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OVERVIEW
In the Philippines, coverage and quality of
water supply and sanitation suffer from
low investment rates, many small supply
systems, a fragmented sector structure,
and increasing pollution of water
resources.
Tariffs are mostly too low to recover costs,
resulting in poor utility performance.
Many supply systems are too small to
work efficiently.
Overview
Overview
OVERVIEW
ZONES
PROVINCE OF
BULACAN
PROVINCE OF
RIZAL
MANILA
BAY
LAGUNA DE
BAY
PROVINCE OF
CAVITE
Overview
Manila Water
Maynilad
%
98%
42%
Manila Water
PhP15.50
West Zone
Maynilad
PhP21.60
ACCESS
According
to
the
United
Nation
Development Programme (UNDP), the
aim of the Millenium Development Goals
(MDGs) is for 86.6% of the population to
have access to safe water supply and
83.8% to a sanitary toilet facility by 2015.
The UNDP ascertained that the targets will
likely be achieved, given the current trend.
Independent surveys describe a much
lower access rate. In 2000 only 63% of the
population had access to water supply.
SERVICE QUALITY
Continuity of Water Supply
In 2004, water supply was available on the
average as shown:
Maynilad : West Zone of Metro Manila : 18 hrs/day
Manila Water: East Zone of M Manila : 21 hrs/day
Wastewater Treatment
Only 5% of the total population is connected
to a sewer network.
The vast majority uses flush toilets
connected to septic tanks.
Since sludge treatment and disposal
facilities are rare, most effluents are
discharged without treatment.
According to the Asian Development Bank,
the Pasig River is one of the worlds most
polluted rivers.
In March 2008, Manila Water announced
that a WWTP will be constructed in Taguig.
Water Resources
Although water resources becomes scarce
in some regions and seasons, our country
as a whole has more than enough surface
and groundwater.
However, the neglect of a coherent
environmental policy led to the actual
situation, in which 58% of groundwater is
contaminated.
The main source of pollution is untreated
domestic and industrial wastewater.
Only one-third of our rivers are suitable for
public water supply.
Water Resources
It is estimated that in 2025, water availability
will be marginal in most major cities and in 8
of the 19 major river basins.
Besides severe health concerns, water
pollution also leads to problems in the
fishing and tourism industries.
The good news is our government
recognized the problem and since 2004 has
sought to introduce sustainable water
resources development management.
Water Use
In 2000, as a whole 28.52 billion m 3 of water
were withdrawn from various sources, of
which 74% were used for agricultural
purposes.
Industry used another 9%, leaving 17% or
4.8 billion m3 for domestic consumption,
resulting in an average water production of
175 liters per day per capita.
In 2004 sample of 45 water service
providers in the country, the NWRB found
an average consumption of 118 l/d/c
Water Use
The highest consumption was recorded in
the East Zone of Metro Manila with 232
liter per day per capita. (61 g/d/c)
Estrada Administration
According to the Medium-Term Philippine
Development Plan (MTPDP) 1998-2004, the
Estrada administration had these main
objectives concerning water:
create and independent regulatory agency,
develop a pricing mechanism that
considers cost recovery,
strengthen the implementation of
watershed rules,
encourage private participation in water
resources administration.
levels:
Service Provision
LGU-operated systems
Most households in our country are served by
their LGUs, either directly through a provincial,
city, or municipal engineering department or
through community based organizations
(CBOs), (cooperatives, Barangay Water &
Sanitation Associations (BWSAs), or Rural
Water & Sanitation Associations (RWSAs).
CBOs usually operate Level I and Level II
water supply systems with support from the
national government or NGOs.
Out of 4,800 LGU-operated systems, 3,100
are estimated to be at the barangay level.
Service Provision
Water Districts
In urban areas outside of Metro Manila, water
districts served 15.3 million people in nearly
700 cities and municipalities in 2003.
To form a water district, a local government
needs a confirmation by the LWUA, from which
it receives technical assistance and financial
support.
Although there is a certain autonomy from the
local government, it appoints the board
members, which is why water districts are often
exposed to political interference.
The model was introduced in 1973 however
since 1990 its formation has decreased
significantly.
Service Provision
Large private operators
In Metro Manila, the service has been
carried out by two concessionaires since
1997: The Manila Water Co. in the East Zone
and Maynilad Water Services, Inc. in the
West Zone.
Although the national government supported
Private Sector Participation (PSP) since
1990, there are few arrangements outside
Metro Manila.
Only joint ventures in Tagbilaran City and in
Subic Bay exist.
This lack of success may partly result from
the problems of the Metro Manila concession.
Service Provision
Small-scale independent providers
A significant share of the population in
urban areas receives services from smallscale independent providers.
Before privatization30% of the population of
Metro Manila depended on small-scale
independent providers.
In August 2007, 250 small-scale providers
formed the National Water and Sanitation
Association of the Philippines as a venue for
small-scale
private
water
providers
(SSPWPs) to share experiences and learn
from each other.
Financial Aspects
Tariffs
The fragmented sector led to different tariff
structures and levels according to the
respective management model.
The connection fees, which are charged in
most cases, are so high that they often
impede
new
connections
for
poor
consumers.
