Philippine Journal of Development

Number 67, Second Semester 2009

Volume XXXVI, No. 2

An Assessment of the Local Service

Delivery of Potable Water
in Dumaguete City and Selected Areas
of Agusan del Sur Province

Danilo C. Israel1

Abstract
This paper assessed the local service delivery (LSD) of potable water
in Dumaguete City and selected areas of Agusan del Sur. It is based on
a recent study conducted by the Philippine Institute for Development
Studies (PIDS) and the United Nations Children’s Fund (UNICEF).
The results and findings of the study indicated, among others, that
Dumaguete City had met national and Millennium Development
Goals (MDG) related to potable water delivery while some of the
covered municipalities of Agusan del Sur were far from achieving
them. Findings also showed that LSD in the two sites faces numerous
problems—many of which were institutional in nature—that need
to be addressed if national and international goals are to be realized.
Some recommendations, including those on the institutional and other
related aspects, were put forward for the further development of the
LSD of potable water in the two sites as well as in similarly situated
areas in the country.

INTRODUCTION
Potable or drinking water is a critical requirement of human life. Its provision
in adequate quantity and quality is a primary national and international concern

1
Senior Research Fellow, Philippine Institute for Development Studies. E-mail for correspondence: disrael@
mail.pids.gov.ph.
98 Philippine Journal of Development 2009

across the globe. In particular, the Millennium Development Goals (MDGs) target
that 86.6 percent of the population would have adequate access to safe drinking
water by 2015 (NEDA 2007). For its part, the Philippine government aims that
92 to 96 percent of its citizens would have sufficient water supply by 2010
(NEDA 2004).
The performance of the Philippines in meeting national and international
objectives related to potable water needs to be assessed since 2015 is not too far
ahead. Evaluating where the country is at present will determine if its objectives
are attainable. It will also show if there is a need to finetune the government’s
approaches for achieving its goals or if it should fasttrack its efforts within the
limited time available.
In late 2008 and early 2009, the Philippine Institute for Development Studies
(PIDS) and the United Nations Children's Fund (UNICEF) jointly conducted
a study on the delivery of education, health, and potable water services in the
case study sites in Dumaguete City and selected municipalities of Agusan del
Sur. In the case of potable water, the study looked into the current situation of
service delivery in the sites, determined its performance relative to national and
MDG targets, and identified key problems and potential solutions related to local
potable water service delivery.
This paper summarizes the important results and findings of the
aforementioned study on service delivery of potable water in Dumaguete City
and selected municipalities of Agusan del Sur. Earlier versions of the paper are
found in PIDS-UNICEF (2009) and Israel (2009).

METHODS
Local institutions play an indispensable role in the delivery of basic services to the
people. This is particularly true with potable water. Although a critical daily need,
water supply may be inadequate and cannot be fully provided by the relevant
agencies of government.
Realizing the indispensability of potable water, UNICEF as funding
institution and PIDS as implementing agency conducted the study on the local
potable water service delivery. This study was part of a larger research undertaking
entitled “Improving Local Service Delivery for the MDGs in Asia: The Case of
the Philippines,” which was also conducted by the same institutions.
The aforementioned PIDS-UNICEF study on potable water used a
framework of analysis which posited that local service delivery (LSD) is better
understood if viewed from three intertwining components, namely, policy,
institutions, and finance (PIDS-UNICEF 2009). It also stressed that institutional
actors at the local level, including the local government units (LGUs), water
districts (WDs), private sector, and other local potable water service providers
 Israel 99
(WSPs), are key players in the delivery of potable water. This is based on the
assumption that these institutions therefore, are at the forefront of potable water
service provision on the ground and, can deliver more effectively the needed
innovative practices and exercise the political will, if necessary.
Because of the framework’s emphasis on local institutions, the PIDS-
UNICEF study had to be done in local sites. The eventual sites selected—
where UNICEF had done extensive work—were Dumaguete City in the
Province of Negros Oriental and the municipalities of Bayugan, Prosperidad,
and Sibagat in the Province of Agusan del Sur. Another criterion was that
urbanized Dumaguete City and the generally rural municipalities of Agusan del
Sur would serve contrasting settings for a more inclusive study. Accessibility,
security, and other standard factors were also considered in choosing these
areas for the study.
The study utilized data and information generated through different
means. Firstly, it used the relevant published literature to review the potable
water situation at the national level. Data obtained from these secondary
sources centered on institutional factors, which were also the focus of the study
framework. Secondly, for the site analysis, the study also used secondary data
from published and unpublished literature available in the study sites. Data
gathered revolved around the site background, the potable water sector of the
sites, and other useful information.
For the site analysis, the study conducted a household survey comprising
personal interviews with the heads of selected and randomly chosen households
or their representatives in the sites. The survey sought to ascertain the nature
of the use of potable water by households as the primary users and generate
some indications of the price, quality, and accessibility of water. It covered
a total of 183 households in Dumaguete City and 158 households in Agusan
del Sur.
The study also conducted focus group discussions (FGDs) in the study
sites, particularly among households that were nonusers of certain local
potable water services. The household respondents were randomly selected
from the subgroup of nonusers among the sample groups. In Dumaguete City
and Agusan del Sur, 11 and 20 household heads (or their representatives)
participated in the FGDs, respectively. Data gathered focused on the nonuse
of specific sources of potable water among households and the rationale
behind their choices of potable water source. Information were also obtained
on household perception of the problems and issues in service delivery of
potable water and their potential solutions.
The study also included key informant interviews with representatives
of WSPs in the case study sites, including those representing LGUs, WDs,
100 Philippine Journal of Development 2009

and other WSPs. These interviews generated valuable information on the

perception of the service providers on the problems and issues confronting
them and those affecting the potable water sector in their areas.
Key informant interviews were also conducted with LGU representatives
in the study sites, namely, governors, mayors, and barangay captains as well as
members of provincial, municipal, and barangay committees tasked to ensure the
efficient supply of potable water. These interviews generated information on the
perception of these informants on the problems confronting their respective LGUs
related to potable water delivery as well as their potential solutions.
The perceptions of the aforementioned key informants on the problems
and potential solutions relating to potable water service delivery in the sites
were considered since they were the most reliable and quick sources of such
information on the ground. The limited time and resources available to the study
precluded a more intensive identification and verification of the problems and
their potential solutions.

