Country Paper

Philippines
Asian Water Development Outlook 2007
© 2007 Asian Development Bank
All rights reserved. Published 2007.
The views expressed in this book are those of the authors and do not
necessarily refect the views and policies of the Asian Development Bank or
its Board of Governors or the governments they represent.
The Asian Development Bank does not guarantee the accuracy of the data
included in this publication and accepts no responsibility for any conse-
quence of their use.
Use of the term “country” does not imply any judgment by the authors of
the Asian Development Bank as to the legal or other status of any territorial
entity.
o
Country Chapter – Philippines
1
Geoff Bridges
Executive Summary
Some two billion Asians—66% of the Asian
population (or nearly 75% of all those in the
world without such facilities)—lack access to
adequate sanitation. Many Asian countries face
huge financial costs to clean up the environment
because of a lack of investment in sanitation,
leading to massive pollution of surface and
groundwater. The cost of cleaning a river already
polluted with industrial waste or sewage is far
higher than the cost of the infrastructure to
dispose of the pollutants properly. Water and
sanitation must get top priority from political
leadership everywhere; postponing action is
not an option because to delay will cost a great
deal more. This key message was conveyed by
the Asian Development Bank (ADB) at the
Stockholm World Water Week, 12–18 August
2007.
2
Sector Framework
The Department of Environment and Natural
Resources (DENR) is the line ministry
responsible for implementing water sector
legislation, but administration is by the National
Water Resources Board (NWRB) of DENR.
The 1976 National Water Code and the Clean
Water Act of May 2004, which consolidated
different fragmented laws on water resources
management and sanitation, define policies for
pursuing economic growth within a framework
of sustainable development to manage and
protect water resources effectively. The Provincial
Water Utilities Act and Local Water District Law
authorize the formation of local water districts
and local water utility authorities. NWRB is the
economic and water resources regulator. Several
other government entities are in the water sector,
fragmenting sector governance. While demand is
increasing rapidly, fragmented management and
weak enforcement and planning affect the water
sector, with many small providers having neither
the operational scale nor the autonomy to be
efficient.
National Water Strategy and Policies
Strategy and policies are summed up in the 2004
Clean Water Act and the Implementing Rules
and Regulations of April 2005, which covers the
establishment of a water quality management
(WQM) system through the establishment
of WQM Areas supported by a WQM Fund,
development of a National Sewerage and Septage
Management Program, and establishment of
a wastewater permit and charging system. An
innovative and emerging financing mechanism is
the Philippine Water Revolving Fund.
Water Resources Management
Overall, the country has abundant surface water
resources, although droughts and seasonal variations
mean some areas experience low per capita water
availability. Upstream water quality of most rivers
^
Asian Water Development Outlook 2007
remains suitable for sustaining freshwater ecosys-
tems and for domestic purposes, while downstream
water quality is generally poor and unsuitable for
domestic purposes. Water quality is poorest in urban
areas, the main sources of pollution being untreated
discharges of industrial and municipal wastewater.
Although groundwater resources are generally
abundant, over-abstraction and poor environmental
management of extractive resource industries has
polluted downstream water courses and aquifers,
caused siltation, and lowered water tables. Only
about 33% of river systems are classified as suitable
public water supply sources, and up to 58% of
groundwater is contaminated. Projections of future
water requirement suggest water availability will be
unsatisfactory in 8 of the 19 major river basins and
in most major cities before 2025. Sixteen rivers are
considered biologically dead during dry months.
Water resource management is now a top priority,
and government efforts are focused on environ-
mental issues and implementation of water sector
legislation to perform the integrated water resources
management strategy under the Medium-Term
Philippine Development Plan (MTPDP).
Water Supply
Characterized by widespread illegal connections
and high level of nonrevenue water, the Manila
water supply system was owned and operated
by the state-owned Metropolitan Waterworks
and Sewerage System (MWSS) until 1997 when
water services were privatized. Manila Water
Company took over operation in Metro Manila’s
East Zone and Maynilad Water Services in the
West Zone. Outside Metro Manila, urban water
supply is provided by about 500 water districts
and more than 1,000 local government-operated
water utilities. Where no public sector service
providers exist, informal small-scale independent
providers (SSIPs) satisfy unmet demand. The
size of the SSIP market is significant—in Metro
Manila it was estimated that prior to privatiza-
tion, some 30% of the population depended on
SSIPs.
Sanitation
Less than 4% of Manila’s population is connected
to the sewer network, with many high-income
households constructing their own facilities. Flush
toilets connected to septic tanks are widely used,
and often serve large housing developments.
However, sludge treatment and disposal facilities
are rare, resulting in indiscriminate disposal of
untreated or poorly treated effluent into the Pasig
River, one of the world’s most polluted rivers.
MDG Target Progress
World Health Organization/United Nations
Children’s Fund (WHO/UNICEF) data for
2004 indicate that overall water supply coverage
achieved was 85% (87% urban and 82% rural),
with overall sanitation coverage 72% (80% urban
and 59% rural). Progress on meeting Millennium
Development Goals (MDGs) by 2015 needs to
be improved, with urban water off-track and
regressing (coverage decreased from 95% in 1990
to 87% in 2004), rural water and rural sanitation
off-track but expected to hit the target after
2015, and urban sanitation on-track for 2015.
Future Plans
The MTPDP 2004–2010 sets a target of 92–96%
for safe drinking water, and 86–91% for access
to sanitary toilet facilities, goals that exceed the
2015 MDG targets. The MTDPD includes a
strong commitment to cost recovery, adoption of
commercial principles (including private sector
involvement), and a strong commitment to
decentralization of responsibilities to local govern-
ments. Over the last two decades, annual capital
expenditure in the water and sanitation sector has
fluctuated around P3–4 billion, and almost entirely
allocated to water, compared with the estimated
P6–7 billion needed to achieve the sector MDGs.
Utility Performance
Levels of nonrevenue water are very high in most
utilities, typically in excess of 30%, and in the
case of Maynilad well over 60% and reflected in
the unit consumption rates. Hours of supply are
generally in excess of 18 hours and some have
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24-hour supply. There are major differences in
the performance levels of large and small water
utilities. Most utilities cover operating and
maintenance costs, with Manila Water perform-
ing well and a good surplus generated. Most
water utilities charge connection fees beyond the
capacity of poor consumers to pay for them.
Main Issues and Key Challenges
The main issues and key challenges are:
• Disparities in coverage across regions.
• Low tariffs and poor revenue generation lead
to under-investment; with many utilities’
revenue not even covering recurrent costs,
especially for sanitation.
• Poor utility performance due to lack of
institutional capacity and investment.
• Weak and fragmented institutional and
regulatory framework, with regulatory
functions controlled by different entities and
making enforcement difficult.
