Orientation on

Water Permit Application &

Listahang Tubig Database

OVERVIEW
THE ROLES OF DILG &
LGUs IN WATER SUPPLY
DEVELOPMENT

Date : March 28, 2023

 OUTLINE OF PRESENTATION

1. Introduction – DILG and LGU roles in Water

Supply Development
2. Issues related to Water Permit – from M&E
activities
3. Issues related to Listahang Tubig – LGU
utilities profiling & Performance Benchmarking
4. Way Forward
 DILG’S ROLE IN
WATER SUPPLY DEVELOPMENT
 5

ROLES OF DILG IN WASH SECTOR

LGC 1991

Sec. 25, Article. 1, CHAPTER III of RA 7160- 

National Government supervision over Local Government Units

Section 17 (f), RA 7160

The national government or the next higher level of local government unit may provide or
KRA 2
augment the basic services and facilities assigned to a lower level of local government
when such services are not made available or, if made available, are inadequate to meet
the requirements of each inhabitant.
 ROLES OF DILG IN THE WASH SECTOR

PWSSMP

Strengthening the Regulatory Environment

KRA 2 Priority Action: Issue guidelines for LGUs to adopt a cost-based methodology that will promote financial
sustainability.

Create and Ensure Effective WSS Services

KRA 3 Priority
KRA 2 Action: Conduct of needs assessment, capacity building, training and mentoring programs for LGU-
Managed WS

Balancing Water Supply and Demand

KRA 4 Priority Action: Encourage WSPs implement NRW Reduction Program (Leak Detection) to achieve
standard performance
KRA 4
 ROLES OF DILG IN THE WASH SECTOR

Executive Order No. 138

Full Devolution of Certain Functions of the Executive Branch to Local
Governments, Creation of Committee on Devolution and for other purposes

Section 5 - Devolution Transition Plans (DTPs) – the NGAs and LGUs shall prepare
DTPs which conform with the guidelines to be issued by DBM and DILG

Section 8 - Growth Equity Fund (GEF) – to address issues on marginalization,

unequal development, high poverty incidence and disparities in the net fiscal capacities
of LGUs.

Section 9 - Capacity Development – the DILG shall oversee the provision of capdev
interventions for local government, and shall develop the appropriate mechanisms to
ensure efficient utilization of government resources.
 7

M & E Functions of DILG

Monitoring the compliance with the

Pre-Implementation Program requirements thru Annex A.1.1 to
Stage Annex A.1.4 of DILG MC 2021-040
(Omnibus Guidelines for Monitoring)

Implementation Monitoring thru Subaybayan, QAAR tools,

Stage and Non-infrastructure Templates

Post-Implementation Rapid Sub-project Sustainability

Stage Assessment (RSSA), after a year of
completion
 Governance Reforms on LGU Infrastructure Development

1 2 3 4
Local Local Local Local
Local Infrastructure Infrastructure Infrastructure Infrastructure
Information Development Construction & Asset
Management Planning Maintenance Management
Infrastructure
Management
5 6 7
Public Budgeting, Expenditure
Internal Procurement
Financial Management,
Management Audit and Revenue Generation
8
8 Cross-Cutting: Monitoring & Evaluation

The LGSF Programs serve as entry points to introducing governance reforms to LGUs
DILG WASH PROGRAMS
FY 2012- FY 2022

NO. OF ALLOCATION
PROGRAM
SPs (Php in Millions)
SALINTUBIG 2,996 11,184.95
BUB-WATER 3,309 8,118.86
AM-WATER 1,822 7,192.28
LGSF-WATER 602 647.22
FALGU-WATER 151 700.03
GEF-WATER 34 81.57
DRRAP-WATER 43 45.46
SBDP-WATER 722 3,029.09
Total 9,679 30,999.46
 LGU’S ROLE IN
WATER SUPPLY DEVELOPMENT
RESPONSIBILITIES OF LOCAL GOVERNMENTS
AMONG OTHERS

Section 16 (General Welfare)

LGU shall exercise the power xxx necessary, xxx for its efficient and
effective governance; xxx. LGUs shall ensure and support, among
other things, xxx promote health and safety, xxx of their inhabitants.

