Philippine

Water Supply and

Sanitation Master Plan
Published by the:
National Economic and Development Authority (NEDA)
12 Saint Josemaria Escriva Drive, Ortigas Center
Pasig City, Philippines
https://neda.gov.ph
Acknowledgements
The National Economic and Development Metropolitan Waterworks and Sewerage
Authority extends its deep appreciation and System;
gratitude to the various agencies and Philippine Association of Water Districts;
organizations for their invaluable Philippine Water Partnership;
cooperation and support in the multi- Public-Private Partnership Center;
stakeholder planning process in preparing River Basin Control Office; and
the Philippine Water Supply and Sanitation University of the Philippines - National
Master Plan. Hydraulic Research Center.
Formulating a national water supply and
The development partners, whose
sanitation master plan has proven to be a
unwavering support towards the
great challenge, considering about 7,641
improvement of the country’s water and
islands, and coordinating with 12 water
sanitation sector is again manifested in the
resources regions, 17 administrative
preparation of this plan:
regions, over 700 water districts, and
approximately 5,000 Level III water service Asian Development Bank;
providers. Thus, the Agency would like to Development Bank of the Philippines;
recognize the assistance and proactive Japan International Cooperation Agency;
collaboration of the following central and Land Bank of the Philippines;
regional agencies: Oxfam International;
United Nations Children's Fund;
Department of Agrarian Reform;
United Nations Development Programme;
Department of Agriculture;
United States Agency for International
Department of Budget and Management;
Development;
Department of Energy;
Water.org;
Department of Environment and Natural
World Bank; and
Resources;
World Health Organization.
Department of Finance;
Department of Health;
The various private water and sanitation
Department of the Interior and Local
service providers whose representatives
Government;
and resource persons took the time to
Department of Public Works and Highways;
actively participate in the project’s
Department of Tourism;
numerous workshops and dialogues:
League of Cities of the Philippines;
League of Municipalities of the Philippines;
Balibago Waterworks;
Local Water Utilities Administration;
Manila Water Company, Inc.;
National Anti-Poverty Commission;
Maynilad Water Services Inc.;
National Irrigation Administration;
Metro Pacific Water; and
National Water Resources Board; and
Suez Environment.
Office of the President - Office of the
Executive Secretary.
And lastly, the NEDA Regional Offices and
NEDA also acknowledges these other staff, local government units, water districts,
agencies and institutions for their valuable members of the academe, and all water and
inputs and contributions to this plan: sanitation service providers who have been
very instrumental in crafting this plan.
Bureau of Soils and Water Management;
Through their efforts, the plan’s
National Housing Authority;
development has been participatory and
Cooperative Development Authority;
consultative and has reflected what the
Department of Human Settlements and
stakeholders, both at the national and local
Urban Development;
levels, truly need.
Department of Social Welfare and
Development;

v
 Acronyms
ADB Asian Development Bank DENR Department of Environment and Natural
Resources
AIIB Asian Infrastructure Investment Bank DepEd Department of Education

AIS Administrative and Institutional System DHSUD Department of Human Settlements and
Urban Development
APIS Annual Poverty Indicators Survey DILG Department of the Interior and Local
Government
ARMM Autonomous Region of Muslim Mindanao DMA District Metered Area

AWQMF Area Water Quality Management Fund DOE Department of Energy

BOD Biochemical Oxygen Demand DOF Department of Finance

BOT Build-Operate-Transfer DOH Department of Health

BUB Bottom-Up Budgeting DOST Department of Science and Technology

BWSA Barangay Waterworks and Sanitation DOT Department of Tourism

Associations
CAR Cordillera Administrative Region DPWH Department of Public Works and Highways

CBO Community-Based Organization DSWD Department of Social Welfare and

Development
CCC Climate Change Commission DTI Department of Trade and Industry

CDA Cooperative Development Authority DWR Department of Water Resources

CDC Clark Development Corporation EIA Environmental Impact Assessment

CESCR Committee on Economic, Social, and Cultural EMB Environmental Management Bureau
Rights
CHED Commission on Higher Education ENSO El Niño Southern Oscillation

COA Commission on Audit EO Executive Order

CPC Certificate of Public Convenience EOHO Environmental and Occupation Health

Office
CPI Consumer Price Index ESC Environmental Sanitation Clearance

DA Department of Agriculture FAO Food and Agriculture Organization

DBM Department of Budget and Management FIES Family Income and Expenditure Survey

DBP Development Bank of the Philippines FMB Forest Management Bureau

DED Detailed Engineering Design FS Feasibility Study

vi
GFI Government Financial Institution LLDA Laguna Lake Development Authority

GOCC Government-Owned and Controlled Corporation LMP League of Municipalities of the

Philippines
HB House Bill LPP League of Provinces of the Philippines

HLURB Housing and Land Use Regulatory Board * LSSP Local Sustainable Sanitation Plan
(reconstituted to HSAC and DHSUD)
HSAC Human Settlements Adjudication Commission LWD - Local Water District Manual on
MaCRO Categorization, Recategorization and
Other Related Matters
HUC Highly Urbanized City LWUA Local Water Utilities Administration

HUDCC Housing and Urban Development Coordinating M&E Monitoring and Evaluation
Council* (reconstituted to DHSUD)
IA Implementing Agency MDFO Municipal Development Fund Office

IEC Information, Education, and Communication MDG Millennium Development Goals

INFRACOM NEDA Board Committee on Infrastructure MFI Microfinance Institution

INFRACOM - NEDA Board Committee on Infrastructure — MIS Management Information System

SCWR Sub-Committee on Water Resources
IRA Internal Revenue Allotment MMDA Metro Manila Development Authority

IRR Implementing Rules and Regulations MOA Memorandum of Agreement

iWASH Integrated Safe Water, Sanitation and Hygiene MWPV Manila Water Philippine Ventures, Inc.

IWRM Integrated Water Resources Management MWSS Metropolitan Waterworks and Sewerage
System
JICA Japan International Cooperation Agency NAPC National Anti-Poverty Commission

JV Joint Venture NAWASA National Waterworks and Sewerage

System Authority
KPI Key Performance Indicator NBC National Building Code

KRA Key Reform Agenda NCR National Capital Region

LBP Land Bank of the Philippines NDHS National Demographic and Health Survey

LGC Local Government Code NEDA National Economic and Development

Authority
LCP League of Cities of the Philippines NGA National Government Agency

LGU Local Government Unit NGO Non-Governmental Organization

LGSF - AM Local Government Support Fund — Assistance NHA National Housing Authority
to the Municipalities

vii
NIA National Irrigation Administration PSA Philippine Statistics Authority

NPC National Power Cooperation PSC Project Steering Committee

NRS Natural Resources System PSSR Philippine Sustainable Sanitation Roadmap

NRW Non-Revenue Water PWSSIS Philippine Water Supply and Sanitation

Information System
NSSMP National Sewerage and Septage Management PWSSMP Philippine Water Supply and Sanitation
Program Master Plan
NWMC National Water Management Council PWSSR Philippine Water Supply Sector Roadmap

NWQMF National Water Quality Management Fund RA Republic Act

NWRB National Water Resources Board RBCO River Basin Control Office

O&M Operation and Maintenance RBO River Basin Organization

OBA Output-Based Aid RDC Regional Development Council

OCD Office of Civil Defense RO Regulatory Office

ODA Official Development Assistance ROI Return on Investment

OGCC Office of the Government Corporate Counsel RORB Return on Rate Base

OP Office of the President RWH Rainwater Harvesters

OPDS Office of Project Development Services RWSA Rural Waterworks and Sanitation
Association
PAGASA Philippine Atmospheric, Geophysical and SALINTUBIG Sagana at Ligtas na Tubig Para sa Lahat
Astronomical Services Administration
PAPs Programs, Activities, and Projects SB Sangguniang Bayan

PAWD Philippine Association of Water Districts SBMA Subic Bay Metropolitan Authority

PD Presidential Decree SDG Sustainable Development Goal

PDP Philippine Development Plan SES Socioeconomic System

PDRS Project Development and Other Related TIEZA Tourism Infrastructure and Enterprise Zone
Studies Authority
PEZA Philippine Economic Zone Authority TOR Terms of Reference

PFI Private Financial Institution TWG Technical Working Group

PHO Provincial Health Office TWSIP Tourism Water Supply Infrastructure

Program
PIP Public Investment Program ULAP Union of Local Authorities of the Philippines

PMO Project Management Office UN United Nations

PNSDW Philippine National Standards for Drinking UNICEF United Nations Children's Fund
Water
PPP Public - Private Partnership URAF Unified Resource Allocation Framework

viii
USAID United States Agency for International
Development
VGF Viability Gap Funding

WDM Water Demand Management

WRC Water Regulatory Commission

WRR Water Resources Region

WSP Water Service Provider

WSS Water Supply and Sanitation

WSSPMO Water Supply and Sanitation Project

Management Office

ix
Currency Equivalents,
Units, and Measures
% percent

CMD cubic meters per day

km kilometer

km²/sq. square kilometer

km.
km³ cubic kilometer

L/s/ha liters per second per hectare

lpcd liters per capita per day

lps liters per second

m meter

m³ cubic meter

m3/d/ha cubic meters per day per hectare

m3/mo cubic meters per month

MCM/ million cubic meters per year

year
mg/L milligrams per liter

mm millimeter

PHP Philippine Peso

PHP/m³ Philippine Peso per cubic meter

psi pounds per square inch

T ton

x
Part of the distribution line of the
Water Supply System of the
Municipality of Dalaguete, Cebu
Executive Summary
The Philippine Water Supply and Sanitation Besides degrading the quality of life in
Master Plan (PWSSMP) serves as the affected localities, unhygienic circumstances
national action plan to achieve universal also spawn poor living and working
access to safe, sufficient, affordable, and environments that exert downward pressure
sustainable water supply, hygiene, and on economic productivity.
sanitation by 2030. Linked to the national
Climate change aggravates the sector’s
water supply and sanitation (WSS) targets,
challenges, such as higher water demand
the PWSSMP is grounded on the realities of
with increasing global temperatures, rainfall
every region, with insights from over 1,000
variability, sea level rise, and extreme
representatives across the country.
weather events, leaving the country more
The PWSSMP defines the activities, vulnerable to longer droughts and floods.
responsible agencies, and budget necessary WSS infrastructure, especially in coastal
to support the WSS sector in addressing the communities, is extremely susceptible to the
needs of the country. The proposed policies disruptive and destructive impacts of these
as well as economic, environmental, and climate hazards.
engineering solutions have all factored in
The WSS sector remains fragmented, and the
different levels of development to match the
efforts of many government agencies remain
specific realities and requirements on the
uncoordinated. The lack of oversight makes
ground. These solutions also recognize that
the programs of the sector prone to
situations, conditions, and challenges vary
exploitation from political factions at the
from one community to another.
expense of long-term goals and the
communities’ welfare.

Sector Overview The need for a unifying apex body for the
water sector and the enforcement of its
The gap between available water supply and reforms are both urgent and imperative.
demand continues to widen in the country.
Some areas are already experiencing water
stress and water scarcity. The water crisis is Vision and Development
projected to worsen by 2040 if the sector
remains business as usual. Outcomes
About 12.40 million people are limited to Every Filipino must have access to a
getting water from unsafe sources. Some sustainable and affordable safe water supply
areas do not have water service providers as well as adequate safely managed
(WSPs). Most WSPs are not financially and sanitation services.
technically capable of delivering the required With only 87.7 percent of the population
services to a growing population, let alone having access to safe water and 73.8 percent
expanding their coverage. In addition, only to basic sanitation as of 2015, achieving the
515 or 68.9 percent of the country’s 748 sectoral goals of 95.0 percent access to safe
water districts (WDs) are operational at water and 97.0 percent access to basic
varying levels of efficiency and coverage. sanitation by 2022, and universal access to
Because of inadequate improved sanitation WSS services by 2030, is a challenge. The
facilities, more than four million people are national standards set for water quality,
constrained to practice open defecation. An availability, and pressure must be met.
additional two million are limited to using WSS providers must focus on customer-
unprotected pit latrines or buckets. These oriented business and financial models to
conditions expose them to higher risks of sustain their operations. Local government
contracting foodborne and waterborne units (LGUs) can enhance the well-being of
diseases. These risks result in high their constituents with appropriate, reliable,
incidences of water-related diseases, such as and efficient WSS services.
typhoid and acute bloody diarrhea. In
addition, these illnesses have economic Open defecation must be eliminated by 2022.
repercussions on our people and the country. Sewerage and septage management services

xii
must be available, starting with highly amounting to PHP 1.13 billion that would cover the
urbanized cities (HUCs). implementation of the PWSSMP reform programs.
Furthermore, developing reliable WSS
information systems supports the initiative to
unite the sector. Implementation, Monitoring, and
Evaluation Arrangements
The execution of the PWSSMP includes four
Priority Reforms and Investment phases. Phase 1 (2019), or the pre-investment
Program phase, includes the approval and adoption of the
PWSSMP and Investment Program, which will not
The PDP 2017–2022 identifies the creation of
require any investment costs. The Investment
an apex body as key to institutionalizing
Program covers the projects in Phase 2 (2020 to
reform. The PWSSMP introduces the eight key
2023) and Phase 3 (2024 to 2030). Phase 4
reform agenda (KRA), each designed as a
(beyond 2030) will cover the remaining projects
cluster-type solution to complement
and activities that may be implemented beyond
infrastructure investments.
2030 up to the culmination of AmBisyon Natin
The eight KRA focuses on the following: 2040. Implementing these projects require
commitment and collaboration among agencies in
 Establishing effective WSS sector
the WSS sector, with a strong champion being key
institutions;
to coordinating all efforts. While the envisioned
 Strengthening the regulatory environment; apex body is being considered, a project
management office (PMO) can assume this role in
 Creating and ensuring effective WSS the interim.
services;
The Philippine WSS Information System
 Balancing water supply and demand; (PWSSIS) and regional offices will monitor the
 Building climate resiliency; progress of the infrastructure projects, while the
National Economic and Development Authority
 Enabling access to funding and financing; (NEDA) and PMO will monitor the progress of the
 Managing data and information; and
KRA.

 Driving research and development.

The implementation of the reform programs

and activities in the areas mentioned above will
create the enabling environment that the sector
needs to achieve its target goals. The said
implementation will spur infrastructure
development in the water sector through
interventions backed by robust investments,
which will benefit households that do not have
access to safe water and improved sanitation.

Investment Program and

Financing Plan
The total budget required to achieve WSS
universal access is estimated at PHP 1.07
trillion over 11 years (2020–2030). Around
PHP 0.73 trillion is required to achieve the PDP
targets. Another PHP 0.34 trillion is needed to
achieve universal access by 2030. These
figures also include non-physical investments

xiii
 Table of Contents
Acknowledgements .................................................................................................................. v

Acronyms.................................................................................................................................. vi

Currency Equivalents, Units, and Measures ............................................................................ x

Executive Summary ................................................................................................................. xii

Table of Contents .................................................................................................................... xiv

List of Tables………………………………………………………………………………………….. xvi

List of Figures…………………………………………………………………………………………. xvii

Chapter 1: Introduction ........................................................................................................ 2

1.1 Background ........................................................................................................... 2

1.2 Strategy ................................................................................................................. 4

1.3 Principles................................................................................................................ 5

1.4 Program Logic Model….……………………………………………………………….. 7

Chapter 2: Sector Overview ................................................................................................. 8

2.1 Background ………................................................................................................ 8

2.2 Water Resources ................................................................................................... 10

2.3 Institutional Governance ....................................................................................... 20

2.4 Access and Coverage ........................................................................................... 26

2.5 Technical and Operating Performance ................................................................. 33

2.6 Government Interventions: Policy and Program Reforms ..................................... 44

2.7 Financing and Investments ................................................................................... 49

2.8 Regulation ............................................................................................................. 54

2.9 Issues and Challenges .......................................................................................... 56

Chapter 3: Vision and Development Outcomes ................................................................... 58

3.1 Vision ..................................................................................................................... 58

3.2 Sector Goals and Outcomes: Benchmarks and Targets ....................................... 58

Chapter 4: Priority Reforms, Programs, and Activities ........................................................ 68

4.1 Policy Directions .................................................................................................... 68

4.2 Key Reform Agenda (Soft Components) ............................................................... 71

4.3 Key Reform Agenda Action Plan ........................................................................... 82

4.4 Priority Programs: Key Actions (Hard Components) ............................................. 109

xiv
Chapter 5: Investment Program and Financing Plan ..................................................... 114

5.1 Investment Requirements .................................................................................. 114

5.2 Financing Plan ................................................................................................... 115

5.3 Plan Timeline ..................................................................................................... 124

Chapter 6: Implementation, Monitoring, and Evaluation Arrangements ……………….. 132

6.1 General Oversight and Guidance .................................................................... 132

6.2 Management and Supervision ......................................................................... 133

6.3 Project Execution ............................................................................................. 133

6.4 Framework of Collaboration ........................................................................... 134

6.5 Mechanisms and Processes (General) ............................................................ 136

Glossary and Bibliography 142

xv
 List of Tables Page
Table 1: IWRM of the WSS Sector 6
Table 2: Water Supply Service Providers by Management Type 24
Table 3: Water Service Providers Registered Under Listahang Tubig (2018) 28
Table 4: Service Level against Classification of Source of Water 29
Table 5: Sanitation Service Ladder 31
Table 6: Key Performance Indicators (KPIs) of WSPs, National Average 33
Table 7: KPIs per Region for WSPs Registered under Listahang Tubig 34
Table 8: KPIs per WSP Management Type for Those Registered under Listahang Tubig 36
Table 9: Water District Creditworthiness by Region 39
Table 10: Performance of Water Districts in Terms of Operating Ratio 39
Table 11: Manila Water and Maynilad Coverage Areas in Mega Manila 41
Table 12: Estimated Coverage of Septage Management Programs in the Philippines, 2015 42
Table 13: Estimated Coverage of Sewerage System Services in the Philippines, 2015 42
Table 14: Septage and Sewerage Services Coverage by Concessionaires in Mega Manila, 2017 43
Table 15: Major Reform Initiatives in the Water Sector 45
Table 16: Average Minimum Charge for the First Ten Cubic Meters 50
Table 17: General Indicators for the Approval of Tariffs 50
Table 18: Investments in the WSS Sector Since 2010 52
Table 19: Investments in the WSS Sector by Donor Agencies Since 2011 52
Table 20: Water Supply and Sanitation Projects under PPP Arrangements 53
Table 21: Relevant Legislation, Policies, and Issuances (2002–2017) 55
Table 22: Regulating Agencies in the WSS Sector 55
Table 23: WSS Issues and Challenges 56
Table 24: Sector Goals and Benchmarks 58
Table 25: Normative Content of the Human Right to Water Supply 59
Table 26: Water Supply National Targets and Commitments for 2022 and 2030 60
Table 27: Minimum Frequency of Sampling for Drinking Water Supply Systems for
61
Microbiological Examination (from PNSDW)
Table 28: Proposed Benchmarks for the Water Supply Sector 63
Table 29: Normative Content to the Human Right to Sanitation 64
Table 30: Proposed Benchmarks for the Sanitation Sector 67
Table 31: House Bills Filed for the Creation of an Apex Body from 2013–2018 69
Table 32: Eight Key Reform Agenda 71
Table 33: Issues and Challenges of Each WSS Component by Key Reform Agenda 72
Table 34: Investment Requirements to Achieve WSS Sector Targets 109
Table 35: Summary of Identified Programs and Projects 111
Table 36: Total Investment Requirements from 2020–2030 114
Table 37: Total Amount of Non-Physical Investments for 2020–2023 115
Table 38: Ranking of Provinces with the Highest Poverty Incidence among Families 117
Table 39: Percentage of Grant Allocation per Income Class 118
Table 40: Immediate Key Activities 125
Table 41: Projects under the Priority Investment Program 126
Table 42: Priority Investment Program 1217
Table 43: Proposed Strategic Interventions for Water Supply 128
Table 44: Scope of Works Requiring Capital Investments Needed for the Water Supply Targets 128
Table 45: Proposed Strategic Interventions for Sanitation 129
Table 46: Management and Supervision for PWSSMP Implementation 133
Table 47: Results-Based Monitoring and Evaluation Matrix 137
xvi
 List of Figures Page
Figure 1: WSS Targets for 2020, 2022, and 2030 2
Figure 2: IWRM Principles Adopted in the PWSSMP Framework 6
Figure 3: Program Logic Model 7
Figure 4: Water Resources Regions and Administrative Regions 9
Figure 5: Climate Types in the Philippines 11
Figure 6: Average Rainfall in 2015 (in mm) 12
Figure 7: Major River Basins 13
Figure 8: Groundwater Availability per Aquifer Type 14
Figure 9: Water Resource and Total Water Resources Potential 15
Figure 10: Total Water Resources Potential per Administrative Region 16
Figure 11: Map of Water Resources Potential per Administrative Region 16
Figure 12: Consumptive Water Use by Sector (NWRB Water Rights, as of 2017) 17
Figure 13: Water Availability per Capita per Annum (Using 2015 Values for Population) 19
Figure 14: Functional Chart of Water-Related Agencies in the Philippines 20
Figure 15: Functional Chart of Sanitation-Related Agencies in the Philippines 25
Figure 16: Main Sources of Water Supply of the Population (PSA FIES, 2015) 26
Figure 17: Access to Safe Water Sources Trend 26
Figure 18: Proxy Value of Data for Safe and Accessible Drinking Water Using Available Secondary
Data 27
Figure 19: Access to Safe and Accessible Drinking Water per NDHS 27
Figure 20: Levels of Service in Percentages by Region (FIES, 2015) 29
Figure 21: Components of Sanitation Infrastructure 30
Figure 22: Access to Basic Sanitation Data from Available Sources 31
Figure 23: 2015 Philippine Sanitation Coverage (PSA) 32
Figure 24: Creditworthiness of WD Samples in 2016 Credit Classification 37
Figure 25: Operational and Non-Operational Water Districts 38
Figure 26: Historical Policy and Program Reforms in the Water Sector 44
Figure 27: Organizational Chart for Implementing the National Sewerage and Septage
Management Program 47
Figure 28: Coverage Baseline and Targets in 2022 and in 2030 towards 100% Coverage 60
Figure 29: PWSSMP Results Framework Diagram 71
Figure 30: DILG Projects for 2019 113
Figure 31: Breakdown of Water Supply Investments, 2020–2023 116
Figure 32: Grant Allocation for Water Supply Projects 117
Figure 33: Financing Plan for Water Supply Sector Investments (in PHP Billion), 2020–2023 119
Figure 34: Flow of Funds for Water Supply Investments (in PHP Billion), 2020–2023 119
Figure 35: Breakdown of Sanitation Investments, 2020–2023 120
Figure 36: Grant Allocation for Sanitation Projects 121
Figure 37: Funding and Financing Allocation for Sanitation Projects (in PHP Billion) 122
Figure 38: Proposed Flow of Applications for Financing Sanitation Projects 123
Figure 39: Proposed Flow of Funds for Sanitation Projects (in PHP Billion) 123

xvii
 1 Introduction
1.1 Background
“The human right to water is indispensable for lead-
ing a life in human dignity. It is a prerequisite for the
realization of other human rights.”1
The Philippine Water Supply and  Combines the investment for the
Sanitation Master Plan (PWSSMP) is a Philippine Water Supply Sector
national action plan to achieve universal Roadmap (PWSSR) and the Philippine
access to WSS services by 2030. Sustainable Sanitation Roadmap
(PSSR) into one comprehensive plan
The PWSSMP sets the direction towards
(see Chapter 5); and
achieving the water supply and sanitation
(WSS)-related targets stipulated in the  Formulates a monitoring and evaluation
Clean Water Act of 2004, Philippine (M&E) system (see Chapter 6).
Development Plan (PDP) 2017-2022, and
In addition to this document, the PWSSMP
the United Nations (UN) Sustainable
includes the following:
Development Goals (SDG). Figure 1
presents the sector targets and their  Seventeen regional roadmaps: region-
prescribed period for target completion. specific data, targets, and proposed
projects;
In setting the direction to achieving the
WSS targets, the PWSSMP:  A PWSSMP data book: maps showing
the existing major WSS infrastructure;
 Proposes strategies and policy reforms
and
based on current and potential issues
(see Chapter 4);  A WSS database management system
(www.pwssmp.com/login).
 Identifies priority short-, medium-, and
long-term programs and projects (see
Chapter 5);

1
General Comment No.
15 on the Right to
Water, 2002, United
Nations Committee on
Economic, Social, and
Cultural Rights (UN
CESCR)

2
Figure 1: WSS Targets for 2020, 2022, and 2030
3
 1.2 Strategy
contamination, but statistics reveal the high
incidence of waterborne diseases in areas
1.1.1 Overall Strategy where open defecation and unimproved
The overall strategy of the PWSSMP is to sanitation facilities are prevalent.
establish a living plan that is comprehensive,  Climate change and natural hazards (e.g.,
participatory, and operational. erosion and flooding) often damage WSS
 Living. The PWSSMP has been developed infrastructure, thus threatening the supply of
with short-, medium-, and long-term clean and safe water.
initiatives in mind. The plan includes an  A strong institutional setup is an overarching
M&E system to check the progress in prerequisite to setting the country’s
achieving WSS targets as well as to fragmented WSS sector in the right direction.
effectively improve in accomplishing
planned objectives.  The PWSSMP maximizes existing available
data and recommends measures towards
 Comprehensive. The PWSSMP improving the availability and management
integrates all WSS-related initiatives, plans, of quality and timely data on the WSS sector.
programs, and projects with short-, medium-
and long-term investments.
 Participatory. The PWSSMP involves Assumptions
various stakeholders such that  Service levels of water supply are classified
responsibilities for implementation and based on how water supply is accessed by
completion of targets are shared across all households (e.g., from source, communal
concerned agencies, local government units faucets, or private faucets). However, it does
(LGUs), organizations, and institutions. not define nor guarantee the accessibility,
 Operational. The PWSSMP is practical. It
quality, quantity, and reliability of water
defines clear targets and reform agenda supply.
using existing policies and laws while also  Septage and sewage treatment facilities,
proposing solutions in achieving WSS especially in highly urbanized cities (HUCs),
targets. are preferred to safely manage excreta and
wastewater. Basic sanitation (e.g., toilets
with septic tanks) in rural areas will be
1.1.2 Scope, Limitations, and prioritized as an initial step towards
improving sanitation.
Assumptions
 WSS infrastructure investments that can
The following guidelines have been used in contribute to achieving sector targets were
developing the PWSSMP: determined with LGU representatives during
Scope and Limitations the regional consultation workshops. Where
gaps remain, required cost estimates for
 Three potential water sources are infrastructure development will be derived
considered: surface water, groundwater, using unit costs per household. These
and rainwater. However, the excessive use investments include new or expansion of
of groundwater (e.g., overextraction) is infrastructure to bridge these gaps, build
discouraged to avoid any further intrusion of water and sanitation infrastructure and
saltwater into groundwater reserves and upgrade existing systems and facilities.
groundwater-related land subsidence.
 Despite the abundance of surface water
and groundwater, the country’s topology
makes water resources unevenly distributed
and, in some cases, not easily accessible.
Rainwater can be optimized in such areas.
 Open defecation and unimproved sanitation
facilities continue to contaminate surface
4 water, groundwater, and coastal water.
There is no data on the extent of
1.3 Principles
Access to water and sanitation is a human right.

The PWSSMP affirms the UN declaration of the 5. The WSP’s goal is to provide sustainable
human right to water. In addition, the Philippine water and sanitation services in the most
Constitution emphasizes that “the State values the efficient and economical way. This is to
dignity of every human person and guarantees full ensure that the normative content of the right
respect for human rights.”2 The three main actors in to water is being met. The WSP should also
the human rights-based approach are the following: be managed as an economic enterprise
without prejudice to the aforementioned
human right principles, to continually protect
 LGUs and water districts (WDs) as duty bearers
the right to water and to assure sustainable
(or as water service providers [WSPs] or operations. Lastly, the WSP must be
regulators): Create conditions for the realization financially viable, so that it will have enough
of all human rights for all, especially the most funds to maintain the water system and
vulnerable, by providing goods, services, expand its coverage to serve more people.
institutions and resources based on human rights (efficiency and non-discrimination)
standards, norms, and principles;
The WSS sector must follow the
 Water users as claimholders: Exercise rights
responsibly and claim entitlements to goods, Integrated Water Resources
services, institutions, and resources necessary Management (IWRM) principle.
for quality of life consistent with humanity and
The PWSSMP uses the IWRM principle towards
dignity; and
a comprehensive and integrated approach in
 Economic, social and political interest groups or describing the sector and addressing the gaps
power blocs as other actors: Influence towards ultimately achieving the national targets
claimholders and duty bearers. and commitments. As such, the following
interlinked systems have been considered:
The following shall guide the WSPs’ operation and
management:  Natural Resources System (NRS) which is
governed by the climatic and physical
1. The WSP operates in a transparent and
conditions of the Philippines affecting its water
accountable way, such that there are clearly
resources. The NRS also considers the
defined systems and procedures covering all
country’s water resources regions (WRR);
aspects of operations, including the
accountabilities of each officer and staff.  Socioeconomic System (SES) which is
Management reports on the performance of the defined by the demographic, social, and
water utility shall be submitted and made public. economic conditions that determine the
(transparency and accountability) demand for WSS; and
2. The WSP shall conduct its operations in  Administrative and Institutional Systems
accordance with parameters of service delivery (AIS) which are formed and bound by the
that were previously discussed and agreed upon constitutional, legal, and political systems
by the WSP with the claimholder. These governing WSS.
parameters must also be contained in a
The interface and interaction of the three
Localized Customer Service Code. (participation,
systems that define the multifaceted nature of
rule of law, and empowerment)
the WSS sector have been considered:
3. The claimholder, as a consumer, participates
 Use of and impact on water: Reflected by
actively in the operation of the water utility by
balancing the supply (NRS) and demand
providing timely feedback on its performance and
(SES) as well as the impact of the use and
by supporting its programs and activities. 2
improper management of wastewater; Article 2,
(participation, empowerment, non- Section 11 of
the 1987
discrimination)
Philippine
Constitution
4. The WSP is held accountable by the duty bearer
(LGU) by complying with the service obligations
through a system of regular monitoring and 5
review. (accountability, rule of law)
  WSS infrastructure: Reflected by the WSS Framework
responses of the administrative and
The WSS Sector Assessment was
institutional systems to properly and
undertaken and validated at the regional
sustainably address WSS sector gaps;
consultation workshops which led to the
and
development of the PWSSMP Framework
 Policies, Regulations, and (as shown in Figure 2).
Management: Established and
To achieve the WSS national targets and
promulgated by administrative and
commitments, the vision statement
institutional systems to promote the
underscores sustainable and affordable
sustainable use of limited water
safe water supply as well as adequate
resources
safely managed sanitation services for all.
The objective statements of each system
and interface relative to IWRM principles
are presented in Table 1.

Table 1: IWRM of the WSS Sector

Components of the WSS Sector Objective Statements

Natural Resources System Efficient management of finite water resources and water
ecosystems

Socioeconomic System Promoting socioeconomic growth through WSS

Administrative and Institutional Enabling administrative and institutional arrangements
Systems
Use of and Impact on Water Responsible use and balanced demand and supply
WSS Infrastructure Sufficient, responsive, and sustainable WSS infrastructure
and services
Policies, Regulation, and Setting WSS-related policies, regulations, and management in
Management place

Natural Socioeconomic System

Responsible use and
Resources System
balanced demand
and supply
Promoting socioeconomic growth
Efficient management of finite water through WSS
resources and water ecosystems

Sustainable and affordable safe

water supply as well as
adequate safely managed WSS-
Sufficient,
sanitation related policies,
responsive
services regulations, and
and sustainable
for all management
WSS
Infrastructure

Administrative and Institutional

Systems

Enabling administrative and

institutional arrangements

Figure 2: IWRM Principles Adopted in the PWSSMP Framework

6
1.4 Program Logic Model

Program Logic Model

The Program Logic Model (see Figure 3) sets the direction towards achieving its sectoral
objectives by addressing the issues and challenges of each component of the WSS sector,
ultimately contributing to AmBisyon Natin 2040.

Figure 3: Program Logic Model

7
 2 Sector Overview
2.1 Background
The Philippine water sector has a myriad
of challenges to overcome before it can
cannot cope with the demand for clean water
of the country’s rapidly increasing population,
migration, and economic growth.
fulfill its obligation to assure every Filipino
of adequate and affordable WSS services. In addition to the challenge of providing safe
As shown by official government data and adequate water supply, surface water
below, the sector is still a long way from and groundwater in some areas are
achieving the level of development and contaminated because of open defecation
efficiency necessary to bridge the existing and improper management and disposal of
gaps and address weaknesses within the human excreta and blackwater.
provision of WSS services. Weak or inadequate operation and
The following facts, as of 2015, are as maintenance (O&M) practices also expose
revealing as they are instructive: piped systems to contamination through
illegal tapping and pipe leaks. Unhealthy
 Despite the country’s abundant water sanitation and hygiene practices expose
resources, it has experienced water communities to waterborne diseases.
stress with overall water availability per
capita per year of 1,446 cubic meters;3 The Philippine WSS sector is fragmented,
owing mainly to the weak cooperation among
 Approximately 87.7 percent of the different agencies and LGUs in regard to
national population have access to safe WSS programs, activities, and projects
water supply, while 12.3 percent (12.40 (PAPs). Investments in infrastructure and
million people do not; capacity building have not been
 Less than 50.0 percent of the country’s comprehensively planned and coordinated.
total number of households have piped
The National Economic and Development
water in their premises; with some still
Authority (NEDA) is creating a unifying
getting unsafe water from the tap;
framework for planning, implementation, and
 Approximately 332 municipalities are
funding in the WSS sector.
considered waterless, which means
more than half of their residents do not
have access to safe water;
 Approximately 73.8 percent of
households have access to on-site or off
-site treatment facilities; and
 More than four million people do not
have access to toilet facilities and are
3
United Nations Water
considers an area is
constrained to resort to open defecation.
experiencing water A realistic estimate of the currently
stress when annual
water supplies drop
available freshwater that can serve the
below 1,700 m3 per growing population cannot be determined
person. The values for until an updated comprehensive
the water availability
per capita per year assessment and inventory of the country’s
cover domestic water water resources is conducted.
supply and water uses
for other sectors (e.g., Furthermore, water supply is unevenly
agricultural, industrial,
commercial, power).
distributed across the archipelago on
account of rainfall variability, size, and
features of each island. Available supply
8
 9
Figure 4: Water Resources Regions and Administrative Regions
 2.2 Water Resources
 Type II – No dry season with very
pronounced maximum rainfall from
2.2.1 Water Resources November to April and wet the rest of the
Regions year;

The country is divided into 12 WRR (see  Type III – Seasons not very pronounced:
Figure 4) based on similarities in climate relatively dry from November to April and
and physiographic features. These regions wet the rest of the year; and
are as follows:  Type IV – Rainfall more or less evenly
 Ilocos (WRR 1) distributed throughout the year.

 Cagayan Valley (WRR 2) Rainfall in the country ranges from 1,000 to

4,000 mm per year with an average of 2,400
 Central Luzon (WRR 3) mm. Of this number, 1,000 to 2,000 mm are
 Southern Tagalog (WRR 4) collected as runoff by more than 421 principal
river basins, 59 natural lakes, and numerous
 Bicol (WRR 5) small streams. (Figure 6 shows the average
 Western Visayas (WRR 6) annual rainfall the country received in 2015.)

 Central Visayas (WRR 7) The country experiences climate variability

called El Niño and La Niña. El Niño is the
 Eastern Visayas (WRR 8) warm phase of the El Niño Southern
 Southwestern Mindanao (WRR 9) Oscillation (ENSO), and La Niña is its cool
phase. El Niño lasts from eight to twelve
 Northern Mindanao (WRR 10)
months, occurs every two to seven years, and
 Southeastern Mindanao (WRR 11) has been observed to be strongest every 10
to 15 years. La Niña lasts for one to three
 Southern Mindanao (WRR 12)
years and occurs every three to four years.

