The Rise of Surigao Metro WD
to LWUA's Most Outstanding Water District in 2006

Becoming the country's overall best managed and most excellent performing water district will never be an easy fate to achieve.

But to the officials and personnel of the Surigao Metropolitan Water District doing the best in their respective jobs has become second nature to them. They attribute this individual and corporate character to the tradition started by the original board of directors and set of officers.

The original SMWD Board of Directors was headed by Engr. Andoni T. Dumlao, now with the Board of the Metropolitan Waterworks & Sewerage System (MWSS) and pioneer General Manager Orestes R. Añonuevo.

History of SMWD. As a water district, the life of SMWD only started when the Sangguniang Panlalawigan passed Resolution No. 47 on September 4, 1987. Three months thereafter LWUA issued it CCC No. 324 to formalize its corporate existence. This was during the term of OIC-Gov. Wencelito T. Andanar, now an undersecretary in the Department of Interior & Local Government.

But Andanar lost in the 1988 elections and the new governor wanted to regain control of the water system. The provincial government filed and won its case before the Surigao City Regional Trial Court in 1990 & took over control of SMWD.

However, the Dumlao Board & GM Añonuevo elevated the case to the Supreme Court. Añonuevo himself, fondly called "GM Otic" by everyone in Surigao, made the rounds of water districts in Mindanao to solicit funds to support their quest for justice in Manila. Big and small water districts supported them all the way. And on October 1991 the Supreme Court reversed the decision of the Regional Trial Court, thereby paving the way to the normalization of operations.

But things were not all roses for both the Board and management team. They needed to address a lot of problems. At the time, there were only some 3,000 concessionaires and collection figures were not encouraging. Worst of all, non-revenue water was more than half of the daily volume generated by the SMWD.

The GM as Hunter of Illegal Connections. Identifying the problems that caused the poor finances was not difficult for GM Añonuevo to do. The more challenging job was "hunting" the perpetrators of the illegal connections.

The job brought him to the doors of his former teacher, a judge and the police provincial director among others. "I have to humble myself before them just to be able to convince them to apply for water service connection," GM Añonuevo recalls. It was his way of telling them they were not registered users of SMWD although they were enjoying the comfort of using potable water right inside their homes.

"There was even one, who uses the SMWD supply to irrigate his riceland. The trick was that the illegal pipeline would be opened at night time and shut down before sunrise. It took us some good sleuthing before we discovered the anomaly. Of course, we had it cut off," GM Añonuevo, matter of factly, pointed out.

After the initial work of improving the finances, the challenge of improving the service efficiency was next priority. "There was a time when we only operate four hours in the morning and four hours in the evening. The rest of the day, the pipelines were dry," GM Añonuevo told WATERPOINT.

With the support of the Board, the water district started negotiating with the Local Water Utilities Administration for service improvement and expansion loans. The rest, of course, was history.

Powerhouse Team Behind "GM Otic". To support him in facing the challenge of providing Surigao with a reliable and steady supply of safe and potable water, GM Añonuevo recruited in 1994 youthful Engr. Benjamin Ensomo, Jr. as project engineer. Ensomo was at the time an instructor at the Surigao del Norte School of Arts & Trade. He picked Ensomo over a long list of prospects which included seasoned engineers.

When he recruited Ensomo, GM Añonuevo had to make a lot of convincing the school president to let go of his faculty man. MWSD's new project engineer graduated cum laude in 1992 from the Mindanao State University.

Having in his fold, an idealistic action man, Añonuevo proceeded with the task of persuading rebel forces in the area to allow SMWD to undertake a 17-kilometer pipelaying work from the water source in Mt. Parang-Parang to the city.
At first, they imposed conditions, including a demand for a hefty some of money. But the leadership of the rebels later relented after the GM explained that the funds to be used for the project will come from a loan that needs to be repaid.

Añonuevo, recalls with laughter, that they were even able to convince the rebels to help them persuade illegal miners to leave the Mt. Parang-Parang area to ensure water purity. More than 30 of the said illegal settlers were hired as contractuals by the SMWD. They were utilized in the 900-hectare watershed reforestation project in the area.

Today, the former illegal miners are still in the payroll of the SMWD. They are used as forest guards to ensure that nobody cuts the trees in the reforested watershed area. They are also responsible for the maintenance of the watershed itself. It is, in fact, one of the country's very successful reforestation projects.