• Increasing pollution and depletion of water
resources.
• Need to increase sewerage interception and
treat all raw sewage.
• Need to recognize the role and formalize
the status of SSIPs until such time when the
formal utility can provide services to SSIP
customers.
• Connections for the urban poor (no connec-
tion fee or subsidized fee).
• Poor technical performance and service levels
in many utilities.
Future Vision
The Philippines needs to increase annual water
sector investments about tenfold to some P40
billion or at least to 1% of GDP to meet MDG
and legislative commitments, and also must focus
on tariff reform, increased wastewater treatment
capacity, increased coverage of water sector
services, greater water conservation, and effective
implementation of the Clean Water Act.
Introduction
The purpose of the Asian Water Development
Outlook (AWDO) is to enable leaders and
policy-makers to understand their respective
national situations, to appreciate their present
sector performance and the key issues in their
country, and, by learning from the experiences of
other countries, to encourage them to take effec-
tive action to tackle those issues. Achievement of
these goals has been constrained by the limited
availability of data and published current status
information, as well as detailed future plans. The
contents of this country chapter focus primarily on
the water supply and sanitation subsectors, cover-
ing other subsectors, such as water resources, only
in more general terms.
Despite difficult political circumstances,
the Philippine economy has remained strong
in recent years. Moderate economic growth
was achieved in 2006, gross domestic product
(GDP) rising by 5.4%. GDP growth is expected
to remain at 5.4% in 2007 and then increase
slightly to 5.7% in 2008. Per capita gross
national product was US$1,300 in 2005, and
per capita GDP growth was 3.2% in 2006, and
is projected to increase by 3.2% in 2007 and to
3.6% in 2008. Inflation was 6.2% in 2006, but
is forecast to fall to 4.8% in 2007, rising again
to 5.9% in 2008.
3
The country had a Human
Development Index (HDI) value of 0.763 in
2004 (0.722 in 1990), and was ranked 84th
worldwide in terms of HDI. The 2004 GDP
per capita was US$4,614 PPP
4
and its Human
Poverty Index was 15.3%.
5
Urbanization is sig-
nificant and increasing rapidly, with 62.6% of the
population living in urban areas in 2005 (48.8%
in 1990), the annual 1990/95 urban growth
rate being 4.30%.
6
In terms of water resource
availability, the per capita total actual renewable
water resources (TARWR) value reduced from
6,332 cubic meters (m
3
)/year in 2000 to 5,880
m
3
/year in 2005, with total water used being 6%
of TARWR.
7
Of the 28.52 billion m
3
of water
withdrawn in 2000, the proportion of withdraw-
als by agriculture, industry and domestic users
was 74%, 9% and 17%,
8
respectively.
Water quality
is poorest in
urban areas, the
main sources
of pollution
being untreated
discharges of
industrial and
municipal waste-
water
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c
Asian Water Development Outlook 2007
Sector Status and
Performance Overview
Sector Framework
The Department of Environment and Natural
Resources (DENR) is the line ministry respon-
sible for implementing water sector legislation.
This function is effectively administered by
the National Water Resources Board (NWRB)
of DENR, although NWRB has only a small
cadre of staff, limited financial resources and no
regional presence. Relevant legislation falling
in the remit of NWRB is the 1976 National
Water Code (Presidential Decree 1067) and
the Implementing Rules and Regulations (last
amended and approved in April 2005) of the
Clean Water Act (Decree 1152) of May 2004,
which defines policies for pursuing economic
growth within a framework of sustainable
development to manage water resource quality
effectively, while protecting, preserving and
improving them. The Clean Water Act was the
first attempt to consolidate different fragmented
laws in the Philippines on water resources
management and sanitation. The Provincial
Water Utilities Act and Local Water District Law
authorize the formation of Local Water Districts
and Local Water Utilities Administration
(LWUA) to operate and manage water systems
locally. The provision of basic services, such
as water and sanitation, was devolved to local
government in 1991. However, there are severe
institutional and technical capacity constraints
within many local government entities to under-
take such devolved functions. As well as being the
regulatory body for all water resources, NWRB
is also the economic regulator. Responsibility
for LWUA, have recently come under NWRB’s
jurisdiction, to remove the anomaly of them
being both financier and regulator of their water
districts. To improve the economic regulation
of private water utilities under its jurisdiction,
NWRB sets their tariffs using the 5-year Return
on Investment (ROI) method. There are several
other government entities involved in the water
sector, as shown in Figure 1 below, illustrating
the considerable fragmentation that characterizes
sector governance.
While demand is increasing rapidly,
fragmented management and weak enforcement
and planning continue to affect supply. In 1995,
a national water crisis was declared, which
prompted the passage of special legislation, the
Philippine Water Crisis Act. One of the more
important features of the Act was the provision
for stronger private sector participation in the
financing and operation of water supply services,
in particular in Metro Manila. This eventually led
to the privatization of water supply in Manila.
10
In 2004, President Gloria Macapagal-Arroyo
formulated and announced her Ten-Point Agenda
which includes the “provision of power and water
supply to all barangays.” The President appointed
the National Anti-Poverty Commission (NAPC)
to oversee the Government’s commitment to
provide safe water supply and sanitation services
to the entire country, through the President’s
Priority Program on Water (P3W). The program
aims to: (1) increased access to water supply and
sanitation services coverage by 50%; (2) reduced
incidence of diarrhea by 20%; (3) improved
access of the poor to water supply and sanitation
services by at least 20%; and (4) 100% sustain-
able operation of all water supply and sanitation
projects constructed, organized and supported
by the program. Funding for the P3W is coming
largely from the public funds of the Department
of Public Works and Highways (DPWH). NAPC
estimated that P5.6 billion
11
would be needed to
achieve these targets, of which P2 billion would
be required in Metro Manila alone. The National
Economic and Development Authority (NEDA)
reported in its Comprehensive and Integrated
Infrastructure Program that the water resources
sector would require 15% of the P1.7 trillion
investment
12
required during 2006–2010.
13
The water supply and sanitation sector is
fragmented, with numerous small providers
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||o 'o´ ooouvu|o| covo|uuo so|vou |, ||o u|||,
.
Cou|||, C|uo|o| – |||oo|os
that have neither the operational scale nor the
necessary autonomy from political interference
to be efficient. This is demonstrated in Table 1
below.
14
The situation is compounded by the fact
that many operate under different regulatory and
financing regimes. On average, two out of three
people in the rural areas lack access to potable
water, significantly higher than the Asian average
of one in three people. The provision of water
supply and sanitation facilities in rural areas is,
therefore, a priority for the Government.
The Department of Health plays an
important role in setting water quality standards,
and in the monitoring and control of drinking
water quality in urban and rural areas.