2.2.2 Climate and Rainfall

The climate in the Philippines is tropical
and monsoonal with an average
temperature of 27°C throughout the year.
The humidity is relatively high and is
generally above 70.0 percent everywhere
all year nationwide.
The country’s climate is classified into four
types4 (see Figure 5), which are based on
rainfall variability, the influence of the
country’s topography, and air stream
4
per the direction. The four types are enumerated
Philippine below:
Atmospheric,
Geophysical,  Type I – Two pronounced seasons: dry
and
from November to April, and wet the rest
Astronomical
Services of the year;
Administration
(PAGASA)

10
 11
Figure 5: Climate Types in the Philippines
 2
Sector Overview
The climate in the Philippines is tropical
2.1 Water Resources and monsoonal with an average
temperature of 27°C throughout the year.
The humidity is relatively high and
2.1.1 Water Resources generally above 70 percent everywhere all
year.
Regions
The country’s climate is classified into four
The country is divided into 12 WRR (see types5 (see Figure 5), which are based on
Figure 4) based on similarities in climate rainfall variability, the influence of the
and physiographic features. These regions country’s topography, and air stream
are as follows: direction.
 Ilocos (WRR 1) Rainfall in the country ranges from 1,000 to
 Cagayan Valley (WRR 2) 4,000 mm per year with an average of
2,400 mm. Of this number, 1,000 to 2,000
 Central Luzon (WRR 3) mm are collected as runoff by more than
 Southern Tagalog (WRR 4) 421 principal river basins, 59 natural lakes,
and numerous small streams. (Figure 6
 Bicol (WRR 5)
shows the average annual rainfall the
 Western Visayas (WRR 6) country received in 2015.)

 Central Visayas (WRR 7) The country experiences climate variability

called El Niño and La Niña. El Niño is the
 Eastern Visayas (WRR 8) warm phase of the El Niño Southern
 Southwestern Mindanao (WRR 9) Oscillation (ENSO), and La Niña is its cool
phase. El Niño lasts from eight to twelve
 Northern Mindanao (WRR 10) months, occurs every two to seven years,
 Southeastern Mindanao (WRR 11) and has been observed to be strongest
every 10 to 15 years. La Niña lasts for one
 Southern Mindanao (WRR 12) to three years and occurs every three to
four years.

2.1.2 Climate and Rainfall

5
Type I – Two
pronounced seasons
dry from November to
April and wet the rest of
the year
Type II – No dry
season with very
pronounced maximum
rainfall from November
to April and wet the rest
of the year
Type III – Seasons not
very pronounced:
relatively dry from
November to April and
wet the rest of the year
Type IV – Rainfall
more or less evenly
distributed throughout
the year

12
Figure 6: Average Rainfall in 2015 (in mm)
Figure 5: Climate Types in the Philippines Figure 6: Average Rainfall in 2015
 13
Figure 7: Major River Basins
14
Figure 8: Groundwater Availability per Aquifer Type
2.2.3 Surface Water 2.2.5 Total Water Resources
The country’s surface water potential is Potential
approximately 125,790 million cubic meters
The country has a total water resources
(MCM) per year considering 80.0 percent
potential of 145,990 MCM/year. This sum
dependability. Surface water sources
considers the total surface water potential
include approximately 421 river basins, 18
of 125,790 MCM/year (taken at 80.0
of which have a drainage area of more
percent dependability) and the total
than 1,000 square kilometers (km2) and are
groundwater potential of 20,200 MCM/year
considered major basins.
(see Figure 9).
Eight river basins are located in Mindanao,
Figures 10 and 11 show the water
seven in Luzon, two in Panay and one in
resources potential of each administrative
Negros island (see Figure 7). While the
region.
smallest river basins are only less than 50
km2, five principal river basins cover more Region XIII has the greatest water
than 5,000 km 2 namely the Cagayan, resources potential among the
Mindanao, Agusan, Pampanga, and Agno administrative regions, with 12.5 percent
River Basins. (around 18,000 MCM/year) of the country’s
total. As the most urbanized region,
Rivers have been a valuable and primary
National Capital Region (NCR) has the
source of water for irrigation. Rivers can
lowest potential with less than 0.5 percent
also be a more viable and sustainable
of the total (98 MCM/year).
source for water supply. Water from rivers
can supplement supply in urban areas
where water demand continues to increase
as groundwater may no longer suffice.
Other sources of surface water include 59
natural lakes and more than 100,000
hectares (ha) of freshwater swamps. Small
mountain streams, which can swell up to
three times their average size during rainy
months, are not included.

2.2.4 Groundwater
Groundwater resources cover
approximately 50,000 km 2. Major areas are
in Cagayan (10,000 km 2), Central Luzon
(9,000 km2), Agusan (8,500 km 2), and
Cotabato (6,000 km 2). Figure 9: Water Resource and Total Water
Resources Potential5
Groundwater recharge is approximately
20,200 MCM per year. Groundwater
availability is tied to groundwater storage,
which is estimated based on the type and
class of groundwater aquifer that underlies
a specific area (see Figure 8). Major
aquifers (highly permeable) mostly yield
about 3 to 100 liters per second (lps).
These aquifers are “fairly extensive” to
“highly productive” types of aquifers. Minor
5
aquifers (variably permeable) yield mostly Computed based
on groundwater
2 to 20 lps. They are also “fairly to less estimates plus
extensive” and “less productive”. Non- surface water
estimates at 80.0
aquifers (negligibly permeable) mostly yield percent dependa-
less than 1 lps and are made up of rocks bility
with “limited or no groundwater” potential.

15
 Figure 10: Total Water Resources Potential per Administrative Region
Source: Japan International Cooperation Agency (JICA) Master Plan on Water Resources Management in the
Philippines, 1998; NWRB; PAGASA Rainfall Data; Food and Agriculture Organization (FAO) of the United Nations
Aquastat Data; Department of Environment and Natural Resources (DENR) River Basin Control Office (RBCO)
Major River Basin Master Plans

2.2.6 Water Use

Based on awarded water permits by the
National Water Resources Board (NWRB),
water use was recorded at approximately
212,800 MCM annually as of 2017.
Approximately 130,500 MCM (61.3 percent
of the total) are allocated for power
generation and are categorized as non-
consumptive use, along with approximately
350 MCM allocation for recreational use.
The remaining 82,000 MCM are reserved
for consumptive use.
The irrigation sector is the greatest
consumer of water among the sectors (at
76.0 percent allocation). The domestic or
municipal sector consumes only 8.0
percent (see Figure 12).

2.2.7 Water Availability, Water

Stress, and Water Scarcity
Hydrologists typically assess scarcity by Figure 11: Map of Water Resources Potential
looking at the population-water equation. per Administrative Region
Per UN Water, “An area is experiencing
water stress when annual water supplies
drop below 1,700 cubic meters (m3) per
6
Managing Water person. When annual water supplies drop
Report under
Uncertainty and Risk, below 1,000 m3 per person, the population
UN World Water faces water scarcity, and below 500 m3
Development Report 4
(Volume 1)
‘absolute scarcity.”6

16
Figure 12: Consumptive Water Use by Sector (NWRB Water Rights, as of 2017)

A 2001 study7 reports that the Philippines Future water availability in the country will
has the second lowest water availability per be affected by climate change, economic
capita per year among Southeast Asian development, urbanization, and population
countries. It has been estimated that only growth. A study by the World Resources
1,907 m3 of water is available per person Institute has predicted that the Philippines
— a figure lower than the Asian and global will experience a high degree of water
averages. shortage by 2040 under a “business-as-
While the national value is higher than the usual” scenario (Luo, Young, and Reig,
threshold for areas considered 2015) .
experiencing water stress or water scarcity, The Philippines is 57th out of 167 countries
the same cannot be said for each WRR or that are likely to undergo water stress by
administrative region. 2040. The study also evaluated projected
Figure 13 shows the water availability per water withdrawals by the industrial,
capita per year by region and highlights the domestic, and agricultural sectors from
level of water availability, stress, and available renewable resources. The three
scarcity. Based on 2015 population, water sectors scored high in the projected water
availability in the Philippines is only 1,446 stress index, with the agricultural sector as
m3 per capita per year nationwide—this the highest.
indicates that the country is experiencing
water stress.
2.2.8 Climate Risks and
The facts are clear: MIMAROPA
experiences water stress. Regions I, III, Geological Hazards
and V are facing water scarcity, while NCR,
The Philippines ranks third among the
CALABARZON, and Region VII are facing
countries with the highest disaster risks
absolute scarcity. The values for the water
based on exposure to natural hazards,
availability per capita per year cover
vulnerability, coping capacity, and adaptive
domestic water supply and water uses for
capacity (World Risk Index, 2015). The
other sectors (e.g., agricultural, industrial,
human cost of climate hazards is
commercial, power).
astounding, with more than 130.00 million
In addition, NWRB has identified nine people affected by recurring weather-
water-critical urban areas where water is related disasters in the Philippines from 7
World Resources
consumed intensively. These areas are 1995–2015. This situation makes the 8
Institute 2000–2001
Source: UN Office for
Metro Manila, Metro Cebu, Davao, Baguio Philippines the fourth country with the Risk Disaster
City, Angeles City, Bacolod City, Iloilo City, highest number of people affected by Reduction and Center
Cagayan de Oro City, and Zamboanga weather-related disasters.8 for Research on the
Epidemiology of
City. Disasters, 2015

17
 The country is often battered by various the highest values ever recorded for
climate hazards (induced by rainfall maximum gustiness. These are Typhoons
variability, increasing temperature, and sea Reming, Loleng, and Yolanda which
level rise). In recent decades, it has devastated the Bicol, Northern Luzon and
experienced extreme weather conditions, Eastern Visayas regions, respectively.
such as temperatures above 35°C, with These typhoons have caused substantial
more intense rainfalls, and frequent and damage to infrastructure and major
typhoons stronger than the 30-year disruptions to water service.
average of an area. The Philippines
The World Meteorological Organization
experiences an average of 20 typhoons a
(WMO) recorded the highest sea level rise
year, five of which are destructive.
(three times the global average) over the
PAGASA has predicted that there will last century in the Philippines in 2015. The
generally be an increase in rainfall from rising sea levels can contaminate
2020 until 2050. The projections also show freshwater sources and damage water-
an increased peak rainfall during the wet related infrastructure in the coastal areas.
season and longer dry conditions during
Climate and geologic hazards endanger
the dry season. However, some parts of
human health and economic development.
the country also show decreasing total
rainfall. This rainfall variability translates Increasing temperatures increase the risk
directly to changes in water supply of waterborne diseases and transmission
dynamics. of malaria.
In addition to climate hazards, the country Economic development in rural and urban
is at risk of geologic hazards. These areas increases the competition among
extreme natural events that take place in various uses of water. These include the
the crust of the Earth can be sudden (e.g., agricultural, domestic, industrial, and
earthquakes, volcanic eruptions, tsunamis, commercial sectors, as well as for
and landslides) or gradual (e.g., land recreational purposes. These factors
subsidence). The country has 24 active likewise add stress to freshwater sources.
volcanoes and experiences an average of
five earthquakes, a few of them
destructive, in a day.
Water supply is also vulnerable to changes
in river flows and the recharge rate of
groundwater.
Changing rainfall patterns could mean
lower flows, resulting in water shortages.
Intense rainfall may not replenish the
groundwater as much as when rainfall is
spread evenly across the year. A lower
than average number or prolonged season
of dry days during the dry months may
affect soil porosity and vegetation, which
then leads to reduced soil infiltration and
lower groundwater recharge. Higher
temperatures will increase
evapotranspiration and cause longer and
more intense droughts. Extreme rainfall
enhances surface runoffs that could trigger
landslides.
There is no conclusive trend, however, that
tropical cyclones are becoming more
18 intense. However, there were three
typhoons in the last 20 years that recorded
 19
Figure 13: Water Availability per Capita per Annum (Using 2015 Values for Population)
 2.3 Institutional Governance
The WSS sector is characterized by the water supply and sewerage services in the
absence of a lead agency that will NCR, as well as Regions III and IV-A,
spearhead efforts in addressing the lack of through private water utilities.
a cohesive policy framework, insufficient
public financing, inadequacies in sector Sectoral involvement is part of the overall
data upon which policy and investment mandates of these agencies, except for
decisions will be made, and a severely LWUA and NWRB whose specific
fragmented and poorly enforced regulatory mandates directly impact the water sector.
regime. The succeeding sections discuss the roles
and responsibilities of key government
The succeeding sections discuss the agencies in the water supply sector.
institutional governance for the WSS
sector. In addition, Figure 14 shows the functional
chart of government agencies with water
resources-related responsibilities,
2.3.1 Water Supply particularly on water supply. Annex A, on
The key national agencies involved in the the other hand, presents the functions and
water supply subsector are NEDA, NWRB, responsibilities of these government
Department of Health (DOH), Department agencies and their particular units.
of the Interior and Local Government
(DILG), DENR, Department of Public
Works and Highways (DPWH), and Local
Water Utilities Administration (LWUA). The
Metropolitan Waterworks and Sewerage
System (MWSS) is also a key agency
mandated to ensure delivery of reliable

Figure 14: Functional Chart of Water-Related Agencies in the Philippines9

9
Source: Philippine
Water Supply Sector
Roadmap. The full
names of water
agencies are presented
in the list of acronyms.

20
National Economic and utilization, exploitation, development,
conservation, and protection of all water
Development Authority
resources. The agency’s functions include
NEDA is the country’s leading issuing water permits for the appropriation
socioeconomic planning body. It is and use of waters and adjudicating
responsible for developing policies and disputes relating to appropriation,
targets for the WSS sector. In particular, utilization, exploitation, development,
the NEDA Board Committee on control, conservation, and protection of
Infrastructure – Sub-Committee on Water waters.
Resources (INFRACOM-SCWR) has led
major efforts to develop the PWSSR. As economic regulator for waterworks
NEDA has adopted the following systems, NWRB regulates water tariffs
strategies: for private waterworks systems, particularly
community-based organizations (CBO),
 Strengthen water supply and wastewater Barangay Waterworks and Sanitation
management institutions; Association (BWSA), Rural Waterworks
 Develop capacities of key agencies, and Sanitation Associations (RWSA),
WSPs, and other major stakeholders; private operators, and some LGU-run
and utilities. EO 123 in 200211 transferred the
tariff setting of WDs from LWUA to NWRB
 Build strategic alliances between but EO 860 in 201012 transferred the same
legislative and executive champions in function back to LWUA.
the government, public and private
sectors, as well as communities. Department of Health
National Water Resources Board The DOH is the national health policy-
maker and regulatory institution. It has
The National Water Resources Council three major roles in the health sector:
was renamed and reorganized as the provide leadership in health, build capacity,
NWRB through Executive Order (EO) 124- and conduct specific services related to
A in 1987.10 The NWRB acts as the policy- public health.
making body for the Philippine water sector
as resource regulator and economic In addition, the DOH is mandated to
regulator for waterworks systems. provide special tertiary healthcare services
and technical assistance to health
As the policy-making body for the providers and stakeholders. Its WSS-
Philippine water sector, NWRB is specific responsibilities include the
tasked, among others, to: following:
 Coordinate and integrate water resource  Review, update, and promote the
development activities of the country; Philippine National Standards for
 Formulate criteria, methods, and Drinking Water (PNSDW);
standards for data collection, project  Develop and implement programs
investigation, formulation, planning related to drinking water quality, such as
design and feasibility evaluation, as well water safety plans; 10
EO No. 124, s. 1987:
as rules and regulations for the Reorganizing the
exploitation and optimum utilization of  Undertake the promotion of and raising Ministry of Public

water resources; health standards of individuals and Works and Highways,

and Redefining its
communities relating to WSS in Powers and Functions,
 Review and approve water resource accordance with the Code of Sanitation; and for Other Purposes
development plans and programs of 11
EO No. 123, s. 2002:
other agencies; and  Monitor and respond to water-related Reconstituting the
and waterborne outbreaks and other National Water
 Conduct and promote special studies Resources Board
disasters; 12
EO No. 860, s. 2010:
and researches with other agencies or Redefining the
governments about aspects of water  Develop and promote sanitation Composition and
resources development. programs and standards, such as zero Powers of the National
Water Resources
open defecation, septage management
Board
As water resource regulator, NWRB is systems, and septic tank construction;
tasked to regulate and control the

21
  Review and provide environmental RBCO has led the formulation of the master
sanitation clearance (ESC) for stationary plans for the country’s 18 major river basins
and mobile septage services, and help and for three principal rivers. As part of its
LGUs undergo compliance training with efforts to roll out the master plans, RBCO’s
respect to the National Sewerage and responsibilities include the following:
Septage Management Program (NSSMP);
 Popularize the master plans through
 Develop promotional campaign programs various fora with stakeholders and by
on WSS; and disseminating information materials;
 Assess the health impact of WSS  Build the capacity of RBCO and river
programs and projects. basin organizations (RBO);

Department of Environment and  Conduct strategic and action planning

through workshops and summits; and
Natural Resources
The DENR is the “primary government  Gather data and develop the River Basin
agency responsible for the conservation, Integrated Information Management
management, development, and proper use System as part of its M&E.
of the country’s environment and natural Department of the Interior and Local
resources, as well as the licensing and
regulation of all natural resources as may be
Government
provided for by law in order to ensure The DILG is mandated to promote peace
equitable sharing of the benefits derived and order, ensure public safety, and
therefrom for the welfare of the present and strengthen local government capability to
future generations of Filipinos.”13 deliver basic services, including water and
sanitation services (Republic Act [RA]
DENR’s responsibilities include the
697514. Under the DILG, the Office of
following:
Project Development Services (OPDS) has
 Assure the availability and sustainability the Water Supply and Sanitation Program
of the country’s natural resources through Management Office (WSSPMO).
judicious use and systematic restoration
The WSSPMO is a project office designed to
or replacement;
manage specific foreign-assisted water and
 Increase the productivity of natural sanitation projects. In addition, it develops
resources to meet the demands for forest, and strengthens the capacity of LGUs in
mineral, and land resources of a growing planning, financing, implementing, and
population; managing WSS programs and projects
within the IWRM framework. Its
 Enhance the contribution of natural
responsibilities include the following:
resources for achieving national economic
and social development;  Advocate WSS policy updates, strategies
and approaches, best practices and
 Promote equitable access to natural
lessons learned, and various technology
resources by different sectors of the
options;
population; and
 Provide LGU WSS projects with access to
 Conserve specific terrestrial and marine
financing, promote technical assistance
areas representative of the Philippine
cooperation, and match capability
natural and cultural heritage for present
requirements with financing institutions;
13
and future generations.
Source: Chapter 1,
Section 4, EO No. 192,  Strengthen DILG’s WSS partners in
The DENR, and the agencies under it,
series of 1987. provinces and municipalities by
Purposes. promote and implement the IWRM
conducting WSS-related activities;
14
RA No. 6975: An Act framework.
Establishing the
 Maintain a national data management
National Police Under a River Basin Control Office system related to plans, programs, and
Reorganized
Department of Interior The RBCO is the lead government agency activities, and establish benchmarking
and Local Government,
and for Other in the integrated planning, management, systems to improve LGU-run utilities; and
Purposes. rehabilitation, and development of the
 Monitor the progress and results of WSS
country’s river basins. It is under the DENR.
activities and document lessons learned
22
 as a basis for future programs and  Provide a specialized lending institution
projects. with expertise in the financing of WDs.

Department of Public Works and Metropolitan Waterworks and

Highways Sewerage System
The DPWH is in charge of the planning, The MWSS is a GOCC once known as the
design, construction, and maintenance of National Waterworks and Sewerage System
engineering structures (e.g., national roads Authority (NAWASA).
and bridges), as well as oversees flood
It focuses on water provision in NCR, the
control and water resources projects. Its
province of Rizal, and some towns in the
WSS-specific responsibilities include the
province of Cavite and Bulacan. The Water
following:
Crisis Act (RA 8041) established the legal
 Conduct hydrologic surveys, as well as basis of entering into a concession
establish, operate, and maintain agreement with private operators after
observation station networks and MWSS failed to provide adequate services
centralized water resources data center; to the region.
 Implement, regulate, monitor, assist, and MWSS became an oversight body through
fund WD activities and projects through the creation of the Regulatory Office (RO).
LWUA; The MWSS RO regulates the activities of the
two water concessionaires: Manila Water
 Manage financing and technical support
Company, Inc. and Maynilad Water
for water supply improvement in tourism
Services, Inc. Their concession contracts
areas and hubs through its Regional and
have been extended to 2037.
District Engineering Offices;
 Manage and promote the NSSMP, and Other Sector Agencies
provide related training sessions for Other agencies with functions and
LGUs; and responsibilities in the water sector are
 Provide financial and technical support for
provided in Annex A.
developing and carrying out flood control
projects and activities related to
stormwater and drainage management.

Local Water Utilities Administration

The LWUA is a government-owned and -
controlled corporation (GOCC) created
under the Provincial Water Utilities Act of
1973.12 LWUA is a specialized lending
institution that creates and develops WDs
outside the NCR. Its responsibilities include
the following:
 Establish minimum standards and
regulations to assure acceptable
standards of construction materials and
supplies, maintenance, operation,
personnel, training, accounting, and fiscal
practices for WDs;
 Furnish technical assistance and
personnel training programs for WDs;
 Monitor and evaluate WDs;

 Affect system integration, joint investment

and operations, as well as district
annexation and deannexation whenever
economically warranted; and
23
 Water Service Providers
Specific government agencies are tasked
to oversee planning and policy-making with
regard to the water and sanitation sector as
well as the delivery of services by WSPs.
Table 2 lists WSPs by management type.15

Table 2: Water Supply Service Providers by Management Type

Major Groups Management Type Description
WDs Water District A quasi-public corporation formed by the LGU under the
Provincial Water Utilities Act for the O&M of water supply
and wastewater management system, which has been
issued a Certificate of Conditional Conformance by LWUA

LGU-Run LGU-Run Utilities A water supply system owned and operated by the
Utilities provincial, city, or municipal government
Community- BWSA A non-stock and nonprofit organization that owns,
Based operates, and maintains a water system and sanitation
Organizations facilities in the barangay
RWSA A non-stock and nonprofit organization formed by a group
of persons in a defined area, such as a street, a group of
houses, a sitio, or a purok to establish and maintain WSS

Cooperative A membership organization formed under the Cooperative

Code of the Philippines to operate and maintain water
supply systems and registered with the Cooperative
Development Authority (CDA)

Private Utilities Homeowners’ An organization that operates and maintains a water

Association supply system and is registered with the Securities and
Exchange Commission (SEC) or Housing and Land Use
Regulatory Board (HLURB) , now Human Settlements
Adjudication Commission (HSAC)

Real Estate A real estate developer operating a water supply system

Developer that provides potable water to lot owners within its
boundaries
Unnamed WSPs A service provider of at least 15 households, and which is
not registered formally with any government agency

Industrial Locator An industrial estate operating a water supply system for

its locators in a special economic zone
Peddler A non-pipe WSP operator that extracts water and supplies
and delivers water by the container
Ship Chandler A water supply operator providing water to ships

Private Operator A sole proprietorship, corporation or private entity formed

under the general business and corporation laws of the
country for the O&M of water supply systems

15
Listahang Tubig,
NWRB (http://
listahangtubig.cloudapp
.net/)

24
2.3.2 Sanitation The national government, despite the
devolution of the health services with the
LGUs have also been given legal passage of the Local Government Code,
mandates over water and sanitation continues to play a major role in the
services as stipulated under the Local development of the water sector (i.e.,
Government Code (LGC) of 1991. creating policies, facilitating investments,
and building the capacity of LGUs).
At the provincial, city, and municipal level,
the LGUs’ responsibilities include WSS Several government agencies are
planning, financing, and implementation. mandated to manage sanitation services,
These may include preparing WSS sector including the development of sewerage
plans; monitoring local WSS coverage and and sanitation infrastructure. Figure 15
updating the sector profile; and providing presents a matrix of national agencies with
support to WSPs (e.g., RWSAs and sanitation-related mandates and other
BWSAs, cooperatives, and water users’ support agencies. The functions of these
groups) including funding from their internal agencies are provided in Annex A.
revenue allotment (IRA). Barangay units
can propose local ordinances and
coordinate closely with the municipal
government in addressing the needs of
their constituents.

Office of the President (OP)

NEDA

INFRACOM-SCWR

DPWH DOF DENR DOH DILG DHSUD MMDA

EMB
MWSS
MDFO LLDA/ EOHO OPDS NHA
LWUA
NSWMC

Other support agencies with possible roles

CHED CHED
DepEd DA DOST DBM

DOT GFIs DAR NWRB

Figure 15: Functional Chart of Sanitation-Related Agencies in the Philippines16

16
updated from the
PSSR (as of 2020)

25
 2.4 Access and Coverage
2.4.1 Water Supply distribution of the main sources of water by
population percentage.
The Philippine Statistics Authority (PSA)
The PSA data on access to safe water
covers two main key performance
sources from 2004 to 2015 show, however,
indicators (KPIs) with regards access to
a significant positive trend (see Figure 17).
water: access to safe water supply (by
source) and access to drinking water. Access to Drinking Water
Access by Source Access to safe and affordable drinking
water is one of the indicators emphasized
The Family Income and Expenditure
in the SDGs. Currently, the country has no
Survey (FIES) conducted by the PSA in
instrument by which data on access to safe
2015 reported that only 87.7 percent of the
drinking water nationwide can be
Philippine population17 had access to water
generated. The closest equivalent of such
sources classified as safe. The sources of
data is the PSA's National Demographic
water for the rest of the population (12.3
and Health Survey (NDHS).
percent) are classified as unsafe (i.e., dug
wells, lakes, water sold by peddlers, rain, The 2013 NDHS classifies sources of
and unprotected springs, rivers, and drinking water as improved and
streams). Figure 16 illustrates the unimproved. However, this classification

Figure 16: Main Sources of Water Supply of the Population (PSA FIES, 2015)

17
n=22,730 households

26 Figure 17: Access to Safe Water Sources Trend

does not measure water quality, noting that  Respondents whose water source is
water from improved sources may be bottled water need not treat their drinking
contaminated while in transit and being water.
stored. The report also indicated the
 An appropriate treatment method is
percentage of the sample using an
sufficient to make water safe for drinking.
appropriate treatment method (e.g., boiling,
bleaching, filtering, and solar disinfection).  The percentage of respondents using
appropriate treatment methods includes
The NDHS measures the time spent to
those whose drinking water does not
obtain water, but there are no available
include bottled water.
data on the affordability of drinking water.
The time spent to obtain water, however,  It is considered "affordable" when water
may be related to the accessibility of water is drawn from a source available in the
users to the source. Per the data sets in premises or if fetching water takes less
the NDHS, a proxy value for safe and than 30 minutes.
accessible drinking water may be derived
Figure 19 plots the data on safe and
using the following assumptions (see
accessible drinking water as gathered from
Figure 18):
the NDHS.
 Bottled water is considered safe and
does not need any treatment.

Figure 18: Proxy Value of Data for Safe and Affordable Drinking Water Using Available
Secondary Data

18
Safe water
percentage is based on
access to improved
sources. Accessible
water is based on
percentage of
households with water
in premises and those
who spend less than 30
minutes (round trip) to
obtain water.

Figure 19: Access to Safe and Affordable Drinking Water per NDHS18 27
 radius of 25 meters. Users still go to the
By Type of Service Providers supply point (communal faucet) to fetch
The NWRB created a national water survey water. This simple piped system is
of all WSPs called Listahang Tubig.19 The generally suitable for rural and urban
survey provides data on the levels of fringe areas where houses are densely
service by management type. As of clustered.
December 2018, a total of 24,821 WSPs  Level III (waterworks system): This
have registered in the database (see Table system includes a source, a reservoir, a
3). piped distribution network, and individual
household taps. It is generally suited for
By Level of Service
densely populated urban areas where
Water supply is usually provided by WSPs. the population can afford individual
Main sources of water among some connections.
households, however, are not shared with
other households or the community. These Community-level piped water systems are
sources are considered private, such as categorized as either Level II or Level III
private deep wells and rainwater collectors. water systems. Those with individual house
connections have Level III service, and
NEDA defines the service levels of water those with communal faucets, Level II
supply as follows:20 service.
 Level I (point source): This service Point sources without water distribution
level provides a protected well or a piping are categorized under Level I. Level
developed spring with an outlet but I also includes small-scale water sources
without a distribution system. Hence, within the vicinity of households with piping
users go to the source to fetch water. or plumbing installations.
Rural areas (where houses are thinly
scattered) are generally adaptable to Table 4 provides a matrix of the service
Level I sources. These sources serve an level compared with the classification of
average of 15 households within a radius sources of water (i.e., whether safe or
unsafe sources) according to the PSA.
of 250 meters.
Approximately 43.6 percent of the
 Level II (communal faucet system or
population is provided with water service
standpost): This refers to a piped
from Level III systems, 11.2 percent from
system whose components include a
Level II systems, and 45.2 percent from
source, a reservoir, a piped distribution
Level I systems. Figure 20 shows the
network, and communal faucets. Each
population served according to the levels of
communal or public faucet usually
service by region in 2015.
serves four to six households within a

Table 3: Water Service Providers Registered Under Listahang Tubig (2018)

Management Type No. Percentage Level I Level II Level III
Barangay Waterworks and 6,620 26.7% 2,980 2,498 1,142
Sanitation Association (BWSA)
Rural Waterworks and Sanitation 1,418 5.7% 62 619 737
Association (RWSA)
Cooperative 403 1.6% 46 90 267
Unnamed WSP 7,878 31.7% 7,486 303 89
LGU-Run Utility 4,184 16.9% 1,147 1,608 1,429
19 Water District 634 2.6% 19 4 611
http://
listahangtubig.cloudapp Homeowners' Association 377 1.5% 168 77 132
.net/
20
National Economic Real Estate Developer 107 0.4% 8 8 91
and Development
Authority Board Industrial Locator 45 0.2% 3 3 39
Resolution No. 12,
Peddler 211 0.9% 108 80 23
Series of 1995
Ship Chandler 4 0.0% 1 2 1

28 Private Operator 1,779 7.2% 711 268 800

Refilling Station 1,161 4.6% 1,122 24 15
Grand Total 24,821 100.0% 13,861 5,584 5,376
Table 4: Service Level against Classification of Source of Water
Service Level Source of Water Classification (Safe/Unsafe)

Level III Own faucet community water system

Safe source
Own tube/piped deep well
Level II Shared faucet community water system

Safe source
Shared tube/piped deep well
Piped shallow well
Level I Protected spring, river, stream, etc.

Unprotected spring, river, stream, etc.

Dug well Unsafe source

Lake, river, rain, and others
Peddler
Other sources

Figure 20: Levels of Service in Percentages by Region (FIES, 2015)

29
 2.4.2 Sanitation Basic sanitation refers to a level of service
where the sanitation facility is private (not
The SDGs which have evolved from the shared with other households) and where
Millennium Development Goals (MDGs) the excreta is separated from human
have expanded the definition of the term contact (e.g., using a toilet fixture).
access to sanitation. However, the excreta may or may not be
safely managed (e.g., with or without a
MDGs simply involved access to basic
septic tank). Table 5 tabulates the service
sanitation or the availability of sanitary
ladder of sanitation against its three data
toilets. On the other hand, SDGs have
attributes.
qualified “access” by designating sanitary
toilets as either safely managed, limited, or PSA provides data on basic sanitation in
unimproved. the following surveys and reports:
Figure 21 illustrates the components of  Annual Poverty Incidence Survey (APIS):
sanitation infrastructure. The SDGs define A part of the survey is determining the
adequate and equitable sanitation to type of toilet facility the family is using
include collection, treatment, and disposal (e.g., own toilet, shared toilet, close pit,
or reuse. open pit);
Sanitation service has three data attributes:  FIES: the 2015 FIES includes the
number of households with electricity,
 Facility refers to the structure or
main sources of water supply, and toilet
infrastructure for the sanitation service;
facilities by income decile;
 Usage refers to the availability of the
 NDHS; and
facility for households; and
 Philippine Census.
 Management refers to the proper
disposal of excreta (i.e., on-site or The availability, values, and trend of
transported and treated in an off-site access to basic sanitation data over the
facility). past 14 years are shown in Figure 22.

21
Base diagram is from
the Philippine
Sanitation Sourcebook Figure 21: Components of Sanitation Infrastructure21
and Decision Aid.

30
Table 5: Sanitation Service Ladder
Service Ladder
No Service Unimproved Limited Basic Safely Managed
Sanitation Sanitation Sanitation Sanitation
Open Use of pit Use of Use of Use of
Defecation* latrines improved improved improved
without slabs facilities** facilities facilities which
Description/Definition

or platforms, shared which are are not shared

hanging between not shared with other
latrines or two or more with other households and
bucket latrines households households where excreta
. are safely
disposed of on-
site or
transported and
treated off-site

With toilet/ No Yes Yes Yes Yes

latrine facility
Usage N/A Maybe private Shared Private (not Private (not
Attributes

(private/ or shared shared) shared)

shared)
Management N/A No Maybe Maybe Yes
***

*Open defecation refers to the disposal of human feces in fields, forests, bushes, open bodies of water, beaches,
and other open spaces or with solid waste.

** Improved facilities include flush or pour-flush to piped sewer systems, septic tanks or pit latrines, ventilated
improved pit latrines, composting toilets, and pit latrines with slabs.

Figure 22: Access to Basic Sanitation Data from Available Sources

31
 The presentation of data obtained by the Rearranging the 2015 data from the PSA in
PSA needs to be aligned with the SDGs. accordance with the format under the
Before the SDGs were adopted, accessible SDGs shows that 73.8 percent of the
data on the use of sanitation facilities were population had access to safely managed
presented as follows: sanitary toilets, about 20.0 percent of the
population had access to basic or limited
 Water-sealed sewer septic tank used
sanitation, 2.0 percent had unimproved
exclusively by household;
sanitation, and 4.0 percent had no access
 Water-sealed sewer septic tank shared to toilets (i.e., open defecation was the
with another household; norm).
 Water-sealed other depository used The highest access to improved sanitation
exclusively by household; was recorded in Region IV-A (88.0
percent), followed by the NCR (85.0
 Water-sealed other depository shared
percent), Region III (82.0 percent), Region
with another household;
X (80.0 percent), and Region XIII (77.0
 Closed pit; percent). These figures are above the
national average of 73.8 percent, while the
 Open pit; and
rest are below the national average. Figure
 Others. 23 presents a visual representation of the
regions’ access to sanitation per service
level.

Figure 23: 2015 Philippine Sanitation Coverage (PSA)

32
2.5 Technical and
Operating Performance
2.5.1 Water Supply
Key Performance Indicators
The Listahang Tubig of NWRB has employed 15 KPIs on which the performance of WSPs is based.
Table 6: Key Performance Indicators (KPIs) of WSPs, National Average
Areas KPI Description National
Average
Service Service coverage This measures the percentage of the population in a service 27.0
Indicators area covered by a WSP. It also indicates a service area’s percent
possible expansion or saturation.
Consumption per This measures the average consumption per person per day. It 98 lpcd
capita indicates if a WSP is able to meet the water needs of a user.

Average This refers to the national average water consumption per 14.00 m3 /
consumption per month of a household. month
month
Average tariff This is the resulting average tariff computed by the WSP and PHP
total water sales divided by total billed volume. 18.00/m3

Service hours per This is the average number of hours a WSP operates per day. 19 hours/
day day

Efficiency Non-revenue water The NWRB mandates that the percentage of NRW should not 22.0
Indicators (NRW) exceed 25.0 percent. percent

Average production This refers to the per cubic meter production cost of water. PHP
cost 13.00/m3
Operating ratio, This measures the proportion of expenses to revenues. The 1.00
before depreciation ideal values are less than 0.70.
and interest
Staff employees per This measures efficiency in utilization of personnel and if WSPs 40
1,000 connections are appropriately staffed as compared to other WSPs of
comparable size.
Collection period This measures the number of days within which to collect 2 months
receivables. The benchmarking average is 1.7 months.

Connections per This measures the average number of customers served per 80
staff ratio employee.
Financial Current ratio This measures the capacity to pay current liabilities from 9.19
Indicators current assets. The NWRB’s acceptable value is 2.00.

Return on assets or This measures the capacity of each peso to generate profits. 6.0
return on The NWRB’s threshold is 12.0 percent. percent
investments
Return on equity This measures the amount of profits generated by each peso 20.0
invested by owners. The threshold provided by private financial percent
institutions (PFIs) is 8.0 percent.
Debt service ratio This determines a WSP’s ability to generate enough income in 2.66
its operations to cover payment of its debt. This ratio also
indicates its ability to pay its loans. The threshold given by PFIs
is 1.20.
33
 Some WSPs do not upload their data annually, and not all information is uploaded or provided. Only
data for 2013 are nearly complete (Table 7). The collated data provide benchmarks for service,
efficiency, and financial indicators. Some data, such as those in Autonomous Region of Muslim
Mindanao (ARMM), are not available.

Table 7: KPIs per Region for WSPs Registered under Listahang Tubig
Region Region Region Region Region
Year 2013 ARMM CAR NCR Region V
I II III IV-A IV-B

Service Indicators

Service
coverage, in 5.0 21.0 92.0 7.0 11.0 24.0 23.0 6.0 16.0
percent

Consumption
per capita, in 112 104 122 95 97 122 128 86 120
lpcd
Average
consumption
19 15 23 15 15 19 18 13 19
per month, in
m3/mo.

Average tariff,
22.00 37.00 33.00 29.00 23.00 24.00 16.00 11.00 23.00
in PHP/m3.

