Republic of the Philippines

BAYAWAN WATER DISTRICT

Lot 1 Blk N, DGV Subd, Villareal, Bayawan City, Negros Oriental

BUSINESS PLAN
2018-2027

Document Control:

VERSION NO. : 02

Formulation Date : February 2018

Approvedby : Board of Directors

BOD Resolution No. 016 s. of 2018

Approval Date : 1st Revision -February 7, 2018

Bayawan Water District

Business Plan
 BAWAD BUSINESS PLAN
(2018-2027)

TABLE of CONTENTS

PART PAGE

1 EXECUTIVE SUMMARY 4
2 BAWAD HISTORICAL BACKGROUND 4-5
3 STATEMENT of VISION-MISSION-CORE VALUES 8
4 SCOPE AND LIMITATION of the BUSINESS PLAN 8
5 EXTERNAL CONDITIONS 9
Hazards and Risks 9
Financing Availability 10-12
Water Demand Management Analysis and Sales Forecast 13 -14
6 INTERNAL CONDITIONS 15
Organizational Structure and Staffing 16
Challenges 17
7 STRATEGIC GOALS and STRATEGIES 18-21

8 MARKET GROWTH ANALYSIS 22-23

9 TEN YEAR CASHFLOW PROJECTIONS 24-27

10 BUSINESS PLAN REVIEW 28

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 LIST of TABLES

TABLE# TITLE PAGE

Table 1 Identified Hazards and Risks for BAWAD 9
Table 2 Sales Forecast in 5 Years 13
Table 3 NRW Forecast 5 Years 13
Table 4 CAPEX & NRW Program 14-15
Table 5 BAWAD Workforce 16
Table 6 Challenges of BAWAD 18
Table 7 BAWAD Vulnerability Assessment Matrix 20-21
Table 8 Water Source 23

LIST of FIGURES

PAGE
FIGURE# TITLE
5
Figure 1 Negros Oriental Map
5
Figure 2 Bayawan City Map
6
Figure 3 BAWAD Schematic Diagram
6
Figure 4 BAWAD Service Area- Urban
7
Figure 5 BAWAD Service Area-Hinterland
17
Figure 6 BAWAD Organizational Structure
23
Figure 7 Production Demand
24-25
Figure 8 5-Year Cashflow Projection

Bayawan Water District

Business Plan
EXECUTIVE SUMMARY

This Business Plan reflects the goals, targets, activities, projects and programs that will
contribute to the significant realization of BAWAD's mission and vision.

The strategic goals are initiated at the topmost level of the organization's hierarchy, the
Board of Directors. The 5-year targets for the respective goals are being determined by the
Management. Consequently, the Management commits annual initiatives for every goal - target.
It is also important to note that this Business Plan is cascaded to the lowest level of the
organization and to the individual targets of every employee.

It is important to note that this business plan gives attention and consideration to the
initiatives that address climate change resiliency and water security goals of the Water District
being the only water service provider of Bayawan City. Climate change resiliency is given
utmost importance as this has posed huge threats to the provision of a basic need, which is water.
Moreso, that the BAWAD sole source of raw water comes from the upland springs which is
vulnerable to natural calamities. Water security, on the other hand, is closely related to climate
change resiliency such that the former could not be assured with threat from climate change left
unresolved. As such, the result of the vulnerability assessment conducted plays an important role in
framing the goals and the corresponding initiatives and action plans that compose this Business
Plan. Also given importance are some other threats that are not necessarily climate-related but
contribute significantly to the vulnerability of the water supply system of BAWAD. One of these is
the high Non-Revenue Water which poses fright to water supply shortage and inefficiency in the
delivery of water services aside from health risk due to contamination during low pressure in the
water lines.

Similarly, other factors like service coverage expansion plans, rapid expansion/growth of
the new City, human resources availability and development concerns and even technology
advancement are given due considerations in the Business Plan.

Moreover, present and future financial capabilities of BAWAD including possible

partnerships , collaboration and external cooperation’s are considered in this Plan.

2 BAWAD BACKGROUND INFORMATION

Bayawan Water District (BAWAD) was formed thru SP. Resolution No. 79 series of 1982
in May 25, 1982 and was issued a Certificate of Conformance (CCC) on October 4, 1982 by the
Local Water Utilities Administration (LWUA). It was born as a self reliant quasi-public entity
with the implementation of the Provincial Water Utilities Act of 1973 or Presidential Decree 198,
which created on a local option basis , the water districts nationwide. However, through a Supreme
Court decision, all Water Districts in the country have been categorized as government-owned and
controlled corporation (GOCC) since March 1992.
Due to the requirement for a reliable water supply for a new City, BAWAD was
rehabilitated in 1998 through the LGU-DANIDA funds coursed through LWUA for a
Comprehensive Improvement Project. It operated with a new set of management in 2000 with
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Business Plan
initial connections of 411.
Today, average water production is at 184,032 cubic meters per month distributed to
consumers through transmission and distribution lines, 133 kilometers long.

