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The Forgotten Sector: The Forgotten Sector: Sanitation and Sanitation and Sewerage in the Sewerage in the PhilippinesPhilippines

Ben EijbergenBen Eijbergen

Infrastructure Sector CoordinatorInfrastructure Sector Coordinator

World Bank Office ManilaWorld Bank Office Manila

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The Forgotten Sector: The Forgotten Sector: Sanitation and Sewerage Sanitation and Sewerage in the Philippinesin the Philippines

Sector overview and performanceSector overview and performance

Policy and institutional frameworkPolicy and institutional framework

Market structure of water service Market structure of water service providersproviders

Investment needs and financingInvestment needs and financing

Main issuesMain issues

RecommendationsRecommendations

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Sector Overview Sector Overview

SanitationSanitation – interventions (usually – interventions (usually construction of facilities such as latrines) construction of facilities such as latrines) that improve management of excreta; that improve management of excreta; on-site facilities such as toilets and septic on-site facilities such as toilets and septic tankstanks

SewerageSewerage – the entire system of – the entire system of wastewater collection, treatment and wastewater collection, treatment and disposal; pipe networks to off-site disposal; pipe networks to off-site treatment and disposaltreatment and disposal

Sanitation and sewerage investment Sanitation and sewerage investment usually lumped with water supply usually lumped with water supply

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Sector OverviewSector Overview

Indiscriminate disposal of wastewater is one Indiscriminate disposal of wastewater is one main reason for degradation of water qualitymain reason for degradation of water quality

Adverse effects:Adverse effects:

– HealthHealth: Spread of disease-causing bacteria & : Spread of disease-causing bacteria & virusesviruses

– Aquatic ecosystemAquatic ecosystem: Decline in fishery production : Decline in fishery production due to pollution due to pollution

– AestheticsAesthetics: Poor quality of water makes water unfit : Poor quality of water makes water unfit for recreation for recreation

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Sector OverviewSector Overview

HealthHealth In 1996-2000 approximately 31% In 1996-2000 approximately 31% of illnesses monitored were of illnesses monitored were attributed to waterborne sourcesattributed to waterborne sources

PhP3.3 billion PhP3.3 billion per year in per year in avoidable avoidable health costhealth cost

Aquatic Aquatic ecosysteecosystemm

Fish yields reported to have Fish yields reported to have declined by 30%- 5% due to declined by 30%- 5% due to sedimentation and silt pollution; sedimentation and silt pollution;

PhP17 billion PhP17 billion lost due to lost due to degradation of degradation of fisheries fisheries environmentenvironment

TourismTourism Decline in occupancy (e.g. Decline in occupancy (e.g. Boracay island in 1997 due to Boracay island in 1997 due to high levels of coliform); high levels of coliform);

P47 billion for P47 billion for avoidable avoidable losses in losses in tourismtourism

OthersOthers Damage claims due to Damage claims due to environmental degradation (e.g. environmental degradation (e.g. income and livelihood)income and livelihood)Overall economic loss due to water pollution: $1.3 billion a yearOverall economic loss due to water pollution: $1.3 billion a year

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Sector PerformanceSector Performance

Source: NSO

Access to Sanitary Toilets, Access to Sanitary Toilets, 20042004

All familiesAll families 86%86%

Upper 70% Upper 70% income income stratumstratum

93%93%

Lower 30% Lower 30% income income stratumstratum

70%70%

Access rates Access rates compare favorably compare favorably with neighboring with neighboring countries countries

BUT does not BUT does not necessarily reflect necessarily reflect access to access to satisfactory satisfactory sanitationsanitation

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Sector PerformanceSector Performance

0 20 40 60 80 100

Hong Kong OsakaSeoul

Chengdu Tashkent

Kuala LumpurShanghai

Delhi Karachi

Ulaanbaatar Phnom Penh

Colombo Dhaka

KathmanduHo Chi Minh City

Manila Jakarta

Vientiane

Sewerage Access, Selected Asian Cities, Sewerage Access, Selected Asian Cities, 2001/20022001/2002

Percent

Only about 4% Only about 4% of the of the population had population had access to access to sewerage in sewerage in 20002000

Outside Metro Outside Metro Manila, access Manila, access to sewerage to sewerage network almost network almost non-existent non-existent

Source: Asian Development Bank. 2004. Water in Asian Cities: Utilities Performance and Society Views. Manila.