Service hours
per day, in 24.00 14.00 19.00 20.00 22.00 21.00 19.00 19.00 19.00
hours/day

Efficiency Indicators

NRW, in
No Data 27.0 27.0 23.0 22.0 22.0 24.0 37.0 26.0
percent

Average
production cost, No Data 22.00 16.00 12.00 22.00 10.00 14.00 17.00 10.00
PHP/m3

Operating ratio,
before
1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
depreciation
and interest
Staff
employees per
11 44 2 46 43 21 30 45 24
1,000
connections
Collection
period, in 1 2 1 2 3 2 3 3 3
months

Connections
108 41 615 186 78 124 83 62 144
per staff ratio

Financial Indicators

Current ratio 4.15 11.45 0.88 13.21 5.80 4.44 6.59 1.66 4.45

Return on
0.05 0.09 0.06 0.06 0.11 0.07 0.07 0.05 0.06
assets
Return on
0.08 0.39 0.19 0.14 0.16 0.12 0.18 0.05 0.22
equity

Debt service
2.07 1.38 1.08 2.24 1.68 2.50 3.37 2.18 3.62
ratio
34
Table 7 (continued): KPIs per Region for WSPs Registered under Listahang Tubig
Region Region Region Region Region Region Region Region
Year 2013 National
VI VII VIII IX X XI XII XIII

Service Indicators

Service
coverage, in 17.0 17.0 9.0 4.0 32.0 30.0 12.0 8.0 27.0
percent

Consumption
per capita, in 111 94 81 82 80 107 99 83 98
lpcd
Average
consumption
16 14 11 12 12 17 15 12 14
per month, in
m3/month

Average tariff,
28.00 13.00 27.00 10.00 14.00 18.00 19.00 22.00 18.00
in PHP/m3

Service hours
per day, in 19.00 19.00 21.00 17.00 18.00 18.00 21.00 21.00 19.00
hours/day

Efficiency Indicators

NRW, in
25.0 19.0 20.0 21.0 23.0 20.0 22.0 28.0 22.0
percent

Average
production cost, 15.00 11.00 28.00 10.00 11.00 10.00 11.00 12.00 13.00
PHP/m3

Operating ratio,
before
1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
depreciation
and interest
Staff
employees per
34 49 33 57 63 26 23 50 40
1,000
connections
Collection
period, in 2 2 2 3 2 2 2 1 2
months

Connections
92 64 69 39 59 74 88 52 80
per staff ratio

Financial Indicators

Current ratio 7.66 14.75 15.99 10.35 9.34 9.76 13.48 11.85 9.19
Return on
0.03 0.05 0.06 0.02 0.03 0.04 0.06 0.08 0.06
assets
Return on
0.15 0.21 0.62 0.36 0.22 0.12 0.15 0.18 0.20
equity
35
Debt service
1.54 4.00 1.30 1.09 2.20 7.26 2.33 2.89 2.66
ratio
 Table 8: KPIs per WSP Management Type
for Those Registered under Listahang Tubig

Unnamed
Year 2013 National BWSA RWSA Cooperative LGU-Run
WSP
Service Indicators
Service coverage, in percent 27.0 1.0 0.0 0.0 0.0 2.0
Consumption per capita, lpcd 98 82 82 101 - 100
Average consumption per 14 12 11 16 - 14
Month, m3/mo.
Average tariff, PHP/m3 18.00 12.00 13.00 16.00 - 12.00
Service hours per day, hrs/day 19.30 18.50 18.65 20.48 11.43 19.19
Efficiency Indicators
NRW, in percent 22.0 22.0 14.0 23.0 - 23.0
Average production cost, 19.00 11.00 11.00 14.00 - 15.00
PHP/m3
Operating ratio, before 0.83 0.85 0.86 0.84 - 0.94
depreciation and interest
Staff employees per 1,000 41 62 55 30 44 34
connections
Collection period, months 2.11 2.30 2.01 2.79 - 1.72
Connections per staff ratio 81 37 41 83 32 88
Financial Indicators
Current ratio 9.08 10.01 9.64 9.29 - 15.14
Return on assets 0.06 0.11 0.05 0.04 - 0.06
Return on equity 0.20 0.25 0.12 0.14 - 0.39
Debt service ratio 2.65 2.46 3.08 4.12 - 1.70

Water Districts Following the financial reforms of EO 279,

s. 2004, WDs are categorized as non-
Operational and Non-Operational WDs
creditworthy (NCW), pre-creditworthy
Based on 2016 data, the country has 748 (PCW), semi-creditworthy (SCW), and
active WDs classified as follows: creditworthy (CW) to determine the
allocation of financing.
 515 (68.9 percent) are operational.
The 2016 Credit Classification23 has
 233 (31.1 percent) are reported non-
reviewed 461 WDs (see Table 9) and
operational.
revealed that creditworthiness was highest
Figure 25 shows the location of these WDs among Category D WDs at 54.6 percent of
across the country. the sample. Most Categories A and B WDs
have been classified as CW and SCW,
WD Categories and Creditworthiness
while Categories C and D account for most
Under the Revised Local Water District of SCW WDs (see Figure 24).
22
Category A WDs Manual on Categorization, Re-
The 2016 Credit Classification also shows
have more than 30,000 categorization and Other Related Matters,
connections; Category that 98 WDs have graduated to a higher
WDs are categorized as A, B, C, or D
B has 10,000 to 29,999 classification of credit ratings based on
connections; Category based on active service connections22.
C has 3,000 to 9,999 LWUA's review in 2013. The credit
WDs are also scored based on assets,
connections; Category classification of 270 WDs have remained
D has less than 3,000 financial position, and staff productivity.
the same.
connections.
23
www.lwua.gov.ph

36
Table 8 (continued): KPIs per WSP Management Type
for WSPs Registered under Listahang Tubig
Home- Real
Industrial Ship Private Refilling
Year 2013 WD owners’ Estate Peddler
Locator Chandler Operator Station
Assoc. Developer
Service Indicators
Service coverage, in percent 9.0 0.0 0.0 0.0 0.0 - 14.0 -
Consumption per capita, lpcd 109 104 111 - - - 131 -
Average consumption per 17 16 12 - - - 17 -
month, m3/mo.
Average tariff, PHP/m3 26.00 14.00 19.00 - 36.00 - 23.00 -
Service hours per day, hrs/day 22.66 20.22 24.00 18.67 8.00 - 18.01 -
Efficiency Indicators
NRW, in percent 25.0 19.0 0.0 0.0 - - 24.0 -
Average production cost, 44.00 14.00 13.00 14.00 - - 12.00 -
PHP/m3
Operating ratio, before 0.72 0.79 0.78 0.61 0.55 - 0.73 -
depreciation and interest

Staff employees per 1,000 13 37 4 0 0 - 18 -

connections
Collection period, months 2.01 1.73 0 0.56 0.51 - 2.56 -
Connections per staff ratio 149 37 282 0 - - 256 -
Financial Indicators
Current ratio 7.88 - - 2.79 - - 4.54 -
Return on assets 0.05 - - 0.07 - - 0.07 -
Return on equity 0.15 0.15 - 0.10 0.36 - 0.15 -
Debt service ratio 2.75 - - 0.00 1.18 - 0.82 -

Figure 24: Creditworthiness of WD Samples in 2016 Credit Classification

37
38
Figure 25: Operational and Non-Operational Water Districts
WDs’ Operating Performance Table 9: Water District Creditworthiness by Region
(World Bank, 2015) REGION CW SCW PCW NCW TOTAL
WDs follow standard commercial and CAR 1 5 0 1 7
technical guidelines, including an
accounting system. These guidelines were I 14 20 4 3 41
created by LWUA and improved by various II 4 10 2 6 22
institutions to suit changing conditions.
III 35 36 9 2 82
WDs operate and maintain their water
supply systems and submit financial IV-A 19 32 2 3 56
reports and monthly data sheets to LWUA.
MIMAROPA 5 5 2 0 12
LWUA reviews tariffs based on these
V 6 25 5 2 38
documents. In addition, the WDs’
performance is measured by a set of KPIs VI 5 29 14 14 62
in regard to marketing, efficiency, VII 3 12 3 0 18
profitability, and cost-effectiveness. Their
performance is monitored through the WD VIII 0 11 8 1 20
Industry Average. In 2015, the World Bank IX 3 4 3 2 12
conducted a study to assess the operating
and financial In 2015, the World Bank X 3 16 4 0 23
conducted a study to assess the operating XI 4 6 5 1 16
and financial performance of 45 samples
XII 3 14 4 3 24
WDs.
XIII 8 6 6 2 22

ARMM 0 4 1 1 6

Total 113 235 72 41 461

Table 10: Performance of WDs in Terms of Operating Ratio

All
Category Category A Category B Category C Category D
Categories
(Number of Connections) ( > 30,000) ( > 10,000) ( > 3,000) (< 3,000)
A–D
No. of Samples 5 10 19 11 45
Percentage of Population
70.0% 62.0% 60.0% 30.0% 54.0%
Served
Active Service Connections
per Employee 218 204 286 197 238

Operating Ratio 81.0% 79.0% 78.0% 83.0% 80.0%

NRW 27.0% 24.0% 25.0% 24.0% 25.0%
Average Collection Period 42 35 38 44 39
Collection Efficiency 95.0% 93.0% 91.0% 89.0% 91.0%
Current Ratio 4 6 7 3 5
Debt Service Ratio 8.07 3.32 9.74 2.26 6.30
Debt-Equity Ratio 23.0% 18.0% 37.0% 73.0% 40.0%
Net Income Margin 22.0% 19.0% 19.0% 20.0% 19.0%

39
 The sample WDs have shown similarities  A reliance on government
in performance in terms of operating ratio, appropriations for financial viability;
NRW, and collection efficiency.
 A lack of staff trained in management
Because LWUA prescribes at least 90.0 techniques and technical matters;
percent collection efficiency, Category D
 A lack of long-range planning;
WDs with an average of 89.0 percent fell
just 1.0 percent short of the standard.  An inadequate enforcement of drinking
Meanwhile, collection performance water standards; and
improved under the following: Category C
 Tariff-setting approaches that do not
WDs were at 91.0 percent, Category B
allow for cost recovery.
WDs at 93.0 percent, and Category A WDs
at 95.0 percent. A study in 2013 found that the same
problems continue to exist in assessed
The NRW average, on the other hand, is at
sample LGU-run utilities.26 Many rural
25.0 percent. Category A WDs had the
providers are broadly structured as user-
highest average at 27.0 percent.
association types. The organizational
The sample WDs performed well with a typologies include CBOs, RWSAs, BWSAs,
ratio of 238 active connections per and cooperatives. The country has
employee compared to the last WD approximately 4,184 LGU-run utilities,27
industry average (149 active connections 1,429 of which operate Level III systems.
per employee in 2009). Category D WDs These utilities typically encounter technical
with a 197:1 ratio performed well compared and management challenges in their
to the minimum required ratio of 120:1. operations.
The sample WDs that reported profits had LGU-run utilities report an average of 19
access to financing. The net income hours of water availability per day.
margin was around 20.0 percent across Production is not measured, and the
WD categories. Among Category B absence of commercial protocols is quite
samples, the lowest income margin was prevalent. For example, accounts are not
7.0 percent and the highest was 34.0 ring-fenced, connections are not metered,
percent. Among Category C samples, one collection efficiency is low, staff per 1,000
WD had a loss ratio of 27.0 percent, and to connections ratio reaches 34. Only 21.0
another one had the highest ratio of 38.0 percent of sample LGU-run utilities
percent. One sample WD in Category D reported water potability tests.
had 11.0 percent net loss ratio, and the
The capacity-building system of LGU-run
highest net income ratio was 29.0 percent.
utilities is not established. DILG, along with
24
Castalia, Diagnostic Most WDs operate profitably. The debt NWRB to a limited extent, conducts
Study of the Water Sector
service ratio shows that most WDs have capacity-building programs to address
in the Philippines – Final
Report to the World Bank, the capability to cover their loan institutional development needs that are
March 2009 obligations. These indicators allow for not covered by LWUA. LGU-run utilities
25
Wilson-Montgomery (A
Joint Venture), Report on
sustainable expansion. For example, often do not have staff members with the
Proposed Institutional Category D WDs served 30.0 percent of required skills set, and regular training for
Development in Support the population in 2015. the trainers and participants is necessary.
of Improved Urban Water
Systems, National
LGU-Run Utilities Many capacity-building programs are
Economic and
Development Authority, continuously being provided to LGU-run
1973
LGU-run utilities have been assessed as utilities and similar WSPs. However, the
26
De Vera, Antonio et al, “the least successful management model effectivity of these programs is difficult to
Developing the for providing water supply”.24 A NEDA assess.
Institutional Framework
for the Water Supply and
report identified the following structural
Sanitation Sector and weaknesses in the model in 1973:25
Identifying Investment
Plans and Programs –  A lack of autonomy of the utility;
Final Report, DPWH,
2013  Excessively responsive to short-term
27
Registered under political considerations;
Listahang Tubig as of
December 2018

40
MWSS Concessionaires Privately Owned and Managed
MWSS concessionaires cover the WSS Water Utilities
services in Mega Manila, which is Most water privatization contracts outside
composed of NCR and parts of Region IV- Mega Manila are between LGUs and large
A. The Manila Water Company, Inc. companies. However, some small-scale,
handles the East Zone Concession, and often informal, local operators provide
Maynilad Water Services, Inc. handles the services to a city or a municipality. In
West Zone Concession (see Table 11). addition to Manila Water and Maynilad,
The concessionaires reported a other big private operators include Prime
consolidated net income of PHP 9.60 Water and Balibago Waterworks. However,
billion in 2015, which represents a 15.6 there is no accessible financial and
percent growth from the previous year. technical information on the WSPs that
This growth is attributed to the sustained they operate.
positive performance of the These private utilities generally operate
concessionaires which reported 1.27 more efficiently than most LGU-run water
million billed service connections that utilities, given their stronger capital base
generated a 481.53 MCM volume in 2015. and ability to recover their operating costs
The estimated growth rates are 5.8 percent from tariffs.
and 4.2 percent for the past two years,
respectively, since 2015.
The concessionaires are financially
capable of carrying out their investment
plans. Both concessionaires have ventured
into partnerships with other WSPs in the
country and explored areas for expansion
in the Southeast Asian Region.

Table 11: Manila Water and Maynilad Coverage Areas in Mega Manila
Manila Water Maynilad
Metro Manila Province of Rizal Metro Manila Province of Cavite
Makati Angono Caloocan Bacoor
Mandaluyong Antipolo City Las Piñas Cavite City*
Manila* Baras Makati* Imus
Marikina Binangonan Malabon Kawit
Pasig Cainta Manila* Noveleta
Pateros Cardona Muntinlupa Rosario
Quezon City* Jala-Jala Navotas
San Juan Morong Parañaque
Taguig Pililla Pasay
Rodriguez Quezon City*
San Mateo Valenzuela
Tanay
Taytay

*Part of the area

41
 2.5.2 Sanitation
Septage and Sewerage Services
Households and communities are some of these private desludgers do not
responsible for constructing toilets and have their own treatment facilities or
septic tanks in compliance with the access to one. Worse, many of them
National Building Code (NBC). For sanitary indiscriminately dispose of the waste that
toilets and on-site treatment systems to be they have collected.
considered safely managed, wastewater New private players are emerging to
and septage (sludge content of the septic provide sanitation services and are
tanks) from these systems should be compliant with existing regulations from
treated and disposed of properly. DOH, Environmental Management Bureau
These on-site systems must be maintained (EMB), and other local ordinances of the
by a service provider. Sanitation service LGUs. Registered private service providers
means desludging (i.e., emptying of septic report their activities to the LGUs they
tanks) and providing sewerage services. serve and to the Regional Health Offices of
These services are sometimes collectively DOH to get and renew their ESC. By law,
referred to as wastewater management or service providers can operate only in the
fecal sludge management service. They areas that are stated and approved in their
include collection or conveyance, on-site or registration.
off-site treatment, and final disposal of As of writing, there has been no known
wastewater, fecal sludge, or septage. survey of sanitation service providers
Outside Mega Manila, sanitation service outside Mega Manila. Unofficial data shows
providers are principally comprised of that there are about 36 septage treatment
WDs, LGU-run water utilities, private sector facilities constructed all over the country at
service providers, and cooperative-run various stages of operation. Some
service providers. Private service sanitation services are offered by LGUs,
providers are known by their famous but most are by WDs. An estimation of the
monikers—Malabanan and Pozo Negro. performance of service delivery for
Their services are generally part of a sanitation in the country as of 2015 is
private business enterprise. However, shown in Tables 12 and 13.

Table 12: Estimated Coverage of Septage Management Programs in the Philippines, 2015
Areas with a Septage Total Population within Percentage of the Population
Management Program Franchise Area (2015) within Areas with a Septage
(2015 Population) Management Program
Mega Manila 14,868,425 14.7%
Outside Mega Manila 3,063,088 3.0%
Total 17,931,513 17.8%

Table 13: Estimated Coverage of Sewerage System Services in the Philippines, 2015

Areas with a Septage Total Population within Percentage of the of Population

Management Program Franchise Area (2015) within Areas with a
(2015 Population) Sewerage System Services

Mega Manila 12,877,253 12.8%

Outside Mega Manila 101,883 0.1%
Total 12,979,136 12.9%

42
Considering the percentage of the translates to less than 3.0 percent of the
population within the franchise areas, national population for 2015.
septage management services are made
The concessionaires are obligated to
available to about 3.0 percent of the
schedule or program at least 15.0 percent
population outside Mega Manila; only 0.1
of the total projected service connections
percent of the population outside Mega
in a year, considering a seven-year cycle.
Manila is served by existing sewerage
However, only 30.0 percent to 40.0
system/s.
percent of the scheduled customers are
MWSS Concessions actually served. The rest have no service
connections or have opted to sign a
According to the concession contract, the
waiver. The waiver states that the
concessionaires need to report on the
customer is relinquishing his or her claim
extent of their sanitation service coverage
on the desludging service and releases the
of current water supply connections or
concessionaire from any responsibility to
customers. This clause considers 100.0
provide the service. Concessionaires
percent coverage for septage management
typically do not provide wastewater
services. Table 14 shows a summary of the
collection and treatment service to
concessionaires’ performance in sewerage
noncustomers.
services in 2017.
MWSS concessionaires have served a
population of approximately 2.20 million
and 2.40 million in terms of septage and
sewerage services, respectively. This

Table 14: Septage and Sewerage Services Coverage by Concessionaires

in Mega Manila, 2017

Total Septage Collection Service Sewerage Service

Population
Concessionaires Population Percentage Population Percentage
within Service
Area Served Coverage Served Coverage

Manila Water 6,707,859 1,188,258 17.7% 955,533 14.2%

Maynilad 9,395,040 1,001,674 10.7% 1,455,920 15.5%

Total 16,102,899 2,189,932 13.6% 2,411,453 15.0%

43
 2.6 Government Interventions:
Policy and Program Reforms
The Philippine government implemented Water Supply Sector to reflect the
reform programs to increase access to and developments after 2010.
improve water service delivery from 1973
Many of these reform initiatives have been
to 2015. These programs have significantly
fully implemented. Some have been
increased access but not necessarily
partially implemented, while others are
improved the quality of service.
pending approval and implementation.
The figure below captures the reforms that Under these reforms, four programs and
were introduced under different their objectives can be considered
administrations since the introduction of extensive in scope (as shown in Table 15).
Presidential Decree (PD) 198 in 1973. The
diagram is partly based on the World
Bank’s Diagnostic Study of the Philippine

Figure 26: Historical Policy and Program Reforms in the Water Sector

44
Table 15: Major Reform Initiatives in the Water Sector
Initiative Objectives Degree of Success

Establishing WDs and Build strong water LWUA has supported the creation of 844
LWUA (PD 198) utilities by providing WDs through institutional requirements,
appropriate corporate technical assistance, supervision, and
form, finance, and financing from 1973–2013.
technical assistance

Establishing MWSS Encourage Public- Maynilad and Manila Water have committed
concessions Private Partnerships to cover NCR, Rizal, and some parts of
(PPP) to improve Cavite, and Bulacan. According to the 2017
operations and report of MWSS RO, the concessionaires
service have covered 92.2 percent of these service
areas.

Creating a national water Ensure cost-recovery Despite several attempts, no national water
regulator tariffs, and set regulatory agency has been created.
service standards
and benchmark The main reasons include the failure to
performance for all demonstrate compelling public benefit, a
WSPs legislative fear of creating an overly powerful
body with too little accountability, and a lack
of sustained support from the executive
branch.

Implementing EO 279 of Improve the The EO has been implemented slowly from
2004: “Instituting Reforms in creditworthiness of the outset but has improved thereafter with
the Financing Policies for WSPs through a LWUA’s full support.
the Water Supply and “graduation” process
Sewerage Sector and the with LWUA Many WDs have become more creditworthy
WSPs and Providing the and received selected financing from
Rationalization of LWUA’s Expand access to government funding institutions (GFIs) and
Organizational Structure competitive other forms of more competitive commercial
and Operations in Support commercial debt credit.
Thereof” markets for WSPs

45
 National Economic Regulator for  Classification of water bodies according
to their beneficial usage; and
WSS
There have been several attempts and  Information dissemination and conduct
proposals to create a national economic of educational awareness and value
regulator governing all WSPs, but to no formation programs/campaigns on the
avail. A national regulator can hold all effects of water pollution on health and
WSPs (LGU-run utilities included) environment, water quality
accountable by setting standards for management, and resource
service and access as well as by conservation and recovery.
monitoring compliance. This single Funding and Financing Support for
authority can require all WSPs to adopt
cost recovery policies and ensure a viable
Sanitation Reforms
operation while keeping tariffs at a The prescribed spending for the six-year
reasonable and affordable level. action plan for sanitation and wastewater
management was not carried out based on
The Clean Water Act an indicative spending from 2013 to 2015.
A few active Water Quality Management The proposed budget is approximately
Areas (WQMAs) have been established in PHP 87.00 billion or an average of PHP
the country. WQMAs can help control and 14.50 billion per year. However, the
abate water pollution as well as manage average amount spent is only
“non-attainment areas”. approximately PHP 5.30 billion for the
Sewage and Refuse Disposal Sanitation
Furthermore, DENR’s revised effluent
and Similar Activities.28
standards have not been converted to
those that should be industry-specific. The government must develop fiscal and
These standards can be derived from non-fiscal incentives to encourage LGUs
several policy directives based on the and sanitation service providers to create
Clean Water Act of 2004. WQMAs, introduce innovative technologies
and approaches, as well as control water
DENR’s responsibilities as the lead agency
pollution more efficiently. The National
for the implementation of the Clean Water
Water Quality Management Fund
Act include the following:
(NWQMF) and Area Water Quality
 A National Water Quality Status Report Management Fund (AWQMF) are fiscal
reviewed annually; measures that can help bankroll the efforts
to control and mitigate water pollution, but
 An Integrated Water Quality
they have not been fully operationalized .
Management Framework;
Major efforts to develop and promote the
 A ten-year water quality management
wastewater charge system for commercial
area action plan;
and residential sectors are needed as
 A National Groundwater Vulnerability mentioned in the Clean Water Act. This
Map; initiative has not fully materialized and
needs to be further studied.
 Water Quality Guidelines reviewed
every five years; The Manila Bay Mandamus
 Effluent standards reviewed every five The Manila Bay Mandamus has
years; established precedence for compelling
government agencies to perform their
 Internationally accepted procedures for
mandates and take responsibility for years
sampling and analysis of pollutants,
including testing procedures and of neglect that resulted in damage to water
bodies. Served in September 2002, the
accreditation of laboratories;
Mandamus required concerned
 Categorized point and non-point government agencies to clean up and
28
sources of pollution reviewed every two rehabilitate Manila Bay and restore its
PSA, National
Accounts of the years; waters to SB classification to make it
Philippines
 Classification of groundwater sources; suitable for swimming, skin diving, and

46
other forms of contact recreation. The level as part of the government’s flagship
decision is a first of its kind as it is also a sanitation program.
continuing Mandamus, and it will be effective
The DPWH, DOH, and Regional Development
until the objective has been accomplished.
Councils (RDC) or Provincial Water and
However, even with this Supreme Court Sanitation Units are tasked with providing
order, only a few septage treatment facilities technical support to LGUs and managing
in Bulacan, Nueva Ecija, and NCR have been sanitation services. Other agencies, such as
made operational in a span of 15 years. Only DILG, DENR, NWRB, and DSWD are assigned to
a handful of LGUs nationwide have with providing technical assistance and capacity
established septage management programs, development to LGUs to comply with national
and a couple of HUCs are working on their economic and resource regulations. The LGUs
existing sewerage systems. The water quality are responsible for establishing, operating,
and the productivity of the Bay has continued maintaining, and guiding WSPs (LGU-run utilities,
to deteriorate. This has prompted the barangay waterworks, and to some extent,
President to order its cleanup and barangay water cooperatives).
rehabilitation. A multi-agency Task Force, led
WDs would often request assistance from LWUA
by the DENR, was created to oversee this
and rarely from the LGU. External organizations
effort and a three-year Action Plan has been
and donors, however, are available to extend
developed and is being carried out.
support.
National Sewerage and Septage Private operators are assumed capable of
Management Program carrying out their tasks or providing for resources
Figure 27 shows the agencies tasked to to incorporate regular and sufficient capacity
implement sanitation projects at the local enhancement programs to supplement
operations. No government agency monitors

NEDA INFRACOM
Sub-committee on Water
POLICY

Resources

NSSMP Committee
Regulatory
Framework:
Implementation
Focal Point

DENR, DOH
NSSMP

NSSMP Office
(DPWH)

MWSS LWUA DPWH RDC, DOH,

Facilitators

(with DENR/DILG)
Project

Province Centers for Health

Development
Sewerage/ LGU cluster or regionally
Interceptor Projects important projects septage projects
Implementers

Metro Manila Water City or Municipality Private

Local

concessionaires Districts or cluster of LGUs in a Service

WQMA Providers

Figure 27: Organizational Chart for Implementing the National Sewerage and Septage
Management Program 47
 private operators unless done at the
expense of a concession agreement, which
is the case for MWSS and its private
concessionaires.
The rollout of the NSSMP in the regions
had limited impact considering the
awareness of local implementers to the
details of the said program.
The DPWH is tasked with developing the
national program and with listing all
sanitation projects nationwide. This task is
shared with other departments, such as
DOH and DILG. While DPWH has a
shortlist of projects, it would require further
assessment and technical assistance to
develop the initial project proposals.
The NEDA Board has approved the
amendments to the NSSMP framework to
augment government subsidy for septage
management and sewerage system
projects in June 2017. A subsidy up to 50.0
percent is allowed for locally-initiated
sanitation projects to be given to HUCs,
cities, and first-class municipalities. WDs
will need to coordinate with LGUs to avail
of this subsidy. The scope of the subsidy
needs to be expanded to cover all LGUs
and WSPs to facilitate the development of
sanitation projects. The grant subsidy must
not be limited to big LGUs but should
instead be demand-driven.
In addition, other important sanitation-
related tasks are vying for government
attention as follows:
 Programmatic Environmental Impact
Assessment (EIA) and carrying
capacity assessment specific to
sanitation interventions;
 Pollution research and development
program to include non-point sources;
 Emergency sanitation and cleanup
operations guidelines;
 Septic tank design standards and
alternative on-site systems;
 Unified Plumbing Code and
Implementing Rules and Regulations
(IRR); and
 Guidelines for Sewerage Planning and
Development.

48
2.7 Financing and Investments
The country’s Public Investment Program services in NCR through improved water
(PIP) for 2017–2022 has included a budget supply connections and redevelopment of
of PHP 7.76 trillion for infrastructure existing networks and pipelines.
development over the next six years. Of
Some LGUs depend on national grant
this amount, PHP 847.20 billion has been
funds and are hesitant to explore different
allocated by the current administration for
financial modalities. In addition, some
infrastructure projects in the 2017 national
LGUs do not prioritize the development of
budget through the “Build, Build, Build”
WSS. Meanwhile, other LGUs focus more
Program, the government’s centerpiece
on upgrading their water supply facilities
program seeking to accelerate
than improving sanitation and sewerage.
infrastructure spending and development.
The development and improvement of This discrepancy is noticeable in the
WSS services form part of this grand technical assistance and budget allotment
infrastructure investment. provided by grants, loans, and aids.
Funding for sanitation and sewerage
On the average, about PHP 3.40 billion is
program in rural areas is severely limited.
invested annually for WSS programs.29
This figure includes investments from
national and local government agencies
and units, private entities, WDs, GOCCs,
Financing Policies in the Sector
and non-governmental organizations The following financing policies, guidelines,
(NGO), among others. However, this and reforms are relevant to WSS:
amount is insufficient compared to the  EO 27930. EO 279 was passed to
much larger annual investments required to institute reforms in the financing
achieve universal access to WSS services policies for WSS and WSPs. All
by 2030. concerned agencies are directed to
To supplement the budget, WSS projects pursue reform objectives and policies.
can access investment financing through WSPs may choose their source of
multiple channels and sources. One financing and encourage participation
external channel is the Official by LGUs, GFIs, and PFIs in financing
Development Assistance (ODA). ODA WSS projects.
partners have provided the government  Unified Resource Allocation
with grants and loans aligned with their Framework (URAF). The NEDA Board
strategic framework for development. Committee on Infrastructure
These agencies include the World Bank (INFRACOM) has developed the
(WB), the Asian Development Bank (ADB), URAF to optimize the use of national
the UN, and other bilateral aid agencies. government resources in increasing 29
2008–2012 Annual

Another external channel is the private access to water and improving WSS, Average; sourced from
the Philippines Water
sector. The joint effort of the public and particularly in the LGUs. The URAF Supply and Sanitation
private sectors, also called PPP, can also outlines the approaches and ways by Unified Financing

be a mechanism for funding infrastructure which to finance the sector in an Framework; Castalia
and LIDP Report, 2014
projects. affordable and systematic manner. 30
EO 279 was
amended by EO 279-A
Government banks, such as Land Bank of in 2008 and by EO 62
in 2011. Under EO
the Philippines (LBP) and Development 279, LWUA was under
Bank of the Philippines (DBP), also provide the supervision of the
loans to WDs and large concessionaires. OP. Under EO 279-A,
it was transferred to the
Some LGUs also acquire loans from these Department of Health
GFIs to finance their WSS projects. and then transferred to
DPWH under EO 62.
In addition, the two largest water service
companies in the country, Manila Water
and Maynilad, have been expanding their 49
 2.7.1 Water Supply  A reasonable surplus for replacement,
extension, and improvements;
The total investment for WSS projects is
 Payment of interest and principal, and
difficult to track owing to numerous
provision of a sinking fund for payment
financing channels or conduits.
of debts as they become due; and
In addition to public funds, WSS projects
 Establishment of fund for reasonable
are financed through PPP and joint venture
reserves.
(JV) agreements. Attempts to form a
national account for the WSS sector to The measurement for setting the tariff is
enable rationalized monitoring of finances the cash balance at the end of the calendar
have failed. year, which must be within two to three
months of the succeeding year’s operating
Cost Recovery and Tariffs expenses. A figure that is too low is
considered critically alarming, and a figure
Water Districts and the LWUA that is too high points to a failure to utilize
Under PD 198,31 LWUA shall have the resources to address public need.
authority to review the proposed rates of The law requires that increases for the
WDs to establish compliance. The rates, minimum charges shall not go beyond 60.0
which must be supported by a 10-year percent of the current rate. As added
projected cash flow, must be adequate to protection to the consumers, the minimum
provide for:32 charge shall not be more than 5.0 percent
 Reimbursement from all new of the average income of the low-income
customers for the cost of installing new group. Although the term “low-income
services and meters; group” is not clearly defined, LWUA
considers minimum wage earners under
 Revenue from all water deliveries and
this category. Most tariffs of WDs are within
services performed by the district;
the cap of 5.0 percent of the minimum
 Annual operating expenses of the wage in the country.
district;
Table 16 shows the ideal average
 Maintenance and repair works; minimum charge for the first ten cubic

Table 16: Average Minimum Charge for the First Ten Cubic Meters
31
Presidential Decree Average Consumption Minimum Charge for the
Cost per 20 m3
198: Declaring a Year Per Month First Ten Cubic Meters
(in PHP)
National Policy (in m3) (in PHP)
Favoring Local
Operation and Control 2016 21.17 198.16 422.04
of Water Systems;
Authorizing the 2015 20.99 197.39 420.26
Formation of Local
Water Districts and 2014 20.35 195.95 413.85
Providing for the
Government and 2013 20.97 195.44 412.81
Administration of Such
Districts; Chartering a
2012 21.37 194.07 409.98
National Administration
Source: LWUA
to Facilitate
Improvement of Local Table 17: General Indicators for the Approval of Tariffs
Water Utilities; Granting
Said Administration
Indicator Description
Such Powers as Are
Necessary to Optimize NRW Production–Consumption/Production
Public Service from
Water Utility Collection Efficiency Total current collection/Total current billings
Operations, and for
Other Purposes Market Growth Number of service connections generated for specific years in the CF
32
Manual on Water
Rates and Related Capital Expenditure Actual implementation of scheduled CapEx in the CF
Practices, issued by
LWUA February 2000 Cost Control Deviation from the amount of fixed and other O&M costs in CF
Reserves Actual amount of reserves as compared to CF projections
Staff Productivity Index Ratio of WD employees to active connections
50
meters.33 The rates are below the cap of 5.0 and adjustments can be applied in the
percent of the average minimum wage34 in succeeding tariff proposals.
the country, which is calculated at PHP
The general rule is to consider consumers
6,446.00 as provided by the law.
as residential connectors, but NWRB may
A public hearing is required before water allow other categories if the consumption is
rates can be approved. For WDs covering substantial. The rate comprises two parts:
more than one LGU, a public hearing shall minimum charge and commodity charge.
take place for every city or municipality. The minimum residential charge should not
exceed 5.0 percent of the family income of
Since tariffs are based on prospects and
the low-income group, within the service
projections, LWUA issued a resolution to
area. As part of its monitoring mechanism,
ensure that WDs will do what is necessary
WSPs are required to submit an annual
to achieve their business plans and targets.
report to NWRB, which includes entries on
Table 17 presents the general indicators and
their operation costs and financial
conditions in the approval of tariffs.
performance.
WDs that fail to adhere to the indicators may
LGU-Run Utilities and the DILG
be sanctioned, which include withholding an
action on or approval of subsequent tariff Expanding sustainable investment in the
adjustments or financial assistance. water sector is hampered by the low level
of cost recovery for WSPs. If WSPs are not
Private Water Providers and the NWRB
efficiently managed, this will slow down the
NWRB created a primer on tariff-setting and pace of development and stall the
regulation in March 2005 that applies to expansion of the water sector.
WSPs in the private sector. The guidelines
Despite state policy for cost recovery,
require WSPs to come up with a five-year
actual progress towards this end has been
business plan as basis for the requested
a challenge.
water rates.
For some LGU-run utilities, tariffs cannot
The goal of tariff-setting is to ensure that
recover O&M costs. These utilities are
there are sufficient funds to provide for the
dependent on local government subsidies
agreed-on levels of service, such as number
to compensate for O&M costs and capital
of hours of service, water quality, NRW
expenditures.
percentage, service coverage, and pressure
at which the service is provided. Thus, The structure for LGU-run utilities varies
WSPs are required to commit to targets and from decreasing to increasing block rates.
carry out the terms indicated in KPIs. For lower service levels, majority of tariffs
are virtually non-existent. Local
NWRB adopted the return on rate base
governments invest in replacements and
(RORB) approach where the revenue
maintenance. Additional connection fees
requirement for the next five years is based
do not recover the full costs of connection.
on the level of operating expenses,
depreciation of property, and reasonable
surplus equivalent to 12.0 percent of net 33
From LWUA website
book value of property, etc. (http://122.54.214.222/
water rates/
Since the approved tariffs are based on RatesTable.asp)
projections, the guidelines included a 34
Source: https://
mechanism to make any upward or www.nwpc.dole.gov.ph/
pages/statistics/
downward adjustment at the end of the five- stat_comparative.html.
year period to consider deficiencies. NWRB For comparative
allows a maximum ROI of only 12.0 percent, purposes, the figure
used is the lowest non-
agriculture minimum
wage in Region IV-A.

51
 Investment Spending
A summary of significant investments in the WSS sector by the government and GOCCs is
shown in Table 18.

Table 18: Investments in the WSS Sector Since 2010

Project/ Program Source Amount

Sagana at Likas na Tubig Para sa Lahat Public funds PHP 5.81 billion
(SALINTUBIG) Program
Capital Investment for 2016 and 2017 Public funds PHP 1.51 billion

Assistance to Disadvantaged Municipalities/ Public funds PHP 19.43 billion

Assistance to Municipalities 2017
Tourism Water Supply Infrastructure Program Public funds PHP 1.73 billion
(TWSIP) 2014 General Appropriations Act (GAA)
Manila Water Company, through its subsidiary Private funds through PHP 4.00 billion
Manila Water Philippine Ventures, Inc. (MWPV) loan

Angat Water Utilization and Aqueduct Improvement Private funds through PHP 5.26 billion
Project Phase II (2010) loan
Note: This does not represent the total investment from the government for the WSS sector in the last five years.