As of December 2016, the District serves 5,617 service connections or a served

population of 33,600 over a total 117,900 population (NSO census 2015) representing about 29%
of the total estimated population of the whole City of Bayawan. It’s Total Asset grows up to
P80,165,816.45 million pesos from only P1,786,986.42 million pesos in Year 2000.

Currently, BAWAD has served nine (9) urban barangays and three (3) rural/hinterland
barangays of the City and one (1) barangay from Sta. Catalina, an annex Municipality.

Figure 1. Negros Oriental Map, Philippines -BAYAWAN

Bayawan, officially the City of Bayawan or simply Bayawan City, is a second-class component city [4] in the 3rd Congressional
District of the province of Negros Oriental,Philippines. At the 2015 census, it had a population of 117,900 people. Bayawan is
located about 100 kilometres (62 mi) from the Dumaguete City, the provincial capital and near the provincial border
with Negros Occidental. It is a coastal city with a land area of 69,908 hectares (172,750 acres), the largest in the province.
Mabinay bounds it to the north, Tanjay City and Bais City to the east, Sta. Catalina to the southeast and Basay to the west
and it also shares a boundary with Kabankalan City of Negros Occidental on the northwest.

Bayawan used to be known as New Tolong, and only had its modern name starting 1952.

Bayawan became a chartered city in December 2000,

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Business Plan
 Figure 2. Bayawan City Map

Figure 3 - BAWAD Transmission & Distribution Pipeline Schematic Diagram

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Business Plan
 Figure 4. BAWAD Service Area (Urban area)

Figure 5. BAWAD Service Area at hinterland Barangay ( rural area)

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Business Plan
3 STATEMENT of VISION-MISSION-CORE VALUES

MISSION/VISION :

Improved living conditions of the target population of Bayawan

City thru 24-hour clean drinking water

GOALS AND OBJECTIVES:

To provide 24-hour filtered potable water supply with consideration to sustain

shared neighborhood faucets, increased hygiene awareness and improved health situation to
the target population of Bayawan City

CORE VALUES :

Commitment

Teamwork

Environmental Stewardship

4 SCOPE AND LIMITATION of the BUSINESS PLAN

This Business Plan aims to achieve the following objectives:

1. To operationalize the Strategic Goals of the District, which are anchored on the

Balanced Scorecard framework considering the four (4) Perspectives of the Customers,
Internal Processes, Finance, Internal Processes Perspective, Learning and Growth of
Human Resources

2. To prioritize strategic initiatives relative to the attainment of the Strategic Goals

3. To identify the Financial requirements to attain Strategic Goals

The strategic goals that are included in this Plan are those that are seen implementable,
most relevant and the most necessary within a period of 5 years.

Bayawan Water District

Business Plan
5 EXTERNAL CONDITIONS

Hazards and Risks

The following hazards and risks are of important considerations in framing the initiatives
and prioritizing the same given the limited resources of the District. Based on the Vulnerability
Assessment that was conducted, the BAWAD has identified 8 major hazards and risks.

Table 1
Identified Hazards and Risks for BAWAD

No. Threats Vulnerability Rank System_Subsystem

1 Inadequate Water supply due to 5 1 Distribution system

high Non-revenue water (NRW)

2 Turbid Water 4 2 Water _Source_production

3 Water Quality Issue 4 3 Water

Source_Production_Distribution
System

4 Rapid Growth of the new City 3 4 Water

(urbanization/commercialization) supply_distribution_system

5 Revenue Reduction 2 5 Production_Billing_Finance

6 Low Pressure 2 6 Water

supply_reservoir_storage

7 Service Coverage 2 7 Water

supply_distribution_finance

8 Political Interference 1 8 Admin_BOD

As shown in the table, the first 3 identified risks impacts greatly on the water supply
system of the district that greatly affect the over-all operation down to revenue generation. The
water supply system of BAWAD is highly vulnerable to floods, increasing the risks of contamination
and water supply problem.

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Business Plan
 Financing Availability

BAWAD, a self-sustaining agency, prepares and implements budget on an annual basis

based on its revenues projected and generated during the year. Primary source of which comes from
the water sales. Secondary income source comes from other water revenues like new connection
fees, reconnection and the like. Financial requirements of the district include Personal Services,
Operating and Maintenance Expenses, Debt service, Capital Expenditures and Reserves. Major
projects are funded through loan borrowings from LWUA and other Government Banks like the
Land Bank of the Philippines (LBP) and the national Housing Authority (NHA). Details of loan
borrowings as follows:

I. P 30 Million Loan LWUA

On May 26, 2010, BAWAD has availed of the P30.00 Million loan with LWUA intended for
the improvement and expansion of the existing water supply system originally at:

PARTICULARS AMOUNT

1. Basic Construction Cost (___km 8ӯ Transmission Line) 25,540,000.00

2. Price and Physical Contingencies (___km 6ӯ Transmission Line) 1,022,000.00

3. Engineering Studies, 2% (review) 2,391,000.00

4. Construction Supervision 1,062,000.00

TOTAL PROJECT COST, say P 30,000,000.00

CLOSED As of February 2013 Accomplishment P 27,780,504.00

Due to the October 6, 2013 Calamity that struck Bayawan City, the massive flooding has caused
too much damage to the District facilities. In effect, revenues decreased and the District failed to pay its
regular loan amortization to LWUA. Due to strong efforts of the management and the kind consideration
of the LWUA, the district was given a debt relief. As of January 2016, the District has been regularly
paying its monthly amortization with LWUA.

