2014 Grassroots Participatory Budgeting Process PROVISION OF POTABLE WATER SUPPLY

PROGRAM ADVOCACY, SECTOR ASSESSMENT AND FEASIBILITY STUDY PREPARATION WORKSHOP10 – 12 February 2014Hotel Koresco, Cagayan de Oro City

Department of the Interior and Local Government Office of Project Development ServicesWATER SUPPLY & SANITATION PROGRAM MGT OFFICE

WATER SECTOR OVERVIEW

OUTLINE OF PRESENTATION• Global and Local Commitments • Overview of the Water Sector

- Access and Service Coverage- Water Service Providers- WSP Performance- Financing and Investments- Tariff Regulations- Key Players in the Water Sector

• Sector Issues and Challenges• Development Outcomes & Strategies

- Institutional Strengthening- Capacity Development- Strategic Alliance Building

• Priority Plans and Programs• Way Forward

Global and National Commitments Millennium

Development Goal (MDG) # 7

MDG GOALS Halving the population by 2015 with access to safe water supply & basic

sanitation”Philippine Development Plan

(2011-2016)SALINTUBIG

Where all waterless municipalities will have water supply for at least 50% of their total

population by 2016.”Philippine Water Sector Roadmap

UNIVERSAL COVERAGEWhere all municipalities will have

improved water supply for 100% of their total population by 2025.”

Overview of the Water Sector1. Major Uses of Water and Utilization

Fisheries

Environment

Tourism Industry

Domestic and Sanitation

Agriculture

Power

Water

Municipal, 6,266.87 , 3%

Irrigation, 66,948.47 ,

35%

Industrial, 8,252.40 , 4%Power,

110,079.08 , 57%

Others, 1,568.16 , 1% Municipal,

6,266.87 , 7%

Irrigation, 66,948.47 ,

81%

Industrial, 8,252.40 ,

10%

Others, 1,568.16 , 2%

Institutional fragmentation Lack of an executive and legislative

sector champion Inadequate Support for Rural Water

Supply Low Tariff and Cost-Recovery Level Low Performance of Water Utilities Weak and Fragmented Regulatory

Framework Inadequate Sector Investment and

Financing Lack of WSS Sector Information

ISSUES AND CHALLENGESSource: Philippine Water Supply Sector Roadmap

Overview of the Water Sector1. Access and Service Coverage

Served Population (80 %) Un-served Pop (20 %)

44 % Level 3

25 % Level I

10 % Level 2

WD 20%

POs5%

LGUs & CBOs20%

LGUs and CBOs35 %

Self provision through private wells, tanked or vended water supply, or piped supply provided by SSIPs

Source: WB Report, Philippines: Meeting Infrastructure Challenges, 2005

WD: Water Districts, POs: Private Operators; LGUs: Local Government Units; CBO: Community Based Organizations; SSIPs: Small Scale Independent Providers

NEDA Board No. 12 Definition of TermsLevel 1 (point source)Level 2 (communal faucets)Level 3 (Household Connections)

Overview of the Water Sector2. Water Service Providers

LGUs

Water Districts

Coops

BWSAsRWSAs

Private Sector

WSP NUMBER

LGU 1,000

Water District 580

Coops 200

RWSAs/BWSAs 3,600

Private Sector 9

TOTAL 5,389

Source: PWSSR Updated

Overview of the Water Sector3. Low Performance of Water Utilities

Overview of the Water Sector4. Financing and Investments

PhP 442.3 B total national government expenditure for infrastructure

PhP 97.3 B (22%) allocated for all water-related infrastructure

PhP 3.7 B (3.8%) was allocated for water supply with the rest going to irrigation and flood control