REVIEW OF RELATED LITERATURE

There have been economic studies on the potable water situation in the
Philippines. On the supply side, a study indicated that water service in Metro
Manila was inadequate (David and Inocencio 1996). Two studies (Arellano
1994, David 2000) on the privatization of the Metropolitan Waterworks and
Sewerage Sytem (MWSS) showed that unless some adjustments were made, the
water shortage problem in Metro Manila would persist. Other studies showed
that much of the surface and groundwater in Metro Manila and the country was
already contaminated (Ebarvia 1994, The World Bank Group 2003). Another
study (Inocencio and David 2001) suggested that the provision of water for the
poor and poor communities could be a potent tool for alleviating poverty as it
could significantly impact health, income and consumption, as well as gender
and social inclusion.
One study (Magtibay 2004) indicated that a portion of the population of
the Philippines had shifted its preference from traditional to alternative sources
of drinking water such as water refilling stations. Other studies (Greenpeace
2007, World Bank 2005a) stated that 1 out of 5 Filipinos did not get water from
formal sources. Still another study (Madrazo 2002) pointed out that those without
household connections could only access water from wells, springs, communal
faucets, and/or from small-scale informal providers.
Based on another study (ADB 2006) focusing on water supply as a
development goal, by 2015 the Philippines would have rural water supply for
only 77 percent of the rural population. In 2004 overall water supply coverage for
the Philippines was only 85 percent (ADB 2007).
 Israel 101
On potable water demand and consumption, two studies (Largo et al.
1998, David et al. 2000) revealed that water pricing significantly affected
water demand in the country. Based on another study (Inocencio et al. 1999)
a family of six in the Philippines usually depended on the potable water
lifeline or minimum consumption block measuring about 10 cubic meters.
This implies a substantial water demand, particularly when viewed against an
increasing population.
Where the importance of institutions to the provision of potable water is
concerned, one study (Water and Sanitation Program 2004) suggested that rural
water supply projects with significant investments in capacity and institution
building produced the most sustainable rural water supply. Another study (Singh
2006) suggested that policymakers in the Philippines should give due attention
to institutional transformation or the creation of appropriate and new institutions
as the country moves toward decentralization. Still another study (Johnson
et al. 1996) explored innovative ways to finance water districts in the country,
particularly where the support of financial donors could be tapped.
In summary, the foregoing findings from various studies highlighted the
following about the potable water situation in the Philippines:
 The country has been faced with inadequate potable water resulting
from water scarcity and water contamination;
 This problem is exacerbated by increasing water demand brought
about by a high level of consumption and an increasing population;
 National and MDG goals on potable water supply may not be
achievable based on past performance and projections;
 Innovative solutions are urgently needed to address the potable water
problems and achieve the national and MDG objectives;
 One potent solution could be significant investments in capacity and
institution building to make rural water supply projects sustainable; and
 Local institutions could play an important role in potable water service
delivery with decentralization.

INSTITUTIONAL REVIEW RELATED TO POTABLE WATER

Government institutions, roles, and responsibilities
Table 1 lists down the local and national government agencies involved in
local water service delivery in the Philippines and their respective roles and
responsibilities. While the various institutions affect local water service delivery
in varying degrees, the institutions of interest to the study are the WSPs and the
LGUs, because they are the ones actually involved in the provision of potable
water locally.
102 Philippine Journal of Development 2009

Table 1. Key water supply institutions in the Philippines and their roles and responsibilities
Agency/Legal Basis Roles and Responsibilities
Water service providers (WSPs) Management and operation of water supply systems

Presidential Decree (PD) 198 or the Provincial Water

Utilities Act of 1973 established water districts in the
country.

Local government units (LGUs) Planning and implementation of water supply and
sanitation programs
The 1991 Local Government Code (LGC) mandated  Preparation of water and sanitation master plans
the sharing of responsibility of providing local potable  Monitoring of local water and sanitation coverage
water service among local government units. and updating of sector profile
 Provision of support to water service providers
namely, rural water supply associations, barangay
water supply associations, and cooperatives,
including funding from Internal Revenue Allocation
(IRA)
Local Water Utilities Administration (LWUA) Capacity building support to WSPs
 Provision of technical advisory services and
PD 198 of 1973 created the LWUA. financial assistance to water districts
 Provision of technical and institutional support to
EO 738 of 2008 transferred jurisdiction of the LWUA LGUs and WSPs
from the Department of Public Works and Highways  Setting design standards for water supplies
(DPWH) to the Department of Health (DOH). operated by WDs and other WSPs
Department of Interior and Local Government Capacity building support to LGUs
(DILG)  Provision of capacity building training to LGUs
In 1990, reorganization was undertaken which  Coordination of LGU masterplan preparation
established the current DILG by virtue of Republic Act  Provision of information to LGUs on available sec-
No. 6975. tor programs and financing

National Water Resources Board (NWRB) Regulation of WSPs, including LGU-managed water
utilities
PD 424 of 1974 created the National Water  Tariff regulation
Resources Council, now known as NWRB.  Coverage and service regulation
 Management of WSP database, including WSP
EO 123 of 2002 strengthened the NWRB and performance data
mandated it to approve tariffs of local water
districts.

National Economic and Development Authority Coordination of preparation of national development

(NEDA) plans and investment programs
 Formulation of sector policies and strategies
In 1987, reorganization was undertaken which  Monitoring implementation of policies, programs,
established the current NEDA by virtue of EO 230. and projects

DPWH Provision of technical support to LGUs upon request

including implementation of Level I and II projects
In 1987, reorganization was undertaken which
established the current DPWH by virtue of EO 124.
 Israel 103
Table 1 continued
Agency/Legal Basis Roles and Responsibilities
Department of Finance/Government Financing Financing support for the water supply sector
Institutions (DOF/GFIs)  DOF oversees performance of GFIs like
Development Bank of the Philippines (DBP),
In 1987, the DOF was reorganized by virtue of EO Land Bank of the Philippines (LBP), and LWUA.
127, 127-A, and 292. These GFIs provide funding for the water supply
sector.
National Anti-Poverty Commission(NAPC)-Water Coordination of the P3W (President’s Priority Program
Supply Coordinating Office on Water) water supply projects for 432 municipalities
outside Metro Manila where people’s access to water
The NAPC was created by the Social Reform and supply is below 50 percent, 210 communities within
Poverty Alleviation Act of 1998 or RA 8425. Metro Manila, and 201 municipalities in conflict zones
covered by peace agreements with various rebel
groups.
Source: PIDS-UNICEF (2009)

National strategies and programs

The strategies and programs implemented by the national government to attain
MDG and national objectives related to potable water supply in the Philippines
are summarized in Table 2. Although all the strategies and programs, in one
way or another, impact LSD of potable water, of special interest to the study
are: strategy (c) that uses institutional strengthening as an approach for WSP
improvement; and strategy (e), which aims to promote innovative schemes
to finance LGUs in the conduct of their functions related to potable water
provision. In the case of the programs, (a) is relevant to the study as it aims to
provide potable water to local areas, including all barangays in the country, and
633 “waterless” communities outside Metro Manila, which could include some
barangays located in the study sites.