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 II. P 5 Million Loan – Landbank of the Philippines

Particulars Amount

1. Pipe Bridge Crossings, Interconnection to existing distribution networks, Culvert 2,565,220.00

Special Bends

2. Rehabilatation of GK Village Distribution Mainlines 846,000.00

3. Pipelaying of 2ӯ Distribution line from Cansig-id road going to lower 230,150.00
Cabcabon, Banga

4. Pipelaying of 2ӯ Upvc pipeline going to Sitio Cansig-id, Banga 411,050.00

5. Pipelaying of 2ӯ Upvc pipeline along corner provincial highway Nangka to 211,500.00
Sitio Canalum

6. Fuel, Oil & Lubricants 150,000.00

7. Engineering & Supervision 159,688.00

8. Contingency 426,392.00

TOTAL 5,000,000.00

The initial P30 Million NLIF loan does not cover the cost of interconnection, pipe bridge
crossings, rehabilitation of GK Village, expansion of water supply services, among others were not
included in the original Program of Work of the availed NLIF loan hence, BAWAD applied for another
loan with the Landbank of the Philippines-Dgte in the amount of P 5 Million pesos.

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III. P 2.5 Million Loan from National Housing Authority for the Construction of Potable Water
Supply to Sitio Omod, Maninihon

- With the increasing population, Sitio Omod, Barangay Maninihon has no piped water and
incidence of water related diseases are rampant. Thru the initiative of the Honorable Congressman Pryde
Henry Teves, the BAWAD had availed of its National Housing Fund Allocation.

Particulars Amount

General Requirements: basic Construction Cost, Source Development, 2,394,023.00

Transmission, Distribution & service line pipelaying

Fuel, Oil, & Lubricants 50,000.00

Engineering Cost Charged to BAWAD

Contingency 71,820.69

TOTAL PROJECT COST 2,515,843.69

6. Fuel, Oil & Lubricants or 2,500,000.00

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Water Demand Management Analysis and Sales Forecast

The consumption pattern per connection over the years shows a stationary trend or
behavior. At the outset and from the point of view of climate change, this can be favorable.
However, this stationary trend may not be advantageous to the district for it will limit its
potential growth. The disturbing level of the NRW which was caused by the Calamity in the
Year 2013, greatly affects the revenue generation of the district. With the continued efforts of the
district to reduce the NRW to its minimum level and with the availment of Financial Assistance
of P220M to LWUA, it is possible to increase the water consumption per connection, thus,
resulting to an increase in Water sales and a reduced NRW to 20%.

Table 2
Sales Forecast in 10 Years
Year Total Sales

2018 37,043
2019 47,292
2020 66,615
2021 74,989
2022 79,343
2023 81,353
2024 83,362
2025 85,372
2026 87,382
2027 89,391

Table 3
NRW Forecast
Year NRW

2018 24%
2019 20%
2020 20%
2021 20%
2022 20%
2023 20%
2024 20%
2025 20%
2026 20%
2027 20%

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Business Plan
 To resolve the high NRW level of BAWAD, the district has partnered with the Maynilad
Inc., thru a Water Operator partnership (WOP) assisting BAWAD to improve its water and sanitation
services. This cooperative opportunity will enable BAWAD adapt to the best practices and improve
the efficiency and effectiveness of its operations.

Table 4
CAPEX Program
(2018-2027)
Project/Program/Activity Details Budget Financial Impact on WD Operations
Sources
1. Transmission Lines 1. Installation of 17500 lm P138,286,130.00 Loan 1. Increased
Pipelaying 14ӯUPVC pipes pressure/volume
2. Increased Service
Connections
2. Upgrade Manampa Purchase of additional P12,000,000.00 Loan 1. Improved Water Quality
Water Treatment Facility Softener
3. Pump Installation at 1. Installation of deepwell at P11,307,680.00 Loan 1. Additional Water
Upper Buli-buli Upper Buli-buli, Banga Source/Supply
2. Pipelaying of 767 Length 2. Additional New Water
Service Connection of
6ӯ pipes
100
4.Construction of 1000 Construction of corrugated P18,951,700.00 Loan 1.Improved water supply
cu.m. Reservoir at Upper ground Water Tank w/ P.E. and elevate pressure
Malabugas Liner resulting to an increase
water revenue
2. Additional Water
Service Connection
5. Construction of 1 unit Construction of 1000 cu.m. P17,000,000.00 Loan 1.Improved water supply
ground reservoir at Brgy ground reservoir at Brgy and elevate pressure
Villareal Villareal w/ booster pumps resulting to an increase
water revenue
2. Additional Water
Service Connection
8. Pro-poor New Sudsidized new installation for P9,000,000.00 Loan Increase or additional new
Installation Project low income families within the water service connection
service area of 2,500

