The Pichay Factor in Philippine water supply development

The Chairman's Anniversary Message

I accepted my appointment to LWUA as its Chairman when the water agency was only 35 years old. Now it is celebrating its 36th.

It might be that I took that appointment so very seriously that in the one year that I have been with the national water agency, not a few friends and colleagues - even media - have taken to calling me "The Waterboy of the Philippines."

Just as I have began to love the gargantuan task that LWUA and I have at hand, I have also began to live by that monicker.

It is both humbling and daunting, but is truly reflective of the role that we at LWUA must continue to play.

It brings to mind the image of the aguador of yesteryears, the original town waterboy in whose shoulders literally hung the burden of the community's water supply in the form of kerocans and big water pails. Humbling because the "job" was seen as below the more complicated work of the town carpenter , for instance. Daunting, because the task's importance and difficulty was always understated, taken for granted.

But whether humbling or daunting, the aguador's task was service almost in its pure form.

The aguador kept his community going, assured of precious water in their homes. And his service never enriched the aguador.

And that is what we LWUAns should take to heart, specially now that we are on our 36th year: Service comes first before profit. Otherwise, what are we public servants for?

Read feature on LWUA and Chairman Pichay in CONSUMER AND BUSINESS FORUM MAGAZINE
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Since the Honorable Prospero "Butch" Pichay, Jr. was appointed to LWUA as Chairman of the Board of Trustees in September 2008, he has shown and proven himself a key growth factor - the Pichay factor - both for the agency and the country's provincial water supply development.

From Day One, Chairman Pichay made it clear he wanted a LWUA organization that could and would do its job, that service to the Filipino was a prime directive, that the agency would have to drive above the perceived slower pace of Philippine bureaucracy.

Since then, the Agency has effected significant changes, innovations and new policies conceptualized and implemented mostly through the Chairman's own initiatives.

Destination? A LWUA more effective and responsive in carrying out its mandate and in actively supporting President Gloria Macapagal Arroyo's priority thrust of providing water by 2010 to every barangay especially the waterless communities, which is an integral part of her 10-point legacy program.


PGMA is assisted by Chairman Pichay as she lowers the time capsule for the P57-million water supply improvement project in Meycauayan City, Bulacan


Chaiman Pichay takes a break with children in Porac as they await PGMA's arrival for the groundbreaking of the town's P10-M water supply improvement project


PGMA, Chairman Pichay and Senator Zubiri, at the turn-over
of a P7-million cheque for the improvement of the water supply system of Manolo Fortich in Bukidnon


Poring over water supply project plans with LWUA engineers and advisors


Chairman Pichay's attention is caught by admiring kids in Meycauyan City, Bulacan


Reviewing project-related matters in the field


Rethinking ways with which LWUA can serve more?


Chairman Pichay enjoys the company of some water consumers at Lal-lo, Cagayan


Unknown to many, Chairman Pichay has a photographer's technical and artistic instincts

These innovations are based on principles espoused by the Chairman himself:

  • LWUA can also serve as conduit of low-interest or interest-free loan and outright grant funds coming from the national government and its various instrumentalities
  • All water districts are viable if given a proper mix of funding assistance and the appropriate infrastructure development
  • LWUA and the water districts should also invest in environmental preservation, especially in the protection and maintenance of vital life-supporting watersheds

Since Chairman Pichay was appointed to the policy-making body of LWUA, the agency has accomplished the following in terms of infrastructure projects:

  • Undertaken 257 of which 61 have been completed while the remaining 196 are ongoing, to benefit 5.5 million of our provincial population.
  • Of the 61 completed projects, 11 are in waterless municipalities covered by water districts.
  • Thirty-three (33) cities and municipalities were served through the 61 completed projects.
  • During the first six months of 2009, LWUA under Chairman Pichay formed or reactivated 125 water districts, more than tripling in just 6 months the number of water districts added to the national roster since the start of this decade which was only 37.

