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PHILIPPINESSMALL TOWNS WATER UTILITIES

DATA BOOK

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iPhilippines Small Towns Water Utilities Data Book

AusAID Australian Agency for International Development

BRWSAMPC Buhi Rural Waterworks and Sanitation Multi-Purpose Cooperative

BWD Bansalan Water District

CO cooperative

COWASSCO Community Water and Sanitation Service Cooperative (Argao)

CWSDC Calapan Waterworks System and Development Corporation

DILG Department of the Interior and Local Government

DRWSA Darasa Rural Waterworks and Sanitation Association

GOP Government of the Philippines

GWD Guimba Water District

HC house connection

JWS Jagna Waterworks System

LWUA Local Water Utilities Administration

LGU local government unit

MCWD Metro Carigara Water District

MWD Muñoz Water District

NRW non-revenue water

NWRB National Water Resources Board

O&M operation and maintenance

PAWASCO Padada Water System Cooperative

PAWD Philippine Association of Water Districts

Php Philippine Peso

PT public tap

PWS Provincial Waterworks System

RUWASA Tibal-og Rural Waterworks and Sanitation Association

RWSA rural waterworks and sanitation association

SFWD San Francisco Water District

SICIWA Silay City Water District

SPMPC San Pedro Multi-Purpose Cooperative, Inc.

SPRACI San Pedro Resettlement Area Cooperative, Inc.

SRWD Santa Rosa (NE) Water District

TCWS Tagbilaran City Waterworks System

TWD Tandag Water District

UFW unaccounted-for water

VWD Victorias Water District

WD water district

WPEP Water Supply and Sanitation Performance Enhancement Project

WSP Water and Sanitation Program

WSSPMO Water Supply and Sanitation Project Management Office

ABBREVIATIONS AND ACRONYMS

ii

km kilometer

km2 square kilometer

l/c/d or lpcd liters per capita per day

m meter

m3 cubic meter

m3/d cubic meter per day

m3/d/c cubic meter per day per capita

mm millimeter

n.a. not available or not applicable

% percent

“ inch

MEASUREMENT UNITS AND SYMBOLS

iiiPhilippines Small Towns Water Utilities Data Book

FOREWORD

Sustainable access to water supply for all Filipinos has always been a priority of the Government of the Philippines. Yet, despite many government-supported water supply investment programs over the last three decades, a significant number of our people, especially the poor, continue to rely on unsafe sources of water supply or suffer inadequate service.

During the National Water Forum in March 2004, government extended an invitation to civil society groups and the international community to help it define priority actions and policies and elicit parallel commitments for progressing towards sustainable universal access. It was clear from the Forum’s results that stakeholders understood the underlying causes of poor sector performance not simply to be inadequate investments, but institutional limitations that have generated perverse incentives and discouraged improved performance by water service providers.

Much effort has been initiated under the present Administration to tackle the difficult issues in the sector, including improving economic regulation comprehensively across different types of providers, rationalizing public financing in the sector to encourage best use of subsidies, and enhancing participation of consumers and the private sector as counter balance to a dominant public sector.

These reforms are underway, albeit slowly. The Performance Improvement and Benchmarking of Philippines Small Towns Water Supply Project forms an important foundation for these reforms as it initiates a performance-based system for assessing the grant of water supply franchises as well as a means to support utilities in evaluating and improving their own performance by learning from others. This Data Book presents the results of the performance data collection and analysis undertaken for 20 utilities in the last 14 months of the project.

The Project has been unique in its simplicity and also because it has encouraged multi-lateral working partnerships among the Department of the Interior and Local Government, the Local Water Utilities Administration and the National Water Resources Board; and between government agencies and utilities, through the Philippine Association of Water Districts and the direct participation by and dialogues with utilities themselves.

In pursuing with these difficult reforms, the Government of the Philippines has been supported by the Water and Sanitation Program – East Asia and the Pacific of the World Bank and the Government of Australia, through the Water Supply and Sanitation Performance Enhancement Project.

We, the agencies that have worked on this Project, have been very encouraged by the reception of participating utilities and stakeholders to this piloting of a performance monitoring and improvement system. Utilities have shown keen interest in improving their own performance and in taking up their responsibility for promoting access to water supply service for all Filipinos.

Lorenzo H. JamoraAdministrator Local Water UtilitiesAdministration

Angelo T. Reyes SecretaryDepartment of the Interiorand Local Government

Ramon B. AlikpalaExecutive DirectorNational Water ResourcesBoard

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The Philippines appears to offer many of the comforts (and occasional inconveniences) of infrastructure services found in rapidly urbanizing and developing countries in East Asia, but the relatively high rates of access belies the quality of these services. Particular to water supply, less than half of its population has water piped into homes. Many, even those in urban and peri-urban areas, are not reached by water supply network services and rely on communal systems, self-provisioning or water vendors. This poor quality of service contributes to a reduced quality of life for the poor.

The Philippines water supply market is highly fragmented. Many major network providers service less than 5,000 connections and are able to reach only a small portion of their service areas. Constraints to water supply system expansion and overall performance stem from internal and external factors. Internal factors relate to systems operations that are within the control of utility management, such as network repairs and maintenance, billings and collection, management of production and distribution. External factors relate to the institutional environment in which these water enterprises operate, which is characterized by a reliance on subsidies.

The Water Supply and Sanitation Performance Enhancement Project has been a key resource in supporting the Government of the Philippines to review sector performance and direct its future course of action in water and sanitation since it began in 2000. In the Project’s latter years, a sub-project on Performance Improvement and Benchmarking of Small Towns Water Utilities was implemented to introduce a transparent and systematic review of utility performance with the aim of helping utilities benchmark their results with their peers and evaluate the internal processes that are affecting those results. At the same time, it helped institutionalize systems for regulating utilities and generating information for policy- and decision-makers to address the external factors.

This Philippines Small Towns Water Utilities Data Book is a major final output of the benchmarking project. It features data from 20 participating small utilities and compares their performance through selected indicators that have been agreed and understood by stakeholders here and around the world.

The Water and Sanitation Program – East Asia and the Pacific of the World Bank and the Australian Government have been privileged to work in partnership with an active team from the Philippine Government and an enthusiastic group of small water utilities to implement this pilot project.

We hope that this report will enhance understanding, by national and local government decision-makers, utilities and consumers, of the constraints faced by water service providers in taking advantage of the opportunities of increasing demand of water supply and lead to pragmatic approaches and concerted efforts to address these constraints.

Angus Macdonald Counsellor Development Cooperation Government of Australia

Richard W. PollardRegional Team LeaderWater and Sanitation Program – East Asiaand the Pacific, the World Bank

FOREWORD

vPhilippines Small Towns Water Utilities Data Book

The Philippines Small Towns Water Utilities Data Book was prepared through collaboration between the Government of the Philippines and the World Bank, led by the Water and Sanitation Program – East Asia and the Pacific.

The Benchmarking Project Team members are: Fe Banluta, Jessie Gabayno, and Josephine Ramos (Department of the Interior and Local Government - DILG); Petronila Conti, Elvira de Leon and Marie Santos (Local Water Utilities Administration - LWUA); Nathaniel Santos, Belen Juarez and Edsie Peñaranda (National Water Resources Board - NWRB); Ranulfo Feliciano and Romeo Calara (Philippine Association of Water Districts - PAWD); Leila Elvas, Jema Sy (Task Team Leader) and Cesar Yñiguez (Adviser) (Water and Sanitation Program – East Asia and the Pacific - WSP-EAP, the World Bank).

Valuable inputs were provided by a Peer Review Panel composed of: Charles Andrews (Asian Development Bank); Ranulfo Garcia (DILG); Manuel Yoingco (LWUA); Ramon Alikpala (NWRB); William Kingdom, Luiz Claudio Martins Tavarez, Ming Zhang, and Caroline Van den Berg (World Bank), Anumpam Sharma (WSP-South Asia), and Simon Gordon Walker (Water Resources Center, UK).

The Benchmarking Project was supported by an administrative and publishing team: Sylvia de Ocampo (late), Rosario Nolasco (Editor), Emma Sacote, Gilbert Villarin and Yosa Yuliarsa (WSP-EAP Communications Specialist).

The Team would like to acknowledge the contribution of the water supply utilities that participated in this project and the Government of Australia.

ACKNOWLEDGMENTS

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ABBREVIATIONS AND ACRONYMS i

MEASUREMENT UNITS AND SYMBOLS ii

FOREWORD iii

ACKNOWLEDGMENTS v

PART IEXECUTIVE SUMMARY

I. OVERVIEW OF THE SECTOR 2

INCREASING DEMAND FOR URBAN WATER SUPPLY 2

URBAN WATER SUPPLY MARKET SEGMENTATION 2

FRAGMENTATION IN THE REGULATION OF UTILITY PERFORMANCE 3

PROLIFERATION OF SMALL UTILITIES 3

II. PERFORMANCE IMPROVEMENT AND BENCHMARKING OF SMALL TOWNS UTILITIES

IN THE PHILIPPINES – THE PROJECT 5

III. METHODOLOGY 6

PARTICIPATING UTILITIES AND THEIR SELECTION 6

INDICATORS OF PERFORMANCE 7

WHAT CONSTITUTES GOOD PERFORMANCE? 8

OTHER TOOLS TO ASSESS PERFORMANCE 8

IV. SUMMARY OF PERFORMANCE BY INDICATORS 10

WATER SUPPLY COVERAGE 11

WATER AVAILABILITY 11

CONSUMPTION 11

PRODUCTION PER PERSON 11

UNACCOUNTED-FOR WATER 11

CONNECTIONS METERED 11

OPERATING RATIO 12

ACCOUNTS RECEIVABLE 12

COLLECTION EFFICIENCY 12

AVERAGE TARIFF 12

NEW CONNECTION FEE 12

CONTENTS

viiPhilippines Small Towns Water Utilities Data Book

AVERAGE CAPITAL EXPENDITURE OVER LAST 5 YEARS/CONNECTION 12

STAFF/1,000 CONNECTIONS RATIO 13

V. COMMENTARY 14

BUSINESS MODEL OF SMALL WATER ENTERPRISES 14

TARIFFS AND CAPITAL FINANCING 14

OPERATIONAL MANAGEMENT AND CAPACITY 14

OVERALL PERFORMANCE BY MANAGEMENT MODELS 15

VI. WAY FORWARD 16

GENERATING AND USING UTILITY PERFORMANCE INFORMATION 16

PERFORMANCE IMPROVEMENT AND BENCHMARKING PROJECT PHASE 2 16

SUPPORT FOR SMALL WATER UTILITIES AS A STRATEGY FOR MARKET INTEGRATION 17

PART IIUTILITY COMPARISONS

UTILITIES

TABLE 2.1 : NAMES, LOCATIONS AND TYPES OF UTILITIES 20

TABLE 2.2 : SIZE OF UTILITY 20

FIGURE 2.1 : TYPES OF WATER UTILITY 21

FIGURE 2.2 : CAPITAL EXPENDITURE PER CONNECTION 21

PRODUCTION

FIGURE 2.3 : PRODUCTION VOLUME 22

FIGURE 2.4 : STORAGE CAPACITY 22

FIGURE 2.5 : PRODUCTION METERING 23

SERVICE

FIGURE 2.6 : WATER COVERAGE 24

FIGURE 2.7 : WATER AVAILABILITY 24

FIGURE 2.8 : WATER USE 25

FIGURE 2.9 : PER CAPITA CONSUMPTION 25

FIGURE 2.10 : MONTHLY HOUSEHOLD CONSUMPTION 26

FIGURE 2.11 : MONTHLY HOUSEHOLD BILL 26

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MANAGEMENT

FIGURE 2.12 : UNACCOUNTED-FOR WATER 27

FIGURE 2.13 : CONSUMER METERING 27

FIGURE 2.14 : STAFF PER 1000 CONNECTIONS 28

FIGURE 2.15 : AVERAGE TARIFF 28

FIGURE 2.16 : UNIT PRODUCTION COST 29

FIGURE 2.17 : MANAGEMENT SALARIES 29

FIGURE 2.18 : CONNECTION FEE FOR HOUSE CONNECTION 30

TABLE 2.3 : PRIORITY NEEDS OF UTILITY 30

FINANCIAL

FIGURE 2.19 : DOMESTIC TARIFF STRUCTURES – GROUP 1

(TANDAG, MUÑOZ, GUIMBA, METRO CARIGARA) 31


(SAN FRANCISCO, STA. ROSA, CALAPAN, VICTORIAS) 31


(BUHI, TIBAL-OG, JAGNA, NUEVA VIZCAYA) 32


(ARGAO, PADADA, DARASA, TAGBILARAN) 32


(SILAY, BANSALAN, SAN PEDRO RACI, SAN PEDRO MPC) 33

FIGURE 2.24 : ACCOUNTS RECEIVABLE 33

TABLE 2.4 : COST OF WATER FOR DOMESTIC USE (HOUSE CONNECTIONS) 34

FIGURE 2.25 : OPERATING RATIO 34

FIGURE 2.26 : REVENUE COLLECTION EFFICIENCY 35

OPERATION AND MAINTENANCE

FIGURE 2.27 : ANNUAL OPERATION AND MAINTENANCE COSTS 36

FIGURE 2.28 : O&M COST COMPONENTS 36

FIGURE 2.29 : LEAKS REPAIRED 37

FIGURE 2.30 : METERS REPLACED 37

FIGURE 2.31 : WATER QUALITY SAMPLING 38

FIGURE 2.32 : COMPLAINTS RECEIVED 38

FIGURE 2.33 : NEW CONNECTIONS 39

ixPhilippines Small Towns Water Utilities Data Book

PART III WATER UTILITY AND AREA PROFILES

ARGAO 42

BANSALAN 44

BUHI 46

CALAPAN 48

DARASA 50

GUIMBA 52

JAGNA 54

METRO CARIGARA 56

MUÑOZ 58

NUEVA VIZCAYA 60

PADADA 62

SAN FRANCISCO 64

SAN PEDRO MPC 66

SAN PEDRO RACI 68

SILAY 70

STA. ROSA 72

TAGBILARAN 74

TANDAG 76

TIBAL-OG 78

VICTORIAS 80

1Philippines Small Towns Water Utilities Data Book

PART IEXECUTIVE SUMMARY

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I. Overview of the Sector

While public data show fairly high formal water supply access rates, only some 34 million Filipinos or less than half the current population (44%) has piped water connections in their homes. The rest rely on communal faucet systems, improved point sources, and alternative providers, such as water truckers and resellers.

Urban Water Supply Market SegmentationIn the Philippines, the urban water supply market is characterized by the presence of many types of management models. These models were formed through successive government programs that promoted specific provider models as a precondition for obtaining public or donor funding. The water supply system management models may be categorized into two groups: a) those that are managed by institutions, and b) those that are managed by users and the community. These models are as follows:

Increasing Demand for Urban Water SupplyThe Philippines is one of the most rapidly urbanizing countries in Asia1. By 2015, it is estimated that about 90 million Filipinos – almost triple the present population – will be living in towns and cities. Urban growth is occurring mostly in lower-density, peri-urban towns with less than 100,000 people. The concentration of people brings potential for economies of scale in the provision of services, but may require more complicated service delivery systems and management. One of these services is water supply.

Service for formal water supply has not kept up with the increase in demand. Recent access levels have slipped. The rate of access in 2002 (80%) is actually lower than 1999 levels. In the 12-year period between 1990 and 2002, the average annual increase in water access was less than one percent.

Managed by Institutions

Water District quasi-public corporation formed under the Local Water Districts Law for the operation and maintenance of a water supply and wastewater management system

Local Government-operated water supply system owned and operated by the provincial, city or municipal government

Private corporation or other private entities, such as sole proprietorships, formed under the general business and corporation laws of the country for the operation and maintenance of a water supply system

Managed by Users or Community

Cooperative membership organization formed under the Cooperative Code of the Philippines to operate and maintain a water supply system and registered with the Cooperative Development Authority

Barangay Waterworks andSanitation Association (BWSA)

barangay2-based water users’ association formed to manage a community water supply system, usually point sources

Rural Waterworks andSanitation Association (RWSA)

community-based water users’ association formed to manage a piped water supply system either with house connections or a network of public taps

1 Rate of urbanization in the Philippines is 3.1% compared to Asian regional average of 2.5%.2 “Barangay” is the smallest political unit in the Philippines. The barangay is usually composed of some 500-1,000 households.


The last two models, BWSA and RWSA, were introduced through Executive Order (EO) #577 issued in 1980. The EO mandated the establishment of the now defunct Rural Waterworks Development Corporation, a government entity that was tasked to develop water supply systems in the rural areas.

The charts below show the estimated market shares for the different provider models.

Graph 1.1Philippine Water Supply

Market Distribution

Distribution of Access to Water Supply by Level of Service

No formalaccess

21%

Piped connectionsto households

44%

Communalsystem

35%

Distribution of Piped Connectionsby Management Models

Waterdistrict

44%

Community-managed

18%

Private

11%

Localgovernment

27%

Fragmentation in the Regulation of Utility PerformanceThe various providers identifi ed above co-exist and operate under different regulatory and financing regimes. This fragmentation has contributed to

the blurring of accountability for the expansion and improvement of services. It has also made it diffi cult to put comprehensive performance systems in place that could underpin both business and sector planning.

EO #123 issued in 2003 and EO #279 issued in 2004 have begun to address the regulatory fragmentation by transferring authority for local water district tariff reviews from the Local Water Utilities Administration (LWUA) to the National Water Resources Board (NWRB). This consolidates authority in NWRB to review the performance of most types of utilities. The staffing capacity of NWRB is currently unable to fully meet this responsibility. Nevertheless, it has been working over the last two years to develop more rational tariff models and, through this Project, improve utility supervision systems. It also has a plan in place to improve its staffi ng and resources over the medium-term. This, however, will need the support of the Department of Budget and Management (DBM) and Congress.

Although these initiatives are slowly addressing sector fragmentation, supervision of utilities that are directly operated and managed by local government units (LGUs) conspicuously falls through the cracks. There is no clear policy on the accountability of local government-run utilities, except to the local governments themselves. LGUs, however, often have a very different set of incentives for improving service levels. They are also reluctant to increase tariffs. They are, therefore, reliant on limited public funds to support any improvements.

Proliferation of Small UtilitiesAn overwhelming majority of water supply providers are small. Of the 1,600 known network systems in urban areas, over 90% have less than 5,000 connections. These small utilities serve over 11 million of the 34 million Filipinos who have house connections.

Induced by successive public programs, the proliferation of small utilities is due in part to the ad hoc nature of assigning areas of responsibility, which is mainly driven by concerns in filling

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immediate coverage gaps. Among water districts and local government-managed systems, areas of responsibility will correspond to the political demarcations of the entire city or town, almost by default, without necessarily any hydrological, business and medium-term investment basis. As a result, most utilities will almost never cover their nominal areas of responsibility and yet, such areas effectively become ‘perpetual’ exclusive franchises for service under them.

On the other hand, many independent systems are designed to fill a gap in peripheral areas not reached by the main utility. Usually, community-managed systems are formed among a group of neighboring households because they are not reached by the main water supplier, or they receive unsatisfactory service. In their case, the service area is demarcated by consensus among the project participants and expansion into unserved adjacent areas is an afterthought.

The ad hoc demarcation of areas of responsibility discourages clear accountabilities for expanding coverage and other service targets. This is because any shortcoming is addressed by an alternative provider without consequence to the main franchise holder.

Management Models No. of Known Systems Operating in Urban Areas

No. of Systems with > 5,000 Connections

Water districts 430 86

Local Government 700 0

Private 9 4

Managed by users or community

500 0

TOTAL 1,639 90

Percentage 100% 5%

Table 1.1Utilities with Greater

Than 5,000 Connections

Source: (2004) Local Water Utilities Administration and Department of the Interior and Local Government

Urbanization is quickly bringing closer together what once might have been independent markets. The proliferation of small utilities will have an impact on their business and pricing strategies as they may not be able to take full advantage of the security normally provided by monopoly rights. Further, it is rare that fair exit strategies were agreed between parallel providers under these ad hoc arrangements. Thus, when service area integration becomes inevitable, strong resistance from each side can be expected, leading to potential conflict -- often at the expense of consumers.