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 6 INTERNAL CONDITIONS

Organizational Structure and Staffing

The Bayawan Water District has a total workforce 44 as shown in the table (Table 4)
below. Of these, 52% are job order basis while another 42% are Rank & File and some 6% are
management employees.

The district has been re-categorized under Category C in Year 2012 pursuant to the
revised Local Water District Manual on Categorization, Re-Categorization and Other related
matters (LWD MACRO).

Table 5
BAWAD Workforce

Existing
Number of Percentage to
Level of Position Number of
Positions TOTAL
Staff

GM 1 1 2%

Division Manager 2 2 4%

Rank & File 28 22 42%

Job Order 27 27 52%

Total 58 52 100%

Below, is the existing organizational structure of Bayawan Water District as approved by the
Department of Budget and Management (DBM).

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Business Plan
 Figure 6.
BAWAD Organizational Structure

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Challenges

Operating as a public utility that is solely dependent on the water sales to fund operations
and capital expenditures results in a huge financial challenge. The BAWAD, like all the water
districts in the country, does not receive any subsidy of any form from either the National or the
Local Government. Thus, the tariff policy remains a significant concern to be able to fund major
investments that are necessary to improve and expand services, for instance.

Other significant challenges that the BAWAD faces include political , legal and
institutional concerns. The Board of Directors, for example, are appointed by the Local Chief
Executive who is a political figure. In a number of instances, collection of payment for water
consumed and interference in the implementation of water rates adjustments and in some aspects
of the operations have become a concern with political figures. Other challenges are on scarcity
of skilled workers and able professionals joining the workforce.

The table below (Table 4) summarizes these challenges that behoove the District.

Table 6
Challenges of BAWAD

Challenges Descriptions

Staffing Capacity Limited number of candidate engineers

& other professionals

Organizational Creation of position & salaries are determined by some fixed

rules

Financial Difficulty in implementation of Water rates adjustment ;

collection issues

Political Can interfere in implementation of water rates adjustments;

difficulty
to collect from local government

Technical Limited technical training. If any, price may not be

allowed by government audit rules

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 7 STRATEGIC GOALS and STRATEGIES
The strategic goals are jointly agreed by both the Policy Making - body (Board of
Directors) and the Executive body (Management). The BAWAD strategic plan has a window of
five years but gets reviewed after 2 years. The new Plan (Revised 022018) is framed for the
period 2018 until 2027. The BAWAD's strategic plan contains 8 strategic goals.

The list below enumerates all 8 strategic goals under the four (4) different perspectives:

P1. CUSTOMERS PERSPECTIVE

STRATEGIC GOAL 1 : PROVIDE EXCELLENT CUSTOMER

SERVICE

STRATEGIC GOAL 2 : DELIVER 24-HOUR POTABLE, CLEAN

DRINKING WATER SUPPLY

P2. FINANCIAL PERSPECTIVE

STRATEGIC GOAL 3 : INCREASE COLLECTION EFFICIENCY FROM

A/R CUSTOMERS (BOTH ACTIVE & IN-
ACTIVE)

STRATEGIC GOAL 4: REDUCE NON-REVENUE WATER (NRW)

P3. INTERNAL PROCESSES PERSPECTIVE

STRATEGIC GOAL 5 : STRIVE FOR OPERATIONAL

EXCELLENCE

STRATEGIC GOAL 6 : ENSURE WATER SAFETY & CLIMATE

CHANGE RESELIENCY

P4. LEARNING & GROWTH PERSPECTIVE

STRATEGIC GOAL 7 : LINK PERFORMANCE &

INCENTIVES

STRATEGIC GOAL 8: ACCESS APPROPRIATE TECHNOLOGY &

INFORMATION

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 Success of each strategic goal is indicated and measured by specific quantitative targets.
To ensure attainment of these targets, the Strategic Goals are then cascaded to two Divisions
and down to the rank & file for tactical planning.

Strategic Goals 1 and 2 top the list of goals of the District. These are aimed at satisfying the
public who are the concessionaires of BAWAD. This being a public utility mandated to provide a
basic need of community, potable water services.

