat ing thepub| ic isno taneasy task forcorpora t ions ,governmentbod ies ,or theNGos 'Th is requ j resioint effo-rt bv va rious players within civil soclety lvl ore a nd mo re information on the recyc ing prog ram is;eeded todav when the corporation and the NGO are no longer in collaboration

PLf -ecycl.q has becone brg ou<iness A grouo ot scave_ge-s we'lt Jp'o Aqua reouesting for protection,

a. rJcortino,o-qe|. frrd e-nougr emoly bottles as raw materials A foreigl recycli.lg compa-y's be|evedio O" inonopoi.inginu crushing;f cJean PET bottLes jn Jakarta and its environs scavengers now find itaini*it io rina us6d botttes oespite the fact that in some parts of the country there is sti many bottLesthrown awav irresponsibly

complaints of used botfles polluting rivers and beaches sull abound in remote areas where crushing isunknown. Yet many are asking, "Where have all the bott es gone?" 14ultipurpose PET recycllng cooperativeshave been established in Jakarta and Bali. They are now the main players in PET plastic recycling. Yet, theyare motivated mostlv bv econornic interest.

Small ventures such as recycling centers run by NGOS have proven to be less effective and have generally

ceased operations jn one totwotears. The one in Bogor Botanical Garden stopped operatlng in August 2001due to a; accumulation of its defcits, lllr Tauflk was lnvited to take over the project but in less than hvomonths, he gave lt up because the machine had a low capacity and demand for PET flakes had dropped

The sept.11, 2001 attack on the world Trade center in New York changed the pattern ofthe plastic recycllngouiineis. uiea pET flakes imported frorn Indonesia were the matertal for chinese polyester which werebelng exported to America. when a traumatized American rnarket reduced its imports oftextile products, itinadvertently caused the closure of many plastjc-recycling ventures in Indonesia

On the bright side, however, plastic recycling industries are flourishing with the use of better and moreadvanced 6achinei. Job distribution and expertise specializatlon have also flourished. Aside from regularcrushing services, some operators are offering bottle Sorting and cleaning services, Differenttypes of crushershave b6en deveioped to flt different kinds of pLastic and non-plastic material. With the introducuon ofChinese technology in early 2001, portable crushers cou d now be purchased at a much lower price TheseportabJe units are now widely used in East Java.

PROFILE OF EXPERTS AND RESOURCE PERSONS

WILLY SIDHARTA was the president director of PT Aqua Golden l4ississippi who caffied out the recycling

;;;";;; itt research stage to finding the right machinery to rmplementing its soclal enqineering

i|,"ir".. i. *"Ja".i"a is mJmoer ot tnieoard ;f Trustees of the Friends of the Environment Fund

orUO* *oo*rO, *u. executive director of Friends on the Indonesian Botanical Garden' which operated

""" "iiir"ii"ini"g ...hines donated by Aqua to the Indonesian Envircnmental Education Network

TAUFIK SOERIADJAJA was a successful prospective recycler who ran the business in Western lakarta and

several other big cities including Bandung and Cirebon'

EKO TEGUH PARIPURNO was a volunteer of DML, a leader of environmental,activist organizations in

ioqvakarta. ttis t,too received a crushing machine, He conducted programs funded by the Peduli-Aqua-Dl4L

oiftl',"rrr'rip, His recycling activity ceased when flood damaged his project site

REFERENCES

Yamamoto, Tadashi and Kim Gould Ashizawa, Eds Corporate-NGO Partnership in Asia Pacific (Japan Center

for International Exchange)

Pathwaysr In Search of Exemplary Practices on Environment and Sustainable Development in Asia PRRMl

tniernaironal conference of Asran Fou4datrons a"d organizations (cAFo)

Various journals and perlodicals covering environmentaljoint projects in Indonesia

organizations involved in activities conducted by the Aqua Groupl

Wetlands InternationalFrlends of Aqua FoundationBirdlife !nternationalCoalition For Healthy IndonesiaIndonesian Envlronmental fducauon Network

MAI,AYSIA

Nature Education Center:A Case StudyBY Gunaseelan Thuraisamyx

INTRODUCTION

This case studv analvzes and articulates the lessons learned from a successful business-Nco-governmentcollaboration in environrrental protection in I,4alaysla. This !nique tripartite collaborauon was formed notonly to conserue nature but addltion, to provide an avenue for people to experience and interact withnatLrrc, so thev can understand and appreciate the 14alaysian rainforest and its ecology The case focuses onhow one initiative, the Nature Education Center, beneFitsthe community as rcgads environmenta prctectionand education.

The study was carried out by conducting extenslve interviews with Shell Malaysla, and Forest ResearchInstitute of Malaysia (FRII\4), and interactions with l'4a aysia Nature Society ([4NS) and Nature EducationCenter (NEC). Primary and secondary data were co lected during visits to the NEC Experts n related areaswere also intervlewed and pictures of the slte were taken dufing vislts. The rnain focus of this case study isthe Nature Education center (NEc) which is the res!lt ofthe collaboration of civil socie$/, state and bLlsiness.

THE PROJECT SITE

The Nature Education center (NEc) is located ins de the grounds ofthe Forest Research Institute ofl4alaysia(FRI[4) at Kepong, 16 kms northwest of K!ala Lumput The grounds cover a total area of 1,152 hectares, theresu t of over 70 years of planting trials and experirnentation on troplcal forestry'

In the eary 1920s, farmers c eared the naturalforest around the area and planted vegetab e gardens Theylater abandoned these fields when soilfertjlity declined. Lalang (Inpercta cyllndrica) }rcssthe invadedthefields. Cattle came to graze on the scattered patches of grass. Tin mining activities a so scarred the land

ln 1926, foresters began reclaiming and rehabilitating the and. They first planted'nurse trees'to protectthe soi and introduced leguminous plants species to improve soil fertiiity Then they planted timber treeseedlings on the lmproved soil under the shade of the plants that had established themselves. The oldesttrees are now more than 70 years old.

Successlon took place over ume. Sterlle mining pools became natural pools while once-grassy fields turnedinto forests. There are clrrrently seven living plant collections (arboreturns) in FRIM Altogethef there areover 1,000 species of both indjgenous and introdLlced p ants ln the grounds, each fuly documented. Thebackdrop of the arboretums now forms a strong base for the development of a botanica garden.

FRII'1 has developed many natural attractions, such as plcnic areas near a waterfall, numerous forest trails,open spaces for games and scenic ponds. FRIMas become a popLl ar destination for families, students,tourjsts and the general public. It offers forest walks, trekking, bird watching, nature photograph, jogging,

orienteerinq and other nature-related activities

x The aurhor s airi lated with the Education and Research Assoclation ior Consumers in Se angor, l4alaysia. The €so!rce person forrh..ase stunv was l.4r Garv Lim.

It has also become a place for overseas visltofs to experience the tropical rainforest. One can walk amongthe trees in the Canopy Walkway. The NEC program is designed to showcase the local envtronmenr ano rcoffer direct experience of nature.

PROFILE OF PARTNERS INVOLVED IN THE NEC

t Shell Malaysia

The Royal Dutch/Shellgroup ofcompanies is committed towards creating wealth, generating rcsoLrrces, andtransferring skills while contributing to nation-buildlng and to the well-being of the people in every countrywhere itoperates. Shell Vlalaysia workswith other institutions towards education and slstainable deveopmentin lValaysian society, especially in environmental conservation activities,

In its Sustainable Development Report of 2000, one of the key messages from the chairman of Shelll'lalaysia was "...we believe that sustainable development is the right approach because values and principlesare important and it makes good business sense."

The Shell group of companies, Shell l4alaysia in parUcular (herein referrcd to as Shell)/ has been operaUngfor the past 110 years. Apart from running a profitable organization, She I also aims to contr bute effectiveltto lvla aysia's socialand environmentaldeve opment.It accepts and commitsto the challenges ofsustainabledevelopment as defined in the United Nations Conference of Environment and Development: "Developmentthat meets the need of the present without compromising the ability of future gene€tions to meet thekneeds" (UNCED,1992).

Shell currently has a neh^/ork spanning over 56,000 stations supplying fLtel and othef products and servicesglobally. It has created a ma*et towards an "environmentally frlendly" network, Solar energy is already inthe market and Shell makes the photovoltaic panels that are installed in countries such as Bolivia, SouthAfrica, Sri Lanka, the Phil ippines and hdia.

The in'rplementation of a Slstainable Development tlanagement Framework (SDtyF) and the Health, Safetyand Environment lYanagement System (HSE MS)is the main componentofShe l's commitmentto sustalnab eoeveropmenl,

According to Lt. Col. (Rtd.) Ir Wahiruddin Abd Wahid, Shell l4alaysia's General Manager for CorporateAffairs, the SDIYF is a practical tool lsed to embed sLrstainable development principles in all of thetr g obaloperations. On the other hand, HSE-lv1s ldentifies hazards that affect people, assets and the envrronment.These are then systematically assessed and contro led, and effectlve recovery measures are suggested. TheHealth, Safety and Environment ^4anagement System has also earned Shell the ISO 14001 certificatiof forenvironfirenta management and the Occupational Health and Safety lYanagement Systern (OHSAS 18001)International Standards.

These achievements arc significanl for Shell Malaysia as a demonstration and recognition ofits commltmentto its sr.rstainable development a nd managemenl framework. Mr Wahiruddin points outthatthe envlronmeftalcertiflcation also providesan effective environmental management system to support envjronmentalprotectionand prevent pollution in balance with socioeconomic needs.

In ine with the HSE policy, Shell has developed a systematic approach to controlling emissions (fromburning, flaring and venting) to the aif and discharges to water (oil in water and spllls).

Some of the major social responsibiliUes Shel has undertaken are the Shell Traffic cames, an educationaltoolin creating road safety awareness, the I\4 otorcyclists' Safety Carnpalgn, and the Environmenta EducationAWareness,

Shell's contribution to the NEC is in the form of an annua grant of Rt450,000 [about USg13,000] to theI\4alaysian Nature Society (l\,lNS) to manage the NEC. This is a unique effort taken by a business entity tocollaborate with the government (through FRIM) and a nongovernrnent organization (the MS) for the

SHELL'S ENVIRONT4ENTAL ININATIVES

Shell has been suppoting environmental education programs and other activities such as tree planting, andcleaning campaigns for beaches, rivers and roads. Among the environmental projects it has supported are:

. Nature Education Center at FRII\4

. Wetland Education Camps-Environmental Education and Awareness Building Programs run by WetlandsInternatlonal Asia Pacific (l4alaysia Program), a Ramsar site. The Ramsar Convention (kan 1971), anlnternatlonal agreement iocused on wetlands protedion, seeksto preserve aquatic birdlife. The conventionalso focuses on bird species protection and the preservation of the ecosystem, and the value of theseecosystems for people who depend on them, particularly indigenous people and local communities.

. The Elephant Conservation Center at Kuala Gandah, Pahang, in collaboration wlth the Bukit EintangRotary Club and the Wild ife Department of Pahangi

. The New Naturc Interpretation and Environmenta Education Centre in Danum Valley, Sabah, lncol aboration with Danum Valley Field Center;

. The Asean Inter-Varsity Environmental Debate 2000

i\4alaysia in 2020, A sustainable Development Essay Writing Award, with News Straits Times Group;

"Enviro Dialogue'i a wide range of envjronrnenta issues tackled in 32 episodes of TV segments overNTVT ln the year 2000.

r Malaysian Nature Society (MNS)

The mission and philosophy of N4NS is to promote the conservation of lvlalaysia's nature heritage by gettingpeople involved in nature and outdoor activities, It also focuses on sustainable development (l.1NS, 2000),

Established in 1940, the l4NS is l4alaysia's oldest and largest scientific nongovernment and nonprofitorganlzation involved in nature and conservation studies. To achieve its aims, [4NS works closely with thefederaland state governments/ the media, academe and the corporate sector lvlNS currently has 13 branchesthroughout l,4alaysia, with headquarters in Kuala Lumpur.

The Society has about 5,000 rnembers in l4alaysia as well as a small number of rnembers overseas whoshare the society's vislon and aspirations. MNS is a mernbership-based organjzation run by e ected members(council) on a voluntary basis. The Society conducts public campaigns and membership recruitment drives.It targets a membership of 10,000 by year 2005 in order to influence public opinion and environmentala0v0cacy,

It offers its members activities such as astronomy, bird watching, cave exploration, photography and trekking.It also conducts seminars and workshops. The Society also offers a wide collection of publications aboutnatural history. It produces merchandlse such as books, T-shi,ts, CDs and souvenirs to raise funds tosupport the Secretariat.

At the soclety's secretariat or headquarters, a team of dedicated Staff monitors conservation activities andprojects, expands membership, and carries out education outreach programs. The secretariat ls organizedinto a Science and Conservation Department, an Education Department, Publications, lvlembershlp and aFinance and Administration Department. A reference library houses various natural historical publications lnIvlalaysia and throughout the world. Regular branch newsletters are produced by members, documentingand provide information on the sociew's various activities.

Besidesthe Nature Education Center in FRII4, the MNS has initiated other notable projects such asthe KualaSelangor Nature Park in the coastal mangroves of Selangor, Endau_Rompin State Park and the Nature

Education and Research Center, Endau-Rompin, Johor, and a protected area for conservation jn the southernstate of Peninsula [4alaysia. Other pro]ects include the 14NS-Boh field study center/ a patnership with BohTea PJanlations, and the Rimba Ilmu Environmenta Education Prograrn with the Ljniversiv of |\4a aya jn

Kuala Lumpur (brochLrres attached).

. Forest Research Institute Of Malaysia (FRIM)

The Forest Research Institute of l\4alaysia aims to prornote sustainable management and optimal utillzaUonof forest resoLlrces, by generating knowledge and tech nology throtlgh research developmentand applicatlonIt is guided by the following objectives:

. To generate knowledge and deveop appropriate technoogy for the conservation, management andutilization of forest resources;

. To provide research-based seNlces to meet clients'needs;

. To commercialize R & D rcsu ts;

. To acq,rire ano oissem.ate infornahon;

. To create awareness on the efvlronment and conservation roles of forestryi and

. To pursue excellence and attain leadership in tropical forestry research

Forestry research in l4alaysia formally started in 1918 with the appojntment of Dr. F.W Foxworthy as thefirst Forest Research Officer under the then Forest Department. The research branch office was transferredto the present site at Kepong in 1929, The branch was named the Forest Research Institute (FRI), KepongIn 1985, the 14alaysian Forest Research and Development Board under the I'4inistry of Primary Industries,through an Act in the Parliament, allowed the institute to change its status to that of a statutory body nowknown as the Forest Research hstitLrte of lvlalaysia (FRIp1).

According to FRII\4, the move was made to enable the institute to serve a nationwide clientele and to lnteractbetter in an lnternational context. FRI[\4 ls now responsib e to the I'4alaysian Forestry Research andDeve opment Board (MFRDB) which comes under the purview of the l4lnistry of Primary Industries,

FRIIl has formalized arrangements for collaborative research with local and foreign organizations lt hasundertaken numerous proiects with other countries and agencies though various lvlOus (Memorandum ofUnderstanding) with universlties and agencies.

FRIlvl conducts and advances research towards the development of forestry and the forest lndlstries sectorin l4alaysla. It is tasked to obtain and disseminate inforrnation regarding the management and deve opmentof forestry, forest products and the utilization of these products lt likewise coordinates research actlvltiesrelated to forestry and utiJization of forest resources in l4alaysla. Among its fLrnctions is to create cooperat onand linkages with organizations to achieve the abovementloned objectives.

FRII\4 has won several national a nd internationa awa rds. In 199 f. it was accorded the l\'lerit Awa rd, La ng kawiAward, and Petronas Innovation Award. In 1994, it was once more recipient of Petronas' I nve ntor's Award,and the following year the Internatlonal Sclentific Achievement Award and 4th Asian Achievernent Award/the latter awarded by the Asian Business Forum. For two consecutive years (1996 and 1997) it garnered theWorld Intellectual Property Organization Award. Also in 1992 FRIN1 was given the Golden Hand Award Theorganization hosted the International Unlon of Forest Research Organizations Congress (IUFRO) ln 2000.

Some current concerns in its research, development and extension activiUes are natural forest management/plant forest management, environmental science, forest products utilization, chernical prodLlcts, foresteconomics, medicinal plants, and corporate affairs.

FACILI ES

FRIf4 ls able to offer the public a wide range of faciities for research, education and recreatlon/ prlmarilybecause of its location and lush forest surroundings.

Its library has become a centralized depository, holding a national stock of forestry-related llteratufe thatdates back to the 1800s. The llbrary is computerized.

FRIlvl mainta ns a plant nursery to improve its plant stocks for better growth and for the surviva of itsseedlings. The nLrsery supplies ornamental and shade trees to government institutions and agencies.

Within FRIM's gro!nds is located the Forest Science Park, which provides oppodunlties for research,education and outdoor recreaUon. It is a popular spot for picnickers, joggers and nature study groups.Among lts attractions are natLrre trails, waterfa s, tradtional houses, a museLrm, canopy walkway, andarboretum.

a Nature Education center

The Nature Education Center (NEC) ls the brainchild of Dato' Dr Sa leh lvlohd Nor, the former DirectorGenera of FRII,4 and the current presideft of the [4a aysian Nature Society. NEC was launched in 1993 toreach out to the public, especial ly the chidren, and teach thern aboLt natLrre. He thought of bringing lnother organizations to he p develop NEC as an environmental educaUon center for the public,

[4r. Gary Llm, head of the lvlNS Education Department, is the enthusiastic NEC coordinator at FRItvl.

According to I\4r. Lim, the center efv sions itself as an environmental institution contr buting envlronmentastLrdles to the formal educatlon sector NEC strives to be ab e to offer accredited courses at par with thediplorfa or degree courses offered by any loca university. NEC has developed core modules in environmentaleducation which lt hooes to imDrove fLrrther in view of lts associaUon wlth FRI[4.

I\4r L m emphaslzes that NEC a ms to change the attltudes and va ues of participants in order to get them tocare for and live in harmony with nature. It wil not coTnpromlse these aims, says I\4t Lim, adding that: "Asconcerned cltizens, we must lcare abolrt] conserving nature. What is left has to be protected, maintainedand balanced with population needs and the ecosystem," The NEC uses the s!frounding forest as classroomin imparting awareness, knowledge, understanding and skills through lts various activlties.