II. Performance Improvement and Benchmarking of Small Towns Utilities in the Philippines – the Project

In 2003, the Water Supply and Sanitation Performance Enhancement Project (WPEP) completed a study of management models for water supply in Philippines small towns. The study assessed the five types of management models and parameters that underlie successful or unsuccessful performance of these models. The result of the study showed that successful management models for small towns water supply exhibited the following closely inter-related characteristics: (i) cost-efficient management, (ii) active planning and expansion, (iii) good relations with local government, (iv) professional support, and (v) community involvement.

In order to disseminate the study findings and provide basis for supporting improved performance among small water util it ies, a performance benchmarking system was introduced. In 2004, the Water and Sanitation Program, with support from Australian Agency for International Development, assisted the Government of the Philippines to implement this project on Performance Improvement and Benchmarking of Small Towns Water Utilities in the Philippines.

The primary aim of this Project is to support small water utilities measure their performance and hence, have a solid foundation on which to prepare performance improvement initiatives. This is achieved by (i) supporting utilities in assessing their own progress through benchmarking, (ii) increasing sector accountability by making information available to policy-makers, regulators and the public, and (iii) improving the capacity of institutional partners in monitoring the performance of water providers.

The specific objectives of the project are to: (i) develop a practical methodology for the selection and elaboration of performance indicators to be used by water utilities, (ii) promote the use of benchmarking as a management tool to regularly measure operational efficiency of water utilities, (iii) compile performance profiles of participating small towns water utilities, (iv) train water utilities in the use of benchmarking data to evaluate operational processes leading towards improvement, and (v) provide practical training and mentoring to a core

team of institutional partners from the Philippine government in using these tools and methodology.

A project team composed of representatives from the Water Supply and Sanitation Project Management Office (WSSPMO) of DILG, NWRB, LWUA, and PAWD implemented the project. An Adviser guided and supported the team and provided them with introductory training on metric and process benchmarking and performance improvement planning. The WSP Country Team Leader coordinated inputs from the involved government agencies and organizations and, in coordination with the Project Manager, managed the activities to ensure on-time delivery of quality outputs.

Major outputs of the project were submitted for review to a technical peer review panel composed of senior officers in DILG, NWRB, LWUA and the National Economic and Development Authority (NEDA) and international experts from, WSP, World Bank, Asian Development Bank, and the Water Resources Centre in UK.

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III. Methodology

Participating Utilities and their SelectionThe information contained in this Data Book is based on a data collection exercise conducted in 2003. The exercise examined the performance of 20 water utilities with systems covering one or more barangays in a town or several towns in a province.

Specifically targeted in this exercise were small utilities with fewer than 5,000 connections. The utilities featured here, therefore, have connections ranging from 645 to 4,291. Together, they serve over 300,000 people through some 55,000 connections and cover about 60% of the combined population within their service areas.

The 20 water utilities that participated in the project included two rural water and sanitation associations (RWSAs), three LGUs, five cooperatives, one private operator, and nine water districts.

Table 1.2 below provides a list and description of the participating utilities.

Table 1.2Participating Utilities

Area Province Population within Service Area

Number of Connections

Name of Utility Type ofUtility

Argao Cebu 20,462 2,711 Community Water and Sanitation Service Cooperative Coop

Bansalan Davao del Sur 28,422 3,551 Bansalan Water District WD

Buhi Camarines Sur 19,577 1,752 Buhi Rural Waterworks and Sanitation Multi-Purpose Cooperative Coop

Calapan Oriental Mindoro 44,119 4,291 Calapan Waterworks System and Development Corporation Private

Darasa Batangas 14,964 1,354 Darasa Rural Waterworks and Sanitation Association RWSA

Guimba Nueva Ecija 35,009 1,655 Guimba Water District WD

Jagna Bohol 9,629 1,511 Jagna Waterworks System LGU

Metro Carigara Leyte 24,258 3,500 Metro Carigara Water District WD

Muñoz Nueva Ecija 19,307 2560 Muñoz Water District WD

Nueva Vizcaya Nueva Vizcaya 61,594 2,078 Provincial Waterworks System LGU

Padada Davao del Sur 16,828 2,049 Padada Water System Cooperative Coop

San Francisco Agusan del Sur 40,325 2,878 San Francisco Water District WD

San Pedro MPC Batangas 2,836 645 San Pedro Multi-Purpose Cooperative, Inc. Coop

San Pedro RACI Laguna 51,212 3,944 San Pedro Resettlement Area Cooperative, Inc. Coop

Silay Negros Occidental 26,195 3,872 Silay City Water District WD

Sta. Rosa Nueva Ecija 14,729 2,305 Santa Rosa (NE) Water District WD

Tagbilaran Bohol 20,568 3,476 Tagbilaran City Waterworks System LGU

Tandag Surigao del Sur 32,441 4,120 Tandag Water District WD

Tibal-og Davao del Norte 18,900 3,133 Tibal-og Rural Waterworks and Sanitation Association RWSA

Victorias Negros Occidental 25,340 3,695 Victorias Water District WD

Participating utilities were purposively selected based on a long list of proposed utilities comprising different provider models that were registered with any of the three government institutions in the Project Team. The participating utilities were chosen on the basis of a number of criteria, including the existence of some form of recording system to ensure credibility and ease of data collection that was necessary under the project. An assessment of data availability was made using a preliminary questionnaire distributed to small utilities and follow-up phone verification conducted by the Project Team. Final selection was based on an expression of interest by the utility to participate in the Project, which was accompanied by a demonstration of the following: • Understanding of, and support for, the objectives

and benefits of performance improvement through benchmarking

�• Willingness to shoulder reasonable counterpart costs, such as those related to communication and coordination, or, in certain cases, investment


in measuring devices and systems, such as production meters, computing facilities

• Readiness to share information and allow independent verification of data provided, including those related to WSS production and distribution, operation and maintenance and financing

Indicators of PerformanceA consultation workshop was held in June 2004 to orient representatives of the interested utilities and members of the project team on benchmarking and to agree on the implementation arrangements for the project. Performance indicators from the World Bank International Benchmarking Network (IB-NET) Toolkit, the ADB Water Utilities Data Book and the LWUA Industry Averages were discussed during these consultations and a priority list of performance indicators were agreed upon.

Performance profiles of utilities appearing in this Data Book were derived from basic data provided by the utilities and computations using the following formulas:

1. Water supply coverage (%) = [(number of HC x persons per HC) + (number

of PT x persons per PT)] x 100/ [total population in service area]

2. Per capita consumption (l/c/d) = [total annual domestic consumption (m3) x

1,000/365] / [number of people served] 3. Production/population (m3/d/c) = [annual production volume (m3) /365] / [number

of people served]

4. Unaccounted-for water (%) = [total annual production (m3) - total annual

consumption (m3)] x 100/[total annual production (m3)]

5. Average tariff (Php/m3) = [total annual revenue from tariff (Php)] / [total

annual consumption (m3)]

6. Unit production cost (Php/m3) = [annual O&M cost (Php)] / [total annual

production (m3)]

7. Operating Ratio = [annual O&M cost (Php)] / [annual revenue

(Php)]

8. Revenue collection efficiency (%) = [total annual collections (Php) / total annual

billings (Php)] x 100

9. Cost of water for domestic use (10, 20, 30, and 50 m3 per month) - use the corresponding tariff structure provided for each water utility.

10. Staff/1,000 connections ratio = [number of utility staff] / [number of utility

connections/1,000]

11. Accounts Receivable = [total accounts receivable (Php) / total annual

biling (Php)] x12

Some utilities provided information on non-revenue water (NRW). This was defined as total annual production volume minus the total annual consumption volume which produces revenue divided by the total annual production volume calculated as a percentage.

The Data Book also features an indicator for average capital expenditure per connection. Since capital spending of utilities can change significantly from year to year, the indicator here was based on the total capital expenditure of the utility between 1999-2003 divided by five to get the annual average capital expenditure and then divided by the number of connections in the current year (2003).

Data verification and clarification were necessary to ensure consistency of results between different indicators. There were instances where estimates had been provided in the absence of available measures, such as where water production was not metered or where there was no comprehensive metering of consumption. This makes unaccounted-for water data estimates at best. Information on the number of people served are based on average number of people per household connected, which are figures used in water systems design, rather than actual numbers.

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What Constitutes Good Performance?Benchmarking constitutes the search for best practice within a class, and therefore, employs a relative, rather than an objective, assessment technique. This means that the performance of a utility is compared with those of other participating utilities and not to any objective norm, such as national or international standards. If the batch of utilities all performed exceptionally, then even the lowest in the group cannot be said to be poorly performing. However, the opposite is also true – if the batch of utilities all performed poorly, then even the top in the class could not be said to be a ‘good’ performer.

Instead, for this Data Book, it is suggested that the reasonable target for improving utility performance be established at the level of the lowest value within the top quartile (i.e., the top 25% of the batch). This is premised on the notion that utilities in a similar situation are able to achieve this level of efficiency.

Accordingly, the graphs in Part II rank utilities under each indicator from the best to the worst performing. In this ranking, the set of 20 utilities can be divided into quartiles (groups of 5). A few quartiles may not have exactly five utilities as some utilities have equal scores. In these cases, all utilities with the same score as that of the lowest in a particular higher quartile will be classified within that higher level.

Other Tools to Assess PerformanceFor each indicator, the Data Book also provides for the mean of the 20 participating utilities. The mean, or average value, is usually helpful in gauging median performance. Since the Project did not use a statistical sampling method, no inference can be made about the performance of non-participating utilities based on this average value. Individual participating utilities can compare their performance against the batch average. However, as earlier suggested, a better target for improving performance would be to move up within the top quartile of the batch.

In theory, performance of utilities can also be assessed based on their progress over time. Since the data collected for this pilot constitutes only a single year (2003), assessment based on comparison over time was not possible under the current project.

Performance can also be compared with the industry average published by LWUA for water districts, which in 2002 comprised over 80 local water districts, ranging from small to very large. A selected list of indicators from LWUA’s Industry Averages (Table 1.3) is presented in the next page.

Other tools are available to assist utility performance analysis, for example, the ADB Evaluation Criteria using a scoring framework rather than a ranking and comparison of utilities.


Table 1.3Water Districts Industry Averages in 2002

Water District / Size Category Small Average Medium Big Large V. Large Overall

Number of Sample WDs in Category 30 12 17 17 4 2 82

PROFITABILITY

Net Income/Operating Revenues % 8 10 20 18 22 26 14

Debt Service Ratio % 177 192 397 354 306 578 277

Debt Service Php 1,589,193 2,063,263 4,588,365 7,264,949 18,264,204 106,574,537 6,824,844

Return on Fixed Assets % 14 15 39 36 26 36 25

Net Income/Month Php 66,655 124,180 483,986 734.787 5,846,359 12,015,054 873,470

COST CONTROL

Operating Ratio % 77 64 74 76 73 72 74

Operating Expense/Month Php 346,553 744,319 2,184,643 4,030,736 9,148,439 38,366,159 2,906,292

Operating Exp/Conn/Month Php 220 230 284 293 238 369 254

Operating Exp/m3 Billed Php 12 11 15 12 8 9 12

MARKETING EFFORT

Ave. Active Service Connections No. 1,737 3,705 6,616 13,067 63,784 111,169 11,081

Operating Rev/Month Php 451,162 1,158,923 2,542,833 5,086,746 18,596,686 53,737,776 4,134,233

Operating Rev/Conn/Month Php 278 278 360 349 419 492 322

Operating Rev/m3 Billed Php 15 14 19 16 13 17 16

m3 Billed/Conn/Month m3 19 18 21 24 30 28 21

m3 Billed/Month m3 34,935 65,701 143,094 300,746 1,530,685 1,857,630 234,397

Monthly Billing per Connection Php 276 284 347 351 328 496 315

Monthly Billing per cu. m. Php 13 12 13 11 11 16 13

COLLECTION EFFORT

Average Collection Period Day 32 34 42 66 64 52 43

Collection Ratio % 97 98 98 99 98 99 98

PRODUCTION EFFICIENCY

Metered Service Connection No. 1,814 3,694 6,654 13,244 42,504 111,305 10,118

Non-Revenue Water % 29 28 25 28 32 27 28

Production Capacity Utilized % 74 64 70 74 77 75 72

Pumping Expense/m3 Produced Php 0.85 1 0.95 0.95 0.9 0.95 0.95

Treatment Exp/m3 Produced Php 0.15 0.15 0.2 0.1 0.05 0.1 0.14

Fuel Exp for Pumping/m3 Produced

Php 1.25 1.5 2 1.35 1.8 1.7 1.5

Total Prdn Exp/m3 Produced Php 1.55 3.1 2.15 2.2 2.55 3.55 2.12

Total Prdn Exp/Conn/Month Php 80 78 72 84 104 131 81

Total Prdn Exp/Operating Expense % 34 61 30 30 107 103 42

m3 Produced m3 739,127 946,351 2,192,996 5,552,736 22,453,810 44,828,373 4,203,408

PERSONNEL MANAGEMENT

Average No. of Employees No. 13 27 44 83 316 861 72

Active Serv. Conn./Employee No. 119 130 161 162 133 136 140

10

Indicators (Units) Padada SanFrancisco

San PedroMPC

San PedroRACI

Silay Sta. Rosa

Tagbilaran Tandag Tibal-og Victorias Average Top 25%

Water Coverage (%) 46.6 40.2 90 46.6 83.6 85.7 39.6 76.7 83.2 83.7 62.5 83.2

Water Availability (hours) 21 21 24 3 24 24 20 22 24 20 20.1 24

Consumption/Capita (l/c/d) 159 98 154 87 117 121 114 61 106 131 113.7 131

Production/Population (l/d/c) 191 155 187 101 176 145 286 109 150 188 179 191

Unaccounted-for Water (%) 10.7 14.7 15 11 29.8 9.2 58.1 31.3 11.5 22.8 24.3 11.5

Connections Metered (%) 95 100 90 97 100 100 99 100 98 100 97.5 100

Operating Ratio 1.06 0.75 0.88 1.13 1.11 0.68 0.98 0.91 0.82 0.83 0.92 0.81

Accounts Receivable (months) 3.2 1.1 2.2 1.1 1.3 0.3 n.a. 1 2.1 1.5 1.6 1

Revenue Collection Efficiency (%) 102 99 94 96 97 102 122 106 105 98 98.5 104.6

Average Tariff (Php/m3) 7.31 15.77 7.26 11.04 12.53 14.86 6.66 20.43 8.46 13.81 11.35 15.77

New Connection Fee (Php) 2,400 1,630 500 3,600 2,850 2,622 470 2500 1,400 2,050 2,648 2,100

Capital Expenditure/Connection (Php) 308 3,550 n.a. 324 229 954 588 925 87 149 684.2 932.18

Staff/1,000 Connections (ratio) 6.3 7.3 9.3 4.3 6.7 6.9 10.6 4.6 5.4 7.8 7.6 6

IV. Summary of Performance by Indicators

The following table (Table 1.4) presents the summary of results for the 20 water utilities with the average and top quartile (top 25%) values for each of the indicators. While the top quartile values for most indicators represent the suggested target for improvement, this target may not be appropriate for all indicators. For example, the top quartile may not be a relevant target for average tariffs. Similarly, in relation to consumption per capita, the utilization

levels may indicate wasteful use of resources (if consumption is too high) or insufficient availability of water for basic hygiene uses (if consumption is too low). Users of these data should be discerning in the use of the target values for performance improvement. The key is to differentiate between those indicators that are under management operational control, i.e., those where the actions of managers can affect the result, and those that cannot.

Table 1.4Summary of Results

Indicators (Units) Argao Bansalan Buhi Calapan Darasa Guimba Jagna Metro Carigara

Muñoz Nueva Vizcaya

Average Top 25%

Water Coverage (%) 76.4 71.2 44.3 42.9 59.1 26.8 77.9 81.5 75.9 18.7 62.5 83.2

Water Availability (hours) 22 18 18 16 18 24 18 24 24 17 20.1 24

Consumption/Capita (l/c/d) 123 86 146 107 121 94 132 86 117 114 113.7 131

Production/Population (l/d/c) 161 116 230 245 173 150 167 155 147 357 179 191

Unaccounted-for Water (%) 16.6 20.8 29.3 40.6 16.4 24.4 20.3 37.9 6.7 59.7 24.3 11.5

Connections Metered (%) 99 100 99 100 98 100 92 83 100 100 97.5 100

Operating Ratio 1.03 0.72 0.97 1.39 0.88 0.95 0.59 0.81 0.81 1.18 0.92 0.81

Accounts Receivable (months) 1.7 1.6 0.5 1.6 1.6 1 4.7 2.1 1 0.4 1.6 1

Revenue Collection Efficiency (%) 99 98 96 95 91 107 61 106 99 96 98.5 104.6

Average Tariff (Php/m3) 6.04 21.9 3.73 8.25 8.38 21.09 3.49 17.99 14.84 3.23 11.35 15.77

New Connection Fee (Php) 3,350 2,100 1,535 5,200 3,032 2,200 200 3004 2300 3,250 2,648 2,100

Capital Expenditure/Connection (Php) 1,462 969 112 932 180 724 553 301 536 115 684.2 932.18

Staff/1,000 Connections (ratio) 5.2 9.6 8.6 9.3 6.6 13.9 6 8.9 7.8 6.3 7.6 6

* Connection fees for Jagna, San Pedro MPC and Tagbilaran do not include materials and installation costs.


Water Supply Coverage The computation of coverage here relates only to utilities’ current service areas and not to their franchise areas nor the total area considered in official census and surveys. This was done because of the lack of comparability between how areas of responsibility are assigned among the different utility management models, as discussed in the introduction. Although only the service areas were considered, none of the 20 utilities has 100% coverage. The average coverage is only 62.5%. Only six utilities covered between 81.5% (Carigara) and 90.0% (San Pedro MPC) of their service areas. Nueva Vizcaya (18.7%), Guimba (26.8%), Tagbilaran (39.6%), and San Francisco (40.2%) have the lowest coverage either due to high UFW or shortage of water resources for development. Access to financing prevents small utilities from expanding coverage, particularly among the community-managed systems.

Water Availability Only seven of the utilities, five of which are water districts, provide 24-hour water supply with the rest providing 16 to 22 hours of supply, except for San Pedro RACI (2.5 hours). Water availability that is less than 24-hours not only poses a risk to health, but also affects meter efficiency. Full metering combined with higher tariffs to cover operation and maintenance (O&M) and expansion costs can help achieve higher coverage and 24-hour water supply as observed by most of the water districts in this study.

Consumption The areas where consumption is highest include Padada (159 lcd), San Pedro MPC (154 lcd), Buhi (146 lcd) and Jagna (132 lcd). By contrast, there are a number of low consumption areas, such as Tandag (61 lcd), Metro Carigara (86 lcd), Bansalan (86 lcd) and San Pedro RACI (87 lcd). High consumption demonstrates that the system allows for this level of consumption and that consumers are willing to pay for such consumption at the given price. In areas where consumption is low, customers are paying higher average tariffs than those in the high consumption areas. This is true for all areas except for San Pedro RACI,

where consumption is low because of their limited production capacity.

Production per Person This indicator measures total annual water supplied for distribution and provides an indication of overall efficiency of water resource use. The low figures of San Pedro RACI (0.101), Tandag (0.109), Bansalan (0.116) and Sta. Rosa (0.145) reflect a shortage of water resources available for distribution. High levels of production per person coupled with high levels of unaccounted-for water are noted in Nueva Vizcaya (0.357), Tagbilaran (0.286) and Calapan (0.245). On the other hand, the high production per person values in Buhi (0.230) and Padada (0.191) seem to be meeting the levels of high consumption among their customers.

Unaccounted-for Water The best performers in relation to low UFW are Muñoz (6.7%), Sta. Rosa (9.2%), Padada (10.7%), and San Pedro RACI (11.0%). San Pedro RACI’s low UFW, however, needs to be considered in relation to its acutely limited water supply, which is provided only 2.5 hours everyday. The worst performers are Nueva Vizcaya (59.7%), Tagbilaran (58.1%), Calapan (40.6%), and Metro Carigara (37.9%). Given the generally low coverage and low water availability by a number of utilities, more effort must be exerted to reduce UFW levels. This includes 100% metering of production and consumption, repair of visible leaks, elimination of illegal connections, and identification and repair of invisible leaks. It must also be noted that while metering of consumption is generally high among the utilities, about 40% of them have no production meters. Hence, some of the UFW figures are, at best, only estimates.

