The Water Supply Sector

Provision

• Supply. Although the country has per capita water availability twice as much as the rest of Asia and six times above the global scarcity threshold, the water resource configuration of the country is uneven and diffuse due to the archipelagic character of the country and the resource degradation among the islands. Level of resource also varies from island to island due to uneven rainfall and population distribution.
• Demand. Water demand is expected to increase every year due to population growth and other factors. In a low growth scenario, overall agricultural demand in 2025 will be 2.8 times the demand in 1995. Projected demand increases are higher in the domestic and industrial sector. The National Water Resource Board (NWRB) has projected that nine major cities will experience critical water needs by 2025.
• Access and Coverage. Trends from different agencies show that overall access to water supply services and sanitation facilities has declined. In fact, according to the World Health Organization and the United Nations Children Fund, overall access to improved water services in the Philippines has declined from 87% in 1990 to 85% by 2002.

Institutional Arrangement

• Agencies involved. The key national agencies for the water sector are the National Economic Development Authority (NEDA), Department of Public Works and Highways (DPWH), Department of Finance (DOF), Department of Interior and Local Government (DILG), Department of Environment and Water Resources (DENR), National Anti-Poverty Commission (NAPC), Local Water Utilities Administration (LWUA), and the National Water Resources Board (NWRB). Local government units (LGUs) also play a critical role due to their area management role in local territories.
• Policy and planning. The current water sector planning approach tends to dichotomize urban and rural areas. Planning is further hampered by lack of reliable data and regular monitoring. In addition, the public sector cannot keep pace with the growing demand for water.
• Financing and Investment. Water supply financing and investment are characterized by lack of effective demand and responsive supply. It is lower than other infrastructure spending and biased in favour of other urban areas.
• Service Provision. There is an urban-rural dichotomy in source development; most of the 6,000 registered water service providers serve urban areas. As for wastewater management, it was estimated in 2000 that only 4-5% were connected to sewerage systems.
• Regulation. The three primary regulating bodies are: the NWRB, LWUA, and LGUs and special regulatory units such as the Subic Bay Regulatory Board

Issues and Challenges

• Issues. Issues for the water sector include disparities in water supply coverage across regions, depletion of groundwater, pollution, lack of cost recovery on investments, institutional weakness, and low willingness of consumers to pay.
• Root causes. Water sector issues are rooted in the fragmented institutional environment, weak regulatory framework, inadequate support for service providers and utilities, and weak access to financing and investments.
• Challenges. The government must address the issues of the water sector by improving the institutional environment, developing the capacity of sector agencies, and building alliances among development champions across all branches of the government.

Source:

“Overview of the Water Supply Sector.” Philippine Water Sector Roadmap, November 2008, pp. 11-29.