Institutional problems
Although the Philippines already has numerous laws, agencies, strategies, and
programs in place for potable water as indicated above, the system of governance
in this area at the national level is deemed weak and inadequate. Among the
most important of the institutional problems being faced are listed below (PIDS-
UNICEF 2009). It would be interesting to know based on the results and findings
of the study if the national problems and issues also exist at the study sites and
what potential solutions can be considered to address them.
 Multiplicity of institutions. The water supply sector is highly
fragmented due to unclear duties among institutions, overlapping
functions, and poor coordination in planning and monitoring.
 Uncertainty in law implementation. There is a high degree of
uncertainty on how to implement the laws, particularly Executive
104 Philippine Journal of Development 2009

Table 2. Key strategies and programs related to potable water supply in the Philippines
Strategy a) Make potable water available nationwide by 2010 through the P3W, with priority given to
at least 200 “waterless” barangays in Metro Manila and 200 “waterless” municipalities in
conflict zones outside of Metro Manila through private sector or public investment.
b) Ensure that the LGUs provided with water supply services will also have sanitation facili-
ties.
c) Continue to provide capacity building programs and technical assistance to WSPs on
water and sanitation planning, management, and project implementation.
d) Develop and manage technology options for water supply such as solar desalination for
isolated islands, windmill technology, and others.
e) Promote private–public partnerships (PPPs) for increased investment in water provision to
waterless LGUs, especially remote barangays and municipalities.
f) Conduct an assessment of the groundwater resources and vulnerability for the 310 prior-
ity LGUs.
g) Monitor potable water supply through the Tap Watch Program.
h) Complete the groundwater resource inventory/assessment in major urban areas and
surface water in rural areas, controlling the extraction of groundwater through moratorium
and/or stringent requirements in the grant of water permits in water-deficient areas, and
through complete registration of all water pumps, metering of water pumps, etc.

Program a) In focusing on waterless areas, the government is implementing the P3W. This is in line
with President Gloria Macapagal-Arroyo’s Ten-Point Agenda formulated and announced in
2004, which includes the “provision of power and water supply to all barangays.” Priority
areas are the 212 “waterless” areas in Metro Manila and 633 “waterless” municipalities
outside Metro Manila.
b) In establishing groundwater monitoring system, the government aims to regulate pumping
in areas where piezometric heads (which measure the level of the water table above sea
level) are declining, and to assess the state of existing wells in terms of their physical
state or the quality of water coming from it.
c) In providing safe drinking water, the government installs low-cost water supply facilities
such as hand pumps, gravity-fed systems, rainwater collection, and shallow wells or deep
artesian tube wells. It builds infrastructures for drinking water, especially in rural areas
with poor access.
d) In conserving water for sustainable water quality and supply, the government undertakes
activities that include: (a) improving the system’s efficiency; (b) improving the metering
efficiency and monitoring the unauthorized use of water; (c) encouraging the use of sav-
ing devices, application of new technologies, and recycling; and (d) conducting intensive
public information, education, and communication programs on water conservation.
e) In addressing the downward trend in sanitation coverage, the government has adopted,
developed, and constructed low-cost sanitation facilities such as “engineered reed
bed treatment system” for low construction cost and maintenance cost, and ventilated
improved pit privy (VIP) and other latrines.
Source: NEDA (2007, 2004)

Order 279 of 2004 which instituted reforms in the financing policies

for the water supply and sewerage sector and for WSPs. This is because
the required institutional capacities of the corresponding institutions to
carry out the functions mandated in the law were insufficient.
 Weak regulatory framework. The water supply sector lacks coherent
and robust regulatory framework due to: i) fragmented regulatory
oversight by different line agencies; ii) lack of capacities to perform
 Israel 105
regulatory functions; and iii) lack of transparency in sector performance
that impedes effective regulation.

OVERVIEW OF POTABLE WATER SERVICE DELIVERY

IN THE PHILIPPINES
This section provides a background of the potable water service delivery in the
Philippines concentrating on the traditional service providers and the access of the
national population to potable water.

Water service providers (WSPs)

The traditional WSPs include WDs, LGU facilities, rural water supply associations
(RWSAs), barangay water supply associations (BWSAs), cooperatives, and
private firms. There are also household self-providers who put up their own water
supply systems as well as refilling stations, and bottled water providers who sell
processed water. The number and percentage of WSPs in the country as of 2005
are shown in Table 3. In addition to these, an unaccounted number of household
self-providers, refilling stations, and bottled water producers exist in the country.
The number and percentage of the national population served by the WSPs as of
2007 are presented in Table 4.
In terms of number of units, therefore, BWSAs were the largest WSPs
in the Philippines, followed by private firms, LGU utilities, WDs, RWSAs,
and cooperatives. On the other hand, in terms of people served, WDs were the
largest providers followed by LGU utilities, RWSAs/BWSAs, private/NGOs,
cooperatives, and the MWSS.
Access to safe drinking water
The available data on access to safe drinking water in the Philippines have
been inconsistent (World Bank 2005). As earlier mentioned, ADB (2007) stated

Table 3. Water service providers in the Philippines, as of 2005

Type of Provider Estimated Number % to Total
Water districts 580* 9.2
LGU utilities 1,000 15.9
RWSAs 500 8.0
BWSAs 3,100 49.4
Cooperatives 200 3.2
Private firms 900 14.3
Total 6,280 100.0
* 127 were considered nonoperational due to nonviability and lack of Board as of 2003–2004
Source: World Bank (2005b)
106 Philippine Journal of Development 2009