Positive response to\,!ard the NEC has grown steadiy among students, teachers and the general pub ic.N4anV natLrre camp actjviues have been conducted in the past nine years. N4ore than 8,000 participants havevisited, participated or had, in one way or another, benefited from activities conducted at the centet

Schools and organlzaUons contact the NEC directly to participate in its activities. Bookings normally peakduring school holldays, although efforts have been made over the past two years to diversiry and spread theactivities throLrghout the year

Students and teachers are the center's main target sedors, After experiencing a nature camp at the center,many students have returned to their schools to form nature clubs. It is hoped that through the creation ofmore cl!bs such as these, follov!-up activities and neh,vorking with other gioups wil continue.

Mr. Lim addsr "Visitors [also corne] from the corporate Sector such as employees of the National ElectricBoard, l4alayan Banking, Arab l4alaysian Bank, Kuala Lumpur Stock Exchange and other cornpanies whocome here to enjoy the tranquility and peace by participating in the training programs,"

Some of the center's activities are conducted with resource persons and scientists from FRI[4 and 14NS. Inmany ways, the NEC is able to expand the work of FRIM and MNS through the hands-on activities ln thecentersuch as natufe studies, fleld trips and experimeirts, When students return home, they woLrld hopefully<hrre h/ith nrhFr< u,h^t thav ay6cri.n.p.l rt fhe .enipr:n.l thc ide;< thFV hevp lcarncd

The center has become pop!lar with families because children are able to spend tirne during schoo holidaysjn a more productive manner Ms. Jessica Umbukan, stafF at the centel, says that she receives cals fromparents reqLresting advanced booking for the holiday camps. Parents have also urged the NEC to organizemore activities for their children.

The limitation in human resource is currently one of the major obstacles that hamper the development oFthe NEC. The three staff members, 14r Gary Lim, lYr, Evelyn Lim and f4s. Jessica Umbukan, are all aflliatedwith the !lNS'Education Department. The th.ee share the day-to-day work at the NEC, and also attend toschools and public requests for programs concerning the environment. Wlth nore NEC activities ln thepipeline, the need grows for recruiting more staff.

MOTIVATION TO COLLABORATE

The main motivational factorthat brought together a government agency (FRI14), a private sector company(Shell l4alaysia) and a nongovernment organizauon (MNS) in a tripartite collaboration is a common goal andinterest in naturc conservation. It has been the ldea and vision of Dato'Dt Salleh lYd. Nor to promoteunderstanding, apprecialion and conservation of nature.

The establishment of the NEC, one of the pioneers if the country is significant, It is a rnilestone for Shelllvlalaysia, FRIP] and l4NS for having been instrumenta in the creauon of this first-of-its-klnd educationcenter in I4alaysia,

Shell lvla aysia seized the opportunity for co Jaborating wlth other groups because this was ln line with ltscommitment for sustalnabie developmeft. Shell l4a]aysia aims to balance its socia, economlc andenvironmenta concerns by helplng deve op the youth through education, and through community careprograms which urge voluntary involvement ffom Shell's staff and their fam lies in the company's var ousprograms for environmenta awareness and understanding.

The NEC collaboration fell under Shell's progfam for promoting environmental education. Shel has learnedto appreciate that lts growth as a buslness enterprise does not guarantee prosperlty and is not llkely to besustainable, if made without regard for environmental preservation or a sound Soclety.

14r. wahiruddln also mentions that Shell has made itself a role model for other companies. She I is wiLling tosharc lts experience to any company interested in getting involved in similar co laborat ons.

The col aboration has promoted NEC in many ways. The cenier has p!bLlshed information in magazines, theelectronic media, newspapers, FRII4's newsletter and Shell! corporate publications. It also reaches peop ethrough companies, schools, and the public as a whole. This has benefited all three organizatjons. NEC wilbe promoted internationally and will then have a wlder area to cover and explore. Introducing the I\4alaysianrainforest to countries around the world such as Africa, Japan, Korea and others wi I be the next agenda forlmolementation.

NEC is able to cornp ement, translate and extend FRII4's scientlfic work to a wider a!dience. As a scientificinsutution, FRIM possesses knowledge that can he p government develop appropriate technology forconservaUori, management and proper utllization of I\4alaysia's forest resources. FRII\4 scientists, w th theirextensive experience and knowledge, are a valuable resolrce to the NEC which, on the other hand, hasgrown as a nature study center catering to people from al walks of life.

For its part, l4NS joined the collaboration because in doing it has more ground to work with and moreoppoftun iU es to spread awa reness more effectively. I\4 NS pa rticipation has been g iven specia recog n iiio n byShell, FRII'4 and [4aiaysian society in genera . I\4NS is proud of ts ir']volvement in the collaboration, which hascontributed greatLy to its growth and has provided a widervenue to disserninate ideas and knowledge to thecommunty.

Dr Salleh points out that the partners involved in the co laboration have forged a strategic al iance, whereone comp ements the others. He stresses the idea that ln a ny joint venlure, it is irnportant to have a synergy

IMPACT OF STMTEGY

Put)lic response was moderate at the start and it was difficult to get people involved in\the programmedactivities, As time passed, more and more people recognized the center's value. persistence and hard workby the center! staff started to pay off as more schools joined the NEC programs. NEC also organizesactivities for children during school holidays and weekends.

N.lr. Lim and his team of education officers and volunteerc spend a great deal of time promoting the centerStaffturnover is high but NEC hopes to get more organized and stable in the future, The fast staff turnovertends to create more work for the staif because they also have to train newcomers, apart from having toperform their other regular adivities at the center

The center's staff members are assisted by the experts and scienUsts from FRIM in conducting centeractivities. At the sarne tirne NEC learns from these scientists.

FRIlvl, on the other hand, which is open to the public, has given the public the opportunify to see andexperience lhe surrounding forests. FRIlvl! popularity as a destination forfamilies has been growing. peoplearc com ng for pic|ics and famiy days at the grounds,

With this strategy, the public has been brought straight to the doors of the NEC, which is located within itsgrounds, FRllv1? MNS and Shell lvlalaysla have become better known to the public and are able to play a moreserious and effective role in the nature conservation and environmental awarcness.

lvlNs has been establishing nature clubs in schools in l4alaysia since 1991, It has provided these schoolswith a venue for environmental education.

Toda, NEC is a successfuljoint venture among the three organizations. In the years to come, the centermay become self-sustaining in the operational aspect, It is a positive role model that other organizations canemulate through similar collaborations.

BENEFITS AND LESSONS LEARNED

Al concerned parlies agree that the NEC collaboration has contributed positively in building a betterenvironment and creating a society with environmenta ly responslble individuals.

Sustainable development is the key rnotivationa I factor behind Shell,s effoft to form the collaboration. Throughthe NEC, Shell is able to contribute to b!ilding more awareness and appreciation of the envrronmenr anoinstil the importance of environmental preservation. The patnership provides Shell a balance betweenprofit-making and promoting environmental preservation for the communjty in which Shell operates,

Shell is also able to create and nurture an image of sustainability - that aithough it profits from nature, itcan also contribLrte to its preservaUon. This is reflected in the "We Care, We Share,,concept of its Slstainab eDevelopment ReDort in 2000.

As for f4NS, the collaboration has given it an avenue for its own efforts in creating a more environmentalyconscious society. With the NEC, I\4NS can now develop its environmental education program and promoteit more aggressively to the public. {YNS has become better known than before. Also, it has benefited fromShell3annualfund grants, allowing itto plan and implement itsactivities more efficlenUyand more effectjvely.For its part, NEC has found in f4NS a platform for developing its education and outreach programs moreorofessionallv

Shell contrlbuted not only flnancially, but by encouragtng its stafT to support the activities orga|ized by thef4NS through the NEC. Shell staff, in their capacity as mernbers of the tripartite committee, get to monitorNEC's p.ogress. Indiredly, this effoft gives tvtNS additional recognition in the eyes of FRI[4 and society inoeneral.

This project js also considered a long-term investrnent by all the parties involved for the preservation of

nrtri". firuS.un no* plan future activities and promote these through NEC

FRllvl was once better known for its researches and nafure st1ldies lt was pdmarily a research-based scientific

itiJn rlJi.J"n""a a o*"loping governmenrs and nottie public's interest Today' FRII\4 is also known as a recreatjonal

center The l\4alaysian public is now more aware of FRI[4'S signiicant role in conserving nature The many FRIM

ignboards lining trre malor roads to the NEC or I\4NS would attest to $is

As for Shell, its efforts for sustainable development and nature conservahon, have been recoqnized by the

oovernmeniand ftre communities where ltope;ates. They are considered shell's contribLltion to the [4a]aysian

iuOtic anO to the Future generation. Shell has also set a precedent for otherc in the corporare secor ro

follow.

NEc has become a venue for many social and teambuilding activities for shell staff, enhancing relationships

within the Shell family and helping in efforts to build a caring society

CONCLUSION

Developme lt ano the environrlental c-isis are a cha"enge we face today l'4ore co'porar o1s' qover^ne_t

aqencies and NGos shoLlld come torward and collaboiate for the future ln the -course of I'4alaysia's

iZ""r""tu"iin ,n" oitiRve years, r have personally experienced a dramatic loss of its forests Although

inlv .6,rf0 n""", o"i".tored, I arn thankful for the valiant efforts made to preserve nature'

The th ree orga nizations have a clearvision and motivation to sow the seeds ofawareness of our envlronment'

There is the2esire and the will to carry out the activity and sustain it

As for Shell, there is perhaps a need to be more transparent and thus gain the trust of the communlty and

inose wno jre not in iavor oftheif business activities. The company is being held.to answer for environmental

l"aig;ln its "ii""pr*"tions,

as well as environrnental disasters due to oil spills, explosions' the Brentspar

"u"niiuni if'"Nig"', o"lta in;ldent in Nigeria. Fortunatel, some ofthese disasters were quicky attended to

before matters got out of hand

FRI[4 today plays a more active role not onlv In research 9F d.gvel.oelell qYi,]n providlng sufficient

information about nature and in extending a he ping hand to all parties involved- 14NSplays a crltical role ln

;ililih; N;a;t'h manpower and sirategies io promote NEc to the public.As.[4Ns is known for its

invotvemient in nature-related activities, the NEc provides the virtual classroom that augments acaoemlc

learnrng.

With oositive attitudes towards envi.onment sustainability and strict obedience to the pollcies ofthe compan,

t)"tt"ii"ioo*". ur" ""pected

from subsldiaries in getting involved in sustainable development both in as

pat of a iense of responsibility, as well as good buslness practice'

ANNEXES

Annex A: The Nature Education Center (Brochure)

The center conducts various courses about the environment and other nature-related activities. These al owparticipants to stLrdy and experience the rich and diverse naturalfeatures ofthe surrounding reserve forestmanaged by FRII4.

The center is managed by MNS and receives an annual grant of R1450,000 from Shell l4alaysia Trading Sdn.Bhd. Various nature-related activities are conducted, aimed at showing a positive attitude, appreciation andcare ofour natural heritage through hands-on participatory learning methods. The envkonment suroundingthe NEC provides diverse natural resources to exp ore and enjoy.

The courses and camp activities at the center are open to the public. Participants will be exposed to natureand the envkonment th roughout the program. The NEC! programs include a va riety of envircnrnent educationmodules designed for individuals and groups for specified duraUon, The l4alaysian tropical climate boasts ofsome of the world's greatest rainforests.

ACTIVITIES

a, Forest ecology for daytime nature walk i. Bird watchlngb. Sllde shows (on various topics) j, Terrariumc, Astronomy and stargazing k, Compostingd. Introduction to fungi and mushrooms L Nature hunte, Llfe in the stream and fresh water eco ogy m. Nature crafti Papef recycling n. Flower pressingg, Night wa k o, Caves ecology (trip to dark caves)h. GLrided forest canoDv walks

SOME RULES AND REGUUTIONS

a. No unnecessary noiseb, No radlo and musical instruments (guitar, etc.)c. No cooking and carnpfires (do not start fires)d, No mosouito coi and aerosol sorave. Do not harm or destroy any life-forms and plants or damage the environmentI The center encoLrrages you to rethink, reduce, reuse and recycle.

FACILITIES

a. Dormitories for 18 ma es/18 femalesb. Audiovisual aids (s ide projector, oveftead projector, television and videocassette recorder)c. Field course equipment (modules, blnocu ars. microscope, etc.)d. Books, joLrrnals, articles on nature and natural historye. InFormative postersI Sales of souvenirs (books, T-shirts, etc.)g. 24-hour recepUon d!r ing camps

PACMGE

Maximum participants per camp: 36 personsN4 niTur'r pal icipa-ts per canp: 15 perso's

Rates Students Adults

1 day Rlvl 35 R[4 602daysl1 night RIY 65 RN4 952days/1 night RIV 95 RM 130

Rates include:. Accommodation. Catered meals (++tea and light supper). Insurance coverage. Guided activities. Lect!re faciliUes

Bookings: Inquiries can be made by mall or telephone but must be folowed up with an official letteror in wHting in order to secure the booking. The [4NS reserves the right to cancel or assign alternativebookings lf the dates applied for are unsuitable. Activities are subject to change in case of poor weather

Payment: A 50o/o payment has to be made hvo (2) weeks in advance before scheduled date of thecamp or course. Payments are collected by the I4ALAYSIAN NATURE SOCIETY.Cancellation: Notice for cancel ation must be made one (1) week before confirmed booking date, Twenty-five percent (25olo) of the fee will be retained by NEC for late cancellations. Last minute cancellation andcancellations made later than one week will render the booking liable for flrll camp or course fee,

Annex Bi Profile Of Experts And Resource Persons

FRIM/MNS

Dato'Dr. Sa leh Mohd Nor, Presidenl, lvlNS; Ex,D.Gen., FRI14

MNS

l'..1r. Gary Lim, Head of Departmentl'.ls. lessica Aliah Unbukar, Prog.dlme OfcerN4rs. Evelyn Lim, Programme Officer

SHEI-L

Lt. Col. (Rtd.) Ir Wahlruddin Abd Wahid, Gen, lvlgr, Corporate AffairsEn. Redza Rarnli, Senior Communify' Projects Organizer

ERA CONSUMER MALAYSIA

Mr lvlarimuthu Nadeson, PfesidentMs. Indrani Thuraisingam, Secretary

Internet so!rcesl

Shell Report, 1998, 2000 (Manual)

Brcchures, articles, journals and rnagazines from l'4NS, FRIl4, NEC, Shell

Pictures during site visits

Interviews with Dato'Dr Salleh [4ohd Nor (l\4NS, FRIN4), [4r Gary Lim (IV]NS/NEC), I\4s. Jesslca llmbukan(l4NS/NEC), Lt. Col. (Rtd.) Ir. Wahiruddin Abd Wahid (Shell), and 14r. Redza Ramil (Shel)

www,shell.cornwww,mnS.com

www.shell.com/royal

PHILIPPINES

Environmental TechnologrFrom Coconut Waste

BY Enrico O Garde*

THE DEVELOPMENT CONTEXT

The Phil iPPine UPlands

TOPOGRAPHY

The Philippines is composed of more than 7'100 islands and is estimated to have a land area of 300'000

square kilometers

The uprand area is defined as rands wrLh a slope of 180 0r nrore. This is because_sropes above this gradient

are D.one lo erosio'o1." t""'" u," t''t'uoilT]'"b"''i tos'ooo to""'" urlorete s' o- rno'e than 55 oercent

of ft'e co-nL v s totd' rano o'"u' t'u ' n*" 'iiiii'"o ui'uoitat -ot tns tou i€a' 19 pe(e't const'tute

dreas witn roderately sLeFp slooPs l / pert enr nake uo s[eep slopes ot (3Oo 5Oo) and 19 percenf conslsr

o've-y steep stooes (5Oo -o) (see Fxhibit I )

EXHIBIT 1, PHIIIPPIN E TOPOGRAPHY

IFOREST COVER

3J,il,.i[5i,lhf3[#?J"J?T;3J1ff:"?i:[S,??*l!ft'lliTi'ii'i"'"J.'1'"3:i'i#J"'if ]:::3"i:lito 18.62 percent of total land area'

y*$:j:iili?HJ?::i,lilli:;,i,,:,l,"i3iJ''lli#,:ffi*:,*"i5['"ff:i:i"";:"#l''T"L*t:'" "

. ; ; ; ; ; ; ; ; ; ; ; , "p"" . " "ndEqui tyFo!ndat ionlnc,anNGornthePrr j r ipp ines rheresourceperson

io. the case ttldy '!as DL luttn0 Arboeoa

l EnvironmentaLscence for s a'lalchalrge'Inc Dedne atthe Philippne Farest Mart'a: lhe Bookmark' hc 1999

THE COCONUT INDUSTRY

COCONUT VIZ, OTHER COMMERCIAL CROPS

The coconut industry is the most important segment among the comnercial crops in the collntry today

It is ranked first in three categories: lt is number 1 in terms of area planted, followed by sugarcane andabaca. The coconut sector ranks first in terms of total produdion (in metric tons), followed on y aga n bysLrgarcane and abaca. In terms ofvalue of production, coconut comes in at nLlmber 1, followed by sugarcane,rubber and tobacco (See Exhlbit 2).

EXHIBIT 2. RANKING OF COMMERCIALCROPS(ANNUAL AVERAGES, 197A-1992)

saaCEOFsaStCDArA:CA,4A t wo,Snr AttALrStS, PCARA USttD lCtrEDIN?A,CRE 19fi1)

CURRENT UTILIZATION OF COCONUT FRUIT

l4ost ofthe coconuts harvested are used to produce copfa. In this process, the meat is separated from thehusk and the shell, and then dried, Copra, in turn, is the primary ingredient for cookng oil, dessicatedcoconLrt, and other products. The husk is Lrsually used as fuel for households or copra drier (Exhiblt 3).

EXHIBIT 3. CU RRENT UTILIZATION OFTHE COCONUT

Cocohusk

Fuel (Household)Fuel (copra drier)Waste

F s

.^^,, P Cooking Oil

3 rui $ i;;sicated coconut

Coconut 4 CopraOperation

D]RECTION OF TRADE OF COCONUT PRODUCTS

Compared to other countries, the Philippines is one ofthe largest, if |ot the largest, producer of coconuts inthe world. However, products derived from the nuts are prlmarily geared for export.

As a whole. local utilization was only 20 percent in 1995, and 28 percent in 1997. Conversely, exportsrepresented 80 percent in 1995 and 78 percent in 1997 (Exhibit 4).

, PeoDle's aternative studv center for research and edlcation ln socia developnrent (PASCIES). Envircnnentaly sound And Sacially

AS may be expected, exports are primarirv in the form of coconut oir, copra mear and dessrcareo coconut, inthat order. on the other hand, local consumpt on comes mainly in the form of manufactured or refined oiland coconut oil for oleo-chernicals.