National Water Strategy and
Policies
Strategy and policies are summed up in the 2004
Clean Water Act and the Implementing Rules
and Regulations of April 2005, which covers the
establishment of a water quality management
(WQM) system through the establishment
of WQM Areas supported by a WQM Fund,
development of a National Sewerage and Septage
Management Program through the Department
of Public Works and Highways, and establish-
ment of a wastewater permit and charging
system. DENR is nominated as the lead agency
for implementation of the legislation, the main
aspects of which are to:
15
• streamline procedures to prevent and control
water resource pollution,
• promote environmental strategies and
control mechanisms,
• formulate a holistic national WQM pro-
gram,
• formulate an integrated WQM framework,
• promote environmentally friendly commer-
cial and industrial processes and products,
• encourage self-regulation of private
industrial enterprises through incentives and
market-based instruments,
• provide comprehensive management
program to prevent pollution,
• promote public education and information
to encourage active participation,
• formulate and enforce accountability for
adverse environmental impacts, and
• motivate civil society to address environmen-
tal issues at the local and national level.
Key:
NEDA NationalEconomicandDevelopmentAuthority
DPWH DepartmentofPublicWorksandHighways
NWRB NationalWaterResourcesBoard
NIA NationalIrrigationAdministration
DENR DepartmentofEnvironmentandNaturalResources
PNOC PhilippineNationalOilCompany
NPC NationalPowerCorporation
DOH DepartmentofHealth
DILG DepartmentoftheInteriorandLocalGovernment
LWUA LocalWaterUtilitiesAdministration
LGUs LocalGovernmentUnits
MWSS MetropolitanWaterworksandSewerageSystem
Figure 1: Major Institutions involved in the Water Sector
9
Table 1: Market Shares of Urban and Rural Populations by
Primary Water Source (%)
Type of Provider Urban Rural
LGUs/CBOs 40 65
WaterDistricts 30 10
PrivateOperators 10 —
SSIPs 15 10
Self-supply 5 15
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SS|| = suu||scu|o |uooo|uo|| o|ovuo|¦
An innovative and emerging financing
mechanism is the institutionalization of the
Philippine Water Revolving Fund (PWRF). The
Clean Water Act encouraged the establishment
of the PWRF as an alternative financing mecha-
nism.
16
o
Asian Water Development Outlook 2007
Water Resources Management
Overall, the Philippines has abundant surface
water resources, although droughts and seasonal
variations in river flows mean that some areas
experience low per capita water availability.
Upstream water quality of most rivers remains
suitable for sustaining freshwater ecosystems and
for domestic purposes while downstream water
quality is generally poor, unsuitable for domestic
purposes, and causing freshwater ecosystem
decline. Water quality is poorest in urban areas,
the main sources of pollution being untreated
discharges of industrial and municipal wastewa-
ter. Although groundwater resources are generally
abundant and of adequate quality for domestic
purposes, poor environmental management
of extractive resource industries (uncontrolled
forestry, mining, minerals extraction, etc.) has led
to pollution of downstream water courses and
aquifers and reduced capacity due to siltation.
Over-exploitation is also lowering water tables,
leading to increasing saline intrusion, and causing
subsidence. Depletion of groundwater resources
is an increasing problem in Metro Manila and
Metro Cebu.
17
The majority of solid waste
disposal and landfill sites are poorly operated and
maintained, permitting leachate to pollute some
water resources.
The rapid urbanization of the Philippines,
with more than 2 million persons being added
to the urban population annually, is having a
major impact on water resources. As a result,
water quality is worsening with only about 33%
of river systems classified as suitable sources for
public water supply, and up to 58% of ground-
water contaminated and requiring treatment.
18

Projections of future water requirements suggest
that water availability will be marginal or
unsatisfactory in 8 of the 19 major river basins
and most of the major cities before 2025. The
ability of groundwater to meet incremental future
water supply sustainably in urban areas is also
very limited, amounting to only 20% of the total
water demand in the 9 main urban centers by
2025. Among the priority sector constraints are:
(i) sector under-funding; (ii) slow promulgation
of environmental legislation, including the Water
Resources Management Act and the creation of a
National Environmental Management Authority;
(iii) insufficient enforcement of existing legisla-
tion; (iv) weak legal and regulatory framework for
environmental impact assessments; (v) slow pace
of decentralization of environmental and natural
resource mandates; (vi) ongoing effects of timber
logging; (vii) poor inter-agency coordination; and
(viii) incomplete data for planning and manage-
ment. Actions that need to be implemented to
meet these constraints are:
• integrated approach to planning and
management of land and marine resources,
• integrating environmental sustainability
principles into agrarian land reform,
• provision of urban environmental infrastruc-
ture to secondary cities,
• strengthening sustainability of commu-
nity–based resource management,
• strengthening biodiversity conservation,
• financing environmental and natural
resource management, and
• environmental information needs.
Pollution of water resources is decreasing
the primary productivity of many water bodies,
and heavy inorganic pollutant loads have made
water increasingly a threat to life. Of the 457
water bodies classified by DENR, only 51%
meet the 1996 water quality standards. Sixteen
rivers are considered biologically dead during dry
months; 48% of pollutants arise from domestic
waste, 37% from agricultural waste, and 15%
from industrial waste. Solid waste generation in
Metro Manila is estimated at 5,345 tons/day, and
is expected to double by 2010. Only 65–75%
of the waste generated is collected, with only
13% of that recycled, and the remainder just
thrown anywhere, but particularly into creeks,
threatening health and increasing flooding. Some
700 industrial establishments in the Philippines
generate about 273,000 tons of hazardous waste
annually, but at present there is no integrated
treatment facility in the country to deal with it,
although there are some 95 small to medium-
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zo|o
Only about 33%
of river systems
are classified as
suitable public
water supply
sources
Up to 58% of
groundwater is
contaminated
'
Cou|||, C|uo|o| – |||oo|os
scale hazardous waste treatment facilities.
Approximately 50,000 tons of hazardous waste
are stored on or off-site due to lack of proper
treatment and landfill facilities.
19
Water pollution, wasteful and inefficient use
of water, saltwater intrusion, high nonrevenue
water levels due to leaks and illegal connections,
and denudation of forest cover, are placing major
strains on water resources. Combined with grow-
ing population pressures, it is becoming more
difficult to provide basic water services. The 1998
Japan International Cooperation Agency’s water
resources study projected that in the absence of
an effective water resources management program
being put in place, the country’s water resources
would be at a critical stage by 2025.
