1. THE
PHILIPPINE
COUNTRY
REPORT
Prepared by:
Ms. Yolanda B. Gomez
Philippine Water Partnership

2. WRM FINANCING STUDY IN
THE PHILIPPINES
Global Water Partnership Southeast Asia
Hotel Mi Casa, Yangon, Myanmar
October 3, 2013

3. Presentation Outline
• Objective
• Methodology
• Limitations
• Summary of Findings
• Way Forward (What Needs to be Done)

4. Study Objectives
• To understand the financing framework/s for
water resources management and development
• To generate information as to the level of public
investments for WRM initiatives
• To propose potential financing schemes and
mechanisms to increase level of financing

5. Scope/Methodology/Limitations
• Covered water
supply, sanitation, irrigation, hydropower and
environment
• A desktop study including a national consultation
workshop, key informant interview and small
group discussion; relied on reports from
concerned agencies
• Flood management (urban flood management)
and coastal resources management were not
covered

6. Philippine WRM Overview
• Complex and fragmented with more than 30
agencies engaged in WRM
• Water resources under threat due to: population
growth, urbanization, increasing water
pollution, groundwater over extraction, water
related disasters
• WRM programs and projects come in various
forms and categories
• Tracking investment is not easy

7. Philippine WRM Overview
Functional Chart of Water Related Agencies
Philippines
Policy Making
DENR
NEDA
DOF
DOJ
DOH
NHRC
Exec Dir, NWRB
NEDA
Coordination / Regulation
NWRB
Water Quality &
Sanitation
Watershed
Management
Integrated Area
Development
Data
Collection
Flood
Management
EMB DOH
BRL EHS
LGUs MWSS
LWUA-WDs
FMB BSWM
NIA NPC
PAWB
LLDA RDCs
BOI PEZA
RBCO
NWRB BRS
NAMRIA LWUA
MGB PAGASA
MWSS NIA
DPWH-PMO
OCD-NDCC
PAGASA
MMDA
Irrigation
Hydro Power
Water Supply
Research
Cloud Seeding
NIA DA
BSWM
DOE PSALM
NPC PEMC
NAPC-WASCO
DOF-CDA
DBP DAR
DPWH MWSS
LWUA-WDs
PTA HUDCC
DILG-PMO
PEZA LGUs
DOSTPCAFNRRD
ERDB
PAF BSWM
Fisheries
BFAR
NATIONAL WATER RESOURCES BOARD

8. SUMMARY OF FINDINGS

9. Study Findings: General Policy
Framework
• WRM is a major responsibility of the government
• Financing subsumed as part of the government
expenditure program, i.e., budget sourced from
the government
• Part of the general budget process and
procedures
• Annual budget and medium term budget
• General Appropriations Act
• Presence of WRM framework at subsectors level

10. Study Findings: Budget Sources
3 Major categories:
• Public funds – flow through the national or local
governments and are raised through general
taxation, public borrowings and official
development assistance
• Private funds - flow directly between
government and WRM implementing agencies;
involve commercial and development bank
lending programs or from private/business
sector

11. Study Findings: Budget Sources
3 Major categories:…
• Semi-public/charitable funds – funds in the
form of fees and charges derived from use of
water resources by foundations, donors, and
NGOs

12. Study Findings- Budget Sources
• National government budget – allocation to
WRM government agencies ( agency budget or
subsidies and allocation to financial institutions
for loans)
• Local Government budget – internal revenue
allocations
• Official Development Assistance (ODA) from
bilateral and multilateral development partners
• Public-Private Partnership (PPPs)

13. Study Findings- Budget Sources
• Irrigator’s fees ( for irrigation subsector)
• Market based instruments such as payment for
environmental services- application of users’pay
principle and polluters’ pay principles

14. Study Findings: Strategies and
Approaches
• PPP – a tool promoted by government in forging
partnership to finance WRM projects and
anchored on the Philippine BOT Law
• Market –based instruments- 2 modalities: users’
pay principle in the form of fees ( abstraction
fee, raw water fee); polluters fee or
environmental users fee system
• Co-sharing and leveraging – use of funds sourced
from pooled resources of LGUs
• Performance-based grants

15. Study Findings: Examples WATSAN
Strategies and Approaches for LGUs
• Service contract
• Management contract
• Lease contract
• Concession contract
• Joint-venture agreement
• Build –Operate-Transfer

16. Study Findings: WRM Financing and
Investment Needs
WRM Financing Level – 2006 to 2010
Particulars
WRM Policy
development and
implementation
Total Funding (in M
US$)
8.28
WATSAN infra
development
3,374.67
Hydropower
3,059.36
Irrigation
1,357,65
Environment
1,015.43
Flood control &
mitigation
1,719.07
TOTAL
10,552.45
Remarks

17. Study Findings: WRM Financing and
Investment Needs
WRM Financing Needs – 2012 to 2016
Particulars
WRM Policy
development and
implementation
Total Funding (in M
US$)
11.5
WATSAN infra
development
120.5
Hydropower
273.3
Irrigation
334.5
Environment
834.1
Total
3,365.6
Remarks

18. Funding for proposed
NWRMO
• A very recent study as part of the proposed
water sector structuring to address major
governance and institutional challenges
• Recommendation: reconstitute, elevate and
strengthen the current NWRB into a National
Water Resources Management Office (NWRMO)
• Vision: water security in support of socioeconomic growth thru sustainable WRM
• Estimated total budget requirement is PhP 1 B
(US$23M) and annual budget of PhP450M
(US$10M)

19. Funding for proposed
NWRMO
• A very recent study as part of the proposed
water sector structuring to address major
governance and institutional challenges
• Recommendation: reconstitute, elevate and
strengthen the current NWRB into a National
Water Resources Management Office (NWRMO)
• Vision: water security in support of socioeconomic growth thru sustainable WRM
• Estimated total budget requirement is PhP 1B
(US$23 M) and annual budget of PhP 450M
(US$10M

20. Financing Issues, Gaps, and
Concerns Identified
• Fragmented financing for WRM programs and
project
• Inadequate level of WRM financing
• Lack of monitoring and tracking mechanism to
regularly capture and analyze financing for WRM
• Low priority accorded to WRM compared to
other subsectors
• Lack of comprehensive and common WRM
framework

21. Financing Issues, Gaps, and
Concerns
• High dependence on national government for
WRM financing
• Limited use of MBIs to fund WRM programs
• Absence of a lead coordinator for WRM
planning, monitoring of fund flows and
investment planning
• Lack of a national account system for WRM
• Practice of budget based investment planning
rather than investment planning –based
budgeting

22. What needs to done: Way
forward
• Come up with a clear and comprehensive
framework for WRM financing to ensure a robust
financing schemes
• Initiate efforts towards putting in place a
monitoring system for WRM financing

23. Thank You
For the complete report, please visit:
www.pwp.org.ph