Water Supply and Sanitation in The Philippines Week 1-2

Republic of the Philippines COLLEGE OF ENGINEERING AND TECHNOLOGY
Romblon State University Subject: Allied 222 – Engineering Utilities 2 (Basic Mechanical Engineering)
Main Campus - Odiongan, Romblon Program: CIVIL ENGINEERING
Water supply and sanitation in the Philippines

The Philippines' water supply system dates back to 1946, after the country declared independence.
Government agencies, local institutions, non-government organizations, and other corporations are primarily in
charge of the operation and administration of water supply and sanitation in the country.
Sources of water
The Philippines' main sources of water are rivers,
lakes, river basins, and groundwater reservoirs.
The longest and largest river, Cagayan River,
discharges approximately 53,943 million cubic
meters of water annually. Its groundwater
reserves are 47,895million cubic meters
replenished by rainfall and seepage from rivers
and lakes. The lakes are utilized mainly for fish
cultivation. The four major groundwater
reservoirs are in Cagayan, Central Luzon, Agusan,
and Cotabato. There are 438 major dams and
423smaller dams. Dams and reservoirs are The Ambuklao Dam and Hydroelectric Power Plant in
mainly used for water storage, water supply, Bokod,Benguet, Philippines.
irrigation, regulation of flood, and hydropower.
The water in the metropolitan area of Manila is mostly supplied by the Angat Dam, Ipo Dam, and La MesaDam
(also known as Angat-Ipo-La Mesa water system). Well-known and larger dams in the rural are asinclude
Ambuklao Dam (developed for flood control, irrigation, and hydroelectric power source of Baguioand some
regions in Luzon) and Magat Dam (irrigation and hydroelectric power source in Isabela).
Usage
28.52 billion m3 of water were withdrawn from various sources in the Philippines in 2000: 74% (21.10billion m 3)
was used for agricultural purposes, 9% (2.57 billion m3) for industrial processes, and 17% (4.85billion m3) for
domestic consumption.
Building Plumbing Systems Prepared by: Engr. Bliven U. Garcia, ASEAN Eng.
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Agricultural
Agricultural water management in the Philippines is primarily focused on irrigation. The country has
3.126million hectares of irrigable land, 50% (1.567 million hectares) of which already has irrigation
facilities.50% of irrigated areas are developed and operated by the government through the National Irrigation
System (NIS). 36% is developed by the government and operated by irrigators' associations through the
Communal Irrigation System, while the remaining 14% is developed and operated by individual or small groups
of farmers through a Private Irrigation System (PIS).
Industrial
The uses of water for industrial purposes include the "utilization of water in factories, industrial plants and mines,
and the use of water as an ingredient of a finished product."[4] Water-intensive industries are involved in the
manufacturing of food and dairy, pulp and chemical products, as well as textile materials. These industries are
usually found in the National Capital Region, Calabarzon, and Region III. In a 1999study by the United Nations
Industrial Development Organization (UNIDO), the intensive use of water in the industry is critical in terms of
the production of hazardous wastes. Thousands of tons of solvent wastes, heavy metals, lubricants, and
intractable wastes are improperly disposed of annually in Metro Manila.
Domestic
According to a 1996 study by David and Inocencio, the medium of water provision is dependent on the income
class of a certain household. Higher-income brackets usually rely on private waterworks as a source of water,
while lower-income brackets usually consume less by depending on vended water (sold by those with access to
private waterworks). Lower-income households pay much higher water prices than higher-income households
due to lack of access to water service providers.
Service provision
In 2000, the average water production was 175 liters per day per capita (L/d/c).[7] According to the National
Water Resources Board (NWRB), the average consumption of water was 118 L/d/c in 2004. The highest
consumption was recorded in the East Zone of Metro Manila as 232 L/d/c.
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Levels of water systems

According to a 2005 World Bank study, approximately 5,000 service providers exist in the Philippines. [9]Most of
them only provide water, since sanitation is expected to be a private responsibility. [10] The water infrastructure
provided is classified into three levels:
Levels of water systems in the Philippines

Stand-alone water points (e.g. hand pumps, shallow
Level wells, rainwater collectors) serving an average of
I 15households within a 250-meter distance
Level II Piped water with a communal water point (e.g.

borewell, spring system) serving an average of 4–
6households within a 25-meter distance
Level III Piped water supply with a private water point (e.g.
house connection) based on daily water demand of
more than 100 liters per person
The handpump is an example of a