Under Chairman Pichay's leadership, the LWUA Board of Trustees has drawn up bold and innovative policies designed to accelerate water district formation, ease up the financial burden of water supply project loans on water districts, and keep water service within the affordability of provincial water consumers. At the same time, the Chairman has inspired the re-tooling and revitalization of LWUA itself to be on-par with the accelerated needs of countryside water supply development.

Among the most significant policies deliberated upon and approved by LWUA's policy-making body barely a year after Chairman Pichay was appointed are the:

  • inclusion of loan penalty condonation as a form of financial assistance to distressed water districts, on a case to case basis, contained in Board Resolution No. 164, Series of 2008 dated 29 October 2008
  • reduction of interest rates in LWUA's Loan Window 1, contained in Board Resolution No 38, Series of 2009, dated 10 March 2009 (READ FULL RESOLUTION)
  • interest-free funding from non-LWUA initiated funds extended to water service providers on a 50-50 loan-grant mix, payable 10 to 20 years on a floating basis, contained in Board Resolution No. 19, Series of 2009, dated 17 February 2009 (READ FULL RESOLUTION)
  • shortening the process of water district formation by removing public hearing as a requisite, contained in Board Resolution No. 147, Series of 2009, dated 9 June 2009 (READ FULL RESOLUTION)
  • creation of the Water Technology Research and Development Center which will develop performance and quality standards and provide technical and training assistance to local water utilities, contained in Board Resolution No. 152, Series of 2009, dated 30 June 2009 (READ FULL RESOLUTION)
  • policy on ethical leadership and good governance in response to the President's call for moral renewal in government, contained in Board Resolution No. 124, Series of 2009, dated 26 May 2009 (READ FULL RESOLUTION)

In the one year that Chairman Pichay has been with the national water agency, he worked and succeeded in making LWUA Project Funding an inclusion in the General Appropriations Act (GAA) through the Department of Public Works and Highways (DPWH) and the Department of Health (DOH). A total of P890 million has already been released to LWUA: P490 million from the DPWH and another P400 million from the National Government. An approved P1.5 billion budget per GAA for CY 2009 is pending release from the DOH. Meanwhile, the Chairman is working for other sources of funds that would finance more water supply projects.

Given the Chairman's earnest for sourcing funds and his steadfast determination to provide the country's provincial population with long-term water supply service, LWUA has reactivated the feasibility studies of its bulk water supply projects in San Rafael in Bulacan, Tagbilaran in Bohol, Pangasinan, and in the Cavite-Laguna area.

The Chairman has also guided LWUA towards taking an unprecedented step closer to its role as a financial institution. Recently, the agency obtained a 60 per cent share in a local bank. Renamed the WE Bank (for water and energy), its success will indeed redefine LWUA's role in putting potable water in every meal table in the Philippine countryside.

At the same time, Chairman Pichay initiated a policy change which effectively shortened the necessary steps in water district formation (BOARD RESOLUTION 147) by doing away with the required public hearing during said process in communities without existing water systems.

Operationally, the agency complemented the accelerated formation process by shortening the so-called project cycle through a trimmed-down preparation time of the Program-Of-Work (POW) and drawing up the POW simultaneously with the formation of the water district itself. Project completion has also been restricted to within ten months from the first release of funds. In addition, the Agency has driven closer to maximizing the use of the latest technologies that make transmittal of project information seem like you were just handing it to the person on the adjoining desk, very convenient for an organization that functions from the north of Luzon to the south of Mindanao.

Organizationally, the people of LWUA -- the agency's prime resource -- have welcomed and embraced the Pichay factor which indisputably point them closer the the agency's goal of providing safe, potable and reliable water supply to the Philippine countryside. Chairman Pichay's battlecry says it all: "Malinis at murang tubig sa bawat tahanan!"

September 2009
© 2009 Local Water Utilities Administration, MWSS-LWUA Complex, Katipunan Road, Balara, Quezon City, Philippines
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