SHARE IN PH]L]PP]NE EXPORTS

Totalvalue ofthe philippine exports in cocon1eB7 to us$643 ;iri;; i;i;r;;;;; u:;#3T lff*,:i&%i";';lfl,i||' '''e It srew rrom usgs61 mirrion in

In relative terrns, howevei the share of th€trom 9.8 percent in 1987 to 3.6 percent in

-'coconut sector in total Philippine exports has been declining

EXHIBIT5. SHARE IT PHILIPPINE EXPORTS1987, 1992, 1996 (rN MTLLION USI FOA)

5o

rI

souRcE oF aAsc DtrA: cacoqLr nDus,Ry ,n sntEs o, w6 (.,, * ,, ,L{R,s Bra)

MNOR COCONUT PRODUCING AREAS

The Phirippines harvested over 11 bition pieces of coconuts in 19g4 and in 1995. Totar pro.uction reached11.2 bi l l ion pieces i l 1994 and j 1.7 bit ion pieces i- 1995.

Based on hectarage and the number of frujt_ b-earing trees, Mindanao is the leading cocolur-prooLlctng area,followed by Luzon and the Visayas (Exhibjts 6 and 7).

EXHIBIT 4. DIRECTION OF COCONUTTMDE

sauRcE oF aAsc DA|A: cacouut lrDusrRy ka sEREs aF $s6 (.1 | ED tN pascREg ! eeE

90

8 6 0

'E go

20100

1995 1996 lgg?

EXIIIBIT 5, NUT HARVEST.1994-1995

1994 1995

TOTAL | 1r,2O7 l1O0 l 11,701 l1O0rM6 G|ED N PAscPEs, 1ee3)

2,641 24 2,4O4 201,381 1 2 1,385 ) 27rL84 64 7.gLL 68

EXHISIT 7, COCONUT PRODUCTION BY ISIAND GROUPING

Fruit-bearing trees (1995)

DVisayas

souRcE: BUREAU Of A.R|CULI|RAL SrAlSftCi tClfED fl PASLRES, 1993)

COCONUT AREA AND POVERTY

It is interesting to note that there appears to be a positive corre ation between coconut areas and the evelof povety in a given province. In other y,/ords, the cocon!t sector contributes to the conditions of povety inthe communit es.

ExhibitS shows the biggest coconut-producing provinces and their corresponding ranking n terms of poverb/incidence, magnitude of poverty, and the minimum basic needs (f4BN) Index.

EXHIBIT A. MA]OR COCONUT-PRODUCING REGIONSAND POVERTY INDICATORS

tnc iden(e lMaqn i tude l MaN

ffi

The Coconut Coir/Coconut Peat Sub-sector

The previous sections have shown that at present, much of the husks left from copra production constituteunwanted waste for the farms. Abolrt 40 percent of the husks are used as fuel, and the remaining 60

Fortunatey, new products are emerging from coconut husk, such as geotextile nets/ fascines, coconut peatand fiber pads for upholstery The end-users of these produds include the car, furniture and constructionmaterlals jndustries, forest nurseries, horticulture, agriculture, golf courses, and real estate projects (SeeExhlbt 9).

EXHIBIT 9. COCONUT HUSK PROCESS FLOW CHART

rubbre€d pads, rbor bozidt

(30%)

V.ffi,%^D!si(70%)

E --.+ Forcsr Nucorr@ H.d o0[!rc,Aenculurc'60|'cour$s

It is worth noting that the'mainstream market'already uses products from coconut husk, The internationalmarket is relatively developed (See Exhiblt 10).

EXHIBIT 10. I ' IAIN INTERNATIONAL PRODUCTS ANOMARKETS FOR BROWN FISER 3

ffi

3 Apprcpiate T€chnology Internarlona . cacont con Pncessing In rhe Philbpines. An Analysis a rhe sub-sectat. Edired a.d Fatnat-

Data from the Internet shows that market sizes for various products range frorn US$400 rnillion a year(market for coir lrubberizedl) and US$90 million a year (market for coconut peat.)

At the moment, 60 percent oF the lnternational supply comes from Sri Lanka. Thus, there is much moreroom for market penetration, particularly in countries where the Phjlippines would have an advantage interms of distance and transportation cost.

In realiry, the Philippines has already started exporting products from coconut husk. As a non-traditionalexport, dernand in the internationalmarket For coconutfiber and thatofcoconut dustappears to be growingExhibit 11 shows the consistent increase in coir fiber exports and fiber dust exports from 1994 to 1996

It is clear that there is a lot of promise forthe coir and dust sub-sector5. Translating this potenual into actualdemand is the role of the development entrepreneur,

EXHTBIT 11, EXPORTS OF COCONUT HUSK-BASED PRODUCT9 1994-1996 (VOLUME IN MT, VALUE IN FOI US$)

Coir Fiber Exports

1,200,000

E 300,000

I oo,ooo,! 200,000

7994 1995 1996

tl--usTRr Ka sERrEs oF 1e (ctfED lN PAscRE , 1ee3)

JUBOKEN: AN .IMPORTANT ADVENTURE,

The EntreDreneur

The instrumental figure in the start!p of organizations is the entrepreneur. They are the unique breed ofindividuals who possess the uncanfy ability to identiry opportunities and have leadershlp qLlalities thatinspire individlals to realize the potentials of the undertaking.

The eirtrepfene!r in this project is Dr Justino Arboleda, or"Bo'; as he is popularly known Dt Arboleda wasborn in Gulnobatan, Albat on April 14, 1950. He is married, and has a grandchild, through his only son

For forma educatlon. Di Arboleda graduated from Tokyo Univefsity with BS Agricultura Engineering Heobtained his masters degree !n Agricultural Engineering from Tokyo University as well. He finished hisdoctoral degree in Bicol University.

Dr. Arboleda taught at Bicol Ufiversity starting in 1981 and rose from the ranks to become Dean ofthe BicolUniversity's College of Agriculture (BUCA) from 1s87 to 1994.

The Birth Of The Enterprise

His stint at the university provided Dr Arboleda opportunities to implement projects supported by local andinternational agencies. One such undertaking was a research project on poverty alleviation where adecorticating plant was piloted as a means of alleviating poor living conditions in an area.

Part ofthe project strategy was to pass on the technology to cocorut-producing communities through theircooperatives. Unfoftunateiy, governrnent agefcies and fiaancing institutions that were approached by Dr'Arboleda did not believe that the oroject was feasible.

Fiber Dust Exports

3 60,000

! +o,ooo

? 20,000

1994 1995 1996

I

He even received comments to the effect that academics do not put their money where their mouth is, i e,people in the University deveJop technologies and ask others to finance them, yet they themselves wouldnot invest their own money in these undertakings.

challenged bythe cold response, Dr Arboleda resolved to prove that tech nologies developed in the universitycould be made into viable business ventures, thLls, bankable.

He fied a leave of absence and began his pilot coconut fiber factory naming it the JUBOKEN Enterpnses

The choice of the name is an interesting story in itsell Ju in Japanese means important, and boken,adventure, Also, JUBOKEN is a combination of syllables from the names of Di Arboleda's family rnembersJu is for his wife.lulie, Bo, from Dr. Arboleda's nickname (actually the second syllable of hls family name),and Ken ls his son's name.

Mil€stones Of The Enterprise

As with many of the relatjvely successful enterprises, several challenges had to be overcome before DrArboleda was able to discover his winning strategy

The startuD vear in 1994 was a dilflcult period On the demand side/ the market was oligopsonistic, i ethere were very few buyers, The product being purchased was limited to bale fiber

over time, Dr, Arboleda was able to develop new product lines with higher value-added and to penetratenew markets, leading to the enterprise's turnaround and subsequent growth.

In 1995, BUCAS success with irrigation projects got Dr. Arboleda hired as consultant for the G'fz in anirrigation project in Chiang l4ai, Thailand. This work brought him also to Germany where he was able tocontact an irnporter ofcoconut fiber and geotextile nets and fascines and to buy fascine-making equjpment.

That same year, JUBOKEN starting manlfactudng fascines, eventually exporting them to Germany andJapan.

JUBOKEN continued to engage in experirnents. In 1996, it tapped BUCA students doing their thesis test thestrength of coconut fiber twines, and to create new and improved products.

JUBOKEN made a breakthrough in the local rnarket in 1997 when it closed a contract with FiFEstate, a localreal estate developer (although the experience was "not good") In 1998, it continued to expand its localmarket.

Finally in 1999, a joint venture with the Foundation for a sustainable society Inc. led to the creation oftheCocoTechnologles Corporation, Inc. (COCOTECH).

Tor,vards A Multi-stakeholder Venture

JUBOKEN was oorn because of a commitment to alleviate poverty. But it was also Di Arboleda's obsessionto prove his critics wronq that sustained him through the difficult years

As the business began to grow and new opportunities opened, the company obviously needed new capitalto increase its inventory level. New equipment had to be brought online to increase its capacity to meet thisdemand. ItJBOKEN needed large amounts of capital.

Di Arboleda considered going into a paftnership with big business, but he felt that its corporate valuesystems might not be compatible with his. He found himself more comfortable with an institution such asthe Foundation fora Sustainable Society,Inc. (FSSI), which was promoting enterprisesthat had developmentaland business objectives.

In 1999, JUBOKEN and FSSI cametogether and formed a joint venture company known as Coco Technologies.^rn^r,ri^n Thi< in<tii,ti6n <ptue< es an an.hnr entprnrise in a network of enterorises in the coir industrv,

lI

II

Thus, from being sole proprietors, Di Arboleda went on to help create a structure that wlll gear itsef up toplay a signiflcant role in the industry

The differentiation in roles and functions as envisioned among the stakeholders are as followsl cocotechiiteicharge of devetopment of products and technologies, the development of both local and internationalau *"t , u-na *o.ontLcting orders to producers. JU BOKEN fu nctions as a consolidator of finished prod ucts,

anO iJorig *ith aornt-ity e;terprises, it produces the items ordered FSSI'S role is to provide financing for

both working capital and equiprrent

Thus, from a sense of rnission and pride, Dr Arboledab motivauons metamorphosed to lnc lde the need to

expand markets, become more efflcient and competltive, and be financially sustalnable

Indeed, JUBOKEN Enterprises has been an important adventure for Dr Arboleda

DESCRIPTION OF PRODUCTS & PRODUCTTON PROCESSES

FSSI has several criteria in supporting projects. One is thatthe project must be ecologically sound Essentially,this means that the project does not harm the environment

Another criterion is thatthe project must be community-oriented Thjs means that the-project must be ableto serve or benefit the people in the community. Concretely, this may come in the forms of livelihood oremPloYment generation.

The succeeding sections describe the dlfferent producis and how they are produced

Geotextile Nets

Geotextie nets are used to control erosion in slopes and riverbanks How it is produced is described inExhibits A to D.

Exhibit A. Summary of the Production Process for Nets and Fascines Plant Level

ProductionDecorticating Process

Geo-Textile Net Prodn

Fascine Prodn

ActivityNut CoilectlonDecorticatingTwiningWeavingFascine"l'4aking

EQUIPMENT4-tonner truckDecorticating MachineTwining lvlachineLoomFascine-Maker

Exhibit B. Decorticating ProcessStep 1: Coconul husk is gathe'ed and derivered lo the p-ocess '1g plalt'S'ep 2: The coconur husls are praced insioe i"e oecoficat rq machine'ii"i s, rn" f,r.t, u|," teparate; by the machine jnto cocopeat (70%) and into long cocofiber (30%)

Exhibit C. Twine Making ProcessStep 1: Fiber is attached to a spinning wheel. The spinnlng motion creates the twineitep 2: Twiners contlnuously add fibers until the cords feach 11 meters in lengthStep 3i These are then spun together to form a hvine.

Exhibit D, Erosion Control Net Making ProcessStep 1r Cocofiber twines are placed on a loom in preparaUon for weavingStep 2: Cocofiber twines are woven horizontally in accordance to the desired mesh sizeStep 3r Cocofiber nets are then rolled into lengths of 1 x 50 meterscl^^ a D^ll6/ do^rcvrilF nFf< arp nrenarFd for deliverv.

What makes this project specibl is that, in the production of nets, many households are given livelihoodactivities through the twining and the weaving process.

Organic F€rtilizer

AboutTopercentoftheoutputofthedecorticatingprocessiscoconutdust.coconutdustorcocopeatisanexJttent irowing medium, l4ixed with other materials, iL can be made into organic fertilizer. cocogreenioiop"ut

-s"u*"iO Pellet Fertilizer is composed of coco peat, red clay and seaweed, mixed in a fertilizer

blend and pelletized, ready for distribution in the market (Process illustrated in Exhibit E)

Exhibit E. The Fertilizer Production Process

Process activity EquipmentFertilizer Production l4ulching Hammermill

Mixing l\4ixerPelletizing Pelletizing f4achine

stitched Fiber-based Products

Other produds are being developed from stitchedmats with grass. The production process is shown

fiber These include plant liners, fiberboards, and fiberin Exhibit F,

Exhibit F. cocofiber Mat Making ProcessStep 1: Loose cocofihers are placed insioe tLe stitching machinesteD 2r Cocofiber is flaEened, then stit(hed and compacted togetherStep 3l The output is cocofiber matSteo 4i The mats are cut according to the product.

PROJECT RESULTS

SloDe Protection

Geotextile nets are useful primarily for preventing erosion in slopes, partlcularly useful in elevated areasJieioy tnreateneC witn er;sion. JiJBOKEN Enter,rises has tapped this ma*et, serving various firms withdifferent lines of business,

we take a look at Belle corporation's Taga)'tay lvlidlands project and estimate the costs and benefits from

tbe tecnnology,

Belle corporation is a high-end residentialand leisure resort in Tagaltay, a couple ofhours'drive from l4etroManila. li currently has two phases: the Tagaytay Highlands and the Tagaytay l4idlands'

The Tagaytay f4idlands Golf Course was to be formally opened in April 2000 with no less than the P'esidentotthe Fnilpiines as Cuest of Honor for the inauguration. Unfortunately, construdion was delayed becauseoi iontinrJ,lt ero.ion along the slopes of the golf course The problem covered about four hectares of thegolf course. Grass and plaits were washed out everytime it rained The opening date approached with no

solution to the Problem.

Several options were explored. Hydroseeding at PhP50 [Us$1] to PhP80 [Us$1 60].per square meter costwas not viable as the seeds were washed out constantly due to the rains. The non-biodegradable te.ramat,

hDan n6r Ro <n":ra hAtar wr< ndt ln.allv available. Coco oeotextlle nets, which

was available locally at PhP40 LUS$o.80l per 50 square meter, were thus considered. tJse ofthe nets offeredother advantages. It is biodegradabie and sourced locally, thus helpful to the local econorny.

It became apparent that coconut nets offered the most advantage for the corporation. The best advantage,though unquantifiable, is that the installation of the nets enabled the company to meet its scheduledopenrn9, afd save customer and investor goodwill, and in the process, the company,s reputat on.

Riverbank Protection And Rehabilitation

Fascines help prevent the erosion of riverbanks and, is an aesthetic alternative besides.

N4any exarnples of fascine projects are to be found in Japan and Europe. In the philippines, a prototype isbeing implemented along the Sagumayon River in the Bico Region, a river so polluted lt was classified asclass-D iver before the project started.

A year after installation of the fascines, not only were the banks of Sagumayon River more protected,poilution was reduced and the river moved up to a higher level of classification.

The Canaman River Ecosystem l\4anagement project is a project of the Local Government tjnit of thelYunicipality with funding from the Worid Bank. A benefit-and-cost analysis of the project reveals thatdamage to crops due to flooding, worth about Php13.7 million IUS$274,000], was avoided, for a total costof only PhP4.7 mill ion lor US$98,000] * PhP2.5 mill ion, about US$50,000, for bio-engineering wofks andPhP2.4 million, about US948,000, for a bamboo plantation. Other beneflts for the ecosystem include theretention 0f a9ricultural and, increase in fish stock and fish catch, and the restoration of fiver oualitv.Improved Plant Growth

Cutflo$/er growers have become major users of coconut peat. It has been shown that plant grows muchbetter on it than on other media, even on peat moss.

Field tests on vegetables, rice, and corn have also shown encouraging results, Results of the field tests ofthe coco peat-seaweed fertilizer reveal that rtce treated with coco peat fertiizer resulted n an increasednumber of tillers, and greater yields. Vegetables treated wjth the same had bigger leaves, grew faster, andgave higher yields. Exh bits 4.5 and 4.6 show the effects of these Drodlcts,

LESSONS LEARNED

ON THE USE OF WASTE MATTER

This is a concrete experience in transforming waste mattef into products that have high value not only inmonetary terms, but in environmental terms as well.

To this day, copra production is the main economic activity in coconut areas, where most of the coconuthusks still end up as waste material.

Ir_onically, revenues from sub-components ofthe coconut husk, i.e., coconut peat and/or coconut fiber, rnoreoften exceeds the income derived from the primary product, which is copra. This is true especially as thevalue of copra has not risen in the world market.

ON ENVIRONMENTAL REHABIL]TATION PRODUCTS

As awareness levels of the massive environmental problem have dramatically improved over Ume, thecorresponding market for environment-friendly products has likewise grown. With this trend, manufacturersare scrambling to develop products that will satisry this demand.

The products ofthis project are not only environment-friendly in that they utilize waste, while the productsthemselves serve to rehabilitate and protect the environment (See next section).

As such,.increased sales and. acceptance of the products can only mean more areas rehabiritated andProteded.

O N 1,4 U LTI - E CO S YS TEM A P PL I(ATIO N

Another feature that is quite unique to this case is the versatirity of the products produced. For instance,coconut peat when used as growing medium has great potential for both croplands and the uplands. Theprimary userc so far are producers of high-value crops such as cutflowers.on the other hand, coconut fiber, when woven into nets, are anti-erosion devices for the slopes in theuplands. when it is compacted into fascines, it is usefur for erosion contror in riveroanKs as mangrovereforestation when fiber is stitched, it is used in mattresses in urban and rurar househords, as we as in theupholstery of luxury cars.

EXTENSIVE LIVELIHOOD GEN E MT]ON

Apart from its value to the environment, JUBoKEN has made a direct impact on the househotd tevel in terms:l !l1l!::9- S.Tra,'o" and rs consequent pTovision of income, This, however, is;p;;ific to the productionot oeotext te nels.

oep€fding on the demand, the nurnbef of people that can be reached is qurte remarkabre, In this casestudy alone/ livelihood has been generated for over 600 people. what is even more remarkabre is thatincomesderived are much higherthan what cocon ut_ based househoids usually derive from copra procuctrof,SIMPLE| APPROPRIATE AND REPLICAELE TECHNOLOGY

what is most innovative in this venture is that the production process is relatively simple/ rt is vi rage-based,and is highly repiicable.