Level water system.
Service providers
According to the Joint Monitoring Programmed (JMP) for Water Supply and Sanitation of UNICEF and WHO,
access to an improved water source increased from 85% in 1990 to 92% in 2010.
Local Government Units
Most households in the Philippines are provided water by their Local Government Units (LGUs), either directly
through a city or municipal engineering department or through community-based organizations(CBOs). CBOs
involved in water supply include 200 cooperatives, 3,100 Barangay Water and Sanitation Associations (BWSAs)
and 500 Rural Water Supply Associations (RWSAs). [13] CBOs usually operate Level I or Level II water supply
systems with support from the national government or non-governmental organizations (NGOs). In many cases,
the CBOs later convert Level I and II facilities into Level III supply systems. Typically, all LGU-operated
arrangements do not recover their full costs and rely heavily on local government subsidies.
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Water Districts
A water district is a utility that is legally and financially separate from

the municipality. In urban areas outside of Metro Manila, water districts
served around 15.3 million people from 861municipalities in 2011. To
form a water district, the local government needs confirmation from the
Local Water Utilities Administration (LWUA), a specialized lending
institution for provincial waterworks, from which it will receive
technical assistance and financial support. The local government
appoints the board members of the water districts. This system typically
has better performance and higher cost recovery than water systems that
are run directly by municipalities. The Philippine Association of Water
Districts (PAWD), fosters the exchange of experiences between water
districts and provides training to its members.[15] In2010, USAID and
the ADB agreed to support PAWD in establishing a national Water Local Water Utilities Administration
Operators Partnerships (WOPs)program that promotes twinning (LWUA) Seal
partnerships among Water Districts.
Large-scale Private Operators
In Metro Manila, water service has been carried out by two private concessionaires since 1997: The Manila
Water Company in the East Zone, and Maynilad Water Services, Inc. in the West Zone. Although national
government has supported private service providers since the 1990s, there are few arrangements outside of Metro
Manila. Joint ventures exist in Tagbilaran City and in Subic Bay. [17] These private water service providers
provide Level III services together with water districts.
Small-scale independent providers
A significant share of the population in urban areas receives services from small-scale independent providers. It
was estimated that before privatization in the late 1990s, 30% of the population of Metro Manila depended on
them, majority buying water in bulk from water providers to sell it on to individual users. [18]There are also some
cases of cooperation by concessionaires and independent providers. [19] In August2007, 250 small-scale providers
formed the National Water and Sanitation Association of the Philippines(NAWASA) as a gathering avenue for
small-scale water service providers.
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Benchmarking of water utility models

Local Private
Water Districts
Government Operators
Level of Level I, II, and III Level III Level III
Service
Availability
(hours per 19 23 22
day)
Consumpti
on(liters 112 120 144
per capita
per day)
Staff (per
100 8 7 6
connections)
Tariff
(Philippine 7.60 17.82 15.37
peso per
cubic meter)
Economic National Water National Water According to
Regulation and Resources and Resources contract
Board (NWRB) Board (NWRB)
Local Waterworks The zones of Metro Manila allocated to
Public, NGOs,
Financing and Utilities Tariffs Maynilad Water (red) and Manila Water
Tariffs
Administration (blue).
(LWUA), Tariffs
Access
Water supply
Access to water is universal, affordable, efficient and of high quality. The creation of financially sustainable
water service providers ("Water Districts") in small and medium towns with the continuous long-term support of
a national agency (the "Local Water Utilities Administration" LWUA); and the improvement of access, service
quality and efficiency in Manila through two high-profile water concessions awarded in1997. The challenges
include limited access to sanitation services, high pollution of water resources, often poor drinking water quality
and poor service quality, a fragmentation of executive functions at the national level among numerous agencies,
and a fragmentation of service provision at the local level into many small service providers.In 2015, 92% of the
total population had access to "at least basic water", or 94% in urban areas and 90% inrural areas. In 2015, there
were still 8 million people without access to "at least basic water". [22][23] The term "at least basic water" is a new
term since 2016, and is related to the previously used "improved water source”. In earlier years, according to the
Joint Monitoring Program (JMP) report in March 2012, 43% of the Philippines had access to Level III private
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water service providers in 2010. Access to an improved water source increased from 84% in 1990 to 92% in
2012. However, there is a wide inconsistency between the access to water of urban areas (61%) and rural areas
(25%). Although overall spending remained low, the national government has begun increasing investments in
sectors outside Metro Manila.[24] In 2015, it was reported by the Joint Monitoring Programmed for Water Supply
and Sanitation that 74% of the population had access to improved sanitation, and that "good progress" had been
made between 1990 and 2015.
Sewage and Sanitation

In 2015, 74% of the total population had access to "improved" sanitation, or 78% in urban areas and 71% in rural
areas. In 2015, there were still 27 million without access to "improved" sanitation. [22][23]In 2005, only 5% of the
total population was connected to a sewer network. The vast majority used flush toilets connected to septic tanks.
Since sludge treatment and disposal facilities were rare, most effluents were discharged without treatment. [26]
Within the entire country, septic tanks are the most common method of sewage treatment. In Metro Manila alone,
about 75 local companies provide tank-desludging services.[12]The first Philippine constructed wetland, serving
about 700 households, was completed in 2006 in a peri-urban area of Bayawan, which has been used to resettle
families that lived along the coast in informal settlements and had no access to safe water supply and sanitation
facilities.[27] In March 2008, Manila Water announced that a wastewater treatment plant was to be constructed in
Taguig.
Economic Aspects
Water bill information