Section 17 – Basic Services & Facilities

LGU shall endeavor xxx exercise such other powers and discharge
such other functions xxx or incidental to efficient and effective
provisions of basic services and facilities xxx.
 DEVOLVED BASIC SERVICES AND FACILITIES
Section 17 Devolution of responsibilities to provide basic services and facilities to LGUs

Multi-purpose Agriculture (crops, Public Infrastructure Purchase of ambulance, Evacuation

(roads, bridges, flood Sea wall/
halls/buildings livestock, fisheries trucks, mini dump trucks, Centers
control) river wall
multi-purpose vehicles, or
multi-cabs

Public Parks Fish Ports Slaughterhouses

Water supply system

Communal Irrigation

Street Lighting or
Public Markets Education &
Barangay
Health Services
Electrification
 ROLES OF LGUs IN THE WASH SECTOR

Executive Order No. 138

Section 5 - Devolution Transition Plans (DTPs) – the NGAs and LGUs shall prepare
DTPs which conform with the guidelines to be issued by DBM and DILG

Section 8 - Growth Equity Fund (GEF) – was included to address issues on

marginalization, unequal development, high poverty incidence and disparities in the net
fiscal capacities of LGUs.

Section 10 – Roles of LGUs

1. Prepare DTPs in close coordination with NGAs,
2. Formulate Capacity Devt agenda based on assessment framework and guidelines
issued by DILG-LGA
3. Formulate communications plans and strategies aligned with the communication
plan formulated and approved by the Committee on Devolution (Comdev)
 Findings and Observations
Related to Water Permit
(From DILG Technical Assistance & Monitoring
and Evaluation)
 ISSUES IN WATER PERMIT
From: M&E during Pre-implementation Stage

1. Is it necessary to have water rights even if water system facilities are provided by
LGU?
2. If the main water source is tapped by several users (WSPs) thru individual
collection box, does it need a separate water permit for each collection box?
3. Clarification on Diversion Point (2 LGUs in conflict).
4. LGUs have difficulty preparing the ECC as part of the water permit requirements.
Can the NGAs provide assistance to LGUs in this concern?
5. If a concessionaire is already given a water permit, and if the other users are
tapping from its water source, will there be a penalty imposed to the latter?
6. What are the approved water permit fees? Are they paid annually?
7. In addition to water permit fee, is there an additional fee to be paid (e.g. annual
billing)?
8. Can water permit application be localized?
9. Is the tariff set and approved by the SB Members need to be regulated or reviewed
by NWRB?
Findings and Observations Related to
Listahang Tubig
(From DILG Technical Assistance
& Monitoring and Evaluation)
 DILG Focus Area

1370
Total Municipalities

842
Municipalities w/o WD
529
Municipalities
or NonOp WD operational WD
Key
DILG Performance* LWUA
Indicators

560 132
Not LGU-run/
53 44 53
LGU-MANAGED Private BWSA/RWSA BLGU run No Submission

As of Jan 31, 2023 *Philippines Small Town Water Utilities Data Book by GoP and World Bank
 KEY PERFORMANCE INDICATORS (KPIs)
RATING SYSTEM
KEY PERFORMANCE
STANDARDS
INDICATORS POOR GOOD
OUTSTANDIN
G

KRA 3 Water Coverage (%) 65-75% <64% 65-75% 76-100%

Water Availability (hours) 24 HRS <17 18-23 24
Create and Ensure Non Revenue Water 20-25% >25% 20-25% <20%
Effective WSS less than 1 of operating ratio from
Services Operating Ratio the tariff are able to cover the O & >1 <1
Priority Action:
m Cost
Conduct of needs
assessment, Revenue Collection Efficiency (%) 90-98% <90% 90-98% 100%
capacity building, at least 5% of beneficiary income is
training and Average Tariff (Php/m³) >5% 5%
spent in water dues - (13.06/m3)
mentoring programs
for LGU-Managed Staff/1,000 Connections (ratio) 7 >7 7 <7
Water Utilities Average Monthly Consumption 15-18 cubic meter/connection NO DATA 15-18
Connections Metered (%) 90-99% <90% 90-99% 100%