20
The Government now recognizes that water
resource management needs to be a top prior-
ity,
21
and is focusing its efforts through DENR
(and NWRB) as the line ministry with central
responsibility for environmental issues and imple-
mentation of water sector legislation. The general
integrated water resources management (IWRM)
strategy
22
to be adopted under the Medium-Term
Philippine Development Plan (MTPDP) is based
on the following actions:
• Devolve decision-making to new or
strengthened river basin organizations and
Water Resources Regional Councils.
• Pursue raw water pricing to effect efficient
allocation and conservation.
• Maintain and sustain data collection and a
water resources database.
• Conduct water assessments in terms of
availability and demand for prioritized water
constraint areas.
Water Supply
Prior to 1997, the Manila water supply system
was owned and operated by the government-run
Metropolitan Waterworks and Sewerage System
(MWSS), and was characterized by a badly dete-
riorated network, widespread illegal connections,
and 63% nonrevenue water. On 1 August 1997,
two private concessionaires took over operation
of the water and sewerage system, namely, Manila
Water Company, Inc. (MWCI) in the East Zone
and Maynilad Water Services, Inc. (MWSI) in the
West Zone. Both concessionaires struggled at the
start of the concessions due to the Asian financial
crisis, during which the peso was devalued by
about 50%, and also as a result of the effects of a
severe El Niño. Considerable political and public
criticism compounded the tackling of technical
issues by both concessionaires. Manila Water
is now modestly profitable, but Maynilad has
struggled to make a profit and its future has been
the subject of intense speculative activity as it seeks
to restructure. Technical achievements of Manila
Water include reduction of nonrevenue water from
63% to 25%, 24-hour water availability increased
from 26% to 98% of the population in the central
distribution system, replacement or rehabilitation
of 2,000 kilometers of pipelines, expansion of
customer base from 3 million to 5 million, half of
which belong to low-income groups, and expan-
sion of sewage treatment capacity from 44 to 85
million liters per day.
MWSI, which was formerly a partnership
between Benpres Holdings Corporation and
Ondeo Water Services, Inc. (formerly Suez
Lyonnaise de Eaux), went through a change of
ownership towards its 10th year, with the consor-
tium of D.M. Consunji, Inc. and Metro Pacific
Investments Corp. acquiring 83.97% of stakes
previously held by the Metropolitan Waterworks
and Sewerage System due to a debt-capital conver-
sion. Lyonnaise Asia Water Limited (LAWL) got
the 16% share. DMCI-Metro Pacific Consortium,
won the right to continue operating the West
Zone concession in December 2006 after it put in
a whopping $447 million bid for the 84% stake
/uu|oss|u ||o c|u||o|uo o| o|ovu|u ooou vu|o|
|o c|ovuou s|uu couuu||os
Widespread il-
legal connections
and high level
of nonrevenue
water
]0
Asian Water Development Outlook 2007
of the Metropolitan Waterworks and Sewerage
System in Maynilad. The consortium formally
took control of Maynilad in 24 January 2007.
Near Manila, the former Subic Bay naval
base and the neighboring city of Olongapo are
covered by a 25-year lease contract awarded
in 1997 after the completion of a build-oper-
ate-transfer (BOT) scheme to improve the
dilapidated water facilities and to make better
use of limited water supplies. The leaseholder
(Subicwater) is a joint venture agreement
between two private companies and two local
government entities. Through the agreement,
the two government agencies retain ownership
of the system assets, and earn lease payments on
the infrastructure and profit dividends of 20%
and 10%, respectively from Subicwater. Initially
unregulated, the Subic Bay Water Regulatory
Board was created in January 2001.
Outside Metro Manila, urban water supply
is mainly provided either by about 500 water
districts, under the authority of the Local Water
Utilities Administration (LWUA), or by more
than 1,000 local government-operated water
utilities. Many of the small water districts and
local government-operated water utilities lack
staff and skills to prepare new projects.
Where there are no public sector service
providers, the informal sector has stepped in to
meet unmet demand. Small-scale independent
providers (SSIPs) cover a diverse range of water
operators that serve different groups of custom-
ers. The size of the SSIP market is difficult to
estimate but is significant as a substantial propor-
tion of the population does not have access to
formal piped service provision. In Metro Manila
alone it was estimated that prior to privatization,
some 30% of the population depended on SSIPs,
with a similar proportion catered for in this way
in Cebu, the second largest city in the country.
However, SSIPs are not subject to any regulatory
performance checks, do not have to comply
with quality standards, and they miss out on the
benefits of economies of scale on tariff levels.
Potable water quality is governed by the
National Standards for Drinking Water. However,
many water distribution networks operate
intermittently and do not provide a service to
everyone in the area of jurisdiction of the water
utility. Under such circumstances, the quality of
delivered water at the customer tap can fall well
below the necessary standards. Furthermore, where
consumers rely on service provision from SSIPs,
there is no regulatory control over water quality.
Many people resort to in-house treatment of their
water supply, although this coping mechanism
should never be considered as equivalent to an
improved drinking water supply.
Sanitation
In the sanitation sector, less than 4% of Manila’s
population is connected to the sewer network,
with high-income households responding by
constructing their own facilities. Flush toilets
connected to septic tanks are widely used, and
often serve large housing developments. Around
40% of households now have on-site latrines. It
is estimated that there are more than 1 million
septic tanks in Manila. However, sludge treat-
ment and disposal facilities are rare, resulting in
indiscriminate disposal of untreated or poorly
treated effluent into the Pasig River. Some 10
million people discharge untreated waste into the
Pasig, which, combined with the 35 tons of solid
waste also deposited in it annually by squatters
living in makeshift shelters on the river bank,
makes it one of the world’s most polluted rivers,
with human waste accounting for 70% of the
pollution load.
23
In rural areas, heavy reliance is
placed on latrines for sanitation.
As well as forcing people to adopt expensive
and inconvenient coping mechanisms to meet
their basic water and sanitation needs, poor water
and sanitation services inevitably increase disease
and illness. Diarrhea and cholera outbreaks are
not uncommon in the Philippines as a result of
lack of access to basic water services. /u|uuo |u||o|
Less than 4% of
Manila’s popula-
tion is connected
to the sewer
network
]]
Cou|||, C|uo|o| – |||oo|os
MDG Target Progress
World Health Organization/United Nations
Children’s Fund (WHO/UNICEF) data for
2004 indicate that overall water supply coverage
achieved was 85% (87% urban and 82% rural),
with overall sanitation coverage 72% (80% urban
and 59% rural).
24
Of the 87% urban water supply
coverage, 58% was through house connections,
the equivalent figure for rural water supply being
23%. Coverage by public standpipes was 11.1%
urban and 15.2% rural (2003 data). For the 80%
urban sanitation coverage, 7% was due to sewerage
connections, while for rural sanitation sewerage
connections only accounted for 2% of the total.
