COST AND BENEFIT ANALYSIS:

‘NO SEGREGATION, NO PICK-UP’ POLICY

in Barangay Villa Kananga, Butuan City
Introduction

• Waste segregation is one of the major problems in the environment

• REPUBLIC ACT 9003 or the Ecological Solid Waste Management act of
2000
• an act providing for an ecological solid waste management program,
creating the necessary institutional mechanisms and incentives, declaring
certain acts prohibited and providing penalties, appropriating funds therefor,
and for other purposes
NO SEGREGATION, NO PICK-UP POLICY

• This would mean that instead of garbage collection house to house, it will be
the responsibility of every barangay for the collection of segregated garbage
from every household
• And be brought to their respective Material Recovery Facility
• Butuan City has an increasing population of 337,063 (Butuan.gov.ph)
• In October 1, 2016 Mayor Lagnada ordered a full implementation of the Policy
• Villa Kananga – 7,009 households
 Rationale
Effect of improper garbage waste disposal
• Pollute the environment
• Public health risk
• Running out of space of existing landfill
Current method of waste management
• Buried
• Burned
• Dump site
Some countries and their SWM
• USA
• GREAT BRITAIN
• SINGAPORE
 Rationale

The researchers will conduct a Cost Benefit Analysis on the implementation of the “No
segregation, no pick-up policy” in Barangay Villa Kananga such that the individuals and
households are responsible of their own waste/garbage and bring it to the barangay
designated Materials Recovery Facilities(MRFS). This will determine the costs of the residence
which requires them to segregate their waste/garbage and an additional fees for the
collecting of the segregated waste/garbage, as mandated by the policy.
Statement of the Problem

• What are the direct costs and benefits of the policy as implemented in the
part of the officials/implementers and residents?
• What are the indirect costs and benefits of the policy as implemented in
the part of the officials/implementers residents?
• Is the policy efficient in implementing its goal to maintain proper waste
segregation, so far?
 Significance of the Study
This research will benefit the following study:

The officers and leaders in Barangay Villa Kananga will be more active in addressing and
implementing the law for the proper of garbage trash and waste disposal and for the cleanliness
of the surroundings.
The residents will be responsible enough to do their duty as a concern citizen for the good of their
surroundings to have a favorable way of living away from sickness cause by improper waste
management.
The city services in collecting the garbage is much easier than before.
The children and for the next generation can see their concern about our environment that they
may fallow the good things that has happen.
Scope and Limitations

• The scope and limitation of the study will be Barangay Villa Kananga,
Butuan City together with its concerned residence and leaders who take
part into the implementation of the policy.
 DECRIPTION OF THE POLICY
• OBJECTIVE OF THE POLICY • COLLECTION
• to maintain cleanliness and preserve • Done at barangay level
the environment • 6 garbage collectors
• To discipline individuals and households • P10 garbage fee per household every
month
• SEGREGATION • two times a week
• Households shall be responsible • Disposed at a designated area (pick-up
point)
• Malata and Di-Malata

• PENALTY
• P500, P1000, P1500
• Community service
 Methodology
• Interview
• Primary Data
• Information on the perspective of the barangay officials and residents on the policy
in terms of their indirect costs and benefit

• Secondary data
• Information/data on the costs incurred by the barangay officials on the
implementation of the policy

• Net Present Value – to forecast the impact of the policy

 COST - IMPLEMENTORS
IMPLEMENTOR VALUE
Land used for pick-up point 450,000
Vehicles 7,154
-Motorcycle (3) 3,945
-Multicab 3,209
7-m Garbage Cover (P120.00/m) 840
Opportunity cost of implementers in
2,000
preparation of policy
Other Expenses
 Salary and Wages 31,700
 Repair and Maintenance 1,932.38
 Supplies for Garbage Collector 1,700
 COST - SOCIETY

SOCIETY VALUE

Households' expense for garbage

10
collection

Households' cost for additional garbage

40
bags
BENEFIT - SOCIETY
SOCIETY VALUE
Households will be able to save money
from recycling household waste into new 28
goods/materials
-plastic containers 5

-cellophane 1

-fertilizer 22
Households will be responsible in
managing their solid waste and promotes 500
cooperation among neighbors
Cleanliness in Barangay Villa Kananga 350
 BENEFIT - IMPLEMENTERS
IMPLEMENTORS
VALUE
Barangay officials are able to generate
revenue to operate other current or future
projects and/or expenses
-from fee collection 45,870

-from recyclable materials 1,410

~glass (P1.25/kg) 390 (79kg)

~plastic (P15/kg) 750 (50kg)

~scrap metal (P9/kg) 270 (30kg)

3% AND 10% DICOUNTING (10 YEARS)

𝑩𝟏 𝑩𝟐 𝑩𝟑 𝑩𝑻
• 𝑷𝑽 𝒐𝒇 𝒃𝒆𝒏𝒆𝒇𝒊𝒕 = 𝑩𝟎 + + + + ⋯+
𝟏+𝒓 𝟏 𝟏+𝒓 𝟐 𝟏+𝒓 𝟑 𝟏+𝒓 𝑻

𝑪𝟏 𝑪𝟐 𝑪𝟑 𝑪𝑻
• 𝑷𝑽 𝒐𝒇 𝒄𝒐𝒔𝒕 = 𝑪𝟎 + + + + ⋯+
𝟏+𝒓 𝟏 𝟏+𝒓 𝟐 𝟏+𝒓 𝟑 𝟏+𝒓 𝑻

• 𝑵𝑷𝑽 = 𝑷𝑽 𝒐𝒇 𝒃𝒆𝒏𝒆𝒇𝒊𝒕𝒔 − 𝑷𝑽 𝒐𝒇 𝒄𝒐𝒔𝒕𝒔

RESULTS – NET PRESENT VALUE

IMPLEMENTERS SOCIETY
3% = 138, 687 3% = -4,114,673
10% = -150,190 10% = -2,841,789.6
 RECOMMENDATION

• The researchers recommend this policy given it shall be improvised

• Dissemination of information
• Hiring more garbage collectors
• Setting a strict pick-up schedule

• Despite negative NPV, the policy will offer positive effects or benefits to everyone