Current charges before tax
 Basic charge: This covers the cost of operating, maintaining, improving and expanding the
distribution network, as well as the facilities responsible for bringing potable water to the end-
user. The Basic Charge is based on the latest approved tariff schedule.
 Foreign Currency Different Adjustment (FCDA): This is a percentage of the basic charge
which accounts for fluctuations of the Philippine Peso against other countries' currencies
subject to periodic review and adjustment. The FCDA for the second quarter of 2015 is0.18% of
the Basic Charge. In 2018, the Metropolitan Waterworks and Sewerage System (MWSS)
removed the FCDA in water bills of customers in Metro Manila when the Revised Concession
Agreements (RCA) of Manila's water service providers took into effect.
 Environmental Charge: This is for the mitigation of environmental impacts in the course of
water and wastewater operation. It is 20% of the Basic Charge applicable to all customers.
 Sewer Charge: 0% of the Basic Charge is added for Residential and Semi-Business customers
with a sewer line connection. 20% of Basic Charge, on the other hand, is charged for
Commercial and Industrial customers.
 Maintenance Service Charge: This covers the maintenance of the water meter. The charge
changes depending on the size of the water meter. For customers of Manila Water in Metro
Manila, the minimum charge is 1.50 Philippine pesos for a 13mm-sized meter.
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Value Added Tax
The value-added tax (VAT) is charged by the government and accounts for 12% of the sum of the items included
in current charges before tax.
Other charges
These are special miscellaneous charges such as connection fees, unscheduled dislodging of septic tank service
fees, etc.
Previous Unpaid Amount
This pertains to charges billed prior to the billing period. This should be settled immediately together with the
current charges to avoid the disconnection of water service.
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 of the cases, often impede new connections for poverty-stricken
areas.[32]LGU-operated systems In LGUs, tariff levels, and structures vary widely. Since most connections are
not metered, it is difficult to charge tariffs depending on consumption. Where LGUs provide Level I or II
services, they usually charge no or very low tariffs, although connection fees are common. The costs of providing
the service are usually met by local governments. [33] The NWRB in its benchmarking project had about half of
the average tariff of private operators and water districts. The cost of tariff in LGU-operated systems is, on
average, lower than other management models.[32] In order to introduce cost recovery tariffs and effective
regulation, the NWRB issued a primer on tariff setting and regulation in March 2005. The document provides the
basic guidelines of the tariff setting. The manual helps to determine future revenue requirements and to set annual
base tariffs based on estimated consumption levels. The processes of tariff approval as well as the guidelines to
prepare the required annual report are described in detail. Furthermore, the document gives advice on tariff
structures and water rate adjustments.
Water Districts. In water districts, tariffs increased notably since 1996. The tariff structure is similar to the
model used in Metro Manila, with an average tariff for the first 10m3 and increasing tariffs for additional
consumption.[34] At the end of 2006, the national average tariff for 30 m3 was US$0.36 per m3, which is more
than double of 1996.[33] The NWRB found an average tariff of US$0.41 within a sample of 18 water districts in
2004, which is the highest average tariff of all management models. The average connection fee was US$55,
somewhat lower than among private operators.
Metro Manila. In the capital region, an initial tariff is to be paid for the first 10 m3 consumed, with increasing
blocks for additional consumption. Furthermore, consumers connected to sewerage pay an additional charge of
50% and all users must pay a 10% environmental surcharge. [35] For new consumers, a connection fee is charged,
which was US$134 in April 2007 in the East Zone[36] For new consumers, a connection fee is charged, which
was US$134 in April 2007 in the East Zone[37] According to the MWSS Regulatory Office, just before
privatization, the average tariff per m3 in Metro Manila was US$0.26. After the concession contracts came into
force in 1997, tariffs dropped to US$0.05 (East Zone) and US$0.12(West Zone). In 2006, the average tariff rose
to US$0.31 in the East Zone and US$0.43 in the West Zone all figures converted into real 2006 prices). While the
tariff was highest among private operators, the connection fee was higher within water districts.
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Others. Users who rely on other sources such as private small-scale operators mostly pay more for water. In the
capital region, it is a common practice to buy water from MWSS and resell. In this case, small-scale operators
pay a higher tariff than the residential one and pass the higher cost on to the end-user.
Cost-recovery
The operation ratio (O) of a certain water service provider reflects its cost-recovery situation. It is computed by
the following formula:
O = C/R
where O is the operation cost, C is the total annual cost, and R is the annual revenue. An operation ratio under 1
means that revenues cover the costs of operation and maintenance. In a study last 2004, only 5 out of 45 had an
operating ratio of more than 1, reflecting a poor operation ratio among the majority of the participating utilities.
All the loss-making providers were operated directly by LGUs and were mostly characterized by a high share of
non-revenue water, poor service continuity, low tariffs, and low coverage within their respective service areas.
The five best-performing service providers consisted of four water districts and one private operator.
Investment
According to the World Bank, investment in water supply and sanitation from 1983 to 2003 has been furbelow
