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Philippine Pilot Project
Philippine Pilot Project
The pilot project areas are within the area coverage of the two concessionaires of Metropolitan Waterworks and Sewerage System (MWSS): (i) Manila Water Company, Inc. (MWCI); and (ii) Maynilad Water Services, Inc. (MWSI).
- Manila Water
The Manila Water Pilot Project was done from May to August 2006. ADB provided a grant of $100,000 to Manila Water to pay for connection fees of the beneficiaries. The beneficiaries have a 3-year pay back period. MWCI installed bulk meters to supply four (4) homeowners’ association (HOA). Billing is made on bulk meter consumption to HOAs. HOAs use street leaders to record household consumption, collect payments or disconnect delinquent customers.
- MWSI Pilot Sites;
The pilot project covered 4 sites: Kabisig, Sitio Batasin II, Sitio Panghulo and Ibayo. The table below shows the location and surveyed number of proposed household beneficiaries:
Table 1:
Number of surveyed beneficiaries
| Beneficiary |
Location |
# of Household |
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| Kabisig |
San Andres, Cainta, Rizal |
410 |
| Sitio Batasin II |
San Juan, Taytay, Rizal |
190 |
| Sitio Panghulo |
San Juan, Taytay, Rizal |
260 |
| Ibayo |
San Mateo, Rizal |
190 |
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1050 |
- Pre-Project Conditions
The identified project sites are poor in physical conditions. Houses were made using wood materials, roads are unpaved, and houses are accessible through small alleys less than 2 meters wide. A typical house in the area ranges from 20 to 30 sq. meters and there are 5-8 members per household in these types of communities.
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Sitio Batasin II , located in San Juan, Taytay, Rizal, has 300 households under the Sitio Batasin II Neighborhood Association. The homeowners' association constructed and managed a piped water supply system, which MWCI provides water by bulk. The 147 households, who are connected to the system, pay PhP15 per m3 while those who are not connected pay PhP100 per m3. Non-piped households pay about PhP 600 for about 6 cum/month.
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Sitio Panghulo : located in Barangay San Juan, Taytay, Rizal. MWCI supplies water by bulk to only 30 households (in 2 out of 20 streets) who pay PhP12 per m3. The Maharlika Homeowners' Association supplies water from a deep well, an elevated steel tank, and distribution lines-water is rationed to about 100 households at PhP50.00 per m3. Non-piped households pay about PhP600 for about 6 cum/month.
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Ibayo : located in Maly, San Mateo, Rizal. The domestic water demand of about 700 families in the area is supplied by a number of pitcher pumps, while drinking water is delivered to households at PhP1.50 per container through an existing MWCI pipeline near the area. Non-piped households pay about PhP600 for about 6 cum/month.
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- Project Results
The project started in May 2006 and was finished in August 2006. The project was inaugurated in October 2006. A total of 1,010 households were the beneficiaries of the project as of May 2007.
| Site |
Beneficiary households |
Average cum consumption /month |
Monthly water payments (Philippine Pesos PhP) |
| Kabisig |
408 |
15.22 |
362.69 |
| Sitio Batasin |
186 |
16.6 |
379.23 |
| Sitio Panghulo |
225 |
13.15 |
337.80 |
| Ibayo |
191 |
10.09 |
300.14 |
The monthly payments are already inclusive of the monthly amortization of the connection charge (3 years) of about 180 pesos/month. Aside from the monthly savings, the consumption of each household has more than doubled the pre –project consumption levels. After 3 years, the connection charges will be eliminated which will then result in additional substantial savings for the household.
In addition, the two hours needed for buying and fetching vended water or waiting for the six hour water supply from deep well in the morning and evening, was virtually eliminated. Random interviews done within the area suggested that women beneficiaries of the project gained additional time in doing household chores and additional jobs. These two changes are just some of the intangible benefits that the communities achieved.
- Lessons Learned
One best practice in the initial stage of this program is the consultation with the community and its community leaders. The consultation introduced the project to the community. Manila Water and the community-based organization explained and gave detailed description of the benefits and their corresponding responsibilities to make the project work.