GM Otic retires in 2004. Upon the resignation of GM Añonuevo, the head of the Engineering Division, the youthful Engr. Ensomo, was the common choice of both the board, this time chaired by Mrs. Alicia Santos, and GM Otic himself.

The assumption of Ensomo as the main man in-charge of the modernization project came at a time when the winning contractor of the P205 million project was experiencing difficulties due to "external pressures." The situation compelled the Santos Board and GM Ensomo to seek clearance from LWUA Administrator Lorenzo H. Jamora to undertake the uncompleted portion of the project by administration. The LWUA chief promptly approved the request, he added. As of this writing, only finishing touches remained to be done, Ensomo told WATERPOINT.

Tightening Financial Controls. Engr. Ensomo himself admits that having a board chair who is an accountant played a pivotal role in ensuring the financial growth of SMWD. He said that the fiscal management policies set by chairperson Santos and the board are implemented by the general manager through Corporate Budget Officer Sheila Fe C. Besario and Administrative Division Manager Sandra S. Binolla.

The SMWD is acknowledged by LWUA Administrator Jamora as among the best and tightly managed water district. With 13,000 concessionaires at present, SMWD registered a high of 98% collection efficiency and 86% low. Even at its low of 86%, still the mark is a lot higher to the average of 70% collection efficiency of not a few water districts.

Tradition of Excellence. Even during the trying times of its corporate life, SMWD have always strived to do the best. And the consistent effort had paid off. In 1999, LWUA awarded it Most Outstanding Water District in the medium size category. The following year, it was reclassified and elevated to the big category. The same year 2000, SMWD was again adjudged by LWUA as Most Outstanding Water District in the big category.

Earlier in 1998, the SMWD was given by the "Dangal ng Bayan" award by the Civil Service Commission for its exceptional growth and efficient service.

From holding business in a crampy office in downtown Surigao City it is now the proud owner of a four-story building which look more like a headquarters of a flourishing bank than that of a government owned and controlled corporation (GOCC).

Also in 1998, the Caraga Regional Office of the Civil Service Commission named then General Manager Añonuevo one of the Ten Outstanding Public Servant in recognition of the phenomenal growth and progress of the SMWD in only ten years of operation.

Looking for the Future Need of Surigao. With 24-hour water supply assured up to the year 2015 through its modernized facilities and improved capacity, the SMWD leadership is looking beyond 2015.

Chairperson Santos succinctly stressed the direction of SMWD when she told WaterPoint that "As soon as our new facilities are inaugurated in September this year, we will go back to the drawing board to map out and prepare for the needs of our concessionaires, 25 or 50 years thereafter.

With a management team that has a clear vision and direction, SMWD can go nowhere but up. After all, its tradition of excellence has been clearly established this early.

Surigao Metropolitan Water District: In a Historical Perspective
By Benjamin R. Ensomo Jr., C.E.
General Manager, Surigao Metropolitan WD

The municipal government in 1932 constructed the original water supply system of Surigao City. Its water sources were the Lumaban Spring and Balibayon Creek located in Barangay Rizal some 5 kilometers southwest of the city proper, and had about 15.2 kms. of transmission and distribution pipelines composed of l00-mm and 150-mm C.I. pipes. A 440 cu.m. concrete ground reservoir was added near the provincial capitol building in 1993.

The operation and management of the water system was taken over by the Provincial Government in 1957. In the same year, Parang-Parang Creek was tapped as source through the construction of a diversion dam and the installation of a 11.9 km. transmission pipeline. A 1,890 cu.m. settling basin/reservoir was also constructed to improve the system. A second transmission main about 12.2 kms. long connected the new dam to the settling basin. Part of the improvement included laying of 1.5 kms. distribution lines. In 1984, a deepwell was constructed in Barangay Luna (about 300 m. west of the Ceniza reservoir) to serve as standby source.

On September 4, 1987, the Surigao Metropolitran Water District (SMWD) was created through Resolution No. 47. After complying with the requirements of LWUA's certification program, SMWD was issued its Conditional Certificate of Conformance No. 324 on Dec. 11, 1987.

Between 1987 and 1990, several improvement measures were implemented by SMWD through LWUA's assistance. . These included, among others, the metering of all service connections and the rehabilitation of dilapidated pipelines.
In 1990, the control of the system was taken over by the provincial government based on a Regional Trial Court decision declaring the creation of SMWD illegal. The case was elevated to the higher court and on October 199,1, the Supreme Court reversed the RTC decision.