Connections Metered Metering is important to fully account for water production and consumption and in reducing UFW. Half the number of utilities has 100% metering of consumption, nine with 90-99% metering, and the last utility with 83%. While the average rate of metering is high, it is equally important that meters are calibrated regularly, repaired or replaced if needed. For example, Muñoz and Sta. Rosa, both

12

with low UFW, replace meters every 5-7 years and recalibrate them regularly.

Operating Ratio A low operating ratio means revenues from tariffs cover the O&M costs comfortably. A ratio above one indicates that utilities are not able to cover their O&M costs. It is encouraging that 14 of the 20 utilities meet O&M costs. The worst performers requiring improvement are Calapan (1.39), Nueva Vizcaya (1.18), San Pedro RACI (1.13) and Silay (1.11), while the best performers are Jagna (0.59), Sta. Rosa (0.68), Bansalan (0.72), and San Francisco (0.75).

Accounts Receivable This indicator is employed to assess the effectiveness of a utility in financial management. In this case, the receivables are expressed in equivalents of the utility’s average monthly billing. For small utilities, accounts receivable that represent less than two months of its average billing is manageable. Five utilities have accounts receivable of more than two months, Jagna (4.7 months), Padada (3.2 months), San Pedro MPC (2.2 months), Metro Carigara (2.1 months) and Tibal-og (2.1 months). The good performers include Sta. Rosa (0.3 month), Nueva Vizcaya (0.4 month), Buhi (0.5 month) and Guimba, Muñoz, and Tandag with 1.0 month for each.

Collection Efficiency This indicator, along with average tariff, operating ratio and accounts receivable, impacts on the financial health of a utility. All utilities have collection efficiencies of 95% or higher except for Jagna (61%), Darasa (91%) and San Pedro MPC (94%). These utilities need to improve their collection effort and encourage consumers to pay their bills on time.

Average Tariff Average tariff here is expressed as the ratio of a utility’s total annual revenue and total annual water consumption (water sold). Average tariff measures the financial discipline of a utility and its ability to cover operational costs with revenues from tariffs. Water districts demonstrated higher average tariffs:

Bansalan (Php21.90/m3), Guimba (Php21.09/m3), Tandag (Php20.43/m3) and Metro Carigara (Php17.99/m3). Community-managed utilities have lesser average tariffs: Buhi (Php3.73/m3) and Argao (Php6.04/m3), while LGU-ran utilities have the lowest average tariffs: Nueva Vizcaya (Php3.23/m3) and Jagna (Php3.49/m3). Low consumption in areas with high tariffs in this study demonstrates how tariffs can be used as a tool for water demand management.

New Connection Fee During the workshop presenting the results of this study, utility participants suggested that at current prices, Php2,500 was a reasonable average connection fee. Apart from a reasonable fee rate, allowing payments by installment can assist low-income households to gain access to service in their homes, with significant benefits to their welfare. However, only five utilities allowed payment by installment over 3-12 months; the rest required payment prior to connection. Utilities with high house connection fees are Calapan (Php5,200), San Pedro RACI (Php3,600), Argao (Php3,350) and Nueva Vizcaya (Php3,250) while those with low fees are Tibal-og (Php1,400), Buhi (Php1,535), San Francisco (Php1,630) and Victorias (Php2,050).

Average Capital Expenditure over Last 5 Years/Connection The overa l l average capi ta l expendi ture, which amounts to just higher than U$10 per connection, shows that utilities generally spent modestly on capital expenditure over the last five years. The utilities that are spending more per connection per year on capital improvements are water districts. This is not surprising given their access to financing, while RWSAs, cooperatives, and LGU-run utilities have the lowest capital expenditures. This study revealed that access to financing is a major constraint to performance improvement of non-water district utilities. Those with the lowest capital expenditure per connection per year are Nueva Vizcaya (Php115.50), Buhi (Php112.41), Tibal-og (Php87.03) and San Pedro MPC with nil. Those with the highest are San Francisco (Php3,550.42), Argao (Php1,461.82) and Bansalan (Php968.60).


Staff/1,000 Connections Ratio This indicator is generally used to measure the efficient use of human resources in a utility as manifested by low staff/1000 connection ratio. However, low staff/1000 connection ratio among the RWSAs and cooperatives needs to be considered in relation to their inability to hire given that low average tariffs leave little room to cover O&M costs, which includes personnel salaries. Utilities with low staff/1,000 connection ratios are San Pedro RACI (4.3), Tandag (4.6), Argao (5.2) and Tibal-og (5.4). Those with high ratios are Guimba (13.9), Tagbilaran (10.6) and Bansalan (9.6).

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V. Commentary

Business Model of Small Water EnterprisesSmall water utilities operate like many other small businesses. Those featured in this Data Book typically have an annual collection of 7-8 million pesos, most of which go to covering O&M expenses. In general, the utilities are able to achieve positive operating ratios and manage collections, but are only breaking even for the most part.

The business strategy employed by small utilities is focused on keeping costs low, as opposed to increasing revenues. This is achieved by employing a limited number of staff, relying on internal human resources for most of the technical operations, and funding expansion using internally generated surplus rather than tapping into external financing. Accordingly, system coverage, rate of network expansion and capital expenditures are modest.

Tariffs and Capital FinancingThe areas where small utility performance are weakest (coverage, expansion and capital expenditure) are very much tied to the issue of tariffs and financing.

The overall average monthly household bill is Php 204.40 and among the 20 utilities, average monthly household bills range from Php 64.62 to Php 347.07. Table 1.5 below compares these average monthly household water bills with the average monthly income of the 5 lowest household income decile groups in urban areas. The overall average (median), lowest and highest average monthly household water bills are expressed as a percentage of this monthly household income.

Lowest 5 Income Decilesin Urban Areas (2000)

Average MonthlyHousehold Income*

Average Monthly Bill as % of HH Income

Lowest Php 64.62 Median Php 204.40 Highest Php 347.07

1st Php 2,116 3.40% 9.70% 16.40%

2nd Php 2,939 2.20% 7.00% 11.80%

3rd Php 3,770 1.70% 5.40% 9.20%

4th Php 4,590 1.40% 4.40% 7.60%

5th Php 5,820 1.10% 3.50% 6.00%

Table 1.5Average Household Water Bill as a Percentage of Household

Income among the Poorest in Urban Areas

Average monthly bills, although they may only present a break even point for utilities, already comprise a significant threshold of expenditure to the lowest income decile groups.

From this it can be concluded that small utilities will not be able to finance big ticket expansion, such as pipe laying and source development, at the rate necessary to meet market demand, through internally generated surplus alone.

On the other hand, the market in which small water utilities operate is growing rapidly. But because they are unable to expand at a rate sufficient to keep up with demand, residents are resorting to alternative sources of water, or independent water supply systems are being created. While the data provided here is not independently sufficient, there is evidence that the prevalence of alternative water sources pushes the price of water downwards in areas where the utilities operate. They also keep tariffs low.

Despite positive operating ratios, small water utilities have great difficulty accessing financing from the present available sources. This remains a key reason for the disintegrated nature of the water market among many small suppliers and needs to be addressed urgently.

Operational Management and CapacityThe performance data indicates that the small water utilities are doing well in water resources management as they are able to provide sufficient quantities of safe water. Moreover, given their small

*Based on national census 2000


systems, they are able to keep unaccounted-for water in check.

There is a general need to improve on customer satisfaction indicators, especially on coverage and water availability. Performance of small utilities on technical issues, such as the ability to quickly address leakages, systems breakdown and network problems, has been mixed. This largely relates to the level of skills utilities are able to maintain on their staff.

Overall Performance by Management ModelsThe overall performance of water districts are generally better than that of non-water districts, except on staff per 1,000 connections, connection fees and water production. Given the nature of the small water utility business strategy, it becomes apparent that the advantage of water districts over the others is access to technical, financial and institutional assistance through LWUA.

16

VI. Way Forward

Generating and Using Utility Performance InformationThe pi lot Performance Improvement and Benchmarking project demonstrates that with little inputs, a practical system of performance monitoring as a starting point for improvement, can be achieved through benchmarking. The performance data collection and processing does not require a lot of additional resources from both the institutional partners and utilities, but yields useful information to many users.

Among water utilities, it is hoped that benchmarking can be a management tool for improving performance by allowing comparison with peers on performance parameters. The information is intended to be shared among the growing network of water utilities in the world and in the Asian region that are exchanging information and experiences in setting up performance improvement programs, most notably the Internat ional Benchmarking Network (IB-NET) and the Southeast Asian Water Utilities Network (SEAWUN).

Consumers and the general public will benefit from better awareness about the level of service and the relative performance and water pricing by their utilities to be able to demand for improved services and accountability, either from utilities or government.

Systematic collection of performance data will be useful to sector planners, local governments and regulators as it highlights key performance constraints and provides information on realistic operational targets for improvement. This understanding will hopefully lead to more systematic and transparent mechanisms for investment planning, franchise delineation, and performance reviews.

To be useful in informing local and national sector policy and strategies, however, the data sharing effort must have expanded participation from utilities across provider models. There is data available that could be usefully integrated into a more expansive performance management information system. These data are from LWUA’s Industry Averages and annual reports to NWRB by holders of Certificates

of Public Convenience (franchises), mostly private providers of water within real estate developments and housing complexes. Again, notably, the participation of LGU-managed utilities is critical as they serve a significant portion of the population, often as the ‘provider of last resort.’ They generally fall outside the existing regulatory or monitoring systems.

Towards the future, data for multiple years would be expected to yield even more useful information about capital formation, long-term viability and profitability of utilities, and general health of the sector.

Performance data can therefore be used as a tool to target support, particularly limited public funds, to better performing utilities.

Performance Improvement and Benchmarking Project Phase 2The pi lot Performance Improvement and Benchmarking Project yielded important insights on how a program for performance improvement in small towns’ water provision might proceed. These were presented and discussed in a workshop among representatives of the participating water utilities and national oversight agencies in May 2005.

Phase 1 has demonstrated that data can be collected and compared. Clearly, sharing performance data needs to be encouraged and sustained throughout the years. However, to develop this into an improvement program requires much more work in terms of how to encourage comparison of practices rather than just numbers. Within the current pilot, the experience has been that when utilities understand how to use the performance indicators to diagnose their own systems and processes and when they are able to learn from other utility practices about ways to improve, they value the performance data collection and sharing. The experience exchange among peers during data analysis workshops brought immediate practical benefits to the participating water utilities under the pilot. There was a consensus that these activities need to be further facilitated.


Participating utilities recommended the following steps to continue the benchmarking activities started under the project:

• formalize practical support network/organization of water utilities

�• make available information/resources on utility techniques/technologies, management practices, financing and operational best practices and policies

�• regularly collate, analyze and disseminate utility performance data

• implement practical exchange programs among utilities and training activities

The pilot batch of utilities was eager to support a continuation of the performance improvement project. They see their roles as implementers of best practices and high performance standards, big brothers to other water utilities, educators and sharers of knowledge, and promoters of public-private partnerships.

Along with support to stimulate peer-to-peer learning, the second phase of the project is also aimed at institutionalizing the performance monitoring system and exploring how to share results on an institutional basis. Thus, the second phase of the project aims to institutionalize the benchmarking system within the NWRB based on its mandate to intermediate between the interests of service providers and consumers as economic regulator.

Data integration or at least, data sharing, will also be encouraged between NWRB and LWUA and internationally, the Philippines benchmarking information system would be linked to the IB-NET and SEAWUN initiatives.

Support for Small Water Utilities as a Strategy for Market IntegrationSmall water utilities are at the frontline of providing formal network services to a significant number of Filipinos. They are able to meet their routine costs and provide relatively affordable and satisfactory services. However, small water utilities operate in a challenging market and institutional environment. Their limited scale and the downward pressure

on water prices due to the presence of numerous alternative providers as well as the tariff setting systems currently in place are factors that prevent the majority of small utilities from generating adequate internal surplus to directly fund investment or to gain access to, and service, capital financing.

Due in part to their size, many aspects of the business of small water utilities are highly susceptible to political interventions such as a) whether certain customers can be billed; b) the level and structure of tariffs; c) implementation of disconnection or other policies related to collection; and most persistently, d) whether utilities will be able to keep their franchise as well as the manner and basis of performance review. At present, systems are not in place for effecting rule-based performance reviews and satisfactory arbitration of interests between consumers and utilities and between utilities and local governments.

Concentration of demand exists in the present rapidly urbanizing environment. And it is the inability of present providers to expand services, which predominantly leads to the disintegration of the water markets. Significantly, the findings from the data collection and pilot benchmarking exercise demonstrate that small utilities can operate viably and improve on their technical and management systems. However, expansion of network service to the vast majority of Filipinos who remain excluded will only come from sector interventions addressing external factors that constrain the integration of the water supply markets.

Recognizing the dominance of small water utilities in the present water market, sector support programs need to focus on addressing the constraints that are beyond their control and pose the most significant stumbling blocks to service improvement and expansion. These programs should be aimed at --

�• supporting continuing improvement and efficiency of utilities and their technical and management operations

• systematizing performance reviews �• rationalizing tariffs and establishing mechanisms

for fair tariff reviews

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�• finding solutions to address the financing bottlenecks for utility expansion projects and, in particular, increasing coverage among low-income households

�• improving and rationalizing sector planning and delineation of service areas

�• instituting rule-based sector oversight and redress

In the long run, the key to increasing access for all Filipinos to water supply relies on the increasing viability, performance and expansion of these small utilities. This means helping small utilities break the barriers that constrain them from becoming bigger and better.


PART IIUTILITY COMPARISONS

20

Utilities People Served No. of Connections Production (m3/day) No. of Staff

Argao 15,624 2,711 2,522 14

Bansalan 20,232 3,551 2,354 34

Buhi 8,671 1,752 1,994 15

Calapan 18,916 4,291 4,632 40

Darasa 8,838 1,354 1,527 9

Guimba 9,399 1,655 1,408 23

Jagna 7,505 1,511 1,252 13

Metro Carigara 19,776 3,500 3,070 31

Muñoz 14,658 2,560 2,152 20

Nueva Vizcaya 11,508 2,078 4,105 13

Padada 7,840 2,049 1,500 9

San Francisco 16,226 2,878 2,517 21

San Pedro MPC 2,560 645 477 6

San Pedro RACI 23,890 3,944 2,420 17

Silay 21,912 3,872 3,859 36

Sta. Rosa 12,618 2,305 1,835 16

Tagbilaran 20,568 3,476 5,874 37

Tandag 24,878 4,120 2,708 19

Tibal-og 15,720 3,133 2,356 17

Victorias 21,216 3,695 3,981 29

Table 2.1Names, Locations and Types of Utilities

Area Province Area Population Year of Data Name of Utility

Argao Cebu 20,462 2003 Community Water and Sanitation Service Cooperative

Bansalan Davao del Sur 28,422 2003 Bansalan Water District

Buhi Camarines Sur 19,577 2003 Buhi Rural Waterworks and Sanitation Multi-Purpose Cooperative

Calapan Oriental Mindoro 44,119 2003 Calapan Waterworks System and Development Corporation

Darasa Batangas 14,964 2003 Darasa Rural Waterworks and Sanitation Association

Guimba Nueva Ecija 35,009 2003 Guimba Water District

Jagna Bohol 9,629 2003 Jagna Waterworks System

Metro Carigara Leyte 24,258 2003 Metro Carigara Water District

Muñoz Nueva Ecija 19,307 2003 Muñoz Water District

Nueva Vizcaya Nueva Vizcaya 61,594 2003 Provincial Waterworks System

Padada Davao del Sur 16,828 2003 Padada Water System Cooperative

San Francisco Agusan del Sur 40,325 2003 San Francisco Water District

San Pedro MPC Batangas 2,836 2003 San Pedro Multi-Purpose Cooperative, Inc.

San Pedro RACI Laguna 51,212 2003 San Pedro Resettlement Area Cooperative, Inc.

Silay Negros Occidental 26,195 2003 Silay City Water District

Sta. Rosa Nueva Ecija 14,729 2003 Santa Rosa (NE) Water District

Tagbilaran Bohol 20,568 2003 Tagbilaran City Waterworks System

Tandag Surigao del Sur 32,441 2003 Tandag Water District

Tibal-og Davao del Norte 18,900 2003 Tibal-og Rural Waterworks and Sanitation Association

Victorias Negros Occidental 25,340 2003 Victorias Water District

Utilities

Table 2.2Size of Utilities


10

8

6

4

2

0

RWSA COOPERATIVE LOCAL GOVERNMENT UNIT PRIVATE WATER DISTRICT

Darasa

Tibal-og

Argao

Buhi

Padada

San Pedro MPC

San Pedro RACI

Jagna

Nueva Vizcaya

Tagbilaran

Calapan

Bansalan

Guimba

Metro Carigara

Muñoz

San Francisco

Silay

Sta. Rosa

Tandag

Victorias

Figure 2.1Types of Water Utilities

Capital Expenditure (Php per Connection)

Uti

liti

es

Figure 2.2Capital Expenditure per Connection

Nu

mb

er

of

Uti

liti

es

Tibal-og RW

Buhi CO

Nueva Vizcaya LGU

Victorias WD

Darasa RW

Silay WD

Metro Carigara WD

Padada CO

San Pedro RACI CO

Muñoz WD

Jagna LGU

Tagbilaran LGU

Guimba WD

Tandag WD

Calapan PS

Sta. Rosa WD

Bansalan WD

Argao CO

San Francisco WD 3,550

0 300 600 900 1,200 1,500

*No data for San Pedro MPC was available

22

Storage Capacity (Cubic Meters)

Uti

liti

es

Figure 2.4Storage Capacity

Production (Cubic Meters Per Day)

Uti

liti

es

Figure 2.3Production Volume

San Pedro MPC CO

Jagna LG

Guimba WD

Padada CO

Darasa RW

Sta. Rosa WD

Buhi CO

Muñoz WD

Bansalan WD

Tibal-og RW

San Pedro RACI CO

San Francisco WD

Argao CO

Tandag WD

Metro Carigara WD

Silay WD

Victorias WD

Nueva Vizcaya LG

Calapan PS

Tagbilaran LG

0 1,000 2,000 3,000 4,000 5,000 6,000

Production

Calapan PS

Darasa RW

Tibal-og RW

Metro Carigara WD

Jagna LG

Bansalan WD

Tandag WD

Sta. Rosa WD

Padada CO

Buhi CO

Guimba WD

Muñoz WD

Victorias WD

Silay WD

Argao CO

San Pedro RACI CO

San Francisco WD

Tagbilaran LG

Nueva Vizcaya LG

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

*No data for San Pedro MPC was available


12

10

8

6

4

2

0

NO METERING 70% METERED 100% METERED

Bansalan

Calapan

Darasa

Nueva Vizcaya

Padada

San Pedro MPC

San Pedro RACI

Metro Carigara

Argao

Buhi

Guimba

Jagna

Muñoz

San Francisco

Silay

Sta. Rosa

Tagbilaran

Tandag

Tibal-og

Victorias

Figure 2.5Production Metering

Percentage of Production Metered

Nu

mb

er

of

Uti

liti

es

24

Service

Percent of Service Area Population

Uti

liti

es

Figure 2.6Water Coverage

Figure 2.7Water Availability

Average Number Of Hours Per Day

Uti

liti

es

San Pedro RACI CO

Calapan PS

Nueva Vizcaya LG

Bansalan WD

Buhi CO

Jagna LG

Darasa RW

Victorias WD

Tagbilaran LG

San Francisco WD

Padada CO

Tandag WD

Argao CO

Silay WD

Sta. Rosa WD

Muñoz WD

Guimba WD

Metro Carigara WD

San Pedro MPC CO

Tibal-og RW

0 4 8 12 16 20 24

Nueva Vizcaya LG

Guimba WD

Tagbilaran LG

San Francisco WD

Calapan PS

Buhi CO

San Pedro RACI CO

Padada CO

Darasa RW

Bansalan WD

Muñoz WD

Argao CO

Tandag WD

Jagna LG

Carigara WD

Tibal-og RW

Silay WD

Victorias WD

Sta. Rosa WD

San Pedro MPC CO

0 20 40 60 80 100


Percent

Uti

liti

es

Domestic Other UfW

*Other use includes industrial, commercial and institutional

Figure 2.8Water Use

Figure 2.9Per Capita Consumption

Liters Per Capita Per Day

Uti

liti

es

Tandag WD

Carigara WD

Bansalan WD

San Pedro RACI CO

Guimba WD

San Francisco WD

Tibal-og RW

Calapan PS

Tagbilaran LG

Nueva Vizcaya LG

Silay WD

Muñoz WD

Sta. Rosa WD

Darasa RW

Argao CO

Victorias WD

Jagna LG

Buhi CO

San Pedro MPC CO

Padada CO

50 75 100 125 150 175 200

* No breakdown according to water use provided by Sta. Rosa.