Goal #1 are to be implemented by both Divisions and units within the organization. The
action plans include implementation of customer service standards by all employees of the
District; implementation of the Citizen’s Charter and provision of a performance monitoring for
employees thru the Strategic Performance Management System (SPMS) matrix and the
customers to get updated of the development and progress of the District through full media
channels and transparency of all its programs through the BAWAD website,

Strategic Goal 2, is about provision of a 24 – hour clean, potable drinking water supply. The
BAWAD has maintained its commitment to provide a 24-hour supply to the populace of Bayawan
City and its whole service area. One initiative is the continuous improvement and rehabilitation of
the Manampa Water Treatment Facility and the development of additional Water Sources such as
the installation of new deepwell at Upper Buli-buli and the construction of 2 new Ground
Reservoir at Upper Malabugas and Brgy. Villareal. Also, the rehabilitation of the newly turned-
over reservoir of the LGU will aid the water supply need of the new City Center.

Other initiatives to help attain the 24-hour water availability are on improving pressure
management at the distribution level and reducing downtime. Specifically, one is to maximize the
use of LGU Water Tank which would greatly aid during peak hours. Second, is to upgrade the
pumping facilities of the district specifically the Cambulo and Nangka Pumping Stations.

The Financial Perspective has also 2 strategic goals, one of which is the Reduction of the NRW
to the LWUA Standard of 20% from 34%. The level of NRW at present is so high and is adversely
affecting the water service efficiency. Thus, the District considers this as a priority goal in the
next 5 years.

The district’s collection efficiency is pegged at 95%. The District is continually coping to its
commitment to reduce the A/R Customers balance especially the In-active accounts.

Under the Internal Processes Perspective, the Strategic Plan frames 2 goals: one is to strive
for operational excellence and the second is focused to ensure water safety and climate
change resiliency. The success indicator for the first goal is improvement on response time to
crucial customer services. On the other hand, second goal is measured in terms of the District's
percentage of compliance to the Philippine National Standard for Drinking Water (PNSDW) and
percentage of water surplus. In this Business Plan, the initiatives to help attain the targets of 100%
compliance to PNSDW.

The fourth and the most fundamental perspective is the Learning and Growth, which
focuses on the training needs and capacity building of the entire workforce. Also part of this
perspective is the attention given to appropriate technology and information. There are two (2)
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 goals framed in this perspective for the goal on human resource development program; one is
the capacity building program; 2nd is the teamwork, the ability of the staff to work together to
achieve the goals. Only 1 for goal on linking performance and incentive which is the strict
implementation of the Strategic Performance management System (SPMSP); and one initiative
to address access to appropriate technology and information.

Table 6 below summarizes the vulnerability assessment on BAWAD facilities with

corresponding identified adaptation measures.

Table 7
BAWAD Vulnerability Assessment Matrix

No. Threats System_Subsystem Adaptation_Option Strategic Goals

1 Inadequate Water Distribution system Reduce NRW level of the Reduce NRW
supply due to high identified pipelines/system
Non-revenue WOP with Maynilad Inc.
water (NRW) GIS Program Installation

Loan Availment –NRW

Program

2 Turbid Water Water _Source_production Rehabilitation & Improvement of the

improvement of Manampa existing Water
Water Treatment Facility Treatment Facility

Purchase of Softener
Tank

Adoption of new
Technologies/solutions

3 Water Quality Water Source_Distribution Additional Softener Tank Provision of budget for
Issue System the improvements
Installation of Treatment
Facility at Brgy Dawis & Aliis

4 Rapid Growth of Water Increased Provide additional water

the City supply_distribution_system commercialization/industri sources
alization
Improvement of the
existing water supply

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 system

5 Revenue Reduction Billing_Finance_revenue NRW reduction Reduce NRW

generation
Intensify collection

6 Low Pressure Water NRW Reduction Reduce NRW

supply_reservoir_storage
Improvement of Water Installation of Pressure
System Valves monitoring

Installation of additional
Water Reservoir

7 Service Coverage Water Partner LGU in developing Continuous outreach

supply_distribution_finance barangay water program
associations
PEWUP Project with VEI

Pro-poor program thru a

subsidized installation
cost

8 Political Admin_BOD Support LGU Management Partner LGU in progress

Interference with water projects and development

Specifically, the following areas of the system are specially given substantial attention in
this Plan: The Water source and the transmission and distribution system. These two aspects of
the operations and the system, in general, are key to water security and operations efficiency,
which are essential to claiming and living up to the District's Mission and Vision.

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 8 MARKET GROWTH ANALYSIS
A. Summary

Bayawan City has been rising up to the challenge of becoming one of the top Agri-
Industrial Capital of the Philippines.(please refer to Bayawan City Website)

Infrastructure and economic enterprise is on its construction phase the likes of the
availability of LTO, NBI Satellite Office and soon to be is the Call Center/Business Process
Outsourcing Companies, the opening of a new 300 bed capacity Private Hospital complete with
MRI and dialysis units- a PPP Project of the City and the opening of Puregold Store in the City
will bring consumers and day travelers to the City of Bayawan. Construction of a Gold Course
would soon follow with the Retirees Subdivision overlooking the Sulu Sea. The calm environment
and long coastline/seafront are conducive to expats because Dumaguete City is already congested
and some retirees are looking beyond Dumaguete ( Dumaguete is ranked No. 6 in the World safest
retirement haven for Expats).