]:li:r::.!,*g:*j: r Bicol could very easily adapt to the process because of its simitalty to the processesuseo In pr00uctng aoaca twines and other handicrafts. The equipment needed is also very affordable,POTENT]AL IN DUSTR Y. LEVEL IM PACT

Il."_?j:l!.1.]ip"S "tJUBOKEN Enterprises extends beyond the tocat communities where it operates andDeyo_0 tre sttes wrere the producL5 are installeo.

l4any people have begun to label the coconut sector as a sunset industry and this is not without basis. Forone, copra production and their prices have been unstable due to natur;l calamities such as typhoons andchanging weather patterns such as the El Niffo. Likewise, the total area planted with ;;conuts has decrifeddue to the rampant cutting of the coconut trees for rumber studies have shown that coconut-dependenthouseholds are among the poorest in the counrry rooav.

With fhe development of.new coconut prodLtcts that are nore rcsponsive to the growing probtems of soilerosion and low crop productivity, there seems to be new hope for ihe coconut se;or The sector can serveto renew and rehabilitate the various ecosystems in the coconut areas, and likewise provrdes new andhigher sources of income.

Given coconut's many new potentials, it may not be long before this.tree of iife, is rediscovered.

PHILIPPINDS

Ayala Foundation's Solid WasteManagement Program

By lvlanolita Gonzalesx

Garbage, garbage everywhere, but not a dumpsite in sight. This may well be one of l4etro lvlan la's worstnightmares as people generate more waste than they can dispose oi

The solution may lie on people lending a hand to solve the problem ln the clty of N4akati, the Philippines'business and financial capital, the Ayala Foundation Incorporated (AFI) has launched a LlniqLle experimentthat invokes corporate social responsibility to encourage business establlshments to manage waste in theirown backyard.

Throlgh its Solid Waste I'lanagement Project, Ayala Foundation trains firms, offices and commercial cantefsto segiegate their garbage, The project has a social component as well Recyclable wastes are "donated"toteams of segregators, who sell these to j!nk shops.

By end-2000, participating establishments succeeded in cutting dowf the volume ofthelr trash by about 30percent, The project has also become a major source of income for formerly jobless segregators,

Plans to replicate the program in Cebu's buslness park have been finalized, and in l4akati, the fo!ndation iseyeing to implement the project in buildings currently under construction

"lt may be easier to run the program in new buildjngs," says Aurora Tolentino, AFI executive director "Wecan wdrk outthe details ofthe project mlch fasterthan in existing buildings. We can sellthe program to ihewhole of I4akati if all establishments say,'we're an environmentally consclous set of oflices ' RcBc's newestbuilding is nearly complete and they've asked us to corne in We said,'Yes, greatl"'

THE GARBAGE CRISIS

As early as fo!r years ago, a study jointly conducted by the l4etro Manila Development Authority and theJapan Internationa I Cooperation Agency (l\41\4DA-IICA) warned thatgarbage disposalwil hitcrisis proportionsby late 2000 or early 2001. This projection was based on the assumption that lvletro Manila's major dumpsitesin the late 1990s. the Payatas dumpsite and the san Mateo sanitary landfill, would soon have to be closed

At end-2000, the assumption was proven true. Payatas closed in mid-2000 after mountains of garbagecaved in on a comrnunity of scavengers, killing more than 600 waste pickers, among whom were chidren.Scores are believed to still be buried under ions of smoking trash.

The San f4ateo dumpsite was closed on December 31, 2000 San l'4ateo's local government and residentshave closed ranks to make sure that nobody smuggles in trash

Land availablefor dumpsites has become scarce as provinces around l4etro f4anila have become increasinglyurbanized. under pressure from constituents and wary ofthe threat of massive local pollution, localgovernmentexecutives have turned down Ivlt'4DAt request to absorb the metropolis'wastes, although this would havemeant substantial revenues for them.

Garbage disposal isthejoint responsibility of two government entities The local government units (LGUs)handle discharge, collection and transpoft of garbage. The MIVIDA is responsible for final disposal andmanagement,

csl w2< thF n.F<Fnrdr & rer.urce ne6on lor the

The [4[4DA has been negotiating for the go-signal to ship f4etro f4ani]a's garbage to an abandoned coalmine, the five-hectare Semirara Island in Antique, about 36 hours by boat from N4etro Nlanila. The provjncialgovernfirent of AntiqLre/ a ong with nongovernment associations in the surrounding provinces, opposed themove. Even the government's tourisrn officials feared that turning the island into a dumpsite would pose athreat to the ecosystem and livelihood of thousands of the island's residents. Semkara is a protected birdand turtle sanctuary. Also, Semirara is but 40 kilometers away from Boracay island, an internationa touristdestination whose resorts would be threatened if toxic wastes started washing up on their shores.

lvleanwhile, garbage in lVetro lvlanila conUnues to piie up.

NO MINDSET FOR PROPER WASTE DISPOSAL

The 14l\4DA-JICA study showed that in 1992 l\4etro lvlanila generated an average of 5,345 tons of garbageper da, or a per-capita generation rate of a little over ha f a kilo of so id wastes per day. As of 2000, thevo ume oftrash has risen to 6,000 tons per day. The study projected that per capita generation wil increaseby 2 percent each year. This means that 2010, l4etro l4aniia's garbage w ll doLrble to 10, 312 tons per day,

lvlost l4etro l4ani a res dents sti I see litt e value in trash. It has been an old practice among households toset aside old newspapers afd glass bott es for sale to ambu antj!nk vendors, The rest they throw away.

By a nd lafge, recyc ing has been u ndeta ken by the informa sector a nd the poorest sectio| of the populatio n,for whom garbage has meant a soufce of livelihood, Much to the government's ernbarrassment/ scavenger!villages have sprouted around all major dumpsltes, from Smokey f4ountaln (closed in the early 1990's) toPayatas and san lvlateo, Scavengers and ambulant junk vendors sell the recyclab e refuse to.lunk shops/which pass these on to plasiic manufacturers, paper mills and beverage planls.

The I\4lvlDA-JICA study noted that 47 pefcent of lVetro 14an la's garbage cou d be recycled. However, actualwaste reduction thro!gh recycling accounted for only 6 percent oftotalwastes generated. The stldy furthefnoted that the percentage of paper and plastics was very high compared lo other developing co!ntries.

The M[4DA-.]ICA study showed that dry recyc ables conslsted of nine componentsr paper, plastic, grass andwood, metal, textile, glass, leather and rubber, ceramic and stone, and others (see Table 1). Kitchen wasteaccounted for 45 percent of the total, With appropr ate technology, the latter could be converted lnto usefLrlproducts slch as organic fertilizer.

raBtE 1. NrNE coMpoNENTs oF M ETRo It has not been easy to convince residents to follow a system forriiril-A,d onv neivtirir; wAsiE

- waste disposal. In lvletro l'4anila, garbage is not only an ecolog calproblem. Waste management comes up against cu t!ral bariers aswel . Clean iness has not been one of Metro [4anila's virtues, nof hasbeen obedience to lts laws.

Despite an anti-littering law, most streets, markets and public placesare ittered with food wrappers, cigarette butts and various kinds ofplastic paftly because garbage cans are seldom provided in pub icplaces. In places provided with garbage receptaces, because thehablt of using trashcans is not ingrained, most people still tend tothrow lltter anywhere.

The IYPIDA-JICA study revealed that street sweepings average 10kilograms per kilometer per day in 14etro l'lanila. About 18 kilogramsofsolid waste per kilometer are cast into rivers, creeks and waterwayseacn oay.

Because of poor discipl ine among the populace, and a iack of wil onthe part of local governmeft units to enforce laws on sanitation,

Glass

early campaigns on proper w?ste dlsposal were conflned to a very basic message: throw trash only ingarDage cans.

In 1999, the I,4l\4DA passed Reglrlat ion No.99-004, which required al l househoids and establishments tosegreqate their garbage under pain ot nonco\\ec\on tor iai\ure io comp\y.

-ihe MMDA requ\a\on provided tof

segregatlon of wastes into five color-coded bags.

The move was strongly opposed by residents who thought the gu delines too tedious and labor' lntensve.The I\41\4DA backed down and Regu ation 99-004 was re egated to imbo and suspended lndefinitely, exceptin some towns where local ol lcials had the poliUcal wil to woo the public's cooperation as wel as punishviolators.

PROGRAM HISTORY

In 1993, Ayaa Foundation aunched its Solid Waste l4anagement Project as a component of its l4akatiDevelopment Prcgram. The project sought to "coordinate the efforts of the government, business sectorand NGOS n managing the eco ogical problems in I\4akati, focusing on solid waste management (SWI\4),"

The project was funded by the United States Agency lor Internationa Development (USAID) and wasinitially carried out ln 18 poor vilages in I,4akati where the foLrndatlon had ongoing projects in partnersh pwith people's organizations. The iolrndation's other projects lnc uded integrated development prograrfs andservices such as hea th, livelihood, and projects aimed toward the strengthening and organizat on of thec0mmunrty.

The environ menta I component was hand ed by Suzette Pido, the foundatlon's skilstraining program manage[It seemed natural that the project be assigned to her. She had a keen interest n enviTonmenta lssues.

The project encouraged the communities to sort out their garbage afd to keep any throw-aways that coLrldbe recycled. Throlgh seminars, peop e were made aware of the gravity of the garbage prob em and wereshown how to do solid waste rnanagement, partic!larly waste reduction through segregation. People wefea so made aware that they cou d earn addltiona income From recyciables.

A mid-term review ofthe project showed that its objectives were not bei|g met. People n the communitieshad been selling glass bott es and old newspapers long before the project came in. Besides, there was lttleto salvage from garbage n poor cornmunities as these were mostly kitchen wastes, Perhaps, the projectwould be better imolemented elsewhere.

The solid waste management pfoject was redesigned ln 1995 with the adoption of h/'/o new strategies. Firstwas the c osed loop system (CLS), which invoved the transformation of products for the lse of wasteorlglnators. Thls allowed beneficlary barangays to recycle waste and create higher value products. Second,was the donor-benefic ary approach, wh ch was envlsloned as an eco-enterprise, whlch linked resource-richgroups with poor barangay rnembers, Working on the premlse that one's waste may be a resource toafothet segregated waste for recycling finds its way from resource rich donors (bLrslness estab;shments,residential condomlniums and rich vilages) to resource seekers (unemp oyed and out-of-school youth inpoorer villages in lYakati).

The donor-beneficiary system becarne the project's mainstay.

THE PROJECT SITE

Nlakatiis lvletro l4anila's premiere city, and lts business and financialcapital. It plays host to the headquartersofforeign firms and the Philippines'top corporations, the Philippine Stock exchange, prirne banks, five-starhotels, embassies, plush condominiums and posh vlllages. At the heart ofthe city is its sprawling cornmerclalcomplex that houses malls, rows and rows of consumer shops, movie theaters, fastfood ouUets and finedining resta!rants.

While l4akatl reeks of class, it is also one of l\4etro f4anila's biggest producers of trash, Its population of lessthan half a mil ion people swells by daytjme as tens ofthousands come here to work, do business, dine andshoo.

The project area shifted to IVakati's business and commercial d strict where offices generated tons of usedpaper, and fastfood shops discarded heaps of recyc able plastic.

The waste composjtion survey of 1997 shows that of al the cities in l4etro lYanlla, I\4akati generated thehighest vollne of waste at 0.44 kilograms per capita per day. Restaurants produced 41.7 kilograms perestablishment per da, and lnstilutions, 101 kiograms each per day. The dry also contriblted h gher thanaverage rates in the following categoriesi high-income households, restaurants, other shops, institutions,and street sweepings (see TabLe 2).

TAaLE 2: WASTE GENERATIoN RATE EY NINE CATEGoRIES Of GENERATIoN souRcEs

Cateoorv Unit QLrezon C tv lVakati PaTariaque AveraqeHioh income G/person/dav 465 553 483 500l\4 ddle ncome G/oerson/dav 449 432 473 451Low tncome G/person/dav 340 344RestauTant G/shop/dav 1s,824 41.732 6 939 21 ,318Other shops G/shoo/dav 1.688 2 .150 1 .618 1 .818lnsti tut ion c/Derson/dav 101 57 72lvlarket G/shop/day 4,065 3 945 13,774 7 261Streelsweepinq G/km/dav 10.560 19 ,010 10 742R ver G/km/dav 41,5s5 3,595 9.035 18.062

sotintE: ||Ac, cctjlDuoEa ar nat, 1997

THE SOLID WASTE MANAGEMENT PROCESS

AyaLa Foundatlont Solld waste I\4anagement Project seeks to increase awareness in the need to protecttheenvjronment and to encourage individuals to do so through waste reduction by segregation and recyc ing. Italso provides a venue for business to express corporate social responsibility by managing its own waste andproviding jobs to poor comm!nities (see Exh bit 1i Vision, Objectives and Goa s).

The Solid Waste 14anagernent Program espouses the idea that waste d!mped ln landfils can be signifcantlyreduced lf people salvage recyclable ltems and throw out only trash that no one else can convert into usefulproducls.

The projects relies on four key actors, each of whom are indlspensable in the waste management process.On one end are the donor companles and tenants who would segregate recyc ables such as paper andplastic and donate these for recyc lng. Or1 lhe other efd are the project beneficiaries or segregators who dofurther sorUng of the recyclable ltems and seil these to lunk shops. Ayala Foundation serves as the inkbetween donors and beneFciaries. It coordinates the proiect and ensLrres continuing educaUon and trainingon so id waste management (see Exhibit 2r Roles and Responsibilities).

Wh ile the foundaUon is the key mover in getting thlngs started in a buiding or estabLishment, the responsibilityofgetting the project going falls on the buildlng administration, more specifica ly its administrator along withthe board of directofs/building management to which the adminlstrator reports.

To facilitate segregation at the office and bullding levels, the building administration is encouraged toprovide trash bags, at least two separate depositories for wet and dry garbage, and a space where thesegregators can sort out dry recyclables for junk shops. The blrilding administration is also expected toovefsee comp jance once the arrangement and systems are in p ace. once they unite on the project, Ayala

Foundation, donors and beneflciaries put into effect a rnemorandum of agreement (IYOA) The l'4OA laysdown the details of the project, which may vary from buildlng to buildlng.

Aya a Foundation conducts odentation seminars on Solid Waste lYanagement for bulldings and tenants whodecideto implementthe project. -The orientation covers basic principles in solid waste management, clarifiesthe roles that tenants/donors would play, and laysdown systems and prccedures for properwaste segregationand disoosal. Seminar oarticipants come from offices and include administrat on offcers and jarlitors- Forresidentia condominiums, unit owners and domestic helpers are enjoined to attend

Atthe same time, the foundation trains and recruits segregators with the helpofpartner people's organizaUons.The segregators are mostly job ess or underempLoyed residents They are encouraged to share an interestin the project's environmental goals, and to pract ce what the project preaches in their own homes andcommunities. Community organizations recommend these indivlduals to the project.

Segregators are assigned to specific buildings and work ln teams The nllrnber of segregators per build ngdeoends on the volume of recyclab e materials available in thelr area ofassignment Under an afrangementmade in consultation with the PO's, segregators sell whatever they collect to the jL.lnk shop of their choiceTen percent of total pfoceeds goes to the segregators' organization and anothef five pefcent is shared withthe bL.ridlng's jantorial pool. A portion of sales is used to cover transportation costs, snacks and otherexpenses. The balance is then divided eq!ally arnong members of the seg regators' tearn This is their take-home Dav,

once the project is underway, representatives of the donors, the foundation and the segregatofs meetregulafy to address problems that may arse. Ayala foundation monltors and evalLlates the project on amonthlv basis (see Exhibit 3: Mechanics of Implementation).

PROJECT COORDINATOR

Ayala FoLrndation isthe socia arm ofthe Ayala Group ofCompan es The name Ayala has become synonymouswith the rise of l4akat from a swamoland to a word-class urban centet The Ayalas, one of the oldestbusiness clans ln the Philippifes, made f4akati their base and helped bLrild its infrastrlcture

The Ayala Group is composed of 21 companies and is one of the most actlve proponents of the concept ofcorporate social responsibility (CSR). Ayala FoLrndaUon Inc. initiates CSR programs for the group, in ine withits missiof to "contribute to the eradication of povety by addressjng socioeconomic problems, includlngenvironmental lssues, through an integrated approach to development "

DLrring the project's earLy years, when exterfal funding he ped defray project expenses, severa ln the AyalaFoundation staff were hired ar]d assigned to carry out the projecl When funding support ended, only oneamong the staff, Adel Licos, remained to coordinate the program. She relies on a network of partners in theimplernentation ofthe scheme. The Ayala Property I\4anagement Corporation takes charge of implemenunqthe scheme in the Ayala offices and buildingsi office and bullding administrators of donor buildings andcompanies oversee implementatlon in their respective buildlngs and companies; janitorial services assist inimplementation and monltoring. Recycing companies have been tapped for colection and processing ofrecyclable wastes, Likewise, the Ayala Volunteer Corps is on hand for training and orientation on solld wastemanagement and the lVakati NGO Netlvork takes care of tapping community beneflciaries or segregatorsFor enforcernent and inspection purposes, the Barangay San Lorenzo Council ls on hand

3.YEAR IMPLEMENTATION (1996.2000)

Since 1996, the donor-beneficiary scheme has focused on buildings and cornmercial centers managed bythe Ayala Property lvlanagernent Corporation (AP[4C). As pat of the Ayala Group of Companies, AP[4Cshares the groupt philosophy of corporate social responsibillty and was expected to throw its fu I supportbehind the program. The APIYC manages 21 establishments. of whlch 11 are residential condominiums, 6

Each type of estabrishment has a dirferent waste profire, office buirdings generate mosuy paper and otherdry wastes and residentiar condominiums, rnosty kitchen and assorted;aites. cornmercral centers, whichrent space to a variety of business establishrnents, generate the biggest volume of garbage ranging fromboxes, crates and other packing material, to leftover food, used pliitic utensils and-cups, ano atuminumsoftdrink cans.

Fastfood outrets are among the reading Sources of garbage, At Landmark's Food centet a oLrs Doy whosejob is-to segregate kash into four separate bins, descdbes his haul fof a typical lo_hoLrr day: 20 bags ofstyrofoam meal boxes; 5 to 6 bags of plastic cups, spoons and forks; 4 bags'aluminum softdrlnk cans;ind,30 bags of assorted garbage such as paper napkins, wrappers, corfee-creamer pouches (coffeemate);straw, and others. Each bag measLrres 1 ft. by 1.5 ft by 2.5 feet. Thrs is quite a haul, considering that the bu;ooys work area covers only 9 of the more than 30 stalls in the food court.