Table 4. National population served by water supply providers, as of 2007

Type of Provider Population Served % to Total
Water districts 6,851,487 75.6
LGU utilities 1,511,680 16.7
RWSA/BWSA 296,886 3.3
Cooperatives 100,216 1.1
MWSS* 15,818 0.2
Private/NGO 286,007 3.2
Total 9,062,094 100.0
* This apparently does not include updated data from the two concessionaires, Maynilad Water Services Inc.
(MWSI) and Manila Water Company Inc. (MWCI). As of June 2007, MWSI had 5.9 million customers in 696,805
water connections.
Source: DILG

that in 2004 overall water supply coverage in the Philippines was 85 percent.
But surveys of the National Statistics Office (NSO) indicated only a slight
improvement in access to safe drinking water, that is, from 80.0 percent in 2002
to 80.2 percent in 2004. On the other hand, the Joint Monitoring Program for
Water Supply and Sanitation of UNICEF and the World Health Organization
(WHO) showed a declining trend from 87 percent in 1990 to 85 percent in 2004
(PIDS-UNICEF 2009).
It thus appears that the MDG target of 86.6 percent of the population with
adequate access to safe drinking water by 2015 may be achievable nationally.
On the other hand, the Philippine government’s target of 92 to 96 percent of its
citizens having adequate water supply by 2010 may not be attained.
Furthermore, data indicate a large, albeit decreasing urban-rural disparity
in access to drinking water nationally (PIDS-UNICEF 2009). For instance,
in 1990, the percentage of the population in urban areas with access to safe
drinking water was 92 percent while that for rural areas was 75 percent. In
2004, the percentage of the population with access to safe drinking water
increased to 96 percent in the urban areas while those in the rural areas rose to
88 percent. Thus, access to safe drinking water in both urban and rural areas
increased while the disparity in access between the areas had narrowed down
but remained substantial.
The available data also indicate that there is disparity in access to safe
drinking water between regions in the Philippines (NEDA 2009). Furthermore,
while nationally, the MDG targets for achieving sufficiency in access to safe
drinking water may be achievable, as mentioned above, there remain waterless
areas at the local level that need to be taken into account. Such a situation
was in fact the rationale for the implementation of P3W by the government.
A review, however, indicates that the gains of the P3W have been modest
 Israel 107
and more needs to be done to provide water to waterless communities in the
country (PIDS-UNICEF 2009).

RESULTS OF CASE STUDIES

Site description
Dumaguete City is the capital of Negros Oriental, which is located in Region
VII, or Central Visayas (Figure 1). This coastal city is located in the southwestern
part of the province facing Siquijor and Cebu. It became a city in 1948. The
background data on Dumaguete City are presented in Table 5.
The province of Agusan del Sur is in the Caraga Region, which is located
in the northeastern part of Mindanao (Figure 1). This province was founded in
1967. Bayugan, the most populated area of the province, became a municipality
in 1961 and has since been accorded a first-class status. Prosperidad, also a first-
class municipality, is the capital of Agusan del Sur. Sibagat, on the other hand, is
a third-class municipality. The background data on the three municipalities are
presented in Table 5.

Status of local potable water service delivery

There are essentially three types of potable water systems in the Philippines. Level
I water system includes stand-alone water points such as hand pumps, shallow
wells, and rainwater collectors. Level II covers piped water with a communal

Figure 1. Map of the Philippines highlighting the provinces of Negros Oriental and Agusan
del Sur

LUZON Negros Oriental

Agusan del Sur

VISAYAS

MINDANAO
108 Philippine Journal of Development 2009

Table 5. Background data on the study sites

Name of Site Population Land Area (Ha) Population Density
(persons/Ha)
Dumaguete City 116,392 (2007) 3,426 33.97

Agusan del Sur

Bayugan 141,286 (2008) 50,500 2.80
Prosperidad 70,816 (2000) 59,836 1.18
Sibagat 28,682 (2000) 56,000 0.51
Sources of data: LGUs of Dumaguete City and Agusan del Sur

water point such as a bore well and spring system. Level III water includes piped
water supply with a private water point such as a house connection.

Dumaguete City
The service delivery of Level I water in Dumaguete City is provided by both the
private sector and LGUs while Level II water is supplied by the LGUs. Level III
water is supplied by the Dumaguete City Water District (DCWD), a government
corporation. Records show that in 2007, there were a total of 232 Level I water
systems in Dumaguete City as against only two Level II and one Level III water
systems. Level I water systems comprised about 99 percent of the water systems
in Dumaguete City.
Providing Level I and Level II potable water systems, particularly
for the poor in Dumaguete City, has been one of the major programs of the
city government in coordination with the barangay governments. The City
Engineer’s Office has been specifically tasked to construct and maintain Level I
and Level II public water systems in the city. In general, the publicly Level I and
Level II water is available for free or at a low cost, since it is a form of public
service of the city government.
Aside from the city government, the City Planning and Development
Office (CPDO) of Dumaguete City as an LGU arm is involved in potable water
management. It monitors and regulates large-scale underground water extraction
in the city. For this type of water extraction, the proponent is required to get a
permit to operate from the CPDO. Another important function of the CPDO is to
maintain a database on water extraction in the city.
As in many other local areas in the country, some households in
Dumaguete City self-provide Level I water. The installation of a Level I
water system in the household is done by private business establishments,
individual contractors, or the household members themselves. In 2007, there
were 140 private Level I water systems serving 148 self-providing households
in the city.
 Israel 109
The DCWD, on the other hand, has distribution lines in the entire Dumaguete
City that supply level III water. In 2008, it provided water for about 95 percent
of households, with the rest getting water from Level I and Level II water
systems. In 2006, the DCWD had 29,419 service connections, including those for
17,591 households, 256 public taps, 1,571 commercial establishments, and one
unidentified consumer classified as ‘others’. Households, therefore, formed 59.8
percent of the customers of the water district. The tariff structure or water pricing
of the DCWD since 2005 are shown in Table 6.
The tariff structure of the DCWD indicates that semicommercial and
commercial users pay more than residential and government users at the same
consumption levels. The structure, therefore, is a pricing scheme where large
commercial users pay more per unit compared to the less consuming but numerous
households. The structure is consistent with the socialized pricing scheme used by
WDs in general throughout the country.
Key informants at the DCWD indicated that in 2008, the water district
generated a net profit of about PHP 9 million. This means that as a government-
owned or controlled corporation it was making profit under the existing tariff
structure. But FGDs showed that the current tariff and the cost of water connections
were considered high by some households. On the positive side, the households in
general considered the water from the water district as of acceptable quality and
easily accessible. Price, quality, and accessibility, therefore, are important reasons
households use water from the water district.
In addition to Levels I, II, and III water, processed water in the forms of
bottled water and refilled water are available in Dumaguete City. In 2007, there
were 20 water refilling stations. The retailing of bottled water in Dumaguete
City was generally conducted by commercial establishments.