A summary of significant investments in the WSS sector by donor agencies is shown in

Table 19.

Table 19: Investments in the WSS Sector by Donor Agencies Since 2011

Donor Agency Program Amount

World Bank Support to Philippine water, sanitation, and flood USD 4,700.00
protection initiatives for 2015 million

ADB Support to WSS projects for the Laguna Lake USD 770.00
Flood/Integrated Water Resource Management million
Program, the Second Phase of the Angat Water
Transmission Improvement, Angat Water
Transmission Improvement Project, and the Water
District Development Sector Project in Metro Manila
ADB Support to the improvement of water and sanitation USD 60.00 million
assets outside NCR

ADB Grants of subsidy for sanitation facilities and USD 3.00 million
capacity-building support for LWUA

United States Agency Expanding access to financing for investments in -

for International WSS projects
Development (USAID)
JICA Support to the development of a water supply -
system in Metropolitan Cebu

Asian Infrastructure Support to the New Centennial Water Source - USD 374.00
Investment Bank Kaliwa Dam Project in Quezon million
(AIIB)

52
A summary of projects in water and sanitation under PPP arrangements is shown in Table 20.

Table 20: Water Supply and Sanitation Projects under PPP Arrangements
Project
Duration
Legal Cost Implementing Contractual Procurement
Project Title of
Basis (in USD Agencies (IAs) Scheme Mode
Contract
Billion)
Bohol Water NEDA JV 0.02 Provincial JV Solicited Jan 2015
Supply Guidelines, Government of – Dec
System RA 7160 Bohol 2019

Clark Water RA 7118 0.06 Clark Contract- Solicited 2000–

Supply and Development and-Add 2025;
Sewerage Corporation (CA) extended
(CDC) to 2040
MWSS RAs 7118, 7.00 MWSS Contract-Add Solicited Aug 1977
Privatization 8041, 6234 -Operate- –Aug
and-Maintain 2022
(CAOM)

Subic Water NEDA JV 0.12 Subic Bay JV Solicited April 1997

and Guidelines Metropolitan –April
Sewerage Authority 2022

2.7.2 Sanitation
Sanitation projects and water supply as cost of money, capital buildup
projects are funded similarly. Much of the projections, and O&M cost qualified during
recent financing mix is applicable to the probing period. Tariffs can be more
sanitation from a pure debt financing encompassing to protect future expenditure
scheme and public funding to privately requirements of WSPs.
funded Build-Operate-Transfer (BOT)
projects to PPP funding mechanisms. Local councils formulate the tariff for LGU-
run and CDA-initiated WSPs. This process
The investments for sanitation facilities and is very arbitrary and sometimes without
services are allowed by law to be recourse to the true value of the service
recovered through any viable tariff system. and investment. It often leads to poor
The Philippines, however, has very limited implementation, maintenance, and
experience in instituting a tariff system for management of the system and service,
sanitation services and looks to advanced and must be reviewed to ensure correct
countries for tariff models that can work pricing of a vital service.
locally.
Tariff formulation for all WSPs will ideally
need to be under one economic regulator.
A uniform model of how sanitation systems
are safely managed and valuated must be
implemented, regardless of institutional
structure. The current guidelines for tariff
setting for sanitation from LWUA is
reflected in a Board of Trustees resolution.
These tariffs must incorporate factors, such

53
 2.8 Regulation
Several pieces of legislation were crafted protective measures, which include
and implemented with respect to the WSS required minimum distances of artesian,
sector. Some of the key legislative tools deep, or shallow wells from any source of
surrounding the WSS sector are briefly pollution.
discussed below.

2.8.3 Other Legislation,

2.8.1 Water Code of the Policies, and Issuances
Philippines
Table 21 shows the relevant policies and
PD 1067, also known as the Water Code of dominant issues from 2002 to 2017.
the Philippines, was promulgated in 1976
and has the following underlying principles:
 All waters belong to the State. 2.7.4 Economic Regulation
 All waters that belong to the State Only 27.0 percent of piped WSPs, mostly
cannot be the subject to acquisitive WDs and private WSPs, are subject to
prescription. economic regulation. In addition, there is
 The State may allow the use or no lead agency for the sector that grants
development of waters by and revokes licenses and set standards for
administrative concession. public and private WSPs. Several agencies
 The utilization, exploitation, (as shown in Table 22) act as economic
development, conservation and regulators for water in the absence of a
protection of water resources shall be lead regulatory agency.
subject to the control and regulation of
Some regulations have not been modified
the government through the National
Water Resources Council (later to suit certain changes in the WSS sector
over the years. For instance, LWUA’s long
renamed NWRB).
approval process for tariff adjustments has
 Preference in the use and development
stalled WDs’ expansion and improvement
of waters shall consider current usage
projects.
and be responsive to the changing
needs of the country. In addition, current tariff structures restrict
the responsiveness of small WSPs or
WSPs in poor communities. NWRB is not
2.8.2 Sanitation Code of the structured to regulate private WSPs, but it
Philippines has played the role of a regulator since
1978.
The Sanitation Code of the Philippines was
LGU-run utilities and MWSS are self-
promulgated in 1975 under PD 856.
regulated. Most LGU-run utilities perform
Chapter 2 of the code covers sanitation.
poorly because they are not required to
The code prescribed the standards and adhere to set national standards or targets
procedures for water supply that include and have limited access to financing. In
standards for drinking water, water contrast, MWSS is financially sustainable,
treatment for drinking, and disinfection of but its internal regulatory body presents a
contaminated water sources and potential conflict of interest. The internal
distribution systems. body continues to operate after it was
The code also covered types of water created as a “temporary” solution in the
examinations required for drinking water, absence of an independent body in 1997.
examining laboratories and submission of Private water companies and LGUs have
water samples for examination, and other explored models of partnerships to reach
54
Table 21: Relevant Legislation, Policies, and Issuances (2002–2017)
Legislation, Policy, and Title
Issuance
Reconstituting the NWRB, transferring the tariff setting function of LWUA to NWRB, and
EO 123 of 2002
transferring it from DPWH to DENR
RA 9286 An Act Further Amending PD 198 (2003)
RA 9275 Philippine Clean Water Act of 2004
Instituting Reforms in the Financing Policies for the Water Supply and Sewerage Sector and
EO 279 of 2004 WSPs, and Providing for the Rationalization of LWUA’s Organizational Structure and
Operations in Support Thereof
Transferring the LWUA from the OP to the DPWH and Strengthening the Supervision by the
EO 387 of 2004
DPWH Secretary over the MWSS
EO 738 of 2005 Transferring the LWUA from DPWH to DOH
Declaring the River Basin Control Office under the DENR as the Lead Government Agency for
EO 816 of 2009 the Integrated Planning, Management, Rehabilitation, and Development of the Country’s River
Basins
Redefining the Composition of the NWRB and returning the tariff setting function from NWRB
EO 860 of 2010
back to LWUA
EO 62 of 2011 Transferring LWUA from DOH to DPWH
2013 NEDA JV Revised Guidelines and Procedures for Entering into JV Agreements Between Government
Guidelines and Private Entities
DOH Administrative National Water Policy on Water Safety Plans for all Drinking WSPs
Order 2014-0027

more people. NEDA issued the JV Guidelines in Table 22: Regulating Agencies in the WSS Sector
2013, and more than 60 WDs were expected to sign Agency Regulated Entity
JV agreements by the end of 2018. However, a
LWUA WDs
review of the guidelines revealed major lapses in
transparency in the solicitation, application, and NWRB Private waterworks including
implementation of these agreements in 2017. cooperatives, real estate
developers and private
In addition, many WDs believe that JV agreements operators
violate the restrictions in the contracts that the Philippine Economic Economic zones
board of directors of WDs can engage in as stated Zone Authority
in Section 31 of PD 198. (PEZA)

Several private companies acquire rights to water LGU LGU-run utilities (self-
regulated)
sources, so they can sell the permits to WDs. This
unchecked process gives undue advantage to the MWSS Manila Water and Maynilad
companies.
Tourism Infrastructure Designated tourism economic
Lastly, some existing regulations are vague and and Enterprise Zone zones (including Boracay)
poorly enforced. The Clean Water Act allows WSPs Authority (TIEZA)
and LGUs in Metro Manila and HUCs to collect fees
from commercial and residential establishments Subic Bay Subic Water
connected to sewerage systems. However, the law Metropolitan Authority
does not state the agency responsible for reviewing (SBMA)
and approving these fees. This gray area has CDC Clark Water
allowed WSPs to set their own fees without an
external review.

55
 2.9 Issues and Challenges
This report lists herein the most important issues and challenges confronting the WSS sector
per component.

Table 23: WSS Issues and Challenges

Components of Issues and Challenges
WSS Sector and █ Water Supply
Their Objective █ Sanitation
Statements
Natural  Some potential water sources are polluted or contaminated.
Resources
System  Water sources are insufficient in some areas. Other sources are drying up due to over-
extraction or sensitivity to weather patterns and climate change.
Efficiently
Managed Finite  Assuming business as usual, the country will experience high water stress owing to high
Water Resources total water withdrawal against projected renewable water resources by 2040.
and Water
Ecosystem  Rainfall variability and extreme weather events (usually attributed to climate change)
make water resource management more difficult.

 Excessive groundwater extraction has led to saltwater intrusion and groundwater-related

subsidence.

Socioeconomic  Increasing population and economic growth increase water demand and generation of
System waste and wastewater.
WSS Promoting  Rising temperature (due to climate change) will increase water usage.
Socioeconomic
Growth  Climate change increases the risk of waterborne diseases and transmission of malaria.

Use of and  The quality of water resources is deteriorating because of unmanaged wastewater
Impact on Water entering the water ecosystem.
Responsible Use  There is a lack of awareness and concern about the effects of unmanaged waste and
and Balanced wastewater on watersheds, water sources, and water ecosystems.
Demand and
Supply  There is a lack of appropriate technologies, or application thereof, to optimize the use of
water resources.

 There is no clear policy promoting water demand management to maximize available

water supply. This includes water efficiency and water conservation for all users, the use
of the right quality of water for its intended use, the use of economic instruments and
other incentives/disincentives to effect behavioral change.
Administrative  There is no single body focused on WSS, resulting in a fragmented sector with multiple
and Institutional water institutions and no clearly defined institutional roles regarding sanitation issues.
System

Enabling  There is no apex body to oversee the whole cycle with respect to the use of the country’s
Administrative water resources — from the source, to the quantity and manner to which water is used, to
and Institutional sanitation and treatment, and ultimately, back to the source. Also, the inadequacy in
Arrangements numbers of river basin organizations makes it difficult to carry out a holistic planning
approach.

 NWRB does not have the appropriate institutional structure to complement its mandate as
35
a policy-making body, water resource regulator, and economic regulator.

 WSS data gathered by the PSA are limited.

 LGUs lack the capacity and capability to perform their obligation of ensuring the reliability
36
of WSS services per the LGC.
35
The regulatory stick of NWRB is not exercised when financing from their institution is unavailable.
36
LGUs that run water utilities often lack the technical and financial capacity to operate, maintain, and expand their services.
Furthermore, in some LGUs, WSS is not a priority.
37
Several economic regulatory agencies were formed to oversee the water sector thus making them very inefficient with respect to
their regulatory functions.
38
Only 27.0 percent of the country’s piped water utilities (mostly WDs and private utilities) are subject to economic regulation, leaving
73.0 percent without any standard guidelines for tariff setting or oversight on performance.
39
The issues on WSS data collection and management include, but are not limited to: (a) lack of an information and monitoring
56 system on access and coverage; (b) lack of baseline data on WSS; (c) inadequate sector data that can guide policy and investment
decision makers; (d) unavailability of current/up-to-date water resources data; (e) very limited data on water quality and sanitation;
and (f) outdated data of most WSPs registered under NWRB's Listahang Tubig
Table 23 (continued): WSS Issues and Challenges
Components of Issues and Challenges
WSS Sector and █ Water Supply
Their Objective █ Sanitation
Statements
Policies,  The sector’s economic regulatory framework is severely fragmented,37 poorly enforced, and
Regulation, and has very limited38 coverage. Also, there is no regulatory oversight on JV arrangements.
Management
 Poor enforcement of and compliance with policies and laws (i.e., Clean Water Act, and
WSS-related other resource-, economic-, environment-related policies) can be observed.
Policies,
Regulations, and  The sector lacks an independent water agency with the power to grant and revoke licenses,
Management as well as the authority to set standards and targets for private and public WSPs.
 WSS data and information used in decision-making are limited, scattered among the
different government agencies/offices that have water-related functions, and poorly
managed and monitored.39

 Implementation, monitoring, and management of WSS services and infrastructure are

sorely lacking.40

 There have been no directives or strategies by which to translate PDP/SDG targets and
commitments into local programs and projects.

 Issuance of water rights is not regulated. In addition, speculators hoard water permits.
 Sanitation interventions are inadequate, not sustainable and unbalanced in terms of
implementation.41
 Many WSPs have inadequate management and O&M capability.42
 Water rates are too low in some areas, thus yielding no cost recovery.

 Access to potential technologies is restrictive.43

 Water is being used as a political commodity. Some LGUs and WDs are caught up in
political conflict or burdened by interference from politicians, thus affecting the interest of
water consumers.
 Investments in WSS sector are insufficient.
WSS  Water supply systems (or structures) are not properly designed, 44 constructed, operated,
Infrastructure and maintained.
and Services
 There is a lack of water supply structures to optimize available resources, 45 ensure water
Resilient, quality and sanitation,46 or provide access to water.47
Responsive, and
Sustainable WSS  Funds are inadequate48 and access to financing is difficult,49 yet there are programs and
Infrastructure and projects (NSSMP, LWUA WD Development Sector Project) with very few takers.
Services
 Some WSPs are not operational and sustainable.50
 Some WSPs, including WDs and LGU-run utilities, fail to serve barangays within their
franchise area and meet water supply and service delivery standards 51

 Some WSPs are unfamiliar with new technologies and updated techniques.

40
Monitoring of water quality and sanitary facilities is minimal or rarely done. There are no nationwide programs established to implement and
monitor wastewater/fecal sludge collection and treatment tied to water pollution control. A lack of comprehensive and participatory planning at
the local level and a lack of proper community engagement can also be observed.
41
The government has failed to invest on a scaled-up, sustained, and well-coordinated campaign at the national and the local levels. Sanitation
policies and programs are lopsided, i.e., emphasis is placed on the responsibility of WSPs and not on public participation and sanctions for
noncompliance.
42
There is a lack of capacity with respect to O&M and WSS improvement planning, and fundamentals on tariff setting among some WSPs.
Some LGU-run utilities, in particular, cannot increase rates and thus, are subsidized. To some extent, unqualified board members are
appointed to head many WDs.
43
Potential technologies entail many requirements and conditions, thus making such technologies expensive or difficult to adopt.
44
WSS infrastructure is not resilient to climate change and climate hazards. Furthermore, proper and comprehensive studies on intended water
sources are not conducted before structures are built and conveyance pipes laid. Many (relatively) newly constructed water supply systems
(mostly in rural areas) do not or poorly operate because water sources are too limited.
45
Certain potential water sources are too expensive to develop; other sources are located very far from communities.
46
There is a lack of water laboratories and septage facilities in far-flung areas.
47
Most surface water sources require high dams, tunnels, and long conveyance lines. Elevated communities have no access to water supply
when a water source is located in a lower area. Water has to be transported to island communities that have limited or no potential water
resources.
48
National funds are inadequate for the maintenance, rehabilitation, and expansion of water systems.
49
Smaller and less or non-creditworthy water districts and LGU-run utilities find it difficult to comply with the stringent requirements to access 57
funds and financing.
50
WSPs are not operated as business enterprises. There are WSPs with high NRW (e.g., 60.0 percent or more).
51
Some WSPs need to address consumer-related issues such as unsatisfactory service, limited coverage of franchise areas, and inefficient
water supply delivery.
 3
Vision and
Development Outcomes
3.1 Vision
“All Filipinos have access to sustainable and
affordable safe water supply, and to adequate
safely managed sanitation services by 2030.”

3.2 Sector Goals and Outcomes:

Benchmarks and Targets
The PWSSMP’s vision is set on the universal access to WSS services by 2030. It is in
accordance with the direction towards achieving the PDP targets by 2022. Table 24 details
the sector goals and targets per the SDG, PDP, and the Clean Water Act of 2004.

Table 24: Sector Goals and Benchmarks

Hierarchy of Objectives
Source of
National Targets and Commitments Baseline
Data

Goal Universal (100.0 percent) and equitable access 92.0 percent NDHS,
to safe and affordable drinking water by 2030 2017
Universal access to adequate and equitable 69.0 percent NDHS,
sanitation by 2030 2017

Outcomes By 2022, percentage of households with access 88.0 percent FIES,

to safe water supply increased to 95.0 percent 2015

By 2022, percentage of households with access 74.0 percent FIES,

to basic sanitation increased to 97.0 percent 2015

By 2020, all LGUs (1,634) will have developed 3.0 percent PWSSMP
septage management systems. (52 of 1,634) Inventory

By 2020, the 17 HUCs will have developed 6.0 percent PWSSMP

sewerage systems. (1 of 17) Inventory
41.0 percent PWSSMP
By 2020, approximately 43.60 million people will
(17.93 of Inventory
have had access to septage treatment facilities.
43.60 million)
By 2020, approximately 3.20 million people will 24.7 percent PWSSMP
have had access to sewerage treatment (3.20 of 12.98 Inventory
facilities. million)

By 2020, PHP 26.30 billion will have been No data available

invested in sanitation improvement projects.

By 2020, approximately 346 million kilograms of No data available

biochemical oxygen demand (BOD) will have
58 been diverted from the environment per year as
a result of the sewerage and septage
management projects.
Legend: █SDG 2030 █ PDP 2017–2022 █Clean Water Act of 2004
3.2.1 Water Supply
3.2.1.1 Normative Elements
The normative content of the human right
to water supply may serve as a guide in
assessing the state of the country’s WSS
sector (i.e., if the minimum baseline
requirements of providing WSS services
are met). The normative elements are
divided into five categories (Table 25).

Table 25: Normative Content of the Human Right to Water Supply

Normative Content Key Concepts and Definition

Availability  The quantity of water for drinking and domestic use must be available:
 Level I service: at least 20 liters per capita per day (lpcd)
 Level II service: at least 40 lpcd
 Level III service: at least 80 lpcd
 Water supply must be reliable and available at any time of the day.
Physical Accessibility  Water facilities must be physically accessible, i.e., near or within one’s
home or place of work.
 Distance from dwelling to water point and source to person ratio must be
as follows:
 Level I service: 250 m; 15 households
 Level II service: 25 m; 4–6 households
 Level III service: within premises; 1 household
 The time spent in hauling water must be a maximum of 30 minutes.
 There must be a safe and convenient path for all.
 Adopted technology must be user-friendly.
 Water must be accessible to men and women of all ages and those with
specific needs.
Quality/Safety  Water supply must be safe for drinking and must comply with the PNSDW
and other water quality standards contained in relevant laws and policies.

Affordability  Water service must be reasonably priced and affordable; payment must
not limit people’s capacity to acquire other basic goods and services.
Acceptability  Water supply services must be acceptable in relation to the cultural needs
and preferences of users.
 Water must be of an acceptable color, odor, and taste for personal or
domestic use; otherwise, people may resort to unsafe alternatives.
 Facilities, such as public rest rooms, must be acceptable especially with
regards the standards of personal hygiene. Facilities must ensure the
privacy and dignity of users.

Source: The Influence of the Human Rights to Water and Sanitation Normative Content in Measuring the Level of
Service (Flores, 2017)

59
 3.2.1.2 Access Baseline data in water supply access per
This master plan envisions a percentage province were gathered from the regional
increase in access to safe water supply to planning workshops. Numbers were
95.9 percent in 2022 and 100.0 percent in consolidated to form the regional outlook
2030 (see Table 26). By 2030, per level of service (see Figure 28) forming
approximately 128 million Filipinos would the overall target at the national level.
have had universal access to safe water
supply.

Table 26: Water Supply National Targets and Commitments for 2022 and 2030
Population 2015 Baseline 2022 Target 2030 Target

in in Percentag in
Percentage Percentage Millions
Millions Millions e

Total 100.0% 100.98 100.0% 113.47 100.0% 127.58

With Access to Safe Water 87.2% 88.05 95.9% 108.82 100.0% 127.58

Without Access to Safe

12.8% 12.93 4.1% 4.65 - -
Water

60
Figure 28: Coverage Baseline and Targets in 2022 and in 2030 towards 100% Coverage
3.2.1.3 Service Quality the chemical, physical, and microbiological
quality of potable water.
Target beneficiaries must receive safe and
reliable water supply at all times. This NWRB and DOH prescribe protocols to test
definition excludes cases where the the water at the supply source and through
distance to the water source is excessive, the distribution system. The minimum
water is rationed, or water pressure or frequency of physical and chemical
quality is inadequate. sampling for drinking water supply is once
a year. Table 27, details how often testing
The following KPIs of service quality will be
is done for the microbiological properties of
measured for all levels of water supply
water.
service:
Level III WSPs, particularly WDs, are
 Water Quality;
required to maintain 0.2 mg/l of residual
 Water Reliability/Availability; and chlorine at the farthest point of the service
area. This protocol ensures that water
 Water Pressure.
quality is safe from the water source to the
Data are lacking in some areas, thus a customers’ taps.
survey using the specified indicators is
Monitoring and testing are important when
needed to establish the baseline conditions
major developments or environmental
with which future numbers will be
changes occur, or if important changes are
compared.
found in the water quality from a tested
Water Quality source thus compromising water quality.
Water quality measures how good the Access to safe water must include
water is in terms of supporting beneficial acceptable water quality. However, the
uses or meeting environmental values. quality of water at the source is not
Potable water is water that is suitable for monitored, and data, if available, are kept
drinking and cooking. Potability considers in different agencies depending on the
the safety of water in terms of health, and level of source and management type.
its acceptability to the consumer, which is
The KPI for water quality is the percentage
in terms of taste, odor, color, and other
of water sources and/or WSPs that meet
qualities palatable to the senses.
PNSDW requirements. Baseline conditions
As mandated by law, all water supply will have to be established and collated at
sources and drinking WSPs must abide by the national level. The recommended
the requirements prescribed by PNSDW target is that 100.0 percent of water
which was updated and stipulated in DOH sources and WSPs are safe and potable.
Administrative Order No. 2017-0010. The
standards provide the minimum criteria for

Table 27: Minimum Frequency of Sampling for Drinking Water Supply Systems for
Microbiological Examination (from PNSDW)*
Minimum Frequency of
Source and Mode of Supply Population Served
Sampling
Level I 90–150 Once in three months
Level II 600 Once in two months
Less than 5,000 Two samples monthly

One sample per 5,000

5,000–100,000 population + 2 additional
Level III samples per month

One sample per 10,000

More than 100,000 population, plus 12 additional
samples monthly
Emergency Supplies of
Before delivery to users
Drinking Water
* The values in the table are for total coliform and thermotolerant coliform / E.coli
61
 Water Reliability and Availability hand, the minimum pressure is 7 m at peak
hours for each household. At the most
Water reliability and availability measure
remote end of a water supply system,
the percentage of water sources and/or
minimum pressure may be allowed to be
WSPs that deliver 24-hour water supply.
as low as 3 m (equivalent to a one-story
Water rationing occurs at every level of house).
service when water supply is not available
The maximum allowable pressure in the
all day. Water that is not readily available
system must be 70 m. Pipes may not be
24 hours a day poses health risks and
able to withstand greater pressures, which
affects meter efficiency. Polluted water
may result in pipe bursts.
may infiltrate the leaks in pipe joints and
service taps when water service is cut. For the PWSSMP, the minimum pressure
of 7 m is adopted for Level III WSPs. This
Therefore, maintaining a 0.2mg/L residual
is based on the standards used by the
chlorine helps counter the health risk.
country’s two biggest Level III WSPs,
Similar with water quality, baseline data for Maynilad and Manila Water. The key
water availability must be established. indicator to be monitored is percentage of
WSPs must strive to achieve 24-hour water Level III WSPs with the 7-meter minimum
availability, especially considering that pressure.
water service must be reliable during times
of emergencies.
However, in most small WSPs, economic
3.2.1.4 Sustainability
reasons prevent 24-hour daily water The following KPIs measure sustainability:
service. Availability depends on system
 Percentage of population with
pressures (e.g., during peak hours) and the
consumption of at least 20 lpcd (Level I),
capacity of available water sources. In
40 lpcd (Level II), and 80 lpcd (Level III);
these cases, monitoring and recording the
average number of hours of water  Percentage of WSPs that meet the NRW
availability must be done. Collected data targets; and
are paramount in establishing an average
 Percentage of WSPs that meet
at the national level, which may serve as a
operating ratio and collection efficiency
benchmark for the operations of WSPs.
targets
Water Pressure
To ensure efficient WSPs, the following
The quality of water service is measured by must be undertaken:
the amount of water pressure available at
 Organize water utilities as economic
the household connection (for Level III) and
enterprises or form new WDs;
public tap (for Level II). Water pressure is
directly proportional to discharge or flow  Enforce a system for rewards and
rate, and consequently, water volume. Low incentives to motivate WDs to improve
pressures mean less water supply being their performance;
delivered at a certain time.  Create a special unit in municipalities
In addition, maintaining minimum that will handle Level I and Level II
pressures in the pipe prevents supply services; and
contamination and promotes the overall
 Create a dedicated office in the
efficiency of the water supply system. The provinces to lead the development of
minimum pressure at system junctions (i.e.,
WSP projects and coordinate with those
points in the network where links join and
in charge of provincial development
where water enters or leaves the network) plans.
must be 10 psi or 7 m (equivalent to a two-
story house) at peak hours. On the other

62
3.2.1.5 Results Matrix (Comprising
Existing and New KPIs)
In addition to the goals in the PDP 2017–
2022, improvements in service quality and
sustainability of WSPs will be measured.
Below are the proposed benchmarks and
targets in regard to access, service quality,
and sustainability involving LGUs and
WSPs.

Table 28: Proposed Benchmarks for the Water Supply Sector

2015
Key Performance Indicator Source of Data 2022 Target 2030 Target
Baseline
Percentage of households with no PSA 12.8% 6.6% 0.0%
access to safe water

Percentage of households with PSA, Regional 43.6% 58.3% 77.1%

access to Level III systems Consultations

Percentage of households with PSA, Regional 11.2% 15.0% 14.0%

access to Level II systems Consultations

Percentage of households with PSA, Regional 32.4% 20.1% 8.9%

access to Level I systems Consultations

Percentage of WSPs providing No data

water that meets the PNSDW available
requirements

Percentage of Level III WSPs No data

achieving 7 m minimum water available
pressure

Percentage of WSPs that have No data

sufficient water sources to serve available
franchise beneficiaries

Percentage of Level III WSPs with No data

an average per capita available
consumption equal to or less than
120 lpcd

63
 3.2.2 Sanitation
3.2.2.1 Normative Elements
The normative content of the human right
to sanitation guides the assessment of the
minimum baseline requirements for
providing WSS services to the populace.
Table 29 divides the normative elements
into five categories.

Table 29: Normative Content of the Human Right to Sanitation

Normative Content Key Concept and Definition

Availability  The number of sanitation facilities (with associated services) near one’s
residence or place of work must be sufficient.
 Facilities may be individual and/or shared.
Physical Accessibility  Sanitation facilities must be reliable.
 Sanitation facilities must always be accessible.
 Sanitation facilities must have a reasonable waiting time.
 Sanitation facilities must have a safe and convenient path for all.
 The technology adopted by sanitation facilities must be user-friendly.
Quality/Safety  Sanitation facilities must be technically safe (i.e., with stable and sound
structures).
 Sanitation facilities must be hygienically safe (i.e., they prevent contact or
exposure to vectors, pathogens, and other transmitters of disease)
 Safe management and disposal of human urine and feces are practiced.
 The population must have access to water for bathing, handwashing, as
well as anal and genital cleansing.
 The female population must have adequate water for bathing,
handwashing, and menstrual hygiene.
Affordability  Access to sanitation facilities and services must be affordably priced for
users without limiting their capacity to acquire other basic goods and
services.

Acceptability  Sanitation facilities and services must be culturally acceptable.

 Sanitation services must ensure privacy.
 Acceptability in most cultures means building separate facilities for
women and men, especially in public places.

3.2.2.2 Access
The following KPIs measure access:  Percentage of non-HUCs with septage
service provision.
 Percentage of households with access
to improved facilities (safely managed, The ultimate goal of the sanitation
basic, limited); subsector is to achieve universal access to
safely managed sanitation facilities and
 Percentage of households practicing services by 2030. This means that at the
open defecation; household level, these facilities should
 Percentage of households with septic include, at the very least, a toilet and septic
tanks (on-site systems); tank to be considered as safely managed.

 Percentage of households with access While this is the long-term end goal, the
to septage collection services; subsector should also focus on eliminating
the lowest levels of sanitation access in the
 Percentage of households with access
short term. The most pressing sanitation
to a sewerage system;
concern in the country is to put an end to
 Percentage of households connected to unimproved sanitation and open defecation
a sewerage system; practices which, as of 2015, stood at 2.0
percent and 4.0 percent, respectively.
64  Percentage of HUCs with sewerage
Open defecation involves households that
service provision; and
have no access to any type of toilet facility, sewerage services protocols must be
and thus dispose of human feces monitored.
elsewhere. Unimproved sanitation involves
HUCs are required to establish sewerage
the use of pit latrines without slabs or
systems to cover at least 50.0 percent of
platforms, hanging latrines, or bucket
their urban core. The areas without
latrines. As defined in the sanitation service
sewerage and non-HUCs shall employ
ladder in Section 2.3.2, neither of these two
septage management.
practices hygienically prevents human
contact with excreta, or safely manages These baseline figures are very low and
excreta. Therefore, the construction of will likely reach only 67.0 percent for
sanitary toilets and septic tanks is an septage services and 23.0 percent for
urgent need in areas and regions where sewerage services by 2022. The targets
these numbers are high. under the NSSMP will require all LGUs to
have septage management programs and
Achievement of this goal shall be
all HUCs to have sewerage systems by
measured by the overall percentage of
2020.
households with access to an improved
sanitation facility. Meeting 100.0 percent of
this indicator in the short term will uplift
sanitation standards, and more importantly,
3.2.2.3 Service Quality
contribute to eliminating open defecation. The following KPIs measure service
To further complement this KPI, the quality:
percentage of households practicing open
 Morbidity rates due to water-related
defecation shall also be measured, to not
illnesses and diseases;
only reflect the increase and improvement
of sanitation facilities, but to also advocate  BOD removed from the ecosystem;
for positive change in current sanitation
 Volume of wastewater collected and
human practices and behavior.
treated; and
Basic sanitation, septage and effluent
 Treatment plant capacity utilization.
treatment, and sewerage systems must
therefore be monitored. The percentage of The impact of sanitation and wastewater
households with septic tanks determines management on health and the
the success of campaigns to improve basic environment must be monitored.
sanitation. This indicator includes all Any reduction in morbidity rates as a result
acceptable on-site treatment system of effective control and management of
alternatives as determined by DOH. The waterborne diseases should be monitored
baseline was 74.0 percent in 2015, and the and reported. This type of monitoring helps
targets are 97.0 percent by 2022 and 100.0 determine the general impact of poor WSS
percent by 2030. and helps influence the policy and decision
The percentage of households with makers who are in charge of overseeing
access52 to sewerage services must be priority budget allocations and project
distinguished from the percentage of assistance.
households that are connected to a Many factors affect the occurrence and
sewerage system. Measuring the latter spread of water-related diseases. Proper
determines the success rate of connecting hygiene and good sanitation contribute
52
“Access” is defined
households to the sewerage system, when significantly to the reduction of the
as having a service
available to users; for
available. incidence of disease. Studies show that the sewerage services, a
household has access
As of 2015, access to septage provision of clean water alone can reduce if it can tap into a
management services was recorded at water-related deaths by 21.0 percent, good sewerage line that
17.0 percent nationwide, while access to sanitation alone by 37.0 percent, and leads to a treatment
facility. This number
sewerage services was registered at 12.0 handwashing alone by 35.0 percent. may be different from
percent. The percentage covered by Regarding impact on the environment, the
the number of those
that are actually
sewerage services was even lower at 3.0 objective is to reduce the volume of connected or have
percent. pollutants that enter the water ecosystem. actually tapped into the
systems.
The number of local governments (i.e., BOD, a unit of measure, can be used as a
HUCs and non-HUCs) complying with surrogate for the degree of organic
certain septage management and pollution of water, or the amount of 65
 dissolved oxygen needed by aerobic and compliance with standards. All access
biological organisms to break down organic figures (coverage) shall correspond to
matter that is present in wastewater. In 100.0 percent of service utilities that are
determining the targets for BOD reduced or compliant. A lower percentage for this
pollution intercepted, an individual is indicator would mean a lower number of
approximated to use an average of 100 WSPs that have worked to meet national
liters a day, which translates to about 80.0 standards.
percent of the water used converted to
Other indicators may be prescribed
wastewater. Wastewater typically has an
depending on the local conditions and
average BOD level of 200 mg/L and needs
priorities, but local proponents or
to be reduced to a maximum limit of 50 mg/
implementers must adhere to what is
L (current limit for class C water). The BOD
required by the national statistician and the
removed from the ecosystem is computed
lead agency. This is because reporting at
based on the projected population and the
the local level is elevated to a global level.
treatment efficiency of septic tanks pegged
at 40.0 percent and sewerage systems at
100.0 percent.
3.2.2.5 Results Matrix (Comprised
WSPs must monitor the volume of of Existing and New KPIs)
collected and treated wastewater and its
impact on the capacity utilization of the Four areas measure the quality of service
treatment facility. This indicator must delivery and performance standards of
determine the service quality provided by sanitation services. The three key result
the wastewater management or sanitation areas are access, service quality, and
program. For start-up treatment facilities, sustainability. (The fourth is finance, which
capacity utilization starts low but gains is discussed separately.)
volume over the first year and slowly An initial survey using the specified
reaches maximum capacity towards the indicators is needed to establish the
end of the design program cycle (lasting baseline conditions before interventions
three to five years). are done. Service delivery standards and
performance for sanitation services are
specified for the three program areas:
3.2.2.4 Sustainability basic (on-site) sanitation services, septage
The indicator for sustainability is the management services, and sewerage
percentage of service utilities that comply systems.
with national standards for sanitation (e.g., For each category, the laws, regulations,
those set by DENR, DOH, and LGUs). and SDG guidelines are specific in terms of
Compliance with policies, guidelines, and the water utilities to be covered and the
local ordinances ensures the following: periods during which they should be
covered. The fourth category includes
 tasks are performed according to other wastewater treatment methods
standards; pertaining to non-domestic wastewater and
 safeguards are established and wastewater from non-point sources, which
followed; will require further research and new policy
guidelines.
 residuals are properly managed; and
Regarding the quality of service, the DOH
 reliable and verifiable records are in and DENR will be the lead agencies tasked
place to check compliance regarding all
The targets correspond to the volume of programs and projects of LGUs and the
wastewater managed in a year. private sector, and adherence of other
government agencies to sanitation
The volume capacity of treatment plants guidelines.
varies and cannot be readily compared
with each other. The said capacity shall The DOH will prescribe basic sanitation
represent the volume capacity that was programs, which will focus on outlawing
processed by a facility in observance of unsanitary facilities (e.g., hanging latrines,
bucket latrines, floating latrines, and
66
latrines without slab covers) and open DOH will also work with DENR to check
defecation as well as provide guidance in adherence to the revised effluent standards
recommending strategies and local policy regardless of technology or system
formulation (e.g., microfinancing supported employed. Future guidelines and
by a strong behavioral change administrative orders will be developed to
communication program). DOH will provide more guidance in developing
continue to promote the use of the programs and projects at the local level.
Operational Manual on the Rules and Health risks and environmental impacts will
Regulations Governing Domestic Sludge be accounted for in future guidelines and
and Septage for developing and managing policies.
septage management programs.
Table 30 shows the proposed benchmarks
DOH will work with other government to guide local governments and service
agencies on sanitation projects. It will providers as to the targets for the next four
coordinate with DPWH in developing years according to the three areas.
operational guidelines governing planning
and managing sewerage services and
programs.

