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LWUA: Thirty years of service to a once-thirsty nation
 The
Local Water Utilities Administration (LWUA) for the last thirty years
has continuously carried on its mandated task of promoting, developing
and financing potable water supply systems in population centers in
the Philippine countryside. As lead agency of the government for water
supply development in the provinces, LWUA provides financial, technical
and institutional development assistance to water districts that are
in effect the operators and owners of local water systems in the various
cities and municipalities all over the country.
The agency has to
date established some 584 water districts covering about 691 cities
and towns outside Metro Manila. It has completed a total of 1,431 water
supply projects while extending P17 billion in loans to the districts
of which P11 million has been availed to the benefit of some 12 million
Filipinos enjoying improved water supply in their respective localities.
The 30-year history
of service of LWUA to the people can be summed up by the significant
milestones and highlights of its operation.
(In 1972, then Ferdinand E. Marcos placed the whole country under martial
law with the promise of a better society and life for the Filipino people.)
Presidential Decree No. 198 was signed into law on May 25, 1973. The
decree, otherwise known as the Provincial Water Utilities Act of 1973,
authorized the formation, on local option basis, of autonomous water
districts to develop the local water supply systems and the establishment
of a national-level agency to cater to the needs of these water districts.
The Local Water Utilities Administration (LWUA) was formally organized
on September 18 the same year with Col. Carlos C. Leano, Jr. as its
first general manager and some officers and staff of the Infrastructure
Operations Center (IOC) in Fort Bonifacio as nucleus.
In 1974, LWUA transferred office to the Philippine Communications Center
(Philcomcen) building along Ortigas Avenue, Pasig.
The first 12 water districts (WDs) were duly formed with the issuance
of their respective Conditional Certificates of Conformance (CCCs).
These are: Cagayan de Oro City, Bacolod City, Marawi City, San Pablo
City, Camarines Norte, Davao City, Zamboanga City, Butuan City, Batangas
City, Misamis Occidental, Metro Cebu and Calamba (Laguna).
LWUA secured its first foreign loan from the United States Agency for
International Development (USAID) in the amount of $15 million.
The Danish International Development Agency (DANIDA) granted LWUA an
interest-free $2.5 million loan for the first DANIDA Package involving
two WDs.
The president issued PD 768 amending PD 198 in August 15, 1975 further
strengthening the LWUA-Water District concept for the development of
provincial water supply.
The Asian Development Bank (ADB) granted LWUA a $16.8 million loan for
the Five Cities Water Supply package which included the following WDs:
Metro Cebu, Misamis Occidental, Butuan City, Zamboanga City and Camarines
Norte.
The period 1976-77 saw the United States Agency for International Development
(USAID) grant LWUA an additional $20 million loan for the Agency's Interim
Demonstration Program (IDP) involving the conduct of feasibility studies,
design and construction projects for 40 water districts.
LWUA transferred office to the 7th and 8th floors of the National Irrigation
Administration (NIA) building along EDSA, Quezon City.
The International Bank for Reconstruction and Development (IBRD), better
known as the World Bank granted LWUA an $18.8 million loan for the First
Provincial Cities project involving six WDs: Baguio City, Lucena-Pagbilao-Tayabas,
Lipa City, La Union, Tarlac and Cabanatuan City.
The two-year period 1978-79 saw the president suspend LWUA's operation
on August 28, 1978 on account of water rates controversy in Misamis
Occidental. The suspension is lifted a month later on September 28.
The most modern water system was completed for Batangas City WD. Also
finished were projects for San Pablo City and Marawi City WDs.
DANIDA granted LWUA an additional $4.5 million loan on the Six Cities/Towns
project involving the following water districts: Alaminos (Pangasinan),
Puerto Princesa City, Gingoog City, Malaybalay (Bukidnon), Bulan (Sorsogon)
and Hagonoy (Bulacan).
The World Bank granted an additional $36 million loan to LWUA for the
IBRD Third Loan Package involving 28 water districts.
In compliance with LOI 744, LWUA through the then Public Information
Office, forerunner of the Public Affairs Office (PAO), launched Operasyon
Impormasyon (OPIM) and Barangayan for grassroots public information
and education.
In 1980, LWUA created a Rural Water Development Task Force and a Special
Projects Group to assist the newly-created Rural Waterworks Development
Corporation (RWDC) in covering the rural sector under the Integrated
Water Supply Development Program.
LWUA transferred to its own five-storey office building in Balara, Quezon
City.
From 1981-82, the events that took place had seen Martial law finally
lifted all over the country. It was also the start of the United Nations-declared
International Drinking Water Supply and Sanitation Decade (IDWSSD).
LWUA secured an additional $46 million loan from ADB bringing to $163.1
million the total foreign loans secured by LWUA in eight years.