Argao CO

Bansalan WD

Buhi CO

Calapan PS

Darasa RW

Guimba WD

Jagna LG

Metro Carigara WD

Muñoz WD

Nueva Vizcaya LG

Padada CO

San Francisco WD

San Pedro MPC CO

San Pedro RACI CO

Silay WD

Tagbilaran LG

Tandag WD

Tibal-og RW

Victorias WD

0 10 20 30 40 50 60 70 80 90 100

26

Cubic Meters per Month

Uti

liti

es

Figure 2.10Monthly Household Consumption

Figure 2.11Monthly Household Bill

Average Monthly Household Bill (PhP)

Uti

liti

es

Nueva Vizcaya LG

Jagna LG

Buhi CO

Calapan PS

Tagbilaran LG

San Pedro MPC CO

Argao CO

Tibal-og RW

Padada CO

San Pedro RACI CO

Tandag WD

Darasa RW

Metro Carigara WD

San Francisco WD

Silay WD

Victorias WD

Muñoz WD

Sta. Rosa WD

Bansalan WD

Guimba WD

50 100 150 200 250 300 350

Tandag WD

Metro Carigara WD

Bansalan WD

San Pedro RACI CO

Calapan PS

Guimba WD

San Pedro MPC CO

Padada CO

Tibal-og RW

Jagna LG

Tagbilaran LG

San Francisco WD

Nueva Vizcaya LG

Silay WD

Sta. Rosa WD

Argao CO

Buhi CO

Muñoz WD

Victorias WD

Darasa RW

0 15 20 25 30


Percentage Unaccounted-for Water

Uti

liti

es

Figure 2.12Unaccounted-for Water

10

8

6

4

2

0

<90% 90-95% 96-99% 100%

Metro Carigara

Jagna

Padada

San Pedro MPC

Argao

Buhi

Darasa

San Pedro RACI

Tagbilaran

Tibal-og

Calapan

Bansalan

Guimba

Muñoz

Nueva Vizcaya

San Francisco

Silay

Sta. Rosa

Tandag

Victorias

Figure 2.13Consumer Metering

% of Connections Metered

Management

Muñoz WD

Sta Rosa WD

Padada CO

San Pedro RACI CO

Tibal-og RW

San Francisco WD

San Pedro MPC CO

Darasa RW

Argao CO

Jagna LG

Bansalan WD

Victorias WD

Guimba WD

Buhi CO

Silay WD

Tandag WD

Carigara WD

Calapan PS

Tagbilaran LG

Nueva Vizcaya LG

0 10 20 30 40 50 60

Nu

mb

er

of

Uti

liti

es

28

Figure 2.14Staff Per 1000 Connections

Staff per 1000 Connections

Uti

liti

es

Figure 2.15Average Tariff

Average Tariff (Php per Cubic Meter)

Uti

liti

es

Nueva Vizcaya LG

Jagna LG

Buhi CO

Argao CO

Tagbilaran LG

San Pedro MPC CO

Padada CO

Calapan PS

Darasa RW

Tibal-og RW

San Pedro RACI CO

Silay WD

Victorias WD

Muñoz WD

Sta. Rosa WD

San Francisco WD

Metro Carigara WD

Tandag WD

Guimba WD

Bansalan WD

0.00 4.00 8.00 12.00 16.00 20.00 24.00

San Pedro RACI CO

Tandag WD

Argao CO

Tibal-og RW

Jagna LG

Nueva Vizcaya LG

Padada CO

Darasa RW

Silay WD

Sta. Rosa WD

San Francisco WD

Muñoz WD

Victorias WD

Buhi CO

Metro Carigara WD

San Pedro MPC CO

Calapan PS

Bansalan WD

Tagbilaran LG

Guimba WD

0 3 6 9 12 15


Production Cost (Php per Cubic Meter)

Uti

liti

es

Figure 2.16Unit Production Cost

Figure 2.17Management Salaries

Average Salaries of Top Three Management Positions (Php 1,000 per Month)

Uti

liti

es

Victorias WD

Silay WD

Bansalan WD

Metro Carigara WD

San Francisco WD

Muñoz WD

Tandag WD

San Pedro MPC CO

Sta. Rosa WD

Nueva Vizcaya LG

Guimba WD

Tagbilaran LG

Tibal-og RW

Argao CO

Padada CO

Darasa RW

San Pedro RACI CO

Buhi CO

Jagna LG

0 5 10 15 20 25

Nueva Vizcaya LG

Jagna LG

Buhi CO

Tagbilaran LG

Argao CO

San Pedro MPC CO

Tibal-og RW

Darasa RW

Calapan PS

Padada CO

Victorias WD

Metro Carigara WD

Sta. Rosa WD

Silay WD

San Francisco WD

San Pedro RACI CO

Muñoz WD

Bansalan WD

Tandag WD

Guimba WD

0.00 4.00 8.00 12.00 16.00

*No data for Calapan was available

30

Table 2.3Priority Needs of Utilities

Utilities Priority Needs of Utilities

Argao Prevention of contamination of water sources during floods Increase of production capacity from spring sources

Bansalan Development of new sources Computerization and construction of administration building

Buhi Improvement of transmission mains Expansion of service area

Calapan Sufficient volume of water for distribution Quality of water distributed

Darasa Financial assistance Technical assistance

Guimba Independent water systems for Barangays Consuelo, Cabarua, Triala and Culong Additional pumps and motors for Sta. Veronica, Bantug and San Roque pumping stations

Jagna Rehabilitation of the waterworks system Increase in water rates

Metro Carigara NRW reduction program Collection efficiency

Muñoz Expansion to other barangays Upgrading to a hydraulically efficient water distribution system

Nueva Vizcaya Rehabilitation of the existing system Design and development of a fully computerized collection system

Padada Funding for expansion Technical training such as plumbing

San Francisco Watershed protection and source development Expansion programs to other barangays

San Pedro MPC Additional submersible pump and water tank Rehabilitation of pipelines

San Pedro RACI Replacement of main pipes Rehabilitation of 8 deep wells

Silay Computerization of system Iron removal facility

Sta. Rosa Additional sources of water Extension of distribution pipelines

Tagbilaran Financial support Technical seminars on operation and maintenance

Tandag Additional water source Expansion of distribution lines, putting up reservoir and filtration plant

Tibal-og Non-revenue water reduction Additional pumping station

Victorias Elevated storage tank Full computerization

Figure 2.18Connection Fee for House Connection

Connection Fee (Php)

Uti

liti

es

Jagna LG*

Tagbilaran LG*

San Pedro MPC CO*

Tibal-og RW

Buhi CO

San Francisco WD

Victorias WD

Bansalan WD

Guimba WD

Muñoz WD

Padada CO

Tandag WD

Sta. Rosa WD

Silay WD

Metro Carigara WD

Darasa RW

Nueva Vizcaya LG

Argao CO

San Pedro RACI CO

Calapan PS 5200

0 500 1000 1500 2000 2500 3000 3500 4000


Financial

Figure 2.20Domestic Tariff Structures – Group 2

(San Francisco, Sta. Rosa, Calapan, Victorias)

22.5

20.0

17.5

15.0

12.5

10.0

0 10 20 30 40 50 60

Monthly Household Consumption (Cubic Meters)

San Francisco Santa Rosa Calapan Victorias


(Tandag, Muñoz, Guimba, Metro Carigara)

30.0

25.0

20.0

15.0

10.0

0 10 20 30 40 50 60


Tari

ff R

ate

in

Ph

p p

er

Cu

bic

Me

ter

Tandag Muñoz Guimba Metro Carigara

Tari

ff R

ate

in

Ph

p p

er

Cu

bic

Me

ter

32

Figure 2.22Domestic Tariff Structures – Group 4(Argao, Padada, Darasa, Tagbilaran)

12.0

10.0

8.0

6.0

4.0

2.0

0 10 20 30 40 50 60


Argao Padada Darasa Tagbilaran

Figure 2.21Domestic Tariff Structures – Group 3(Buhi, Tibal-og, Jagna, Nueva Vizcaya)

12.0

10.0

8.0

6.0

4.0

2.0

0 10 20 30 40 50 60


Buhi Tibal-og Jagna Nueva Vizcaya

Tari

ff R

ate

in

Ph

p p

er

Cu

bic

Me

ter

Tari

ff R

ate

in

Ph

p p

er

Cu

bic

Me

ter



(Silay, Bansalan, San Pedro RACI, San Pedro MPC)

40.0

32.0

24.0

16.0

8.0

0.0

0 10 20 30 40 50 60


Silay Bansalan San Pedro RACI San Pedro MPC

Figure 2.24Accounts Receivable

Accounts Receivable (Months)

Uti

liti

es

Sta. Rosa WD

Nueva Vizcaya LG

Buhi CO

Tandag WD

Muñoz WD

Guimba WD

San Francisco WD

San Pedro RACI CO

Silay WD

Victorias WD

Bansalan WD

Calapan PS

Darasa RW

Argao CO

Metro Carigara WD

Tibal-og RW

San Pedro MPC CO

Padada CO

Jagna LG

0 1 2 3 4 5

Tari

ff R

ate

in

Ph

p p

er

Cu

bic

Me

ter

*No data for Tagbilaran was available

34

Utility Cost of 50 m3

(Php)

Silay WD 1,390

Bansalan WD 1,150

Tandag WD 1,032

Carigara WD 925

Guimba WD 846

Sta. Rosa WD 766

Muñoz WD 763

Calapan PS 758

Victorias WD 727

San Francisco WD 666

San Pedro MPC CO 550

Darasa RW 447

San Pedro RACI CO 420

Tibal-og RW 390

Argao CO 370

Padada CO 368

Tagbilaran LG 358

Buhi CO 175

Jagna LG 158

Nueva Vizcaya LG 155


(Php)

Silay WD 680

Bansalan WD 600

Tandag WD 521

Carigara WD 484

Guimba WD 458

Sta. Rosa WD 426

Muñoz WD 426

Calapan PS 415

Victorias WD 362



Darasa RW 262


Tibal-og RW 210

Argao CO 210

Padada CO 203

Tagbilaran LG 188

Buhi CO 90

Jagna LG 88

Nueva Vizcaya LG 85


(Php)

Silay WD 420

Bansalan WD 370

Tandag WD 317

Carigara WD 310

Guimba WD 292

Muñoz WD 277

Sta. Rosa WD 276

Calapan PS 268

Victorias WD 224



Darasa RW 169


Argao CO 135

Tibal-og RW 129

Padada CO 128

Tagbilaran LG 118

Jagna LG 55

Nueva Vizcaya LG 55

Table 2.4Cost of Water for Domestic Use (House Connections)


(Php)

Silay WD 200

Bansalan WD 170

Carigara WD 151

Tandag WD 144

Guimba WD 140

Sta. Rosa WD 138

Muñoz WD 136

Calapan PS 130

Victorias WD 108


Darasa RW 82

San Pedro MPC CO 80


Argao CO 65

Padada CO 65

Tibal-og RW 60

Tagbilaran LG 56

Nueva Vizcaya LG 40

Jagna LG 25

Figure 2.25Operating Ratio

Operating Ratio (Expenses / Revenues)

Uti

liti

es

Jagna LG

Sta. Rosa WD

Bansalan WD

San Francisco WD

Metro Carigara WD

Muñoz WD

Tibal-og RW

Victorias WD

Darasa RW

San Pedro MPC CO

Tandag WD

Guimba WD

Buhi CO

Tagbilaran LG

Argao CO

Padada CO

Silay WD

San Pedro RACI CO

Nueva Vizcaya LG

Calapan PS

0.5 0.7 0.9 1.1 1.3 1.5


Figure 2.26Revenue Collection Efficiency

Percentage Collection over Billings

Uti

liti

es

Jagna LG

Darasa RW

San Pedro MPC CO

Calapan PS

Buhi CO

Nueva Vizcaya LG

San Pedro RACI CO

Silay WD

Victorias WD

Bansalan WD

Argao CO

Muñoz WD

San Francisco WD

Padada CO

Sta. Rosa WD

Tibal-og RW

Metro Carigara WD

Tandag WD

Guimba WD

Tagbilaran LG

0 25 50 75 100 125

36

Operation and Maintenance

Figure 2.27Annual Operation and Maintenance Costs

Annual O&M Costs (Php Million)

Uti

liti

es

Jagna LG

San Pedro MPC CO

Buhi CO

Nueva Vizcaya LG

Darasa RW

Padada CO

Argao CO

Tibal-og RW

Tagbilaran LG

Sta. Rosa WD

Guimba WD

Muñoz WD

San Francisco WD

San Pedro RACI CO

Metro Carigara WD

Bansalan WD

Calapan PS

Tandag WD

Victorias WD

Silay WD

0 3 6 9 12 15

Figure 2.28O&M Cost Components

Percent

Uti

liti

es

Personnel Power/Fuel Others

Argao CO

Bansalan WD

Buhi CO

Calapan PS

Darasa RW

Guimba WD

Jagna LG

Metro Carigara WD

Muñoz WD

Nueva Vizcaya LG

Padada CO

San Fancisco WD

San Pedro MPC CO

San Pedro RACI CO

Silay WD

St. Rosa WD

Tagbilaran LG

Tandag WD

Tibal-og RW

Victorias WD

0 10 20 30 40 50 60 70 80 90 100


Figure 2.29Leaks Repaired

No. of Leaks Repaired Annually

Uti

liti

es

San Pedro MPC CO

Guimba WD

Nueva Vizcaya LG

Darasa RW

San Francisco WD

Muñoz WD

Tibal-og RW

Buhi CO

Victorias WD

Silay WD

Tagbilaran LG

Jagna LG

Padada CO

Sta. Rosa WD

San Pedro RACI CO

Metro Carigara WD

Argao CO

Tandag WD

Calapan PS

Bansalan WD

0 250 500 750 1,000 1,250 1,500 1,750

Figure 2.30Meters Replaced

No. of Meters Replaced

Uti

liti

es

Tagbilaran LG

Jagna LG

Guimba WD

San Pedro MPC CO

San Pedro RACI CO

Argao CO

Nueva Vizcaya LG

Buhi CO

Darasa RW

Padada CO

Victorias WD

Sta. Rosa WD

Tandag WD

Bansalan WD

Tibal-og RW

Muñoz WD

Silay WD

Metro Carigara WD

San Francisco WD

Calapan PS 1,125

0 100 200 300 400 500

38

Figure 2.31Water Quality Sampling

No. of Samples Passed/Failed

Uti

liti

es

Passed Failed

526 - 16

Jagna LG

San Pedro MPC CO

Silay WD

Padada CO

Calapan PS

Nueva Vizcaya LG

Darasa RW

Muñoz WD

Sta. Rosa WD

San Pedro RACI CO

Guimba WD

Metro Carigara WD

Buhi CO

Tibal-og RW

Tandag WD

Bansalan WD

Argao CO

Victorias WD

Tagbilaran LG

San Francisco WD

0 25 50 75 100 125

Figure 2.32Complaints Received

No. of Complaints Received Annually

Uti

liti

es

5,341

*No data for Guimba was available

San Pedro MPC CO

Tagbilaran LG

Nueva Vizcaya LG

Buhi CO

Victorias WD

Tibal-og RW

Darasa RW

Sta. Rosa WD

Padada CO

Muñoz WD

Jagna LG

Silay WD

Metro Carigara WD

Argao CO

Tandag WD

San Francisco WD

Bansalan WD

San Pedro RACI CO

Calapan PS

0 500 1000 1500 2000 2500 3000 3500 4000


Figure 2.33New Connections

No. of New Connections Per Year

Uti

liti

es

Nueva Vizcaya LG

San Pedro MPC CO

Buhi CO

Jagna LG

Calapan PS

Darasa RW

Muñoz WD

Padada CO

San Pedro RACI CO

Metro Carigara WD

Argao CO

Tibal-og RW

Victorias WD

Bansalan WD

Silay WD

Tagbilaran LG

Guimba WD

Tandag WD

San Francisco WD

Sta. Rosa WD

0 50 100 150 200 250 300

40

Aearial photograph of Sta. Rosa, Laguna care of Google Earth (2005)

Supplying water to urbanizing Philippines is one of the country’s biggest challenges in the new millennium. Water suppy utilities need to be able to expand to meet demand in their growing markets.


PART IIIWATER UTILITY AND AREA PROFILES

42

Water Utility COMMUNITY WATER AND SANITATION SERVICE COOPERATIVE

Address : Nicolas Ortega Street, Poblacion, Argao, CebuTelephone : (63 32) 367 7222Fax : (63 32) 367 7222E-mail : noneHead : Mr. Eliezer E. Sarmago, Chairman, Board of Directors

Community Water and Sanitation Service Cooperative (COWASSCO) was established in 1994. The water supply system was constructed under an AusAID funding grant. COWASSCO is responsible for water supply in 8 out of 45 barangays of the municipality of Argao, which has a total population of 61,010. Its present service area has a population density of 1,159 persons/km2. The utility draws water from 3 deep wells and a spring source. Tariffs are approved by members of the cooperative during its regular general assembly meetings. The utility has a well developed management information system. Its development plan for 2004-2005 is aimed at increasing production capacity to serve the other barangays. COWASSCO submits an annual report to the NWRB.

Mission Statement “COWASSCO commits to effectively serve its members, consumers and the people of the community with continuous supply of water for the improvement of their quality of life through the protection of its water sources and by implementing relevant programs and projects in harmony with the ecology and environment.”

General DataAbout Water Utility

Connections : 2,711 Staff : 14 Annual O&M Costs : Php4,783,820 Annual Collections : Php4,572,354 Annual Billings : Php4,637,208 Total Capital Expenditure : Php15,085,949 Average capital expenditure/connection/year: Php1,461.82 (Over the last 5 years) Source of Investment Funds: 80% government grant, 11% coop members’ deposit, and 9% internally generated reserves

Tariff Structure (Effective 1 April 2004)

Category Residential* Commercial* Institutional

MINIMUM CHARGE (Php) (Php) (Php)

(First 10 m3 or less) 65.00 75.00 45.00

COMMODITY CHARGE

Consumption (m3) (Php/m3) (Php/m3) (Php/m3)

11 - 20 7.00 8.00 5.00

21 - 30 7.50 8.50 5.50

31 - 40 8.00 9.50 6.00

41 - 50 8.00 10.50 6.50

51 - 60 8.00 11.50 7.00

61 - 70 8.00 12.50 7.50

71 - 100 8.00 14.50 8.00

101 - up 8.00 17.50 8.50

*Rates apply to regular members of the cooperative. Non-regular members pay Php10.00 more for the minimum charge and Php1.00/m3 more

for the commodity charge.

Notes:1. All consumers pay on metered use. They are billed monthly and pay through bill collectors.2. Tariffs are approved by the members during the regular general assembly meeting and are regulated by NWRB.3. A total of 143 new connections were made in 2003. The cost of a new connection is Php3,350, payable within 12 months. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Prevent contamination of water sources during floods. 2. Increase production capacity from spring sources.

Consumer Service Average monthly consumption is about 22.4 m3 per household of 6 persons. The water bill averages Php135.27 per month per household. Water is available 22 hours a day to most users. Applicants have to wait for about 10-14 days for a new connection. The connection fee is payable in 12 months. Water quality is good with all 72 water samples taken passing the bacteriological tests. A total of 1,305 consumer complaints were recorded and 978 leaks repaired in 2003. The utility has no specific policy for providing water for the poor.