the required levels to maintain assets, to expand access and to improve service quality. Total investment has
fluctuated at around ₱3–4 billion a year, while the cost of implementing the Clean Water Act of 2004 has been
estimated at up to P35 billion a year.
1976 National Water Code (PD 1067)
Regarded as Presidential Decree No. 1067, dated December 31, 1976, the 1976 National Water Code was an
effort of then-President Ferdinand E. Marcos that aimed to strengthen water legislations in the face of the
increasing scarcity of water and its changing water patterns. The Water Code was an intended solution to revise
and consolidate regulations made on the ownership, appropriation, utilization, exploitation, development,
conservation, and protection of water resources in the country. Founded on the principle that “All waters belong
to the State," the National Water Resources Council was then created and tasked to control and regulate the use
and development of water resources on behalf of the government.
Regulations were made through the acquisition of water permits, given to persons not limited to government-
owned and controlled corporations, for water appropriation and usage. Specifications were included on the
maximum amount of water diverted or withdrawn, the maximum rate of diversion or withdrawal, and the times
during the year when water may be diverted or withdrawn. Instances may also arise where water permits are
revoked on cases of non-use, violation of the conditions imposed by the council, unauthorized sale of water,
pollution, and public acts detrimental to public health and safety. In declared flood control areas, rules and
regulations are administered to prohibit and control activities that may damage and cause deterioration of the
lakes and dikes, changes in the natural flow of the river, and increases in flood losses or intensified floods.
Watersheds, or areas of land adjacent to any surface water or overlying any groundwater, are to be declared as
protected areas of the Department of Environment and Natural Resources. These efforts ensure the quality of
water defined by a standard set by the National Pollution Council Commission according to the different uses of
water. Except for those functions under the Code that may fall under specific government agencies, the council is
given the power to make all necessary decisions and determinations provided for in the said Code. The Council
may provide accompanying penalties consisting of fines not exceeding one thousand pesos (P1,000.00) and/or the
suspensions or revocation of water permits or any rights given to use water as well as enforce its decisions with
the assistance of local and national police agencies.
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Philippine Clean Water Act of 2004 (RA 9275)
Republic Act 9275 provides for a comprehensive water quality management policy amidst economic growth. The
policy provides for the consistent protection, preservation, and revival of the quality of Philippine waters with
frameworks patterned through the pursuit of sustainable development. Importantly provided for by this act are
Water Quality Management Systems and Institutional Mechanisms. Water Quality Management Systems involve
area designations by the Department of Environment and Natural Resources (DENR), national sewage and
seepage management programs, and allocation of special funds to support and maintain water quality. Areas that
have similar hydrogeological conditions, which affect the physicochemical, biological, and bacteriological
reactions and diffusions of pollutants in the water bodies, are declared as Water Quality Management Areas. The
management area is governed by a DENR representative as chair and board members composed of
representatives from local government units (LGUs), relevant national government agencies, registered non-
governmental organizations, water utility sectors, and the business sector. On the other hand, water bodies with
specific pollutants that have exceeded the guidelines for water quality are identified as Non-attainment Areas.
LGUs are tasked to prepare and implement contingency plans, such as relocations, for the protection of the health
and welfare of the residents, while the government improves the affected quality of water within the potentially
affected areas. Funds administered by the DENR, and other concerned agencies, are on special accounts in the
National Treasury to be utilized in financing containment and clean-up operations in water pollution cases;
restorations of ecosystems and rehabilitation of affected areas; research, enforcement and monitoring activities;
technical assistance to implementing agencies; grants as rewards and incentives; and other disbursements made
solely for the prevention, control of water pollution and administration of the management areas in the amounts
authorized by the Department.
Wastewater charges are also established to provide a strong economic inducement for polluters to modify their
production or management processes or to invest in pollution control technology in order to reduce the number of
water pollutants generated in their discharge of wastewater into water bodies. Owners, or operators of facilities,
that discharge regulated waste are then required to secure discharge permits. Institutional Mechanisms
emphasized the collaborative efforts made in the hopes of having cleaner and better quality water through the
Lead Agency (DENR); the Roles of Local Government Units in sharing the responsibility of maintaining and
improving water quality within their territorial jurisdictions; the Business and Industry Role in formulating
incentives for the adoption of innovative equipment and processes that preserve and protect water bodies; and
Linkage Mechanisms through partnerships with government agencies and departments such as the Philippine
Coast Guard, DPWH, Department of Agriculture (DA),DOH, Department of Science and Technology (DOST),
Department of Education (DepEd), Commission on Higher Education (CHED) and Department of the Interior
and the Local Government (DILG).
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Government Agencies and Institutions

