14 Appendix 5

INITIAL POVERTY AND SOCIAL ANALYSIS

Country: Philippines Project Title: Angat Water Transmission Improvement
Project

Lending/Financing Project Loan Department/ SERD / SEUW

Modality: Division:

I. POVERTY ISSUES
A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy
The Government of the Philippines has adopted targets set under the Millennium Development Goals as well as its
own poverty reduction goals under its Philippine Development Plan, 2011–2016. The plan has clear targets for
poverty-relief based on a strong thrust in supporting inclusive growth through attaining high, sustained economic
growth through a stable macroeconomic environment, rapid growth of industry, investments in infrastructure, and
curbing corruption and enforcing the rule of law. The key objective of ADB support is to help the Philippines achieve
high, inclusive, and sustainable growth. Of the five core operational areas of Strategy 2020, the proposed lending
program will focus on infrastructure, environment, and education. The project contributes to the Government’s
strategy by ensuring continued economic growth in Metro Manila, the main economic center of the Philippines.

B. Targeting Classification

General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2,
etc.)

The project targets poverty reduction and inclusive growth indirectly through the provision of raw water to the private
water supply providers of Metro Manila, or the MWSS’ concessionaries, who in their turn provide drinking water to the
inhabitants, including the low-income areas through targeted programs (“Tubig para sa Barangay” and “Bayanihan
Bayan Tubig”) to low-income communities.

C. Poverty Analysis
1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed?

2. What resources are allocated in the PPTA/due diligence?

3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor
governance, and pro-poor growth)? Existing MWSS’ concessionaires programs provide targeted benefits to
low-income communities (livelihood programs, block tariff and lifeline rates). The TA will assess extent of social
inclusion in these programs while also identifying additional measures to enhance vulnerable population
beneficiaries, as needed, during project preparation.

II. SOCIAL DEVELOPMENT ISSUES

A. Initial Social Analysis
Based on existing information:
1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit
from the project?

Urban poor will directly benefit from the program through access to safe water supply. Urban poor's access to
these services is stimulated through the targeted programs of the MWSS’ concessionaries.

2. What are the potential needs of beneficiaries in relation to the proposed project?

Affordable connection rates (and associated transmission piping from clustered meters to homes) and monthly
tariffs.

3. What are the potential constraints in accessing the proposed benefits and services, and how will the project
address them?

Increased water tariffs. The effect of the increase in investment and operational on the water tariffs will be
assessed during project preparation, and potential measures to reduce impact on urban poor will be discussed
with water service providers.
 Appendix 5 15

B. Consultation and Participation

1. Indicate the potential initial stakeholders.
MWSS, MWSS’ concessionaries, urban communities; nongovernment organizations

2. What type of consultation and participation (C&P) is required during the PPTA or project processing (e.g.,
workshops, community mobilization, involvement of nongovernment organizations and community-based
organizations, etc.)?

Consultations with MWSS and its concessionaries will take place through formal meetings and/or workshops.
Consultation with urban communities and nongovernment organizations follows the communication plan of
MWSS concessionaires.

3. What level of participation is envisaged for project design?

Information sharing Consultation Collaborative decision making Empowerment

4. Will a C&P plan be prepared during the project design for project implementation? Yes No

Both MWSS concessionaires have communication plans in place, which will be used for stakeholder
communication with the customers. These plans will be reviewed and discussed during project preparation. In
addition to MWSS Stakeholder Communication Strategy, the need for a project Participation Plan will be
assessed and prepared, if needed.
C. Gender and Development Proposed Gender Mainstreaming Category: SGE
1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project/program?

Most of the low income and poor neighborhoods do not have household connections to piped water supply.
Women from the low income and poor households bear the burden of collecting water from other sources or
buying it from the vendors which is more costly than public water supply system. Women are traditionally tasked
with caring for sick family members, caused by lack of safe water and hygienic sanitation – increasing the work
and time burden for women. Existing practices of MWSS water concessionaires (e.g. siting of clustered meters)
will be examined to determine level of access and need for further design intervention measures.

2. Does the proposed project/program have the potential to promote gender equality and/or women’s
empowerment by improving women’s access to and use of opportunities, services, resources, assets, and
participation in decision making?
Yes No

Increased availability of water supply will allow the concessionaries to connect more households to piped water
supply. Increased access, in practice, to piped water supply, through the provision of concessionaries targeted
programs, will be reviewed and discussed during project preparation. MWSS staffing, skill training and
recruitment practices will also be reviewed to determine project support measures, as needed, to enhance
gender equity at institutional level.

3. Could the proposed project have an adverse impact on women and/or girls or to widen gender inequality?
Yes No

Increased tariffs may lead inability to connect to, or discontinuation of the water services, placing strain on
women, especially girls, who are traditionally tasked with collecting water from other sources and caring for sick
family members. The potential increase in water tariffs will be assessed during project preparation, and potential
measures to reduce impact on urban poor will be discussed with water service providers.
16 Appendix 5

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Nature of Social Significant/Limited/ Plan or Other Action
Issue No Impact/Not Known Required
Involuntary Resettlement
The works will be Limited Resettlement Plan
confined to rehabilitation
of the existing
aqueducts which are in
the government owned
land. However, informal
settlements are
expected. Due diligence
will be carried out
and and impacts will be
verified and confirmed
during the PPTA

Indigenous Peoples Presence of indigenous No Impact None

people in project area
not expected

Due diligence on the The construction contractor's

Labor compliance for core contract will include core labor Other Action
Employment labor standards will be standard. The labor camp will
Opportunities conducted during the be provided with basic facilities
Labor Retrenchment design stage and (drinking water and sanitation);
Core Labor Standards mitigation measures will no child labor will be used;
be put in place. equal pay for men and women
laborer for similar work.

Affordability Increasing water tariffs Project impact on water tariffs Action

may reduce affordability will be reviewed and discussed
to connect or remain with MWSS and its
connected to water concessionaries. Mitigation
services measures in concessionaires’
target programs include
clustered meters, block tariff
and lifeline rates. Examination
of actual access to urban poor
and vulnerable households will
be reviewed.

Other Risks and/or During PPTA the risk of Not known Uncertain
Vulnerabilities HIV/AIDS and Human
HIV/AIDS Trafficking potential will
Human Trafficking be examined and if
Others (conflict, required then
political instability, etc.),
Contractor's contract will
please specify include awareness
campaign on prevention
of HIV/AIDS and Human
Trafficking.
IV. PPTA/DUE DILIGENCE RESOURCE REQUIREMENT
1. Do the TOR for the PPTA (or other due diligence) include poverty, social and gender analysis and the relevant
specialist/s?
Yes No

2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social and/or gender
analysis, and C&P during the PPTA/due diligence? Yes No