The Forgotten Sector:

Sanitation and Sewerage

in the Philippines

Ben Eijbergen
Infrastructure Sector Coordinator
World Bank Office Manila

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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
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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

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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

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 Sector Overview
Health In 1996-2000 approximately 31% of PhP3.3 billion per
illnesses monitored were attributed to year in avoidable
waterborne sources health cost
Aquatic Fish yields reported to have declined PhP17 billion lost
ecosystem by 30%- 5% due to sedimentation due to
and silt pollution; degradation of
fisheries
environment
Tourism Decline in occupancy (e.g. Boracay P47 billion for
island in 1997 due to high levels of avoidable losses
coliform); in tourism
Others Damage claims due to environmental
degradation (e.g. income and
livelihood)
Overall economic loss due to water pollution: $1.3 billion
5 a year
Sector Performance
Access to Sanitary Toilets, 2004

All families 86%  Access rates

compare favorably
with neighboring
Upper 70% 93% countries
income stratum

 BUT does not

Lower 30% 70% necessarily reflect
income stratum access to satisfactory
sanitation
Source: NSO

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 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
7
Source: Asian Development Bank. 2004. Water in Asian Cities: Utilities Performance and Society Views. Manila.
Main Laws and
Regulations
1959 National Plumbing Code
1975 Sanitation Code
1976 Water Code; establishment of NWRB
1977 National Building Code;
Philippine Environmental Code
1991 Local Government Code
Shifted responsibility of water supply and
sanitation services to LGUs
2004 Clean Water Act
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Government Institutions
Involved in
Sanitation and Sewerage
DOH Promotion and formulation of standards and rules
and regulations on proper waste disposal
DENR Regulation of effluent quality and quantity
MWSS Provision of sewerage systems in Metro Manila
through MWCI and MWSI
LWUA Development of water districts to plan and
implement municipal sewage or sewerage
systems
LGUs Enforcement of anti-pollution regulation from
domestic wastewater; provision of sanitation
services
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 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
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 Investment Needs and
Financing
Annual Average Investment in
Water Supply vs. Sanitation and Sewerage

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

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 Investment Needs and
Financing
Coverage Population Service Coverage Investment
Area requirement
(in million) (in million)
(in PhP B)
2005 2015 2005 2015 2005 2015

Urban 48.85 55.58 9.77 27.79 55.69 158.40

(58%) (60%) (20%) (50%)
Rural 35.37 37.06 17.69 18.53 50.42 52.81
(42%) (40%) (50%) (50%)
Sub-Total 84.22 92.64 27.46 46.32 106.11 211.21
(100%) (100%) (33%) (50%)
Program Support
Operating Costs Urban 3.91 11.12
Operating Costs Rural 6.28 6.58
Total 130.09 256.37
Notes: 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 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
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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

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