Local Water Utilities Administration (LWUA)
The Local Water Utilities Administration, sometimes known as the Local Waterworks and Utilities
Administration,[71] is a government-owned and controlled corporation and specialized lending institution that
promotes and manages the development of provincial water management facilities. It is also entrusted with
setting water quality and service standards for water districts and provides technical and institutional
development assistance.
Presidential Decree 198, also known as the Provincial Water Utilities Act of 1973, authorized the formation of
autonomous water districts on a local option basis to develop local water supply systems and created the LWUA
as a national-level agency addressing the needs of water districts. [74] According to its website, the LWUA set up
584 water districts with a combined service area of 691 cities and towns outside Metro Manila and helped build
1,431 water supply projects. It also extended loans to water districts totaling 17billion pesos, of which 11 million
pesos was availed leading to 12 million Filipinos having improved water services.
National Water Resources Board (NWRB)
The National Water Resources Board is the forefront government agency that handles the Philippines' water
sectors' policies, regulations, and quasi-judicial functions. It acts accordingly with the principles of the Integrated
Water Resource Management (IWRM) as it ensures the efficiency, conservation, utilization, development, and
protection of the state's water supply.
Rural Waterworks Development Corporation (RWDC)
Executive Order No. 577 which was passed last January 12, 1980, aims to provide full coverage of water supply
services in the country. In line with this, Rural Waterworks Development Corporation was established to bring
and administer water supply in areas with less than 20,000 as population. RWDC works together with LWUA in
determining areas under their jurisdiction.
Department of the Interior and Local Government
Government (DILG) define and enforces quality and performance standards. However, in both cases, local
governments retain the responsibilities for planning, financing, and regulating water supply.
Philippine Center for Water and Sanitation
The Philippine Center for Water and Sanitation (PCWS) provides technical assistance to local governments,
communities, and non-profits on low-cost water supply and sanitation options. It also engages in action research
with households. It leads the Philippines water sanitation and health (WASH) coalition of non-profit
organizations and local governments. It was created in 1990 under the name of International Training Network
(ITN) and adopted its current name in 1998.
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Philippine Society of Sanitary Engineers, Inc.
Financing and External Cooperation

