The Forgotten Sector: Sanitation and Sewerage in the Philippines

1. The Forgotten Sector: Sanitation and Sewerage in the Philippines Ben Eijbergen Infrastructure Sector Coordinator World Bank Office Manila

2. The Forgotten Sector: Sanitation and Sewerage in the Philippines • Sector overview and performance • Policy and institutional framework • Market structure of water service providers • Investment needs and financing • Main issues • Recommendations

3. Sector Overview • Sanitation – interventions (usually construction of facilities such as latrines) that improve management of excreta; on-site facilities such as toilets and septic tanks • Sewerage – the entire system of wastewater collection, treatment and disposal; pipe networks to off-site treatment and disposal • Sanitation and sewerage investment usually lumped with water supply

4. Sector Overview • Indiscriminate disposal of wastewater is one main reason for degradation of water quality • Adverse effects: • Health: Spread of disease-causing bacteria & viruses • Aquatic ecosystem: Decline in fishery production due to pollution • Aesthetics: Poor quality of water makes water unfit for recreation

5. Sector Overview Overall economic loss due to water pollution: $1.3 billion a year

6. Sector Performance Access to Sanitary Toilets, 2004 • Access rates compare favorably with neighboring countries • BUT does not necessarily reflect access to satisfactory sanitation Source: NSO

7. Sector Performance Sewerage Access, Selected Asian Cities, 2001/2002 • Only about 4% of the population had access to sewerage in 2000 • Outside Metro Manila, access to sewerage network almost non-existent Percent Source: Asian Development Bank. 2004. Water in Asian Cities: Utilities Performance and Society Views. Manila.

8. Main Laws and Regulations

9. Government Institutions Involved in Sanitation and Sewerage

10. Market Structure of Water Service Providers • Institutional fragmentation • At utility level: proliferation of provider models and their small sizes • At national level: fragmentation of oversight responsibilities Legend: CBO = community-based organization LGU = local government unit PUs = private operators SSIP = small-scale independent provider WDs = 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

11. Investment Needs and Financing Annual Average Investment inWater Supply vs. Sanitation and Sewerage Source: C. Ancheta (2000), WPEP: Urban and Sanitation - 3 Years of Experience and Lessons

12. Investment Needs and Financing Notes: Investment requirement was computed based on constant 2002 rates. Support activities were estimated at 13% of the Capital Cost. Source: ADB, 2001

13. Main Issues • Lack of leadership; no identified lead authority on sanitation • Low priority given by the National Government and LGUs • Low demand due to inadequate information on appropriate sanitation practices • Underinvestment and lack of financing

14. Recommendations • Reinforce public awareness-building measures regarding the impacts of inadequate S&S • Review and clarify accountability for planning, construction, operation and regulation of S&S infrastructure • Assist LGUs and local utilities develop strategies and plans for sanitation improvement • Allocate funding from the government to provide incentives for LGUs and utilities in sewerage investments