Performance Highlights COWASSCO provides water at 123 lpcd to its consumers at an average of 22 hours per day, but only 76.4% of the population in its service area is served due to limited source capacity. UFW of 16.6% is much better than the average. Both production and consumption (99%) are almost fully metered. Financial management needs to be improved with operating ratio at 1.03 and accounts receivable equivalent of 1.7 months, which is just above average. Average tariff is in the lowest quartile and will not be sufficient to develop new sources and expand coverage. The system was constructed using mostly foreign-sourced grant financing. It does not have enough internally generated reserves for capital development. Staff/1000 connections ratio at 5.2 is the third lowest.

ARGAO Utility Profile


ARGAO Area Profile

ARGAO WATER SUPPLY Population: 20,462 1

Production/Distribution

Average Daily Production

Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

2,522 m3

100%

Nil

Chlorination

770 m3

17.7 sq km

36.0 km

Service Connections

House (6 persons/HC)

Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

2,604

Nil

75

Nil

32

Nil

2,711

Service Indicators

Service Coverage 4

Water Availability 5

Per Capita Consumption

Average Tariff

76.4%

22 hours/day

123 l/c/d

Php6.04/m3

Efficiency Indicators

Unaccounted-for Water 6

Non-Revenue Water

Unit Production Cost

Operating Ratio

Accounts Receivable

Staff/1,000 Connections

16.6%

16.6%

Php5.20/m3

1.03

1.7 months

5.2

Notes: 1 Population refers to the present area served by the utility.2 All 72 water samples taken in 2003 passed the bacteriological tests.3 The total area of responsibility is 20.7 sq km. 4 The population not served by the water utility draws

water from 4 other service providers.5 Only 90% of consumers have 24-hour water supply; about

1,305 consumer complaints were registered in 2003.6 About 978 leaks were repaired and 30 meters

were either replaced or repaired.7 'Others' refer to institutional connections.8 'Others' include administrative expenses and depreciation.

Data as of 2003

Annual Water Use920,678 m3

Annual Water BillingsPhp4,637,207

Annual O&M CostsPhp4,783,820

UFW17%

Others7

4%

Commercial Industrial

3%Domestic

76%


5%

Domestic91%

Others7

4%

Personnel31%

Others8

14%

Parts/Materials

28%

Power27%

44

Water Utility BANSALAN WATER DISTRICT

Address : 1535 Ramon delos Cientos St., Bansalan, Davao del Sur, PhilippinesTelephone : (63 82) 553 9228Fax : (63 82) 553 9229Head : Mr. Paul J. Arches, General Manager

Bansalan Water District (BWD) is a government corporation set up in 1977. Its original waterworks system started operating in 1964 as part of the now defunct National Waterworks and Sewerage Authority (NAWASA). BWD is responsible for water supply in the town of Bansalan, which has a total population of 52,326. Its present service area, however, covers only 16 out of 25 barangays of Bansalan and has a population density of 738 persons/km2. The utility draws water from 2 deep wells and 3 spring sources. Staff salaries, appointments and tariffs are under government influence. BWD submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement “To provide efficient, safe and potable drinking water to all Bansaleños at affordable cost.”


Connections : 3,551 Staff : 34 Annual O&M Costs : Php10,768,704 Annual Collections : Php14,667,835 Annual Billings : Php14,905,140 Total Capital Expenditure : Php17,197,539 Average capital expenditure/connection/year: Php968.60 (Over the last 5 years) Source of Investment Funds : 73% internally generated reserves 27% employees cooperative fund

Tariff Structure (Effective 1 October 2001)

Category Domestic Commercial

MINIMUM CHARGE (Php) (Php)

(First 10 m3 or less) 170.00 340.00

COMMODITY CHARGE

Consumption (m3) (Php/m3) (Php/m3)

11 - 20 20.00 40.00

21 - 30 23.00 46.00

31 - 40 26.00 52.00

41 - up 29.00 58.00

Notes:1. All consumers pay on metered use. They are billed monthly and pay through banks or at the water utility office.2. Tariffs are regulated by the LWUA.3. There were 181 new connections in 2003. The cost of a new connection is Php2,100, payable within 12 months. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Development of new water sources. 2. Computerization and construction of administration building.

Consumer Service Average monthly consumption is about 15.7 m3 per household of 6 persons. The water bill averages Php329.35 per month per household. Water is available 18 hours a day to most users. Applicants have to wait for 2 days for a new connection. The connection fee is paid within 12 months. Water quality is good with all 72 samples taken passing the bacteriological tests. A total of 2,672 complaints were recorded and 1,650 leaks repaired in 2003. The utility has no specific policy for providing water for the poor.

Performance Highlights BWD has an operating ratio of 0.72 (the third lowest) although accounts receivable equivalent of 1.6 months is just average. It funded capital development using internally generated funds including the employees’ cooperative fund. The utility needs to improve customer satisfaction by increasing coverage (71.2%), water availability (18 hours/day), and per capita consumption (86 lpcd). Low consumption may be due to the average tariff of Php21.90/m3, which is the highest. Consumption is fully metered; production is not -- a circular orifice is used to estimate values. UFW at 20.8% can still be improved, although it is lower than the average. Staff/1000 connections ratio of 9.6 is third highest and needs to be reduced.

BANSALAN Utility Profile


BANSALAN Area Profile

BANSALAN WATER SUPPLY Population: 28,422 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

2,354 m3/d

100%

Nil

Chlorination

167 m3

38.5 sq km

60.7 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,372

Nil

127

Nil

52

Nil

3,551

Service Indicators

Service Coverage 4



Average Tariff

71.2%

18 hours/day

86 l/c/d

Php21.90/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


20.8%

20.8%

Php12.53/m3

0.72

1.6 months

9.6

Notes:

1 Population refers to the present area served by the utility.

2 All 72 water samples taken in 2003 passed bacteriological tests

3 Total area of responsibility is 48.6 sq. km.

4 The population not served by the water district draws water from other

service providers, dug wells and rain collectors

5 Only 85% of consumers have 24-hour water supply; about 2,672

consumer complaints were registered in 2003.

6 About 1,650 leaks were repaired and 208 meters were either replaced or

repaired.

7 'Others' refer to institutional connections.

8 'Others' include transportation, depreciation and other personnel benefits.

Data as of 2003




UFW21%Others7

2%Commercial

Industrial3%

Domestic74%


8%

Domestic89%

Others7

3%

Personnel36%

Others8

42%

Parts/Materials

13%

Power9%

46

Water Utility BUHI RURAL WATERWORKS AND SANITATION MULTI-PURPOSE COOPERATIVE

Address : Zone V, Nobleza Street, San Buena, Buhi, Camarines SurTelephone : (63 54) 621 1506Fax : (63 54) 621 1506E-mail : [email protected] : Mr. Homer C. Agudera, General Manager

Buhi Rural Waterworks and Sanitation Multi-Purpose Cooperative (BRWSAMPC) was established as an RWSA and started operating in 1987. It was converted into a multi-purpose cooperative in 2002. The utility is responsible for water supply in 8 of 38 barangays of the municipality of Buhi which has a total population of 73,149. Its present service area has a population density of 5,125 persons/km2. It draws water from the Bigajo Spring. None of its operations is influenced by the government. Tariff is regulated by the NWRB. BRWSAMPC follows a development plan for 2004-2008 aimed at improving its service and expanding its coverage to 5 other barangays. The utility has a partly developed management information system. Billing is computerized.

Mission Statement “To undertake the programs/projects that will improve the water supply system and expand the water services to achieve the avowed vision.”


Connections : 1,752 Staff : 15 Annual O&M Costs : Php1,869,425 Annual Collections : Php1,837,881 Annual Billings : Php1,917,449 Total Capital Expenditure : Php984,745 Average capital expenditure connection/year : Php112.41 (Over the last 5 years) Source of Investment Funds : 98% internally generated reserves, 2% government grant


Category Residential GovernmentInstitutions

CommercialIndustrial

Semi-Comm’l A

Semi-Comm’l B

Semi-Comm’l C

Bulk/Wholesale

MINIMUM CHARGE (Php) (Php) (Php) (Php) (Php) (Php) (Php)

(First 10 m3 or less) 25.00 30.00 50.00 43.75 37.50 31.25 75.00

COMMODITY CHARGE

Consumption (m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3)

11 - 20 3.00 3.60 6.00 5.25 4.50 3.75 9.00

21 - 30 3.50 4.20 7.00 6.00 5.25 4.40 10.50

31 - 40 4.00 4.80 8.00 7.00 6.00 5.00 12.00

41 - up 4.50 5.40 9.00 7.85 6.75 5.60 13.50

*Minimum charges are for ½” connection and increase with size of connection from ¾” to 4”. Commodity charges remain the same regardless of connection size.

Notes:1. All consumers pay on metered use. They are billed monthly and pay through bill collectors or at the water utility office.2. The NWRB allows tariffs that give utilities a rate of return of investment of up to 12% maximum.3. There were 55 new connections in 2003. The cost of a new connection is Php1,535, payable prior to connection. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Improvement of transmission mains. 2. Expansion of service area.

Consumer Service Average monthly consumption is about 23.1 m3 per household of 5-6 persons. The water bill averages Php81.40 per month per household. Water is available 18 hours a day to most users. Applicants have to wait 3 days for a new connection. The connection fee is paid prior to connection. Water quality is good with all 48 water samples taken passing the bacteriological tests. A total of 36 consumer complaints were recorded and 150 leaks repaired during the year. The utility has no specific policy for providing water to the poor.

Performance Highlights BRWASMPC provides 146 lpcd of water supply to its consumers at an average of 18 hours per day, but only 44.3% of the population in its service area is served. UFW of 29.8% is higher than the average and can be reduced further. Production is fully metered; 99% of connections are also metered. Operating ratio of 0.97 is higher than average and accounts receivable equivalent of 0.5 month is the third lowest. Lack of low-cost financing and low tariffs have prevented the utility from expanding its coverage and limiting capital expenditures (second to the lowest) to its available earnings. While staff/1000 connections ratio is not so high at 8.6, this can still be reduced as it is higher than the average.

BUHI Utility Profile


BUHI Area Profile

BUHI WATER SUPPLY Population: 19,577 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

1,994 m3

100%

Nil

Chlorination

226 m3

3.8 sq km

12.5 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

1,619

6

102

Nil

25

Nil

1,752

Service Indicators

Service Coverage 4



Average Tariff

44.3%

18 hours/day

146 l/c/d

Php3.73/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


29.3%

31.2%

Php2.57/m3

0.97

0.5 month

8.6

Notes:


2 All 48 water samples taken in 2003 passed the bacteriological tests.

3 The total area of responsibility is 125.9 sq km.

4 The population not served by the water utility draws water from other

service providers, tube wells, ponds and undeveloped springs.

5 Only 68% of consumers have 24-hour water supply; about 36 consumer

complaints were registered in 2003.

6 Water from public taps are free. About 150 leaks were repaired and 45

meters were either replaced or repaired.

7 'Others' refer to institutional connections.

8 'Others' include miscellaneous expenses.

Data as of 2003




UFW29%

Others7

2%


5%

Domestic64%


13%

Domestic82%

Others7

5%

Personnel67.8%

Others8

29.4%

Parts/Materials

2.5%Power0.3%

48

Water Utility CALAPAN WATERWORKS SYSTEM AND DEVELOPMENT CORPORATION

Address : F. Samaco Street, Barangay Calero, Calapan City, Oriental MindoroTelephone : (63 43) 288 3318; 441 0986Fax : (63 43) 288 1317E-mail : [email protected] : Mr. Jolly L. Ting, Chairman, Board of Directors

Calapan Waterworks System and Development Corporation (CWSDC) is a private water utility established in 1952. It is responsible for water supply in the city of Calapan, which has a total population of 105,910. Its present service area covers 24 of the city’s 62 barangays and has a population density of 3,739 persons/km2. CWSDC draws water from 4 deep wells.Tariff setting is regulated by the NWRB. The utility follows a development plan covering the period 2004-2009. The plan includes decommissioning of saline and inefficient wells, construction of reservoirs, upgrading of transmission and distribution lines, and rehabilitation of service lines. As a private corporation, CWSDC does not produce an annual report for the general public. It has a partly developed management information system. Its billing and customer services are computerized.

Mission Statement “CWSDC commits to provide sufficient and good quality water and be able to distribute it efficiently to every household in Calapan City. CWSDC shall be a partner of the community in assuring the health and economic well-being of Calapan City.”


Connections : 4,291 Staff : 40 Annual O&M Costs : Php11,528,999 Annual Collections : Php7,907,150 Annual Billings : Php8,281,384 Total Capital Expenditure : Php20,000,000 Average capital expenditure/connection/year: Php932.18 (Over the last 5 years) Source of Investment Funds : 100% advances from parent company

Tariff Structure (Effective 1 July 2004*)

Category Domestic/Government

Commercial/Industrial


(First 10 m3 or less) 130.00 160.00

COMMODITY CHARGE


11 - 20 13.75 17.00

21 - 30 14.75 18.25

31 - 40 16.25 20.00

41 - up 18.00 22.75

*This rates adjustment is the second of a two-stage increase sincethe approval of a rate adjustment in December 2002, the first adjustment was made in September 2003. The previous rates adjustment was in 1992.

Notes:1. All consumers pay on metered use. They are billed monthly and pay at the water utility office.2. The NWRB allows tariffs that give utilities a rate of return of investment of up to 12% maximum.3. There were 91 new connections in 2003. The cost of a new connection is Php5,200, payable prior to connection. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Sufficient volume of water for distribution. 2. Quality of water distributed.

Consumer Service Average monthly consumption is about 17.6 m3 per household of 5-6 persons. The water bill averages Php129.81 per month per household. Water is available 16 hours a day to most users. Applicants have to wait for about 15 days for a new connection. The connection fee is paid prior to connection. Water quality looks good with all 12 water samples taken passing the bacteriological test, although the number of samples taken seem to be too few. Some of the wells are also known to be drawing saline water. There were 5,341 consumer complaints recorded while all but 3 of 1,496 leaks reported were repaired during the year. While the utility connects the poor, there is no defined policy for providing water for them.

Performance Highlights CWSDC rates low in customer satisfaction with only 42.9% coverage in its present service area and average water availability of only 16 hours per day. Per capita consumption of 107 lcpd is sufficient for proper hygiene and low enough for water conservation. UFW of 40.6% is third highest and should be reduced. While consumption is 100% metered, production is not. Financial management needs improvement. The utility has the highest operating ratio of 1.39. Accounts receivable equivalent is an average 1.6 months. Staff/1000 connections ratio of 9.3 is fourth highest and should be reduced further.

CALAPAN Utility Profile


CALAPAN Area Profile

CALAPAN WATER SUPPLY Population: 44,119 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

4,632 m3/d

100%

Nil

Chlorination

52 m3

11.8 sq km

32.1 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,503

2

786

Nil

Nil

Nil

4,291

Service Indicators

Service Coverage 4



Average Tariff

742.9%

16 hours/day

107 l/c/d

Php8.25/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


40.6%

40.6%

Php6.82/m3

1.39

1.6 months

9.3

Notes:

1 Population refers to the present area served.

2 All of 12 water samples taken in 2003 passed the bacteriological tests.

3 Total area of responsibility is 186 sq. km.

4 The population not served by the water utility draw water from tube wells,

dug wells and water vendors.



6 About 1,493 leaks were repaired and 1,125 meters were either replaced

or repaired.

7 Other costs include debt service and depreciation

Data as of 2003

Annual Water Use1,690,636 m3



UFW40%


16%

Domestic44%


34%

Domestic66%

Personnel34%

Others7

53%

Parts/Materials

5%

Power8%

.

50

Water Utility DARASA RURAL WATERWORKS AND SANITATION ASSOCIATION

Address : Barangay Darasa, Tanauan City, BatangasTelephone : (63 43) 778 5864Fax : noneE-mail : noneHead : Mr. Felix M. Opeña, Chairman, Board of Directors

Darasa Rural Waterworks and Sanitation Association (DRWSA) is a community-based water utility established in 1982. It is responsible for water supply in Barangay Darasa, which has a total population of 14,964 and a population density of 2,993 persons/km2. The barangay is one of 48 in Tanauan City. DRWSA draws water from 5 deep wells. Tariff setting is regulated by the NWRB to which the utility submits an annual report containing financial, customer and operational data. Except for tariff setting, the local government has no influence over the policies and operations of DRWSA. The utility has a partly developed management information system.

Mission Statement “To provide adequate and potable water supply to Darasa residents in a responsible and sensible manner.”


Connections : 1,354 Staff : 9 Annual O&M Costs : Php3,427,813 Annual Collections : Php3,544,046 Annual Billings : Php3,906,192 Total Capital Expenditure : Php1,219,010 Average capital expenditure/connection/year: Php180.06 (Over the last 5 years) Source of Investment Funds : 79% internally generated reserves 15% government loan 6% commercial loan.

Tariff Structure (Effective 1 November 2001)

Category Residential Commercial


(First 10 m3 or less) 82.00 100.00

COMMODITY CHARGE


11 - 20 8.70 10.50

21 - up 9.25 11.05


Priority Need of Utility 1. Financial assistance. 2. Technical assistance.

Consumer Service Average monthly consumption is about 27.6 m3 per household of 6 persons. The water bill averages Php241.41 per month per household. Water is available 18 hours a day to most users. Applicants have to wait for about 2-3 days for a new connection. The connection fee is paid prior to connection. Water quality looks good with all 28 samples passing the bacteriological tests. There were 96 consumer complaints recorded and 40 leaks repaired during the year. While the utility connects the poor residents living along the railroad alley, there is no defined policy on providing water for the poor.

Performance Highlights DRWSA provides water at 121 lpcd to its consumers for only 18 hours a day on the average. Coverage is below average at 59.1% of the population in its service area. Consumer use is almost fully metered (98%), but production is not. While UFW of 16.4% is above average, this is at best an estimate. Operating ratio at 0.88 is better than average and accounts receivable equivalent of 1.6 months is just average. Tariffs are able to cover O&M costs and debt service for a government loan. Staff/1000 connections ratio (6.6) is better than average but can still be reduced. The utility needs funding to increase its coverage and develop additional water sources. It cannot, however. afford commercial loans. Moreover, low-interest government loans are not available to RWSAs.

DARASA Utility Profile


DARASA Area Profile

DARASA WATER SUPPLY Population: 14,964 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

1,527 m3/d

100%

Nil

None

125 m3

5.0 sq km

5.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional 4

Others

TOTAL

1,173

Nil

171

Nil

10

Nil

1,354

Service Indicators

Service Coverage 5



Average Tariff

59.1%

18 hours/day

121 l/c/d

Php8.38/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


16.4%

21.6%

Php6.15/m3

0.88

1.6 months

6.6

Notes

1 Population refers to the whole barangay of Darasa.


3 About 300 households share water from those with house connections.

4 Institutional connections refer to churches and barangay halls.

5 The population not served by the water utility draws water from water

systems of 3 subdivisions.



7 About 40 leaks were repaired and 54 meters were either replaced or

repaired.

8 Institutional connections are not billed, including 5 well site owners.

9 Other costs include representat ion, suppl ies, transportat ion and

communication expenses.

Data as of 2003




UFW16%

Others8

5%


9%

Domestic70%


13%

Domestic87%

Personnel28%

Others9

18%

Parts/Materials

11%

Power43%

52

Water Utility GUIMBA WATER DISTRICT

Address : Corner Faigal & Danzalan Streets, Guimba, Nueva EcijaTelephone : (63 44) 611 1207; 611 0141Fax : (63 44) 611 0141Head : Engr. Felixberto C. Legarda, General Manager

Guimba Water District (GWD) is a government corporation set up in 1987. It started operating in 1988. It is responsible for water supply in the town of Guimba, which has a total population of 93,787. Its present service area covers only 14 of the town’s 64 barangays and has a population density of 650 persons/km2. GWD draws groundwater from 2 deep wells at the Sta. Veronica and Bantug pumping stations. Number of staff and salaries, appointment of top management, and tariffs are under government influence. The utility has a partly developed management information system with a computerized billing system. GWD submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement No mission statement.