Outside the privatized services in Metro Manila, one source of finance for water supply is government grants
channeled through the Local Water Utilities Administration (LWUA) and the Municipal Development Funds
Office (MDFO). But these are far from sufficient to meet investment needs, which is why loan financing is
necessary. Some LGUs obtain loans from public banks such as the Development Bank of the Philippines (DBP)
and the Land Bank of the Philippines (LBP), and also from corporations in other countries, such as the World
Bank, and JICA from Japan (see below).
External development agencies that work on water supply and sanitation in the Philippines include the ADB,
GTZ, JICA, USAID, and the World Bank.
Asian Development Bank (ADB

The Asian Development Bank (ADB) has assisted the government in increasing sanitized water supply to
different sectors in the Philippines. Through the MWSS New Water Source Development Project, approved in
2003 and ended in October 2008, ADB has contributed a total of US$3.26 million, whereas MWSS provided
US$1.71 million. The joint-project sought to develop up to 3 water source projects for Metro Manila and to
improve the financial management as well as the accounting and fiscal control systems of MWSS. In 2008,
studies for two water source projects were completed emphasizing environmental and social impacts amidst
water quality improvements.
The following report shows information about past performances:
ADB Assistance to Water Supply and Sanitation Sector in the Philippines
Table only shows a part of the report. For more information, click the link cited above.
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In 2013, ADB made preparations of loans for financing (i) the Water District Development Sector Project,(ii) the
Urban Water and Sanitation Sector Project, (iii) the Angat Water Transmission Improvement Project, and (iv)
future technical assistance and other lending activities to be discussed with the specific government agencies
involved.
ADB was also able to release a report on the assessments of current conditions and constraints to developing
water supply and sanitation in the country, strategies to be implemented to counter and solve these constraints,
and road maps and plans on a sustainable sanitation reality for all. The Philippine Sustainable Sanitation
Roadmap and Plan (PSSR), included in the report, served as a guide for water sanitation efforts as it presented the
vision, goals, outcomes, outputs, activities, and inputs needed to achieve an improved water quality nationwide.
Approved by the subcommittee on Water Resources in 2010, the Department of Health (DOH) has agreed to
spearhead the agenda by preparing a national sustainable sanitation plan based on the PSSR. The DILG has also
aligned its water and sanitation strategy with the requirements of the PSSR.
German Corporation for International Cooperation (GIZ)