Source: DBM 2001 to 2007

Overview of the Water Sector5. Key Players in the Water Sector

Policy Making

NEDA

Coordination/ Regulatory

NWRB

EMB,DOH,BRL, EOHO

FMB,BSWM.NIA.NPC

LLDA, RDC, RBCO, PEZA

BRS, NAMRIA, MGB, LWUA, NIA, MWSS

PCAFNRRD, PCAMRD

Water Quality & Sanitation

Watershed Management

Integrated Area Development

Data Collection Research

Water Supply

DOF, NEDA, CDA, MWSS, LWUA, DILG,

LGUs, DAR, NAPC,DSWD

NIA, BSWM, DA, DAR

NPC, DOE, NEA

DPWH, OCD, NDCC,PAGASA

FAR, PTA

Irrigation Hydro-power Flood Management Fisheries & Research

Existing Institutional Arrangement

Water Supply

MWSS DPWH/LWUA

WDs2 Concessionaires

DILG-OPDS/WSSU

LGU-managed

R/BWSAs; CBOs

CDA

Cooperatives

HUDC, NAPC, EPZA, SBMA

Note: 31 Water supply agencies

Other WSPs

Ring-fencing of LGU Water Utility Accounts

Sector Issues and Challenges6. Weak and Fragmented Regulatory Framework

• Primary regulatory agencies:- National Water Resources Board- Local Water Utilities Administration- Local Government Units

• Special Regulatory Units- Subic Bay Regulatory Board- MWSS Regulatory Office

Sector Issues and Challenges7. Lack of WSS Sector Information

LWUA

DILG

LGUs

NAPCNSO

DOH DSWD

DPWH DA

MWSS

Strategies

Institutional Strengthening

Capacity Building

Strategic Alliance Building

Development Outcomes & Strategies

Institutional Strengthening

• Harmonized & mainstreamed institutional framework

• Strengthened economic & resource regulation

• Strengthened local structures & mechanisms

Strategic Alliance Building

• Empowered communities effectively participating in water supply development

• Champions bearing the water agenda into higher order of priorities in policy making & programming

• Established multi-actor collaboration mechanisms

• Localized collective action

Capacity Building

• Enhanced LGU capacity in- Policy formulation- Water services planning- M & E- Fiscal management

• Efficient and financially sustainable WSPs

• Improved NGA support services for WSPs & LGUs

Priority Plans and Programs

SAgana at LIgtas Na TUBIG sa Lahat Program 2011 - 2016

Grassroots Participatory Budgeting Process 2013 - 2016

DILG CAPACITY DEVELOPMENT FRAMEWORK

LGUs(WATSAN Councils/

Teams)

WSPs ( LGU-managed,

Water Districts, BWSAs, Coops, Private Operators)

Sector Planning

Develop proposals, prepare DEDImplement Sector Projects

Formulate Policies, local ordinancesregulates water tariffs

Operate and Manage

Maintain the facilities

Ensures that water supply provided conforms with PNSDW

Ensures to expand service coverage

STAKEHOLDERS

MAJOR FUNCTIONS

Program Components1. Infrastructure Investments

Rehabilitation/Expansion/Upgrading of Level 2 and 3 water supply systems including appropriate water treatment facilities;

Construction of Level 2 water supply systems including appropriate water treatment facilities;

In areas where only Level 1 systems is feasible, construction and rehabilitation of Level 1 systems including appropriate water treatment facilities;

Support for new innovative technologies for water supply facilities

Program Components2. Capacity Development

Program AdvocacyFormation /organization and training of

WATSAN Councils and Water Users’ Associations in the following areas:

i Sector Planningii Implementationiv Operation and Maintenance - Ring Fencing and Water Safety Plan v Monitoring and Evaluation

Technical Assistance, Mentoring or Coaching

GPBP Water Capacity Development Program

1. Program Orientation and Simplified FS Preparation2. Sector Assessment, Planning and Programming3. Detailed Engineering Design and Construction Supervision4. Procurement and Fund Management5. Local Water Governance and Strategic Communication for the WATSAN Councils6. Community Organizing and Skills Development7. Operation and Maintenance - For LGU-Managed, Ring-fencing, Business

Planning & Contracting - For BWSAs, Simple Bookkeeping & Accounting,

O & M (e.g. repairs and maintenance)8. Water Safety Plan Preparation9. Monitoring and Evaluation