Table 6. Tariff structure of Dumaguete City Water District, 2005 (in Philippine pesos)
Category Residential/ Semi- Semi- Semi- Commercial
Government Commercial Commercial Commercial
A B C
Minimum charge 120.00 210.00 160.00 150.00 240.00
(First 10 cubic meter
or less)

Commodity charge
(Consumption in cubic Pesos/cubic Pesos/cubic Pesos/cubic Pesos/cubic Pesos/cubic
meter) meter meter meter meter meter
11–20 13.50 23.60 20.25 16.85 27.00
21–30 16.50 28.85 24.75 20.60 33.00
31–50 20.00 35.00 30.00 25.00 40.00
51 up 24.00 42.00 36.00 30.00 48.00
Source of Data: DCWD
110 Philippine Journal of Development 2009

Municipality of Bayugan
Just like in Dumaguete City, Levels I, II, and III water systems exist in Bayugan
and the two other selected municipalities of Agusan del Sur. Similarly, the
service delivery of Level I water is done by the LGUs and the private sector
while Level II water is provided by the LGUs. Level III water is delivered by the
water district.
Bottled water and refilled water producers also exist in Bayugan and other
municipalities of Agusan del Sur. However, the proportion of the population that
uses processed water is low except among higher-income groups. Based on the
FGDs, households in Bayugan and the other selected municipalities in Agusan del
Sur that do not drink bottled water or refilled water deemed the price of the water
high, they could get free or cheaper water elsewhere, and processed water is not
always available in their area.
The municipal government provides Level I and Level II water systems
to Bayugan with the coordination of the barangay units. The municipal mayor’s
office specifically takes charge of potable water provision in coordination with
the barangay officials. There are no available data on the total number of water
systems provided for by the municipal government. Based on sketchy data
available, in 2008 this LGU provided 15 shallow wells to one barangay. There
are also BWSAs in Bayugan and the two other selected municipalities. Yet the
number of functional BWSAs at present is not known.
The Bayugan Water District (BWD) provides Level III water to Bayugan.
The BWD started operating in 2001 with the entire municipality as its coverage.
At present, however, the BWD currently services only 9 out of 43 barangays in
the municipality, mostly located along the national highway. As of 2008, the water
district provided water to 2,325 households, which formed only 13.6 percent of
the total in the municipality.
The tariff structure of the BWD is shown in Table 7. Just like in Dumaguete
City, the tariff structure is a pricing scheme where large commercial users pay
more per unit compared to the numerous households consuming less water. The
tariff rates of the BWD are also significantly higher than those of the DCWD
notwithstanding the fact that the general population of Bayugan, being a town, is
significantly poorer compared to Dumaguete City.

Municipality of Prosperidad
As in Bayugan, the responsibility of providing Level I and Level II water
systems in Prosperidad falls on the municipal government. This LGU, however,
currently does not have a specific program for the provision of potable water in
the municipality. Instead, it only provides short-term soft loans to the Prosperidad
Water District (PWD) for the establishment of Level I water systems. In 2008, the
 Israel 111
Table 7. Tariff structure of the Bayugan Water District, 2009 (in Philippine pesos)
Category Residential/ Semi- Semi- Semi- Commercial
Government Commercial Commercial Commercial (Industrial)
A B C
Minimum charge 204.80 358.40 307.20 256.00 409.60
(First 10 cubic
meter or less)

Commodity
charge
(Consumption in Pesos/cubic Pesos/cubic Pesos/cubic Pesos/cubic Pesos/cubic
cubic meter) meter meter meter meter meter
11–20 22.40 39.20 33.60 28.00 44.80
21–30 24.95 43.65 37.40 31.15 49.90
31–50 28.15 49.25 42.20 35.15 56.30
51 up 32.00 56.00 48.00 40.00 64.00
Source of Data: BWD

municipal government contributed PHP 300,000 as counterpart fund to the PWS

for the establishment of Level I water systems in one barangay.
The PWD, which was founded in 1977 and supplies Level III water to
Prosperidad, also covers the entire municipality like the BWD. Likewise, the
PWD operates only in 7 out of 32 barangays, including the poblacion and its
nearby barangays. It covers only about 17 percent of households.
Table 8 shows the current tariff structure of the PWD. Again, the structure
is similar to those of other WDs where residential and government users pay less
than what commercial and industrial users do. It is also worth noting that the
tariff rates of the PWD are lower than those of the BWD. But they are higher than
those of the DCWD even if the general population of Prosperidad is much poorer
compared to Dumaguete City.

Municipality of Sibagat
The municipal government of Sibagat does not have an established program
for providing Level I or Level II water in the town. The municipality also does
not have a water district for the provision of Level III water. What it has is a
waterworks system that is under the economic enterprise unit of the municipal
government. Such a system is responsible for the operation, maintenance, and
overall management of the income-earning water services of the municipal
government. Key informants indicated that a water district will be established n
the town within a few years.
The facilities of the waterworks system currently include shallow wells,
deep wells, and spring boxes. Some of the spring boxes are connected to pipes that
channel faucet water to households, hence making them Level III water systems.
112 Philippine Journal of Development 2009

Table 8. Tariff structure of the Prosperidad Water District, 2009 (in Philippine pesos)
Category Residential/ Government Commercial
(½” Pipe) (½” Pipe)
Minimum Charge 171.00 342.00
(First 10 cubic meter or less)

Commodity Charge
(Consumption in cubic meter) Peso/cubic meter Peso/cubic meter
11–20 18.25 36.50
21–30 21.75 43.50
31–40 25.90 51.80
41–up 30.40 60.80
Source of Data: PWD