The German Corporation for International Cooperation (GTZ, now GIZ) supported 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 sought to overcome the institutional confusion and to strengthen governmental
organizations at the national, provincial, and municipal levels. Its main partner was the Department of the
Interior and Local Government (DILG). In addition, the decentralization plan of the National Water Resources
Board was supported. The program, which ran from 2006 to 2009, helped to introduce low-cost options for
sanitation, such as urine-diverting dry toilets, and the first Philippine constructed wetland, treating wastewater
from about 700 households in Bayawan.
World Bank
The World Bank supports the Philippine water supply and sanitation sector.
Manila Third Sewerage Project
Philippine governments in reforming institutions in order to attract private investment in the wastewater sector,
(ii) improve the coordination of institutions responsible for preventing water pollution, and (iii) promote
innovative wastewater treatment techniques. The project, which ran from 2007 to 2012, provided technical
assistance as well as support for institutional coordination and private sector involvement.[82]The project
followed the Manila Second Sewerage Project, which was carried out from 1996 to 2005. After the privatization
of MWSS, it was restructured in order to adapt it to the new institutional framework. The objectives were to (i)
reduce the pollution of waterways in Metro Manila and its surrounding bays, (ii)reduce the health risks caused by
human exposure to sewage in Metro Manila, and (iii) establish a gradual low-cost improvement of sewerage
services in Metro Manila. From 1997 to 2005, the number of people with sewer connections increased from
721,000 to 1,101,000 and the population with regularly desludging septic tanks rose from only 1,600 to 288,000.
The total cost of the project was US$48.06 million.
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Urban Water and Sanitation Project APL2
This project aimed to reach approximately 40 LGU-operated water systems, which were given technical
assistance and financial support. The four components of the project were: to (i) finance civil works, equipment,
and supervision for improved water supply systems in LGUs, including private sector participation where
feasible, (ii) finance improved sanitation infrastructure, (iii) provide investment and assistance in micro-drainage
infrastructure, and (iv) provide funds for the hiring of a construction supervision consultant and specialized
consultants. The World Bank decided to contribute through a US$30million loan to the project, while the
remaining US$5.2 million are financed by local institutions. The project began in 2001 and ended in 2008.
The World Bank supports private sector participation through Design-Build-Lease contracts and Long-Term
Operation and Maintenance contracts between LGUs and private operators. Therefore, the Development Bank of
the Philippines (DBP) and the Land Bank of the Philippines (LBP) channel financing from the World Bank to
LGUs, which engage private operators. Under the Design-Build-Lease contracts, valid for 15 years and
renewable for an additional 15 years, a local private operator prepares, builds, and operates a new water supply
system. A World Bank loan channeled through the DBP finances90% of the construction cost, and the remainder
is contributed through the LGU. The water tariff must cover expenses for operation and maintenance, as well as a
lease fee and a return for the private operator.
Long-Term Operation and Maintenance contracts are used in LGUs which recruit a private company to construct
a new water supply system and later engage water associations or user cooperatives to operate the system under
the contracts, which are awarded for 15 years with the possibility of renewal for another 15 years. Similar to the
Design-Build-Operate contracts, 90% of the construction cost of the water system is financed with a World Bank
loan channeled through the LBP. The water user groups are required to work under commercial rules. They have
full administrative, accounting and financial autonomy.
Metro Manila Wastewater Management Project (MWMP)
Last 2012, the World Bank was able to approve a budget of $275 million for a project aimed at improving
wastewater collection and treatment practices in several catchment areas of Metro Manila as well as Manila Bay's
water quality. Also called the Metro Manila Wastewater Management Program (MWMP), this project
supports investments from the Manila Water Company, Inc. (MWCI) and Maynilad Water Services, Inc. in
increasing collection and wastewater treatment primarily from households and establishments in the area. The
project is divided into 2 components as MWCI takes charge of the east zone and Maynilad the west zone, of the
metropolitan.[85]With a budget of $193.4 million, investments by Manila Water include: (i) a sewage treatment
plant, and the necessary sewage lines, covering North and South Pasig, (ii) the carrying out of other waste water
management investment sub-projects agreed upon by the government, Land Bank of the Philippines, World Bank
and MWCI. With a budget of $178.3 million, investments by Maynilad include: (i) sewage treatment plants
andassociated wastewater conveyance systems in Quezon City, Pasay, Alabang, Muntinlupa, Valenzuela, and(ii)
a septage treatment plant in the southern part of Metro Manila. [86]With about 2 million cubic meters of
wastewater generated daily, and only 17% of them getting treated before disposal to water bodies around the
metro, water pollution has destroyed most of Manila Bay and the nearby Laguna de Bay. Manila Water and
Maynilad have both conceptualized a 25-year program that ensures 100% wastewater collection and treatment for
Metro Manila. With the MWMP, their efforts would be supported and would not only aid in improving the
current state of the surrounding environment but also contribute a boost in recreational and tourism opportunities.
Japan International Cooperation Agency (JICA)
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The Japan International Cooperation Agency (JICA), along with the international community striving to achieve
the targets of United Nations' Millennium Development Goals (MDG), has been campaigning to make a
significant reduction in the number of people who still lack access to safe drinking water. Reliable water
resources management, improvement of access to water supply in urban areas, reduction of non-revenue water
(NRW), improvement of water/energy use, sustainable rural water supply, and promotion of improved sanitation
in developing countries are the main issues that JICA prioritizes. In 2008, through the Development Bank of the
Philippines, about $200 million was loaned to the Philippines to fund local governments and domestic private-
sector companies for the development of water supply and sewerage facilities. Despite the establishment of
funding, financing will only be granted to water utilities if the business management improves, hence JICA
actively assists the water supply utilities' capacity development through practical cooperation with financial aid.
JICA not only works to improve access to safe drinking water in urban areas of developing countries, but also
aids water facilities with business planning and management.
Issues
Drinking water quality
Water quality usually does not meet the standards set by the national government, especially in urban areas. As a
result, waterborne diseases remain to be a severe public health concern in the country. About 4,200people die
each year due to contaminated drinking water.
Non-revenue water
Non-revenue water (NRW) is defined as the difference between the amount of water put into the distribution
system and the amount of water billed to consumers. It is usually used as an indicator for water utility
performance. High levels of non-revenue water usually indicate low-quality water utility. It has three
components:
 Physical losses, which consist of leakage from the system caused by poor operations and
maintenance, the lack of active leakage control, and poor quality of underground assets.
 Commercial losses, caused by under-registration of water meters, errors in data handling, and
theft.
 Unbilled authorized consumption, which includes water used by a specific utility for
operational purposes (e.g. firefighting and specific consumer groups).
Non-revenue water decreased in the East Zone of Metro Manila since privatization. In 1996, Manila had an NRW
of 61%, while capital cities from other Asian countries ranged from having 35–38%. In 2002, NRW dropped to
53% in the East Zone. On the other hand, non-revenue water in the West Zone increased as the primary water
work utility encountered severe financial problems.[88] According to Manila Water, one of the private
concessionaires, the share of NRW continued to fall until the end of 2010 where it reached 11%.
According to the National Water Resources Board (NWRB), the average share of NRW among participating
service providers was 27.5% in 2004. The particularly high NRW of Manila's West Zone was confirmed to have
a record with 68%. Generally, the smaller utilities performed better concerning NRW than the larger ones.
However, many NRW data are based on estimates, given the fact that only 15 of the 45service providers had
100% production and consumption metering coverage.
P a g e | 14 of 3
Labor Productivity
The number of staff was reduced at the Metropolitan Waterworks and Sewerage System (MWSS) after
privatization. On average, 10 employees were responsible for 1,000 connections in 1996. Fast forward to2002,
only about 4 employees were left, reflecting a decrease of around 58%. [88] According to LWUA, only about 7
employees per 1,000 connections worked in water districts in 2002. [91] In contrast to water districts, LGUs have
an average of 21 employees per 1,000 connections in 2002. However, small LGU’s still suffer from their low
number of total connections.
Other challenges
The NWRB Philippines Towns Water Utilities 2004 Data Book found an average of 7 employees per
1,000connections in 2004. On average, private utilities performed best and systems directly managed by LGU’s
performed worst. Not surprisingly, providers with more than 10,000 connections need significantly fewer
employees per connection than those with fewer than 10,000 connections.
Population and Pollution
One-third of Philippine river systems are considered suitable