Theoretically it wourd be in the nterest of con.panies and buirdi'.g tenants to invorve themserves in wastefeduction. Space constraints and sanitation requirements make d;ily garbage disposil a must.cost is anothef consideration whle residentiar areas in lyakati ard ersewhere in N4etro r4anira get their9!rbage colected for free as part of goveTnment service, business establishments ano condominiums in9aKar nave to pay lor s!ch services. Waste disposal fees are built into the maintenance/administration costand each building pays a monthiyfee ofp10,0O0 [US$5O] to private waste management firms, Garbage feeifrom commercia centers are estimated at p5 mrllon iusgrOO,oool. In t4al,aii, g;rbage s colected byseveral or Vdte WastF nanagerrent f,rms, the bigqesl oi wFic- ,s G-een Ine.

Nine ofthe ll APMC-managed properties in lqakatijoined the dofor_be|eficjary scheme n 1996. Thesencluded the fol lowing:. Office Buildings: PSE Tower 1, 6750 Building, Ayala Life Building, FGU_Ayala Life Center. Residentia condominiums: 3 Salcedo place. 2 Salcedo place/ 1 Salcedo place.

9gmmercral Cente[ which Includes big ma]ls such as Shoelvlart, Rustan! Supermarket, Landmark andbtonefta' severar companies have arso donated used paper for the project. These inc ude canon [4arketing phi s.,Western lvlining Phi ., [4ani]a Cordage Company, and NEC Computer Storage Co.To recycle the styrofoam boxes and plastics frorn fastfood ouflets, Ayala Foundation has ted Lrp with po ystyrenePackaging Council, which picks up plastjcs and styrofoam for free.

PROGRAM UPS AND DOWNS

Ader Licos, Ayara Foundation coordinator for 50rid waste management, says that project perrormance andcooperation ofparticipating estabrishments vary from buirding to buirding. The degree oicooperation dependson several factors.

First, the buildinqs have different facilities and procedures for garbage disposal. In some buildings, garbage9:p:::*:ri1. :!9.f,9:""ugh Lo,a ow separate areas for wet ind ary galOage. rn othe; buitding s, ihere-ison y one oepos rory r0r wet and dry waste and building a new one would require financial allocalion by thebuilding owners.

se-cond, whire occupants observe waste segregation procedures after attending seminars, they tend to srackoff after sorne time Ayara Fo! ndation conducts repeat sem ina rs, but Licos ad& that buirding adm in istratio np ays a crucial role. n ensurrng thal the implementation i5 sustained and eventually institutiona|jzed ln theour0lnqs nouse rLltes and requ ations,

Buildings have dropped outofthe pfoject eitherfor the reason that the building adminishator racKs commtmentto the project, or because an administrator, who had shown enthusiasm f& the project, was repraceo.Licos notes that what it boirs down to is motivation on the part ofthe irnprementors. "Ifthere,s a will, ways.r. hF fnrn.l r^ .or rhi^nc ,-l^n6 \^16^. +a^.^,-

By year 2000, the waste segregation project was stil ongoing ln four buildings and the Aya a CommerciaCenter. Four other buildings had ceased its irnplementation. Three ofthe six segregator groups also backedout because the volume of recyc able waste was no longer sufficient to cover their expenses Sorting wasalso taklng too ong because waste was not bejng properly segregated waste

Nonethe ess, the va ue of recyclab es which were segregated, donated and sold increased from P141,756 85labout US$2,8351 in 1998 to P820,000 labout US$16,4001 in 2000 lncome from sale doubed each yearfrom 1998 to 2000, despite the decrease n the number of parUcipating buildings durlng thls period. Varioustvpes of used paper and cartons accounted for nearly 90o/o of all recyc able materials so d

Licos notes that except for waste paper, the vo ume of donated recyc ables has been decreasing Bui d ngtenants and maintenance staff have realized thatthe money to be gained from recyclables and were choosingto se I these themselves. On one hand, this indicates that buiLding occupants are actLla ly acUng in accordancewlth the project's primary objectlve of waste reduction throllgh segregation and recycllng. The downs de isthat the practice has resulted in decreaslng income for the segregators

Licos's main concern is the lack of nitiative and cooperaUon of some administrators lt is this which led tothe project! fal lure n some b!i ldings. An effective tool For monitoring compliance is anothef concern.

PROGRAM CHAMPION

While there have been relLrctant implementors whose invo vement was half-hearled, the project has had itsshare of champions as we L

. APMC

API4C's l4argie DuqLre has been a waste management advocate slnce the projectb early days Now API'4C'SsLrpervisor for residentiai buildings and its solid waste management coordifator, Duque has bullt the project'sobjectives into her work and responsibilitles as she moved from one position to afother within the frm

D!qLre admitted that initla ly, she had jojned the Ayala FoLlndation's solld waste managernent project onlybecalse the former program coordlnator was her frlend. Duque had her first hands-on experlence in solidwaste management when she was appointed administrator of 2 Salcedo, one ofthe residential condom niLlmsmanaged by AP|4C. The blrilding had waste dlsposal problems and the board of directors asked her to dosomething about this.

Duque emp oyed a cornbjnation of measures to convince tena nts to coopefate with the project. Th s includedlnformatlon/education measures, strlct monltoring and follow-up ofthose who failed to comply, and sancuons.

Aided by guidelines and or entatlon materials from Aya a Foundation, she conducted two separate seminarsfof b!i dlng occupants. The session in English was for the beneft of the unit owners The othe., which wasconducted ln Tagllsh (a mix of Fl l ipino and EngLlsh), was made mandatory for the househod help "Nosemlnar for the maids, no ID; and no ID meant no entry into the build ng," Duque sald

During the first months of the projects, Duque slpplied tenants with garbage bags, each of which wasmarked with stickers to identiry the !nit which the bag came frorn Her hands-on approach saw her one daypersonaly inspectjng the trash bags. She zeroed in on un its that consistently failed to comply !!ith segregationand personally instructed the household help n these units of how segregaUon cou d be properly and eas lyo0ne,

With the stickers, Duque reports that "compliance was at 100 percent in the first year' After that thetenants'interest waned 50 Duque conducted repeat semlnars for old tenants New ones were oriented asmey came In.

Duque says that education/lnforrnation has to be sustained. "Waste segregatjon takes a lot of work at waste

for a ll Aya la- managed residentia condomini!ms and API\4Ct waste managerfent coordinator, she succeededin making waste segregation rnandatory ln all Ayala-managed properties.

Whlle API\4C seems to have made solid waste rnanagement part of its corporate practice, it still relies onAyala Foundation to provide tlmely informatlon and educat onal materials, as well as to provide them wthsegregators.

. ACA

Llke Duque, Naty Francisco, consulting administration manager of the Ayala Center Assoclation (ACA), hasbecome a sold waste management advocate,

Francisco notes that before SW[4 was carried out in 1997, the slght and stench of garbage at the center'scollect on points spoiled Ayala Commercial Center. Francisco herself was doubtful whether the tenants, whowere members of the Aya a Center Association, could be convinced to follow segregation pfocedufes.

The association conducted odentation seminars for its nembers with the help of Ayala FoundaUon. Francisco,with Ayala Foundatlon's (Adel) Licos went on a door-to door campaign to convince members how impotantlhe p.ojecl rs. "ft r las enba'rassing aL I Tes, b-t we uad ro do i l ," she addq.

To g ve more bite to the project, the center's rnanagers also made use of circu ars in 1999 to remind itsmembers to follow an [4[\4DA regulation on waste segregation strictly. The association also solicited the he pof city author ties in ensuring compliance. The lvlMDAand Barangay San Lorenzo wou d enforce the regulationand set penalties for noncomp lance. Barangay San Lorenzo sends a person to do a spot-check. Violatorsare f ined.

Tenants ba ked atfirst but eventually complied, says Francisco, especialy when their unsegregated gafbagewas returned. "Now they see waste segregation is effectlve," she adds. The marked difference is apparentin Avala Center todav,

Francisco says the problem now is not segregation but coming Lrp with enough recyclab e plastic for thePolystyrene Packaging Company (PPC). PPC has pointed out that picking up plastic from IVlakati would notbe v able if it could not get enough volume. Instead of dofating recyclable plastic, the personne of somemember firms now sell these directly to junk shops.

. Canon Marketing Philippines & Kentucky Fri€d Chicken (KFC)

Waste generation can be quite easy, one the rationale becomes clear and it becomes part of the corporateslructure,

Canon I4arketing Philippines donates around 20 doub e-extra large (XXL) bags of used bond and shreddedDaDer from its two offices in l4akati to AFI once a month.

"The procedure is simple," says Anabel Reye, Canon purchasing officer and one ofthe foundation! contactpersons. "I bLry the trash bags (P500 a rnonth, or about US$10) and we place boxes for used paper in eachdepartment, usually beside the copying machine." !1emos to employees are also circulated to remind themto follow proper procedure ln waste paper disposal. The janitor collects the boxes once a week and putsthem temporariiy in storage, ready for pick up by the Ayala Foundation when enough has been gathered.

Asked what benefits Canon gets from the project, Reyel replies, "Nothing in monetary terms. The office paysfor our garbage collection and fees are fixed regardless of volurne of garbage. But we got involved in thepoect prlmarily to help peop e."

The practice was instituted in 1995 bythe formerowner ofData Graphics, which was later bought by Canon.Employees carried over the practice to the ne!i office, Canon began donating used paper to Aya a Foundationbeneflciaries in 1997.

Like Canon, waste segregation is part of a franchises of Kentucky Fried Chlcken (KFC). The KFC'G oriettabranch at the Aya a Commercia Center was the top awardee for waste segregat on in 2000.

According to KFC'S branch managers, the award has brought a sense of pride to the branch. KFC'S pres dentcame to receive the award during the Earth Day celebrations in December Aya a Folrndation's Licos saysthat the top award has become a coveted prlze. A eading lastfood chain, whlch came in third, is a ming forthe top prize ln the coming year

PROGRAM IMPACT

The project helped reduce the voiume of trash in partic pat ng bui dings. At the Ayala Cornmerclal center,garbage brought by tenants to three compactlng sites decreased by about 25 percent (about 15 cublcmeters per day). Figures from Greenline show that at present, it takes 24 hours to fill up three megapacksconsigned to the center (Each megapack measures 20 cu. m.) In the past, i t took only 18 hours to f l l upthese packs. Naty Francisco, the center's consultant for administration, says that waste segregation hasresulted ln a cleaner commercia centeI

At Tower 1, one ofthe donor buildings, segregatofs estlmate that they have recovered recyclable items from60 percent of lhe trash bags bro!ght down. Glenda, a Tower-1 segregator, notes that whereas n the past,"the deposilory would overflow with trash bags if Greenl ne fai ed to col ect... (n)ow, the depository doesn'toverfow even if Greenline trucks fall to come for two or three days,"

The project has provided segregators wlth a stable source of income. Accordifg to Glenda, thelr group earnsabout P13,000 to P15,000 [US$260 to US$300] a month, This translates to P3,500 IUS$701 month y foreach team member, which is jLrst a little less than a month's wage for a minimum wage earner in Metrol, laria.

Segregators in Towef 1 repod thatthelr monthiy incorne in the lasttwo years has decreased when comparedlo earn nqs in 1997 and 1998, when they earned about P18,000 to P20,000 [US$360 to US$400] monthly.This was due to the fact that offices and janitors have realized the income potential in selling recyclableItems to junk dealers themselves lnstead of donating these to segregators.

Glenda aments this decrease in lncome for segregators like her, bL-rt she welcomes the fact that tenants nowrea lze the value ol waste segregation and recycling.

There seems to be no indlcation that tenants have saved on garbage fees after they reduced thelr garbageoutplt. under present arrangernents, Greenline charges a fxed rate based on the number oftr lps made perday rather than on the volurne of garbage co lected.

EVALUATION

Whie the project has achieved its objectives to a substantial degree, an Ayala Foundation Report listed theFolowing dlfficulties encountefed in the course of implemenung the solid waste management prqect:. Acceptability of the concept by the buiding administration, tenants, employees and uUlity personnel

wh'. ' r-a^s aLes nto b"hdviord'c'ange and aoopt'onorr"e projecl. Budgetary considerations to provide for the needed parapherna ia (i.e. receptacles, signages, color

coded bags, garbage depositories, etc.). "Competition" among segregators and building and company janitors for extra incorne from recyclable

Tnatenars. Sustaining the interest and commitment of building administration in project implementaUon. Sustalning the interest and commitment of communib/-beneficiary segregators/collectors. Encouraging 100 percent participation of all buildings managed by APIYC. Developifg an easier way to do information and education campaigns. Developing a ess complicated segregation scheme.

The Foundatlons Rory To entino says that lt is sUll possible to come up with a less complicated segregationscheme. "YoLr have to make !t easier because lt has to be something that people want and not something sotechnical that an ordinary person would find hard to do; sornething that doesn't take much addltiona time,cost, or space. What we want ls for people to be environrnentally conscious."

Earlier evaluauons condlrcted by external consultants listed the followlng success factors:

The project has effectively matched donors and beneficiaries. Segregators who were already familiar Vviththe junkshop system were able to benefit from the ecological enterprise.

Ayala FoLrndation has had ample experience in environrnenta projects/ as well as strong linkage with otherAya a companies. The partnership that the foundation has buit with the Ayala Property f4afagementCorporation is a eading factor for sLrccess. Without APvlC, lt would have been less likely that the folrndationwou d have found cooperatlve donors.

Part icipating donor buildings used both sanction and reward to ensure cornpliance. Buidings have issuedrnemorandLrm circulars and guidelines on solid waste management to personnel and tenants as part of thehouse rirles. SancUons such as monetary penalties for noncompliance to the waste segregation schemehave been lmposed and at the same time, those who corfp ied were glven awards and lncentives.

SOI-ID WASTE MANAGEMENTI A CORPORATE CONCERN

The impad of Nletro l4anila's garbage crisis was fe I on day-one of the y€ar 2001. The bad news was thatthe San lvlateo landfi I closed on New Year's Eve and the I4[4DA stil had no alternative site for l4etro lvlan la'sgar0age.

The good news was that on the third week oi the new yeat Republ c Act 9003 was enacted lnto law by thePhi ipplne Congress and Senate. The law on ecological waste management made segregation and recyc ingmandatory.

At this time, Ayala Foundation! Executlve Director To entino sought the help of Elgene Gonza es, execltivedirector ofthe Foundatlon for a Sustainable Society, Inc, (FSSI). l4s. Tolentino, forrner chalrperson of FSSI'Sboard oF directors, told Gonzales that Aya a Land and other members of the Ayala Group of Companiesneeded help ln sett ng up a system for managing waste. FSSIs assistance was sought.

FSSI is a nongovernment orgafization (NGO) which suppofts development projects for poor people andcommunlty-based enterpr ses in rural and urban areas, lncluding programs for the environment. Sol d wastemaragement is one of its areas of concern and expettise.

Gonzales decided to tap the lnstitute forthe Develop ment of Ecolog ica I and Ed!catlon a I Alternatives (IDEAS),another group whlch FSSI supports. IDEAS is based in Cavlte and has been engaged in composting andother eco ogicaj projects since the late 1980s. At the beginnlng of 1997, it conceptualized and imp ementeda So id Waste [4anagemeft Project for the local government of Si]ang, Cavlte.

Representatives from ALI, AFl, FSSI and IDEAS discussed how to put in place a solid waste managementprograrn for lhe Aya a corporations. After a serles of meetings, the group agreed to launch on a pilot projectat the Ayala Commerciai Center. The spraw ing commerc al complex has approximately 200 tenant-shops,175 of which are fastfood out ets, which were the biggest garbage producers at the commercial center

The commercial center generated about 36 tons of assorted trash daily. "Trash from the commercia centerls premium trash and there are actual and potential buyers for these," said Ric Torres, FSSI program officerseconded to the project. Food waste and compostables are sold as pig s op to piggeries in and around l\4etro[4anila. Recyclers buy used paper, cardboard and assorted plastic and aluminum items.

Personnel of tenants at the Ayala Commercial Center sell recyc able materia s to "suki" (regu ar customer)n nk ch.ns rn aL nmFni their in.nme The lnfnrmai tride in re.v.lable iiFms has nartlv redU.ed the volLrme

ofhash atthe cornmercial centei Howevet neitherthe ACA management nor the owners of fastfood courtsformally approve the selling of recyclables. Thus, personnel lnvolved in this informal economy are waryaboltt sharing data.

THE PILOT PROJECT

In a memorand!m of Agreement, ALl, FSSI and IDEAS agreed on the following plan:

. To monitor and determine the volume of recyc able and cornpostable materials in the centet and

. To conduct training on solid waste management for the personnel of establishments at the Aya a Com_mercial Centet

These activities had a dual purpose. First, the waste profile would provide lnputs for a more concrete solidwaste management plan for the center Second, the training sessions will show tenants how to segregatetheir waste and thus, promptly help reduce the volume of garbage at the commerclal center-

Staff from IDEAS and FSSI were asslgned to be the lead implementors while the Ayala group (ALI,ACA andAPIYC) was tasked to ensure active participation by tenant-establishments/ and to provide the venue andother logistical suppod.

WASTE PROFII.E

The commercial center used to generate B0 tons ofwaste everyday, butthe volume dropped to 36 tons dailyafter Ayala Foundation and ACA col aborated to instltute the donor-beneficiary scheme and the speclalizedwaste collection agreement with PPCP. When monltoring first staded, the two private collectors, Greenlineand JAR, were collecting 36 tons of garbage a day.

Figures previously gathered by Ayala Foundation showed that food waste, compostable waste, paper andcirdboard accounted for most of the center/s garbage To validate this waste profile, FSSI and IDEAS staffmembers monitored the waste coming from the commercial center for six consecltive days. Trash bagswere randomlv opened and inspected at the dumpsite. The daily monitoring report tracked each tenarlt-establishmentb compliance wlth segregation procedures and the types of garbage they threw away

After a week, IDEAS and FSSI came up with a waste profile (see Table 3) The waste proflle revealed thatACA3 garbage consisted mostly of food waste and compostables (84olo), paper (20olo), and other recyclables(7o/o).