The system operates four Level III water system units that collectively serve
1,205 households. The current pricing scheme for households using water meters
is PHP 80 for the first 10 cubic meters and PHP 7 per cubic meter thereafter. This
rate is significantly lower that those imposed by the BWD, PWD, and DCWD for
Level III water.
Results of FGDs among Bayugan and Prosperidad households indicated
that those without connections to the water district found the cost of connection
and tariff rates high, considering that their current water costs were low. Also,
these households indicated that their current water sources were accessible
and at par with the water district in terms of quality. Water pricing, quality,
and accessibility, therefore, are important considerations for households in
these localities in their choice of water sources.
In general, then, potable water delivery systems in Dumaguete and Agusan
del Sur are carried out through Levels I and II structures of the LGUs and Level
III facility of the WDs. Outside of the government, the implementation of the
strategies and programs has been enhanced with the active participation of the
private sector WSPs and those supported by NGOs and other development actors
in the local potable water service delivery sector.

Local potable water service delivery: target access versus actual access
Dumaguete City
Provincial and city records showed that in 2007, Dumaguete City had a total
of 21,582 households, of which 20,012 households were serviced by Level I,
Level II, and Level III water systems. The DCWD served 19,239 households
or approximately 96 percent of the total. Level I water systems served about 3
percent of the households while Level II water systems served approximately
1 percent.
 Israel 113
With the total of 21,582 households in Dumaguete City and the 20,012
households serviced by Level I, Level II, and Level III water systems, the rate of
access to safe drinking water in the city, therefore, was 92.73 percent (Table 9).
This figure is way above the target of the MDGs of 86.6 percent and within the
range of the Philippine government target of 92 to 96 percent. This may, therefore,
mean that Dumaguete city has already met national and MDG targets related to
local potable water service delivery.
Notwithstanding Dumaguete City’s relatively good performance in meeting
international and national goals of potable water delivery, it still embarked
on some improvements in the provision of potable water. In the case of the
DCWD, the planned activities and projects up to 2010 included the following:
a) construction of a new administrative building; b) professional advancement
as well physical and spiritual development of its employees; c) replacement of
old and dilapidated equipment; d) acquisition of refilling equipment; e) bringing
down of nonrevenue water by 30 percent; f) increase in household connections
by 4,000; g) optimization of water production and minimization of downtime;
h) increase in number of four-wheeled service vehicles; i) protection of the
watershed; j) enhancement of water quality analysis; and k) shortened distances
of service lines to concessionaires.

Municipality of Bayugan
Provincial and municipal records showed that in 2007, Bayugan had 17,012
households, of which 16,086 were serviced by Levels I, II, and III water systems.
The rate of access to safe water, therefore, was 94.6 percent (Table 9). Based on
the Community-based Monitoring System (CBMS) survey, 16.81 percent of the
households in Bayugan had no access to safe water in 2005. The rate of access
to safe water of 83.19 percent—which corresponds to the 16.81 percent without

Table 9. Rate of access to safe drinking water by households in Dumaguete City and
selected municipalities in Agusan del Sur, 2005 and 2007
Site (Year) Total Number of Households With Rate of Access to
Households Water Systems Safe Drinking Water
(%)
Dumaguete City (2007) 21,582 20,012 92.73

Agusan del Sur

Bayugan (2007) 17,012 16,086 94.56
(2005) 83.19
Prosperidad (2007) 13,064 8,683 66.47
(2005) 62.03
Sibagat (2007) 5,289 4,794 90.64
(2005) 54.51
Sources of Data: CPDO, Agusan del Sur (2008); PHO, Agusan del Sur (2008); PPDO, Agusan del Sur (2005)
114 Philippine Journal of Development 2009

access to safe water—fell below the government target of 92 to 96 percent and the
MDG target of 86.8 percent. However, the rate of access to safe drinking water
of 94.6 percent in 2007 had met both the national and MDG targets. Based on
available data, then, this may mean that Bayugan has already met or is close to
meeting national and MDG targets for local potable water service delivery.

Municipality of Prosperidad
Provincial and municipal records indicated that in 2007, Prosperidad had 13,064
households of which 8,683 households were serviced by Levels I, II, and III water
systems. Therefore, 66.5 percent of the households in the municipality had access
to safe drinking water (Table 9). According to the CBMS survey, of the households
in Prosperidad, 37.97 percent had no access to safe drinking water in 2005. The
rate of access to safe water of 62.03 percent (the reverse of 37.97%) in 2005
and 66.5 percent in 2007 in Prosperidad is way below the national government
and MDG targets. Thus, more efforts in water service delivery may need to be
undertaken in the municipality.

Municipality of Sibagat
Provincial and municipal records showed that in 2007, Sibagat had 5,289
households, of which 4,794 households were serviced by Levels I, II, and III
water systems. Therefore, the access to safe water was 90.6 percent (Table 9).
According to the CBMS survey, however, of the households in Sibagat, 45.49
percent had no access to safe drinking water in 2005. The inconsistency and
significant difference between the numbers pertaining to 2005 and 2007 suggest
data problems related to LSD in potable water in the municipality.
The 54.51 percent (the reverse of 45.49%) rate of access to safe water in
Sibagat in 2005 is the lowest compared to Bayugan and Prosperidad. Therefore,
based on this figure, maximum effort must be exerted in the municipality to
improve its potable water service delivery. On the other hand, the rate of access
of safe drinking water in Sibagat in 2007 of 90.6 percent has already met MDG
targets and is close to meeting national targets.