25

Progress on meeting the Millennium Development
Goals (MDGs) for water by 2015 needs to be
improved, with urban water off-track and regress-
ing (coverage decreased from 95% in 1990 to
87% in 2004
26
), rural water and rural sanitation
off-track but expected to hit the target after 2015,
and urban sanitation on-track to meet its target by
2015. The improvement in urban sanitation cover-
age is very good, increasing from 66% in 1990 to
80% in 2004, and in the rural sector from 48% in
1990 to 59% in 2004. However, coverage by itself
as a monitoring indicator without an assurance
that existing facilities continue to give appropriate
service, in particular the quality of water delivered
at the customers premises or the need to effectively
treat sewage, becomes less meaningful. Coverage
figures are therefore likely to overestimate the true
provision of acceptable improved facilities for both
water and sanitation.
Future Plans
The MTPDP 2004–2010
27
sets a target of
92–96% for safe drinking water, and 86–91%
for access to sanitary toilet facilities, goals that
exceed the 2015 MDG targets.
28
The general
strategy of the MTPDP, which has not changed
significantly over the years, includes a strong
commitment to cost recovery in the sector, the
adoption of commercial principles (including
private sector involvement in the management
and financing of services), and a strong commit-
ment to decentralization of responsibilities to
local governments. Over the last 2 decades annual
capital expenditures in the water and sanitation
sectors have fluctuated around P3–4 billion, and
almost entirely allocated to water, compared with
the estimated P6–7 billion needed to achieve the
sector MDGs. Implementing the provisions of
the 2004 Clean Water Act will require additional
annual expenditures of P35 billion.
29
Governance
Governance can be considered in several ways,
ranging from the transparency of government
and business dealings, the efficiency of the
business process (delays in project implementa-
tion), to the implementation of regulations and
sector performance, e.g., nonrevenue water.
Such assessments are necessarily fairly subjective
and so to provide an overall indication the
corruption perceptions index (CPI) produced
by Transparency International will be used as a
proxy indicator. In 2006, the CPI score for the
Philippines was 2.5, making it 121
st
in the overall
ranking and 18
th
in the regional ranking.
30
Only
Australia, People’s Republic of China, Indonesia,
Mongolia, and Sri Lanka in the Asia and Pacific
region had ratified the UN Convention against
Corruption, suggesting a lack of government
determination in the region to tackle corruption.
The need for reform for good governance
has been recognized at various levels and sectors,
and numerous efforts at the policy level are
being pursued. A recent initiative established the
/u||u \u|o|’s “/o||o|” uo|o|s o|ovuo |u|| |||
|u |o ooo|o| couuu||os
]2
Asian Water Development Outlook 2007
Presidential Commission on Effective Governance
(PCEG), which was given responsibility for
developing an integrated reform action plan. PCEG
advocated the passage of the Re-engineering the
Bureaucracy Bill and supported the proposed Civil
Service Code. However, although the country is not
lacking in policy or policy reform initiatives, there
are significant problems in their implementation.
31
Utility Performance
Levels of nonrevenue water remain very high
in most utilities, typically being in excess of
30% and in the case of Maynilad, still well over
60%. Hours of supply are generally in excess
of 18 hours and some have 24-hour continuity.
However, there are major differences in the per-
formance levels of large and small water utilities,
for instance staffing-connections ratios are good
in Manila at around 3.2 to 3.5 but are higher in
smaller systems. The overall performance of the
Manila system has undoubtedly improved, but
with each concessionaire attaining different levels
of achievement (see Table 2). Tariffs charged by
the two private sector concessionaires in Manila
are considerably higher than those charged by the
other utilities in the table but this may simply be
a reflection of the investment made to remedy the
situation and clear the backlog of remedial work
required on deteriorating assets to reduce leakage.
High leakage levels are also reflected in the unit
consumption rates associated with the Manila
concessions. Most utilities cover operation and
maintenance costs, with Manila Water perform-
ing well with a good margin of revenue collected
over costs incurred. Most water utilities appear to
be charging connection fees that are beyond the
capacity to pay, for poor consumers who would
like to have a piped water system.
Table 2 summarizes recent utility
performance data.
32
Selected national indicators are summarized
below:
Wateravailability(percapita) 5,880m
3
/year
Waterquality fair
Improvedwatersupply
coverage
85%
Improvedsanitationcoverage 72%
Wastewatertreatment poor
GovernanceTransparency
Index(CPI)
2.5
Main Issues and Key
Challenges
High connection fees are unaffordable for low-
income households, even when options to pay
by installments are available. However, by acting
together as a community, the cost of water can be
reduced dramatically, for instance by improving
access for water vendors to reduce transportation
costs or negotiating a community supply with the
water utility, etc. What is needed is a champion
to support the community through such initia-
tives. Mr Macabebe, President of LUPON,
Manila, Philippines, is a good example of what
can be achieved (Box 1).
The main issues and key challenges are as
follows:
• Disparities in coverage across regions.
• Low tariffs and poor cost recovery may
indicate a low willingness to pay. Poor revenue
generation is a core constraint, leading to under-
investment and undermining development of
the whole sector. For many service providers,
revenue does not even cover recurrent costs let
alone contribute to the accumulation of suf-
ficient reserves to fund new capital investment.
The situation is even worse in the sanitation
sector, particularly as local governments attach
a higher priority to water supply investments
in order to bridge the significant gap between
demand and supply capacity.
• Poor utility performance due to lack of
institutional capacity and investment.
• Weak and fragmented institutional and
regulatory framework, with regulatory func-
tions controlled by different entities, making
it difficult to develop technical capacity and
leading to variance in implementation of
regulatory rules and enforcement.
• Increasing pollution and depletion of water
resources.
• Need to increase sewerage interception and
treat all raw sewage.
• Many are now provided with water sector
services by SSIPs so there needs to be a
greater recognition of their role, with their
status formalized, until such time as the
formal utility is able to provide services to
SSIP customers.
• The relative success of Manila Water and
SSIPs supports an increasing role for the
private sector to meet unsatisfied demand.
• Connect the urban poor (no connection fee
or subsidized fee).