Table 30: Proposed Benchmarks for the Sanitation Sector

Key Performance Indicator Source of 2015 2022 Target 2030
Data Baseline Target
Percentage of households with access DOH/PSA 94.0% 100.0% 100.0%
to improved facilities
Percentage of households practicing DOH/PSA 4.0% 0.0% 0.0%
open defecation
Percentage of households with septic DOH/PSA 74.0% 97.0% 100.0%
tanks (on-site system)
Percentage of households with access DOH/PSA 17.0% 69.0% 100.0%
to septage collection services
Percentage of households with access DOH/PSA 12.0% 23.0% 60.0%
to a sewerage system
Percentage of households connected DOH/PSA 3.0% 20.0% 50.0%
to a sewerage system
Percentage of HUCs with sewerage DOH/PSA 53.0% 94.1% 100.0%
service provision
Percentage of non-HUCs with septage DOH/PSA 0.7% 61.2% 100.0%
service provision
Percentage of WSPs complying with LGU/DENR- 17.0% 67.0% 100.0%
national standards for sanitation (e.g., EMB/DOH
DENR, DOH, and LGUs)

Volume of BOD removed from the LGU/DENR- 65.40 233.20 514.10

ecosystem,53 in tons (T) EMB/DOH
Volume of wastewater collected and LGU/DENR- 2.95 3.32 3.81 53
In addition to
treated, in tons (T) EMB/DOH reduced BOD content
of wastewater released
Treatment plant capacity utilization LGU/DENR- For septage and sewerage treatment to the environment,
EMB/DOH facilities, percent utilization starts high after water quality of
the first year and reaches full capacity effluents must also
comply with the
towards the end of the 3–5 year cycle. minimum standards
provided under DENR
Administrative Order
No. 2016-08 (Water
Quality Guidelines and
General Effluent
Standards of 2016).

67
 4
Priority Reforms,
Programs, and Activities
4.1 Policy Directions
“The primary strategy for the water resources sector is to
address its fragmented structure through the creation of an
apex body and the formulation of master plans that will foster
coordinated efforts across the country.” —PDP 2017–2022

4.1.1 Philippine Development surface water source for critical areas

according to prescribed standards;
Plan 2017–2022
 Use eco-efficient water infrastructure
The PDP has been clear in addressing the to address water demand and supply
issues and challenges faced by the WSS mismatch; and
sector. The following key development
plans are listed under water resources:  Explore measures to promote efficient
water utilization.
 Create an apex body to address the
fragmented structure of the water In terms of development plans for the WSS
resources sector; sector:

 Create master plans that will foster  Pursue institutional reforms to

coordinated efforts across the country; encourage and guide investments in
WSS;
 Enable the apex body to
institutionalize a science-based river  Create an independent economic
basin approach that integrates the regulatory body for the WSS sector for
IWRM principles; transparent and consistent regulation;

 Enable NWRB and NEDA to strengthen  Establish a URAF with a definite scope
coordination and linkages with partner and streamlined process to consolidate
institutions54 across the different and make more accessible all available
subsectors towards achieving adequate financial resources to support WSS
access and sustainable water resources projects;
management;  Prepare a WSS master plan to guide
 Enable the government to enhance the concerned IAs to attain universal access
54 capacities of concerned entities in in the sector;
LGUs, national
government agencies, developing and managing water-related  Support plans to broaden the scope of
GOCCs, NGOs, private projects;
investors, and the the NSSMP55 to improve the response
academe.
 Expedite the processing of water from LGUs and WDs;
55
Proposed measures
can include creating permits by deputizing and capacitating  Enable the government to assist WDs
septage projects, local or regional agents; in expanding the coverage of reliable
expanding eligibility,
which will cover other  Review and strengthen existing laws water service at affordable rates and
cities and
and regulations on water resources; reducing NRW while ensuring
municipalities, and
allowing WDs to economically viable operations; and
directly apply for the
 Prioritize
surface water source
grant. development for water-critical areas;  Ensure water security in water-critical
areas and NCR by:
 Incorporategroundwater recharge
68 system in the development of the  developing new water sources;
  protecting watersheds critical to existing and being the single entity that will be in charge of the
potential water sources; overall policy-making, planning, programming, and
 exploring technologies in water supply; management of the country’s water resources. It will
 expanding sewerage and sanitation coordinate, monitor and evaluate sector
infrastructure;56 and performance and take appropriate action as
 maximizing and maintaining Angat Dam and all needed.
its accessory structures.
The apex body will also pave the way for an
integrated and coordinated planning and
4.1.2 Creation of an implementation of programs and projects that
promote synchronized, sustainable and science-
Apex Body based management of the country’s water
The PDP identified the creation of an apex body for resources that would address the imbalance in
the water supply, sewerage and sanitation subsectors water resource utilization, reduced water
as a primary strategy to address the fragmented availability, declining water quality, recurrent
structure and uncoordinated efforts of government flooding, and other water-related issues in many
units and agencies across the country. The continued parts of the country.
overlapping and fragmented management and
regulation of water resources and services hinder the House Bills Filed
enactment and implementation of comprehensive, Several house bills (HB) proposed the creation of
integrated and doable long-term solutions to decades- an apex body (e.g., bearing the names “Department
old sector issues and attain universal access targets. of Water”, “Department of Water
The apex body shall address the fundamental Resources” (DWR), or “Department of Water
governance and institutional issues of the sector by Irrigation, Sewage, and Sanitation Resource

Table 31: House Bills Filed for the Creation of an Apex Body from 2013-2018
House Date Filed
Bill in
Full Title Status
(HB) Congress
No.
HB An Act Rationalizing the 1 July  Referral to the Committee on Government Reorganization
38 Resource Management of the 2013 on 23 July 2013
Water Sector, Creating the
 Secondarily referred to the Committee on Public Works
Department of Water, Sewage,
and Highways
and Sanitation, and for other
purposes
HB An Act Creating the National 30 June  Referral to the Committee on Government Enterprises
221 Water Resources Management 2016 and Privatization on 26 July 2016
Authority and Appropriating
Funds Therefor
HB An Act Rationalizing the 3 August  Referral to the Committee on Government Reorganization
2457 Resource Management of the 2016 on 10 August 2016
Water Sector, Creating the
 Secondarily referred to the Committee on Public Works
Department of Water, Sewage,
and Highways
and Sanitation, and for other
purposes
HB An Act Creating the DWR and 8 February  Referral to the Committee on Government Reorganization
4955 Services and Appropriating 2017 on 15 February 2017
Funds therefor
 Secondarily referred to the Committee on Public Works
and Highways
HB An Act Creating the 7 August  Referral to the Committee on Government Reorganization
8068 Department of Water, 2018 on 21 September 2018 56
Including
Irrigation, Sewage and
 Secondarily Referred to the Committee on Public Works detention
Sanitation Resource
and Highways ponds for
Management, defining its control of
Powers and Functions,  Previous Committee Referrals: Primarily Referred to discharges
Appropriating Funds therefor, Government Enterprises and Privatization on 8 August
and for other purposes 2018
 Secondarily Referred to the Committee on Public Works 69
and Highways on 8 August 2018
 Management”). Table 31 briefly describes  It shall be guided by the IWRM
the house bills filed from 2013 to 2018. framework, address climate risks, and
ensure sustainability of natural
4.1.3 Creation of an ecosystem functions and services; and
Independent Economic  It shall seek to improve water
conservation, increase system
Regulatory Body efficiencies, and optimize the use of all
freshwater in the country including
The creation of an independent economic
groundwater, surface water, rainwater,
regulatory body shall address the runoffs, floods, treated wastewater, and
fragmented, poorly enforced, and low- stormwater and urban drainage to meet
coverage regulatory regime in the WSS various needs.
sector. This single entity shall consolidate
The DWR is to be composed of:
the economic regulatory powers of various
water agencies into one national body that  The Department Proper;
shall have the power to grant and revoke
licenses, as well as the authority to set  Attached agencies namely, LWUA,
standards and targets for both private and MWSS, National Irrigation Administration
public water utilities. (NIA), Laguna Lake Development
Authority (LLDA), and any other agency
The proposed measure seeks to achieve
exercising water resources management,
the following objectives:
conservation, and protection functions
 Achieve universal access to improved
that the president may order to be
water and sanitation services for the
transferred to the department; and
entire country through an effective
economic regulatory system that can 57
 Water Resources Regional Offices.
compel expansion and improvement of
service;
Meanwhile, the independent economic
 Encourage private sector participation in
regulator, will harmonize regulatory
the development of water and sanitation
practices, processes, fees, and the like to
services;
facilitate and rationalize the expansion,
 Protect the interests of consumers;
improvement, and efficient provision of
 Regulate wastewater tariffs (i.e.,
WSS services in the country. It will also
sewerage and septage management);
eliminate conflicts of interest through the
and
separation of economic regulation and
 Address the conflicts of interest inherent
operation functions of agencies vested with
in the current regulatory agencies.
these dual functions. Economic regulation
shall cover setting and compliance
4.1.4 Recent Initiatives monitoring of tariffs, coverage, technical
standards, and performance standards.
Similar bills, known as the Department of
Water Resources Act and Water
Regulatory Act have been drafted under
the guidance of NEDA. The proposed
mandate of the department is as follows:
 It shall be the primary agency
responsible for the comprehensive and
integrated water resources development
and management in the Philippines;
 It shall exercise such powers and
functions needed to review, revise,
57
As deemed harmonize, and integrate policies and
appropriate and regulations for conservation of water
necessary by the
Secretary resources and effective management of
water supply, sanitation, irrigation,
hydropower, flood control, stormwater
70 and urban drainage;
4.2 Key Reform Agenda (Soft Components)
Eight key reform agenda (KRA) have been and the contribution to AmBisyon Natin
identified prioritizing specific interventions 2040. Table 32 highlights the focus of each
for the WSS sector. These KRA are based KRA and Table 33 matches the issues and
on important issues and challenges challenges (per Section 2) with their
confronting the sector. Figure 29 illustrates corresponding KRA.
the PWSSMP results framework with the
eight KRA and the priority programs
supporting each other towards achieving
the WSS sector targets and commitments,

Societal Impact : AmBisyon Natin 2040 | PDP 2017–2022

Infrastructure Sector
Water Supply and Sanitation
PDP 2017–2022: WS=95.0%; SS=97.0% SDG 2030: WS=100.0%; SS=100.0%

Public Infrastructure Strategic Infrastructure Infrastructure Assets Research and Development

Spending Increased Implemented Preserved Intensified

Subsector Outcomes (PDP 2017–2022)

Infrastructure Sector

KRA 2: Strengthening the KRA 1: Establishing Effective KRA 3: Creating and Ensuring
Regulatory Environment WSS Sector Institutions Effective WSS Services

KRA 4. Balancing Water Supply and Demand KRA 6: Enabling Access to

KRA 5: Building Climate Resiliency Funding and Financing

KRA 7: Managing Data and Information

KRA 8: Driving Research and Development

Figure 29: PWSSMP Results Framework Diagram

Table 32: Eight Key Reform Agenda

Key Reform Agenda Focus

KRA 1: Addressing the fragmented WSS sector.

Establishing Effective WSS Sector Institutions

KRA 2: Regulating and managing water resources and

Strengthening the Regulatory Environment WSPs, including water tariffs.

KRA 3: Ensuring appropriate and sustainable operations

Creating and Ensuring Effective WSS Services of WSS service providers.
KRA 4: Managing and maximizing finite water resources
Balancing Water Supply and Demand with end-users.
KRA 5: Adapting to climate change.
Building Climate Resiliency
KRA 6: Improving availability and acquisition of funds /
Enabling Access to Funding and Financing financing for WSS services.
KRA 7: Ensuring availability and accessibility of reliable
Managing Data and Information WSS data.
71
KRA 8: Investing on research and innovations.
Driving Research and Development
 Table 33: Issues and Challenges of Each WSS Component by Key Reform Agenda
KRA Natural Resources Socioeconomic System Use of and Impact on
System Water

Efficiently Managed WSS Promoting Responsible Use and

Finite Water Socioeconomic Growth Balanced Demand and
Resources and Water Supply
Ecosystem

KRA 1:
Establishing
Effective WSS
Sector
Institutions

KRA 2:  Existing water

Strengthening sources become
the Regulatory insufficient as
Environment some dry up
resulting from
over extraction.
 Excessive
groundwater
extraction leads
to saline
intrusion and
groundwater-
related land
subsidence.
KRA 3:
Creating and
Ensuring
Effective WSS
Services

KRA 4:  Some potential  Increasing population  Water quality

Balancing Water water sources and economic growth deteriorates as a
Supply and are polluted or increase water demand result of unmanaged
Demand contaminated. and generated waste wastewater.
 The country may and wastewater.  There is inadequate
experience high or a lack of
water stress by awareness of and
2040. concern about the
 Rainwater which effects of
is a potential unmanaged waste
source is not and wastewater on
harvested and watersheds, water
stored for future sources, and water
use. ecosystems.
72
Administrative and Institutional Policies, Regulation and WSS Infrastructure
System Management

Enabling Administrative and WRR-related Policies, Sufficient, Responsive and

Institutional Arrangements Regulations and Management in Sustainable WSS
Place Infrastructure and Services

 There is no single body  WSS services and

overseeing and regulating infrastructure are poorly
the WSS sector. implemented, monitored and
managed.
 There have been no
directives or strategies with
which to translate PDP/SDG
targets and commitments
into local programs and
projects.
 NWRB does not have the  Policies and laws are poorly
appropriate institutional enforced and complied with.
structure to effectively  There is a lack of a cohesive
implement its mandate. policy framework.
 Several uncoordinated and  The issuance of water rights
inefficient regulatory is not properly regulated and
agencies for water exist. implemented.

 Some LGUs, WDs, and  WSS services are  Some water supply
other WSPs lack the inefficiently monitored and systems or structures are
capacity and capability to managed, while not properly designed
perform their obligation of infrastructure is poorly and constructed or do not
ensuring effective and maintained. undergo regular
adequate WSS services.  Sanitation interventions are maintenance.
not sustainable and not fully  There is inadequate or a
implemented. lack of infrastructure to
 Some WSPs have optimize available
inadequate O&M capability. resources, ensure water
 Some conflicts occur quality and sanitation, or
between LGUs and WDs. provide access to water
supply.
 Some WSPs are not
operational and
sustainable.
 Most WSPs have failed
to serve whole franchise
areas (barangays) and
meet norms and
standards.

73
 Table 33 (continued): Issues and Challenges of Each WSS Component by Reform Agenda
KRA Natural Resources Socioeconomic System Use of and Impact on
System Water

Efficiently Managed WSS Promoting Responsible Use and

Finite Water Socioeconomic Growth Balanced Demand and
Resources and Water Supply
Ecosystem

KRA 5:  Existing water  Increasing temperature

Building sources become increases water usage.
Climate insufficient as  Climate change
Resiliency some dry up increases the risk of
arising from waterborne diseases
sensitivity and and the transmission of
vulnerability malaria.
thereof to
weather patterns/
climate change.
 Water resource
management
becomes more
difficult owing to
rainfall variability
and extreme
weather events.
 Sea level rise
threatens to
contaminate
freshwater
sources.
KRA 6:
Enabling
Access to
Funding and
Financing

KRA 7:
Managing Data
and Information

KRA 8:  There is a lack of

Driving appropriate
Research and technologies, or
Development application or use
thereof, to optimize
the use of water
resources.

74
Administrative and Institutional Policies, Regulation and WSS Infrastructure
System Management

Enabling Administrative and WRR-related Policies, Sufficient, Responsive and

Institutional Arrangements Regulations and Management in Sustainable WSS
Place Infrastructure and Services

 Climate-resilient water
supply structures are too
inadequate to optimize
available resources,
ensure water quality and
sanitation, or provide
reliable access to water
supply.

 Water rates are too low in  Investments are

some areas and yield no insufficient.
cost recovery.  Funding is inadequate or
difficult to access; in case
funds are available, only
a few LGUs and WSPs
request access thereto.

 WSS data gathered by the  Available WSS data are

PSA are limited. insufficient to enable
planning, management, and
decision-making to proceed
well.
 There are no information
and monitoring systems
pertaining to access and
coverage. Baseline data on
WSS are inadequate.
 Water resources data are
not updated.
 WSPs data on NWRB's
Listahang Tubig are not
updated.
 Data on water quality and
sanitation are very limited.
 Access to potential  The sector is generally
technologies is restrictive. not in tune with new
technologies and
updated techniques.

75
 4.2.1 KRA No. 1: Establishing Follow-Through Actions
Effective WSS Sector Institutions The identified top priority actions will set the
cornerstone for the following actions:
Rationale and Objectives
 NEDA to request and accomplish the
KRA No. 1 establishes an effective WSS sector establishment of an OP order for all
institution through the following objectives: government buildings and new construction
 Create an apex body to address the projects, including those in resettlement
fragmented structure of the sector and areas, to have rainwater harvesters (RWHs);
institutionalize a science-based river basin require all LGUs to issue ordinances
approach that integrates the IWRM requiring the use of RWHs and storage
principles; facilities for all new developments within
their jurisdiction; and issue the use of water-
 Create master plans to foster coordinated efficient fixtures (1.8);
efforts and guide the concerned IAs to attain
 DILG and DOH to promote the formulation of
universal access in the sector; and
a rights-based provincial master plan as the
 Strengthen NWRB and NEDA’s coordination basis for the preparation of local/municipal
with partner institutions across different WSS development plans (1.6);
subsectors.
 LWUA to formulate verified business plans
Top Priority Actions and seek approval of its rationalized budget
increase for LWUA’s programs (1.5);
 NEDA to lead in addressing the institutional
fragmentation in the absence of an apex  NEDA and NWRB to map out the
body for the WSS sector that would organizational setup for NWMC (1.2.2);
coordinate development policies and plans
 NEDA and NWRB to come up with a
following the IWRM principles (1.10). Framework Plan (1.2.3);
Related to the above action, NEDA will then:
 NEDA and NWRB to review the capacity
 Coordinate issuance of administrative requirements of NWMC’s organization
guidelines, rules and regulations requiring (1.2.4);
all LGUs to adopt climate-resilient and
 NEDA will pursue the establishment of the
green technology, and promoting a rights-
NWMC, pending the creation of an apex
based planning approach (1.7);
body for the WSS sector (1.2); and
 Coordinate the mandate of all WSPs to
 NEDA to spell out the IRR for NWMC (with
prioritize water supply provision with
NWRB as Vice-Chairperson) (1.2.1).
integrated sanitation services (1.3); and
The culmination of this KRA is the Creation of
 Develop an advocacy and communication
an apex body for the WSS sector. (1.11).
plan to garner support for the prioritization
of the sector’s policy reforms and
investment requirements (1.4).
4.2.2 KRA No. 2: Strengthening
The following are also considered top priority
for this KRA: the Regulatory Environment
 NEDA to lead the representation at OP to Rationale and Objectives
issue the EO establishing the National
KRA No. 2 aims to strengthen the existing
Water Management Council (NWMC) (1.9); regulatory environment consistent with the
and PDP through the following objectives:
 NEDA to identify champions in the Upper
 Pursue institutional reforms to encourage
and Lower Houses to sponsor the creation
and guide investments in the WSS sector;
of an apex body for the WSS sector and
support the deliberations based on the  Create an independent economic regulatory
Executive Version (1.1). body for the WSS sector for transparent and
consistent regulation;

76
 Expedite the processing of water permits by and CPCs to private operators (2.7.1);
deputizing and capacitating local or regional  Review existing water permits and
agents; and CPCs to weed out speculators, and
 Review and strengthen existing laws and check and verify water rights (i.e.,
regulations on water resources. volume granted should not exceed
volume required); NWRB to require the
Top Priority Actions following in water permit applications:
 NEDA to identify champions in the Upper Memorandum of Agreement (MOA) with
and Lower Houses to sponsor the creation the WD for private bulk water supplier
of an apex body for the WSS sector and an (intending to sell to WD), and
independent economic regulator for WSS, Sangguniang Bayan (SB) resolution (for
and support the deliberations based on the LGU level CPC) (2.7.2); and
Executive Version (2.1).
 Review water permits granted to NIA to
 LWUA to strengthen its enforcement of free up water sources for water supply
economic regulations, especially on (2.7.3).
service expansion (2.9), which will require
Follow-Through Actions
the following sub-tasks:
The follow-through actions for this KRA to
 NEDA to review and improve the NEDA
ensure sustained development are the
JV Guidelines to be responsive to WD
following:
conditions (with considerations on the
Local Water District Manual on  LWUA, NWRB, and MWSS-RO to
Categorization, Re-Categorization and capacitate and increase its tariff review staff
Other Related Matters [LWD-MaCRO]) (2.5);
(2.2); and  DILG to issue a Memorandum Circular to
 NWRB, LWUA, and DILG to review LGUs to be guided by tariff setting
current cost recovery framework and methodologies for water supply and
tariff setting methodologies (WDs, LGU- wastewater management services (2.11);
run water utilities, private sector) to and
cover sanitation services (2.3).  NWRB to establish benchmarking system
 DILG to issue guidelines for LGUs to adopt results (2.8b).
a cost-based methodology that will The milestone of this KRA is the Creation of
promote financial sustainability (2.4), which the Water Regulatory Commission (WRC)
will also require: (2.10).
 NWRB, LWUA, and DILG to review
current cost recovery framework and
tariff setting methodologies (WDs, LGU- 4.2.3 KRA 3: Creating and
run water utilities, private sector) to
Ensuring Effective WSS Services
cover sanitation services (2.3).
 NWRB to continue updating its data in Rationale and Objectives
Listahang Tubig (2.8a) with the following KRA No. 3 focuses on interventions for WSPs
sub-task: and service providers. It aims to address the
 NWRB to assess the quantity and issues and challenges that hinder the effective
quality of all water resources (2.6). delivery of WSS services to its target
beneficiaries and franchise areas.
 NWRB to coordinate the review and
assessment for existing guidelines for KRA No. 3 ensures effective and sustainable
issuing water permits and Certificates of WSS services with cost-efficient and well-
Public Convenience (CPCs) of NWRB and designed WSS structures, and adequate
NIA (2.7). The pre-requisite actions for institutional capability to efficiently operate and
which are as follows: maintain WSS systems. This area proposes
the following measures:
 Review and rationalize NWRB
guidelines for granting of water permits

77
  Enable the government to enhance the  Compile a compendium of reference
capacities of concerned entities in materials, toolkits, knowledge products
developing and managing water-related for planning, project development, utility
projects; reform, etc. (3.8.2).
 Support plans to broaden the scope of the Follow-Through Actions
NSSMP to improve the response from LGUs
The follow-through actions are based on the
and WDs;
identified priority actions:
 Assist WDs by expanding the coverage of
 LWUA to set KPI targets for service
reliable water service at affordable rates and
by reducing NRW while ensuring coverage, performance, and financial
economically viable operations; and sustainability (3.2b); and
 DILG to develop and conduct a pilot
 Expand and upgrade sewerage and
implementation of a business/
sanitation infrastructure.
management model where government
Top Priority Actions and CBOs enter a partnership/
 LWUA to classify at what reform stage the arrangement to operate and maintain a
WDs are (i.e., critical, recovery, stable, and water utility (3.5).
expansion) (3.2a);
 LWUA to assess the viability of non-
4.2.4 KRA No. 4: Balancing
operational WDs towards their
operationalization (3.3); Water Supply and Demand
 NWRB to capacitate WDs and LGU-run Rationale and Objectives
WSPs on tariff setting and formulation of
KRA No. 4 focuses on interventions in
business plans (3.7);
addressing water scarcity and managing the
 DILG to evaluate the effectiveness of other finite water resources with end-users. It
programs, especially those directed at the balances demand and supply while
poor and waterless municipalities, in safeguarding the water ecosystem through the
accelerating access to WSS services (e.g., following measures:
SALINTUBIG, Local Government Support
 Explore policies and projects to promote
Fund–Assistance to the Municipalities
efficient water utilization;
[LGSF-AM], and other programs for WSS-
related CBOs) (3.1);  Prioritize surface water source development
for water-critical areas;
 DILG to put up central management
systems (develop a template on how LGUs  Incorporate groundwater recharge systems
could come up with this setup) (3.6a); in the development of surface water sources
 DILG to keep BWSAs (LGU responsible for for critical areas wherever possible and in
technical standards) (3.6b); accordance with prescribed standards;

 DILG to encourage the operation of WSPs  Use and design eco-efficient water
as economic enterprises by LGUs and/or infrastructure to address any mismatch
with private partners (3.4); and between water demand and supply; and

 DILG, DOH, and LWUA to conduct  Develop new water sources to protect
capacity needs assessment of WSPs and watersheds that are critical to existing and
LGUs within their respective jurisdictions potential water sources.
and prepare training/mentoring programs
internally or in partnership with other
service providers (3.8). This will require Top Priority Actions
NEDA to:  DILG and LWUA to encourage WSPs
 Lead the preparation of the capacity implementation of NRW reduction
development agenda for the national programs (leak detection) to achieve
agencies involved in WSS activities standard performance improvement
(3.8.1); and program (4.3), which will require:

78
  WSPs to control and establish district RBOs and Watershed Councils to
metered areas (DMAs) and install protect and rehabilitate the watersheds
mother meters (4.6). within their areas following the IWRM
 NEDA to coordinate issuance of principles (4.5).
administrative guidelines, rules and
regulations requiring all LGUs to require
green technology (4.9); 4.2.5 KRA No. 5: Building
 NWRB to conduct resource assessment Climate Resiliency
and recommend which areas should shift
Rationale and Objectives
from groundwater to surface water sources
(4.4). The following are identified sub-tasks KRA No. 5 focuses on interventions in
for NWRB: addressing issues and challenges related to
climate change. It intends to build a climate-
 Rationalize water permit system (4.4.1);
resilient WSS sector through the following
 Review existing water permits to weed measures:
out speculators (4.4.2); and
 Consider disaster risk reduction and climate
 Review and update pricing system for change adaptation strategies to ensure
resource extraction (4.4.3). climate-resilient facilities; and
 NWRB to develop and implement a  Enable the government to enhance the
communication strategy for water demand capacities of concerned entities in
management (WDM) and wastewater developing and managing water-related
management (4.7). projects.
Follow-Through Actions Top Priority Actions
The following are subsequent actions from the  DPWH to revise the Referral Codes of the
top priority actions: National Building Code of the Philippines
 NEDA to request and accomplish the to include policies and standards for water
establishment of an OP order for all efficiency in building design/construction.
government buildings and new (5.6);
construction projects, including those in  DPWH to issue and require design
resettlement areas, to have RWHs; standards, guidelines and specifications for
require all LGUs to issue ordinances climate-resilient hydraulic structures (5.8);
requiring the use of RWHs and storage
 DPWH to issue a Department Order
facilities for all new developments within
requiring retention/retarding basins for
their jurisdiction; and issue the use of
flood control and drainage systems (5.2);
water-efficient fixtures (4.2);
and
 NWRB, LWUA, and DILG to initiate shift
 NEDA to coordinate issuance of
to surface water and bulk water
administrative guidelines, rules, and
development (4.8);
regulations requiring all LGUs to require
 NWRB to strengthen implementation of green technology (5.4).
resource management and allocation of
Follow-Through Actions
water resources policies, systems, and
database (4.10); The identified top priority actions will reinforce
these follow-through actions:
 DILG and LWUA to identify an award
and recognition program for good  WSPs to design WSS infrastructure
performing WSPs(4.11); based on the DPWH Design Guidelines,
 LWUA and DILG to provide rewards for
Criteria and Standards and Standard
best performing WSPs (4.1); and Specifications for climate-resilient
hydraulic structures (5.1b);
 Enter into co-management agreements
 NEDA to request the establishment of
with other agencies, LGUs, and multi-
stakeholder organizations such as an OP Order for all (National

79
 Government Agencies [NGAs] and fundamental criteria for allocating
LGUs) government buildings and resources (6.1):
facilities to utilize green technologies, a. Poverty incidence;
including groundwater infiltration (5.3);
b. Level of access; and
 NEDA to review all major WSS
c. Incidence of waterborne diseases.
proposed projects to check if climate
considerations were already integrated Prior to this, NEDA is expected to:
(5.7);  Establish the URAF Technical Working
 LWUA and DILG to require WSPs to Group (TWG) to be the focal technical
prepare WSS Emergency Response team that will implement URAF; draft the
Plans, and to coordinate with the LGU implementing guidelines of the URAF;
on the development of their Disaster and develop an investment program to
Risk Reduction and Management achieve SDG 6 targets (6.1.1); and
(DRRM) and Contingency Plans (5.5);  Develop standard appraisal tools such
 LWUA and DILG to ensure the as a viability gap funding (VGF) model
installation of RWHs and storage for rationalizing national government
facilities (5.10); grants (6.1.2).
 DPWH and WSPs to construct new Follow-Through Actions
WSS infrastructure in low-risk areas
The follow-through actions for this KRA are as
(5.1a); and
follows:
 DPWH to ensure implementation of
 NEDA to build the capacity of national
climate-resilient hydraulic structures and
institutions to effectively carry out
retention/retarding basins for flood
mandates and new roles under the
control and drainage systems (5.9).
URAF (6.5); and
 DOF and DBM to support budget
4.2.6 KRA No. 6: Enabling requirements (6.6).
Access to Funding and Financing
Rationale and Objectives 4.2.7 KRA No. 7: Managing Data
KRA No. 6 focuses on interventions geared and Information
towards the improvement of access to funding
and financing for WSS services through the
Rationale and Objectives
following: KRA No. 7 focuses on interventions in
addressing issues and challenges related to
 Establish a URAF with a definite scope and
availability, accessibility, reliability, and use of
streamlined process to consolidate and offer
WSS data and information. It ensures the
financial resources to WSS projects.
availability and accessibility of reliable and
Top Priority Actions sound WSS data for planning, programming,
and policy formulation, consistent with the
 LWUA to review and rationalize
PDP 2017-2022.
government financing policies to
harmonize with URAF principles (6.2); Top Priority Actions
 DPWH to adopt the URAF principles for  Develop database of WSS information
the inclusion of funding and coverage of system that can be used for strategic
NSSMP (6.4); planning, policy formulation, program/
 DOF to develop and recommend for project development, and M&E (7.8);
adoption policies to crowd-in PFIs (6.3);  NWRB and NEDA to develop and deploy a
and comprehensive WSS management
 NEDA to pursue the implementation of the information system (MIS) (7.3);
URAF in the sector in accordance with the  NWRB and NEDA to develop and
PWSSMP. URAF has the following streamline programs for the establishment

80
 of baseline data (e.g., pertaining to SDG,
coverage, safely managed sanitation
services, and other relevant indicators)
Top Priority Actions
(7.4);  NEDA to promote the conduct of research
 NEDA to develop communication strategy and development studies based on priority
for the sector development plans and research and development agenda (i.e., tie-
programs (7.6), which will also require up with academe, WSS partners, and
NEDA to: experts) (8.3); and
 NWRB to formulate research and
 Facilitate an inter-agency discussion on
development agenda based on priority
the communication strategy for the
needs of key partner agencies and
programs of NWRB, DILG, DOH, and
stakeholders. The agenda should include,
LWUA (7.5).
among others, technology on lowering
 NEDA, with support from agencies, to energy costs and increasing water
integrate a database for the WSS sector efficiency; sanitation technology options for
that shall act as a repository of all WSS challenging contexts (e.g., high water
data (7.2). This action has the following table, flood-prone, etc.); low-cost and
sub-tasks: decentralized septage systems; and
 Formulate guidelines and framework(s) policies such as raw water pricing and
for the harmonization and integration of tradeable water regime (8.1).
WSS data (7.1);
Follow-Through Actions
 NWRB and NEDA to link the data
The identified priority actions will justify the
repository with PSA (7.2.1);
follow-through action:
 NWRB and NEDA to identify official/
 Create a Research and Development
credible sources of data such as PSA,
Division under the envisioned NWMC
PAGASA, etc. (7.2.2); and
Planning Department with the immediate
 NWRB and NEDA to map out current task of formulating the WSS research
sources of WSS data such as PWSSMP and development agenda based on
database, NWRB Listahang Tubig, WD needs (8.2).
data from LWUA, water supply-related
data from DILG, and sanitation-related
data from DOH and DPWH (7.2.3). 4.2.9 Other Actions
Follow-Through Actions The KRA Action Plan of the PWSSMP also
The identified priority actions will justify the identified other actions that will aid in achieving
follow through action: the goal of each KRA, albeit relegated into
lower priorities. These are presented in
 NWRB, DILG, DOH, and LWUA to
Chapter 4.3.
develop IEC programs for their
respective advocacies. (7.7)

4.2.8 KRA No. 8: Driving

Research and Development
Rationale and Objectives
KRA No. 8 focuses on interventions related to
research and development, innovative
solutions, technologies, or policies that restrict
the use of potential technologies concerning
WSS. It explores new technologies in water
supply.

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 4.3 Key Reform Agenda (KRA) Action Plan
Simultaneous with the implementation of PWSSMP and investment
program are various activities and actions identified in the eight
KRA. The action plan and corresponding action tree for the
respective KRA are presented below.

KRA 1: Establishing Effective WSS Sector Institutions

Support
Key Actions Driver Timeline
Agencies

A. Priority Actions
1.1 Identify champions in the Upper and Lower Houses to NEDA NWRB, 2019–
sponsor the creation of an apex body for the WSS sector LWUA, DILG, 2020
and support the deliberations based on the Executive DPWH, DOH
Version.
1.2 Pursue the establishment of the NWMC pending the NEDA NWRB, DOH, 2020
creation of an apex body for the WSS sector: DILG
1.2.1 Spell out the IRR for NWMC (with NWRB as Vice-
Chairperson);
1.2.2 Map out the organizational setup for NWMC (NWRB);
1.2.3 Come up with a Framework Plan; and
1.2.4 Review the capacity requirements of NWMC’s
organization.

1.3 Coordinate the mandate of all WSPs to prioritize water NEDA DILG, LWUA, 2019–
supply provision with integrated sanitation services. LGUs, DOH, 2020
WDs, DPWH,
MWSS

1.4 Develop an advocacy and communication plan to garner NEDA NWRB, 2019–
support for the prioritization of the sector policy reforms and LWUA, DILG, 2020
investment requirements. DOH
1.5 Formulate verified business plans and seek approval for a LWUA NEDA, DBM 2020–
rationalized budget increase for LWUA’s programs. 2021

1.6 Promote the formulation of a rights-based provincial master DILG, DOH NEDA, LWUA, 2020
plan as basis for the preparation of local/municipal WSS NWRB, LMP, onwards
development plans. LPP, LGUs
1.7 Coordinate the issuance of administrative guidelines, rules, NEDA DILG, DPWH 2019–
and regulations requiring all LGUs to adopt climate-resilient 2020
and green technology, as well as promoting a rights-based
planning approach.

1.8 Request and accomplish the establishment of an OP order NEDA DPWH, 2019–
for all government buildings and new construction projects, HLURB 2020
including those in resettlement areas, to have RWHs;
require all LGUs to issue ordinances requiring the use of
RWHs and storage facilities for all new developments within
their jurisdiction; and issue the use of water-efficient
fixtures.

82
 Support
Key Actions Driver Timeline
Agencies

1.9 Lead the representation at the OP to issue an EO NEDA NWRB 2019–

establishing the NWMC. 2020
1.10 Address institutional fragmentation in the absence of an NEDA NWRB 2019–
apex body for the WSS sector that would coordinate 2021
development policies and plans following the IWRM
principles.
1.11 Create an apex body for the WSS sector. NEDA NWRB, 2020–
LWUA, DILG, 2021
DPWH, DOH

B. Other Actions
1.12 Establish a WSS Data Center. Apex Body DOH, LWUA, 2020–
(NWRB/ DILG, NWRB, 2021
NWMC/DWR); DPWH,
MWSS
NEDA
(interim)

1.13 Develop and conduct a pilot implementation of the LWUA, DILG, NEDA 2020–
integrated provision of WSS services in selected water DOH 2021
utilities.

1.14 Develop and conduct a pilot implementation a local WSS DILG NEDA, DOH 2020
governance framework that enables LGUs to realize their
obligation of ensuring access to WSS and where the LGUs
shall drive the effective provision of WSS services.
Consider the creation of a local WSS development office
that will help plan and coordinate WSS activities and
coordination at the local level with national agencies.

1.15 Develop a strategy and program that will prioritize NEDA LWUA, DILG, 2020
investments in far-flung and security risk areas. NAPC, and
selected LGUs
1.16 Come up with a Joint Memorandum Circular (JMC) on an NEDA DILG, DOH 2020–
integrated water and sanitation planning process at the 2022
local level (municipal) based on Local Sustainable
Sanitation Plan (LSSP) of DOH and Integrated Safe Water,
Sanitation and Hygiene (iWASH) of DILG in line with the
development of provincial masterplans and regional WSS

1.17 Recommend improvements/changes to certain LWUA NEDA, COA, 2021

governmental regulations (mainly Commission on Audit DBM, DENR,
[COA], DBM, DENR, and NWRB) that will enable WDs to NWRB
be run efficiently and effectively as commercial enterprises.
There are certain governmental regulations that hamper the
operational procedures of the WDs which could be
reviewed and streamlined.
1.18 Propose amendments to PD 198 and certain regulatory TBD TBD TBD
guidelines of various agencies that impact WD operations.