Household use of potable water

The survey of households in Dumaguete City and in selected municipalities in
Agusan del Sur further generated some interesting results and findings about the
performance of local water service delivery in these areas.
The majority of households surveyed in Dumaguete City and selected
municipalities in Agusan del Sur had their primary sources of drinking water
located within their neighborhood (Figure 2). Most of these households also
had easy access to drinking water, since the sources were located within a short
 Israel 115
Figure 2. Water accessibility in Dumaguete City and selected municipalities in Agusan del
Sur, 2008
100
Percentage of

80
households

60 Dumaguete City
40 Agusan del Sur
20 All
0
Location of source of drinking 0 number of minutes to get Walking as means of travel to get
water is within neighborhood drinking water drinking water

Source: LSD Household Survey, 2009

distance. As such, it can be assumed that the local water service delivery system
helped ensure that water was readily available to households.
Although adult males in the households were mainly in charge of getting
potable water from its primary sources in Dumaguete City and Agusan del Sur,
adult females and children were also involved (Figure 3). In this regard, there
may be gender and age dimensions to the activity. It also means that water service
delivery was for the most part physically easy, thus facilitating the involvement of
women and children in such a task.
Only a minority of households in both Dumaguete City and Agusan del
Sur treated their drinking water (Figure 4). This may mean that households were
either generally content with the quality of their drinking water, were unwilling
to spend for water treatment, or were ignorant of the potential dangers of
contaminated water.
Of the households who treated their drinking water, a majority in Dumaguete
City and Agusan del Sur used boiling as a form of treatment (Figure 5). This
could mean households were willing to pay only a small amount for treatment.
Another form of water treatment used by the households was filtering, which
could indicate that households were not willing to spend for treatment at all.
The majority of households in Dumaguete and Agusan del Sur considered
the quality of their drinking water before treatment good, which explains why
they did not see the need for treatment (Figure 6). A number of households
described it as excellent while only a minority said the quality of the water
was fair or poor.
The majority of households in Dumaguete City and Agusan del Sur were
willing to pay a certain amount for the improvement of their drinking water while
a substantial number of them were not (Figure 7). Among the former, most would
pay PHP 1 or less for the treatment of every liter of water while others were
willing to pay more. Since the majority of households were willing to pay only a
minimal amount for the improvement of their drinking water, then they may not
be able to cover the full cost of such improvement. Other sectors may have to
assume the rest of the cost. Furthermore, this result supports the earlier suggestion
116 Philippine Journal of Development 2009

Figure 3. Household members who fetched drinking water from primary source, by gender
and age, in Dumaguete City and selected municipalities in Agusan del Sur, 2008
100
80
Percentage of
households

60
Dumaguete City
40 Agusan del Sur
20 All
0
Drinking water treated Drinking water not treated
Source: LSD Household Survey, 2009

Figure 4. Households that treated their drinking water in Dumaguete City and selected
municipalities in Agusan del Sur, 2008
100
80
Percentage of
households

60
Dumaguete City
40 Agusan del Sur
20 All
0
Drinking water treated Drinking water not treated

Source: LSD Household Survey, 2009

Figure 5. Type of treatment households used in Dumaguete City and selected municipalities
in Agusan del Sur, 2008
80
Percentage of
households

60
Dumaguete City
40 Agusan del Sur
20 All
0
Boiling Filtering Others
Note: Others include mineralizing, purifying by water dispenser/purifiers and water ozonizers.
Source: LSD Household Survey, 2009

that most households used only boiling and filtering as forms of water treatment,
because at most they could only pay a small amount for water treatment.
Under normal conditions, those who were willing to pay only PHP 1 or less
per liter of water for its improvement may not be willing to pay for the price of
bottled or processed water, which cost many times more than PHP 1 per liter. This
may explain why bottled water is not a popular water source among households,
particularly the poor.
 Israel 117
Figure 6. Quality of drinking water before treatment in Dumaguete City and selected
municipalities in Agusan del Sur, 2008
90
80
Percentage of households

70
60
Dumaguete City
50
40
Agusan del Sur

30 All

20
10
0
Excellent Good Fair Poor

Source: LSD Household Survey, 2009

Figure 7. Maximum amounts that households were willing to pay for the improvement
of drinking water in Dumaguete City and selected municipalities in Agusan del
Sur, 2008
100
90
80
Percentage of
households

70
60 Dumaguete City
50
40 Agusan del Sur
30 All
20
10
0
0.00 1.00 or less More than 1.00
Pesos per liter
Source: LSD Household Survey, 2009

Key issues affecting potable water service delivery in the sites

Based on the FGDs in Dumaguete City and the three municipalities of Agusan
del Sur, the following emerged as the important issues surrounding local potable
water service delivery in these sites (Table 10). As these key issues were raised by
the local stakeholders, they may need further verification and study.
Many of the foregoing key issues identified by local stakeholders are
institutional in nature. Even if other issues are not, they still have some institutional
underpinnings such as denuded watersheds and water contamination; disparities
in potable water service delivery systems across barangays; poor personnel pay;
and lack of emphasis on water sanitation. The institutional problems are therefore
among the most important issues confronting local potable water service delivery
in the two sites covered by the study.
118 Philippine Journal of Development 2009

Table 10. Key issues facing potable water service delivery in Dumaguete City and selected
municipalities in Agusan del Sur
Key Issues Dumaguete City Bayugan Prosperidad Sibagat
1. Entire sector
Institutional issues
 Low levels of technical qualifications of the x x x
manpower involved in local water service
delivery;
 Lack of integrated planning and ineffective x x x x
implementation by the relevant institutions;
 Lack of government regulations, particularly x x x x
on small-scale groundwater extraction by
the private sector; and
 Limited public and private sector participa- x x x x
tion in local water service delivery.
Financial issues
 Low levels of financial and other related x x x
investments in water delivery systems.
Other issues
 Denuded watersheds and water con- x x x x
tamination that endanger both surface and
underground water sources in the two sites;
 Disparities in potable water service delivery x x x
between the different barangays; and
 Existence of waterless barangays that have x x x
no or limited local water service delivery.

2. Water districts
Institutional issues
 Poor coordination with LGUs, resulting in x x x
the latter becoming competitors instead of
partners in local water service delivery
Financial issues
 Difficulty in paying outstanding loans by x x
some water districts due to low or negative
financial profitability; and
 High exchange rate of the peso to the x x x
dollar, which prevents the WDs from
purchasing imported equipment.
Price, quality, and accessibility issues
 From the perspective of the poor house- x x x
holds, high rates of water connection and
water tariffs which discourage them from
getting a water connection;
 From the perspective of some WDs low x x
rates of water connection and water tariffs
that do not allow them to recover costs and
earn profits;
 Perceived poor quality of water from WDs x x
due to water turbidity; and
 Limited coverage, expansion and acces- x x
sibility of WDs.
 Israel 119
Table 10 continued
Key Issues Dumaguete City Bayugan Prosperidad Sibagat
Operational issues
 Low water pressure, high downtime, high x x x
percentage of non-revenue water, and
related operational problems.