In 2004, the NWRB indicates an average
tariff of P13.65 /cu. m while the average
connection fee was P2,200.
Financial Aspects
Tariffs in LGU-operated Systems
Tariff levels and structures vary widely.
Most connections are not metered so that it
is impossible to charge tariffs depending on
consumption.
Although connection fees are common,
LGU usually charge no or very low tariffs.
The costs of providing service are usually
met by local governments.
Per NWRB records, an average tariff of
P8.00/cu. m for systems directly operated by
LGUs and P8.50/cu. m for cooperatives,
about half of the average tariff charged by
private operators and water districts.
Financial Aspects
Tariffs in LGU-operated systems
The fee for a new connection was
P1,128.00 and P2,300.00 for LGU-operated
systems and cooperatives, respectively.
Tariffs in Water districts
Tariffs increased notably in 1996.
Tariff structure is similar to the model used
in Metro Manila, with an average tariff for the
first 10 cu. m and increasing tariffs for
additional consumption.
At the end of 2006, the national average
tariff for 30 cu. m was P17.00, more than
double that of 1996 (P6.15/cu. m).
Financial Aspects
Tariffs in Water districts
The average fee for a new connection was
P2,585.00, somewhat lower than among private
operators.
Tariffs in Metro Manila
An initial tariff is to be paid for the first 10 cu. m
consumed, with increasing blocks for additional
consumption.
Furthermore, consumers connected to
sewerage pay an additional charge of 50% and
all users must pay 10% environmental
surcharge.
For new consumers, a connection fee is
charged, which was P6,300.00 in April 2007 in
the East Zone.
Financial Aspects
Tariffs in Metro Manila
Just before privatization the average tariff per
cu m was P12.20.
After the concession contracts came into force
in 1997, tariffs dropped to P2.35 in the East
Zone and P5.65 in the West Zone.
In 2006 the average tariff rose to P14.60 in the
East Zone and P20.20 in the West Zone (all
figures converted into real 2006 prices).
The NWRB found an average tariff of P16.45
per cu. m and an average connection fee of
P2,960.00 in 2004.
While tariff is highest among private operators,
the connection fee was higher within water
districts.
Financial Aspects
Cost Recovery
Poor cost recovery remains one of the key
challenges in the sector.
Although the problem has been recognized
by the national government and authorities
include targets to increase cost recovery, the
implementation of this objective remains
unsatisfactory.
The LGU-operated systems are not even able
to recover operation and maintenance cost
and they depend on local government.
Water districts mostly recover recurrent costs,
but most of them do not generate enough
financial resources to improve their services.
Financial Aspects
Cost Recovery
In Metro Manila, the fact that one of the two
concessionaires has gone bankrupt reveals
the sectors financial problems, even though
it was also caused by the Asian financial
crisis.
On the other hand, Manila Water makes a
modest income and coverage targets have
been partly achieved.
All of the loss-making providers were
operated directly by LGUs, and were mostly
characterized by a high share of NRW, poor
service continuity, low tariffs and low
coverage within their respective service area.
Financial Aspects
Cost Recovery
The five best-performing service providers
consisted of 4 water districts and one private
operator.
Investment and Financing
It is estimated that between 1983 and 2003.
approximately P3 - 4 billion were invested in
the sector per year, the bulk of which was
conducted to Metro Manila, although
compared to other Asian capital regions,
investment per connection of Manila is low.
The majority of public investment is channeled
through LWUA and MWSS, which accounted
for more than half of the total investment.
Financial Aspect
Investment and Financing
Private investment outside the capital region
remains limited.
External Cooperation
Asian Development Bank (ADB)
This year, ADB will decide on the proposed
Water District Development Project to
continue its long term cooperation with LWUA.
ADB contributes through MWSS New Water
Source Development Project, which was
approved in 2003 and will end in October
2008.
External Cooperation
Asian Development Bank (ADB)
ADB contributes US$3.26 million, whereas
MWSS provides US$1.71 million in order to
develop up to 3 water source projects for
Metro Manila and to improve financial
management as well as the accounting and
fiscal control systems of MWSS.
This year, studies for 2 water source
projects were already completed.
The project places emphasis on
environmental and social impacts.
External Cooperation
GTZ
The German development agency GTZ
supports the sector through the rural water
supply and sanitation program, designed to
improve the living conditions of the poor in
selected rural areas of the country.
The program supported the decentralization
plan of the NWRB and runs from 2006 to
2009.
The main program partner is the
Department
of
Interior
and
Local
Government (DILG)
External Cooperation
GTZ
The program has already achieved a
successful introduction of low-cost options
for sanitation, the construction of dehydration
toilets, and the first Filipino constructed
wetland, treating wastewater from about 700
households.
World Bank
The Work Bank supports the Filipino Water
supply and sanitation sector through the
following projects:
Manila Third Sewerage Project
END OF PRESENTATION
Acknowledgement
The source of the article presented is taken from
en.wikipedia.org/water supply and sanitation in the
Philippines.
The US Dollar-Peso rate conversion used in the
presentation is 1 US$ = P47.00
The resource person is open to any inquiry, correction or
modification that may be deemed necessary to rectify
errors or omissions in part or in whole that the article may
falsely claim.
Thank You