Connections : 1,655 Staff : 23 Annual O&M Costs : Php7,819,390 Annual Collections : Php8,797,565 Annual Billings : Php8,191,860 Total Capital Expenditure : Php5,988,282 Average capital expenditure/connection/year: Php723.66 (Over the last 5 years) Source of Investment Funds : n.a.

Tariff Structure (Effective 1 July 2001)



CommercialA

CommercialB

CommercialC

Bulk/Wholesale

MINIMUM CHARGE (Php) (Php) (Php) (Php) (Php) (Php)

(First 10 m3 or less) 140.00 280.00 245.00 210.00 175.00 420.00

COMMODITY CHARGE

Consumption (m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3)

11 - 20 15.15 30.30 26.50 22.70 18.50 45.45

21 - 30 16.65 33.30 29.10 24.95 20.80 49.95

31 - 40 18.40 36.80 32.20 27.60 23.00 55.20

41 - 50 20.35 40.70 35.60 30.50 25.40 61.05

51 - up 22.50 45.00 39.35 33.75 28.10 67.50

Notes:1. All consumers pay on metered use. They are billed monthly and pay at the water utility office.2. Tariffs are regulated by the LWUA.3. There were 249 new connections in 2003. The cost of a new connection is Php2,200, payable prior to connection. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Independent water systems for Barangays Consuelo, Cabarua, Triala and Culong2. Additional pumps and motors for Sta. Veronica, Bantug and San Roque pumping stations.

Consumer Service Average monthly consumption is about 18.6 m3 per household of 6-7 persons. The water bill averages Php347.07 per month per household. Water is available 24 hours a day to users. Applicants wait only for one day for a new connection. The connection fee is paid prior to connection. Water quality is good with all 48 samples taken passing the bacteriological tests. Consumer complaints were acted upon within a day and were not recorded. All 30 leaks reported were repaired. The utility has no specific policy for providing water for the poor.

Performance Highlights GWD provides 24-hour water supply, but it has the second lowest coverage (26.8%) and relatively low consumption (94 lpcd), which is within the lowest quartile. It has the second highest average tariff (Php21.09/m3) and the highest production cost (Php15.21/m3). Tariffs are able to cover operating expenses with an operating ratio of 0.95. Accounts receivable equivalent is 1.0 month, the fifth lowest. UFW of 24.4% is just below average. Both production and consumption are fully metered. The utility has the highest staff/1000 connections ratio at 13.9 with personnel expenses representing about one-third of total O&M cost.

GUIMBA Utility Profile


GUIMBA Area Profile

GUIMBA WATER SUPPLY Population: 35,009 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

1,408 m3/d

100%

Nil

Chlorination

230 m3

53.9 sq km

41.8 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

1,446

Nil

186

Nil

23

Nil

1,655

Service Indicators

Service Coverage 4

Water Availability


Average Tariff

26.8%

24 hours/day

94 l/c/d

Php21.09/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


24.4%

24.4%

Php15.21/m3

1.95

1.0 months

13.9

Notes:


2 2 out of 38 water samples taken in 2003 failed the bacteriological

tests.


4 The population not served by the water district draws water from

shallow wells.

5 In 2003, about 30 leaks were repaired and 23 meters were replaced

or repaired.

6 & 7 'Others' refer to institutional connections.

8 'Others' include miscellaneous, administrative, finance and depreciation

costs.

Data as of 2003




UFW24%

Others6

4%


9%Domestic

63%


21%

Domestic73%

Others7

6%

Personnel32%

Others8

40%

Parts/Materials

13%Power15%

54

Water Utility JAGNA WATERWORKS SYSTEM

Address : Poblacion, Jagna, BoholTelephone : (63 38) 238 2916Fax : (63 38) 532 0018E-mail : noneHead : Hon. Exuperio C. Lloren, Municipal Mayor

Jagna Waterworks System (JWS) is a local government-run utility established in 1925. It is responsible for water supply in the municipality of Jagna, which has a total population of 12,658. Its present service area covering 11 of the municipality’s 33 barangays has a population density of 3,067 persons/km2. The utility draws water from a spring which is then distributed by gravity to consumers. Tariff is set through municipal ordinance. The number and appointment of staff and top management as well as staff salaries, tariffs and budgets are all under local government influence. JWS has a partly developed management information system with a computerized accounting system. It follows a master development plan for 1999–2014 aimed at expanding coverage in the urban areas. The utility submits financial statements as part of the Municipal Government of Jagna’s financial report.



Connections : 1,511 Staff : 9 Annual O&M Costs : Php754,631 Annual Collections : Php775,404 Annual Billings : Php1,269,191 Total Capital Expenditure : Php4,181,749 Average capital expenditure/connection/year: Php553.51 (Over the last 5 years) Source of Investment Funds : 80% internally generated reserves 20% government grant.


Category All Users*

MINIMUM CHARGE (Php)

(First 10 m3 or less) 25.00

COMMODITY CHARGE

Consumption (m3) (Php/m3)

11 - 25 3.00

26 - 50 3.50

51 - 75 4.00

75 - 100 4.50

101 - up 5.00

*A surcharge of 10% of the corresponding charge is imposed for failure to pay the water bill within the prescribed period.

Notes:1. All consumers pay on metered use. They are billed monthly and pay at the water utility office.2. Tariffs are set by municipal ordinance and are not regulated by NWRB.3. There were 75 new connections in 2003. The connection fee is Php200, payable prior to connection. Labor and materials costs

are borne by the user. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Rehabilitation of the waterworks system. 2. Increase in water rates.

Consumer Service Average monthly consumption is about 20.1 m3 per household of 5 persons. The water bill averages Php70.46 per month per household. Water is available 18 hours a day to most users. Applicants have to wait for about 3 days for a new connection. The connection fee is paid prior to connection. Water quality monitoring is insufficient and 1 out of 4 water samples taken failed the bacteriological tests. There were 450 consumer complaints recorded and 209 leaks repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights JWS provides 132 lpcd of water to its consumers, but only for an average of 18 hours a day. Coverage is 77.9% of its service area population and can be further improved. At 20.3%, UFW is just a little better than the average. Production is fully metered; 92% of all connections have working meters. While operating ratio (0.59) is lowest and looks excellent, accounts receivable equivalent is the worst at 4.7 months. In reality, annual collections barely cover O&M costs. Average tariff is second to the lowest (Php3.49/m3) and there is no debt service. Personnel cost is 79% of O&M cost leaving less for repair, maintenance and improved operations. Staff/1000 connections ratio is 6.0, the fifth lowest within the top quartile.

JAGNA Utility Profile


JAGNA Area Profile

JAGNA WATER SUPPLY Population: 9,629 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

1,252 m3/d

100%

Nil

Chlorination

158 m3

3.1 sq km

9.4 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

1,501

Nil

Nil

Nil

10

Nil

1,511

Service Indicators

Service Coverage 4



Average Tariff

77.9%

18 hours/day

132 l/c/d

Php3.49/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


20.3%

20.6%

Php1.65/m3

0.59

4.7 months

6.0

Notes:


2 One of 4 water samples taken in 2003 failed the bacteriological tests.



service providers, and shallow and deep wells.




repaired.

7 'Others' include institutional connections which are not billed.

8 'Others' include transportation, communication and miscel laneous

expenses.

Data as of 2003



Annual O&M CostsPhp754,631

UFW20.3%Others7

0.3%

Domestic79.4%

Domestic100%

Personnel79%

Others8

3%Parts/Materials

13%

Power5%

56

Water Utility METRO CARIGARA WATER DISTRICT

Address : 520 Real Street, Baybay, Carigara, LeyteTelephone : (63 53) 331 2431; 331 2528Fax : (63 53) 331 2431E-mail : [email protected] : Engr. Regidor V. Caballes, General Manager

Metro Carigara Water District (MCWD) is a government corporation set up in 1983. Its original waterworks system started operating in 1963 as part of the now defunct National Waterworks and Sewerage Authority (NAWASA). It is responsible for water supply in the towns of Carigara, Capoocan, Tunga and Barugo, which have a total population of 112,782 spread out in 115 barangays. Its present service area covers only part of these towns and has a population density of 1,516 persons/km2. The utility draws water from surface water and spring sources. Staff salaries, staff and management appointments, tariffs, O&M and development budgets are under government influence. The utility has a partly developed management information system with a computerized billing system. MCWD submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement “Efficiency in management, excellence in service, abundance in clean and safe water. This is our mission, our commitment”.


Connections : 3,500 Staff : 31 Annual O&M Costs : Php 10,201,263 Annual Collections : Php 13,255,320 Annual Billings : Php 12,522,613 Total Capital Expenditure : Php 5,235,422 Average capital expenditure/connection/year: Php300.63 (Over the last 5 years) Source of Investment Funds : n.a.


Category Residential Commercial CommercialA

CommercialB

CommercialC

MINIMUM CHARGE (Php) (Php) (Php) (Php) (Php)

(First 10 m3 or less) 151.20 302.40 264.60 226.80 189.00

COMMODITY CHARGE

Consumption (m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3) (Php/m3)

11 - 20 15.85 31.70 27.70 23.75 19.80

21 - 30 17.45 34.90 30.50 26.15 21.80

31 - 40 20.00 40.00 35.00 30.00 25.00

41 - up 24.05 48.10 42.05 36.05 30.05

Bulk Supply = 3 times the residential rate

*Minimum charges for residential and commercial connections are for ½” connections. This increases to Php483.80 and Php967.60, respectively,for 1” connections with commodity charges remaining unchanged.

Notes:1. Consumers pay on metered use. They are billed monthly and pay at the water utility office.2. Tariffs are regulated by LWUA.3. There were 129 new connections in 2003 with 50 pending applications at the end of the year. The cost of a new connection is

Php3,004 with 50% payable prior to connection and, the balance, over the succeeding 3 months. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. NRW reduction program. 2. Collection efficiency.

Consumer Service Average monthly consumption is about 15.7 m3 per household of 6 persons. The water bill averages Php265.37 per month per household. Water is available 24 hours a day to users. Applicants have to wait for about 3 days for a new connection. Half of the connection fee is paid prior to connection and the balance, over 3 months. Water quality is good with all 48 samples taken passing the bacteriological tests. In 2003, 923 consumer complaints were recorded and all 625 leaks were repaired. The utility has no specific policy for providing water for the poor.

Performance Highlights MCWD provides 24-hour water supply with a respectable 81.5% coverage, although average consumption (86 lpcd) is the second lowest. Tariffs are able to cover O&M and capital expenses with an operating ratio of 0.81 although accounts receivable equivalent of 2.1 months needs to be improved. The utility also needs to improve water resources management by reducing UFW (37.9%) and improving production metering (70% metered). All connections are metered. Low per capita consumption may be due to the relatively high tariff (Php17.99/m3). Staff/1000 connections ratio of 8.9 should be reduced as it is higher than the average.

METRO CARIGARA Utility Profile


METRO CARIGARA Area Profile

METRO CARIGARA WATER SUPPLY Population: 24,258 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

3,070 m3/d

Nil

100%

Chlorination

133 m3

16.0 sq km

28.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,296

Nil

97

107

Nil

Nil

3,500

Service Indicators

Service Coverage 4



Average Tariff

81.5%

24 hours/day

86 l/c/d

Php17.99/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


37.9%

38.0%

Php9.11/m3

0.81

2.1 months

8.9

Notes:


2 All 48 water samples taken in 2003 passed bacteriological tests.



service providers, dug and tube wells and developed springs.

5 About 973 consumer complaints were registered in 2003.


repaired.

7 Institutional use and billing are included under commercial connections.

8 ‘Others’ include miscellaneous and O&M expenses.

Data as of 2003




UFW38%


7%Domestic

55%


16%

Domestic84%

Personnel37%

Others8

47%

Parts/Materials

15%

Power1%

58

Water Utility MUÑOZ WATER DISTRICT

Address : E. Bayuga Street, Muñoz City, Nueva EcijaTelephone : (63 44) 456 0599Fax : (63 44) 456 0599Head : Engr. Rogelio L. Miguel, General Manager

Muñoz Water District (MWD) is a government corporation established in 1987. It started full operations in 1992. It is responsible for water supply in the city of Muñoz, which has a total population of 53,000. Its present service area covers only 8 of the city’s 37 barangays and has a population density of 1,430 persons/km2. MWD draws groundwater from 2 deep wells. The number of staff and salaries, appointment of staff and top management, and tariffs are under government influence. The utility follows a development plan for 1994-2004. Billing is computerized. MWD submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement “To uplift the quality of life through continuous delivery of safe, adequate and viable water to the public with a well defined system of operation to assure an efficient and responsive customer service.”


Connections : 2,560 Staff : 20 Annual O&M Costs : Php 8,783,895 Annual Collections : Php 10,735,055 Annual Billings : Php 10,882,739 Total Capital Expenditure : Php 6,858,834 Average capital expenditure/connection/year: Php535.85 (Over the last 5 years) Source of Investment Funds : 100% internally generated reserves.



CommercialIndustrial

CommercialA

CommercialB

CommercialC

Bulk/Wholesale

MINIMUM CHARGE* (Php) (Php) (Php) (Php) (Php) (Php)

(First 10 m3 or less) 136.00 272.00 238.00 204.00 170.00 408.00

COMMODITY CHARGE


11 - 20 14.10 28.20 24.65 21.15 17.60 42.30

21 - 30 14.85 29.70 25.95 22.25 18.55 44.55

31 - 40 16.10 32.20 28.15 24.15 20.10 48.30

41 - 50 17.60 35.20 30.80 26.40 22.00 52.80

51 - up 19.35 38.70 33.85 29.00 24.15 58.05


Notes:1. All consumers pay on metered use. They are billed monthly and pay at the water utility office.2. Tariffs are regulated by the LWUA.3. There were 113 new connections in 2003. The cost of a new 1/2” connection is Php2,300. This increases with size and distance

from water mains. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Expansion to other barangays. 2. Upgrading to a hydraulically efficient water distribution system.

Consumer Service Average monthly consumption is about 23.2 m3 per household of 6-7 persons. The water bill averages Php 318.31 per month per household. Water is available 24 hours a day. Applicants have to wait for about a week for a new connection. The connection fee is paid prior to connection. Water quality is good with all 36 water samples taken passing the bacteriological tests. There were 238 consumers complaints recorded and 119 minor leaks repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights MWD has the lowest UFW at 6.7% with full metering for both production and consumer use. Per capita consumption of 117 lcpd is sufficient for proper hygiene and low enough for water conservation. Water is available 24 hours a day, although it can still improve on its present coverage of 75.9% of the population in its service area. MWD is managing its finances well with an operating ratio of 0.81 and accounts receivable equivalent of 1.0 month. It is not dependent on grants for capital investment and is funding expansion through internally generated reserves. Tariffs are able to cover O&M as well as expansion costs. While staff/1000 connections ratio is not so high at 7.8, this should be reduced as it is higher than the average.

MUÑOZ Utility Profile


MUÑOZ Area Profile

MUÑOZ WATER SUPPLY Population: 19,307 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

2,152 m3/d

100%

Nil

Chlorination

273 m3

13.5 sq km

23.4 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

2,255

Nil

271

Nil

34

Nil

2,560

Service Indicators

Service Coverage 4



Average Tariff

75.9%

24 hours/day

117 l/c/d

Php14.84/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


6.7%

7.0%

Php11.18/m3

0.81

1.0 month

7.8

Notes:


2 All 36 water samples taken in 2003 passed bacteriological tests.



other service providers and shallow wells.


6 About 119 leaks were reported in 2003 while 333 meters were either

replaced or repaired.

7 & 8 ‘Others’ refer to institutional connections.

9 ‘Others’ include transporation, depreciation, debt service and other

personnel benefits.

Data as of 2003




UFW7%

Others7

3%Commercial

Industrial10%

Domestic80%


17%

Domestic79%

Others8

4%

Personnel35%

Others9

43%

Parts/Materials

9%

Power13%

60

Water Utility PROVINCIAL WATERWORKS SYSTEM

Address : Provincial Capitol, Bayombong, Nueva VizcayaTelephone : (63 78) 805 3911Fax : (63 78) 321 2752E-mail : noneHead : Engr. Arthur P. Ragasa, Waterworks Superintendent II

The Provincial Waterworks System (PWS) of Nueva Vizcaya is a provincial government-run utility established in 1960. It is responsible for water supply in the town centers of the municipalities of Bayombong and Solano which have a combined population of 110,090. The present service area has a population density of 1,185 persons/km2. The utility draws water from spring sources. Tariff is set by the provincial legislative body as a tax ordinance. Number and appointment of staff and top management as well as staff salaries, tariffs and budgets are all under local government influence. Billing and accounting are computerized. PWS follows a master development plan for 2003–2012 aimed at rehabilitating and expanding the present system. The utility submits an annual report to the Nueva Vizcaya Provincial Government.

Mission Statement “To be of true value to our customers. We always strive for the best in giving quality service, providing safe and affordable water to improve the quality of life and generate revenue for the province.”


Connections : 2,078 Staff : 13 Annual O&M Costs : Php2,303,877 Annual Collections : Php1,879,705 Annual Billings : Php1,950,205 Total Capital Expenditure : Php1,200,000 Average capital expenditure/connection/year: Php115.50 (Over the last 5 years) Source of Investment Funds : 100% government grant (from 20% of internal revenue allotment)

Tariff Structure (Effective 1 January 2004)

Category Residential Institutional Commercial


(First 10 m3 or less) 40.00 40.00 50.00

COMMODITY CHARGE


16 - 40 3.00 3.00 4.00

41 - up 4.00 4.00 5.00

Notes:1. All consumers pay on metered use. They are billed monthly and pay through bill collectors or at the water utility office.2. Tariffs are set as a tax ordinance by the Sangguniang Panlalawigan (provincial legislature) and are not regulated by NWRB.3. There were 36 new connections in 2003. The cost of a new connection is Php3,250, payable prior to connection. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Rehabilitation of the existing system. 2. Design and development of a fully computerized collection system.

Consumer Service Average monthly consumption is about 20.9 m3 per household of 6 persons. The water bill averages Php64.62 per month per household. Water is available 17 hours a day to most users. Applicants have to wait for only one day for a new connection. The connection fee is paid prior to connection. Water quality is good with all 24 water samples taken passing the bacteriological tests, although sampling points and frequency should be increased. During the year, only 20 consumer complaints were recorded while 39 leaks were repaired. The utility has no specific policy for providing water to the poor.

Performance Highlights The Nueva Vizcaya PWS provides only 17 hours of water supply per day, the third lowest among the utilities, and to only 18.7% of the population in its service area, the lowest coverage. Consumption of 114 lcpd is sufficient for proper hygiene and low enough for water conservation. UFW is highest at 59.7% which is reflected in its repair and maintenance data with only 39 leaks repaired and 40 meters replaced in 2003. While all connections are metered, production is not. Financial performance is mixed with the second highest operating ratio at 1.18 and one of the lowest accounts receivable equivalent of 0.4 month. Average tariff is the lowest at Php3.23/m3. Staff/1000 connections ratio of 6.3 is just below the top quartile among the utilities. Personnel expenses represent 81% of O&M costs, leaving less for repair and maintenance.

NUEVA VIZCAYA Utility Profile


NUEVA VIZCAYA Area Profile

NUEVA VIZCAYA WATER SUPPLY Population: 61,594 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

4,105 m3/d

100%

Nil

Chlorination

1,900 m3

52.0 sq km

21.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

1,918

Nil

126

Nil

34

Nil

2,078

Service Indicators

Service Coverage 4



Average Tariff

18.7%

17 hours/day

114 l/c/d

Php3.23/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


59.7%

61.7%

Php1.54/m3

1.18

0.4 month

6.3

Notes:

1 Population refers to the present service area in the municipalities of

Bayombong and Solano.



4 The population not served by the water utility draws water from

shallow and deep wells.

5 Only 18% of consumers have 24-hour water supply; about 20



repaired.