TABLE 3: WASTE PROFILE, WASTE PRoFILE, AYALA COMMERCIAL CENTER,2000)

Type of Waste Prcportion (%) Approximate Volume (bns per day)

Residuals 9 3.2Paper cartons 20 7.2Recyclabies Gtyro, plastict 7 2.5Food waste & comDostabtes 84 23.0Tobl 100 36,0

TMINING FOR AYALA TENANTS

Seven training workshops were conducted in April 2001 The training prograrn hoped to serve as a preludeto the formal installation of a waste management systemr stafting with proper segregation and disposalTrainers came from IDEAS FSSI, Ayala Foundatlon and APMC.

ALI, API\4Cand AcA provided the workshop venue and issued jnvitationsto the 175 food co! rt concessio na iresoperating within the commercial complex. Paltlcipants ranged from supervisors to direct waste handlerssuch as janitors, dishwashers and cleaners at the food court. Each one-and-a-half-hour sesslon tackled thebasic pJinciples of solid waste management, the salient provislons of RA 9002, and the designated disposalareas for compostables. Trainers introduced four categories to guide segregation: residuals, food waste,compostables and specialized waste such as slyrofoam and poiystyrene.

Accourd ng to FSSI'S Torres: "The workshops focused more on the'how to's,. We put assorled trash on atable, plcked an item and discussed how tt shou d be classifled.,,

Torres noled that because of previous trainings conducted by Ayala Foundat on, lhe trainers did not have lostart from scratch. "Out of 15 participants in a session, 5 or 6 said they had attended AFI traifings on so idwaste mana9ement. These pafticipants tod usaboutthe practicalproblen'rs theyencountered in implementinqproper segregation and disposal. Their feedback enrlched lnteract on. There were basic and valid auestion;like, 'what do you do with used cooking oil?, At present, this is just thrown down the drajn.,,

Torres added lhat unlke previo!s fears that tenant establishrnents might cornplain about having to sendtheir peop e to the workshop, train ng participants, ln fact, weicomed the chance to reirrn aooLlr oToDersegregallon. "The presence ofAPI4C, ALI and AFI rep resentat ves d uring oursessions he ped a ot. fle sa d.'APPIC explained the reason for the project, while Ade ofAFI discussed the donor-beneficiarv orooram. Theparticipanls couldn't just say no because API\4C and AFI served as convenors.,,

RESULTS

In a report to Ayala Land, IDEAS and FSSI noted a dramatic increase in Tecovery of waste materia s fromApr | 23 to 28. An additional 4 to 5 tons of waste matefia per day were recovered (see Table 4) while therewas a decrease in the volume of res dua s hauled by two waste col ectors (see Table 5). Torres is optimisticthat by increasing recovery to 6 to 7 tons per day, garbage can fufther be reduced.

TABLE 4:VOIUME OFGARBAGE aEFORE AND AFTERTUE TRAINING wORKSHOps

Material Loca unit Before IncTease Collectof

Styfo, p ast cs,straw, etc.

Eags/day (approx. 25k/bas) 220 280 274/a PPCP

Pig sop Drums/day (approx.200 litertdrum) 16 2A 25o/o Iqi Cali*o

Compostabes Drums/day(appror. 160 iters/drurl) 2A IDEAS

Other recyclab es 6 100% Partner

upon ALIS reqlest, IDEAS and FSSI have submitted a proposal to formally insta I a system for managingwaste atthe commercia center. The proposa iscurrently underdiscussion and provides fo r train ing ofoihertenant-establishments which rnissed the first workshops, improving storage of recyclables, a reduction inthe number of meqapacks, identifying colectors of other recyc ables (e.g. used cooking o , cans, smalpapers) and in the medlurnterm, the deve opmeft of off-site faciities to process compostab e t/aste.

Note: Thls neans that during the monitoring period, IAR hauled about 2.0 to 2.5 tons less and Green Llnehauled 5 to 6 tons less.

TABLE 5. VOLUME COLLECTED BY PRIVATE COLLECTORS

No of TnpsBefore Date Green Total

tMonday lGApr 5 22 2

18 Apr 5 3Thurcdav 1g-Apr 3

20 AprSaturday 21-Apl 3Sundav 22-Apl 5

Total 22 22308 i 1 0 414

During[4ondav 23-Apr 3

325-Aor 3 3

Thursday 26-Apr 2 3Frday 27 Apl 2 3Saiurday 28-Apr 5 1SLindav 29-Apr 2 4

Tota 2A 39280 95

On no ol lrLps 1130%Decrease 10.30%

EXHIBIT 1vision, Objectives And GoalsAyala Foundation Solid waste Management Program

PROGMM VISION

Ecologically-aware Filipinos from all sectors of society, individually and collaboratlvely contributlng t0 thesustalnable resolutions of environmental concerns.

GOAL

To build, strengthen and institutionalize multlsectoral mechanisms through which ecologically-aware Filipinoscou d actualize and sustain individual and collective solutions to environmental problems.

OBJECTIVES. To build public awareness of the environment throlgh training and networking

. To assist in establishing systems of managing solid waste through all its phases

. To provide envlronment-based livelihood and income-generating oppotunitles for poor communitres

. To provide a venue for businesses to express corporate soclal responsibiity through their concern forthe environment.

EXHIBIT 2

Roles And Responsibilities of Participating Organizations

Ayala Foundation shall :

1. proTnote environmental awareness in l'4akati through continuous education and training;

2, pfomote So id Waste f4anagement among the various sectors in f4akati, inc !ding government, schools,blsiness and industry villages, civic and professiona groups, etc i

3. ldentify, prepare and strengthen peoplet organizations or cooperauves as beneficiaries of the proiect;

4. continuously monitor and evaluate the projecti and,

5. asslgn a coordinator for the project

Th e donor bu ild i n g/con Pa nY sha I I :

1. promote and implementthe solld waste l4anagement Program through waste segregation and collectionin the whole buildlng;

2. provide and install support system such as color-coded bags and designated depository areas for wet,organic wastes and dry recyclable wastes;

3. donate all the generated and properly segregated recyclable materials to the identifled beneficlary;

4. faciitate a continuous environmental education with focus on solid waste lvlanagement among rtsemployees, janitorlal and utiLjty personnel; and

5. desigrate a coordindtor'or t"e p-o;ect

The co n m u ni ty- benefi cia ry sha I :

1. collect all recyclable materials generated by the donor-building/company on an agreed schedule;

2. provide its own means of transportation and manpower in the collection of recyclable materials;

3. keep a record of all transactions undeftaken in connectlon wjth the project;

4. prepare and submit monthly reports on the income generated as well as problems and difFiculues toAFI; and

EXHIBIT 3

Mechanics of ImplementationAyala Foundation Solid Waste Management Program

1. presentation ofthe concept ofSwl\4P donor-beneficiary scheme to prospedive donor-buiLdjngs/companlesand communitY beneficiaries

2,orientationsessionsaboutsWl.4throughWastesegregationandcolIectiontodonor-buiIdings,thetenants- anJ its employees, lanitoriaL and utilit personne and members of the community beneficiary

3. I'4eeting of donor-buildjng/company and community beneficlary to discuss agreements and finalize

arrangements on systems and procedures (ID or gate pass of collectors, ume of collection' entrance

and e-xit of col ectois and their vehicle, storage equipment, rules and regulations, security' etc )'

4. l4OA signlng of all the partles jnvoved in the project

5. Instalat on ofsupport systems (issLlance of lD/gate pass, provision of separate garbage blns/feceptacles'- ioioiliooea oasi and d;siqnatad depository areas for wet, organic wastes and dry, recyc able wastes).

6. Consolidation of all fecyclable rnaterja s by donor-building/company janltors/utiity personne ln the

designated depository areas for recyclables.

7. CollecUon of all recyclable materials by the partner community beneficlary

B. Report preparation and submission to Ayala FoLlndalion o't a monthly basis by the partner communlty- O"iafi.br'l The report should incJude the breakdown of kinds of recyclable materlals collected and its

iorresponding cost, total amo!nt of sales, problems and difficulties encountered and stalus ofseqregaUon

and co lection as compared to the previous month.

9. Updating, monltoring and evaluation of the project on a monthly basis

THAIL,{ND

Kecyclable Waste Businessfor Sustainable Development

By Dararatt Anantanasuwong, Ph.D.-

* The author is the Assoc ate Dean for Academlc Atra fs and s Assistant Prcfessor at the Schoo of Development Eco.omics of the

Natonat jnstitute of Devetoprnent Administration in BangkoK, Thalland. The reso!rce person for the case stldy was l"lr Somihai

INTRODUCTTON

Econom c activities in the process ofeconomic development have ed to the question of sustalnabiliry oftheenvironment and the quality of life of the people Natllral resources have been extensively exploited andwaste (i,e,, wastewater, industrial waste - hazardous or non-hazardous - air pollution, and solid waste orcommLrniry waste) has been generated to an extent beyond the absorptive capacity of the enviTonment.urbanization as a fes!lt of the development process is accompanled by the rapid generation of waste fromhouseholds and commercial busine5ses.

In Thailand, community waste management, (e.g. waste collection, treatment and dlsposal) has been amain concern For the governrnent and local authorities, In 1999, a total amount of 13 B million tons of solidwaste (or 37,880 tons per day) was generated by households, communities, and markets (PCD, 2000a)About 500/0-600/0 ofthis waste was collected and, approxlmately 700lo ofthe total were not treated properly(t4osrE, 1999).

The sitLlation reflects many aspects ofcommunity waste management problems, such as lneffective collectlonsystems, Iack of and areas for waste dlsposal dLle to high land pr ce and the not-in-my-backyard syndrome,and lack of a system for waste reducuon at the source

Thai and has created a new approach in dealing with the problem of solid waste managernent. At present,the Thai government and loca! authorities, in cooperation with the private sector (e,9, businesses andNGOs), have concentrated on the policy and measures for waste reduction at the source Thls new approactlwill encourage peop e in the households or communities to separate waste for relse or recycling beforedlsoosal.

In 1998, the amount of solid waste that communities separated for recycllng was only 1 6 mil ion tons, orabout 12olo of ihe total solid waste (PCD, 1999). In order to enco!rage more people to reduce and separatesolid waste, voluntary efforts need to be supported wjth economic opportunities. People need to understandand aooreciate the ethical and economic va ue of their adtiolrs. Thus, recyclable waste that is Separated forrecycling has to have economic value or must be ab e to create revenue. The business of recyc able waste,therefore. is an important rnechanlsm for value creation in the waste separation efforts of the peop e

It is the purpose of this paper to present a case study of a private buslness firm, the Wongpanit Company,a pioneei in creating value from recyclable waste. 1n the process of this value creation, the company hasshown strong leadership ln its business profession, in participating in the waste separation activities ofPhitsanlr ok l,4uniciDaliw and communities in Phltsanulok, a northern province, and ln the sllstalnab edeveloDment process of Thailand.

WASTE MANAGEMENT AND WASTE SEPARATION FOR RECYCLING

Concepts Of Waste Management And Recycled Materials Flows

Sustainable development irnplies a kind of development with economic growth, good qua ity of life andenvironmental conservation and protection for the present generation as well as for the fLJture generation(WCED, 1987: 43), Waste management to conserve and protect the environment from the adverse impactsof economic development is, therefore, one of the main components of sustainable deveLopment.

Waste management for sLrstainable development, in general, can have two approachest the end-of-the-plpe approach, and waste minimization or waste reduction at the so!rce. The end-of-the-pipe approachinvo ves the treatment or andnll of wastes (e.9. wastewater, community solid waste, indLlstrlal solid waste,hazardous waste) genercted at different sources. On the other hand, waste minimization or waste reductionat the source is a prccauUonary approach. Waste generators try to use materia s during production orconsLrmption in such a way that minimal amount of waste ls generated, thereby reducing the volume ofwaste for disposai.

In explaining the relationship between economic activities and the environment, David Pearce provided themateria 5 balance model that shows how nat!ral resources can be used as primary mater als and recycledas secondary materlals/ and residuals (waste) can be generated and disposed nto the environment, in theproduction and consumption processes (Turnet, et.al., 1994: 15"25), Waste minimization means that theprimary rnaterials can be reduced or can be reused or recycled as secofdary materials in the production orconsumption processes before they are disposed as reslduals or waste.

The materials flow chart (Figure 1)indicates five recycling flows in the process ofprodudion and consumpUonof an economy.

. Recycllng F ow 1 is known as 'home scrap' flow because the residuals or waste can be recycled insldethe processing plant, i.e., the recycled secondary materal never eaves the process ng pant.

. Recycling Flow 2 is 'prompt scrap' f ow that requires the intervention ofa secondary material commerciafirm to facilitate the collection of scrap and its redirection back into basic processing.

. Recycling F ow 3 is'commercial scrap'flow, which involves packaging waste and is the staple businessof recycling commercial firms.

. Recyclng Flow 4, 'post-cofsumer scrap' makes use of the potentially recyclable cornponents of thehousehold and smal commercia premises waste stream (municipal solid waste).

. Recycling Flow 5, 'reuse'is a practice that has all but disappeared in modern economics and is nowrestricted to retuinab e bottles and a imited nltmber of examples.

For the past experiences of rnany countries, recycling flows of types 1, 2 and 3 operate at a high activtyrate, while those of types 4 and 5 remain at relatively low eves (Turner, et.al., 1994t 20). Whydo recyclingrates from difFerent sources differ in an econornv? The rcason ies upon several factors,

First, the law of physics concerning materials, i.e., the first and second laws of thermodynarnics, jndicatelhat waste rninimization that leadsto zero waste or 1000/0 recycling is not feasible. Thus, no matter how we ithe management efforts are to control residuals or waste, production and cofsumption processes wil, atthe end, generate waste. This is the natural limit to waste management.

Second, recyaling activities can be more easiy carried out at the processing plant leveland atthe packagingwaste business or commercial level. However, recycling at the household or community level is more difficultto achieve due to four physical factors of materials for recycling, namelyl1. f4assi the volurne of recycjable materials

FIGURE 1. SIMPLIFTED MATERIALS FLOW CHART

Residualsorscnarge

Recyc ed residuals flow 1

i - _ " _ - - - _ _ _ - - - !

I

Recycledresr0ualsfows 2

Recycledresldualsflows 3

Recycled

flows 4

Env ronmental/naturalres0urces

Land, aiT/ water

(Mun ic lpa lo renvironmentaldumps)

Natural resourcesextractron actvt es

V rg n (primary)Taw materra s

ReslduaJsBasic processin9 and

manufadurlng activltiesiprlmary materials/ inPuts

prodr.rction

Basicmaterials

Residuals0lscnargeConversion/f abf lcat on

activitles: production of

End'use products

Residuals

Resldualsdischarge

3. Contamination: the degree to which different materials and other substances are mixed together, and4. Location: the nurnber of points at which the materia s are frst discarded as waste'

If we compare home scrap (recycled residuals flow 1) in processing plants and post-consumer scrap (recycled

residuals 4) in households, the former is characterized by large mass, high homogeneity, low contaminationand single location. The latter is characterized by small mass, low homogeneity/ high contamination andmuluple locations. in financial (private cost) terms, the profitability of recycling flows 1, 2 and 3 will be muchhigher than flow 4. Indeed, the househo ds will often incur net financial costs This can be said to be thephysical limit to waste management.

Finally, the extent ofthe recycling effort in a national economy will also be determined by factors. such as:

. the rclativepricesofsecondary (recycled) and primary raw materia s as inputs into production pfocesses;

. lhe end-use structure (nunrber of uses and the grade of matedal required) for any given secondarymaterials; fypically ower grade secondary materials, e.g mixed waste papers and mixed color glass,

and the sma I number of uses that are available;. technical progress in both secondary and primary materials industries; and. historical and cultunl facfor's which condition the degree of environmental awareness in society

Wongpanit Company in this case study can be considered as a private business firm that fllls the gap in the'post-consumer scrap'fow 4 and'reuse'flow 5 with its buslness strategles that create val!e from recyclablehousehod waste. lt encourages the rate of recycljng in the household and communlty eveLs by doingreclclable waste separation. The activib/ that used to be considered as a financial bufden fof household,now, is a proftable one. Wongpanit is an inspiring case ofsustainab e development for Thtsiland becaLlse ofits succes; in overcoming the physical and other socioeconomic and techno ogical factors of recyc ing efFotsat the household and commitnity levels and ri developing a leading recyclab e waste separatlon business nThailand, which has contributed positively to Thailand's social development,

Waste Separation For Recycling In Thailand

The business ofwaste separauon for recycling in Thailand dates back to over 100 years ago d!rlng lhe reignof King Rama V of Rattanakosin Period The business then was in the form of scrap trading Va uable scrapswere bought from holseholds by tricyce scrap traders (known in Thai as Sa Leng) or small scrapshopowners wiich sold them to larger junkshops or scrap wholesalers. Scavengers or waste-coLlecting officialsseparated waste at dLrmpsites of communities or munlcipalitles. The business was not meant for wastemafagement to conserve and protect the environment, but was a means to earn revenue for a livlng

Recently, the concept of waste management with waste separation for recyc ing has been introdlced intoThai socjety. The National Environmenta l4anagement Plan 8.E 19902006 broadly states a clear policy

towards reduclng waste at the source, besides pollutlon control or end-of-the-pipe management

The l4inistry of Science Technology and Environment (t\4osTE) has established a pollcy for communitywaste management ln Thailand, which focuses on controlling waste generation by househo ds; subsidizinglocalauthorities in the operation of a fullsolid waste management cycle, from collecuon, transportation, andsanitary disposal of waste; encouraging local authorities to cooperate in waste management by setting upa central community waste landfi ; estab ishing practical laws and regulations on commLlnlty wastemanagement for relevant authorities; and promoting more participation of NGOS and peopLe in solvingwaste management problems. (PCD, 1998,1999; I'4OSTE, 1999)

I4OSTE aims to reduce community waste generation to less than 1 ki ogram per person per day by 2001; toincrease the ltilization rate ofthe community waste to no less than 10 percent and 15 percent by 2001 and2006, respectively; to reduce uncollected and disposed municipality waste to no more than 10 perceni and5 percent bv 2001 and 2006, respectively; and to have provincial action plans for commLlnity wastemanagement in the form of central waste landfill that various local authoriues can utiLjze together and tohave central waste landfllls estab ished in no less than 50 percent of all provinces by 2006

I\4OSTE has suggested the foTlowing management approach for recyc ing ofcommunity wastel to campai9nfor recyclable waste separation such as bottles, paper, plaslic, and metal; to provide and faciljtate therecycrins activities with waste separation :Tj*::,'-1j:1L::f:::Tj: y:::"",9 :i::1"."*iT*1,"".1j:l

students to collect recyclable waste for trading; and to establish recycle centers or waste separation centersin the area where large volume of waste is generated daily.