83
 KRA 1: Establishing Effective WSS Sector Institutions
Action Tree
FOLLOW-THROUGH ACTIONS

1.8 - NEDA to request and accomplish the

establishment of an OP order for all
government buildings and new
construction projects, including those in 1.6 - DILG and DOH to
resettlement areas, to have RWHs; require promote the formulation of
all LGUs to issue ordinances requiring the a rights-based provincial
use of RWHs and storage facilities for all master plan as basis for
new developments within their jurisdiction; the preparation of local/
and issue the use of water-efficient municipal WSS
fixtures. development plans.

1.7 - NEDA to coordinate 1.3 - NEDA to

issuance of administrative coordinate the
TOP PRIORITY ACTIONS

guidelines, rules and mandate of all WSPs

regulations requiring all LGUs to prioritize water
to adopt climate-resilient and supply provision with
Lead Agency: NEDA
green technology, and integrated sanitation
promoting a rights-based services.
Support NWRB, LWUA,
Agencies: DILG, DPWH, planning approach.
DOH, MWSS
Period: 2019–2021
1.10 - NEDA to lead in addressing the
institutional fragmentation in the absence
of an apex body for the WSS sector that
would coordinate development policies
and plans following the IWRM principles.

Legend:
- KRA Milestone
- Top Priority Actions

84
 1.11 - Create an apex body for the
WSS sector.

1.2.1 - NEDA to spell out the IRR for NWMC

(with NWRB as Vice-Chairperson)

1.2 - NEDA to pursue the establishment of

the NWMC, pending the creation of an apex
body for the WSS sector.

1.2.4 - NEDA
and NWRB to
1.5 - LWUA to formulate review the
verified business plans 1.2.2 - NEDA and 1.2.3 - NEDA
NWRB to map out and NWRB to capacity
and seek approval of its requirements of
rationalized budget the organizational come up with a
setup for NWMC. Framework Plan. NWMC’s
increase for LWUA’s organization.
programs.

1.4 - NEDA to develop an 1.9 - NEDA to lead the 1.1 - NEDA to identify
advocacy and representation at the OP to champions in the Upper
communication plan to issue the EO establishing the and Lower Houses to
garner support for the NWMC. sponsor the creation of
prioritization of the sector’s an apex body for the
policy reforms and WSS sector and
investment requirements. support the
deliberations based on
the Executive Version.

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 KRA 2: Strengthening the Regulatory Environment

Support
Key Actions Driver Period
Agencies

A. Priority Actions
2.1 Identify champions in Upper and Lower Houses to sponsor Apex body Legislative 2019–
the creation of an apex body for the WSS sector and an (NWRB/ champions, 2020
independent economic regulator for WSS, and support the NWMC/DWR), DILG, LWUA,
deliberations based on the Executive Version. NEDA NWRB,
MWSS-RO,
DPWH, DOH,
Economic
Zone
Authorities,
TIEZA
2.2 Review and improve NEDA JV Guidelines to be responsive NEDA LWUA, 2019–
to WD conditions (with considerations on the LWD- Philippine 2020
MaCRO). Association of
Water Districts
(PAWD)
2.3 Review current cost recovery framework and tariff setting NWRB, NEDA w/ 2020
methodologies (WDs, LGU-run water utilities, private LWUA, DILG selected
sector) to cover sanitation services. LGUs,
development
partners, CDA,
private sector
2.4 Issue guidelines for LGUs to adopt a cost-based DILG Not Applicable 2020
methodology that will promote financial sustainability.

2.5 Capacitate and increase its tariff review staff. LWUA, NEDA, DBM 2019–
NWRB, 2021
MWSS-RO
2.6 Assess the quantity and quality of all water resources. Apex body NEDA 2019
(NWRB/ onwards
NWMC/DWR)

2.7 Coordinate the review and assessment of existing NWRB NEDA, NWRB, 2019–
guidelines for issuing water permits and CPCs of NWRB LGUs, LWUA, 2020
and NIA. NIA,
Department of
2.7.1 Review and rationalize NWRB guidelines in regard
Agrarian
to the granting of water permits and CPCs to private
Reform (DAR)
operators.
2.7.2 Review existing water permits and CPCs to weed
out speculators, and check and verify water rights
(i.e., volume granted should not exceed volume
required); NWRB to require the following in water
permit applications: MOA with WD for private bulk
water supplier (intending to sell to WD), and SB
resolution (for LGU level CPC).
2.7.3 Review water permits granted to NIA to free up
water sources for water supply.

2.8a Continue updating Listahang Tubig. NWRB Not Applicable 2019–

onwards
2.8b Establish benchmarking system results. NWRB Not Applicable 2020

2.9 Strengthen its enforcement of economic regulations, LWUA NEDA 2019–

especially on service expansion. 2021

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 Support
Key Actions Driver Period
Agencies
2.10 Create the WRC. NEDA Legislative 2019–
Champions, 2021
DILG, LWUA,
NWRB,
MWSS-RO,
DPWH, DOH,
Economic
Zone
Authorities,
TIEZA
2.11 Issue Memorandum Circular to LGUs to be guided by tariff DILG LWUA, DOH, 2019–
setting methodologies for water supply and wastewater DPWH 2021
management services.

B. Other Actions
2.12 Submit Annual Data Report of all water utilities as input to Apex body DILG, LWUA, Annual
Annual Benchmarking Report of all WSPs. (NWMC/ CDA
DWR) /
NEDA/NWRB
(interim)

2.13 Formulate a policy on the imposition of fees or charges Apex body Not Applicable 2020
deemed necessary for water resources conservation and (NWMC/ onwards
protection, such as: DWR) /
NWRB
a. Polluter’s Fee, which shall be based on the net waste (interim)
load depending on the wastewater charge formula
pursuant to R.A. 9275 or the Clean Water Act;
b. Raw water price, determined by the Apex Body, which
shall take into account, the scarcity of water; and
c. Appropriate structures for payment of environmental
services.

2.14 Disseminate and monitor compliance of WSPs with Apex body Union of Local 2019
standards. (NWMC/ Authorities of onwards
DWR), DILG, the Philippines
LWUA, (ULAP),
NWRB, DOH LPP, LCP,
LMP
2.15 Publish all hearing decisions in NWRB website. NWRB Not Applicable 2019–
2020
2.16 Align WD business plans to KPIs. LWUA Not Applicable 2020–
2021
2.17 Continue LGU competitiveness awards and recognition DILG Not Applicable 2019
onwards
2.18 Conduct learning events to harmonize economic regulations TBD Not Applicable TBD
at the regional roundtable discussions (RTD) (sharing and
alignment).

2.19 Improve tariff formula to take into consideration WDM, small NWRB, DOF, NEDA 2019–
WSPs, poor communities, power cost adjustment, and LWUA, 2020
consumer price index (CPI). MWSS,
Independent
Regulatory
Body, WSPs

87
 KRA 2: Strengthening the Regulatory Environment
Action Tree
FOLLOW-THROUGH
ACTIONS

2.10 - Create the WRC. 2.5 - LWUA, NWRB,

and MWSS-RO to
capacitate and
increase its tariff
review staff.

Lead Agencies: NEDA, LWUA,

TOP PRIORITY ACTIONS

NWRB, DILG
2.1 - NEDA to identify 2.9 - LWUA to
Support MWSS-RO, champions in Upper and strengthen its
Agencies: DPWH, DOH, Lower Houses to sponsor enforcement of
Economic Zone the creation of an apex economic regulations,
Authorities, TIE- body for the WSS sector especially on service
ZA, NIA, DAR, and an independent expansion.
LGUs economic regulator for
WSS, and support the
Period: 2019–2021 deliberations based on the
Executive Version.

2.2 - NEDA to review and improve

NEDA JV Guidelines to be responsive
to WD conditions (with considerations
on the LWD-MaCRO).
SUB-TASKS

Legend:

- KRA Milestone
- Top Priority Actions

88
2.11 - DILG to issue a
Memorandum Circular to
LGUs to be guided by
tariff setting 2.8b - NWRB to
methodologies for water establish benchmarking
supply and wastewater system results.
management services.

2.4 - DILG to issue 2.8a - NWRB to 2.7 - NWRB to coordinate

guidelines for LGUs to continue updating its the review and
adopt a cost-based data in Listahang assessment of existing
methodology that will Tubig. guidelines for issuing
promote financial water permits and CPCs
sustainability. of NWRB and NIA.

2.3 - NWRB, LWUA, and 2.6 - NWRB to 2.7.1 - Review and rationalize
DILG to review current assess the quantity NWRB guidelines for granting of
cost recovery framework and quality of all water permits and CPCs to private
and tariff setting water resources. operators.
methodologies (WDs,
LGU-run water utilities, 2.7.2 - Review existing water
private sector) to cover permits and CPCs to weed out
sanitation services. speculators, and check and verify
water rights (i.e., volume granted
should not exceed volume
required); NWRB to require the
following in water permit
applications: MOA with WD for
private bulk water supplier
(intending to sell to WD), and SB
resolution (for LGU level CPC).

2.7.3 - Review water permits

granted to NIA to free up water
sources for water supply.

89
 KRA 3: Creating and Ensuring Effective WSS Services

Support
Key Actions Driver Period
Agencies

A. Priority Actions

3.1 Evaluate the effectiveness of other programs, especially DILG NEDA, LWUA 2020–
those directed at poor and waterless municipalities, in 2021
accelerating access to WSS services (e.g., SALINTUBIG,
LGSF-AM, and other programs for WSS-related CBOs).

3.2a Classify at what reform stage the WDs are (i.e., critical, LWUA NEDA, DILG, 2020–
recovery, stable, and expansion). DPWH, DOH, 2021
CDA, NGOs,
DBM
3.2b Set KPI targets for service coverage, performance, and LWUA NEDA, DILG, 2020–
financial sustainability. DPWH, DOH, 2021
CDA, NGOs,
DBM

3.3 Assess the viability of non-operational WDs towards their LWUA NEDA 2020–
operationalization. 2021

3.4 Encourage the operation of WSPs as economic enterprises DILG LGUs 2020–
by LGUs and/or with private partners. 2021

3.5 Develop and conduct a pilot implementation of a business/ DILG, select CDA, NEDA, 2021
management model where government and CBOs enter a LGUs LWUA, NGOs,
partnership/arrangement to operate and maintain a water development
utility. partners

3.6a Put up central management systems (develop a template DILG, LGUs NWRB 2020–
on how LGUs could come up with this setup). 2021

3.6b Keep BWSAs (LGU responsible for technical standards). DILG, LGUs NWRB 2020–
2021

3.7 Capacitate WDs and LGU-run WSPs on tariff setting and NWRB LWUA, DILG 2020–
formulation of business plans. 2021

3.8 Conduct capacity needs assessment of WSPs and LGUs DILG, DOH, NEDA 2020–
within their respective jurisdictions and prepare training/ LWUA 2021
mentoring programs internally or in partnership with other
service providers.

3.8.1 Lead the preparation of the capacity development

agenda for the national agencies involved in WSS
activities.
3.8.2 Compile a compendium of reference materials,
toolkits, knowledge products for planning, project
development, utility reform, etc.

90
 Support
Key Actions Driver Period
Agencies

B. Other Actions
3.9 Conduct a capacity needs assessment of LWUA and WDs. LWUA NEDA, DBM 2020–
2021

3.10 Develop and implement a responsive capacity-building LWUA NEDA, DBM 2020–
program for LWUA and WDs. 2021

3.11 Conduct a capacity needs assessment of selected LGUs, DILG CDA, NEDA 2020–
the regional water and sanitation (WatSan) hubs, and of the 2021
DILG.

3.12 Develop a capacity-building program for LGU-run water DILG CDA, NEDA 2020–
utilities and Regional WatSan Hubs, and study the needed 2021
reforms for DILG to enable it to respond to the needs of the
LGU-run water and sanitation utilities.

3.13 Study the feasibility of setting up Regional Training Centers NEDA LWUA, DILG, 2020–
for WDs and LGU-run water and sanitation utilities. CDA, regional 2021
WatSan hubs
3.14 Develop and implement capacity-building programs, DILG, LWUA, NEDA, CCC, 2019
including disaster risk reduction (DRR), designed for WSS DPWH, DBM, LGUs onwards
personnel and officials. Private Sector,
Office of Civil
Defense
(OCD),
Climate
Change
Commission
(CCC), DOH
3.15 For PPP: NROs, PPP Not Applicable 2020–
a. Formulate decision tools to guide WDs and LGUs to Center, LWUA 2021
determine appropriateness of PPP as a service
provision option.
b. Disseminate materials/templates for PPP project
development and procurement.
c. Develop guidelines for PPP contract management.

91
 KRA 3: Creating and Ensuring Effective WSS Services
Action Tree
FOLLOW-THROUGH
ACTIONS

3.2b - LWUA to set KPI targets for

service coverage, performance, and
financial sustainability.

3.2a - LWUA to 3.3 - LWUA to 3.7 - NWRB to

classify at what assess the viability capacitate WDs
TOP PRIORITY ACTIONS

reform stage the of non-operational and LGU-run

WDs are (i.e., WDs towards their WSPs on tariff
critical, recovery, operationalization setting and
stable, and formulation of
expansion). business plans.

Lead Agencies: DILG, LWUA,

NWRB, DOH

Support NEDA, DPWH, 3.8 - DILG, DOH, and LWUA to conduct capacity needs
Agencies: DBM assessment of WSPs and LGUs within their respective
jurisdictions and prepare training/mentoring programs
Period: 2020–2021 internally or in partnership with other service providers.

3.8.1 - NEDA to lead the preparation of the

capacity development agenda for the
national agencies involved in WSS
SUB-TASKS

activities.

3.8.2 - NEDA to compile a compendium of

reference materials, toolkits, knowledge
products for planning, project development,
utility reform, etc.

Legend:
- Top Priority Actions

92
 3.5 - DILG to develop and conduct a pilot implementation of business/management
model where government and CBOs enter a partnership/arrangement to operate
and maintain a water utility.

3.1 - DILG to evaluate the 3.6a - DILG to 3.6b - DILG to 3.4 - DILG to
effectiveness of other put up central keep BWSAs encourage the
programs, especially those management (LGU operation of
directed at the poor and systems responsible for WSPs as
waterless municipalities, in (develop a technical economic
accelerating access to WSS template on standards). enterprises by
services (e.g., SALINTUBIG, how LGUs LGUs and/or
LGSF-AM, and other could come up with private
programs for WSS-related with this setup). partners.
CBOs).

93
 KRA 4: Balancing Water Supply and Demand

Support
Key Actions Driver Period
Agencies

A. Priority Actions

4.1 Provide rewards for best performing WSPs. LWUA, DILG DPWH, DOH, 2019
LGUs onwards

4.2 Request and accomplish the establishment of an OP order NEDA DPWH, 2019
for all government buildings and new construction projects HLURB
including those in resettlement areas to have RWHs;
require all LGUs to issue ordinances requiring the use of
RWHs and storage facilities for all new developments
within their jurisdiction; and issue the use of water-efficient
fixtures.

4.3 Encourage WSPs implementation of NRW reduction DILG, LWUA LGUs, LWUA, 2019–
programs (leak detection) to achieve standard performance DILG, NWRB 2021
improvement program.

4.4 Conduct resource assessment and recommend which Apex body NEDA 2020–
areas should shift from groundwater to surface water (NWRB/ 2021
sources. NWMC/DWR),
LWUA, DILG
4.4.1 Rationalize water permit system.
4.4.2 Review existing water permits to weed out
speculators.
4.4.3 Review and update pricing system for resource
extraction.

4.5 Enter into co-management agreements with other DENR, RBOs, LGUs, NGOs, 2019
agencies, LGUs and multi-stakeholder organizations such LGUs RBOs, onwards
as RBOs and Watershed Councils to protect and watershed
rehabilitate the watersheds within their areas, following the management
IWRM principles. councils,
NWRB
4.6 Control and establish DMAs and install mother meters. WSPs LGUs, LWUA, 2019–
DILG, NWRB 2021

4.7 Develop and implement a communication strategy for NWRB NEDA, NWRB, 2019–
WDM and wastewater management. LWUA, DILG, 2020
DOH

4.8 Initiate shift to surface water and bulk water development. NWRB, NEDA 2020
LWUA, DILG

4.9 Coordinate issuance of administrative guidelines, rules, NEDA DILG 2020

and regulations requiring all LGUs to require green
technology.

4.10 Strengthen implementation of resource management and NWRB NEDA 2020

allocation of water resources policies, systems and
database.

4.11 Identify an award and recognition program for good DILG, LWUA NEDA 2020–
performing WSPs. 2021

94
 Support
Key Actions Driver Period
Agencies

B. Other Actions
4.12 Develop strategic WSS communication plans and DENR, LWUA, Not Applicable 2019–
information, education, and communication (IEC) MWSS, NEDA, 2021
campaigns targeting the public on the following: NWRB, WSPs,
DOH, DILG
a. Proper sanitation;
b. Water Demand Management (water efficiency and
water conservation), rainwater harvesting, reuse of
treated wastewater, reduction of NRW; and
c. Promotion of WSPs’ services, plans, and programs.

4.13 Strengthen and coordinate policy making and planning for Apex body Not Applicable 2020–
flood management by integrating stormwater/urban (NWRB / 2021
drainage as well as appropriate retention/retarding basins to NWMC / DWR)
help mitigate the detrimental and catastrophic effects of
flooding.

4.14 Develop encouraging conservation measures and/or LGUs, LWUA, Not Applicable 2019–
ordinance that will reduce per capita consumption. DILG, NWRB 2021

95
 KRA 4: Balancing Water Supply and Demand
Action Tree

4.1 - LWUA and DILG to provide rewards for best

performing WSPs.
FOLLOW-THROUGH ACTIONS

4.11 - DILG and LWUA to identify an

award and recognition program for good
performing WSPs.

4.2 - NEDA to request and accomplish the

establishment of an OP order for all government
buildings and new construction projects
including those in resettlement areas to have
RWHs; require all LGUs to issue ordinances
requiring the use of RWH and storage facilities
for all new development within their jurisdiction;
and issue the use of water-efficient fixtures.

4.3 - DILG and LWUA to 4.9 - NEDA to

TOP PRIORITY

Lead Agencies: NEDA, DILG,

encourage WSPs coordinate issuance of
ACTIONS

LWUA, NWRB
implementation of NRW administrative
Support LGUs, DOH
reduction programs (leak guidelines, rules and
Agencies:
detection) to achieve regulations requiring
Period: 2019–2021 standard performance all LGUs to require
improvement program. green technology.

4.6 - WSPs to control and establish

DMAs and install mother meters.
SUB-TASKS

Legend:
- Top Priority Actions

96
 4.5 - Enter into co-management
agreements with other agencies,
LGUs and multi-stakeholder
organizations such as RBOs and
Watershed Councils to protect and
rehabilitate the watersheds within their
areas following the IWRM principles.

4.10 - NWRB to strengthen

implementation of resource management
and allocation of water resources policies,
systems, and database.

4.8 - NWRB, LWUA, and DILG to

initiate shift to surface water and bulk
water development.

4.4 - NWRB to conduct resource 4.7 - NWRB to develop and

assessment and recommend which implement a communication
areas should shift from groundwater to strategy for WDM and wastewater
surface water sources. management.

4.4.1 - Rationalize water permit system.

4.4.2 - Review existing water permits to

weed out speculators.

4.4.3 - Review and update pricing system for

resource extraction.

97
 KRA 5: Building Climate Resiliency

Support
Key Actions Driver Period
Agencies

A. Priority Actions

5.1a Construct new WSS infrastructure in low-risk areas. DPWH, WSPs DILG, LWUA, 2019
LGUs, DOH onwards

5.1b Design WSS infrastructure based on the DWPH Design DPWH, WSPs DILG, LWUA, 2019
Guidelines, Criteria and Standards and Standard LGUs, DOH onwards
Specifications for climate-resilient hydraulic structures.

5.2 Issue a Department Order requiring retention/retarding DPWH NEDA, DENR, 2019–
basins for flood control and drainage systems. NWRB 2020

5.3 Request the establishment of an OP Order for all (NGAs NEDA DENR, DILG, 2019–
and LGUs) government buildings and facilities to utilize CCC 2020
green technologies, including groundwater infiltration.

5.4 Coordinate issuance of administrative guidelines, rules and Apex body NEDA, DENR, 2019
regulations requiring all LGUs to (NWRB/ CCC, DOH,
require green technology. NWMC/DWR), DPWH
DILG

5.5 Require WSPs to prepare WSS Emergency Response LWUA, DILG OCD, CCC, 2019–
Plans, and to coordinate with the LGU on the development LGUs 2022
of their DRRM and Contingency Plans.

5.6 Revise the Referral Codes of the National Building Code of DPWH Not Applicable 2019
the Philippines to include policies and standards for water
efficiency in building design/construction.

5.7 Review all major WSS proposed projects to check if climate NEDA DPWH 2019
considerations were already integrated. onwards

5.8 Issue and require design standards, guidelines and DPWH NEDA 2020
specifications for climate-resilient hydraulic structures.

5.9 Ensure implementation of climate-resilient hydraulic DPWH Not Applicable 2020–

structures and retention/retarding basins for flood control 2021
and drainage systems.

5.10 Ensure the installation of RWHs and storage facilities. LWUA, DILG DPWH 2020–
2021

B. Other Actions

5.11 Develop risk mitigation measures for vulnerable WSS LGUs DILG, OCD, 2019
infrastructures in high risk areas (i.e., including conflict DOH onwards
areas).

98
KRA 6: Enabling Access to Funding and Financing

Support
Key Actions Driver Period
Agencies

A. Priority Actions

6.1 Implement the URAF in the sector in accordance with the NEDA DOF 2020
PWSSMP. URAF has the following fundamental criteria for
allocating resources:

a. Poverty incidence;
b. Level of access; and
c. Incidence of waterborne diseases.

6.1.1 Establish the URAF TWG to be the focal technical

team that will implement URAF; draft the
implementing guidelines of the URAF; and develop
an investment program to achieve SDG 6 targets.
6.1.2 Develop standard appraisal tools such as a VGF
model for rationalizing national government grants.

6.2 Review and rationalize government financing policies to LWUA NEDA, DOF 2019
harmonize with URAF principles.

6.3 Develop and adopt policies to crowd-in PFIs. DOF NEDA, GFIs 2019–
2020

6.4 Adopt the URAF principles for the inclusion of funding and DPWH NEDA Board, 2019–
coverage of NSSMP. DBM 2020

6.5 Build the capacity of national institutions to effectively carry NEDA DOF, DBM 2020
out mandates and new roles under the URAF.

6.6 Support budget requirements. DOF, DBM Not Applicable 2020

B. Other Actions

6.7 Put up regulations, for LGUs that are given grants, NEDA, GFIs, Not Applicable 2021
regarding KPIs and appropriate institutional setups to DILG
ensure that greenfield investments are sustainable.
Consider the initial investment by the national government
as capitalization, which is leveraged by external financing.

6.8 Have an appropriate policy with LWUA on debt overhang, NEDA, GFIs, Not Applicable 2021
have measures in place, such as suspending debt DILG
payments or a moratorium for not imposing penalties
(requiring WDs to have a balloon payment for them to be
able to borrow money to improve or expand their services).

6.9 Pursue Presidential issuance directing national government Apex body DILG, NEDA, 2022
and/or local government interventions in areas with high (NWRB / LWUA, DOH, onwards
poverty incidence, low level of access, and high incidence NWMC / OP, DENR
of waterborne diseases. DWR)

6.10 Review financing facilities with emphasis on its effective DOF, NEDA, Not Applicable 2020–
implementation. LWUA, GFIs, 2021
99
DILG
 KRA 5: Building Climate Resiliency
Action Tree

5.1a - DPWH and WSPs to

construct new WSS
FOLLOW-THROUGH ACTIONS

infrastructure in low-risk areas.

5.5 - LWUA and DILG to require
WSPs to prepare WSS Emergency
Response Plans, and to coordinate
with the LGU on the development
of their DRRM and Contingency
Plans.

5.1b - WSPs to design WSS infrastructure

based on the DPWH Design Guidelines,
Criteria and Standards and Standard
Specifications for climate-resilient
hydraulic structures.

5.6 - DPWH to revise the Referral

TOP PRIORITY

Lead Agencies: DPWH, NEDA Codes of the National Building Code

ACTIONS

of the Philippines to include policies

Support DILG, LWUA,
Agencies: DENR, NWRB and standards for water efficiency in
building design/construction.
Period: 2019–2020

Legend:
- Top Priority Actions

100
 5.9 - DPWH to ensure implementation of
climate-resilient hydraulic structures and
retention/retarding basins for flood control
and drainage systems.
5.10 - LWUA and DILG to
ensure the installation of
RWHs and storage
facilities.
5.7 - NEDA to review all major WSS proposed projects to
check if climate considerations were already integrated.

5.3 - NEDA to request the

establishment of an OP
Order for all (NGAs and
LGUs) government
buildings and facilities to
utilize green technologies,
including groundwater
infiltration.

5.8 - DPWH to issue and 5.2 - DPWH to issue a 5.4 - NEDA to coordinate
require design standards, Department Order issuance of administrative
guidelines and requiring retention/ guidelines, rules and
specifications for climate- retarding basins for flood regulations requiring all
resilient hydraulic control and drainage LGUs to require green
structures. systems. technology.

101
 KRA 6: Enabling Access to Funding and Financing
Action Tree
FOLLOW-THROUGH

6.5 - NEDA to build the capacity of

national institutions to effectively carry
ACTIONS

out mandates and new roles under the

URAF.

6.2 - LWUA to review 6.4 - DPWH to adopt

and rationalize the URAF principles
TOP PRIORITY

Lead Agencies: NEDA, DOF,

government financing for the inclusion of
ACTIONS

LWUA, DPWH
policies to harmonize funding and
Support DBM, DILG, with URAF principles. coverage of NSSMP.
Agencies: DOH

Period: 2019–2020
SUB-TASKS

Legend:
- Top Priority Actions

102
 6.6 - DOF and DBM to support budget
requirements.

6.1 - NEDA to pursue the implementation 6.3 - DOF to develop

of the URAF in the sector in accordance and recommend for
with the PWSSMP. URAF has the adoption policies to
following fundamental criteria for crowd-in PFIs.
allocating resources:
a) Poverty incidence;
b) Level of access; and
c) Incidence of waterborne diseases.

6.1.1 - NEDA to establish the URAF 6.1.2 - NEDA to develop standard

TWG to be the focal technical team appraisal tools such as a VGF
that will implement URAF; draft the model for rationalizing national
implementing guidelines of the government grants.
URAF; and develop an investment
program to achieve SDG 6 targets.

103
 KRA 7: Managing Data and Information

Support
Key Actions Driver Period
Agencies

A. Priority Actions

7.1 Formulate guidelines and framework(s) for the Apex body, PSA, DOH, 2019–
harmonization and integration of WSS data. (NWRB/NWMC/ LWUA, 2020
DWR)/NEDA NWRB,
(interim) MWSS,
DPWH
7.2 Integrate a database for the WSS sector that shall act as a Apex body DOH, LWUA, 2019–
repository of all WSS data. (NWRB/NWMC DILG, NWRB, 2020
DWR)/NEDA DPWH,
7.2.1 Link the data repository with PSA. (interim) MWSS, PSA
7.2.2 Identify official/credible sources of data such as
PSA, PAGASA, etc.
7.2.3 Map out current sources of WSS data such as
PWSSMP database, NWRB Listahang Tubig, WD
data from LWUA, water supply-related data from
DILG, and sanitation-related data from DOH and
DPWH.

7.3 Develop and deploy a comprehensive WSS MIS. Apex body DOH, LWUA, 2019–
(NWRB/NWMC DILG, NWRB, 2021
7.3.1 Completely and efficiently roll out the existing WSS DWR)/NEDA DPWH,
information system at NWRB with support funding. (interim) MWSS, PSA,
7.3.2 Train apex body and data custodians on WSS DBM
information system.

7.4 Develop and streamline programs for the establishment of Apex body PSA, DOH, 2020–
baseline data (e.g., pertaining to SDG, coverage, safely (NWRB/NWMC LWUA, DILG, 2021
managed sanitation services, and other relevant DWR)/NEDA NWRB, DPWH
indicators). (interim)

7.5 Facilitate an inter-agency discussion on the communication NEDA NWRB, DILG, 2019–
strategy for the programs of NWRB, DILG, DOH, and DOH, LWUA 2020
LWUA.

7.6 Develop a communication strategy for the sector NEDA NWRB, DILG, 2019–
development plans and programs. DOH, LWUA 2020

7.7 Develop IEC programs for the respective advocacies of NWRB, DILG, NEDA 2020–
NWRB, DILG, DOH, and LWUA. DOH, LWUA 2021

7.8 Develop database of WSS information system that can be NEDA NWRB, 2020–
used for strategic planning, policy formulation, program/ LWUA, DILG, 2021
project development, and M&E. DPWH

B. Other Actions

7.9 Determine extent of adoption/harmonization of UN PSA, NEDA DOH, LWUA, 2020–

definitions of SDGs. DILG, MWSS, 2021
NWRB

7.10 Develop common data report for all WSPs. Apex body DILG, LWUA, Annual
(NWRB/NWMC CDA
DWR)/NEDA

104
KRA 8: Driving Research and Development

Support
Key Actions Driver Period
Agencies

A. Priority Actions

8.1 Formulate research and development agenda based on Apex body DOH 2019–
priority needs of key partner agencies and stakeholders. (NWMC/ 2020
The agenda should include, among others, technology on DWR) /
lowering energy costs and increasing water-efficiency; NEDA/NWRB
sanitation technology options for challenging contexts (e.g., (interim)
high water table, flood-prone, etc.); low-cost and
decentralized septage systems; and policies such as raw
water pricing and tradeable water regime.

8.2 Create a Research and Development Division under the Apex body DOST, DBM 2019–
envisioned NWMC Planning Department with the immediate (NWRB/ 2020
task of formulating the WSS research and development NWMC/DWR/
agenda based on needs. NEDA
(interim)

8.3 Promote the conduct of research and development studies Apex body DOST, 2019–
based on priority research and development agenda (i.e., (NWRB/ Academe 2021
tie-up with academe, WSS partners and experts). NWMC/DWR/
NEDA
(interim)

B. Other Actions

8.4 Establish an improved accreditation process of WSS- Apex body DOST, 2019–
related new technologies. (NWRB/ Department of 2020
NWMC/DWR/ Trade and
NWRB) Industry (DTI)

8.5 Establish and implement government financial support on DBM, DOF DOST, 2019
local WSS-related inventions. Academe onwards

8.6 Tap local inventors and scientists with attractive Apex body DOST, 2020
government support. (NWRB/ Academe onwards
NWMC/DWR)/
NEDA
(interim)

8.7 Develop and adopt advance infrastructure design and Apex body DOST, DPWH 2021
construction methodology solutions. (NWRB/ onwards
NWMC/DWR)/
NEDA
(interim)

105
 KRA 7: Managing Data and Information
Action Tree )
FOLLOW-THROUGH

7.3.1 - NWRB will completely and efficiently roll out the

existing WSS information system with support funding.
ACTIONS

7.3.2 - NWRB to train Apex Body and data custodians on WSS

information system.

7.2 - NEDA, with 7.3 - NWRB and

TOP PRIORITY ACTIONS

support from agencies, NEDA to develop and

to integrate a database deploy a
for the WSS sector that comprehensive WSS
shall act as a repository MIS.
of all WSS data.

7.8 - Develop database of WSS information

system that can be used for strategic planning,
policy formulation, program/project
development, and M&E.

7.2.1 - NWRB and NEDA to link the

data repository with PSA.
SUB-TASKS

7.2.2 - NWRB and NEDA to identify

7.1 - Formulate
official/credible sources of data
guidelines and
such as PSA, PAGASA, etc.
framework(s) for the
harmonization and
integration of WSS data 7.2.3 - NWRB and NEDA to map
out current sources of WSS data
such as PWSSMP database,
NWRB Listahang Tubig, WD data
from LWUA, water supply–related
data from DILG, and sanitation-
related data from DOH and DPWH.

Legend:
- Top Priority Actions

106
 7.7 - NWRB, DILG, DOH, and
LWUA to develop IEC programs
for their respective advocacies.

7.4 - NWRB and NEDA to

develop and streamline
programs for the establishment
of baseline data (e.g.,
pertaining to SDG, coverage, 7.6- NEDA to develop Lead Agencies: NEDA, NWRB
safely managed sanitation communication strategy
services, and other relevant Support PSA, DOH,
for the sector
indicators). Agencies: LWUA, DILG,
development plans and DPWH, MWSS
programs.
Period: 2019–2021

7.5 - NEDA to facilitate an

inter-agency discussion
on the communication
strategy for the programs
of NWRB, DILG, DOH,
and LWUA.

107
 KRA 8: Driving Research and Development
Action Tree
FOLLOW-THROUGH
ACTIONS

8.2 - Create a Research and Development Division

under the envisioned NWMC Planning Department
with the immediate task of formulating the WSS
research and development agenda based on needs.
TOP PRIORITY ACTIONS

8.3 - NEDA to promote the conduct of research and development

studies based on priority research and development agenda (i.e.,
tie-up with academe, WSS partners and experts).

8.1 - NWRB to formulate research and

development agenda based on priority needs
of key partner agencies and stakeholders. The
agenda should include, among others,
technology on lowering energy costs and
Lead Agencies: NEDA, NWRB increasing water efficiency; sanitation
technology options for challenging contexts
Support DOH, DOST, (e.g., high water table, flood-prone, etc.); low-
Agencies: Academe
cost and decentralized septage systems; and
Period: 2019–2021 policies such as raw water pricing and
tradeable water regime.

Legend:
- Top Priority Actions

108
4.4 Priority the expected upgrade of the current WSS
access to higher and better service levels.
The resulting investment costs are
Programs: Key considered to comprise the WSS sector
potential projects required to realize and
Actions (Hard attain access targets.
A list of robust WSS projects in various
Components) stages of conception and development has
also been provided by sector stakeholders
The priority programs support the KRA
during numerous regional consultation
through:
workshops and dialogues. This list includes
a) WSS potential projects; and a classification of “identified projects “ (see
Section 4.4.2).
b) Identified projects.
However, the projected impact of these
projects would not be sufficient to achieve
4.4.1 WSS Potential Projects national targets. Additional projects,
particularly those implemented on a larger
Table 34 presents the total infrastructure scale and with more coverage, shall be
investment requirements to achieve WSS identified during the implementation of the
sector targets by 2023 and 2030. The total Master Plan.
amount is derived from anticipated demand
based on projected population, economic
growth, and factored-in investments to
ensure the continuous delivery of WSS
services provided by existing facilities and
systems. The computation also included

Table 34: Investment Requirements to Achieve WSS Sector Targets

Budget Budget
Gap in Access Total Budget
Gap in Access Requirements Requirements for
Region Population to Water Requirement
to Sanitation for 2023 2030
Supply (in PHP billion)
(in PHP billion) (in PHP billion)

CAR 1,722,006 137,516 523,458 20.42 12.42 8.00

Region I 5,026,128 210,460 271,458 57.67 37.36 20.31

Region II 3,451,410 - 92,934 38.44 27.39 11.06

Region III 11,218,177 201,026 756,951 106.66 76.43 30.23

Region IV-A 14,414,774 1,659,631 926,875 213.92 148.72 65.20

Region IV-B 2,963,360 674,207 520,886 33.41 22.73 10.68

Region V 5,796,989 1,407,084 672,902 51.58 33.03 18.55

Region VI 7,536,383 1,457,642 1,186,720 81.69 57.37 24.32

Region VII 7,396,898 2,609,319 1,229,842 101.64 75.30 26.34

Region VIII 4,440,150 594,882 1,314,215 54.41 36.68 17.73

Region IX 3,629,783 832,841 245,591 42.68 27.16 15.53

Region X 4,689,302 545,846 260,214 59.75 40.32 19.43

Region XI 4,893,318 679,003 396,798 55.76 35.71 20.05

Region XII 4,545,276 265,247 610,714 66.25 45.84 20.41

Region XIII 2,596,709 214,780 431,633 31.37 22.71 8.65

ARMM 3,781,387 1,760,648 1,310,520 52.54 34.49 18.05

Total 88,102,050 13,250,132 10,751,711 1,068.19 733.66 334.53

109
 4.4.2 Identified Projects 4.4.3 Prioritizing Projects to
Achieve National targets
As previously described, projects proposed
by various stakeholders in the regional and To ensure that funded infrastructure
national consultations make up the list of projects shall contribute to the timely
“identified projects”. achievement of the national targets, a
“prioritizing framework” has been
The regional consultation workshop
developed:
participants listed current and potential
WSS projects envisioned to contribute to  Higher priority is given to WSS
achieving sector targets. Majority of them, infrastructure projects where majority of
however, are still in the conceptual stage. the target beneficiaries belong to
households without access to safe water
In addition, representatives of national
supply and households without access to
government agencies (NGAs) provided
basic sanitation.
their list of projects (e.g., see Figure 30 for
DILG project beneficiaries for 2019). These  Higher priority is given to WSS
government projects are discussed in detail infrastructure projects deemed feasible
in Chapter 5. and ready for the next stages of project
development (i.e., feasibility studies and
Table 35 summarizes the short- and
related preparatory works already carried
medium- term budget requirements and
out).
corresponding number of household
beneficiaries of identified projects of DILG,
LWUA and other agencies, disaggregated
per region and by infrastructure type (e.g.,
for water supply or sanitation).