Data as of 2003




UFW60%

Others7

3%


5%Domestic32%


14%

Domestic76%

Others8

10%

Personnel81%

Parts/Materials

14%

Power5%

62

Water Utility PADADA WATER SYSTEM COOPERATIVE

Address : Roxas Street, Almendras District, Padada, Davao del SurTelephone : (63 82) 442 1811Fax : noneE-mail : noneHead : Mr. Nicomedes R. Paqueo, Manager

Padada Water System Cooperative (PAWASCO) started operating in September 1987 as a waterworks and sanitation association. It was converted into a cooperative in 1992. It is responsible for water supply in 10 out of 17 barangays of the municipality of Padada, which has a total population of 24,112. Its present service area has a population density of 641 persons/km2. The utility draws water from groundwater sources. Tariff is regulated by NWRB to whom PAWASCO also submits an annual report. PAWASCO has a partly developed management information system with computerized billing. It follows a development plan for 2003–2005 aimed at extending its services to the entire municipality.

Mission Statement “Quality and meaningful service – effective, efficient and responsive.”


Connections : 2,049 Staff : 13 Annual O&M Costs : Php3,800,167 Annual Collections : Php3,633,456 Annual Billings : Php3,575,182 Total Capital Expenditure : Php3,141,805 Average capital expenditure/connection/year: Php308.17 (Over the last 5 years) Source of Investment Funds : 100% internally generated reserves.


Category All Users



COMMODITY CHARGE


11 - 15 6.05

16 - 20 6.60

21 - 25 7.15

26 - 30 7.70

31 - up 8.25


Priority Need of Utility 1. Funding for expansion. 2. Technical training such as plumbing.

Consumer Service Average monthly consumption is about 19.3 m3 per household of 4 persons. The water bill averages Php139.05 per month per household. Water is available 21 hours a day to users. Applicants have to wait for about 2 days for a new connection. The connection fee is paid prior to connection. While all 12 water samples taken passed the bacteriological tests, water quality monitoring is too limited in number of samples and frequency. There were 129 consumer complaints recorded and 242 leaks repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights PAWASCO provides 159 lcpd of water supply to its consumers at an average of 21 hours per day but covers only 46.6% of the population in its service area. It has UFW of 10.7% which is the third lowest. However, production is not metered and not all connections (95%) are effectively metered. The utility needs to improve its financial performance with its operating ratio of 1.06, the fifth highest, and accounts receivable equivalent of 3.2 months, the second highest. It can still increase tariff considering that its current average tariff is only 64% of the average among the utilities. Staff/1000 connections ratio is 6.3, just below the top quartile.

PADADA Utility Profile


PADADA Area Profile

PADADA WATER SUPPLY Population: 16,828 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

1,500 m3

100%

Nil

Chlorination

208 m3

26.2 sq km

no data

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

1,960

Nil

53

1

35

Nil

2,049

Service Indicators

Service Coverage 4



Average Tariff

46.6%

21 hours/day

159 l/c/d

Php7.31/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


10.7%

11.5%

Php6.94/m3

1.06

3.2 months

6.3

Notes:



3 The total area of responsibility is 47.5 sq km.

4 The population not served by the water utility draws water from tube

wells and rain collectors.



6 About 242 leaks were repaired and 102 meters were either replaced

or repaired.

7 & 8 ‘Others’ refer to institutional connections.

9 ‘Others’ include repair and maintenance expenses.

Data as of 2003




UFW11%

Others7

3%Commercial

Industrial3%

Domestic83%


5%

Domestic91%

Others8

4%

Personnel27%

Others9

52%

Parts/Materials

2%

Power19%

64

Water Utility SAN FRANCISCO WATER DISTRICT

Address : Osmenia Street, Barangay 2, San Francisco, Agusan del SurTelephone : (63 85) 343 8623; 839 0457Fax : (63 85) 363 1330Head : Mr. Elmer T. Luzon, General Manager

San Francisco Water District (SFWD) is a government corporation established in 1988. Its original waterworks system started operations in 1976 and was run by the local government. SFWD is responsible for water supply in the town of San Francisco, which has a total population of 61,676. Its present service area covers only 13 of the town’s 27 barangays and has a population density of 2,459 persons/km2. SFWD draws water from Tinggangawan Creek and other spring sources. The number of staff and salaries, appointment of staff and top management, and tariffs are under government influence. The utility has a partly developed management information system. Billing and accounting are computerized. SFWD submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement “The SFWD is committed to provide potable water supply at a cost reasonable for the consumers, using technologically-advanced facilities, manned and maintained by highly-trained and effective manpower working for the stakeholders’ satisfaction.”


Connections : 2,878 Staff : 21 Annual O&M Costs : Php 9,313,480 Annual Collections : Php12,255,992 Annual Billings : Php12,364,291 Total Capital Expenditure : Php51,090,546 Average capital expenditure/connection/year: Php3,550.42 (Over the last 5 years) Source of Investment Funds : 100% government loan.




CommercialA

CommercialB

CommercialC

Bulk/Wholesale


(First 10 m3 or less) 105.00 210.00 183.75 157.50 131.25 315.00

COMMODITY CHARGE


11 - 20 11.65 23.30 20.40 17.50 14.60 34.95

21 - 30 13.15 26.30 23.00 19.70 16.45 39.45

31 - 40 14.80 29.60 25.90 22.20 18.50 44.40

41 - 50 16.50 33.00 28.90 24.75 20.60 49.50

51 - up 18.40 36.80 32.20 27.60 23.00 55.20

Notes:1. All consumers pay on metered use. They are billed monthly and pay at the water utility office.2. Tariffs are regulated by LWUA.3. There were 281 new connections in 2003 with 98 pending applications at the end of the year. The cost of a new connection is

Php1,630, payable prior to connection.4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Watershed protection and source development. 2. Expansion programs to other barangays.

Consumer Service Average monthly consumption is about 20.9 m3 per household of 7 persons. The water bill averages Php265.85 per month per household. Water is available 21 hours a day to most users. Applicants have to wait for about 5 days for new a connection. The connection fee is paid prior to connection. Water quality needs closer monitoring as 16 out of 578 samples taken failed the bacteriological tests. There were 1,736 consumer complaints recorded and 50 leaks repaired during the year. The utility has no specific policy for providing water to the poor.

Performance Highlights SFWD has the fourth lowest operating ratio at 0.75. Accounts receivable equivalent of 1.1 months is the seventh lowest. Tariffs are able to cover both O&M costs and debt service. Both production and consumption are fully metered. UFW is 14.7%, better than 2/3 of the other utilities. However, coverage is only 40.2%, the fourth lowest. Average water availability is 21 hours per day and consumption is 98 lpcd. The utility needs to improve its performance on these customer-related parameters. While staff/1000 connections ratio is just about average at 7.3, this can still be reduced.

SAN FRANCISCO Utility Profile


SAN FRANCISCO Area Profile

SAN FRANCISCO WATER SUPPLY Population: 40,325 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

2,517 m3/d

68%

32%

Chlorination

1,100 m3

16.4 sq km

50.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

2,318

Nil

560

Nil

Nil

Nil

2,878

Service Indicators

Service Coverage 4



Average Tariff

40.2%

21 hours/day

98 l/c/d

Php15.77/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


14.7%

14.7%

Php10.14/m3

0.75

1.1 months

7.3

Notes:


2 16 out of 578 water samples taken in 2003 failed the bacteriological tests.



service providers, tube wells and rain collectors.



6 Only 50 leaks were repaired and 436 meters were either replaced or

repaired.

7 'Others' include O&M expenses and depreciation.

Data as of 2003




UFW15%


22%

Domestic80%


40%

Domestic60%

Personnel26%

Others7

46%

Parts/Materials

26%

Power2%

66

Water Utility SAN PEDRO MULTI-PURPOSE COOPERATIVE, INC.

Address : 32 San Pedro, Sto. Tomas, BatangasTelephone : (63 43) 405 9923Fax : noneE-mail : noneHead : Mrs. Peñafrancia Gonzaga, Manager

San Pedro Multi-Purpose Cooperative (SPMPC) was established by a local NGO in 1994. It is responsible for water supply in only one barangay in the municipality of Sto. Tomas. Barangay San Pedro has a total population of 2,836. The utility draws water from 3 deep wells. Tariff is set by its own board of directors and is not regulated by NWRB. SPMPC has a well-developed management information system. It follows a development plan for 2003–2005 aimed at extending its coverage to unserved households outside its present service area within the barangay and rehabilitating its existing system. It submits an annual report to the Cooperative Development Authority of the Philippines.



Connections : 645 Staff : 6 Annual O&M Costs : Php 946,078 Annual Collections : Php1,015,617 Annual Billings : Php1,074,968 Total Capital Expenditure : none Average capital expenditure/connection/year: Nil (Over the last 5 years) Source of Investment Funds : n.a.


Category All Users



COMMODITY CHARGE*


11 - 15 9.00

16 - 20 10.00

21 - 25 11.00

26 - 30 12.00

31 - up 13.00

*Commodity charge increases by Php1.00/m3 for every block of 5 m3 beyond the minimum of 10 m3, Php2.00/m3 for every block of 5 m3 beyond 40 m3,Php4.00/m3 for every block of 5 m3 beyond 100 m3.

Notes:1. All consumers pay on metered use. They are billed monthly and pay through bill collectors.2. Tariffs are not regulated by NWRB.3. There were 40 new connections in 2003. The cost of a new connection is Php500, payable prior to connection. This does not

include materials and installation costs.4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Additional submersible pump and water tank. 2. Rehabilitation of pipelines.

Consumer Service Average monthly consumption is about 18.7 m3 per household of 4 persons. The water bill averages Php132.94 per month per household. Water is available 24 hours a day to most users. Applicants have to wait for about 2 weeks for a new connection. The connection fee is paid prior to connection. While all 6 water samples taken passed the bacteriological tests, water quality monitoring is too limited in number of samples and frequency. There were only 5 consumer complaints recorded and only 20 leaks repaired during the year. The utility has no specific policy for providing water to the poor.

Performance Highlights SPMPC provides 154 lpcd water supply to all its consumers 24 hours a day. Coverage is 90% of the population within its service area. UFW is 15.0%, just below the top quartile and better than average. However, production is not metered at all and only 90% of connections are effectively metered. Operating ratio is better than average at 0.88. although collection efficiency can be improved further by reducing the utility’s accounts receivable equivalent of 2.2 months which is the third highest. Tariffs are able to cover O&M costs and the utility has no debt. Staff/1000 connections ratio at 9.3 is fifth highest and can still be reduced.

SAN PEDRO MPC Utility Profile


SAN PEDRO MPC Area Profile

SAN PEDRO MPC WATER SUPPLY Population: 2,836 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area

Distribution pipes

477 m3

100%

Nil

None

Nil

no data

9.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

640

Nil

1

Nil

4

Nil

645

Service Indicators

Service Coverage 3



Average Tariff

90.0%

24 hours/day

154 l/c/d

Php7.26/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


15.0%

16.6%

Php5.43/m3

0.88

2.2 months

9.3

Notes:

1 Population refers to the whole barangay served by the utility.


3 The barangay population not served by the water utility draws water from

tube wells.



repaired.

6 'Others' refer to institutional connections which are not billed.

7 'Others' refer to office supplies and administrative expenses.

Data as of 2003



Annual O&M CostsPhp946,078

UFW15%Others6

2%Commercial

Industrial1%

Domestic82%


5%

Domestic95%

Personnel35%

Others7

2%Parts/

Materials10%

Power53%

68

Water Utility SAN PEDRO RESETTLEMENT AREA COOPERATIVE, INC.

Address : Block 5, Lot 3, Barangay United Bayanihan, San Pedro, LagunaTelephone : (63 2) 868 1682, 420 2093Fax : (63 2) 420 2093E-mail : [email protected] : Mr. Jose P. Rafanan, Chairman, Board of Directors

San Pedro Resettlement Area Cooperative, Inc. (SPRACI) was established as a water service association and started operating in November 1974. It was converted into a cooperative in 1976. The utility is responsible for water supply in 9 out of 20 barangays in the municipality of San Pedro. The resettlement area has a total population of 51,212 and a population density of 2,048 persons/km2. The utility draws water from 8 deep wells. Tariff is regulated by NWRB while SPRACI depends on the government for its capital development budget. The utility has a partly developed management information system with a computerized billing system. It follows a development plan for 2003–2007 aimed particularly at rehabilitating distribution lines and increasing production capacity.

Mission Statement “To engage in potable water supply and distribution in 9 barangays of the resettlement area; engage or undertake any or all lawful business undertaking to increase the income and purchasing power of the members”.


Connections : 3,944 Staff : 17 Annual O&M Costs : Php9,772,962 Annual Collections : Php8,371,097 Annual Billings : Php8,684,008 Total Capital Expenditure : Php6,400,000 Average capital expenditure/connection/year: Php324.54 (Over the last 5 years) Source of Investment Funds : 50.0% internally generated reserves, 37.5% government grant, 12.5% no-interest loan

Tariff Structure (Effective 1 October 2003)

Category Regular Members

Associate Members


(First 10 m3 or less) 80.00 100.00

COMMODITY CHARGE


11 - 20 8.20 10.20

21 - 30 8.40 10.40

31 - 40 8.60 10.60

41 - 50 8.80 10.80

51 - 60 9.00 11.00

61 - up 9.20 11.20

Notes:1. All consumers pay on metered use. They are billed monthly and pay through bill collectors or at the water utility office.2. NWRB allows tariffs that give utilities a rate of return of investment of up to 12% maximum.3. There were 124 new connections in 2003. The cost of a new connection is Php3,600, payable prior to connection. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Replacement of main pipes. 2. Rehabilitation of 8 deep wells.

Consumer Service Average monthly consumption is about 16.1 m3 per household of 6 persons. The water bill averages Php174.67 per month per household. Water is available for only 2-3 hours per day to users. Applicants have to wait for about 3 days for a new connection. A connection fee is paid prior to connection. Water quality needs close monitoring as 8 of 48 water samples taken failed the bacteriological test. There were 3,600 consumer complaints recorded and 350 leaks repaired during the year. Because it covers an urban poor community, the utility has public taps where residents can fetch water at cost.

Performance Highlights SPRACI rates low in consumer satisfaction as it provides only 87 lpcd water supply (the fourth lowest) at an average of only 2-3 hours per day, the shortest duration. Coverage is only 46.6% of the population in its service area. UFW is 11.0% but production is not metered 97% of all connections are effectively metered. Financial performance is mixed with operating ratio of 1.13 and accounts receivable equivalent of 1.1 months. Tariffs are not enough to cover O&M costs as well as debt service. There might be a need to review its present tariff rates. Unit production cost per m3 is higher than average tariff, mainly due to high pumping cost. Rehabilitation and expansion of the present system will also require tariff adjustments. Staff/1000 connections ratio is the lowest at 4.3.

SAN PEDRO RACI Utility Profile


SAN PEDRO RACI Area Profile

SAN PEDRO RACI WATER SUPPLY Population: 51,212 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

2,420 m3

100%

Nil

Chlorination

975 m3

25.0 sq km

5.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,915

4

14

Nil

11

Nil

3,944

Service Indicators

Service Coverage 4



Average Tariff

46.6%

2-3 hours/day

87 l/c/d

Php11.04/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


11.0%

11.0%

Php11.06/m3

1.13

1.1 months

4.3

Notes:

1 Population refers to the entire San Pedro Resettlement Area composed

of 9 barangays.

2 8 of 48 water samples taken in 2003 failed the bacteriological tests.

3 This is the total area of responsibility.


service providers, water vendors, ponds and tubewells.




repaired.


9 'Others' include repair and maintenance expenses.

Data as of 2003




UFW11%Others7

1%


2%

Domestic86%


2%

Domestic96%

Others8

2%

Personnel24%

Others9

16%Parts/Materials

5%

Power55%

70

Water Utility SILAY CITY WATER DISTRICT

Address : Public Market Building I, Burgos Street, Silay City, Negros OccidentalTelephone : (63 34) 495,5011Fax : (63 34) 495 0163Head : Mr. Glenn C. Antiporda, General Manager

Silay City Water District (SICIWA) is a government corporation established in 1976. It took over from the LGU-run Silay Waterworks System which dates back to the 1930s. It is responsible for water supply in the city of Silay, which has a total population of 62,435. Its present service area covers 7 of the city’s 15 barangays and has a population density of 5,239 persons/km2. SICIWA draws water from 2 deep wells with 2 other wells kept in reserve. The appointment of the members of the board of directors is subject to government influence. The utility has a master development plan for up to year 2010. SICIWA submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement “The Silay City Water District is committed to contribute to the improvement of the quality of life of the people of Silay City by providing safe, potable, adequate and sustainable water supply. As a public utility office, concessionaires’ satisfaction is our index of success.”


Connections : 3,872 Staff : 36 Annual O&M Costs : Php13,726,036 Annual Collections : Php12,043,606 Annual Billings : Php12,393,510 Total Capital Expenditure : Php4,428,222 Average capital expenditure/connection/year: Php229.32 (Over the last 5 years) Source of Investment Funds : 60% government loan, 40% self-generated funds.

Tariff Structure (Effective 1 June 2004)

Category Residential/Government


CommercialA

CommercialB

CommercialC

Bulk/Wholesale


(First 10 m3 or less) 200.00 400.00 350.00 300.00 250.00 600.00

COMMODITY CHARGE*


11 - 20 22.00 44.00 38.50 33.00 27.50 66.00

21 - 30 26.00 52.00 45.00 39.00 32.50 78.00

31 - 40 32.00 64.00 56.00 48.00 40.00 96.00

41 - up 39.00 78.00 68.25 58.50 48.75 117.00

*Minimum charges are for ½” connections. which increase with size of connection from ¾” to 2”. Commodity charges remain the same regardless of connection size.

Notes:1. All consumers pay on metered use. They are billed monthly and pay through banks or at the water utility office.2. Tariffs are regulated by LWUA.3. There were 186 new connections in 2003. The cost of a new connection is Php2,850, payable prior to connection.4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Computerization system. 2. Iron removal facility.

Consumer Service Average monthly consumption is about 21.3 m3 per connection. (No breakdown of consumption and billing according to type of user was available. Number of house connections is 94% of total connections.) The water bill averages Php266.73 per month per connection. Water is available 24 hours a day to users. Applicants have to wait for about 3 days for a new connection. A connection fee is paid prior to connection. Water quality is good with all 8 samples taken passing the bacteriological tests, although the sampling done seems limited. There were 820 consumer complaints recorded and 181 leaks repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights SICIWA provides 24-hour water supply to its consumers at an average consumption of 117 lpcd. Coverage of 83.6% is fourth highest among the utilities. Both production and consumption are fully metered. The utility needs to reduce its UFW of 29.8% which is almost 3 times the top quartile. It also needs to improve its financial management by reducing both operating ratio of 1.11 and accounts receivable equivalent of 1.3 months. Staff/1000 connections ratio is better than average at 6.7 but can still be improved.

SILAY Utility Profile


SILAY Area Profile

SILAY WATER SUPPLY Population: 26,195 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

3,859 m3/d

100%

Nil

Chlorination

380 m3

5.0 sq km

50.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,652

Nil

173

Nil

37

10

3,872

Service Indicators

Service Coverage 4



Average Tariff

83.6%

24 hours/day

117 l/c/d

Php12.53/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


29.8%

38.2%

Php9.74/m3

1.11

1.3 months

6.7

Notes:





other service providers, dug wells and water vendors


6 About 181 leaks were repaired and 350 meters were either replaced

or repaired; there is a large amount of unbilled use under other

connections.

7 & 8 No breakdown according to users for Annual Water Use and Annual

Water Billings was available.

9 'Others' include debt service and depreciation.