WASTE FOR RECYCLING

Economic development has brolght about new products and new packaging, and consequenty, more wastefrom these products and packaging that is difficultto dlspose and needs to be put in landfils. It is estimatedthatthe cost for sanitary disposa of waste in Thailand w ll be 1,000 baht [US$23] perton. lfwaste could bereduced through reuse or recycling by 39 percent ofthe total waste of 14 million tons generated in 2000, thecountry would be able to save aboLrt 5,400 to 5,900 mil l ion baht [US$ 125.6 or 137.2 mil lon [US$125.6mil l ion to us$137.2 mil ionl (PcD, 2000b).

Recyclable waste in Thaiand cornes n the form of plastic, paper, glass, and rneta , The b/pes and recycleflows oF recyclab e waste are as follows:

. Plasticr P astic prodlcts and packaging for recycle have to be thermoplastic so they can be melted andremo ded into other shapes, i.e,, polyethyene (PE), high density polyethylene (HDPE), low densitypolyethylene (LDPE), po ypropylene (PP)/ polystyrene (PS), polycarbonate (PC), expandable polystyrene(EPS), and polyethylene terephthalate (PET). These products and packaging are in the forms of bott es,boxes, trays, or n the flexible Forms of bags or iilms, The consumption volume of plastic products andpackaging in Thailand is about 1.36 mll l ion tons per year,

. Pap€r: Paper pu p and paper are impodant indlstrial products in Thai daiy life. The consumption ofpaper in Thailand isabolt2 mll ion tons per year (PCD, 1998:2-31). Used paper can be recyced ntopapef plrlp to produce paper again. RecycLable waste papers are bond paper, newspapef, kraft paper/an0 paper 00xes.

. Glassi Glass products include bottles, glasses, electric bulbs, ens, etc.; flat glass such as glass sheets,mirrors, etc.; and g ass flber products. Glass can be classified by co or, e.9., green or light green, andbrown, ruby red, etc. In Thalland, abolt 827,088.54 tons of glass bottles are used every year/ coming inthe form of beer bottles, soft drjnk bott es, and whisky bott es, arnong others. Approxlmately 155,916.6tons of the bottles are re-used and abolrt 283,189.83 tons of bottles are recycled by the recycingindustry (PCD, 1998r 2-32).

. Metal: I\4etals like steel, a !m num, or bronze are impodant inputs for industries such as conskuction,manLrfacturing, transportation, public ltillties, and consumer prodLrcts. Meta s that can be reused orrecycled are metal packages s!ch as aluminum conta ners, aluminurn tubes, bott e caps; equipment orrnachine parts made of steel of aluminum or bronze; and steels from construction and manufacturingindustries (PCD, 1998; 2-33).

R ECYCUB LE WASTE BUSI N ESS

The recyclable waste business is concerned with the private sector thatoperates in waste rnateria I excha nge.It is a waste management system to reuse or recycle waste ln industrial production process (Figure 1.ResidLral Flows 1,2,3). However/ in Thailand, the waste management system (Fig!re 1. Residual Flows 4 and5), has long been operating as an informal sector where poor trlcycle waste collectors (or Sa Leng scrapbuyers) or sma I junkshops function without any f inancial, techno ogical, and management supportfrom thegovernment. They wou d colled! valuab e or tradab e scraps from manufacturlng indlrstries, households orcommercia areas as a means to earn income for a llvlng, not primariiy for envjronmental protection. Thus,few types of waste have been recycled and there is no regulation in the recycle buslness in Thai and. Witha more concrete solld waste management polic, government, comrnunities, businesses and nongovernmeftorganizations (NGOS) have started to reconsider their ro es n recyclable waste separation to reduce wastef^ hc /li<nn<..I :f tha l^.:l loval

The recyclable waste business in Thailand can be divided into three main sectors (Seksan Chankwang,2001: 26'28). These are as follows:

a. The valuable materials separation sector is a gfoup ofpeople who separate waste from the source, suchas from ho!seho ds, commercial places, or dumpsites. The seclor includes:

i. Scavengers or people who earir a living by sorting valuable waste from the dumpsites

li. omcialsfrom localauthorities oremployees from private firms who are responsible forcolectingand transporting waste to the dumpsites and who earn extrc income from waste separation

b. The valuable mateials trading sector is a group of people who act as tfaders of valuable waste Thesector inc udes:

i. Tricycle scrap traders, the Sa Leng, who drive thfee-wheel vehicles to buy scraps or separatedwaste from households and sell them to junkshops, The tota volume of scrap they trade issmall and they are not required to register officially ln order to do business.

ii. Pickup-truck scrap traders, who buy scraps or separated waste from households and sel themto junkshops or scrap wholesalers, Their business covers a wider area and the volume of theirtrade is larger than that ofthe Sa Leng, They afe not required to register the r b!slness with thegovernment,

iil, Small scrapshops, which are operated near the dumpsites of loca authoritles or private flrms.The owners buy separated wastefrom scavengers orfrcm waste-colleding officials oremployeesand then sell materials ofva ue tojunkshops or scrap wholesalers, They usually do not reglslerofficially,

iv. Junkshops, which buy separated waste from manufacturing industries, household indlstries,households, or the sectors noted above and, after a primary modification of the separatedwaste, sellthe waste to scrap wholesalers. Junkhops are formally registered with thegovernmentand they play an important role as middlemen in recyclable scrap businesses betlveen small-scale and large-scale scrap collectors.

v. Scrap wholesalers, large-sca e scraptraders who usually have contracts with recycling indusiries,such as paper industry glass industry plastic industry and can industry jn providlng the recyclablescraps in thevolume, rype, and quality required by the industries,

c. The recycling industrial group is a group of recycling firmsl that utilize the recyclable scraps or wastefrom the first and second groups as their inputs to produce outputs or secondary materials to be sold tomanufacturjng industries that produce final or consumer products.

The recyclable waste business in Thailand is sumrnarized in Figure 2 ln the first channel, scraps withvalue are taken from dumpsites by scavengers or waste-colecting offlcials or employees, then so d tosmall scrapshops near the dumpsites. The srnal scrapshops sell the scraps to junkshops. In the secondchanneJ, tricycle traders or plcku p-truck traders buy valuabie scraps from households and commerclalortrading places and sell them to the junkshops. After primary modification of the scraps (e g cutting,c eaning, simple chemlcal treatment), junkshops sell the scrap to wholesalers for reuse or recyclingScrap wholesalers, after buying scraps from thejunkshops, modlfy the scraps and sellthem to recyclingindustries. They reprocess the scraps into secondary materlals and sell the recyc ed materials tomanufacturing industrjes to be used as inputs in their production process.

FIGURE 2, RECYCLABLE MATERTAIS BUSTNESS FLOWS OfTHAILAND

Scavengers

Recvclable materials fl ows

A CASE STUDY: WONGPANIT CO., LTD'

Lo.ition And Brief History

Wongpaflit Cornpany is engaged jn the business of recyclable waste separation and has an annual revenue

oi-zo15 .iirion baht' (a ppr;ximately us$4 5 million)'? The company is located in -the mLrniclpality of the

nortn"rn ptoui*a of pfitsanulok, about 377 kilometers from Bangkok in Thailand 3

wonqpanrt Company was founded by l4r' Somthai Wongcharoen' a product-of his long experience in the

'"i".jlul"'**d."ta,"t.n business l"t,. Somthal was -born

on December 27' 1954' in Tapanhin District'

, -* *"*,"dI4 "0"""

t* tar,en irom ue companvt lgures in 2000 The exchange late used is U5$1=45 baht

3 Tho 2nnrp(c.rwnnodarit co. js 19/19 Nloo 3, Tha I hong Sub Disirlct, Phitsanulok Bang Krathoom Road/ 14uang Oistr cl Ph isanulok

Pick up truckscrap

tra0ersCommerclalortradln9 places

Tricycle scraplrade15

(Sa Leng)Households

Junk shop

Waste collectingofliclals/emP oyees

Dumping sites oflocal authorlties

Phichit Province, a southern neighbor of Phitsanulok He graduated from Niyomwitthaya School' Tapanhin

oiitii.t, pni.nit prouin." and rece]ved his bachelor's deg ree in managementffom Piboonsonqkram Rachaphat

InsUtute in 2000.

After graduating from secondary schooi in 1974, lvlr Somthai became interested in the waste thrown awav

in ordi. pfu."., .""lng the chance to create economic value from it studying the cornposition of waste in

l;fip;;i#;'i;; ;"cioipnrtsanutot, tltr' somthai thousht that at least soo/-o misht still be recvcled He

inorini f."-nuifornO a "miracle rnine" that did not require highly technical effort or hea\ry eqLlipment toitii'irdt ertractro,cam,,a.:iat.* *";?tri,:;,"i;K1:Z;:;J:-ffi"i:,rt"";:i,fl"r,it f;!T?31;37sent to be recycled as aluminurn With walnever-ending business "In nature, tnere are both vaiuable and non-valuable materials We should separate

in" *f r"f-ia"t"t"ri"f t nrst and then make the non-vaLLlable materials to be valLlable "

He beqan his small enterprise with 1,000-baht investment capital' one plckup truck' and a baq of candies'

iil iil'* lii iiiirp ,tGi aiound the rural areas of Phitsanulok' buving scraps or recvclable wastes rrom

"iflugarf* hJri"hirro. tn lhe begrnning, he gave away candies in exchange forthe-scraps Later ne gave

"*uii"r*io'O uLe'sls su(r' u, p'urt '. bo*'i oiptut"s Thrs slrategv seen'ed-to wo-k wrl 'r vrlaqers wl'o

eagerly brought o.t tne, ,aruo, o' '"ay.'oo "

*u5is ;n svqn6tge to-1'e gifts TLer Y- Sonr'ai qave qifts

less freouentlv, and instead consLlmmarco the exchange with cash' At that time' the volume of scraps rle

ffiJ # ;'1i;;i ;" i".uili inu*'. *ouro t;Llect a6o!t 1,000 kllosrams or worth onlv about 2'000 baht

or-i".viiiof "'**t"

uofume per day. (Somthai wongcharoen, 2001; 1)

in 1997, having saved enough frorn lhe business, l'4n somthai expanded by setting up a small junkshop 0n

ii',"-6"i6tiraif6rl-"rt noad in th e citv ol Phib;n ulok The shop had a n a rea of 4x12 mete rs a n d he was able

ioin-.*." tt," uolu*u of recyclable waste he bought to 1,000 kilograms up to 5,000 kilograrns per day'

The business made rapid progress By 1982, Mr Somthai moved to a bigger junkshop with an area of 200

io,r'ui" t",*. uronq dorormr-rarokanart noad 2, Wat char Tawan ork Distrlct By then he was dealinq with

uioriJ,ooo ̂ ,'oq-u--t ro 10,ooo kirog'ams of ''cyclabre waste oer dav

In 1989, he moved again to anomer area rn Phitsanulok, at Beung Pra Chan Road in the same Wat Charn

Tawan Ork District, The new place nao an area of more than 4,800 Square meters and the capaciv to handle

;;;;:H;;"-J;"ir;" or io,ooo tltograti 'p to 15,000 riilosrarns a dav He emploved about 30 to 40

waste-separators at this Plant

In 1995, he expanded for the fourth time, in order to increase his capacity to handle a much larger vo Llme

;; ;#;;1.;;i;. iloougl,t tana at Phitsanulok-Bang Krathum Road' rha Ttions sub-District' 14uanq

nicrri.t phrtqanLrlok. !,vrth an area ol 6 5 rai or 10,400 square meters The Tha Thong plant ls the current

;i#il: ffiffi;;".v,ru-ol" *u.i" outin"ts' in this plant, l'4r' somthai developed and standardlzed h s

|-".viiuo[ *itt"."purutio; bi]siness and turned it intothe mostwell-known business of its kind in Thalland

TheThaT .o .gpa r t s tecannand |eB0 ,0o0k i | ogaTs . l o lo l00 ,0o0K i |og ramso , ,ecycab |eWas tepe rda ! 'il;reslrrt,;h; i;;i;.plovs l4o peopli, olwr6m 30o/o are resular emplovees and 70% are daiLv workers

iol',*nu'6"n"fit , "

s., food a nd lodging, medica l care, safe working environment' are provided a Ll emp oyees

and worKers

The Tha Thong plant is the main office, with a waste Separation nehvork that.covers the communities

uiornOin" rvu-niiipufity of PhitsanLllok and other neighborlng provjnces The business had 21 branc|res In

5oii, ",$,l

iijjr"ri.n"i i; Phltsanulok, 9 branches ouiside Phitsanulok' and one branch abroad in vjenuane'

Laos PDR (detajls in APPendix 1).

The Tha Thong plant in the l'4unicipalib/ of Phitsanulok uses modern machines and equ pment lo mod ry

,"Jv.lioru *ltL'ror. ruther selllns io recvcling i"-d*lr-.l9: .ft hut i q:p"l'll::sins machlne with a pressins

capacib/ of 200 tons RecyclaDle wa$e papei of 1,000 kiograms is pressed,to.fofin a compact pack for

infu"ni"ncu in transportation, thereby lowering transportation cost The plant uses other machines to

lij.?l"l""j3t_ ": llli ]ert 'n nach,nes d.d equ prent s .rpor.arr !o iIncrease the value of fecyctable: , --_- :: _-_"- ' drru equ pTnent rsT:,-:-T! !:g th"t"asier ro transporr to indusrrial ptant:invesreo more than 50 mil l iof baht iUSg1.2 mil l ionl on eqir ipment.

ls_r'-otaer p-ov,..es or cour.res. rne ioirro-y

The Tha Thong plant is now able to han

ffi;*rrh5:lffff ffiHrj;..,.;1;.,1,.:iiiff".j,{,il{i{i1x1i# .,,5 !""*r usins modern

;ff :] i:':"11ry?#;1T::xJ".'"'*TJ #'r-?,tni:,:l[ff [#iT:":'lr: **iji:ii,::';;'," '",, ;1j",;xi:iltf:ll?,1",J,::,T1""{::i"_::i::::[JJ.?!g:;;:..:;

I\in Somthai explainsr ,.Everybody who is i;u;smim fi"Jx"",idtriri:iii i{:{i:fi*iiilir,trJ|r,,fl ::::r[T;Ji*3ih.l:q,:llf rrtl*irot*#t1r # ft :]"J; iltr*,#,;;:ir',"'r;g#.:n:n:r;iitr:[,+;; ]".tr1;["r,.#;[*]j[;j1;;ij: ::il ".*il}"d:kn#jd;#di:.,".wm*nmri:.."."J** x#f[#,.,"sd,i* :ii{iifi ijtytli,f ,ril: Bffi Hi:t :f, :*:lr"j:x;:n jpfll,il i:llu,*ffiff rEi^iffi li["# ;il"..ffi Jll::i:: ;:il,;::i: ;#'.*l*il,T,i': gil #J5ilru.""","Iil:ii:tf'i,"",',i"iil!",lnffi Tiil:l, gT]"f :;!]j:f'',*r il:jffi, ffi :Hl"ni;111ilii:Rfi Tffir ru,*'.!$i;ifii:,*"jff #n::,: ::t'.?:,il:lTill!'tiiilli!il ffi'"i.j"Jfffii ifflfl1,i, !!i"",1#lii",izR i e' communitv deve'|opment nseparation of recyclable wasle in the housp^:;fi',j'"':,"',lffi1'':y,dffi ;,"'i'i,'.'#+i#Ti#'il""i *Liiiffi fr f+q:illtfrlff i4ji"finH[ii::::::,5f,, i#[1]T"?,Tm:".,,rurru;$L:j#*n*,T#;*:H:'"i[]:Hi'":"iffi'i ':[T:[l;""'.;.i":i:il:i]l#lil:* ,1*; :;;m'lnui"o"n''i'""ni coo'oinution i"nt",What Does The Company Do?

Wongpanit Company can be considered as

ffid;?frtfi,fljftit"T#[iJN",J,?li"til+[i:l+T""'.,".*I"jt",#.jnfi.;:.::ii,"1Tx;T::,fll;'

:;,1;Sf'**dml":;;i:;i,lZnnn'"nt p'Iosram ror ph,tsanu,ok, wrote an artice . ,ecos.ze the,,qi,ikanr."e",",il,;;;;fi;;;:;;iiJ#,::,fi[il[,:._iH:::il:::i,1i1:3?g:ff]:;:1fl:i;il:jH,:lfig:ii,15_:i,1;

' [:::Jil:*:ffi:".':"ilj,"J"",::ffiHfln:":il::iliff::"#;:tfl,y,T:fi:jff,a,y,ssoca roe nrecyc,ns,ha,heps

! Gefera Dr Sir Th w.phan, presdent of E.Co anrttt

l*':rv*ru:ll, :*i:i:n"l".r*';r:fihl*liil1ffi 1{ "![:jm:]"rr.1il.':jff "''ff ::rj:ir;

. Plastic scraps (e.g. shampoo bottles, drinking water bottles, iuice bottles) - These are separated bytype and color, then washed until clean and cut into small pieces When dry the plastic pieces are putin 8o-li log'ar Dags to be ready'or sale

. Papef scraps (e.g. kraft boxes, newspapers, magazines, books) - These are separated by type andco or, to be pressed by a pressing machine into a pack of 1,000 kilograms each and ready for sale

. Glass bottles and scraps (e.9. beer and soft drink bottles) - The glass bottles in good condltion areseparated for reuse and sold to manufacturing industrieS The broken ones are separated by color (e g ,brown, green, white), srnashed into small pieces, and put in bags to be transported to 9lass-recyclinglndustries.

. f1etal scraps (e,g. aluminum/ steel, bronze) - These are separated by type and pressed into packs tobe transported to recycling industries.

. Other scraps - batteries are separated to recover thelr lead content and the casing to be sold back tothe battery industry; PVC pipe scraps sold tothe PVC pipe manufacturing company; coconut shels bufntfor their carbon content,

The companv is involved in the business of both buying and selling these recyclable scraps (Figurc 3).

The buying business has been the main activlty that led to the company's success The rccyc able scraps aresourced from the followin9:

a, HousehoJds or people living in Phitsanulok lYun cipality area and neighborlng distrlcts, who collectrecyclable scrapsfromtheir households, such as newspaper, meta scraps, bottles, beverage packages,to sell to the company on weekends or holidays;

b, Scavengers, who collect scraps from the publlc d!mpsites in Phitsanulok and sell the scraps to thecompany;

c. Waste collecting officials or employees ofthe PhitsanuLok lvlunicipality, who collect recyclable wastefrom the public dumpsites or landfill sites;

d. l'.4obile traders (pickup-truck traders or tricycle traders/Sa Leng), who move around communities orv:llages in PhitsanLlok or nearby prov rces;

e. Junkshops in Phitsanulok and other provlnces, such as Khamphaengphet, Sukhothai, Phlchit, Tak,etc,;

i Branches ofWongpanit Company, which are its franchises (the company has 16 branches, at present);

g. Stores, companies, and factories in Phitsanulok and other provinces, from which the company buysrecyctable waste, such as paper boxes and metals;

h. Communities, schools, and temples, which are the company's allies in collecting and separatingwaste;

i. Importing - The company a so imports recyclable scraps from abroad, for example, paper wastefrom the U.S.A.