A Coastguard headquarters will soon be operational with a land donated to them by the
City Government. There is also a proposal from two ship building companies to set-up their
production line in the City because of available land area, power lines supported by the City and
the Pagatban River which is wide and deep. Moreover, livelihood programs of the City
Government on mechanized farming due to lesser laborers tending the Sugarcane farms is now
operational. More livelihood programs on Inland Fishing, Bangus Fry Harvesting, Tailored bag
making, Vegetable Gardening, Fowl and Hog Contract raising, Cattle Dispersal are but a few of
the City’s support for massive economic growth to this lone City in the southernmost tip of
Negros Oriental.

Tourism destinations are being planned out by improving road accessibility and as a
corollary to rapid growth in urbanization is the demand for safe, potable drinking water.

The good Mayor Pryde Henry Teves, has also turn over to Bayawan Water District the 28
barangays to be served with safe drinking Water by Bayawan Water District. The existing system
in 2017 delivers 83 lps for the 6,000 active service connections. With this recent development of
the new City and pro-poor water connections funded by Vitens Evides International (VEI) and co
funded BAWAD internal generated corporate funds, the demand for water will increase to 165 lps
and 235 lps until year 2027. Without an increase in water tariff, the District will have to need an
infusion of new capital worth P220 Million pesos to fund the pipelaying of new transmission
lines, expansion of water treatment plant and develop Tagubang Spring as a new source. The new
Spring to be tap is located at 318 meters above sea level elevation and by means of gravity will be
conveyed through 14 inches transmission pipe to the City. The water quality of the Spring is
turbid during rains due to surface run-off mixing with Spring water and high Calcium hardness
due to the limestone formations prevalent in the locality. A filtration plant with dimineralizers
will be installed at elevation 165 meters above sea level, to be able to get a good pressure to avoid
power cost. It is envisioned that with this additional production, water demand of 235 lps will be
met and the nearby municipality of Sta. Catalina will also be serve by Bayawan Water District as
part of its service coverage.
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 In a Strategic planning workshop, BAWAD was able to forecast its 10-Year Water
Demand and its corresponding Water Sources to wit:

B. Water Source & Production Demand

Figure 7: Production Demand

GENERAL DATA : 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Total Active Connections 5,794 6,494 9,194 10,694 11,694 11,994 12,294 12,594 12,894 13,194 13,494
Mid-Year Connections 5,429 6,144 7,844 9,944 11,194 11,844 12,144 12,444 12,744 13,044 13,344
Market Growth/Year 700 2,700 1,500 1,000 300 300 300 300 300 300 300
Service Area Population 56,736 70,321 71,727 73,162 74,625 76,118 77,640 79,193 80,777 82,392 84,040
% Population Served 51% 46% 64% 73% 78% 79% 79% 80% 80% 80% 80%
Cons./Conn./Mo. (Cu.M.) 18 18 18 20 20 20 20 20 20 20 20
Billed Water ('000 Cu.M.) 1031 1,327 1,694 2,387 2,687 2,843 2,915 2,987 3,059 3,131 3,203
Production ('000 Cu.M.) 1,404 1,746 2,118 2,983 3,358 3,554 3,643 3,733 3,823 3,913 4,004

Table 8: Water Source

SOURCE
UTIL YEAR
IZE
CAPACITY
D
201
SOURCE 8 2019 2020 2021 2022 2023 2024 2025 2026 2027
(lps
(lps) ) (lps) (lps) (lps) (lps) (lps) (lps) (lps) (lps) (lps) (lps)
Existing Source:
Manampa Spring 1 54 54 54 54 54 54 54 54 54 54 54 54
Cambulo Pumping Reserv Reserv Reserv Reserv Reserv Reserv Reserv Reserv
Station 15 15 15 15 ed ed ed ed ed ed ed ed
Nangka Pumping Reserv Reserv Reserv Reserv Reserv Reserv Reserv Reserv Reserv
Station 3 3 3 ed ed ed ed ed ed ed ed ed
Omod Pumping
Station 3 3 3 3 3 3 3 3 3 3 3 3
Aliis Pumping Station 5 5 5 5 5 5 5 5 5 5 5 5
Dawis Pumping
Station 3 3 3 3 3 3 3 3 3 3 3 3

New Source:
Manampa Spring 2 80 50 50 50 50 50 50 50 50 50 50
Buli-buli Pumping Reserv Reserv Reserv Reserv Reserv Reserv Reserv Reserv
Station 30 30 30 ed ed ed ed ed ed ed ed
Camandagan Reserv Reserv Reserv Reserv Reserv Reserv Reserv Reserv
Pumping Station 5 5 5 ed ed ed ed ed ed ed ed
Tagubang Spring 100 100 100 100 100 100 100 100 100 100
Dawis Spring # 2 30 10 10 10 10 10 10 10 10 10
San Jose Pumping 80 10 10 10 10 10 10 10 10 10
Narra Proper Spring
Source 50 -
Ohot Narra Spring
Source 80 -