The Story of Surigao Metropolitan Water District

Surigao Metropolitan Water District's (SMWD) traces its beginnings is traceable to the town's water system built 'in 1932 and managed by the local government. It took several years before a major improvement could be made on that system. This was in 1957, when the then Surigao Waterworks System dammed the Parang-Parang creek which supplies the Don Julio Ouano Heights reservoir via two transmission mains (200 CCI and 250 mm CLSP).

Unlike many water districts in the country which were formed in the 70's, Surigao came to be much later, in 1987. The Sangguniang Panlalawigan under the administration of OIC Governor Wencelito T. Andanar passed Resolution No. 47 creating the water institution.

But unlike most water disricts, too, Surigao Metro's early life proved to be a checkered one: after the assumption into office of Governor Moises Ecleo in 1989, the Sangguniang Panlalawigan sought to recover the ownership and control over the water system by filing a case nullifying the creation of the water district. Then in March 7, 1990, the Regional Trial Court decided the case in favor of the Provincial Government, It immediately ordered the turnover of the water system even before SMWD could file a motion for reconsideration.

In 1991, the Court of Appeals reversed the decision of the local RTC. The province of Surigao del Norte filed an appeal with the Supreme Court, which that same year upheld the Court of Appeals decision and ordered the provincial government to return the ownership and control of the system back to SMWD. The then newly-elected Provincial Governor Francisco T. Matugas turned over the SMWD on August 1, 1991.

At the helm of the water utility at present are the 5 members of the Board of Directors: Engr. Andoni T. Dumlao as Chair, Ramon E. Kaimo, Jr. who sits as Vice-Chair, Mrs. Socorro L. Sering as Secretary-Treasurer, Mrs. Alicia C. Santos and Mr. Bienvenido C. Ilano as members.

The growth of SMWD can also be attributed to the sincere and dedicated services of its former directors: Atty. Vicente G. Cordero (1987-1988), Mr. Leopoldo A. Lugo (1987-1991), Mr. Nicolas A. Consigna (1992-1998) and Engr. Eduardo C. Santos of LWUA, now DA for Customer Services in MWSS as sixth member (1992-1997), Dr. Jose P. Bayana, Jr. (1995-2000) and Juanita C. Mendoza (1995-2000).

SMWD Re-categorized as Big WD. In 1998, SMWD applied for upward categorization from average to big water district, which was favorably indorsed by LWUA. In accordance with the DBM-approved manual for local water district and upon the recommendation of Administrator Prudencio M. Reyes, Jr., the request for upward re-categorization from average to big water district category was approved on November 24, 1999 by DBM-Caraga region, thereby upgrading the position of the General Manager E, SG - 23 to General Manager C, SG-26.

At present, SMWD has close to active connections serving some 58,110 residents. By the year, 2002, the number of active connections is expected to increase to 10, 500.

Since the inception of the district, General Manager Orestes R. Anonuevo managed SMWD with the support of Division Managers Benjamin R. Ensomo, Jr. (Engineering Division) Lolina G. Labadan (Commercial Division) and O.I.C. Sandra N. Sumaylo (Administrative and Finance Division) and its 64 regular employees. The SMWD family commemorated its 14th anniversary last October 1, 2001.

Completed Projects. Between 1987-1990, several improvement measures were implemented in SMWD through LWUA's Assistance. In 1994, LWUA granted P18.5M loan for Early Action Works Project; Phase I Installation of 11 Kms. 100mm pipeline, l50mm and 200mm diameter of distribution lines. The completion of the EAW project mitigated the problems on dilapidated lines, corroded service tapings, silted and clogged lines and others.

Last year, SMWD completed a number of projects out of "its meager resources. These are: perimeter fencing, construction of Matin-ao impounding dam, equipment shed and Marajing/Matinao pipe support.

One remarkable development of SMWD is the completion of its P5.7M administration building. On January 8, 1998, SMWD transferred its office to the two - story edifice. The Blessing of the building was held on March 13, 1998 simultaneous with the NOMWIC (Northern Mindanao Water Information Council) quarter meeting. The building inaugural ceremonies held on October 22, 1999 also coincided with the centennial MAWD forum hosted by SMWD.