Levels of non-
revenue water
are very high in
most utilities,
typically in
excess of 30%
]o
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Table 2: Utility performance
Indicator Maynilad Manila Water Dagupan Water
District
33
Orani Water
District
Magdalena (LGU
Managed Utility)
34
Public/privatesector private private public public public
Mainwatersource surface surface groundwater spring+ground-
water
groundwater
Populationinareaof
responsibility
7,900,000 5,300,000 — — 16,220
Coverage:
water(%) 71.2 58.8 54.83 19.02 66.3
sewerage–septictanks(%) (21.65) (17.86) 84.0 95.0 —
No.ofconnections 607,729 425,802 16,349 5,752 2,152
(676,974) (562,499)
No.ofpublictaps — — — — 0
SupplyContinuity(hoursof
supply)
18 21 — — 24(95%)
Volume(m
3
/month):
Produced 69,410,000 46,161,000 596,070 199,143 418,745
(63,570,000) (40,367,400)
Consumed 21,915,402 24,173,000 417,249 161,305 —
Percapitaconsumption
(liters/day)
458 646 149 129 68
Overallnonrevenuewater
(%)
68.4 47.6 30 19 36
(66.39) (31.74)
Staffingratio/thousand
connections
3.9 3.6 6.5 4.35 1.9
(3.5) (3.2)
Revenuecollected(US$
million/month)
9.17 7.10 0.15 0.04 0.009
Collectionefficiency(%) 104 87 95 95 91
Operationand
maintenancecosts(US$
million/month)
11.14 5.83 0.10 0.03 0.011
Connectionfee(US$) 95.35 135.80 78.40 63.15 —
Typicaldomestictariff
basedon10m
3
/month
(US$)
8.03 5.87 2.37 2.61 4.77(basedon
10.4m
3
/month)
Annualcapex(US$million) 9.02 77.12 — — 0
Sectorregulator MWSS MWSS NWRB NWRB —
|o|o |xc|u|uo |u|o usou US]] = |^''2
]^
Asian Water Development Outlook 2007
• Technical performance and service levels are
poor in many utilities (nonrevenue water,
low coverage, intermittent supplies, etc.) and
need to be progressively improved.
Health authorities in most countries in the
Asia-Pacific region do not have direct responsibility
for developing water supply and sanitation systems,
focusing primarily on hygiene promotion and water
quality surveillance, although the benefits of such
development accrue to the health sector in terms
of health gains. To optimize such gains, health
authorities can play a key role in relation to water,
sanitation, and hygiene, including: (i) establish-
ment of science-based evidence, (ii) advocacy to
nonhealth sectors, (iii) normative guidance role to
legislative and policy planners, (iv) hygiene promo-
tion, (v) monitoring and surveillance, and (vi)
emergencies and natural disasters. Consideration
should be given to health authorities taking a more
active role in sector development and management
to maximize such benefits.
Key Sector Players
• Department of Environment and Natural
Resources
Visayas Avenue, Diliman, 1100 Quezon
City, Philippines
T: +63-2-929-6626 E: web@denr.gov.ph
W: http://www.denr.gov.ph
• National Water Resources Board
8th Floor NIA Building, EDSA, Diliman
Quezon City
Philippines
T: +63- 2-928-2365 F: +63-2-920-2641
E: rbalikpala@gmail.com
W: http://www.nwrb.gov.ph
• Department of Health
San Lazaro Compound, Sta. Cruz, Manila,
Philippines
T: +63- 2- 743-8301 to 23
E: ftduque@co.doh.gov.ph (Office of the
Secretary)
W: http:// www.doh.gov.ph
• National Economic and Development
Authority
NEDA-sa-Pasig Building, 12 Saint Josemaria
Escriva Drive, Ortigas Center
Pasig City, Metro Manila, Philippines
T: (063) 6310945 – 56
W: http:// www.neda.gov.ph
• Metropolitan Waterworks and Sewerage
System
Corporate Office: 4th Floor, Adminsitration
Building, MWSS Complex
489 Katipunan Road, Balara Quezon City
1105
T: (632) 922-3757; 922-2969; 920-5560 F:
(632) 921-2887
E: info@mwss.gov.ph
W: http://www.mwss.gov.ph/
Regulatory Office: 3rd Floor Engineering
Bldg. MWSS Complex
Box 1: Establishing the Federation of Water Associations
TenyearsaftertheManilaprivatesectorconcessionswereawarded,
manyurbanpoorinManilaarestillunconnectedtopipedwater,
forexampleresidentsinNationalHousingCorporationsettlements.
Determinedtochangethissituation,MrMacMacabebesetupthe
FederationofWaterAssociations(FWA)andunitedthepopulationin
onesuchsettlementcalledtheManggahanFloodwaytodemandwitha
collectivevoice,pipedwaterconnectionsfortheirsettlement.Formany
years,drinkingwaterfromvendorshadbeenP5per20litercontainer,
thetotalwaterbillperfamilyincludingpurchaseofgroundwaterfor
washingandbathingbeingP900permonth,nearly20%oftheincome
ofaone-incomehousehold.AfterFWArepresentationswiththewater
utility,awatermainwasinstalleddowntheFloodwayandmonthly
familyexpenditureonwaterdroppedtoP300.
Sou|co /| /uc /ucu|o|o ||osuo|| o| ||o |ouo|u|o| o| \u|o| /ssocu|o|s
o| /u|uuu|u| ||oouvu, ||U|C|¦ v|c| vus os|u||s|ou |o uovo|oo suc| |ocu|
||u|vos
||s|u|||u uo|o|ou ooo||os | /u||u’s /||uo|uo
couuu||,
]'
Cou|||, C|uo|o| – |||oo|os
Katipunan Road, Balara Quezon City 1105,
Philippines
T: (632) 4358900; 4358902; 4358903;
4358901; 4358904
E: info@mwssro.org.ph
W: http://www.mwssro.org.ph/
• Maynilad Water Services, Inc. (MWSI)
MWSS Compound, Katipunan Road, Old
Balara, Quezon City, 1105 Philippines
T: +63-2-435-3583 F:+63-2-922-3759
E: eric.dumancas@mayniladwater.com.ph
W: http://www.mayniladwater.com.ph
• Manila Water Company, Inc. (MWCI)
Administration Building, MWSS
Compound, Katipunan Road, Old Balara,
Quezon City, 1105 Philippines
T: +63-2-926-7999 F: +63-2-922-3761
E: tony.aquino@manilawater.com
• Local Water Utilities Administration (LWUA)
MWSS-LWUA Complex, Katipunan Road,
Balara, Quezon City, Philippines
T: (632) 9205581 to 89 F: (632) 9223434
W: http://www.lwua.gov.ph/
• National Anti-Poverty Commission
3rd Floor, Agricultural Training Institute
Building,
Elliptical Road, Diliman, Quezon City,
Philippines
T: (063) 426-5028; 426-5019; 426-4956;
426-4965
E: inquiry@napc.gov.ph
W: http://www.napc.gov.ph
• Department of Public Works and Highways
Bonifacio Drive, Prot Area, Manila,
Philippines
T: +632-304-3221; +632-304-3301
E: bonoan.manuel@dpwh.gov.ph
W: http://www.dpwh.gov.ph
Table 3: Donors Active in the Philippines’ Water Sector
Donor Sector/Area of Support Sample ADB Projects Status
AsianDevelopmentBank
(ADB)
Urban,Rural,andBasinWater MWSSNewWaterSources
DevelopmentProject
Loanapprovedin2003.Loan
closingdaterevisedto2008.