TOTAL SOURCE
CAPACITY(lps) 538 288 83 165 235 235 235 235 235 235 235 235

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Bayawan Water District

Business Plan
 9 TEN-YEAR FINANCIAL FORECAST
Figure 8.
In '000 pesos BASE SCENARIO - WITHOUT Water Rates Adjustments
Actual PROJECTIONS for the PROPOSED P157 Million Financial Assistance
GENERAL DATA : 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Total Active Connections 5,794 6,494 9,194 10,694 11,694 11,994 12,294 12,594 12,894 13,194 13,494
Mid-Year Connections 5,429 6,144 7,844 9,944 11,194 11,844 12,144 12,444 12,744 13,044 13,344
Market Growth/Year 700 2,700 1,500 1,000 300 300 300 300 300 300 300
Service Area Population 56,736 70,321 71,727 73,162 74,625 76,118 77,640 79,193 80,777 82,392 84,040
% Population Served 51% 46% 64% 73% 78% 79% 79% 80% 80% 80% 80%
Cons./Conn./Mo. (Cu.M.) 18 18 18 20 20 20 20 20 20 20 20
Billed Water ('000 Cu.M.) 1031 1,327 1,694 2,387 2,687 2,843 2,915 2,987 3,059 3,131 3,203
Non-Revenue Water 24% 24% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Production ('000 Cu.M.) 1,404 1,746 2,118 2,983 3,358 3,554 3,643 3,733 3,823 3,913 4,004
Effective Rate/Cu.M. 28.48 28.48 28.48 28.48 28.48 28.48 28.48 28.48 28.48 28.48 28.48
% Rate Increase 16% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Collection Efficiency 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98%
CASH RECEIPTS: In '000 pesos 13% 20% 16% 12% 11% 11% 12% 12% 12% 12% 13%
Current Water Sales 35,804 37,043 47,292 66,615 74,989 79,343 81,353 83,362 85,372 87,382 89,391
Collection of Prev. Yrs' Arrears 418 439 461 484 508 533 560 588 617 648 680
Other Receipts 4,687 7,351 7,719 8,105 8,510 8,936 9,383 9,852 10,345 10,862 11,405
TOTAL RECEIPTS 40,909 44,833 55,472 75,204 84,007 88,812 91,296 93,802 96,334 98,892 101,476

CASH DISBURSEMENTS:
O&M
Salaries 8,101 10,500 11,465 15,762 22,019 23,120 24,276 25,490 26,765 28,103 29,508
Power for Pumping 1,660 1,751 1,839 1,931 2,028 2,129 2,235 2,347 2,464 2,587 2,716
Chemicals 938 985 1,034 1,086 1,140 1,197 1,257 1,320 1,386 1,455 1,528
Other O & M 22,319 23,435 24,607 25,837 27,129 28,485 29,909 31,404 32,974 34,623 36,354
Fixed
Cost 11,700 12,285 12,899 13,544 14,221 14,932 15,679 16,463 17,286 18,150 19,058
Variable
Cost 10,619 11,150 11,708 12,293 12,908 13,553 14,231 14,943 15,690 16,475 17,299
Total O & M 33,018 36,671 38,945 44,616 52,316 54,931 57,677 60,561 63,589 66,768 70,106

Debt Service - - - -

P 30 M LWUA Loan 4,566 2,914 2,914 2,914 2,914 2,914 2,914 2,914 2,914 2,914 2,914

P 5 M Landbank Loan 883 883 883 883 883 - - - - - -

NHA Loan 334 334 334 334 334 334 - - - - -

Other Accounts Payable 864 500 500 500 500 500 500 500 500 500 500

Proposed Loan (150M -LWUA) - - 5,000 19,872 19,872 19,872 19,872 19,872 19,872 19,872 19,872

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Bayawan Water District

Business Plan
CAPEX 3,139 2,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

Franchise Tax 278 741 946 1,332 1,500 1,587 1,627 1,667 1,707 1,748 1,788

Reserves 200 500 1,419 1,998 2,250 2,380 2,441 2,501 2,561 2,621 2,682
TOTAL
DISBURSEMENTS 43,282 44,543 53,941 75,449 83,569 85,518 88,031 91,015 94,143 97,423 100,862
CASH INFLOW (DEFICIT) -2,373 290 1,531 -245 438 3,294 3,265 2,787 2,191 1,469 614
ADD: BEG. CASH BALANCE 2,928 555 845 2,376 2,131 2,569 5,863 9,128 11,915 14,106 15,575
ENDING CASH BALANCE 555 845 2,376 2,131 2,569 5,863 9,128 11,915 14,106 15,575 16,189