LWUA co-hosted with MWSS and the Philippine Waterworks Association (PWWA)
the Third Asia-Pacific Regional Water Supply Conference and Exhibition
held November 15-19, 1981 at the PICC.
Nineteen major water supply improvement projects were completed by LWUA,
among which are those for Malaybalay, Puerto Princesa City, Iriga City,
San Jose, San Carlos City (Pangasinan), Kalibo (Aklan) and Camarines
Norte water districts.
From 1983-85, LWUA's operations slowed down due to socioeconomic and
political crisis aggravated by the Aquino assassination on August 21,
1983.
Nevertheless, LWUA completed 31 previously started construction projects
including those for La Union Metro (Schedule II), Hagonoy, Bocaue, Mabalacat,
LUPATA, Santiago, Camarines Norte, Roxas City, Silang, Cotabato City
and North Cotabato Water District.
LWUA continued with the suspension or slowdown in water district formation
and implementation of new engineering projects due to reduced GOP equity
releases and the general economic crisis.
LWUA started to implement the policy of taking over the policy-making
and/or management functions in defaulting water districts with the full
takeover of Tarlac and Moncada water districts and placement of interim
administrators in Villasis, Puerto Princesa City, Sorsogon and Ligao-Oas
water districts.
LWUA appointed representatives to sit as sixth member in the board of
directors of 47 borrower water districts.
1986 to 87 was a historic period for the whole country particularly
when in February 1986, following an allegedly fraudulent snap presidential
election, a sector of the Armed Forces rose in a rebellion supported
by a world-renowned people power uprising and ousted the Marcos government.
Corazon Aquino, widow of the martyred Sen. Aquino is sworn in as new
President.)
As an offshoot of the change in the national leadership, a changing
of the guard also occurred in LWUA with Engr.Porthos P. Alma Jose replacing
Col. Leano as LWUA administrator. A new board was also appointed headed
by then Finance Secretary Vicente R. Jayme.
LWUA adopted a new development philosophy - "Service with Equity"
accentuating on social commitment and responsibility rather than financial
viability.
LWUA started the grant of "soft loans" to small water districts.
President Aquino issued Executive Order No. 124 providing for the abolition
of the Rural Waterworks Development Corporation (RWDC) and the transfer
of its functions and resources to LWUA. In September 1987 the personnel
of the defunct RWDC transferred to and are absorbed by LWUA.
In 1988, internal unrest hit LWUA as a group of LWUA officials and employees
calling themselves Alliance of Concerned LWUAns (ACL) staged a series
of mass actions for a change in leadership.
Dr. Rafael Apostol was designated as LWUA officer-in-charge. His term
as OIC lasted a few months and the OICship rotated among the then four
deputy administrators, namely: Atty. Armando C. Lizaso, Engr. Vitaliano
dela Vega, Daniel I. Landingin and Josefina N. Ruiz.
In January 1989 LWUA entered into a tripartite agreement with the Philippine
Association of Water Districts (PAWD) and the Department of Environment
and Natural Resources (DENR) for a coordinated program in the protection
and maintenance of the country's watershed areas.
In April, Engr. Ricardo T. Quebral, a former deputy administrator in
MWSS was designated as new LWUA regular administrator by the LWUA board.
World Bank-commissioned consultant, Carl Bro, submitted a report recommending
overhaul of LWUA and reduction of its function to a mere financing institution.
LWUA debunked the Carl Bro findings and recommendations.
A killer earthquake in July 1990 struck areas in Central and Northern
Luzon damaging, among others, water district facilities. LWUA became
involved in reconstruction of water facilities in 44 water districts,
mostly in Pangasinan.
Record 79 new water districts were duly formed and filed during the
year.
Record 81 water supply projects were completed in the estimated combined
cost of P312 million including forex components.
In 1991, LWUA started to implement general reorganization and the area
management concept.
Record high P1.4 Billion in additional loans was granted to water districts
with Metro Cebu accounting P1.065 Billion.
Total loans granted to water districts reached plus P5-Billion mark.
LWUA 's water system rehab/reconstruction task widened as Mt. Pinatubo
eruption in June followed the killer earthquake of the preceding year.
Some fifty WDs were affected by the twin calamities.
Atty. Armando C. Lizaso was designated in July as new LWUA administrator.
Total capital stocks issued amounted to P2.065 Billion. LWUA requested
congress to enact law increasing LWUA's authorized capital stock from
P2.5 Billion to P10 Billion to assure adequate and continuous financing
of water projects.
Fidel V. Ramos was elected president in 1992 and during the period,
LWUA's authorized capital stock of P2.5 Billion was already fully subscribed.
House Bill No. 1290 and Senate Bill No. 829 authored respectively by
Rep. Erico Aumentado of Bohol and Sen. Alberto Romulo were filed seeking
to increase LWUA's capitalization to P10 Billion.