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Main Laws and Main Laws and RegulationsRegulations

19591959 National Plumbing CodeNational Plumbing Code

19751975 Sanitation CodeSanitation Code

19761976 Water Code; establishment of NWRBWater Code; establishment of NWRB

19771977 National Building Code;National Building Code;

Philippine Environmental CodePhilippine Environmental Code

19911991 Local Government CodeLocal Government Code

Shifted responsibility of water supply Shifted responsibility of water supply and sanitation services to LGUsand sanitation services to LGUs

20042004 Clean Water ActClean Water Act

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Government Institutions Government Institutions Involved in Involved in Sanitation and SewerageSanitation and Sewerage

DOHDOH Promotion and formulation of standards Promotion and formulation of standards and rules and regulations on proper waste and rules and regulations on proper waste disposaldisposal

DENRDENR Regulation of effluent quality and quantity Regulation of effluent quality and quantity

MWSSMWSS Provision of sewerage systems in Metro Provision of sewerage systems in Metro Manila through MWCI and MWSIManila through MWCI and MWSI

LWUALWUA Development of water districts to plan and Development of water districts to plan and implement municipal sewage or sewerage implement municipal sewage or sewerage systemssystems

LGUsLGUs Enforcement of anti-pollution regulation Enforcement of anti-pollution regulation from domestic wastewater; provision of from domestic wastewater; provision of sanitation servicessanitation services

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Market Structure of Market Structure of Water Service ProvidersWater Service Providers

Institutional Institutional fragmentationfragmentation

– At utility level: At utility level: proliferation of proliferation of provider models provider models and their small and their small sizessizes

– At national level: At national level: fragmentation of fragmentation of oversight oversight responsibilitiesresponsibilities

WDs 14%

PU 10%

LGU/ CBO 20%

LGU/CBO - 35%

79% with access to formal levels of service 21% no access

Complementary services provided by SSIPs and/or Self Provision

44% Level 310%

Level 225% Level 1

Private wells Tankered/vended

waterPiped supply

SSIPs and/or self provision by

households - 21%

Legend:CBO = community-based organization LGU = local government unitPUs = private operatorsSSIP = small-scale independent providerWDs = local water districts

Level 1 = a protected well or a developed spring with an outlet but without a distribution system

Level 2 = a piped system with communal faucets Level 3 = a piped system with individual household taps

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Investment Needs and Investment Needs and FinancingFinancing

Water, 97%

Sanitation and

Sewerage, 3%

Source: C. Ancheta (2000), WPEP: Urban and Sanitation - 3 Years of Experience and Lessons

Annual Average Investment inAnnual Average Investment inWater Supply vs. Sanitation and SewerageWater Supply vs. Sanitation and Sewerage

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Investment Needs and Investment Needs and FinancingFinancing

CoveragCoverage Areae Area

Population Population

(in million)(in million)Service Coverage Service Coverage

(in million) (in million) Investment Investment

requirement requirement

(in PhP B)(in PhP B)

20052005 20152015 20052005 20152015 20052005 20152015

UrbanUrban 48.85 48.85 (58%)(58%)

55.58 55.58 (60%)(60%)

9.77 9.77 (20%)(20%)

27.79 27.79 (50%)(50%)

55.6955.69 158.40158.40

RuralRural 35.37 35.37 (42%)(42%)

37.06 37.06 (40%)(40%)

17.69 17.69 (50%)(50%)

18.53 18.53 (50%)(50%)

50.4250.42 52.8152.81

Sub-Sub-TotalTotal

84.22 84.22 (100%)(100%)

92.64 92.64 (100%)(100%)

27.46 27.46 (33%)(33%)

46.32 46.32 (50%)(50%)

106.11106.11 211.21211.21

Program SupportProgram Support

Operating Costs UrbanOperating Costs Urban 3.913.91 11.1211.12

Operating Costs RuralOperating Costs Rural 6.286.28 6.586.58

TotalTotal 130.09130.09 256.37256.37Notes: Investment requirement was computed based on constant 2002 rates. Support activities were estimated at 13% of the Capital Cost.Source: ADB, 2001

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Main IssuesMain Issues

Lack of leadership; no identified lead Lack of leadership; no identified lead authority on sanitation authority on sanitation

Low priority given by the National Low priority given by the National Government and LGUsGovernment and LGUs

Low demand due to inadequate Low demand due to inadequate information on appropriate sanitation information on appropriate sanitation practicespractices

Underinvestment and lack of financingUnderinvestment and lack of financing

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RecommendationsRecommendations

Reinforce public awareness-building measures Reinforce public awareness-building measures regarding the impacts of inadequate S&S regarding the impacts of inadequate S&S

Review and clarify accountability for planning, Review and clarify accountability for planning, construction, operation and regulation of S&S construction, operation and regulation of S&S infrastructureinfrastructure

Assist LGUs and local utilities develop Assist LGUs and local utilities develop strategies and plans for sanitation strategies and plans for sanitation improvementimprovement

Allocate funding from the government to Allocate funding from the government to provide incentives for LGUs and utilities in provide incentives for LGUs and utilities in sewerage investmentssewerage investments