3. LGUs
Institutional issues
 Graft and corruption, which significantly lim- x x x
its public resources for local water service
delivery;
 Weak and fragmented organizational x x x x
structures, resulting in inefficient local water
service delivery;
 Gender- and age-insensitive planning x x x x
and implementation in local potable water
service delivery;
 Limited overall support for the BWSAs and x x x
similar rural potable water providers; and
 Limited tie-ups and partnerships with the pri- x x x x
vate sector, NGOs, and other stakeholders.
Financial issues
 Limited financial resources, resulting in x x x x
poor local water service delivery; and
 Low compensations and incentives in x x x x
government, resulting in low personnel
motivation.
Other issues
 Lack of emphasis on sanitation as an im- x x x x
portant public function related to local water
service delivery.

Recommendations
The following emerged as stakeholders’ recommendations to improve local water
service delivery in the areas covered by the study. These need further verification
and study.

Recommendations to address key issues on potable water service delivery in the

study sites
Institutional issues
 High standards must govern personnel selection in local water service
delivery. These must be based on merits and qualifications and not on
political connections to improve institutional capacity. Furthermore,
relevant institutions should conduct trainings and seminars to improve
personnel competence;
120 Philippine Journal of Development 2009

 Local institutions must invest in database and overall knowledge

management. Full computerization of their activities and networking
and coordination with other institutions are needed to build up the
knowledge base for integrated planning and implementation;
 Local legislation should be enacted to regulate certain aspects of
local water service delivery, particularly the small-scale extraction of
groundwater. Such piece of legislation should reinforce the national
law; and
 The private sector and other stakeholders in local potable water service
delivery such as nongovernment organizations (NGOs) must be tapped
not only in the financial aspects but also in overall management and
development,
 Monitoring and enforcement must be strengthened by local
governments, for instance through deputization of the appropriate
stakeholders to address illegal logging, water contamination, and other
related management concerns;

Financial issues
 The private sector must be seriously considered as fund sources for local
potable water service delivery alongside other nontraditional sources
such as development lending institutions, donor agencies, and NGOs.

Other issues
 Distribution of local resources for water services delivery must be
based on equity and fairness to reduce the disparity between areas. This
must be institutionalized through local legislation, if necessary; and
 Workable approaches in providing water services delivery to waterless
barangays must be developed. The potential of BWSAs and other
small-scale water providers must be considered and tapped.

Recommendations to address key issues facing WDs in the sites

For institutional issues
 The WDs should improve coordination with LGUs in local water
service delivery. Regular consultations and meetings with the relevant
LGU units and personnel will help reduce the incidence of service
redundancy.

Financial issues
 The WDs that face difficulty in paying their loans may request loan
restructuring from LWUA or other creditors. They may also seek
 Israel 121
counterpart funding from LGUs. They should also seek sources of
financing outside of LWUA and the government; and
 The WDs should develop cost-effective and indigenous technologies
and innovations to reduce dependence on imported technology and
lower the negative impacts of a high exchange rate.

Price, quality, and accessibility issues

 Since socialized pricing appears to be widely practiced by WDs, these
WDs, with the approval of LWUA, should consider lowering the
tariff rates of low-income households vis-à-vis other users. Another
alternative is to set up more public taps in poor communities;
 The WDs, also upon approval of LWUA, should consider increasing
the rates of higher-income households and the commercial and
industrial users who have better capabilities to pay. This will help
improve cost recovery;
 Proper management of water sources and regular maintenance of
facilities should improve the quality of water produced by WDs.
These districts should invest more in the repair and maintenance of
distribution lines and other related facilities; and
 The WDs can help increase coverage by improving overall customer
service in their areas of operation. Community service activities to
promote goodwill in the service areas will also help.

Operational issues
 The management and technical aspects of operations of WDs must
be improved to increase water pressure, reduce downtime, lower
nonrevenue water, and solve related problems.

Recommendations to address key issues facing LGUs in the sites

Institutional issues
 LGUs must develop a local moral recovery program and an effective
check and balance system that will penalize offending and corrupt
public officials and employees;
 LGUs must reorganize themselves so that, structurally, they can better
plan and implement projects as well as coordinate potable water
service delivery in their areas.
 Gender and age issues must be considered in the planning and
implementation of water service delivery projects. Local water
systems must be user-friendly to women and children;
122 Philippine Journal of Development 2009

 BWSAs and other small-scale water providers must be strongly

supported. LGUs can help by settling disputes among members and
even providing moral support; and
 Tie-ups and partnerships must be established. Joint local water service
delivery projects should be explored to lessen individual costs to
partners and increase total benefits.

Financial issues
 LGUs should provide more of its own funding and prioritize local
water service delivery. Provision of water in areas where it is lacking
or absent should be a public function; and
 LGUs must offer incentives to their personnel to help ensure greater
efficiency. A fair and merit-based promotion system can motivate
lowly paid employees to work better.

Other issues
 Since sanitation is directly related to water provision, it should be
given emphasis by LGUs. It should be an integral concern under their
program of local water services delivery.

CONCLUSIONS AND RECOMMENDATIONS

Among the most important conclusions derived from the analysis of potable
water service delivery in Dumaguete City and selected municipalities of
Agusan del Sur done here are the following:
 Dumaguete City has met national and MDG objectives in terms of
access to potable water while Agusan del Sur and at least some of
its municipalities appear to have a hard time meeting them;
 Price, quality, and accessibility considerations influence water use
and water service delivery in the two sites;
 Household users at best may be willing to pay only a small amount
for the improvement of their potable water;
 Institutional problems are among the most important issues
constraining service delivery of potable water in the two sites in
addition to other concerns; and
 Immediate action, therefore, needs to be done to address institutional
and other issues if the two sites, as well as similarly situated local
sites in the country, are to meet national and MDG targets in local
potable water service delivery.
 Israel 123
The stakeholders in the two sites are the ones on the ground and are
presumed to be more knowledgeable about the problems and potential solutions
involving the potable water sector in their areas. The recommendations proposed
and presented by these stakeholders should be seriously considered upfront.
However, said recommendations need to be further verified and studied. In the
future, studies on local potable service delivery in the two sites may focus on how
institutional problems could be appropriately addressed and how potable water
price, quality, and accessibility could be developed and improved, thus helping
ensure the attainment of the relevant local, national, and MDG objectives.

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