ANALINDA S.

CORDOVA
Student, PhD in Agricultural Engineering

AE 824- Water Resource Economics

ILIHAN WATER SYSTEM DEVELOPMENT

Introduction
Water is essential for sustaining life and access to drinking water is a
fundamental need and a human right, vital for health and well-being. Water supply
system is an essential part of the over-all town planning scheme. One best
opportunity for avoiding consequential health risk lies in balanced planning for
urban expansion, with due consideration on water framework planning which is
vital to the interaction between urban-rural water supply and anticipating
development in the future.
In the case of the Philippines, the urban water supply was still inadequate.
Only about 70% of the urban population had access to safe water. In smaller
towns, the coverage was much lower than the national urban average and
increasing access to potable water facilities in small towns was a national priority.
As Bohol continues to grow and develop, it is imperative that a more
serious attention be focused on the long term sustainability of its water supply
sources. To improve the health and sanitation aspects of its people, providing
access to safe and abundant water is a necessary.
One of the project being proposed in the province of Bohol is the
development of water system in Inabanga.

Project Information

A. Project Title: Ilihan Water System Development

B. Project Site: Barangay Ilihan, Inabanga, Bohol
C. Project Duration: 150 Working Days
D. Total Project Cost: P2 M
E. No. of Beneficiaries: 350 Household
 The proposed project is a level II water system development. It includes
major activities like construction of reservoir, installation of pipes connecting to
the different communal faucet near the group of houses. The source of water in
these water system is located at barangay Ilihan.

Based on the data of survey, the water discharges of source is sufficient to

serve other barangays. The coverage of the water system are barangay Ilihan,
Mabuhay, U-ug and Ubuhan. Binaliw spring is about a half kilometer away from
the barangay center of barangay Ilihan. It is the source of the proposed project with
a water discharge of 1.15 liter per second.

To ensure the sustainability of the water source catchment, enrichment of

the existing forest trees around the source will be provided by planting indigenous
trees.

The project intends to produce a potable water for the needs of the
households in barangay Ilihan, Inabanga, Bohol and in the neighboring barangays.
It involves the following components: improvement of the source by improving the
spring box, construction of a collection tank, a transmission line, reservoir (50
cu.m.ferrocement tank) distribution line, pipe support in the transmission line,
pump and accessories, pump house, power line installation, chlorinator and
construction of 15 tap stand to be placed in the strategic location that will access to
the household.

Project Background

Inabanga is a 3rd class municipality and in considered 2nd poorest

municipality in Bohol. It has a total population of 40,687 people growing at a rate
of 1.27%. It has an agricultural area of 5,281.49 hectares planted mostly with and
fruit trees. The areas planted are not irrigated. Mostly of the barangays also have
very little access to potable water. Inabanga is waterless municipality.

Barangay Ilihan, Mabuhay U-ug and Ubujan are among the poorest
barangays in Inabanga Municiplity.Based on the data taken from the latest Local
Poverty Reduction Action Program Survey, most of their households are living
below the income threshold and food threshold. The problem of this barangays are
lack of potable water for drinking and for daily needs. More time and effort is
presently experienced by the residents of this barangays in getting drinking water
because the spring which they get water is very far and elevated area from the
water source. Individual households have to walk 30 minutes to 1 hour through a
rugged terrain to fetch water using their containers. Fetching water also take a lot
of time for children who attends school and do errands for the family.

Aside from this, people from these barangays suffer from illness caused
from unsafe drinking water. Diseases such as gastro-enteritis, diarrhea and other
water borne diseases are prevalent in the area with the children most affected.
The project if implemented, will provide safe, potable water to the people and will
minimize, if not eradicate, the occurrence of these water-borne diseases.

Target Beneficiaries

About 350 (1400 people) households are the direct target beneficiaries of
the project. The construction and establishment of the water supply system is
expected to address the problem currently experienced by Barangay folks by
providing safe, clean and uncontaminated water to its constituents. The realization
of this project will definitely reduce the health cases that are mainly caused by
continuous use of unsafe water from unprotected sources.

Water Demand and Rates

For estimating the water demand for Domestic use the daily value of 150
lpcd (0.15 m3) was adopted as average unit consumption. The following water rate
schedules are used in the evaluation of the project in accordance with the
guidelines of LWUA on water pricing:

Minimum 11-20 21-30 41-50 51-up

31-40 m3 Cost per 20 m3
Charge m3 m3 m3 m3
175.00 20.40 23.40 27.60 32.15 32.15 379.00

With the estimated number of people to be served, the computed monthly average
consumption per household is 18 m3 which is equivalent to P195.40.

Economic Analysis
 The total cost of the proposed water supply system is estimated to be P
1,360,000 and will come from a loan with an annual interest rate of 9.2% payable
for 10 years. The economic life of the project considered for the analysis is 25 yrs.

Breakdown of Cost

Direct Cost= 596,041.05

Labor Cost= 279,650.00
Total = 1,360,000

O & M @ 25 year-operation
Replaceme
Life span Repair Cost nt Cost Total
350,00
Pipes 10 yrs 2 150,000 2 0 500,000

Reservo 200,00
ir 15 yrs 1 100,000 1 0 300,000
800,000 @ 25
Sub-total yrs
O&M 32,000
@12,000/mont
Salaries 2 personnel h 288,000
Total 320,000

Financial Data

Period of payment,yrs 10
Amount of Loan ₱1,360,000.00
Interest rate 9.2%
Total Amount to be paid at the
end of the period ₱1,485,120.00
Total Annual revenue ₱819,000.00
Annual O&M+ Wages ₱320,000.00

Net Income(Revenue-O&M) ₱499,000.00

Benefit = Net Income

Benefit-Cost-Ratio Method

PW (B)
B /C=
I + PW (O∧M )

B 499 , 000.00(P/ A , 10 , 25)

=
C P
1,360 ,000+320 , 000.00( ,10 ,25)
A
B
=1. 06
C

The recommended improvements to the water supply system will bring

about numerous economic benefits to the study area. It can provide income to the
people’s Organization to sustain their services, equip the people’s organization
with the knowledge and technicalities in the operation and maintenance of the
water system management.

Social benefits

The project will benefit the 350 households to be served by the Level II
water system for them to have easy access to potable water, good , enjoy good
health and employment opportunities to the barangay people especially in the
construction stage and in maintaining the water system.