City explores mixed wastewater system as hotels resist STP requirement

As hotels in the city push back on a directive requiring commercial establishments to build their own sewage treatment plants (STPs) due to operational and financial burdens, the city government is exploring a mixed system approach to address the growing volume of wastewater while awaiting the implementation of a more comprehensive and long-term STP rehabilitation plan.
Under this mixed system, commercial establishments that can feasibly connect to the city’s existing sewer lines will continue to discharge their wastewater to the city’s treatment facility. For establishments unable to connect due to space constraints or high operational costs, they may either maintain modular on-site treatment plants or use a city-managed “on-call” septage collection service.
Atty. Rhenan Diwas, Head of the City Environment and Parks Management Office (CEPMO), explained during the Baguio City Council’s regular session on March 23, 2026 that the “on-call” system allows hotels, schools, and other establishments to have their septic tanks emptied by the city as needed, with sanitation fees applied for the service.
Diwas further explained that the city is simultaneously working on the rehabilitation and upgrade of its main STP to handle both domestic and commercial wastewater. Once completed, this facility will expand the number of establishments that can connect to a centralized system which will significantly reduce the need for individual STPs and ease the burden on smaller establishments.
This proposal came after concerns were raised by hotel owners during a meeting on February 10, 2026 where CEPMO informed them that the Environmental Management Bureau–Cordillera (EMB-CAR) requires compliance with wastewater treatment standards under Republic Act No. 9275 or the Philippine Clean Water Act of 2004. Under this directive, establishments with existing wastewater treatment plants (WTPs) must upgrade them by August 31, 2026, while those without WTPs are required to construct them by December 31, 2026.
Isabelle Barter of Venus Parkview Hotel said constructing and maintaining an STP is technically demanding and expensive. She said it requires skilled engineers and technicians, runs 24/7 consuming significant electricity, and even existing STPS like that of Olive Town Center face maintenance challenges due to the expertise required. She stressed that compliance is an ongoing operational burden rather than a one-time expense.
Barter also highlighted the logistical challenges of testing treated wastewater. Affluent must meet standards under RA 9275, but the nearest testing facility is in Clark, Pampanga. Each test costs at least P4,000.00 and requires controlled transport and biohazard handling, with delays possible if results are inconsistent.
Rather than opposing the requirement, Barter proposed that businesses would connect to a city-managed centralized STP system where they would contribute via a shared tax or fee to ensure uniform standards, efficient operations, and avoid duplicative costs.
Charito Barter of Olive Town Center likewise emphasized the high cost (between P3 million and P10 million depending on size and complexity) in constructing an STP and the lengthy construction timelines, citing their establishment’s STP which took over a year to complete.
Mark Flores of Hotel Cosmopolitan, representing smaller and older properties, said many hotels lack space for STPs. He said retrofitting portions of their structure may be unsafe and that a uniform requirement may not be feasible.
The hotel sector representatives argued that the 2026 compliance deadline is unrealistic given rising fuel prices and economic pressures.They reaffirmed their commitment to environmental protection and compliance with the law but stressed that technical, spatial, financial, and timing constraints must be addressed.
Engr. Wilbert Suanding of CEPMO clarified that the deadlines and requirements cited in letters sent to hotel owners did not originate from CEPMO, but from EMB-CAR. According to Suanding, CEPMO’s role was largely to relay or “translate” EMB’s directives into formal communication, such as the letters notifying establishments of compliance expectations.
Diwas added that the letters sent to hotel owners were primarily intended to demonstrate to EMB that the city is taking action, but this action does not signify immediate disconnection from existing systems, nor do they automatically trigger the construction of new STPs. Instead, these communications form part of a broader compliance strategy, leaving room for consultations, technical discussions, and adjustments to ensure that solutions are practical and effective for both the city and its commercial establishments.
However, Diwas said that if individual establishments operate their own STPs, regulation and monitoring fall under the jurisdiction of EMB. Consequently, the city loses direct oversight and control over wastewater management within its boundaries.
Diwas stressed that while the city does have a sewerage system and a registered STP, it is designed only for domestic waste and not commercial wastewater. Previously, some hotels were permitted to connect to the city’s STP, but current policies now restrict such connections, with some establishments even being ordered to disconnect.
He cited the city’s Environment Code of 2016 (Ordinance 18-2016) which mandates that establishments generating 12 cubic meters of wastewater per day or more must have their own STP or onsite treatment system. He said the DENR is now using this local ordinance as a tool to enforce compliance against the city itself, complicating both enforcement and regulatory oversight.
Meanwhile, Vice Mayor Faustino Olowan emphasized the need for hotel owners, school administrators, and other business establishments to coordinate with CEMPO and work collaboratively to address wastewater management issues.
Recognizing the complexity of the matter, the Baguio City Council moved to convene a forum with EMB-CAR in one of their regular sessions to discuss and address wastewater management challenges.
The city is currently planning a major rehabilitation of its STP to address capacity and compliance issues, with a total projected cost of P1.2 billion.
According to Diwas, the city has applied to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) for P500 million to fund Phase 1 which aims to upgrade the facility’s capacity to approximately 7,000 cubic meters per day. Additional P500 million funding will be sought from the Department of Public Works and Highways (DPWH) under the National Sewerage and Sanitation Master Plan (NSSMP) to increase the total capacity to 12,000 cubic meters per day.
Phase 1 will focus on treating the existing sewage flow while the city continues to secure resources for the full-scale upgrade. The project is now included in the City Development Council (CDC) 2024 plan, following the preparation of a new feasibility study to replace the outdated previous one.
The city’s original proposal to rehabilitate the outdated STP was delisted from the Department of Economy, Planning, and Development (DepDev) pipeline, primarily due to missed submission deadlines and delayed city council approval. The project was initially valued at USD 46.99 million, with USD 31.85 million planned to be financed through a loan and USD 14.14 million expected from the city’s own funds. **Jordan G. Habbiling