IrrigationSystemsOperation
EfficiencyImprovement
Project
Technicalassistanceproposed
in2007.
SouthernPhilippines
IrrigationSectorProject
Loanapprovedin1998.
Revisedclosingdatein2008.
IntegratedCoastal
ResourcesManagement
Loanandgrantapprovedin
2007.
WorldBank Waterresourcesmanagement,
watersupply,irrigation
Active/ongoingwater
resourcesmanagement,
irrigation,watersupplyand
sewerage/sanitationprojects.
JapanBankfor
InternationalCooperation
Floodmanagement
JapanInternational
CooperationAgency
Improvementofbasicliving
conditionswhichinvolves
improvingwatersupplyservices
AustralianAgencyfor
InternationalDevelopment
Ruraldevelopment
UnitedStatesAgencyfor
InternationalDevelopment
Environment(includingwater
supplyandsanitation)
UnitedNations
DevelopmentProgramme
Environment
GermanAgencyfor
TechnicalCooperation
(GTZ)
Drinkingwater,watermanage-
ment,sewage/wastedisposal
]c
Asian Water Development Outlook 2007
Donors active in the sector are summarized
in Table 3, which also provides an indication of
the current status of key projects funded by the
Asian Development Bank.
ADB is evaluating the proposed US$13 mil-
lion Rural Water Supply and Sanitation in Visayas
and Mindanao Project which will provide 800
water supply facilities to deliver safe and reliable
water supplies to 850,000 people, together with
150,000 latrines providing improved sanitation.
Outputs will be demand-led. Training and capacity
building of local government units and user groups
will form a major component of the project.
Future Vision
Progress toward achieving the MDG targets
in the Asia-Pacific Region has been less rapid
than anticipated such that, at current rates of
progress, the sanitation MDGs will not be met
in many Asian countries. As a result, the ‘Vision
2020’ document on “Delivery of the MDGs
for water and sanitation in the Asia-Pacific
Region” was prepared to point the way forward,
and was unanimously endorsed by Ministers
from 38 countries at the Asia Pacific Ministerial
Conference in December 2006 held in New
Delhi. The overarching framework is principled
governance, together with a move from policy
as intention to policy as practice. To achieve the
objectives, partnerships will be essential. The
2020 vision can be achieved by:
• a concerted campaign over the next five years
to raise awareness and generate momentum
to change polices and governance practices
and build sector capacity,
• multistakeholder approach in each country
to achieve synergies and a united effort, and
• active sharing of information and experience
across the region as part of a region wide
initiative.
The future vision for the water sector in the
Philippines should include the following:
• Prioritize the water and sanitation sector in
terms of investment and human resource
development.
• Recognize the important role of SSIPs and
formalize their status and contractual status
with formal utilities.
• Strengthen environmental legislation en-
forcement to halt and reverse the decline in
the quality and quantity of water resources.
• Treat all wastewater discharges to at least
primary level within 5 to 10 years.
• Set sustainable and affordable tariffs to
progressively move toward full cost recovery
and progressively improve service standards
(nonrevenue water, hours of supply, etc.)
The cost of achieving the water sector
MDGs worldwide has been estimated at US$10
billion/year, a seemingly large sum but one that
only equates to 5 days’ worth of global military
spending or less than half of what rich countries
spend on mineral water.
35
In reality, it is a small
price to pay for improved quality of life, millions
of young lives saved, increased productivity, and
for generating an economic return to boost pros-
perity. Governments should aim for a minimum
of 1% GDP spending on the water sector.
The Philippines needs to increase annual water
sector investments about ten-fold to some P40
billion to meet MDG and legislative commitments,
and at the very least to 1% of GDP, and also must
focus on tariff reform, increased wastewater treat-
ment capacity, increased coverage of water sector
services, greater water conservation, and effective
implementation of the Clean Water Act.
The Index of Drinking Water Adequacy
(IDWA) value for the Philippines (see Table 4)
is 80, ranked third amongst the 23 countries
evaluated in the IDWA background paper for
AWDO.
36
“Use” has the top rating of 100, and
“quality” (84), “access” (81), and “resource”
(73) values are all good, with rankings all in the
second quartile of the cohort evaluated. Although
the “capacity” (59) value is reasonable, it provides
the best opportunity to increase the overall
IDWA value and ranking.
The “capacity” component is a measure
of the population’s capacity to purchase water
based on per capita GDP in purchasing power
parity US$. Its value is obviously linked to the
general economic situation in the country and is,
therefore, much harder to influence. However, if
connection fees are made affordably small or free
and the excess funded through the tariff, together
with the development of a sustainable tariff
structure and unit charges, the cost of water as a
proportion of household income would reduce
and more people would connect and increase
Table 4: Index of Drinking Water Adequacy (IDWA)
Resource Access Capacity Use Quality IDWA
73 81 59 100 84 80
].
Cou|||, C|uo|o| – |||oo|os
water consumption. It is anticipated, therefore,
that increasing sector investments, improving
urban and rural water coverage, modifying
connection fees and tariffs, as well as increasing
wastewater treatment to reduce pollution, will
help raise the IDWA value to about 90 by 2015,
maintaining its ranking in the top quartile of
current IDWA value estimates.
This AWDO country chapter is a dynamic
document that should be updated and expanded
periodically to reflect changes, issues and
proposed remedial strategies in the national
water sector. It is recommended that in the next
update there should be a specific focus on (i)
water resources and environmental management,
(ii) wastewater treatment, and (iii) water utility
performance and benchmarking.
Endnotes
1 The contribution of Paul van Klaveren of the ADB who
reviewed the draft document is gratefully acknowledged.
Comments have also been included from Mr Tony
Aquino, President of Manila Water.
2 “Asia Faces Huge Environmental Clean-Up Due to
Inadequate Sanitation”, ADB News Release, 7 August
2007.
3 Asian Development Outlook 2007, p. 222 and Tables
A1, A2 and A8, ADB, 2007.
4 Purchasing Power Parity
5 Tables 1 to 3, Human Development Report 2006,
United Nations Development Programme (UNDP).
6 Tables A4 and A6, “More Urban, Less Poor–an Intro-
duction to Urban Development and Management”
Goran Tannerfeldt and Per Ljung, SIDA Earthscan,
2006.
7 Total Actual Renewable Water Resources (TARWR)
from Table 4.3, Water a Shared Responsibility: UN
World Water Development Report No. 2, 2006. UNI-
CEF
8 Earth Trends Data Tables: Freshwater Resources 2005,
FAO/AQUASTAT 2005. Available at www.fao.org/wa-
icent/faoinfo/agricult/agl/aglw/aquastat/water_res/in-
dex.htm
9 Section 2.3.1, p. 18, the Philippine Water Situation
Report 2006, League of Cities of the Philippines in
partnership with WEDC, UK.