for public water supply. It is estimated that in 2025, water
availability will be marginal in most major cities and in 8 of
the 19major river basins.[95] Besides severe health concerns,
water pollution also leads to problems in the Fishing and
Tourism industries. The national government recognized the
problem and, since 2004, has sought to introduce sustainable
water resources development management.
With rapid increases in population, urbanization, and

industrialization, the quality of Philippine’s waters has been
reduced, especially in densely populated areas and regions of
industrial and agricultural activities.[97] According to data
The Pasig River in Manila, one of the world's most
from the DENR and PEM, domestic, agricultural and polluted rivers.
industrial wastewater are the three main sources of water
pollution. These are also known as "point sources" that emanate toxic substances into "non-point sources" or
certain bodies of water. Domestic wastewater consists of sewage containing organic waste, solids, and coliforms
produced by domestic activities such as laundry, bathing, cooking, and other kitchen activities. Agricultural
wastewater, the major source of pollution in rural areas, contains pollutants resulting from agricultural and
livestock activities like the maintenance of piggeries which usually do not have proper wastewater treatment
facilities. Different industries also contribute largely to water pollution. Industrial activities such as
slaughterhouses and manufacturing of food, textile, and paper emit large amounts of organic waste.
El Niño and Global Warming
El Niño, a weather phenomenon occurring about every two to seven years when warm water in the western
tropical Pacific Ocean shifts Eastward, causing ocean temperatures to rise, last developed in the country in late
2014. For the past several decades, it has been observed that its occurrence has increased due to climate change
as a result of global warming. Its negative impacts may either be heavy rainfall or drought. El Niño greatly
impacts the power supply, water supply, and agricultural sectors of the country. The reduced rainfall leading to
drought causes a shortage in water supply, leading to water rationing in some situations, as well as hydropower
and food shortage.
P a g e | 15 of 3
Denudation of Forest Cover
The supply of water from most freshwater bodies usually

comes from watersheds --- patches of forest cover that absorb
rainwater and channel it into streams, rivers, and eventually
dams were many human communities (especially Metro
Manila)source their freshwater.[99] Despite the role of the
forest in the replenishment and maintenance of both ground
and surface water, the Philippines is considered to be one of
the most severely deforested countries in the tropics as it has
lost more than 97%of its original forest cover in the last 50
years.
The La Mesa Watershed is the only remaining
rainforest of its size in Metro Manila, Philippines.
Saltwater Intrusion
Metro Manila is one of the areas in most risk of saltwater intrusion. Since the late 1960s, saline water intrusion
has been evident along with the coastal areas of Metro Manila, stretching from Las Pinas to Malabon. The
shallow water table aquifer is in direct contact with the sea in these coastal areas. The over-pumping of
groundwater results to cones of depression which increases the risk of saltwater intrusion. According to a joint
study by MWSS and JICA in 1991, most groundwater samples from Metro Manila’s coastal areas were salinized.
However, compared to the early 1980s, the saline intrusion was found to have improved conditions because of
the conversion of water source from groundwater to surface water upon the completion of the Manila Water
Supply Project II in 1987. Aside from excessive withdrawal of groundwater, seepage of brackish water along the
Pasig River is another cause of saltwater intrusion because of seawater movement during tides.
References
1."WATER RESOURCES" (http://www.denr.gov.ph/index.php/component/content/article/19.html), www.denr.gov.ph,
Retrieved October 29, 2015.
2. Asian Development Bank; Asia-Pacific Water Forum (2007). Country Paper Philippines. Asian Water Development
Outlook 2007 (http://www.adb.org/publications/asian-water-development-outlook-2007) . Asian Development Bank. ISBN
9789814136068. Retrieved April 14, 2008. p. 5
3. "Agricultural Water Management Systems in the Philippines: Current Status and Policy Direction"
(http://www.fftc.agnet.org/library.php?func=view&style=type&id=20140304162637 ) www.fftc.agnet.org . Retrieved October 29,
2015 .
Retrieved from https://en.wikipedia.org/w/index.php?title=Water_supply_and_sanitation_in_the_Philippines&oldid=1189798389
P a g e | 16 of 3

Water Supply and Sanitation in The Philippines Week 1-2

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Water Supply and Sanitation in The Philippines Week 1-2

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Republic of the Philippines COLLEGE OF ENGINEERING AND TECHNOLOGY

Water supply and sanitation in the Philippines

Levels of water systems

Levels of water systems in the Philippines

Level II Piped water with a communal water point (e.g.

The handpump is an example of a

Local Government Units

A water district is a utility that is legally and financially separate from

Large-scale Private Operators

Small-scale independent providers

Benchmarking of water utility models

Sewage and Sanitation

Water bill information

Value Added Tax

Previous Unpaid Amount

1976 National Water Code (PD 1067)

Philippine Clean Water Act of 2004 (RA 9275)

Government Agencies and Institutions

National Water Resources Board (NWRB)

Rural Waterworks Development Corporation (RWDC)

Department of the Interior and Local Government

Philippine Center for Water and Sanitation

Philippine Society of Sanitary Engineers, Inc.

Financing and External Cooperation

Asian Development Bank (ADB

The following report shows information about past performances:

ADB Assistance to Water Supply and Sanitation Sector in the Philippines

German Corporation for International Cooperation (GIZ)

Manila Third Sewerage Project

Urban Water and Sanitation Project APL2

Metro Manila Wastewater Management Project (MWMP)

Population and Pollution

One-third of Philippine river systems are considered suitable

With rapid increases in population, urbanization, and

El Niño and Global Warming

Denudation of Forest Cover

The supply of water from most freshwater bodies usually

Retrieved from https://en.wikipedia.org/w/index.php?title=Water_supply_and_sanitation_in_the_Philippines&oldid=1189798389

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