WATER RATES: (Effec.) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Minimum Charge 230.00 230.00 230.00 230.00 230.00 230.00 230.00 230.00 230.00 230.00 230.00
11 - 20 cu.m. 24.30 24.30 24.30 24.30 24.30 24.30 24.30 24.30 24.30 24.30 24.30
21 - 30 cu.m. 29.20 29.20 29.20 29.20 29.20 29.20 29.20 29.20 29.20 29.20 29.20
31 - 40 34.30 34.30 34.30 34.30 34.30 34.30 34.30 34.30 34.30 34.30 34.30
41 up 39.50 39.50 39.50 39.50 39.50 39.50 39.50 39.50 39.50 39.50 39.50
3 Months O & M Ceiling 8,255 9,168 9,736 11,154 13,079 13,733 14,419 15,140 15,897 16,692 17,527

The 10-year Cash-flow projection of the District reflects the Capital Expenditures,
Operating costs, debt service, tariff and revenue projections. The major investments needed to
implement adaptation measures identified in the vulnerability assessment shall be funded through
loans and revenue generated for each year. At the same time, the District will continue to search
for partners and potential donors for possible technical assistance to implement and continue
implementation of proposed and already started programs that will address these goals.

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Bayawan Water District

Business Plan
SUMMARY OF ASSUMPTIONS FOR EACH PROJECTED YEAR
CASH FLOW ASSUMPTIONS

( X ) FINANCIAL ASSISTANCE ( ) DEBT RELIEF ( ) WATER RATES APPROVAL

RECEIPTS:

 Number of Service Connections – per ( ) POW ( X ) Water District

- The implementation of PEWUP Project between the district and VEI starting Year 2018-2021
will increase additional connection to 5,000 for a period of 4 years.
 Monthly Average Consumption/HH (18 cu.m.) per ( x ) Historical ( ) POW( ) WD
- Increased to 20 cu.m. with Commercialization and Industrialization of Bayawan City
 Non-Revenue Water (NRW) : 24% as of December 31, 2017
 Effective Rate / cu.m.: P 28.48/cu.m.
 Collection Efficiency : 98% actual (2018)

 Other Receipts:
o Collection of Accounts Receivables (A/R)
 Escalation of 5% increase yearly starting 2018
o Collection of Other Revenues
 Computed based on the increased service connection
 Escalation of 5% increase yearly starting 2019

DISBURSEMENTS:

 Salaries: 2017 Staffing Ratio is 1:241

 Expense on Salaries was computed based on the actual number of

employees while maintaining the LWUA prescribed staff at 1:120.
 SSL4 fully implemented
 Provision of 5% annual salary adjustments for promotions and increase in
number of personnel in year 2021 considering recategorization to
Category B
 Power: CY 2017 average power cost /cu.m. produced : P 4.10
 Escalation at 5% beginning CY 2018

 Chemicals CY 2017 annual cost/cu.m. produced at P0.67

 Escalation at 5% beginning CY 2019

 Other Operating Maintenance Expenses:

 2017 O & M : P 22.319 Million
Fixed Cost: 11,700
Variable Cost: 10,619
 Escalation at 5% annually

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Bayawan Water District

Business Plan
  Debt Service:

1. LWUA Financial Assistance

 Window I Loan – P 27M Regular Loan
Annual Amortization: P 2.914M

2. Other Outside Loans

 P 5M Land Bank Loan
Annual Amortization: P 0.867 M Status: Current

Remaining Years to Pay: 24 Years until 2021

 P 2.5 M NHA Loan

Annual Amortization: P 0.335 M Status: Current

Remaining Years to Pay: 5 Years until 2022

3. Proposed New Loan

a. 154M LWUA Loan Program
i. Transmission Line Instalaltion - P 138.826 M
ii. Upgrade of Manampa Water Treatment Facility - P 9.5900 M
iii. Pump Installation at Upper Buli-buli - P 8.708 M
iv. Construction of Ground Reservoir at Villareal – P17.000 M
v. Construction of Ground Reservoir at Malabugas – P18.952 M
vi. Pro-poor New Installation Project – P9.000 M
vii. Term of Loan: 25 years to start 2019 at 4% interest per annum

 Other Funds Provision:

 Reserves : Provision equivalent to 3% of Water Sales

 CAPEX: Per schedule of the district

 Taxes: Projected at 2% of Water Sales

 Other Payables – Consists of Materials payable to Suppliers

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Bayawan Water District

Business Plan
 10 BUSINESS PLAN REVIEW

This Business Plan is in its 1st revision. With the availment of 220M financial assistance with
LWUA, the district will be able to address its major concern and challenges. However, this
business plan must be reviewed and updated regularly in order to fit in the new developments of
the City, the unpredictable changes and challenges the district may face.

The review and updating must involve the policy-making body, the executive and the whole
organization itself.

The Management then has to cascade the Business Plan to every personnel of the District in
order to have unity and coordination in the performance of responsibilities and duties towards the
attainment of the organization's strategic goals.

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Bayawan Water District

Business Plan