10 Executive Summary, p. v, the Philippine Water Situation
Report 2006, League of Cities of the Philippines in
partnership with WEDC, UK.
11 About US$0.1 billion in 2004.
12 About US$0.034 trillion in 2006.
13 Executive Summary, p. v, the Philippine Water Situation
Report 2006, League of Cities of the Philippines in
partnership with WEDC, UK.
14 Chapter 7 and Table 7.1, “Philippines; Meeting Infra-
structure Challenges”, PPIAF, World Bank, December
2005.
15 From DENR Administrative Order 2005--10, Imple-
menting Rules and Regulations of the Philippine Clean
Water Act of 2004 (Republic Act No. 9275).
16 Section 5.2.1, p. 43, the Philippine Water Situation
Report 2006, League of Cities of the Philippines in
partnership with WEDC, UK.
17 Chapter 3, p. 46, Medium-Term Philippine Develop-
ment Plan (MTPDP) 2004--2010.
18 Executive Summary, Country Environmental Analysis
for the Philippines, ADB, September 2004.
19 Chapter 3, pp. 46 and 47, Medium-Term Philippine
Development Plan (MTPDP) 2004--2010.
20 Executive Summary, v, the Philippine Water Situation
Report 2006, League of Cities of the Philippines in
partnership with WEDC, UK.
21 Philippines Country Water Resources Assistance Strat-
egy 2003, p. 6, ADB.
22 Chapter 3, Thrust No 4 , sub-section 2 on water re-
sources, p. 53, Medium-Term Philippine Development
Plan (MTPDP) 2004--2010.
23 Box 1.4, Human Development Report 2006, UNDP.
24 Country, regional and global tables in “Meeting the
MDG Drinking Water and Sanitation Target–the
Urban and Rural Challenge of the Decade”, WHO/
UNICEF Joint Monitoring Programme Report 2006.
25 Joint Monitoring Programme for Water Supply & Sani-
tation; Coverage Estimates: Improved Sanitation– Phil-
ippines and Improved Drinking Water---Philippines,
WHO/UNICEF, June 2006.
26 Meeting the MDG Drinking Water and Sanitation
Target–the Urban and Rural Challenge of the Decade,
WHO/UNICEF, 2006.
27 For further details see MTPDP, chapter 3, Thrust No 4,
sub-section 2 on water resources.
28 Second Philippines Progress Report on the Millennium
Development Goals, July 2005.
29 Chapter 7, “Philippines: Meeting Infrastructure Chal-
lenges”, PPIAF, World Bank, December 2005.
30 Corruption Index CPI 2006 Regional Results: Asia
Pacific. Transparency International, 2006.
31 Executive Summary, Country Governance Assessment:
Philippines, ADB, 2005.
32 Data for Maynilad and Manila Water based on 2004
data provided by WSS, World Bank. Comparative data
from the Regulator for 2006 is shown in parentheses ( )
for the most recent but not complete data set.
33 2005 data for Dagupan and Orani abstracted from Pro-
vincial Towns Water Supply Program Phase III (Project
Proposal by the Local Water Utilities Administration for
KfW Financing).
34 Source of data for 2005: Department of the Interior
and Local Government---Water Supply and Sanitation
Program Management Office.
35 Human Development Report 2006, UNDP, p. 8.
36 “Access to Drinking Water and Sanitation in Asia:
Indicators and Implications”, by Prof Bhanoji Rao,
Background Paper for AWDO, July 2007.
/|uu| Duu u|u |oso|vo|
Asian Water Development Outlook (AWDO) 2007
AWDO is a new publication commissioned by the Asian Development Bank (ADB) in view of
the increasing importance of water in the future development scenarios of the Asia and Pacific
region. In recent years, water has steadily gravitated toward the top of the national agendas
of ADB’s developing member countries. This is a desirable development because water is
an essential requirement for human and ecosystems survival. In addition, water is a critical
component for most development needs. Without adequate quantity and quality of water, it
will not be possible to ensure food, energy, or environmental security of nations.
AWDO is aimed at Asian and Pacific leaders and policy makers and those interested
in understanding the complexities and dimensions of the current and the future water
problems, and how these can be addressed successfully in policy terms. Its main objective is
to raise awareness of water-related issues and to stimulate an informed debate on how best
to manage Asia’s water future. These are important and complex issues, and their timely
management can contribute to the achievement of all the water-associated Millennium
Development Goals and beyond.
AWDO 2007 is ADB’s first attempt to make a forward-looking assessment of the possible
water future for the most populous region of the world. It is now increasingly being
recognized that water is likely to be a major critical resource issue of the world, and that the
social, economic, and environmental future of Asia is likely to depend on how efficiently and
equitably this resource will be managed in the coming years.
About the Asian Development Bank
ADB aims to improve the welfare of the people in the Asia and Pacific region, particularly
the nearly 1.9 billion who live on less than $2 a day. Despite many success stories, the region
remains home to two thirds of the world’s poor. ADB is a multilateral development finance
institution owned by 67 members, 48 from the region and 19 from other parts of the globe.
ADB’s vision is a region free of poverty. Its mission is to help its developing member countries
reduce poverty and improve their quality of life.
ADB’s main instruments for helping its developing member countries are policy dialogue,
loans, equity investments, guarantees, grants, and technical assistance. ADB’s annual lending
volume is typically about $6 billion, with technical assistance usually totaling about $180
million a year.
ADB’s headquarters is in Manila. It has 26 offices around the world and more than 2,000
employees from over 50 countries.
About the Asia-Pacific Water Forum
The Asia-Pacific Water Forum (APWF) provides countries and organisations in the region
with a common platform and voice to accelerate the process of effective integration of water
resource management into the socioeconomic development process of Asia and the Pacific.
The APWF is an independent, not-for-profit, non-partisan, non-political network.
The APWF’s goal is to contribute to sustainable water management in order to achieve
the targets of the MDGs in Asia and the Pacific by capitalizing on the region’s diversity and
rich history of experience in dealing with water as a fundamental part of human existence.
Specifically, the APWF seeks to champion efforts aimed at boosting investments, building
capacity, and enhancing cooperation in the water sector at the regional level and beyond.
Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org/water
Asia-Pacific Water Forum
Secretariat: Japan Water Forum (JWF)
6th FI,1-8-1 Kojima Chiyoda-ku
Tokyo, Japan APAN 102-0083
Tel +81 3 5212 1645
Fax +81 3 5212 1649
office@apwf.org
www.apwf.org/

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