Reference: Philippines Small Town Water Utilities Data Book by GoP and World Bank
 MAJOR WATER SERVICE PROVIDERS IN THE 842 MUNICIPALITIES
As of Jan 31, 2023

OPERATING UNITS WITHIN THE LGUS

NOT LGU MANAGED
RWSA; 4; 0% WATERWORKS 174
COOPERATIVE 5
BLGU RUN UTILITY; 44; 5%
WATER DISTRICT 13 MUN ENG’G OFFICE 167
BWSA; 50; 6%
CONGRESSIONAL NO SUB-
10 MISSION; MEEDO 83
DISTRICT
62; 7%
BALIBAGO 24 NOT LGU LGU MANAGED,
MAYOR’S OFFICE 56
MANAGED, 128, 560, 66%
MWSS 6 15% OTHERS** 46
PHIL HYDRO 2 MUN PLANNING DEV’T
OFFICE
16
OTHER PRIVATE
12
OPERATORS
MUN TREAURER’S OFFICE 10
OTHERS BUT NOT
56 MUN BUDGET OFFICE 2
SPECIFIED
TOTAL 128 TOTAL 560
Others** - e.g. DRRMO, Tourism, not identified
LGU-Managed Water Utilities vs KPIs Key Performance Indicators
KPI 1 Water Coverage
Standards
65-75%
KPI 2 Water Availability 24 HRS
KPI 3 Non-Revenue Water 20-25%
KPI 4 Operating Ratio Less than 1
KPI 5 Revenue Collection Effi ciency 90-98%
KPI 6 Average Tariff P13.06/m3
KPI 7 Staff /1k connection 7 staff
KPI 8 Ave.Monthly Consumption 15-18 cum/connection
KPI 9 Metered Connections 90-99%

Analysis:

a) LGU-run Water Utilities struggle or have problem with:

1. KPI 1 - Water Coverage
2. KPI 5 - Revenue Collection Efficiency
*Good = Outstanding + Good 3. KPI 6 - Average tariff
4. KPI 7 -Staff per 1k connection
5. KPI 9 – Metered Connections
b) Training related to these KPIs should be formulated and
conducted, and the following training interventions are proposed:

1. KPIs 1 and 9 are related to water sources, and the training on

Water Source Development (WSD) and Detailed Engineering
Designs (DED) could help address these concerns;
2. KPIs 5, 6 and 7 are related to finance and institutional aspect of
operation, and could be covered by the training :
Strengthening WSPs with expanded modules on tariff and
collection, and UoF training / roll-out.

c) In terms of data submission, more than 40% without data (no

submission) was noted in KPIs 2,3,4,5,6, and 8 which may
be assumed not recorded or not considered in the utility
operations.
 ISSUES AND CHALLENGES FOR WSPs
From: M&E, capdev interventions
1. Many LGU-managed WS and other Water Service Providers (WSPs) have poor
performance (KPIs) and lack the capacity to perform their obligation of ensuring an
effective WSS Services;
2. LGU-run Utilities are highly subsidized by the LGUs, fragmented, lack funds and do
not have business plans to improve and expand the delivery of services;
3. Many WSPs have low & inadequate water tariff to cover at least the cost of O&M;
4. Most of the WSPs have failed to serve the whole franchise area (Barangays) and to
meet the norms and standards (i.e. water quality, quantity, accessibility and
affordability)
5. Water Supply systems or structures are not properly designed and constructed,
6. The operational cost and revenues are mixed with LGU general fund (not ring-
fenced).
 Way Forward
1. Continue Capacity Development activities – using Utilities
of the Future assessment tools, NRW, economic enterprise,
local governance, following the GRA;

2. Utility Business Planning – mapping and profiling of assets,

assessment current condition, proposed improvement and
expansion, and financing; and

3. WSS Proposal (AiWASH) submitted for FY 2024 funding -

focusing on LGU-run utilities.
THANK YOU!