110
Table 35: Summary of Identified Programs and Projects

Project Cost for Project Cost for Percentage

Infrastructure Implementation in Implementation in Household of
Agency
Type 2020–2023 2024–2030 Beneficiaries Population
(in PHP billion) (in PHP billion) Covered
DILG Water Supply 1.05 - 1,667,138 8.0%
Assistance to
Municipalities Sanitation 0.19 - 322,049 2.0%

DILG Water Supply 1.55 - 863,992 4.0%

SALINTUBIG
LWUA Water Supply 10.74 - 4,748,123 24.0%

CAR Water Supply 2.45 26.80 448,430 100.0%

Sanitation 1.71 3,691.46

WSS 0.002 -

Region I Water Supply 7.33 1,003.85 1,241,079 100.0%

Sanitation 0.10 8,950.88

WSS 0.003 -

Region II Water Supply 3.01 13,944.71 845,036 96.0%

Sanitation 1.51 1,263.12

Region III Water Supply 34.34 1,935.10 2,174,945 72.0%

Sanitation 0.21 57,625.82

WSS 2.50 67.00

Region IV-A Water Supply 2.05 - 1,547,066 39.0%

MIMAROPA Water Supply 4,104.45 1,916.95 765,497 100.0%

Region
Sanitation 6,182.00 383.98

WSS 8.00 -

Region V Water Supply 3,505.27 3,878.59 1,341,295 100.0%

Sanitation 51.10 7,368.14

WSS 80.05 0.20

Region VI Water Supply - 10.00 474,538 25.0%

Sanitation - 80.00

Region VII Water Supply 1,261.91 2,562.90 1,412,468 74.0%

WSS 35.00 -

Region VIII Water Supply 730.50 1,401.68 999,767 82.0%

Sanitation - 338.00

WSS 1.00 -

111
 Table 35 (continued): Summary of Identified Programs and Projects
Project Cost for Project Cost for
Percentage
Infrastructure Implementation in Implementation in Household
Agency of Population
Type 2020-2023 2024-2030 Beneficiaries
Covered
(in PHP million) (in PHP million)
Region IX Water Supply 370.90 21,876.77 870,600 97.0%

Sanitation 2.00 905.97

WSS 155.84 -

Region X Water Supply 8,556.43 8,892.80 828,170 70.0%

Sanitation 4,392.48 2,299.04

WSS 257.10 15.00

Region XI Water Supply 5,172.77 792.79 1,154,438 87.0%

Sanitation 5,273.57 541.99

Region XII Water Supply 32.16 474.95 1,000,291 82.0%

Sanitation 0.17 91.42

WSS 790.28 64.00

Region XIII Water Supply 24.90 8,512.44 548,645 87.0%

Sanitation - 3,104.55

ARMM Water Supply 4,331.95 10,691.01 725,449 100.0%

Sanitation 11,742.74 8,060.54

WSS 12.80 41.60

Subtotal Water Supply 88,559.95 77,921.34

Sanitation 31,355.98 94,704.91

WSS 1,347.57 187.80

Total 121,263.50 172,814.05 23,979,016 72.0%

Percentage derived with respect to national population

Legend:
Percentage derived with respect to regional population

112
 113
Figure 30: DILG Projects for 2019
 5
Investment Program and Financing Plan

5.1 Investment The unit development costs per WSS

infrastructure per service level were
derived using NCR prevailing rates, which
Requirements were then adjusted to come up with the
regional unit development costs. Annex C
The total budget required to achieve WSS details the methodology employed in
universal access is estimated at PHP 1.07 deriving the unit development costs used in
trillion over 11 years (2020–2030) (see computing the investment requirements.
Table 36). Around PHP 0.73 trillion is
required to achieve PDP targets by 2023.58
5.1.2 Non-Physical
Another PHP 0.34 trillion is needed to
achieve universal access by 2030. These Investments
figures also include non-physical
Non-physical investments needed by the
investments totaling PHP 1.13 billion that
sector is estimated at PHP 1.13 billion.
would cover the implementation of the
This amount covers: (a) the implementation
PWSSMP reform programs.
cost required to carry out programs and
activities under the eight KRA, and (b) the
project management cost of the operational
5.1.1 Physical Investments plan.
As discussed in Section 4.4.1, physical The former requires approximately PHP
investments comprise the required 323.00 million of allocation for activities
infrastructure to achieve the WSS access conducted by concerned agencies, which
targets. Development costs intended to may include NEDA, LWUA, DILG, NWRB,
bridge sectoral gaps and improve levels of DOH, NIA, NPC, Department of Energy
service of access determine the total (DOE), and the proposed DWR. These
investment requirements. agencies may employ consulting services
to assist in various aspects of program

Table 36: Total Investment Requirements from 2020–2030

Investment Requirements
2020–2023 2024–2030 Total
(in PHP billion)

Physical 733.66 334.53 1,068.19

Water Supply: 278.07 233.01 511.08
Level III 234.11 216.95 451.06
Level II 37.56 15.32 52.87
Level I 6.40 0.74 7.15
Sanitation: 455.59 101.52 557.11
Improved/Basic 349.50 84.02 433.52
Septage 48.89 6.00 54.89
Sewerage 57.20 11.50 68.70
Non-Physical 0.66 0.47 1.13
58
One year has been
added to the
Eight KRA* 0.32 - 0.32
implementation Project Management 0.34 0.47 0.81
timeline, per the
original 2022.
TOTAL 734.32 335.00 1,069.31
*Additional investments for the eight KRA for 2024–2030 will be defined at a later stage.

114
implementation, such as research, and
consultative, development, and legal work. 5.2 Financing
The project management cost of the
operational plan requires an additional Plan
PHP 335.30 million over four years and
entails the establishment of a PMO, which A financing plan for the required
will be an inter-agency umbrella led by the investments for the period 2020–2023 is
NEDA-SWCR, LWUA, DILG, NWRB, and shown in the following sections. (Only the
DOH. plan for the short term of the PWSSMP has
been detailed since financing mechanisms
The PMO must be adequately staffed to may change with the finalization of the
evaluate proposed projects, assist in URAF.)
project preparation, organize and
strengthen the implementing units for
specific subprojects (e.g., WDs, LGUs,
CBOs), and assist in technical and
5.2.1 Funding and Financing
environmental aspects (e.g., water Water Supply
sources, review of proposals,
environmental impacts, climate change Funds for implementing the Master Plan
adaptation work, economic and financial will be sourced mostly from public funds.
evaluation, and review of contracts). However, increased collaboration with the
private sector is considered to leverage
Approximately PHP 469.00 million will be loans from both GFIs and PFIs. This is
allotted to the PMO for project activities consistent with the reforms in the financing
from 2024 to 2030, which will be distributed policies for the WSS sector under EO 279,
over seven years. Table 37 shows the total s. 2004.
non-physical investment requirements per
KRA. The details and bases of the costs Pursuant to these reforms, LGU-run utilities
are found in Annex C. availed themselves of loans and credit
lines from the Municipal Development Fund
Office (MDFO), GFIs, and PFIs.

Table 37: Total Amount of Non-Physical Investments for 2020–2023

Amount in
Non-physical Investments
PHP million

A Implementation Cost of the Programs 322.70

1 Establishing Effective WSS Sector Institutions 45.70

2 Strengthening Regulatory Environment 52.60

3 Creating and Ensuring Effective WSS Institutions 52.60

4 Balancing Water Supply and Demand 26.50

5 Building Climate Resiliency 35.80

6 Enabling Access to Funding and Financing 44.80

7 Managing Data and Information 33.60

8 Driving Research and Development 31.10

B Project Management Cost of the Operational Plan 335.30

TOTAL 658.00

115
 Approximately PHP 4.00 billion in loans charges affordable and implement target
have been approved to finance various subsidies to benefit poor communities.
WSS projects in 2015 (per 2015 COA
Annual Financial Reports for LGUs). At Moreover, WSPs that cannot afford to
least 30 eligible WDs were issued expand their service in outlying areas can
clearance to secure over PHP 6.00 billion access the 13.5 percent (PHP 37.59
in commercial loans for funding efficiency billion) grant allocation for expansion of
improvement programs in 2016. service coverage. This grant allocation
aims to incentivize the operationalization of
As shown in Figure 31, the financing plan the 200 WDs59 in low-income
shall be as follows: municipalities.
a) The PWSSMP lists 37.4 percent (PHP Tariff-setting policies adopt full cost
103.99 billion) of water investments from recovery. Thus, capital grants through
GFIs, including 7.0 percent (PHP 19.45 VGF60 and output-based aid (OBA)61 or
billion) for Level III systems under blended financing will ensure that poor
LWUA. communities can satisfy their basic needs
b) Private sector financing through without having to spend beyond 5.0
commercial loans for funding project percent62 of their family income.
development costs of HUCs is assumed Further identification of actual VGF, OBA,
to be 42.7 percent (PHP 118.86 billion) and blended finance beneficiaries must be
of total water infrastructure investments. established during the PWSSMP
In addition, private capital has been implementation. This evaluation is based
considered with 6.3 percent (PHP 17.63 on eligibility criteria and depends on
billion) of the investments coming from achieving industry key performance
WSPs’ partnerships with private operators. indicators (e.g., service coverage).
These partnerships have emerged owing to
Criteria and Methodology
changes in the management and
operational arrangements of WSPs. The development costs by level of service
and province were established using the
The principles of the URAF (i.e., to PSA 2015 Census of Population.
maximize development financing through
capital grants) have been adopted and The criteria for determining grant allocation
59 made available to WSPs to keep usage include poverty incidence, waterborne and
www.lwua.gov.ph: 233
non-operational WDs as sanitation-related disease incidences, and
of December 2015
(National Economic and
Development Authority
Board INFRACOM)
60
VGF is defined as
capital grants which
reduce the need for
commercial finance to
keep tariffs at affordable
levels.
61
OBA, as defined by
Global Partnership for
OBA, is a results-based
financing scheme
designed to estimate
access to and delivery of
infrastructure and social
services for the poor
using performance-based
incentives, rewards, or
subsidies. It links the
payment of aid or grant to
the delivery of specific
services.
62
Affordability threshold
for combined water and
sanitation tariffs per
LWUA Board Resolution
59-2017
Figure 31: Breakdown of Water Supply Investments, 2020–2023
116
universal access gaps. Figure 32 shows
the proposed prioritization criteria, which
will be further refined through the
implementation of the URAF.
Table 38 shows the 20 provinces with the
highest poverty incidence among families.
The percentage of grant allocation
(applicable for Level III water systems only)
based on province income classification is
listed in Table 39.
Poverty
Diseases
Top 20 poorest
provinces Provinces with Coverage
high waterborne Provinces with
and sanitation- service coverage
related disease below 30.0%

Figure 32: Grant Allocation for Water Supply Projects

Table 38: Ranking of Provinces with the Highest Poverty Incidence among Families
Estimated
Annual Per Estimated Poverty
Magnitude of
Capita Poverty Incidence Among
Rank Province Poor Families
Threshold (in Families (in
(in No. of
PHP) Percent)
Families)
1 Lanao del Sur* 22,802.00 66.3 109,258
2 Sulu* 20,778.00 49.6 83,289
3 Maguindanao* 21,423.00 48.8 86,100
4 Northern Samar* 21,574.00 47.9 57,003
5 Sarangani* 20,753.00 47.3 49,240
6 Bukidnon* 23,682.00 47.0 135,909
7 Zamboanga del Norte* 21,725.00 41.1 99,149

8 Western Samar 20,139.00 39.5 58,326

9 Sultan Kudarat 20,620.00 39.2 71,444

10 Negros Oriental* 22,823.00 38.7 138,029
11 Eastern Samar 22,886.00 37.4 37,919
12 Agusan del Sur 22,957.00 37.0 50,990
13 Lanao del Norte 21,836.00 36.3 73,536
14 Masbate 20,406.00 35.5 69,674
15 North Cotabato 20,555.00 34.5 109,146
16 Catanduanes 21,660.00 33.6 20,022
17 Surigao Del Sur 22,759.00 32.0 42,879
18 Sorsogon 20,480.00 31.7 61,905

19 Apayao 20,947.00 30.9 6,945

20 Southern Leyte 23,318.00 30.2 27,083 117

*Highest proportion of poor families with income below the poverty threshold in both the 2012 and 2015
poverty statistics
Note: Expanding to the next poorest provinces did not alter the financing plan.
 Table 39: Percentage of Grant Allocation per Income Class

Income Class Poverty Diseases Coverage

1st 0.0% 0.0% 0.0%

2nd 10.0% 10.0% 10.0%

3rd 50.0% 30.0% 30.0%

4th 50.0% 50.0% 50.0%

5th 60.0% 60.0% 60.0%

Water Supply Financing Plan  Grant financing (VGF and OBA) is based
on criteria;
To achieve the universal concept of SDG 6
and mobilize additional financing, the  Technical assistance grants are for non-
PWSSMP has varied financing plans per operational WDs and qualified LGU-run
level of service. To supplement utilities;
development and commercial loans, VGF
 Financial assistance is to be given to
and OBA are available to less viable WSPs
WDs under LWUA’s revised lending
to fund their equity or manage their issues
policies (Board Resolution Nos. 57-2017
concerning tariff affordability.
and 92-2017);
Technical assistance grants for capacity
 GFIs and PFIs, and commercial loan
development, project preparation and
programs are available to eligible WSPs;
implementation, and O&M efficiency are
and
included.
 Private capital funds for HUCs and
In addition, the PWSSMP provides
WSPs may be under joint venture
leverage finance to WSPs that extend their
agreements.
services to rural and urban fringe areas
and to institutions that offer small and Level II
affordable loans for water service
 A 100.0 percent grant allocation is given
connections of the poor and the
to the top 20 provinces with the highest
marginalized population.
poverty incidence; 50.0-50.0 percent
The proposed financing mechanisms per loan-grant mix, on the other hand, may
level of service are as follows: be applied to the remaining provinces.
Level III

118
 Blended finance, through microfinancing Flow of Funds
institutions (MFIs), is considered to fund
The proposed flow of funds for water supply
users’ equity (e.g., WaterCredit and
investments during project implementation
WaterConnect Programs).
is shown in Figure 34.
Level I
Following the proposed financing shown in
 100.0 percent grant financing is intended Figure 31, funding classified under
to support poor rural communities; target development loans for the WS subsector will
aid is also extended to community-based come from LWUA, and GFIs/MFIs. Grants
WSPs or institutions serving the rural will be coursed through LWUA and DILG/
areas, which may be implemented LGUs, as well as the DOF-MFIs. HUCs and
through the DILG’s Local Development private WSPs will mostly take up funding
Support Fund - Assistance to the from commercial loans.
Municipalities (LDSF-AM) Program in
partnership with MFIs.
Figure 33 presents the computed
distribution of investments per level of
service following the financing plan
mentioned earlier.

 Grant = 7.60 (3.3%)

Level III = 234.10  Users’ Equity = 17.70 (7.6%)
 GFIs/LWUA = 90.00 (38.4%)
 Private (Commercial and HUCs) = 118.80 (50.7%)

Level II = 37.60  Grant = 23.50 (62.5%)

 GFIs/MFIs/Users = 14.10 (37.5%)

Level I = 6.40  LGU Grant = 6.40 (100.0%)

Figure 33: Financing Plan for Water Supply Sector Investments (in PHP Billion), 2020–2023

Figure 34: Flow of Funds for Water Supply Investments (in PHP Billion), 2020–2023

119
 5.2.2 Funding and Financing a. Develop an estimated investment
requirement by level of sanitation and
Sanitation province;
Achieving universal access to sanitation b. Expand the NSSMP to provide technical
requires dedicated public funds and scaling grants for feasibility studies and other
up of private investment to enable the project preparation activities;
government and its development partners
c. Enhance access to development or
to integrate the implementation of water
commercial loans to finance the
and sanitation infrastructure.
remaining balance after the 50.0 percent
Similar to the strategy for water (and as grant subsidy under the NSSMP. This
presented in Figure 35), the PWSSMP strategy includes incorporation of
allocates 45.2 percent (PHP 205.87 billion) sanitation projects in existing financing
of grant funds to move investments programs of GFIs, e.g. DBP’s Water for
towards urban areas outside Mega Manila. Every Resident (WATER) Program;
Development financing through GFIs for
d. Create incentives for HUCs that have
basic and improved sanitation account for
been consistent in complying with
43.2 percent (PHP 196.67 billion);
NSSMP guidelines; and
investments for septage and sewerage
programs implemented by LGU-run e. Expand the NSSMP criteria for grant-
utilities, the private sector, or WDs amount loan mix available to other LGUs or
to 10.2 percent (PHP 46.45 billion) of the WSPs.
total sanitation investment requirement.
Figure 36 shows the grant allocation
scheme considered for sanitation
investments. For LGUs implementing a
Criteria and Methodology septage/sewerage program, 50.0 percent
The PWSSMP has considered the will be provided as grant under the existing
following strategies based on the findings NSSMP. Under the PWSSMP,
and deliberations in the regional enhancement of financing for basic to
consultation workshops: improved sanitation is recommended.

Figure 35: Breakdown of Sanitation Investment, 2020–2023

120
 HUCs Cities/Municipalities/Others

Improved/Basic
Grant = 50.0% / 25.0%
Grant = 50.0%
Septage
Grant = 50.0%
LGU = 50.0%
Sewerage
Grant = 50.0%

Figure 36: Grant Allocation for Sanitation Projects

Grants at 25.0 percent (HUCs) and at 50.0 percent development financing from GFIs to
percent for other LGUs will be provided to ensure tariffs remain within the affordability
poor communities through fund-blended threshold. This scheme is aimed at
financing. mobilizing private financing of septage
management programs for all cities and first
-income class municipalities, in partnership
Sanitation Financing Plan with WDs, WSPs or LGUs.
The strategies for financing sanitation Sewerage Systems
projects are listed below:
 Develop a specialized subsidy
Basic/Improved Sanitation mechanism to support large-scale and
 Establish mechanisms for 100.0 percent high-cost sewerage programs that will
grant financing of the construction of address efficient collection of sewage
flush toilets for poor households generated by households and commercial
(estimated at 25.0 percent of the buildings, and effluent released from
population) practicing open defecation or individual septic tanks. The NSSMP
using unimproved sanitation facilities. framework prioritizes HUCs with 50.0
percent capital grants and subsidies
 Develop blended finance through NGOs subject to program guidelines.
or institutions to extend small and
affordable loans to households to fund  Other priority areas, such as tourism
users’ equity (e.g., Water.org’s zones, heritage sites, and qualified critical
WaterCredit and WaterConnect areas, may be eligible for a grant subsidy.
Programs). With the adoption of VGF under the URAF,
Septage Management GFIs may be utilized as a conduit for the
grants for sewerage projects. LWUA will
 Promote increased access to financing continue to oversee project implementation
through VGF and concessional loans to and grant dispensation of WDs undertaking
fund project implementation, including sanitation projects in partnership with LGUs.
equity. The rationale for this strategy is Figure 37 presents the computed funding
that the government carries the per level of service and financing type for
responsibility of ensuring proper septage the total sanitation subsector investments.
management systems.
Flow of Funds for Sanitation
Under the PWSSMP, the NSSMP shall be
subsumed under the URAF principles. As A flowchart detailing the process of
part of the NSSMP, a 50.0 percent grant submission, evaluation, and approval of
fund may be supplemented with 50.0

121
 subsidy grant applications is shown in 5.2.3 Disbursement Plan
Figure 38.
A disbursement plan for the required
For improved and basic sanitation
investments for WSS for the period 2020–
infrastructure, it is recommended that GFIs
2023 has been prepared factoring in the
and MFIs consider blended financing if
financing mechanisms discussed in the
they are to submit their proposals to DOF
previous sections, which is detailed in
for review.
Annex D.
Under the expanded NSSMP, three
Considering that the sector targets set by
agencies, namely the DILG, DPWH, and
PDP should be achieved by 2023,
LWUA, will be tasked to disburse grant
construction work is programmed between
subsidies and financial assistance,
the second and fourth years while the
facilitating a more robust dispensation of
capacity development of WSPs will be
the grant money and increased number of
undertaken by the third and fourth years.
evaluated applications. It is recommended
that LGUs and LGU-run utilities submit Distribution of funds according to the
their proposals to the DILG, while HUCs financier is based on the timing of
and WDs may submit theirs to DPWH and disbursement for a feasibility study/detailed
LWUA. engineering design (FS/DED), physical
works, and capacity development.
Regional counterpart and central offices
shall review proposals before endorsing Details of the investment requirement,
these to DBM for approval. DOH shall be in financing plan and disbursement plan for
charge of monitoring the projects’ the period 2020–2023 are shown in Annex
contribution towards attaining universal D.
access to sanitation.
Figure 39 presents the proposed flow of
funds for sanitation projects. As previously
discussed, grants will be coursed through
LWUA, DPWH, DILG, and GFIs-MFIs.
Development loans for improved sanitation
may be accessed by LGUs from GFIs and
MFIs. For septage and sewerage projects,
loans may be accessed from GFIs and
LWUA.

Basic/Improved Sanitation Sewerage = 57.20

Septage = 48.90 (10.7%)
= 349.50 (76.7%) (12.6%)

Grant = 24.50 (50.1%) Grant = 28.60(50.0%)

Grant = 152.80
(43.7%)
Development Loans =
20.50 (41.9%) Development Loans =
26.00 (45.%)
WSP Equity = 2.00
Development Loans
(4.1%)
= 196.70
(56.3%) WSP Equity = 2.60
Private = 1.90 (4.6%)
(3.9%)

Figure 37: Funding and Financing Allocation for Sanitation Projects (in PHP Billion)

122
Figure 38: Proposed Flow of Applications for Financing Sanitation Projects

Development Users Equity WSP / LGU / WD

Grants
Loans (PPP / Private) Equity
= 205.80 (45.0%)
= 243.20 (53.4%) = 1.90 (0.6%) = 4.70 (1.0%)

LWUA / DPWH (Septage

LGU / GFI-MFI
and Sewerage)
Loans (Improved)
= 41.00 (19.9%)
= 196.70 (80.9%)

DILG / GFI-MFI
= 12.00 (5.8%)
GFI / LWUA
(Septage and
Sewerage) GFI-MFI / LGU
= 46.50 (19.1%) = 152.80 (74.3%)

Figure 39: Proposed Flow of Funds for Sanitation Projects (in PHP Billion)

123
 5.3 Plan Timeline (BUB) programs for 2019 have been
considered in the priority list.
As of 2018, NEDA has bid feasibility
While the PDP and SDG targets will have studies for Mandamus, non-Mandamus,
been met by 2023 and 2030, respectively, high NRW, and non-operational WDs. The
the PWSSMP takes into account the state WDs with expected complete concept
of the WSS sector beyond that period. In design and feasibility studies by 2019 have
particular, further improvement of service been included in the pipeline projects for
access and upgrading of related 2020 (mobilization).
infrastructure will consistently be pursued.
Thus, the PWSSMP considers the Also included under NEDA’s Project
following timeline: Development and Other Related Studies
(PDRS) Fund is the conduct of feasibility
 Short Term: 2020 to 2023 studies and/or concept designs for bulk
 Medium Term: 2024 to 2030 water supply in selected provinces in the
country. DILG will execute the project as its
 Long Term: 2031 to 2040 implementing agency.
Projects and activities contributing to the Initially identified and proposed projects in
realization of sector targets and goals, the short term are based on the key sector
especially for the short term, have been agencies’ plans and directions in the
identified to facilitate their implementation immediate future. These are expected to
alongside the operationalization of the increase and be expanded once the
PWSSMP. The assessment was made on PWSSMP implementation is in full swing.
the basis of the reform activities and their
schedule of implementation. The PAPs to be determined thereafter shall
be directed towards achieving WSS sector
The prioritization of short-term projects is access targets per province and/or region.
based on: (a) the readiness of the projects Targets not met in the short term (if any)
(e.g., preliminary studies and assessment shall be covered by PAPs that are slated
conducted, coverage area and project for the medium and long terms.
beneficiaries defined, project proponent/s
organized and well-capacitated to operate
and maintain WSPs to ensure
sustainability); (b) funding or financial
5.3.1 Short-Term Investment
assistance having been secured; or (c) the Needs
project study area being included per
Table 40 shows the key immediate
immediate development plans of
activities to be implemented in the first
implementing entities (e.g., government
three years of PWSSMP’s short term.
agencies, etc.).
Among these activities are various
Proposed projects in the short term that organizational and institutional reforms,
have secured or likely to secure funding preparatory works for infrastructure
are included in the Priority Investment projects, and activities leading to the
Program. The majority of the projects in the establishment of a unit that shall
Priority Investment Program are based on operationalize the Plan.
pipeline projects, as gathered from DILG
As discussed in Section 5.1.1, the required
and LWUA, which have been the main
infrastructure investments for the period
project and fund IAs in the WSS sector in
2020–2023 is PHP 734.32 billion. Of this
recent years.
value, about PHP 62.00 billion worth of
The consultations with LWUA and its programs and projects have been initially
roadmap determined the agency’s plans identified, proposed, and included in the
and direction, aiding the prioritization of Priority Investment Program, which is
WD-covered areas for short-term projects. scheduled for implementation in the short
In addition, DILG’s pipeline projects under term.
SALINTUBIG and Bottom-Up Budgeting

124
Table 40: Immediate Key Activities
2020 2021 2022
A. Physical Investments
1 Use prioritization criteria (i.e., readiness, impact/urgency) to screen and confirm the short
list of investment projects to be implemented in 2020.

2 Carry out project preparation work for the Priority Investment Program
(2019-2020).

3 Implement the Priority Investment Program.

4 Implement and expedite the implementation of sanitation programs.

5 Develop sanitation programs (basic/improved) in collaboration with NGOs, MFIs or the 20
provinces. Provide grants through the MFIs as seed fund for a sanitation program.

6 Facilitate the implementation of the NSSMP and work out implementation

hurdles with LGUs.

B. Non-Physical Investments
Organizational and Institutional Development Reforms

1 Organize the WSPs and transform them into commercially operated and financially viable
utilities:

1.a Operationalize the 230 non-operational WDs.

1.b Turn over completed SALINTUBIG WDs and organize them as WDs.
1.c Restructure and strengthen 100 LGU utilities into commercially operated and
viable entities.
2 Strengthen key water sector organizations.
2.a Reorganize LWUA and increase its staff complement to enable it to meet its increased
functions and responsibilities.
2.b Reorient and capacitate DILG to focus on providing assistance with regard to setting up
Level II water systems and basic/improved sanitation as well as providing continuing
capacity-building to LGUs that run water utilities.
2.c Review and improve the performance of other sector agencies such as the DPWH, DOH,
NWRB and DILG thru an effective capacity development program.
3 Develop and pilot a model for integrated WSS services.
4 Implement and institutionalize the integrated planning of WSS at the LGUs,
prepare municipal WSS development plans, and consolidate such plans at the provincial
and regional levels.
C. Implementation and Project Management Support

1 Work out the passage of an EO that will enable the implementation of the PWSSMP. The
EO among other things, shall:
1.a Approve the PWSSMP and the accompanying Investment Program.

1.b Pave the way for the delineation of functions and responsibilities among key agencies
involved in policy development and service provision.

1.c Adopt and implement the proposed Operational Plan and Investment Program.

2 Work through the INFRACOM - SCWR, enable the issuance of Memo Circulars,
Administrative Orders, Board Resolutions and other policy actions to
implement quick and immediate reforms in the different agencies in the sector (DWPH,
LWUA, DILG, NWRB, DOH, DENR, and others).
3 Set up and operationalize the central WSS database at the NEDA.

125
 Most of the items in the Priority Investment Annex E lists the study areas (WDs, LGUs)
Program are based on concrete pipeline and corresponding program schedule.
projects from LWUA and DILG. The projects’
tangibility requires that they be implemented
within the short-term planning horizon. 5.3.2 Medium- to Long-Term
Each project under the Priority Investment Investment Needs
Program has a total investment requirement
upon which the projected disbursements for Table 42 shows the investment
2020 and 2021 are based. Activities for requirements for the identified short-term
these first two years include project projects under the Priority Investment
preparation such as feasibility studies, Program. It summarizes the total investment
detailed engineering and design, and other needs to meet the following: 95.0 percent
work that shall be procured and conducted target relating to access to water supply,
prior to the construction stage. 97.0 percent basic sanitation targets by
2023, and universal access by 2030.
Activities related to soft components (e.g.,
capacity-building and IEC programs The WSS sector requires about PHP 1.07
(especially for the sanitation subsector), trillion worth of physical and non-physical
shall also be conducted in the same period. investments from 2020 to 2030 to achieve
The budget requirement for project the targets set by the PDP and SDG. A large
preparatory activities will be estimated using fraction of this amount is needed in the short
assumed percentages based on prevailing term to reach the targets in inclusive years.
and historical industry trends and standards. However, spending for the remaining and/or
Table 41 lists and describes the schedule of unrealized targets in the short term is
programs included in the Priority Investment expected to be carried over to the medium
Program. Table 42 details their and long terms, and shall be combined with
corresponding investment requirements and the required PHP 335.00 billion worth of
projected disbursements for 2019 and 2020. infrastructure investments with respect to
universal access.

Table 41: Projects under the Priority Investment Program

Projects Description

Schedule A  WS improvement and expansion projects with pending requests for financial
assistance from LWUA
 Ongoing evaluation of requests, with projected approval in 2019

Schedule B  WDs under LWUA Master Plan available list

 WDs covered by Proposed Water Supply Expansion/Improvement and NRW
Reduction Program
Schedule C  WDs lined up for feasibility studies with regard to NRW reduction
 Expected FS completion in 2020
 Program for improvement activities to start in 2021
Schedule D  Non-operational WDs lined up for FS with regard to operationalization
 Expected FS completion in 2002
 Program for operationalization to start in 2021
Schedule E  DILG SALINTUBIG projects lined up for 2020

Schedule F  DILG Assistance to Municipalities (AM) projects lined up for 2020 (water and
sanitation projects)

Schedule G  Investment requirements for sanitation; percentage for FS derived

Schedule H  Septage management projects for non-Mandamus WDs

126
Table 42: Priority Investment Program

Total Projected
Investment Disbursement
Identified Short-Term Projects Requirement (in PHP billion) Remarks/Details
(in PHP
billion) 2019 2020

1 Existing WDs
11.29 0.42 0.54
1.1 With confirmed funding: ADB loan 3.24 0.07 0.11 Completion of FS and project
preparation of four WDs in 2020
(9.0 percent), project
construction work starts in 2021
(10.0 percent mobilization of four
projects to be completed in three
years)
1.2 With proposed projects: 8.05 0.35 0.43

Approved 2020 Budget 0.35 0.35

With Ongoing Evaluation/ Schedule 2.75 0.28 Assumed 10.0 percent in 2021 or
Request A under ODA (thereafter)
WUA Master Plan Available Schedule 4.35 0.09 Feasibility studies and project
List for 2020 B preparation (9.0 percent) in 2021
With Feasibility Studies Schedule 0.60 0.06 An NRW Reduction Project FS
Completed by 2020 C will be completed in 2019; the
project starts in 2021 (10.0
percent mobilization)
2 Non-Operational 0.70 - 0.08

2.1 With Feasibility Studies Schedule 0.60 0.06 10.0 percent mobilization by
Completed by 2020 D 2021
2.2 SALINTUBIG Formed as LGU/ 0.10 0.02 10 LGUs at PHP 10.00 million
WDs (9.0 percent FS and project
preparation in 2021)
3 DILG 4.24 2.69 1.55

3.1 2020 List of Projects Schedule 1.55 1.55 Water supply projects in various
E barangays and municipalities
3.2 2020 List of Assistance to Schedule 1.14 1.14 Potable water supply, rainwater
Municipalities Projects F catchment facility, health and
3.3 2020 Assumed Same Amount 1.55 1.55 sanitation projects

4 Sanitation 46.15 0.24 3.88

4.1 Feasibility Studies of HUCs in Schedule 44.65 0.24 1.67 Feasibility studies of sewerage
2020-2021 G
projects in 2020–2021
4.2 6% Project Preparation for Basic 1.96 44.0 percent government funds
and Improved Sanitation for basic and improved
sanitation; assumed FS and
project preparation (6.0 percent)
in 2021
4.3 Septage Projects (LWUA Master Schedule 1.50 0.25 Establishment of septage
Plan) H management programs for 30
WDs at PHP 50.00 million per
WD; five WDs scheduled in 2021

Grand Total 62.38 3.35 6.05

127
 Water Supply
5.3.3 Strategic Interventions The proposed strategic interventions for
the water supply sector are presented in
Apart from the activities and reforms Table 43.
proposed in the eight KRA (as discussed in
To meet the targets for access and
detail in this plan), a number of other
coverage and the normative content of
strategic interventions to achieve the WSS
water (service standards), the scope of
sector targets in 2023 and 2030 are
works requiring capital investments needed
discussed below. These shall help ensure
in 2023 and 2030 are listed in Table 44.
that the proposed infrastructure projects
are realized and are readily applicable and
adoptable at the local level.
These interventions shall also be
discussed in detail and shall be region-
specific in the subsequent regional
roadmaps included in this Volume.

Table 43: Proposed Strategic Interventions for Water Supply

Access to Planning and Service
Regulation Promotion
Safe Water Development Provision
95.0%  Planning, program or  M&E expansion  Arbitration  Willingness to connect
Access to project design  Integration/  Compliance with and pay
Safe Water  Establishing labs and Amalgamation PNSDW 2017  Demand creation
water quality testing  Automation  Compliance training from
by 2023
centers DOH
 Residuals management
 Lobbying for the
 Mitigation
Regional WSS
Universal Masterplan  Water potability
maintained at all times
Access by
2030  Providing 24/7 water
supply service
 Achieving 100.0%
coverage

Table 44: Scope of Works Requiring Capital Investments Needed for the Water Supply Targets

Service Level 2023 2030

 Construction of water treatment facilities  Construction of water treatment facilities
 Distribution network expansion  Distribution network expansion
 Provision of service connections  Provision of service connections
 Development of a Water Safety Program  Development of a Water Safety Program
Level III
 Establishment of adequately equipped laboratory  Automation of operations and major services
testing centers in strategic areas to serve all service
levels clientele

 Rehabilitation of existing water supply system to  Rehabilitation of water supply system to upgrade it to
Level II
upgrade it to Level III Level III
 Upgrading to “safe level” those water sources found  Adoption of a rain water harvesting program in areas
Level I
“unsafe” not reached by Levels II and III services

128
 use and design will also be released by
Sanitation DOH soon after the planned consultation
Table 45 presents specific strategic activities are rolled out in the country’s
interventions for varying levels of access three major island groups (i.e., Luzon,
coverage for improved sanitation. This Visayas, and Mindanao).
indicates that proposed interventions are
specific and tailor-fitted to actual local For septage management, a clustering
conditions. approach will be recommended to reduce
capital costs and attain economies of
Capital investments for the sanitation targets scale. Clustering of municipalities to be
will include programs in basic sanitation, served by their dedicated proposed STP
septage management, and sewerage has been accomplished by the provinces’
management. representatives in the regional
For basic sanitation, it is recommended that consultations. Clusters shall be discussed
DOH prescribe a national basic sanitation in detail in the succeeding regional
program for the entire country, looking into a roadmaps.
combination of micro-financing and behavior
change communication. A Department
Administrative Order on standard septic tank

Table 45: Proposed Strategic Interventions for Sanitation

Access to Planning and Development
Improved Planning Service Provision Regulation
Promotions
Sanitation Program or Project Design Operations Tariff/Pricing
Social Preparation
Institution Building M&E Resource
Advocacy
Training Expansion Arbitration
Demand Creation
Financing Amalgamation Registration,
Behavior Change
Climate/Disaster Resiliency Automation Permits, Rights
Policy

High Access  LSSP should be incorporated  Sanitation programs  Tariff should be  Promotions should
into the WSS Sector Plan, should focus on computed using full focus on enjoining
Areas with 60.0 local development plan (LDP), implementing cost recovery with the public to
to 100.0 annual investment program sewerage systems infusion of capex connect to the
percent (AIP), and local health plan and completing subsidy for sewerage system
(LHP). septage sewerage projects. when made
Improved
 A sewerage system program management  LGU implementers available stressing
Sanitation programs. the importance of
should be developed to have undergone
Coverage compliance and
provide service in the urban  Expansion of compliance training
core coordinating with those in urbanized and given by DOH and the benefits
charge of the septage urbanizing barangays DENR (particularly therefrom.
management program; project should be pursued. in sewerage  Promotional efforts
urban sprawl  M&E system should systems), and the regarding water
 A NSSMP subsidy grant for conform to PSA/ Dept. of Agriculture demand
sewerage and septage Census (covered by (DA) with respect to management
management programs should sewerage system, regulations/ should be
be in place. households guidelines supported to
desludged, and on- governing disposal minimize wastage
 Capacity development in
site systems). of by-products. and unnecessary
regard to sewerage systems
 Penalties should be use of water.
should be planned and
integrated with other strictly imposed on  Building buy-in for
infrastructure. those not complying paying for
with certain sanitation services
 A sanitation ordinance
requirements, should be
covering sewerage system and
including LGUs/ promoted.
septage management services
WDs by filing cases
should be passed, possibly
with the
integrating it into the
environmental
environment code and WQMA
ombudsman.
action plan.