Data as of 2003




UFW30%

Total Use7

70%

Total Billing8

Personnel52%

Others9

26%

Parts/Materials

9%Power13%

72

Water Utility SANTA ROSA (NE) WATER DISTRICT

Address : Municipal Hall, Poblacion, Santa Rosa, Nueva EcijaTelephone : (63 44) 311 1323Fax : (63 44) 311 0226Head : Engr. Joel Felix H. Bernardo, General Manager

Santa Rosa (NE) Water District (SRWD) is a government corporation established in 1982 but started operating only in 1995. It is responsible for water supply in the town of Santa Rosa, which has a total population of 52,080. Its present service area covers 21 of the town’s 33 barangays. SRWD draws water from 2 deep wells. Number of staff and salaries, appointment of top management, and tariffs are under government influence. The utility has a partly developed management information system with a computerized billing system. SRWD submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement “Maghatid ng malinis at dalisay na tubig sa bawat tahanan sa bayan ng Santa Rosa.” (“To deliver clean and potable water to each household in Santa Rosa”)


Connections : 2,305 Staff : 16 Annual O&M Costs : Php6,129,886 Annual Collections : Php9,228,084 Annual Billings : Php9,043,176 Total Capital Expenditure : Php11,000,000 Average capital expenditure/connection/year: Php954.45 (Over the last 5 years) Source of Investment Funds : 100% internally generated reserves

Tariff Structure (Effective 1 May 2003)



CommercialA

CommercialB

CommercialC

Wholesale


(First 10 m3 or less) 138.00 276.00 241.50 207.00 172.50 414.00

COMMODITY CHARGE*


11 - 20 13.80 27.60 24.15 20.70 17.25 41.40

21 - 30 15.00 30.00 26.25 22.50 18.75 45.00

31 - 40 17.00 34.00 29.75 25.50 21.25 51.00

41 - 50 17.00 34.00 29.75 25.50 21.25 51.00

51 - up 17.00 34.00 29.75 25.50 21.25 51.00


Notes:1. All consumers pay on metered use. They are billed monthly and pay at the water utility office.2. Tariffs are regulated by LWUA.3. There were 297 new connections in 2003. The cost of a new connection is Php2,622 payable prior to connection (with 5%

discount) or within 3 months.4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Additional sources of water. 2. Extension of distribution pipelines.

Consumer Service Average monthly consumption is about 22.0 m3 per connection. (No consumption and billings breakdown according to type of user was available. Number of house connections is 91% of total connections.) The water bill averages Php326.94 per month per connection. Water is available 24 hours a day to users. Applicants have to wait for about 1-1/2 days for a new connection. A connection fee is payable within 3 months. Water quality needs closer monitoring as 2 out of 38 water samples taken failed the bacteriological tests. There were 115 consumer complaints recorded and 300 leaks repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights SRWD provides 24-hour water supply to 85.7% of the population in its service area at an average consumption of 121 lcpd. UFW is second lowest at 9.2%. Both production and consumption are fully metered with consumption meters replaced every 5 years. The utility has the second best operating ratio at 0.68 and the lowest accounts receivable equivalent at 0.3 month. Tariffs are able to cover O&M as well as expansion costs. Staff/1000 connections ratio is a respectable 6.9, which is lower than the average.

SANTA ROSA Utility Profile


SANTA ROSA Area Profile

SANTA ROSA WATER SUPPLY Population: 14,729 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

1,835 m3/d

100%

Nil

Chlorination

200 m3

n.d.

28.8 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

2,103

Nil

188

2

12

Nil

2,305

Service Indicators

Service Coverage 4



Average Tariff

85.7%

24 hours/day

121 l/c/d

Php14.86/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


9.2%

9.2%

Php9.15/m3

0.68

0.3 month

6.9

Notes:


2 2 out of 38 water samples taken in 2003 failed the bacteriological tests.

3 Total area of responsibility is 215.2 sq. km. Present service covers 21 of

33 barangays.

4 The population not served by the water district draws water from tube

and dug wells.



repaired.

7 No breakdown according to users for Annual Water Use and Annual Water

Billings was available.

8 ‘Others’ include depreciation and other O&M costs.

Data as of 2003




UFW9%

Total Use7

91%

Total Billing7

Personnel30%

Others8

52%

Parts/Materials

1%

Power17%

74

Water Utility TAGBILARAN CITY WATERWORKS SYSTEM

Address : Cogon District (Upper/East), Tagbilaran City, BoholTelephone : (63 38) 235 4321Fax : (63 38) 235 3478E-mail : noneHead : Engr. Domingo P. Pasa, Engineer IV, Officer-in-Charge

Tagbilaran City Waterworks System (TCWS) started in 1962 as a barangay waterworks system run by the local government. It became an autonomous operating unit under the Office of the Mayor in 1988. It is responsible for water supply in 10 out of 15 barangays of the city of Tagbilaran. A private utility serves the other 5 barangays. Its present service area has a population of 51,954 with a population density of 2,032 persons/km2. The utility draws water from groundwater sources. Tariff is set following the City Government Ordinance creating the office and it is regulated by the NWRB. Number and appointment of staff and top management as well as staff salaries, tariffs and budgets are all under local government influence. TCWS has a partly developed management information system.

Mission Statement “To identify, tap, and develop water resources to supply the city barangays; to sustain the system’s operations and enhance its revenue collection; and to supervise implementation of basic policies in waterworks development.”


Connections : 3,476 Staff : 37 Annual O&M Costs : Php5,863,527 Annual Collections : Php7,304,917 (Includes long due accounts from previous years.) Annual Billings : Php5,978,756 Total Capital Expenditure : Php10,219,991 Average capital expenditure/connection/year: Php588.03 (Over the last 5 years) Source of Investment Funds : 100% government grant.

Tariff Structure (Effective 1 November 1999*)

Category Residential Commercial & Industrial

MINIMUM CHARGE (Php) No Minimum ChargePhp20.00/m3

For all consumption blocks(First 10 m3 or less) 56.00

COMMODITY CHARGE


11 - 20 6.20 20.00

21 - 30 7.00 20.00

31 - 40 8.00 20.00

41 - 50 9.00 20.00

51 - 60 10.00 20.00

61 - 70 12.00 20.00

71 - 100 14.00 20.00

101 - up 20.00 20.00

*There is a pending proposal to increase tariffs by 10% to 50%.

Notes:1. All consumers pay on metered use. They are billed monthly and pay through bill collectors.2. Tariffs are set following policies laid under City Ordinance No. 88-145 creating the Tagbilaran City Waterworks System but

regulated by NWRB.3. There were 193 new connections in 2003. The cost of a new connection is Php470 payable upon application. Labor and

materials costs are borne by the user. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Financial support. 2. Technical seminars on operation and maintenance.

Consumer Service Average monthly consumption is about 20.8 m3 per household of 6 persons. The water bill averages Php129.94 per month per household. Water is available 20 hours a day to most users. Applicants have to wait for about 2 months for a new connection. The connection fee is paid prior to connection. Water quality needs close monitoring with 55 out of 123 water samples taken failing the bacteriological tests. There were only 15 complaints recorded while 189 leaks were repaired during the year. The utility has no specific policy for providing water for the poor as all users are treated the same.

Performance Highlights TCWS provides water at 114 lpcd to its consumers for an average of only 20 hours per day. Coverage is the third lowest with only 39.6% of the population in its area served. Billings barely cover O&M cost with an operating ratio of 0.98 which is reflective of its low average tariff (Php6.66/m3). It is fully dependent on city government grant for capital development expenses. Collections in 2003 included long past due accounts. UFW is second to the highest at 58.1% and needs to be reduced. Both production and consumption are almost fully metered except for 3 connections. Staff/1000 connections ratio is second to the highest at 10.6, which also needs to be reduced.

TAGBILARAN Utility Profile


TAGBILARAN Area Profile

TAGBILARAN WATER SUPPLY Population: 51,954 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

5,874 m3/d

100%

Nil

Chlorination

1,800 m3

25.6 sq km

54.9 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,428

Nil

26

Nil

22

Nil

3,476

Service Indicators

Service Coverage 4



Average Tariff

39.6%

20 hours/day

114 l/c/d

Php6.66/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


58.1%

58.1%

Php2.73/m3

0.98

no data

10.6

Notes:


2 55 of 123 water samples taken in 2003 failed the bacteriological tests.

3 This is the total area of responsibility.

4 Includes 8 public taps in public markets and government offices.

5 Another service provider serves 5 other city barangays.



About 189 leaks were repaired and 3 meters were either replaced or

repaired.


9 'Others' include other O&M and miscellaneous expenses.

Data as of 2003




UFW58.0%

Others7

0.5%Commercial

Industrial1.6%

Domestic39.9%


9%

Domestic89%

Others8

2%

Personnel31%

Others9

65%

Parts/Materials

1%

Power3%

76

Water Utility TANDAG WATER DISTRICT

Address : Ang’s Building, National Highway, Mabua, Tandag, Surigao del SurTelephone : (63 86) 211 3258; 211 4600Fax : (63 86) 211 3258Head : Engr. Ruben C. Elpa, General Manager

Tandag Water District (TWD) is a government corporation established in 1986. It is responsible for water supply in the town of Tandag, which has a total population of 51,008. Its present service area covers only 9 of the town’s 21 barangays and has a population density of 1,154 persons/km2. TWD draws groundwater from an infiltration gallery. Appointment of top management and tariffs are under government influence. The utility has a well developed management information system. Billing is computerized. TWD submits an annual report and monthly data sheets containing financial, consumer and operational data to the LWUA.

Mission Statement “TWD stands to deliver safe, potable, affordable and sustainable water supply and to protect and develop our watersheds and the environment for the preservation of Tandag’s ecological balance.”


Connections : 4,120 Staff : 19 Annual O&M Costs : Php12,497,921 Annual Collections : Php14,628,432 Annual Billings : Php13,776,795 Total Capital Expenditure : Php19,046,405 Average capital expenditure/connection/year: Php924.58 (Over the last 5 years) Source of Investment Funds : 100% internally generated reserves




Semi-Commercial

A

Semi-Commercial

B

Bulk/Wholesale


(First 10 m3 or less) 144.00 288.00 252.00 216.00 432.00

COMMODITY CHARGE


11 - 20 17.30 34.60 30.25 25.95 51.90

21 - 30 20.40 40.80 35.70 30.60 61.20

31 - 40 23.75 47.50 41.55 35.60 71.25

41 - up 27.35 54.70 47.85 41.00 82.05


Notes:1. All consumers pay on metered use. They are billed monthly and pay through banks or at the water utility office.2. Tariffs are regulated by LWUA.3. There were 274 new connections in 2003. The cost of a new connection is Php2,500, payable within 12 months.4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Additional water source. 2. Expansion of distribution lines, putting up reservoir and filtration plant.

Consumer Service Average monthly consumption is about 13.0 m3 per household of 7 persons. The water bill averages Php219.76 per month per household. Water is available 22 hours a day to most users. Applicants have to wait for about 3 days for a new connection. The connection fee is payable within 12 months. Water quality has to be monitored more closely as 3 out of 72 water samples taken failed the bacteriological tests. There were 1,320 consumer complaints recorded and 1,080 leaks repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights TWD is quite low in customer satisfaction with the lowest consumption of 61 lpcd, average water availability of 22 hours per day and coverage of only 76.7% of the population in its service area. While production and consumption are fully metered, UFW is fifth highest at 31.3%. Operating ratio is 0.91 and accounts receivable equivalent is 1.0 month. While average tariff is the third highest at Php20.43/m3, it enables the utility to cover O&M costs as well as debt service. The low consumption is common among utilities with high average tariff and availability of alternate sources like dug or tube wells. Management of human resources is efficient with staff/1000 connections ratio at 4.6, the second lowest.

TANDAG Utility Profile


TANDAG Area Profile

TANDAG WATER SUPPLY Population: 32,4411



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

2,708 m3/d

Nil

100%

Chlorination

200 m3

28.1 sq km

28.8 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,454

10

625

Nil

31

Nil

4,120

Service Indicators

Service Coverage 4



Average Tariff

76.7%

22 hours/day

61 l/c/d

Php20.43/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


31.3%

31.8%

Php12.64/m3

0.91

1.0 month

4.6

Notes:


2 3 out of 72 water samples taken in 2003 failed the bacteriological

tests.



other service providers, dug and tube wells and ponds.

5 About 90% of consumers have 24-hour water supply; 1,320 consumer


6 About 1,080 leaks were repaired and 200 meters were either replaced

or repaired.

7 & 8 ‘Others’ refer to institutional connections and unbilled use.

9 ‘Others’ include interest payments and depreciation.

Data as of 2003




UFW31%

Others7

5%


9%

Domestic55%


20% Domestic66%

Others8

14%

Personnel20%

Others9

22%

Parts/Materials

42%Power16%

78

Water Utility TIBAL-OG RURAL WATERWORKS AND SANITATION ASSOCIATION

Address : Municipal Compound, Feeder Road#3, Sto. Tomas, Davao del NorteTelephone : (63 84) 829 0171Fax : (63 84) 829 0171E-mail : [email protected] : Engr. Rey Sagot, Chairman, Board of Directors

Tibal-og Rural Waterworks and Sanitation Association (RUWASA) is a community-based water utility established in 1985. It is responsible for water supply in Barangay Tibal-og, which has a total population of 18,900 and a population density of 1,181 persons/km2. The barangay is one of 19 in the municipality of Sto. Tomas. RUWASA draws water from deep wells. Tariff setting is regulated by NWRB. The utility follows a development plan for 2002-2007. It has a partly developed management information system and a computerized billing system. RUWASA submits to NWRB an annual report containing financial, customer and operational data.

Mission Statement “RUWASA is committed to provide its consumers abundant, safe drinking water in a manner that passes through state-of-the-art treatment facilities, believing that human resources are its most valuable assets in sustaining its growth, and financial soundness that contributes to the social and economic strength in an environment-friendly municipality.”



Tariff Structure (Effective 24 August 1998)

Category Residential Commercial Semi-Commercial A

Semi-Commercial B

Semi-Commercial C


(First 10 m3 or less) 60.00 120.00 105.00 90.00 75.00

COMMODITY CHARGE


11 - 15 6.60 13.20 11.55 9.90 8.25

16 - 20 7.20 14.40 12.60 10.80 9.00

21 - 25 7.80 15.60 13.65 11.70 9.75

26 - 30 8.40 16.80 14.70 12.60 10.50

31 - up 9.00 18.00 15.75 13.50 11.25


Notes:1. All consumers pay on metered use. They are billed monthly and pay at the water utility office.2. NWRB allows tariffs that give utilities a rate of return of investment of up to 12% maximum.3. There were 145 new connections in 2003 with 250 pending applications at the end of the year. The cost of a new connection is

Php1,400, payable prior to connection. 4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Non-revenue water reduction. 2. Additional pumping station.

Consumer Service Average monthly consumption is about 19.3 m3 per household of 6 persons. The water bill averages Php137.97 per month per household. Water is available 24 hours a day to users. Applicants have to wait for about a week for a new connection. The connection fee is paid prior to connection. Water quality needs closer monitoring as 12 out of 72 water samples taken failed the bacteriological tests. There were 62 consumer complaints recorded while 144 leaks were repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights Tibal-og RUWASA provides 24-hour water supply to its consumers at 106 lpcd. Coverage is 83.2% of the service area population. UFW of 11.5% is the fifth lowest. Production is fully metered; consumer use is 98% metered. Operating ratio at 0.82 is just below the top quartile, although the utility can improve its collection by reducing the accounts receivable equivalent of 2.1 months. The utility is not dependent on grants for capital investment and is funding expansion through internally generated reserves. Tariffs are able to cover O&M as well as expansion costs. Staff/1000 connections ratio is 5.4, the fourth lowest among the utilities.

TIBAL-OG Utility Profile


TIBAL-OG Area Profile

TIBAL-OG WATER SUPPLY Population: 18,900 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

2,356 m3/d

100%

Nil

Chlorination

132 m3

16.0 sq km

32.1 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

2,620

Nil

513

Nil

Nil

Nil

3,133

Service Indicators

Service Coverage 4



Average Tariff

83.2%

24 hours/day

106 l/c/d

Php8.46/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


11.5%

12.2%

Php6.12/m3

0.82

2.1 months

5.4

Notes: 1 Population refers to the entire barangay of Tibal-og served by the utility.2 12 of 72 water samples taken in 2003 failed the bacteriological tests.3 Total area of responsibility is 35.0 sq. km.4 The population not served by the water utility draws water from tube and

dug wells.5 About 62 consumer complaints were registered in 2003.6 About 144 leaks were repaired and 268 meters were either replaced or

repaired.7 ‘Others’ include training, supplies, transportation, communication and

miscellaneous expenses.

Data as of 2003




UFW11%


18%

Domestic71%


33%

Domestic67%

Personnel58%

Others7

14%Parts/

Materials8%

Power20%

80

Water Utility VICTORIAS WATER DISTRICT

Address : Quirino Street, Victorias City, Negros OccidentalTelephone : (63 34) 399 3554Fax : (63 34) 399 3554Head : Engr. Paulino M. Cruz, General Manager

Victorias Water District (VWD) is a government corporation established in 1978. It took over from an LGU-run waterworks system set up in 1935. It is responsible for water supply in the city of Victorias, which has a total population of 45,340. Its present service area covers 12 of the city’s 22 barangays and has a population density of 8,447 persons/km2. VWD draws water from 3 deep wells. The number, salaries, and appointment of staff, and tariffs are subject to government influence. The utility has a partly developed management information system with a computerized billing system. VWD submits to LWUA an annual report and monthly data sheets containing financial, consumer and operational data.

Mission Statement “We commit ourselves to deliver quality and sufficient water service to our consumers who have entrusted their need with us. We shall nurture a team of dedicated, well-trained and service-oriented individuals who will adhere to the highest standards of competence and work ethics. We shall continue to improve our service, facilities and equipment to satisfy our role as the prime provider of this basic need in life in abundance and in the most affordable way.”






Bulk Sales


(First 10 m3 or less) 108.00 175.00 300.00

COMMODITY CHARGE


11 - 20 11.60 23.20 11.60

21 - 30 13.75 27.50 13.75

31 - 40 16.70 33.40 16.70

41 - up 19.85 39.70 19.85

Notes:1. All consumers pay on metered use. They are billed monthly and pay through bill collectors or at the water utility office.2. Tariffs are regulated by LWUA.3. There were 173 new connections in 2003. The cost of a new connection is Php2,050, payable prior to connection.4. There is no sewerage charge on the water bill.

Priority Need of Utility 1. Elevated storage tank. 2. Full computerization.

Consumer Service Average monthly consumption is about 23.9 m3 per household of 6 persons. The water bill averages Php311.13 per month per household. Water is available 20 hours a day to most users. Applicants have to wait for about 2 days for a new connection. The connection fee is paid prior to connection. Water quality is good with all 75 samples taken passing the bacteriological tests. There were 60 consumer complaints recorded and 154 leaks repaired during the year. The utility has no specific policy for providing water for the poor.

Performance Highlights VWD provides water at 131 lpcd to its consumers at an average of 20 hours a day. Coverage of 83.7% of the population in its service area is third highest among the utilities. UFW of 22.8% is just below the average and can be reduced further. Both production and consumer use are fully metered. Operating ratio is 0.83 and accounts receivable equivalent is 1.5 months. Tariffs are able to cover O&M as well as expansion costs. While staff/1000 connections ratio is not so high at 7.8, this can still be reduced.

VICTORIAS Utility Profile


VICTORIAS Area Profile

VICTORIAS WATER SUPPLY Population: 25,340 1



Groundwater

Surface Water

Treatment Type 2

Storage

Service Area 3

Distribution pipes

3,981 m3/d

100%

Nil

Chlorination

380 m3

3.0 sq km

25.0 km

Service Connections


Public Tap

Commercial

Industrial

Institutional

Others

TOTAL

3,536

Nil

111

1

47

Nil

3,695

Service Indicators

Service Coverage 4



Average Tariff

83.7%

20 hours/day

131 l/c/d

Php13.81/m3



Non-Revenue Water


Operating Ratio

Accounts Receivable


22.8%

23.8%

Php8.85/m3

0.83

1.5 months

7.8

Notes:1 Population refers to the present area served by the utility.2 All 75 water samples taken in 2003 passed the bacteriological tests.3 Total area of responsibility is 8.0 sq. km.4 The population not served by the water district

draws water from tube wells.5 Only 50% of consumers have 24-hour water supply; about

60 consumer complaints were registered in 2003.6 About 154 leaks were repaired and 128 meters

were either replaced or repaired.7 & 8 'Others' refer to institutional connections.9 'Others' include other O&M and depreciation costs.

Data as of 2003




UFW23%

Others7

5%Commercial

Industrial2%

Domestic70%


5%

Domestic85%

Others8

10%

Personnel32% Others9

44%

Parts/Materials

5%Power19%

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