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 47,895 million 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 423 smaller dams. Dams and reservoirs are mainly used for water storage, water supply, irrigation, regulation of flood, and hydropower.^[1]

The water in the metropolitan area of Manila is mostly supplied by the Angat Dam, Ipo Dam, and La Mesa Dam (also known as Angat-Ipo-La Mesa water system). Well-known and larger dams in the rural areas include Ambuklao Dam (developed for flood control, irrigation, and hydroelectric power source of Baguio and 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28.52 billion m³ of water were withdrawn from various sources in the Philippines in 2000: 74% (21.10 billion m³) was used for agricultural purposes, 9% (2.57 billion m³) for industrial processes, and 17% (4.85 billion m³) for domestic consumption.^[2]

Agricultural

Agricultural water management in the Philippines is primarily focused on irrigation. The country has 3.126 million 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 an individual or small groups of farmers through a Private Irrigation System (PIS).^[3]

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 1999 study 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.^[5]

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.^[6]

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.^[8]

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:

Service providers

According to the Joint Monitoring Programme (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.^[12]

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.^[14]

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 861 municipalities 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] In 2010, USAID and the ADB agreed to support PAWD in establishing a national Water Operators Partnerships (WOPs) program that promotes twinning partnerships among Water Districts.^[16]

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 receive 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 August 2007, 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.^[20]

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 in 1997. 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.^{[citation needed]}

In 2015, 92% of the total population had access to "at least basic water", or 94% in urban areas and 90% in rural 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 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 Programme 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.^[25]

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.^[28]

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.^[29]
• 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 is 0.18% 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.^[30]
• Environmental Charge: This is for the mitigation of environmental impacts in the course of water and wastewater operation.^[29] It is 20% of the Basic Charge applicable to all customers.^[31]
• 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.^[31]
• Maintenance Service Charge: This covers the maintenance of the water meter. The charge changes depending on the size of the water meter.^[31] For customers of Manila Water in Metro Manila, the minimum charge is 1.50 Philippine pesos for a 13mm-sized meter.^[29]

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 desludging 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 process 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.^[32]

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.

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.^[38]

Cost-recovery

The operation ratio (O) of a certain water service provider reflects its cost-recovery situation. It is computed by the following formula:

${\displaystyle O=C/R}$

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.^[39]

Investment

According to the World Bank, investment in water supply and sanitation from 1983 to 2003 has been far below 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.^[40]

Political Aspectsedit

Historyedit

From the Philippines' independence in 1946 until 1955, most water supply systems were operated by local authorities. From 1955 to 1971, control of urban water supply was passed to the national government.^[41] In order to improve service delivery, the sector has been repeatedly subjected to extensive reforms which created numerous institutions and responsibilities. However, comprehensive water resources management was only introduced in 2004.

Pre-Marcos Administrationedit

The Manila Waterworks Authority, founded in 1878, became part of the National Waterworks and Sewerage Authority (NAWASA) when it was founded in 1955.^[42]

Marcos Administration (1965–1986)edit

• 1971. NAWASA was transformed into the Metropolitan Waterworks and Sewerage System (MWSS) under the government of Ferdinand Marcos. MWSS was made responsible for service provision in Metro Manila, whereas other municipal and provincial water and sewerage systems in about 1,500 cities and towns were transferred back to local governments.^[42]
• 1973. A new management model for urban water supply was introduced: LGUs were encouraged to form utilities called Water Districts which would operate with a certain degree of autonomy from LGUs. They would receive technical assistance and financial support from the newly created Local Water Utilities Administration (LWUA).^[41]
• 1976. The National Water Resources Board (NWRB) was created through the National Water Code of the Philippines to coordinate policies concerning water resources.^[43]
• 1980. The Rural Waterworks Development Corporation (RWDC) was founded. It is responsible for water supply in areas where neither MWSS nor LWUA carries out the service or assists the LGUs, respectively. The RWDC was expected to create rural water supply associations in order to construct, operate, and maintain their own water supply systems in communities with fewer than 20,000 inhabitants.^[41][44] It was also the beginning of the United Nations' International Drinking Water Supply and Sanitation Decade (1980–1989). The Integrated Water Supply Program (1980–2000) was initiated by the national government. Its main objective was to increase water coverage to 70% of the Filipino population by 1987 and 90% by 1992. Consequently, the development of the sector was supported with great effort: Between 1978 and 1990, more than US$120 million was invested in 11 rural water supply projects. Nevertheless, toward the end of the decade, only 4,400 functioning rural water systems, about 5% of the 96,200 potential systems, existed in the country. Many of the recently constructed systems failed shortly after completion, partly due to poor construction and service.^[45] The Asian Development Bank (ADB) found that insufficient community participation may have led to inadequate operation and maintenance.^[46]

Aquino Administration (1986-1992)edit

• 1987. The Local Water Utilities Administration took over the work of Rural Waterworks Development Corporation (RWDS) which had been created only seven years earlier.^[47] The Rural Water Supply and Sanitation Master Plan of 1988 provided for the installation of 81,900 rural water supply systems by 1991. The Department of Public Works and Highways (DPWH) was expected to construct and rehabilitate Level I water wells, rainwater collectors, and springs. Every barangay should receive at least one additional potable water source. In addition, the Department of Local Government and Community Development (DLGCD) was given the task of training local water user associations in the operation and maintenance of water facilities.^[48]
• 1991. Under the Local Government Code, certain infrastructure functions were devolved to LGUs. Barangays, municipalities, provinces, and cities were authorized to finance, operate, and maintain their own water supply systems.
• 1992. According to the Medium-Term Philippine Development Plan of 1983–1998, 80% of the rural population was provided with Level I water supply services at the end of Aquino's term of office in 1992. 61% had direct service connections in Metro Manila and 47% in other urban areas of the country were covered by Level II and III water systems.^[43][49]

Ramos Administration (1992-1998)edit

The planning, preparation, and implementation of the privatization of the Metropolitan Waterworks and Sewerage System (MWSS) occurred under the Ramos administration.^[50]

• 1995. The Water Crisis Act was passed, providing the legal framework for the privatization of MWSS. Private participation was implemented through a concession contract in which the concessionaires were assigned the task of operating and managing the facilities while MWSS preserved the ownership of the infrastructure.^[51] In order to facilitate benchmark comparisons, the service area of Metro Manila was divided into two zones.
• 1996. The plan to privatize Metropolitan Waterworks and Sewerage System (MWSS) emerged from the inability of the public utility to expand coverage to the growing population. By 1996, MWSS only provided the water supply for an average of 16 hours each day to two-thirds of its coverage population. According to the ADB, the share of non-revenue water (NRW), water which is not billed (e.g., due to leakage and illegal connections), was over 60% --- an extremely high percentage compared to other developing countries.^[52]
Zdroj:https://en.wikipedia.org?pojem=Water_supply_and_sanitation_in_the_Philippines
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