ONGOING PROJECTS

Reforestation. SMWD took the initiative to reforest the 268-hectare denuded area of the Parang-Parang watershed. Funding came from the water district's resources. A Memorandum of Agreement (MOA) between the SMWD and Leaf Foundation, Inc. (LFI) of Mangagoy, Bislig, Surigao del Sur was signed on February 5, 1999 at the SMWD Administrative Building. Signatories were SMWD Chair Andoni T. Dumlao and LFI President Ricardo G. Santiago.

The reforestation project began on February 15, 1999 with the establishment of a seedling nursery spearheaded by four LFI personnel with Mr. Alfred J. Carmelo as the project officer. Presently, a total of five groups, averaging seven persons per group, are commissioned to undertake the project. Contract duration is three years and would end on May 2002.

As of this writing, a total of 119.414 hectares or 44.56% have been replanted with seedlings. Some Pl,943,268.00 has been disbursed by the district from the total contract cost of P5,560,464.00. Several years before, the administration also initiated a reforestation project. For its maintenance, a total of P270,000 is budgeted yearly, Percentage of completion stands at 80.47%.

As proof of SMWD's serious concern with reforestation, it employs a resident forester, Mr. Randy L. Tanguihan, who oversees both projects.

Pipelines Extension Project. This year (2000), some projects are underway, namely, Sitio Pile re-routing of main pipelines, Bernadette - Looc pipe-laying project, reinforced retaining wall and the Barangays Luna and Canlanipa pipeline extensions. Pipe-laying project for Barangay Togbongon is also ongoing in answer to the appeal of the residents in the area.

The district has 58 contractual workers undertaking the various pipeline extension projects.

The P 207-Million OECF Project. SMWD has an OECF-funded project that is about to be implemented. The project is designed to meet SMWD's water supply requirements two years from now as the old system will reach its maximum capacity by that time. Fund sourcing for the project began in 1995 with SMWD requesting endorsements from the Surigao City Sanggunian and the Provincial Sanggunian, followed by a series of follow-ups at the Regional Development Council for its endorsement, and, finally, NEDA, for its approval.

This project, however, took eight long years before it could reach the public hearing stage, from the time the first feasibility study was undertaken in 1992.

On October 27, .1999, the project, then amounting to P220M, was introduced through a public hearing. It required a 45% water rates adjustment. Majority of the city and provincial officials expressed resistance, not on the project but over what they described as an exorbitant water rates increase.

The SMWD board was swayed by the public's plea. It immediately shelved the project pending further re-evaluation by the LWUA. The consultants presented a new projected cash flow last July 2000 with a new water rates adjustment of only 25% to take effect on August 2001 and 2002 and 50% on August 2003 and no increase in the coming years. The consultants, too, presented a reduced project cost form the original P220M to P207M, as the district would shoulder the 10% equity.

The Board and Management of SMWD were convinced over the new cash flow projection. Thus, a barangayan consultation was held from July 17-31, 2000 with the 17 recipient barangays including the 9 barangays presently served by the SMWD.

A minority of residents of two poblacion barangays and a few city and provincial officials voiced their reservations over the project. But the result of the barangay consultation has been very favorable and made SMWD aware that the project is supported by majority of the recipients.

SMWD'S water supply and expansion project under the 21st OECF yenn loan package would soon push through. The present water supplied by the old system, as per study will reach its limit on year 2002 which would serve 10,708 connections, as cited previously. Presently, total number of active connections reached 9,685 serving 58,110 populations. By the end of year 2002, 10,708 connections are expected. Any further delay on the project may cause disrepute to SMWD for not providing 24-hour water supply for the city of Surigao.

SMWD is committed to optimize the utilization of its manpower and resources with the objective of maximizing its services in providing adequate and reliable potable water at an affordable cost.

With a management team headed by GM Benjamin R. Ensomo, Jr., along with the full support of the SWMD Board and employees, the district expects to go a long way, envisioning itself to be a model and among the best serving and performing water districts in the Philippines.

Vision. We envision SMWD as a model Water District providing efficient, reliable and sustainable water supply and sewerage water system while maintaining the highest standards of customer satisfaction with due care for society and environment.

Mission. We shall endeavor to optimize the utilization of our manpower and resources with the objective of maximizing our services in providing adequate and reliable potable water at affordable cost.