The Wongpanit Companythen sells its modified recyclable waste to recycling companies and the manutucturingindustries. The Bangkok Glass Company and Nam Heng Steel buy recyclable glass and steel, respectlvelyThe company also has contracts with manufacturing industries, such as whisky or fish sauce factories, forthe supply of used bottles which these fadories refill with whisky or fish sauces The company likewiseexoods recyclable waste, for example, PET plastic bottle scraps to Japan, Singapore, and China

How Does The Company Do The Business?

l4r. Somthai Wongcharoen has been in the recyclable waste business for 28 years, and hls company hasexpanded ln terms of its operations area from 48 to 10,400 square meters, investment capital from 1,000baht to more than 50 million baht, and trading voiume of recyclable waste from 1 to 5 tons per day to 80 to100 tons per day. How did he do it? [4any fadors are behind his success.

FIGURE 3. BUSIN ESS OPERATION OFWONGPANIT COMPANY

SAURCE IIOD'FIED FRAI4 SEKSAII CHA

HIS WSION ON WASTE

Since that day on the Phitsanulok roadside, when he saw not waste dumps but"rniracle mines"that wouldnever be emptied, Mi Somthai has been imbued with a sense of social responsibility, particularly in thebeliefthat waste management should also be the responsibility ofthe people, not oniy that ofthe government.Applying the experience, skills and know-how he has learned in hjs buslness, he has also feltlt his continuingresponsibi l i ty to help the governrnent make peope understand and do waste separation. (SomthaiWongcharoen, 2001i 22).

PROFESS]ONA L Ii4A NAG EI\4 EN T

Wlth his vision about waste, I\4r Somthai Wofgcharoen was filled with the spirit of a Schumpeteriajentrepreneur and became an innovator who creates new prodLrcts, new markets, and new organizalions ormanagement systems (Schumpeter, 1975r 132).

As waste has been separated and modified to be sold as recyclable or reusable materials for recycling ormanufacturing industries, new products and markets were generated. A secondary material market whichhas a pricing mechanisrn and which operates with transparency was created.

A price list of different types of recyclable waste is posted on a big signboard in front of the company'soffce and at the main gate. It ls also published in company brochures handed out to the public (Appendix3). Customers are free to speculate for a higher price. in bringing the recyclable waste to sell to thecompan, the custorner learns in advance from the price list how rnuch revenue he can earn. The wastebrolght in is inspected, weighed on computerized scales, and the welghts and !nit price along with thetota payment from the company is printed out and given to the custome[

The company itself has a stable flow of scrap materials to sell to recycling industries and manufacturingin.IictriFs for re.v.le and rerrse of these materiais for lheir Droducllon. This ensures the existence and

lYlan u fact! r ngl,4uf cipalityo t f c a s

A new organization system has thus been created. The company's internal management is well organizedbv tunctio; (Fiqure4). New management systems from the stage of buying recyclable waste from customerslJiiiino,'inid".itn, ti"iqhinq, ani payment, to the in-house stage of separating, rnodirying' and packaging

ii.v|rli,i" i"iri",'""4 ine -oetiuery

itage of recyclable waste to recycling industries and manufactudnqindustries are formed. The management s"ystem is outlined in Figure 5'

FIGURE 4. WONGPANIT'S ORGANIZATION CHART

_ Franchise/brunches. r.anspo_VetoGs'CoolEinatoB

sauRcE: tl1DlFrED FRAM SEKSAN CHA.1KWA^6' 2AO1: 59

FtcuRE 5. MANAGEMEIIT SYSTEM OF WOI'IGPANIT COMPANY

Wongpanit ComPanYlvlanager

Mr Somthai Wongcharoeh

Accounung andfinance secllon

Prod!ctlonconhol seclion

Publlc relations

AUS]NESS STMTEGIES: NETWORKING AND ALLIANCE

In operating his business, 14r Somthai Wongcharoen has employed various strategies, His business principleis based on the fundamental economic principle of minimization of cost and maximization of,,cash,, proflt.The concept of economies of scale, that is, the laEe volLtme of reclclable waste for trading, is the key tolower costs and higher profits.

To gain economies of scale, he has had to maintain a steady and large supply of recyclable waste to beseparated by type and 9rade, and a large volume of separated and modified recyclable waste to satisfy thedemand of recycling industries or manufacturing industries. A large volume of recyclable waste means lowper-unit transaction costs in business, e.g. transportaUon or administrative cost. Thus, networking andalliance is one of the key strategies to obtain economies of scale.

Networking is done by franchising its business to individuals vvho are interested in collecting recyclablewaste. There are 4 types of franchiset (1) tricycle or Sa Leng, (2) smalFscale junkshop, (3) medium-scalejunkshop, and, (4) arge-sca e junkshops. Franchisees have to meet certain quaiifications, pay a franchisefee, and are trained in a program of waste separation skills (Appendlx 4). The franchise system ensures astable slrpply of large volume of recyclable waste.

Aliance wlth recycling industries, manufacturing indLJstries, ocal authorities, NGO5, communities, schools,and lenples a-e lkewise forged. Figure 6 i luslrdles the re,al ionsrips.

The concept of'waste bank' n schools and cofi)munities allows the pop!lation in a school or community toseparate recyclable waste, bring it to the bank they themselves established within the school or cornmunityin exchange for cash orcredit. The company then buys recyclable waste brought in or deposited in the bank,at the current market price quoted by the company. The bank can earn extra rcven{.le from the dlfference inbuying price from the members and se ling pdce to the company. The waste bank project is a joint effoftbehleen Wongpanit Company and the Phitsanulok N.lunicipality, Ten comm!nities in phitsanulok I\4unicipalityarea cooperated in the waste bank project in 1999. By the end of 2001,40 commLtnities were involved lnthis project,

FIGURE 5, BUSTNESS STRATEGIES OF WONGPANIT COMPANY

Schools,

Wongpaniicompany

Supporting factorsr' Domestic NGOafd academlc connecton- Inlernationaconnedion- Public re atons: Informaton to inc.ease understanding oi

waste separation by traningi ecturing, pub cauon, ry

The religious rite, Pha Pa Khaya, has also been ofhelp in thjs actjvity. Pha Pa Khaya is a Buddhist rjte wherepeople form groups and donate money and necessities to the monks. The concept of Pha Pa Khaya is forpeople in the group to bring recyclable waste collected from their households to the temple. The companybuys the waste and the money raised is donated to the monks. This activity brings in a Jarge amount ofwaste to be traded.

There, too, is the "waste market" which involvesthe concept ofan ad hoc market The location and the dateofthe market are announced in advance so that the people can bring in their recyclable waste to trade. Thecompanv buys the waste from the people who participate in the market

The success of netwo(king and alliance of the Wongpanit Company depends on suppon fa.i))ties such asdomestic NGos and academic connections. The company has close connection with many domestic NGOS 7

and the Naresuan Universty in Phitsanulok; internationa I connections with institutions from Germany, France,Laos, PDR, and Australias; public relatlons which disseminates information to jncrease the understanding ofwaste separation by providing training, givlng lectures, producing pub ications, and media exposufe.

Impact Of The Company

wongpanit Company's recyclable waste separation busi'less has made significant impact in the followingareas:

. Poverty reduction: The company createsjobsand lncomefor people, e g tricycle traders, sma ll scra pshops,junkshops, students, and people who are lnvolved in separating recyclable waste

. l4afket and value-added creation for secondary materialsl Waste now has value and can be traded.

. Cost reduction in recycling businessi Thecompany provides the collection and prlmarymodiflcationof recyclablewastein largevolumefor recyclin9 industries.

. EnvlronmentaJ protectlon: Savlng nat!ralcapital, e,g. forests, minerals, by providingse(o 'oary ra rer ia ls to nanufacrur , lglnduStries.

. Strengthenlng social cohesion in communities:ActiviUes such as waste banks, waste markets/and religious rites (Pha Pa Khaya), bring peopleto work together for a target beyond moneyDiscipline and consciousness in environmentalprotection and conservation can arise fromthese adivities.

Lessons Learned

Wongpanit's recyclable waste separation businesshas led to sus ta inab le deve lopment a t thegrassroots level by building cooperation amongstakeholders in a society: private sector,government sector, NGO sector, and people orcommunity sector (Figure 7).

FIGURE 7. CONTRIBUTION OF WONGPAI{ITCOMPANY FORSUSTAINAELE DEVELOPMENT OF THAILAND: WIN-WINSOLUTION

tor exanple, Energy & E.vronment Coordination Center (EnCo),Popu auon and Development Association (PDA)

For examD e, GTZ German-Thai -lechn calCooperaton, Internatonal

hdochina lntersecriof Deve oprnent hstitute (lDl), Magic Eve, and

Otrice of Technicl Assist nce (Thalland) Limited (IOTA), Paftlcipatory

For the private sector to participate in sustainable development' it needs the following:

. Newthinking, attitudes, entrepreneurship to\'\'ards waste' i e ' waste can b€ val-uable like minerals in the

iT:&Jffiitxtr:lltfl'fu:n#:Tt""'S?T in overcomino trre oirvsicarand socioeconomic limits

' ?ll1?T,iilll?L""li,:H?.xil,:ti,"'"ff1,[:'i:Jilffi[:i: i:"",'fl"J':1":LJ:$*1%X"*' r,",iJ::,lii:3,*l;;i:i:""'il,"'J':ll.TffTTlllff':T#i"1""f':1":;:'1ff::'ilil:'and

postve

CONCLUSION

;n:i:ililll.""y$T3:llf"iTiil1,il""ffF?:.iffi:1.""'$t'"fi.!il$il!;:iffiir::ilii!;;;;;;ffi ii.it! i",ecvcrine waste ror su'sllf !|; :_:nllr*:: ru ;,!T[il:,"$"tlHH:i:iilH:waste as a valuable material min-e, com0ln

:;";Tni1fil-niT"1:in:'",''"r:'l:'.;'*lu'.s'':i:'1;"',igq'i,'"1153'il"'?3;i"':l"l#H;',n"lUy*e"::,t"1' :iif ["qiiFJfi;,- #'olo#"'ii,X"t'1 "'"***' iltii:;:iif#t"n.i"#ii ii,Ll[J""-", ind brociures aboufnis busrness, pr;crng 'nfornation,,trarning pr

waste separatio4, p,lblc lectures In wasts tlti";tt'"" niit r'"ro"a him establsn gooowill for the co'npany

:::,'.',rr"f#"*:'iiilJ:llit*"J",f#":::l'ilH:g:[?i'#1Til;i"]?''&li;i'i3imuch Praise and appreciation

REFERENCES

|\4r"rstry of Science Technology and -tnvionment (lvlOSTE) 1999 ̂Crirefla

Stardards and App'oaches for

,":liru:"t ,m:r,l,l;:ll ru;:*l;n*l:1'1il""T'f:J::[''l"Jull.!1,1i)u"''"p-o'nn"opup"'porLl|ioTJSSntror o"pur,tent (PcD) 2o00a The complete circle ofcommunitv waste f4anagement Bangkokl

r" ffiyrl?S?HiJ$:lttllnt (PcD) 200ob "r4easures ror Manasins Packasine and Residual waste"'

-,Jl;;"t])'ffi,iiffi'r$,]lil)-'"'*'n""' Recvcrabre waste second edition Phitsanurok: Ratanasuwan

"Fi.:rli:il :ffi lr::','J'"il;:iHi":rydf{i1"1:i!i'"i.:Hii+}i,q''31'i}.ffi :*d,"J,il1*in*tr,'"1iYit'i"t':l'1"*l:**'Bl"J"1,T:',;,,!"'""J'"'HiTil::lfl' Nakornsawan'| New

Sernakorn (in Thai)'

;:*$tHi!m:l;":zl "i,'#Eki?l1'l#-llli-:T;ffil'::l'i'l ::Tle.mentary rntroduction

-"ljit"tir}i",""1'iiiiT"YJ"TF,i,Ti; Deveropment (wcED). 1s87. our common Future New York: oxford

lJniversiw Press.

APPENDICES

APPENDTX 1: BRAIICHES OF WONGPANIT COMPANYAS OFJANUARY' 2001

19/9, Nloo 3, Tha Thongsub distr ct, lvluang Dstr ct,

E ma l: !oi!Ddiralorl!!!:or[

a55-2e4 494055 231-733

735/4 5, Borofrtrai okarnat2, NaiMuanq Sub_d strict,lvl!a.q Oistr ct, Phiten!lok

a55.2I7 452

151, r"1oo 1, Udorndamri, NakomTh-iD stricr, phitsanulok 65120

055 389-0'14

iTrq-to, tloo:, anny r suo-

Phltlanulok 6s0002oo-12, r"loo Z Banqrakam sub_distrid, aangrakam D strict,Phiten!lok 65140

0ss-371-083i37r-27601-680-1408

tit i,roo 3, PLa chuhpoL sub-distrid, f4ua.9 D str ct, Phit$nulok

a53-262-21501-680-1781

Ei;I-@t Road towards central 01-97r-6055

Bmg (rarhuni-Phichit Road, Moo 8, 01'475-8017

160/15-!6l.4oo r, Wat Boast, WatBoast Dist ct, Phtsanu ok

055-291-5fi01-604-7895

198/5 S nqhawat Road, Bang (ranq

Kdndka as Dislr ct, sukotha

055-691-122

0s5-533-857532-396

ar-674 \052

01-953 6232

07-675 7607

035-213145

i-l1 Boromart Road, Pa sao slb.lish cr. NIuano D strlct, Uttaradlt6i-/2, Phitenu ok wanq rhonqRoad, i.,1!ang District, Phlts.u ok

liii-awat noaa, eans rbnq suod sirrct, MLanq Distflct, Ph@!q@L

055 241'313

Siharachdaechocha, Nai Nllanq5!b distrd, Muanq DrsB ct,Phit*n!rok

055-231 94401 aa6-4348

Wntl"n, Laot POC 007-205 5445

13/19, Nroo 5, Banq Bon 3 Road,Lak Song sub_district Bangka€Didrcr, Banqkok 101q0

02 806'5001 3

al 622 3521162/2 Dan Khlnthod_Cha Yaphoom,Dan Khunthod Slb diskct, DanKhu.tod D stricl Nakornrachasrma30210

044 339-04201-879 6039

APPENDIX 2I LIST OF RECYCLING FTRMSIN THAILAND

14aterialssanqthonachal Plasnc Co.Usahakham l4onokoiohaisam Plastic Co. Banokhunth en District. Bl4A

Yannawa District, BlvlASiam Plastic C\/clino Co. Meto Trade Centei Bl4ATha Thavee Plastic Co, 5dthuo.ad,t. B[1ATha Negorc Co. Bangpoo Indlstria Estate,

Sarrn Dee Co. lYuano District. Sarnothof akamKadas Thanatham Co. lYuanq Dishicr, SamuthordkarnSiam Craft InduskE Co. 8an Pono District. RachabuflT€nrna Co. Paf, Kred Dishict. NoithabuCe ox Co, 8an9p €€ Dlstrict,

Tha D€n Paoer Co,G ass Bangkok G ass Co, ThaiSamlth 9u ding,

Sukhumvlt. BlvlAGlass Oroanlzauon Rachblrana D skict, BMA

Metal slam t4eLa co. PdDlrutabath District, Sa€buLor Loha Thai l!€tal co. Bana 5u€ Distrlct, BMAS. Allov Allum num co Yannawa District. Bf4ANam H€na Steel Co. l'4uanq Dlstdct, Sanutho€karn

sauRcE: rNtERvrEw wnr MA soMrllA! woNctlaRoEfl 3Y sElsa! ctla4krt/aN' t2001: 23)

APPENDIX 3: PRICING LIST OF RECYCLABIE WASTE OF WONGP NIT COMP I{Y (AUGUST 5, 2001)

unt Baht244

l4etal scraos5,004.000.60

SALRCE: fuDTICPANN COWAIIYS PRICING BOARD

APPE DIX 4: CONDmONS TO OBTAIN FRANCHISE FROM WONGPANIT COMPANY(Sonthai Wongcharoen, 2001 : 125-126)

1. Qualifications of an Enterpreneur1,1 To be good, ethical, and honest1.2 To be famous1.3 Not to be bankrupted by the Court! Order1.4 Never to be convicted for theft, buying stolen things from thieves1,5 No loans that unable to payback1.6 Never committed in illegal work before

2. Locationr To be located on the main roads that can be easily distinguished by reguiar or temporarycustomers, nottoo far from schools, hotels, hospitals, and public parks. Ihe area for business operdtionis 2 to 10 rai (1 rai = 1,600 meters).

4 .

5 .

3.

5.1 A 5-day tralning program (50 hours)'5.2 Knowledge in all types of recyclable waste5.3 Prove methods, management proceou; ;;;lysis, marketing in buying' ma*eting,in sellinq' recyclable' -

wa.te ouving iitaustrils, production standards, acceptanie 'nspecting standards of the company'

6. Quality Inspedionl6,1 Expense for inspectors in every 4 months for 60,000 baht per year' to be paid in advance (3 times'

each time for 20,000 baht).6,2 Oetails in standard inspection, rypes of trading that need transparency by showing price list and

weighting scales/machines that can be ilspected6,3 cra;sifyiig separated recyclable waste in ordet

7, Necessary Machinesi

Investment capital: Three millions baht (as turnover cash money for trading), not includinq land, buildings'

cars, machines, permit fee, and others,

Franchise Feel A one-time payment of 250,000 baht

Conditions for know-how transfer and advisory:

7.1 Small paper pressing machine,5 HP size7.2 Large paper pressing machine, 40 HP size7.3 Metal cutting machine7,4 Cutter machlne7,5 Plastic crushlng machine, 50 HP size7.6 Plastic cleaning machine, 15 HP size7,7 Drying machine, 5 HP size7.8 Oven toaster

8. Area for Operation: The area of 2 to 10 rai

Procedure for obtaining franchise:

= 95,000 baht= 850,000 baht= 85,000 baht= 12,000 baht= 250,000 baht= 65,000 baht= 35,000 baht= 35,000 baht

1, lnterested persons have to pass the 5-day training program and practice in trial'

2. There will be a committee to inspect methods, stages of operation, and to approve the franchise'