Compared to an individually connected-low income community, water losses due to illegal connections are much lower in the areas covered by the community based organization. This is due to the fact that they act as “on site” officers of the water system. But its vulnerability is the profit-for-existence approach and know-how capability of the community based organization.
- Maynilad Water
In the Maynilad Water Pilot Project, ADB provided a grant to MWSI. MWSI lent the funds to an NGO to facilitate the delivery of SPWN to service customers with water coming from 2 bulk meters of MWSI. The NGO repays the loan and consumption charges to MWSI. The NGO bills and collects from its customers.
- Pilot Sites
The pilot project site is located in Barangay 167, Llano Road, Caloocan City and consists of 6 homeowners associations broken down as follows:
| Macawili 1 |
235 |
| Macawili 2 |
210 |
| Marcelo & Andelo |
60 |
| FF Zuniga |
94 |
| Zuniga Twins |
51 |
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Total : 650 Households |
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- Pre-project Conditions
Prior to project implementation, the residents of the 6 HOAs buy water from water vendors at PhP25 per drum or up to PhP125 per cu. m. of water. They use their own containers to stock water for everyday use. The water can be used for cleaning, laundry and other household chores but is not safe for drinking. The residents have to boil it first to make it potable and free from harmful bacteria.
Consumption ranges from about 4 cum/mo for single source households paying an average of pesos 426 while multi-source households consume 5 – 8 cum/month paying an average of PhP662/month. Water expenditures range from 3.7 – 5.5% of monthly income.
- Project Results
The construction started in May 2007 and was completed in July 2007. The project was inaugurated last 13 Sept 2007.
As of December 31, 2007, a total of 651 households are now benefiting from 24-hr service due to the project. The breakdown is as follows:
| HOA |
Original Target Beneficiaries |
Actual Connected |
| Marcelo/ Andelo |
60 |
46 |
| Teodora |
0 |
11 |
| FF Zuniga/Twins |
145 |
212 |
| Makawili I |
235 |
217 |
| Makawili II |
210 |
165 |
| Total |
650 |
651 |
There are 2 bulk meters (A & B) of MWSI connected to the project site. The consumption of the two subsystems from August to December 2007 are as follows:
| |
System A (212 HHs) |
System B (439 HHs) |
| Month |
Cubic Meter |
Cubic Meter |
Billing Amount (Philippine Pesos PhP) |
| August |
3,676 |
4,365 |
51,524.79 |
| September |
2,899 |
5,242 |
62,441.64 |
| October |
2,460 |
4,551 |
54,147.35 |
| November |
2,237 |
4,235 |
50,485.09 |
| December |
2,419 |
4,532 |
54,000.65 |
| Total |
13,691 |
22,925 |
P272,599.52 |
The average monthly consumption for System A is 2,738 cubic meter bringing the average consumption per connection to about 12.9 cubic meter per month. On the other hand, System B has an average consumption of 4,585 per month which gives an average consumption per connection of 10.4 cubic meters.
The average monthly payment per HH is PhP471 for System A for a consumption of 10.4 cubic meters and PhP537 for System B for a consumption of 12.9 cubic meters inclusive of the connection amortization. Although the savings are not substantial, the consumption has doubled.
There was no disconnection reported from the start of the project thereby bringing the collection efficiency of 95% with only 5% attributed to delayed payment. The amount collected as connection charges for 651 HH as of end December 2007 is PhP4 million and PhP0.35million as guarantee deposits.
The unaccounted water is reportedly only 4%.
- Project Learnings
The beneficiaries of the new reticulation system took a bigger responsibility of maintaining a reliable water system that delivers supply of adequate potable water. This was attained by homeowners vigilance in looking for illegal connections and the use of peer pressure in convincing those delayed in payment to update their payments.
The urban poor can and are willing to pay for connection charges provided these are on a staggered basis (amortized). The connection payments were made on a 3-year basis and the payment experience to-date has been positive.
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