Atty. Lizaso retired from government service and Engr. Antonio R. de
Vera was designated acting administrator and later, new regular LWUA
administrator.
LWUA revived the dormant 1989 Tripartite Agreement on Watershed Management
Protection (LWUA-PAWD-DENR) with the formal launching of a nationwide
watershed development project called "Project Evergreen."
A total of 61 water supply construction projects, including 14 water
system rehab projects (Earthquake/Pinatubo) were completed at the cost
of P406.5 million.
Worsening power crisis started to affect WD operations thus, LWUA moved
to provide emergency power units (gensets) to water districts.
In 1993, LWUA identified five pilot areas for watershed management namely:
Baguio City, San Pablo City, Roxas City, Zamboanga City and Davao City.
FVR certified as urgent administration bill HB No. 1290 and SB 829 increasing
LWUA's capitalization to P10 Billion.
Sixty-four constructions were completed in 1994 five of which were major
one located in Ilocos Norte, Dagupan City and Baguio City. LWUA's financial
operation improved considerably with a 73% reduction ratio improved
to 64% in the previous year.
An in-house UNDP-assisted Groundwater Study Project was completed establishing
a reliable countryside groundwater data base.
The agency registered a collection ratio of 79.5% in 1995 with 4 major
projects completed at a total cost of P686 million while 81 small projects
nationwide at a cost of P472 million were also completed.
Collection continued to improve in 1996 posting a ratio of 80%. A total
of 73 projects of a combined cost of P440 million were completed.
$70 million fresh loan from ADB and AUSAID were secured.
LWUA's new organizational structure was put in place in place with the
deployment of seven field offices even as computerization of the agency's
information system got started.
Four watershed management projects were completed in Zamboanga City,
Ilocos Norte, San Ildefonso (Bulacan) and La Trinidad (Benguet) at a
cost of P121.3 million. This is valued reforestation if 515 hectares
of watershed areas.
1997 - Of the 611 water districts formed, 420 have been provided LWUA
loans. There 420 water districts covers 474 cities and towns nationwide.
A total of 1,177 level III projects have been completed from 1973-97.
Collection improved further at 85% ratio. For the last six years, LWUA
has been current in servicing foreign debts through the national government.
Economic crisis gripped to Asian region with Japan, Thailand and several
other countries experiencing currency devaluation. The Philippines was
not as badly shaken by the wide-ranging economic slowdown in the region.
In 1998, the country celebrated its 100 years of independence on June
12, 1998 even as a new and popular president was elected in the May
elections.
The same year, LWUA celebrated its Silver Anniversary with new administrator
Prudencio M. Reyes, Jr. and President Joseph E. Estrada as the honored
guest.
In line with the pro-poor stance of the national leadership, the agency
refocused its thrust towards development of potable water systems in
poor and marginalized municipalities. P986 million in loans was for
water projects to some 44 water districts nationwide half of which belonged
to 4th and 5th class municipalities.
Fifty-four locally funded projects with a combined cost of P151.5 million
were completed in 1999.
LWUA was entrusted a total of P300 million in line with the "Lingap
Para sa Mahihirap" Fund for the development of Rural Waterworks
Systems.
The groundwater data base had updated a total of 48,413 well records
nationwide even as the global anticipation for the "millenium bug"
was at its peak.
LWUA's collection ratio reached 87% with P726 million collected. Total
loans exposure to water districts figured at P8.5 billion benefiting
452 WDs.
In 2000, economic slowdown was experienced due to socio-political and
internal security problems plaguing the country as lawlessness in some
parts of Mindanao heightened.
Completed projects registered a total of 34 of which 2 were major water
supply systems. Total loans granted was P16 million while availment
was P9 million.
The year 2001 started on a high note with the walkout of senators on
the impeachment proceedings against President Joseph Estrada paving
the way for the EDSA People Power 2 and the eventual ouster of the president.
Gloria Macapagal-Arroyo assumed the presidency in January and many changes
in the government bureaucracy occurred.
Lorenzo H. Jamora, erstwhile chairman of the board of Metro Iloilo WD
was appointed new LWUA administrator on August 20 and immediately calmed
the "turbulence" inside the agency.
A total of 36 water supply projects were completed amounting to P362.5
million in local funds.
LWUA earned a commendation from NEDA in 2002 for the significant increase
in the former's utilization of Official Development Assistance (ODA)
funds. It granted P606 million new loans to 66 water districts nationwide.
Despite economic difficulties, the agency collected P933 million from
the districts for an efficiency of 84%. Construction projects finished
figured at 52 of which 5 were foreign-assisted while majority were locally-funded.
On September 18 this year, LWUA marks its thirty years of potable water
service to the nation with the resolve to continue with its avowed role
as a catalyst in the overall progress and development of the urban communities
in the countryside.
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