1. 2014 Grassroots Participatory Budgeting Process PROVISION OF POTABLE WATER SUPPLY PROGRAM ADVOCACY, SECTOR ASSESSMENT AND FEASIBILITY STUDY PREPARATION WORKSHOP 10 – 12 February 2014 Hotel Koresco, Cagayan de Oro City Department of the Interior and Local Government Office of Project Development Services WATER SUPPLY & SANITATION PROGRAM MGT OFFICE WATER SECTOR OVERVIEW

2. 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

3. 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 COVERAGE Where all municipalities will have improved water supply for 100% of their total population by 2025.”

4. Overview of the Water Sector 1. Major Uses of Water and Utilization Fisheries Environ ment Tourism Industry Domestic and Sanitation Agriculture Power Water

5.  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 CHALLENGES Source: Philippine Water Supply Sector Roadmap

6. Overview of the Water Sector 1. Access and Service Coverage Served Population (80 %) Un-served Pop (20 %) 44 % Level 3 25 % Level I 10 % Level 2 WD 20% POs 5% LGUs & CBOs 20% LGUs and CBOs 35 % 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 Terms Level 1 (point source) Level 2 (communal faucets) Level 3 (Household Connections)

7. Overview of the Water Sector 2. Water Service Providers LGUs Water Districts Coops BWSAs RWSAs Private Sector WSPNUMBER LGU1,000 Water District580 Coops200 RWSAs/BWSAs3,600 Private Sector9 TOTAL5,389 Source: PWSSR Updated

8. Overview of the Water Sector 3. Low Performance of Water Utilities

9. Overview of the Water Sector 4. 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

10. Overview of the Water Sector 5. Key Players in the Water Sector Policy Making NEDA Coordination/ Regulatory NWRB EMB,DOH,BRL, EOHO FMB,BSWM.NIA.NP C 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

11. Existing Institutional Arrangement Water Supply MWSSDPWH /LWUA WDs 2 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

12. Sector Issues and Challenges 6. 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

13. Sector Issues and Challenges 7. Lack of WSS Sector Information LWUA DILG LGUs NAPC NSO DOHDSWD DPWH DA MWSS

14. Strategies Institutional Strengthening Capacity Building Strategic Alliance Building

15. 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

16. Priority Plans and Programs SAgana at LIgtas Na TUBIG sa Lahat Program 2011 - 2016 Grassroots Participatory Budgeting Process 2013 - 2016

17. DILG CAPACITY DEVELOPMENT FRAMEWORK LGUs (WATSAN Councils/ Teams) WSPs ( LGU-managed, Water Districts, BWSAs, Coops, Private Operators) Sector Planning Develop proposals, prepare DED Implement Sector Projects Formulate Policies, local ordinances regulates water tariffs Operate and Manage Maintain the facilities Ensures that water supply provided conforms with PNSDW Ensures to expand service coverage STAKEHOLDERS MAJOR FUNCTIONS

18. Program Components 1. 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

19. Program Components 2. Capacity Development  Program Advocacy  Formation /organization and training of WATSAN Councils and Water Users’ Associations in the following areas: i Sector Planning ii Implementation iv Operation and Maintenance - Ring Fencing and Water Safety Plan v Monitoring and Evaluation  Technical Assistance, Mentoring or Coaching

20. GPBP Water Capacity Development Program 1. Program Orientation and Simplified FS Preparation 2. Sector Assessment, Planning and Programming 3. Detailed Engineering Design and Construction Supervision 4. Procurement and Fund Management 5. Local Water Governance and Strategic Communication for the WATSAN Councils 6. Community Organizing and Skills Development 7. 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 Preparation 9. Monitoring and Evaluation