THE LWUA REPORT:
SUSTAINING PROVINCIAL WATER SUPPLY DEVELOPMENT, 2004-2010

LWUA's Role in the PGMA Legacy Program for Water Supply

The President Gloria Macapagal Arroyo administration through the MediumTerm Philippine Development Plan has set the goal of providing safe and potable water supply to all barangays in the country between 2004 and 2010 with priority on at least 200 waterless urban barangays in Metro Manila and 200 waterless municipalities in the countryside.

As the lead national government agency for provincial water supply, the Local Water Utilities Administration (LWUA) has therefore been placed in a forefront position in the realization of this goal since 2004.

LWUA's share in the Medium Term Philippine Development Plan includes the completion of 639 water infrastructure projects within a seven-year period starting in 2004 thereby making possible access to safe potable piped water supply to 875,000 additional service connections or a total of more than four million additional Filipinos in the provincial areas by 2010.

On year by year basis, LWUA has henceforth set the target of 115 completed water projects in 2004; 107 completed projects in 2005; 113 completed projects in 2006; 81 completed projects in 2007; 71 completed projects in 2008; 59 completed projects in 2009 and another 93 completed projects in 2010 for a grand total of 639 completed water infrastructure projects.

What Have Been Accomplished Thus Far? (LWUA Corporate Performance 2004-2007)

Three years after, what has LWUA accomplished thus far in terms of water supply coverage, water supply infrastructure, financial assistance, financial efficiency and institutional development of water districts nationwide?

Between 2004 and 2007, LWUA was able to provide water supply coverage to an estimated 2.4 million additional people in its area of jurisdiction thereby raising the total population served from 12.6 million in 2004 to 14.5 million by the end of 2007.

LWUA was able to complete a total of 238 water infrastructure projects with a total project disbursement of P6 Billion. LWUA completed 53 projects in 2004 with a project disbursement of P2.397 Billion; another 53 projects in 2005 with project disbursement of P1.666 Billion; 81 projects in 2006 with a project disbursement of P1.138 Billion; and 51 projects in 2007 with a project disbursement of P765M.

In terms of financial assistance, LWUA was able to provide a total of P3.695 Billion in additional loans to water districts between 2004 and 2007 with a record-high P2.230 Billion loans granted in 2004. Additional loans availment by water districts however far outstripped loan grants during this period reaching a total of P7.150 Billion with a record-high of P2.884 Billion also in 2004.

During the same four-year period, LWUA was able to collect a total of P5.909 Billion in loan principal and interest payments by borrower water districts with a record high of P1.779 Billion collection in 2007. Average collection ratio is 86%. In 2007, LWUA attained the highest collection ratio at 98% which was the result of the recognition of accounts that are difficult to collect.

In terms of institutional development assistance to water districts, LWUA was also able to effect the installation/follow up of the uniform commercial practices system to a total of 170 water districts; conduct a total of 107 training courses for water district officials and employees and review for approval 848 requests for water rates adjustments by water districts.

The Challenge Before Us (LWUA's Plans and Programs for 2008-2010)

For the next four years, LWUA has set the vision of being the leader in building sustainable and self-reliant water districts and other water service providers serving the Filipino people in the countryside with the mission of providing these institutions financial, technical, institutional and regulatory assistance by being a viable, effective and world class organization.

To attain its vision and to carry out its mission, LWUA has set for itself four goals, namely:

(1) expanded service coverage of water service providers;
(2) self-sustaining water service providers;
(3) world-class LWUA organization; and
(4) financially viable LWUA operations.

LWUA's specific objectives for the period include:

(1) The increase in population served with potable water by an estimated 2.5 million people through the development of 223 water supply infrastructure projects in various water districts by year 2010, including 50 waterless communities within the WD coverage.
(2) The initiation of access to sewerage or septage management through pilot, low-capital projects, in around four (4) recipient areas.
(3) The self-sustainability of an estimated 50 less-creditworthy water districts.
(4) The revitalization of LWUA towards being a world-class and financially viable organization.

Between 2008 and 2010, LWUA plans to invest an additional P5.421 Billion towards the completion of an additional 223 water infrastructure projects to serve an additional 490,000 households or an additional 2.5 million people in 223 water districts to include waterless communities covered by water districts.

In specific terms, LWUA plans to complete Level Three water projects in 71 water districts in 2008 that will include 21 projects for water less communities covered by water district; 59 projects in 2009; 54 projects in 2009 and another 93 projects in 2010 that will also include 29 projects for waterless communities covered by water districts to be determined in coordination with other government agencies such as the National Anti-Poverty Commission (NAPC).

By year 2010, the total cumulative population served under the LWUA-water district jurisdiction is estimated to increase to 16.65 million from 12.6 million in 2004.

The Arroyo administration is determined to leave a lasting legacy to the Filipino people in the vital aspect of potable water supply which is an important pre-requisite in the socio-economic development of the nation.

In response, LWUA has set its objectives and directions towards the fulfillment of this lofty goal.

This is now the challenge before us. It is up to us to live up to that challenge.