129
 Table 45 (continued): Proposed Strategic Interventions for Sanitation
Planning & Development
Planning Service Provision Regulation
Promotions
Program or Project Design Operations Tariff/Pricing
Access to Social Preparation
Institution Building M&E Resource
Improved Advocacy
Training Expansion Arbitration
Sanitation Demand Creation
Financing Amalgamation Registration, Permits,
Behavior Change
Climate/Disaster Resiliency Automation Rights
Policy

Medium  LSSP should be  Sanitation programs  Tariff should be  Promotions should

Access incorporated into the WSS should focus on computed using full focus on enjoining
Sector Plan, LDP, AIP, implementing cost recovery with households to have
Areas with 30.0 and local health plan. septage management possible infusion of their septic tanks
percent to 59.0  A septage management programs and capex subsidy for desludged once a
program should be completing projects septage management septage management
percent
developed to provide on basic sanitation projects (with plan is in place;
Improved and zero open possible clustering of
service to the entire  The importance of
Sanitation defecation. LGUs).
population using a building the right
Coverage customized approach in  Systems should be  LGU/WD septic tanks and the
rural areas. expanded to cover implementers should benefits of good
 The NSSMP subsidy grant increase in population have undergone sanitation should
should be included in and additional compliance training likewise be promoted.
septage management buildings. given by DOH and  Building buy-in for
programs.  M&E system should DENR (particularly in paying for sanitation
conform to PSA/ septage management services should be
 A sanitation ordinance
Census (covered by systems), and by DA promoted.
covering septage
households regarding regulations/
management services
desludged and on- guidelines on
should be passed,
site systems). disposal of by-
possibly integrating it with
products.
the environment code and  Sewerage system
WQMA action plan. programs should be  Strict penalties
introduced. should be imposed
on those not
complying with
certain procedures,
including LGUs/WDs,
by filing cases with
the environmental
ombudsman.

130
Table 45 (continued): Proposed Strategic Interventions for Sanitation
Planning & Development
Planning Service Provision Regulation
Promotions
Program or Project Design Operations Tariff/Pricing
Access to Social Preparation
Institution Building M&E Resource
Improved Advocacy
Training Expansion Arbitration
Sanitation Demand Creation
Financing Amalgamation Registration, Permits,
Behavior Change
Climate/Disaster Resiliency Automation Rights
Policy

Low Access  LSSP should be  Sanitation programs  LGU/WD  Promotions should

incorporated into the WSS should focus on implementers should focus on enjoining the
Areas with 0.0 Sector Plan, LDP, AIP, implementing projects have undergone public, households
percent to 29.0 and local health plan. in basic sanitation compliance training and building
percent  A basic sanitation program and zero open initiated by DOH and administrators to
should be developed and defecation. DENR (particularly in have their toilets and
Improved
an ordinance thereon  M&E system should basic sanitation septic tanks properly
Sanitation systems). installed;
passed to make sure that conform to PSA/
Coverage
every household/building Census in place  Compliance with  The level of public
has a toilet and septic tank (covered by on-site Office of the Building awareness of the
and access to on-site systems). Officials and Sanitary benefits of good
treatment.  Septage Inspectors sanitation should be
 Financial support should management regulations and raised.
be pursued for basic programs should be guidelines should be  Public awareness of
sanitation programs – a initiated. required. the health and
combination of micro-  Strict penalties environmental
finance and behavior should be imposed hazards of open
change communication, on those not defecation should be
possibly integrating OBA, complying with generated.
sweat equity, and building regulations
sanitation vouchers. and laws on open
 Interventions should be defecation.
planned for rural and
inaccessible areas;
alternative on-site systems
should be developed.

131
 6
Implementation,
Monitoring, and
Evaluation Arrangements
The PWSSMP is ready for implementation  The pre-investment activities are required
using the current WSS institutional for the preparation of the implementation
arrangements and practices. The eight of the investment program for PWSSMP.
KRA (soft components) are expected to This undertaking may take 12 months.
improve the enabling environment of the
 The PWSSMP can be implemented in
WSS sector even as priority programs
four phases:
(hard components) are being pursued.
 Phase 1 (2019) includes the 12-
The implementation of the PWSSMP has
month pre-investment activities;
the following guiding principles:
 Phase 2 (2020 to 2023) marks the
 The PWSSMP includes the creation of an
start of the implementation by the
apex body.
PMO of the PWSSMP investment
 A PMO must implement the initial program from 2020-2023;
activities of the PWSSMP while the apex
 Phase 3 (2024 to 2030) is the
body is being developed.
continuation of the implementation of
 The infrastructure investment program the PWSSMP investment program
can be implemented in two stages: by the DWR starting 2024; and
- Stage 1 is to be implemented by the  Phase 4 (beyond 2030), on the other
PMO. The apex body has to be set hand, considers the remaining
up with the objective of creating a projects and activities that may be
new department (referred to in this implemented beyond 2030 and may
document as “Department of Water lead to the culmination of AmBisyon
Resources” or “DWR”). The transition Natin 2040. While the PWSSMP
of responsibilities according to the considers the planning horizon of
new setup will be ongoing including 2019-2030, continuous improvement
the establishment of the Philippine of service access and upgrade of
WSS Information System to support related infrastructure shall be
the DWR. The PMO shall implement pursued.
the initial investment program as set
in the PWSSMP while the transition is
ongoing and in support of the DWR.
- Stage 2 is to be implemented by the
6.1 General
DWR. With the PMO catalyzing the
implementation of the PWSSMP in Oversight and
Stage 1 and building the capacity of
the DWR, the next stage is expected Guidance
to undergo a smooth transition. While the apex body is in its startup stage,
63
NWRB has the legal  The financing mechanisms in the NEDA shall be the executing agency with
mandate but needs previous chapter may change with the respect to the PWSSMP implementation.
further support and
finalization of the URAF. The first phase The DWR will be the implementing agency
institutional
strengthening to enable of the infrastructure investments includes backstopped by NWRB during the interim
it to discharge its activities to bridge the transition to the setup.63
functions.
URAF. INFRACOM-SCWR provides oversight and
guidance. The project steering committee
132 (PSC) must include NEDA, DPWH, DILG,
DOH, DOF, DBM, and the DWR.
6.2 Management remaining WSS gaps to achieve
universal WSS services in the country.
Implementation of any remaining and/or
and Supervision unfinished PAPs after said period may be
executed beyond 2030 and shall be
The PMO, as shown in Table 46, can be
covered in Phase 4 (beyond 2030).
placed under the oversight of NEDA or
NWRB.
The following offices shall manage the Phase 1 (2019): Pre-
phases of implementation:
Investment Activities
Table 46: Management and Supervision for The pre-implementation activities will
PWSSMP Implementation include the following:
Phase Management Supervision  Approval and adoption of the PWSSMP
Phase 1 NEDA NEDA, OP and Priority Investment Program. The
(2019) PWSSMP including its investment
program will be submitted to the NEDA
INFRACOM for approval and adoption.
Phase 2 PMO NWRB, Upon approval thereof, the INFRACOM
(2020 to NEDA, OP
will serve as the steering committee to
2023)
oversee and direct the implementation of
Phase 3 DWR OP the masterplan.
(2024 to
 Scope, program, and plan for finances.
2030) and
Phase 4 The scope of the activities to be
(2030 and conducted under the PWSSMP Priority
beyond) Investment Program will be confirmed
with the Government of the Philippines,
the budget available for the infrastructure
component program and the prioritization
of the reform activities. An initial scope
for the PMO is attached including an
6.3 Project estimate of the budget in the PWSSMP
(See implementation schedule in Table
Execution 12 in Annex C).
 Rollout of the PWSSMP and Operational
The PWSSMP will be implemented as
follows: Plan. The rollout will be undertaken
through regional conferences, distribution
 Phase 1 (2019) covers the pre- of the audiovisual presentation (AVP),
investment activities, and must be and the dissemination of printed copies
executed by NEDA as the PMO. This of the PWSSMP. The proposals for
phase includes the approval and funding and financing of investment
adoption of the PWSSMP and Priority projects will be solicited from LGUs, and
Investment Program. the coverage, scope and objectives of
 Phase 2 (2020 to 2023) implements the the PWSSMP will be explained. The
PWSSMP and Priority Investment RDCs will lead the rollout in their
Program. Phase 2 shall execute respective regions and will be involved in
investment programs from 2020 to 2023 the implementation.
to achieve the WSS targets as stipulated  PWSSMP Priority Investment Program
in PDP 2017-2022. preparation activities for the Priority
 Phase 3 (2024 to 2030) must be led by Investment Program. The pre-
the DWR and must continue the implementation program includes a
implementation of Phase 2. Phase 3 shall priority investment program for
execute investment programs from 2024 implementation in 2020. Project
to 2030. This phase covers the preparation activities, such as project
feasibility studies, detailed engineering
133
 and design, and procurement shall be systems. This expansion will increase
carried out in 2019. The projects under coverage and provide economies of
the Priority Investment Program must be scale to improve O&M and ensure the
ready for implementation after the viability of the WSP systems.
establishment of the PMO. Proposals
Two modalities are preferred but not
that have not been included in the budget
imposed in implementing PWSSMP Priority
for 2019 shall be prioritized for inclusion
Investment Program:
the following year.
 Investments for WDs: For existing and
potential WDs, the mode of
Phase 2 (2020 to 2023) and implementation is that undertaken
through LWUA.
Phase 3 (2024 to 2030):
 Investments thru LGU-run utilities: For
Priority Investment Program existing and potential LGU-run utilities,
The PWSSMP Priority Investment Program the mode of implementation is that
will include the following components: carried out through DILG or LGUs.

 Pro-poor WSS Infrastructure. This The other investment modalities for private
component complements KRA 1.2, and community-based service providers
especially funding of WSS programs that are to be established during Phase 1 (pre-
focus on the delivery of services to far- investment activities) and the URAF.
flung, hard-to-reach and poverty-stricken
areas with a right-based local
governance framework. Implementation of the KRA
 PPP-friendly WSS Investments. This Simultaneous with the implementation of
component complements KRA 2.1 PWSSMP Priority Investment Program are
especially in regard to establishing a PPP various activities and actions identified in
arrangement suitable for WSPs. the eight KRA. An indicative schedule of
activities pertaining to the KRA is provided
 Integrated WSS investments. This
in Annex F.
component complements KRA 3 and
KRA 4, that identify various infrastructure
interventions, including integrating runoff
storage (detention and retention basins)
in flood mitigation projects, developing
6.4 Framework of
surface water sources with an integrated
groundwater recharge system, Collaboration
developing non-traditional alternative This section sets the framework of
water sources, and adopting provincial or collaboration of the agencies, institutions,
district bulk (surface) water supply and WSPs in the WSS sector.
systems.
 Support for WSS investments in climate
resiliency. This component complements
KRA 4 and supports the initiative to Statement of Common
improve existing structures by making
them climate-resilient (e.g., compliant Purpose
with climate-related infrastructure In addition to the national targets and
standards). New climate-resilient WSS commitments to achieve universal access
structures must be designed. to safe water and basic sanitation, a
 Support for infra-expansion investments common purpose of this WSS endeavor
to increase coverage. This component states:
complements KRA 5 by providing funds
to enable qualified WSPs to expand their “Water is life, and
sanitation is dignity.”

134
Access to water is a basic need and a right Roles and Responsibilities
to life. In addition, providing safe water and
safely managed sanitation recognizes and PMO
respects human dignity.
 Evaluate and approve proposals;

 Procure the services of consultants for

Goals the DED/FS;
 Implement DED/FS and other
The goal of this PWSSMP is to set the
preparatory studies for LGU-run utilities;
country’s direction towards achieving the
WSS national targets and commitments.  Prepare an updated investment and
Thus, the PWSSMP considers the current disbursement program;
situation and works with the fragmented
 Procure and engage construction
sector towards achieving these targets.
supervision consultants; and
The goals of the PWSSMP are as follows:
 Monitor and evaluate the PWSSMP and
 To achieve a collaborative and effective Investment Program.
working relationship among line
agencies, institutions, WSPs, partners, DBM
and the stakeholders;  Review and approve requests for funds;
 To collectively influence national policies  Monitor disbursements;
and the public on water use,
 Review, approve, and allocate funds
conservation, and sanitation;
based on the approved investment
 To offer or improve opportunities and program (only from the government’s
supports regarding WSS initiatives and end); and
efforts;
 Disburse funds to the PMO for LGU-run
 To demonstrate a united and integrated projects.
sector with a common purpose and goal;
and DILG
 To work towards an integrated and  Receive, screen and endorse proposals
coordinated WSS sector. from LGU-run utilities;
 Prepare TOR and assist in the selection
and assist in the selection;
Working Together  Monitor progress of implementation and
The following principles govern liaise between the LGU and the PMO;
collaboration initiatives: and

 A conviction that we can be more  Liaise between the PMO and the LGU
effective by working together; and develop or implement a capacity-
building program for Level I and Level II
 A public service philosophy with the WSPs.
constituents at its core;
DOH, NWRB, DBM, DPWH,
 A commitment to transparency and
accountability; Regional NEDA Offices, and LGUs
 Review proposals that respond to
 A commitment to regular, open, and
inclusive communication; and programs and projects specific to the
agencies;
 A mutual respect for the distinct (though
overlapping) responsibilities and  Provide inputs to the TOR and assist in
undertakings of line agencies consistent the selection of consultants for the
with the overall thrust of the sector. respective projects of the agencies;
 Provide input to the disbursement
program, when appropriate;

135
  DOH shall liaise with the DILG on the  Provide feedback on project
needs for capacity-building regarding development and implementation.
sanitation;
NWRB shall facilitate the processing
6.5 Mechanisms

of water permit applications and ensure
a rational water allocation; and
 Disburse funds to the PMO for LGU-run and Processes
projects.

LWUA
(General)
 Receive, process, and endorse
proposals from WDs; PWSSMP and Investment
 Prepare TOR and assist in the selection; Program: Hard Components
 Implement DED/FS and other Planning and Programming
preparatory studies;
Regional WSS master plans set regional
 Prepare an updated disbursement targets and the regions’ contribution to the
program based on the status of DED/FS; national targets. These plans include
and establishing provincial and municipal WSS
 Procure and engage construction data and provincial strategies, programs,
supervision consultants to verify and identified projects. The data will be
disbursement to the WDs. entered into the Philippine WSS
Information System.
Water Districts and LGU-run
To aid planners, the PWSSMP also
Utilities includes a WSS systems planning
 Submit proposals to LWUA/DILG; overview and toolkit (attached as Annex F).
 Assist in the selection of consultants (if WSS Projects for Funding
required);
The process and mechanism for WSS
 Work with the consultants in regard to infrastructure projects for funding vary by
the DED/FS; component and mechanism (e.g., through
 Prepare for the implementation and LWUA, DILG, DPWH, DOH). These shall
construction of WSS systems, and be detailed and finalized during Phase 1.
submit requirements to LWUA and Progress Monitoring and
DILG; and
Assessment
 Engage contractors.
The progress of the PWSSMP shall be
monitored through the PWSSIS. The status
of projects will be updated by the
concerned province and validated by the
Regional NEDA and Provincial respective regions.
LGUs Monitoring of projects includes attribution
of approved WSS projects to the regional
 Provide regional and provincial data as
and national targets. Thus, progress in
well as targets and accomplishments
reference to national targets can be
based on agreed-on KPIs;
assessed, and appropriate actions can be
 Receive, review for completeness, and made to address concerns and improve
endorse proposals; performance.
 Monitor physical progress of projects Assessment of Performance
and disbursements through Local
In terms of achievement of national targets
Project Monitoring Committees; and
and commitments, assessment of

136
performance shall be done using PSA expected outcomes of the PWSSMP by KRA
data. and are supplemented by data on the time
frame and agencies responsible.
To ensure alignment and conformity with the
Key Reform Agenda: Soft government’s reporting system, the timing,
Component manner of, frequency, method of aggregation,
and other procedural elements of data
Implementation and M&E collection for the proposed success indicators
The eight KRA will be implemented by will abide by the protocol already established
various agencies. Section 6.5.1 provides by the government in monitoring and
the results-based matrix that indicates reporting its accomplishments.
which KRA are to be undertaken, the
responsible agencies, success indicators,
means of verification (e.g., data sources),
and timeline.
NEDA, PMO, and DWR shall evaluate the
progress of work in the KRA.

6.5.1 Results-Based
Monitoring and Evaluation
Matrix
The results-based monitoring and
evaluation matrices below summarize the

Table 47: Results-Based Monitoring and Evaluation Matrix

WSS Sector Outcomes

Reform Means of
Success Data Source Time Frame
Outcome Verification
Water Percentage of households with National NEDA, PSA 2019
access to safe water supply surveys onwards
increased
Sanitation Percentage of households with National NEDA, PSA 2019
access to basic sanitation surveys onwards
increased
KRA No. 1: Establishing Effective WSS Sector Institutions

Means of
Reform Outcome Success Data Source Time Frame
Verification
WSS service Number of WDs Water utility LWUA, 2019
providers meeting key meeting KPI targets accomplishment NWRB, onwards
WSS performance reports MWSS
targets

Synergy of efforts in the MOUs between and Copies of signed NGAs 2019
fulfillment of WSS- among NGAs in the MOUs onwards
related agency WSS sector
mandates
MAJOR OUTPUTS

 WSS apex body established

 Local WSS Development Office established
 Capacity-building programs developed and implemented for LGUs (WSPs, WSS Development
Office), WDs, and LWUA
 LGU-led water utilities transformed into either economic enterprises or with PSP/PPP
 Study on possible amalgamation of WSPs conducted 137
 PD 198 amended
 KRA No. 2: Strengthening the Regulatory Environment

Means of Time
Reform Outcome Success Data Source
Verification Frame
Stronger Percentage of JV agreements Copies of NEDA, 2019
enforcement of reflecting the consumer safeguard approved JV LWUA onwards
regulatory provisions identified by the contracts
guidelines to Government of the Philippines
protect
Percentage of consumer LWUA and NEDA, 2019
customers’
complaints resolved WD reports LWUA onwards
interests and to
ensure the Number of days to approve NWRB board NWRB 2019–
viability of requests for tariff adjustment resolutions 2020
WSPs shortened
Percentage of households Provincial DOH, PHOs 2019
inspected for compliance to set Health Office onwards
sanitation standards (PHO)
monitoring
reports
MAJOR OUTPUTS

 Legal opinion on legality of JV contracts as affirmed by DOJ, Office of the Government Corporate
Counsel (OGCC) released
 Regulator clearly identified
 Transparent bidding procedures established
 Contracts with clearly defined investment schedules, service obligations, and penalties enforced
 Responsive tariff structure developed
 Tariff review processes improved and expedited
 NWRB guidelines for granting of water permits and CPCs to private operators reviewed and
rationalized
 Water permits granted to NIA reviewed
 WRC established

KRA No. 3: Creating and Ensuring Effective WSS Services

Means of
Reform Outcome Success Data Source Time Frame
Verification
WSS service No. of days within which Consumer LWUA, DILG, 2019 onwards
integrated in its WSS service is approved surveys DOH, LGUs,
approach and from time of request reduced WDs
operation
Percentage of households Water utility LWUA, DILG, 2019 onwards
provided with both WSS ser- reports DOH, LGUs,
vices WDs

MAJOR OUTPUTS
 WSS services well designed (with emphasis on residents in geographically isolated and de-
pressed areas [GIDA] and who belong to poor communities, indigenous people, and other mar-
ginalized sectors)
 Community awareness of the importance of water quality and the causes of water pollution raised
 Appropriate and sustainable WSS facilities and infrastructure built
 WSS services in annual local development programs integrated and mainstreamed

138
KRA No. 4: Balancing Water Supply and Demand

Means of Time
Reform Outcome Success Data Source
Verification Frame
Optimized No. of WSPs with non-traditional Water utility LWUA, 2019
utilization of water sources (e.g., rainwater, accomplishment LGUs, WDs onwards
available water recycled floodwater) formed reports
sources
No. of hectares of watershed Forest NWRB, 2019
protected Management DENR (FMB onwards
Bureau (FMB) and RBCO),
and RBCO LGUs
reports
Percentage of NRW reduced Water utility LGU, LWUA, 2019
accomplishment NWRB onwards
reports

Per capita consumption reduced Water utility NWRB, LGU, 2019

Regulated without downgrading the standard accomplishment LWUA onwards
water demand of living reports

MAJOR OUTPUTS
 IWRM councils formed
 River basin studies completed
 Potential water sources developed
 Bulk water supply at provincial and/or river basin levels established
 Policies on the efficient use of water implemented
 Wastewater reclaimed and recycled
 Nontraditional water sources (e.g., rainwater) explored and developed
 New pipelines and appurtenances replaced and/or installed
 System pressure regulated
 Number of sanitation projects increased

KRA No. 5: Building Climate Resiliency

Means of
Reform Outcome Success Data Source Time Frame
Verification

Climate-resilient Percentage of water utilities with LWUA and LWUA, DOH 2019
WSS infrastructure water security plan approved DOH records onwards
and services
Percentage of flood control and DPWH, DPWH, 2019
drainage structures built with HLURB HLURB onwards
retarding/retention basins for records
future use

MAJOR OUTPUTS

 Climate resiliency measures passed and made mandatory

 New WSS systems located, designed, and constructed taking climate risks into consideration
 WSS systems improved and made climate-resilient
 Sanitation systems designed to consider volume reduction and changes in wastewater
characteristics and ecosystems
 Water efficiency standards of water fixtures issued and included as a provision of the Building Code
and Plumbing Code
 Guidelines requiring labelling of efficiency of water use of water fixtures issued
 Watersheds protected and rehabilitated

139
 KRA No. 6: Enabling Access to Funding and Financing

Means of Time
Reform Outcome Success Data Source
Verification Frame
Increased Percentage in financing and LWUA, records LWUA, GFIs, 2019
investments in funding (by amount and type) of GFI and PFI PFIs onwards
the WSS sector increased

Percentage in number of LWUA, GFI and LWUA, GFIs, 2019

WSPs with access to PFI records PFIs onwards
financing and funding
increased

MAJOR OUTPUTS

 URAF fully implemented

 LWUA financing policies and transaction processes streamlined
 WSPs and LGUs trained in accessing financing
 Funding arrangements consolidated through LWUA
 More competitive and flexible terms of GFIs effected

KRA No. 7: Managing Data and Information

Means of
Reform Outcome Success Data Source Time Frame
Verification

Comprehensive, Increase in the number of PSA website NEDA, PSA 2019

harmonized, WSS performance indicators onwards
integrated, up-to- harmonized with SDG WSS
date and reliable indicators
WSS database of
the Philippines
Increase in the number of Philippine WSS Apex body, 2019
SDG-related WSS indicators database NEDA onwards
captured by Philippine WSS (interim)
database within 6 months

Data from WSS 100.0% of data used in NGA planning NGAs 2020
Information reporting WSS performance and onwards
System readily taken from Philippine WSS implementation
available and database documents
regularly used by
policy-makers,
line agencies,
LGUs, and WSS
partners, and
WSS service
providers

MAJOR OUTPUTS
 Guidelines and framework for the harmonization and integration of WSS data drafted
 Philippine WSS Information System developed
 Data custodians in the apex body trained in WSS Information System
 Law compelling data custodians to timely and regularly enter and upload WSS-related data
passed

140
KRA No. 8: Driving Research and Development
Means of
Reform Outcome Success Data Source Time Frame
Verification
Use and adoption Percentage in per capita LWUA, WDs, LWUA, 2019
of innovative consumption reduced MWSS, NWRB NWRB, onwards
WSS records MWSS, DILG,
technologies and LGUs
cost-effective
solutions
Satisfaction with sanitation Customer WDs 2019
services (with particular focus satisfaction onwards
on innovation and cost) kept surveys, WD
up records
Sanitation service fees
maintained or reduced

MAJOR OUTPUTS
 Research and Development Division and division in charge of accrediting WSS-related new
technologies at apex body formed
 Accreditation process of new technologies related to WSS improved
 Studies on innovative technologies and cost-effective solutions adopted and properly implemented;
government financial support for local WSS-related inventions sustained
 Studies on advance infrastructure design and construction methodology solutions adopted,
enforced, and properly implemented
 Philippine WSS database made responsive to macro-level WSS research and development
requirements

141
 Glossary
Annual Poverty Indicators A nationwide survey that presents data on the socioeconomic
Survey (APIS) profile of Filipino families, and other information that relates to
their living conditions. (PSA)
Basic Sanitation Facility Use of improved facilities which are not shared with other
households
Basic Water Facility Drinking water from an improved source provided collection time
is not more than 30 minutes for a roundtrip including queuing
Black Water Wastewater containing feces or other remnants of sanitary use
(UN International Groundwater Resources Assessment Center)
Biological Oxygen Demand A measure of the amount of oxygen removed (respired) from
aquatic environments by aerobic microorganisms either in the
water column or in the sediments. (DENR)
Climate Climate in a narrow sense is usually defined as the average
weather, or more rigorously, as the statistical description in terms
of the mean and variability of relevant quantities over a period of
time ranging from months to thousands or millions of years. The
classical period for averaging these variables is 30 years, as
defined by the World Meteorological Organization. The relevant
quantities are most often surface variables such as temperature,
precipitation, and wind. Climate in a wider sense is the state,
including a statistical description, of the climate system. In various
chapters in this report different averaging periods, such as a
period of 20 years, are also used. (Intergovernmental Panel on
Climate Change [IPCC], 2012)
Climate Change A change in the state of the climate that can be identified (e.g., by
using statistical tests) by changes in the mean and/or the
variability of its properties and that persists for an extended
period, typically decades or longer. Climate change may be due to
natural internal processes or external forcing, or to persistent
anthropogenic changes in the composition of the atmosphere or in
land use. (IPCC, 2012)
Cold Days/ Cold Nights Days where maximum temperature, or nights where minimum
temperature falls below the 10th percentile, where the respective
temperature distributions are generally defined with respect to the
1961-1990 reference period. (IPCC, 2012)
Creditworthy WSPs Self-sustaining WSPs capable of accessing financing from GFIs
and/or PFIs (LWUA)
Domestic Consumption (Use) Water used for household purposes such as washing, food
preparation and showers . It is the quantity, or quantity per capita,
of water consumed in a municipality or district for domestic uses
or purposes during a given period. It sometimes encompasses all
uses, including the quantity wasted, lost, or otherwise
unaccounted for.
Disaster Risk Reduction Denotes both a policy goal or objective, and the strategic and
instrumental measures employed for anticipating future disaster
risk; reducing existing exposure, hazard, or vulnerability; and
improving resilience. (IPCC, 2012)
Drinking Water Water intended for human consumption or for use in food
preparation.
Effluent Discharges from a known source passing into a body of water or
land, or wastewater flowing out of a manufacturing plant, industrial
plant including domestic, commercial and recreational facilities.
Effluent Standard Any legal restriction or limitation on quantities, rates, and/or
concentrations or any combination thereof, of physical, chemical
or biological parameters of effluent which a person or point source
is allowed to discharge into a body of water or land.

142
El Niño-Southern Oscillation A warm-water current that periodically flows along the coast of
Ecuador and Peru, disrupting the local fishery. It has since
become identified with a basin-wide warming of the tropical Pacific
Ocean east of the dateline. This oceanic event is associated with a
fluctuation of a global-scale tropical and subtropical surface
pressure pattern called the Southern Oscillation. This coupled
atmosphere-ocean phenomenon, with preferred time scales of 2 to
about 7 years, is collectively known as the El Niño-Southern
Oscillation. It is often measured by the surface pressure anomaly
difference between Darwin and Tahiti and the sea surface
temperatures in the central and eastern equatorial Pacific. During
an ENSO event, the prevailing trade winds weaken, reducing
upwelling and altering ocean currents such that the sea surface
temperatures warm, further weakening the trade winds. This event
has great impact on the wind, sea surface temperature, and
precipitation patterns in the tropical Pacific. It has climatic effects
throughout the Pacific region and in many other parts of the world,
through global teleconnections. The cold phase of ENSO is called
La Niña. (IPCC, 2012)

Environmental Management A system which includes, but is not limited to, conservation,
regulation and minimization of pollution, clean production, waste
management, environmental law and policy, environmental
education and information, study and mitigation of the
environmental impact on human activity, and environmental
research.

Flood The overflowing of the normal confines of a stream or other body

of water, or the accumulation of water over areas that are not
normally submerged. Floods include river (fluvial) floods, flash
floods, urban floods, pluvial floods, sewer floods, coastal floods,
and glacial lake outburst floods. (IPCC, 2012)
Governance The way government is understood has changed in response to
social, economic, and technological changes over recent decades.
There is a corresponding shift from government defined strictly by
the nation-state to a more inclusive concept of governance,
recognizing the contributions of various levels of government
(global, international, regional, local) and the roles of the private
sector, of non-governmental actors, and of civil society. (IPCC,
2012)

Groundwater Subsurface water in which the pressure is equal to or higher than

the local atmospheric pressure. In other words: water below the
water table or phreatic level. (UN-International Groundwater
Resources Assessment Center)

Integrated Water Resources A process which promotes the coordinated development and
Management management of water, land and related resources to maximize
economic and social welfare in an equitable manner without
compromising the sustainability of vital ecosystems and the
environment.
Landslide A mass of material that has moved downhill by gravity, often
assisted by water when the material is saturated. The movement
of soil, rock, or debris down a slope can occur rapidly, or may
involve slow, gradual failure. (IPCC, 2012)
Latrine A structure, usually consisting of a hole in the ground that is used
as a toilet.
Level I Water Source Point source;
This service level provides a protected well or a developed spring
with an outlet but without a distribution system. Hence, the users
go to the source to fetch water. Level I sources are generally
adaptable in rural areas where the houses are thinly scattered.
These sources serve an average of 15 households within a radius
of 250 meters.

143
 Level II Water Source Communal faucet system or stand post;
A piped system composed of a source, a reservoir, a piped
distribution network, and communal faucets. Each communal or
public faucet usually serves four to six households within a radius
of 25 meters. Users still go to the supply point (communal faucet)
to fetch water. This type of system is generally suitable for rural
and urban fringe areas where houses are clustered densely to
justify a simple piped system.
Level III Water Source Waterworks system;
This system includes a source, a reservoir, a piped distribution
network, and individual household taps. It is generally suited for
densely populated urban areas where the population can afford
individual connections.
Limited Sanitation Use of improved facilities shared between two or more households.

Limited Water Drinking water from an improved source where collection time
exceeds 30 minutes for a round trip, including queuing.
Millennium Development Goals Eight international development goals for the poorest people for the
year 2015. It was established during the Millennium Summit of the
UN in 2000. (UN Development Programme)
Morbidity Rate Number of deaths due to a disease divided by the total population.
(DOH)
Non-Revenue Water Water that has been produced and is "lost" before it reaches the
customer.
Open Defecation Disposal of human feces in fields, forests, bushes, open bodies of
water, beaches or other open spaces or with solid waste.
Public private participation Contractual arrangements entered into by the government with the
private sector.
Runoff That part of precipitation that does not evaporate and is not
transpired, but flows through the ground or over the ground surface
and returns to bodies of water. (IPCC, 2012)
Safely managed Water Facility Drinking water from an improved water source which is located
within premises, available when needed and free from fecal and
priority contamination.
Safely managed Sanitation Facility Use of an improved sanitation facility which is not shared with other
households and where excreta are safely disposed on-site or
transported and treated off-site.
Sanitation A wide range of services and arrangements pertaining to the
hygienic and proper management of human excreta (feces and
urine) and community liquid wastes to safeguard the health of
individuals and communities;

A process pertaining to preventing diseases by hindering

pathogens or disease-causing organisms found in excreta and
sewage from entering the environment and coming into contact
with people and communities;

The construction of adequate handling, collection, treatment, and

disposal or reuse facilities and the promotion of proper hygiene
behavior, so that facilities are effectively used at all times.
(Philippine Sanitation Roadmap)
Sanitation Facilities On-site facilities such as toilets and septic tanks for safe disposal
of human waste.
Sanitation Services Management of excreta from the facilities used by individuals,
through emptying and transport of excreta for treatment and
eventual discharge or reuse. (UNICEF/WHO Joint Monitoring
Programme)
Septage The sludge produced in individual onsite wastewater-disposal
systems, principally septic tanks and cesspools.
Septage Management Comprehensive programs for managing septic tanks and the
procedures for the desludging, transporting, treating and disposing
of septic tank contents.
Sewage Waterborne human or animal wastes, excluding oil or oil wastes,
removed from residences, buildings, institutions, industrial and
commercial establishments together with such groundwater,
surface water and storm water as maybe present including such
waste from vessels, offshore structures, other receptacles intended
to receive or retain wastes, or other places (or the combination
144 thereof)
 Sewerage which include, but are not limited to, any system or network of
pipelines, ditches, channels, or conduits including pumping
stations, lift stations and force mains, service connections
including other constructions, devices, and appliances
appurtenant thereto, which involves the collection, transport,
pumping and treatment of sewage to a point of disposal.
Sludge Any solid, semi-solid or liquid waste or residue generated from
a wastewater treatment plant, water supply treatment plant, or
water control pollution facility, or any other such waste having
similar characteristics and effects.
Sustainable Development Goals Also known as Global Goals, which build upon the successes
of the MDGs. It has 17 goals for year 2030 that call to action to
end poverty, protect the planet and ensure that all people
enjoy peace and prosperity. (United Nations Development
Programme)
Surface Water Water located on the surface of the Earth, such as in streams,
rivers, and lakes. (UN-International Groundwater Resources
Assessment Center)
Treatment Any method, technique, or process designed to alter the
physical, chemical or biological and radiological character or
composition of any waste or wastewater to reduce or prevent
pollution.
Tropical Cyclone The general term for a strong, cyclonic-scale disturbance that
originates over tropical oceans. Distinguished from weaker
systems (often named tropical disturbances or depressions) by
exceeding a threshold wind speed. A tropical storm is a
tropical cyclone with one-minute average surface winds
between 18 and 32 m s-1. Beyond 32 m s-1, a tropical cyclone
is called a hurricane, typhoon, or cyclone, depending on
geographic location. (IPCC, 2012)
Unified Resource Framework The URAF-WSS is a framework that aims to address the
Allocation (URAF) fragmented and uncoordinated approach in funding and
implementing WSS projects across the country and will aid the
achievement of universal access and improved service
standards. It intends to address the inequitable delivery of
basic WSS infrastructure caused by inadequate funding, low
technical capacities of small service providers, and institutional
challenges through the development of a common structure for
rationally allocating available resources towards expediting the
improvement and expansion of WSS services provision.
Unimproved Drinking Water Drinking water from an unprotected dug well or unprotected
spring.
Unimproved Sanitation Facility Use of pit latrines without a slab or platform, hanging latrines
and bucket latrines.
Vulnerability Degree of loss to a given element or set of elements at risk
resulting from a hazardous phenomenon of a given magnitude.
Warm Days/Warm Nights Days where maximum temperature, or nights where minimum
temperature exceeds the 90th percentile, where the respective
temperature distributions are generally defined with respect to
the 1961-1990 reference period. (IPCC, 2012)
Water Supply The share of water abstraction which is supplied to users
(excluding losses in storage, conveyance and distribution).
(Global Water Partnership)
Waste Any material either solid, liquid, semisolid, contained gas or
other forms resulting from industrial, commercial, mining or
agricultural operations, or from community and household
activities that are devoid of usage and discarded.
Wastewater Waste in liquid state containing pollutants.
Wastewater Treatment A process used to convert wastewater into an effluent
(outflowing of water to a receiving body of water) that can be
returned to the water cycle with minimal impact on the
environment or can be directly reused.
Water Pollution Any alteration of the physical, chemical or biological or
radiological properties of a water body resulting in the
impairment of its purity or quality.
Water Quality The characteristics of water which define its use in terms of
physical, chemical, biological, bacteriological or radiological
characteristics by which the acceptability of water is evaluated.

145
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