Presentation: How to Finance the Philippine Water Supply and Sanitation Master Plan? - Fifth Roundtable on Financing Water - Mr. Roderick M. Planta

1. How to Finance the
Philippine Water Supply and
Sanitation Master Plan?
Roderick M. Planta, Assistant Secretary,
National Economic and Development Authority
RMPlanta@neda.gov.ph

2. Governance: Institutional Fragmentation
2
Current Institutional Setup for the Water Resources Sector
Poor Management of
Water Resources
 Weak and
Fragmented
Institutional Set-up
 Inefficient use and
wastage of resources
 No regular updating
of water availability
data
 No single repository of
water data
 Uncoordinated
sectoral plans

3. Governance: Institutional Fragmentation
3
Current Institutional Setup for the Water Resources Sector
Local Water Utilities
Administration (LWUA) –
promotes and oversees
the development of
water supply systems
Department of the Interior
and Local Government
(DILG) – helps address the
institutional development
needs of LGU-run utilities
Department of Health (DOH)
– one of the entities which
implement regulations on
septage and sewerage
management
3 out 10 Water
Districts are
considered
non-operational
only 3 out 10
LGU-run utilities
operate Level 3
systems (individual
household connections)
3 people out of 100 have
access to septage
management systems; 1
person out of 1000 have
access to sewerage
management systems

4. 4
Governance Reform Pathway
Resource Regulation, Policy and
Planning
Economic Regulation of
WSS Service Providers
Existing National Water Resources Board
(NWRB)
River Basin Control Office (RBCO)
• NWRB - in regulating Private Providers
• LWUA - Water Districts
• MWSS-RO - Metro Manila Concessionaires
• TIEZA - Tourism Areas
• PEZA - Economic Zones
• LGUs - LGU-led Providers
Interim / Short-
Term Reform
National Water Management
Council (NWMC)
• NWMC - Private Providers
• LWUA - Water Districts
• MWSS-RO - Metro Manila Concessionaires
• TIEZA - Tourism Areas
• PEZA - Economic Zones
• LGUs - LGU-led Providers
Medium- to
Long-Term
Reform
Department of Water Resources
(DWR)
Water Regulatory Commission (WRC)

5. 5
The PWSSMP and Its Investment Requirements
3.40 Billion
1.07 Trillion
Historical Average
Investment per year
2019-2030
Total Investment
Requirement
InvestmentinPhP

6. 6
THE UFF Strategy
Elements of the UFF Strategy
increase public spending subject to
rationalized allocation for viability
gap funding or output-based aid
capacity building and institutional
development
leverage private financing thru
market-based credit or equity
Prioritization Criteria
universal access
gaps
poverty incidence
water-borne and
sanitation-related
disease incidence

7. 7
Scope of the UFF-WSS
• National Government (NG)
• Government Financing Institutions (GFI)
• Private Sector
• Financing for Efficiency Improvement
Programs (EIPs)
Design a
structure for
rationally
allocating
available
resources
• Preparation of Feasibility Studies
• Water Supply Development/Expansion
• Water Source Development
• Sewerage/Septage Management
• Non-Revenue Water Reduction
Expedite the
improvement
and expansion
of WSS services

8. 8
UFF Investment Program
• Technical Assistance Grants
• Efficiency Improvement
Program
• Viability Gap Financing
• Output-Based Aid
• Credit Enhancement
NGA Funding Blended Financing
Government
Support + Market -
based financing
Market-based
Financing
Equity
Commercial
Lending
UFF-WSS Investment Program

9. 9
The UFF Strategy
Efforts
investment pipeline development
systemic changes on public resource allocation
definition of institutional roles/ operational set-up
strengthening of utility governance and economic
regulations

10. 10
The UFF and Blended Finance Concept
How well does the UFF sector finance strategy align with Blended Finance concept?
•Public resources are scarce and insufficient;
additional resources are required to meet
need/demand for investment
Mobilize
Additional
Resources
•Strategic use of scarce public and development
resources to attract additional capital for WASH
investment
Leverage
•Additional investment drives social,
environmental, and economic progress
Impact
•Socio-economic returns for government and
development funders; risk-adjusted financial
returns for private capital
Returns

11. 11