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Water Champion: Dolora Nepomuceno
Managing Water Conflicts in a Lake Basin
November 2004

By Ma. Christina Dueñas
Water Knowledge and Communications Coordinator, ADB

Ms. Dolora Nepomuceno is the Assistant General Manager of the Laguna Lake Development Authority (LLDA), the only functional chartered river basin institution in the Philippines.

The LLDA exercises policy and planning, regulatory and developmental functions over Laguna de Bay. It also has exclusive jurisdiction to issue permits and collect fees for the use of the lake water, and discharge of wastewater meeting the standards.

Ms. Nepomuceno has extensive knowledge and experience in the field of policy planning, project monitoring and evaluation, financial and economic analysis. She has been involved in various technical assistance projects related to water resources management, market-based instruments and community based natural resources management. Her academic work entitled "A framework for Operationalizing a Stakeholders' Convergence Policy on Laguna de Bay" became the basis of a strengthened LLDA partnership with stakeholders and resource users.

Her experience with water rights dates back to her teen years. Her farmer grandfather felt that his farmers association's system for allocation of irrigation water vis-à-vis payment of fees was inequitable. Armed with some knowledge of business and economics, Ms. Nepomuceno encouraged her grandfather to discuss the matter with the association, and devised an allocation and payment scheme based on farm lot size, planted crops (knowing that certain crops would require relatively more water than others), and income and cost streams. The association adopted this proposed allocation and payment scheme.

Since then, Ms. Nepomuceno has worked to enforce LLDA's rules and regulations concerning water rights. She assesses water rights and resource use conflicts that may be due to policy gaps, policy ambiguity, or policies requiring reforms. She also initiates policy studies that form the basis of LLDA reforms. Ms. Nepomuceno is also directly involved with the design and implementation of various water projects and technical assistance designed to transform LLDA into an effective integrated watershed management institution.

How does the Philippines handle water rights?

Progress in the water sector appears to be slow and uncoordinated.

Philippine water-related agencies, and even the National Government, have admitted there are currently no comprehensive and integrated water resources and development planning, management and regulation.

Current efforts to strengthen the National Water Resources Board (NWRB), the agency mandated by the 1976 Philippine Water Code to coordinate water resources management, should be complemented by strengthening the functioning basin-based authorities (like the LLDA) with enforcement powers. Similar river basin institutions in the rest of the 17 major river basins should also be established. Bringing basin organizations into the overall configuration, and defining clearly the relationship between NWRB and river basin institutions, may perhaps help NWRB fulfill its roles, especially where it is weakest, e.g., enforcement (of water rights decisions, among others), mediation and resolution of conflicts in water demand.

Unfortunately, the LLDA remains to be the only functioning river basin institution in the Philippines.

What are the country's main challenges to water resources exploitation and utilization rights?

Aside from the institutional issues earlier discussed, there is still no operational system for water pricing in the economic sense. We always say that water should be treated as an economic good, but the price we all pay as end users of water does not reflect the appropriate resource price. It only covers the cost of the water utilities and their concessionaires in providing the water, and is primarily governed by cost recovery and financial returns. As such, the value of water to us consumers is distorted, resulting in over exploitation and utilization that threatens the sustainability of water resources.

How does LLDA improve the country's water rights situation?

To my mind, LLDA's most significant contributions in improving water rights are in terms of establishing a model for sustainable lake-basin management organization, and introducing innovative approaches and market-based instruments for water resources management, including pollution control and abatement.

One example of such innovations is the Laguna de Bay Zoning and Management Plan (ZOMAP).

In the 1970s, LLDA introduced the fishpen technology to improve the lives of small fisherfolk in the lake. Unfortunately, the returns from the industry were so impressive that many politicians, big capitalists and military generals were lured into the fishpen business, easing out local fisherfolk. Not only was the government unable to deliver prompt financial assistance programs that would enable fisherfolk to set up their own fishpens; it also failed to set policies to protect the lake from speculators. The result was fiercer competition for the lake's fishery resources. Conflicts from this competition escalated, leading to loss of lives and damages to fishpen structures and the lake environment.

The government's response, through LLDA, was to introduce the first Laguna de Bay Fishery Zoning and Management Plan (ZOMAP). The ZOMAP prescribed the criteria, guidelines and procedures for proper allocation of fishpen/cage areas as well as the fishpen fee sharing scheme. Aquaculture operation in Laguna de Bay became subject to ZOMAP and its implementing rules and regulation. Fishpen and fishcage belts were delineated in specific locations in the lake, and the area allocation was determined through the estimated carrying capacity of the lake for aquaculture operation, among other technical and socio-economic-political considerations. As added innovation, we also set the market prices for fishpen areas through a transparent public bidding process.

Pricing of raw water is another of our innovations. Still in its infant stage, this policy is based primarily on willingness to pay. LLDA authorized a private firm, Ayala Land, Inc. (ALI), to abstract raw water from Laguna de Bay at a permissible volume of 300,000 m3 to supply the domestic requirements of its housing subdivision and commercial center in Ayala, Alabang. The rate—initially set at P0.80/m3 with a prescribed automatic adjustment of 10% per annum—is based on ALI's generation, production, treatment, and pumping costs. The current rate is P2.71/m3

LLDA's Board of Directors recognizes the need for a raw water pricing system to promote water resources conservation while generating revenues to support watershed management and environmental protection. However, it also sees the need for further studies on the matter. Thus, LLDA is now engaged in a raw water pricing study focusing on the lake and its tributaries.

How has LLDA helped resolve water rights conflicts in the lake?

We realize that the continuing pollution of the lake waters, and the ensuing loss of resources this entails, is a major source of conflict. As such, LLDA started a River Rehabilitation Program in 1996. What started out as a clean-up activity has evolved into a more comprehensive and sustainable program involving multi-sectoral stakeholder participation.

We organized various stakeholders from each of the lake's 24 sub-basins into River Rehabilitation and Protection Councils or Foundations. We gave each Council P50,000.00 seed money to start their river rehabilitation activities, and taught them fund raising mechanisms. The physical clean-up of the rivers, a component of the rehabilitation plan, is led by the Environmental Army (EA), a volunteer organization consisting of fisherfolks, farmers and other community residents. These volunteers play a vital role in raising environmental awareness among various sectors. As proof of the program's success, it is now internationally recognized as an exemplary community-based environmental program. It has also generated donor support from the World Bank, Asia Foundation, and US Agency for Environmental Protection.

Another of LLDA's conflict management strategies is the Fisheries and Aquatic Resources Management Councils (FARMCs). Through these councils, LLDA fosters strong links with fisherfolk organizations in the lake, providing them with technical and financial assistance.

What improvements does LLDA need to manage water rights better?

I have always advocated the institutional strengthening and transformation of the LLDA into an apex body. Hence, the centerpiece LLDA's current efforts is the development and adoption of an integrated water resources management and development institutional model. We're now strengthening LLDA's capacities on these pressing issues: assessment of the quantity and quality of available water resources under alternative land uses, allocation of raw water and reused water to competing uses and users, development of water supply and demand management strategies and mechanisms to increase welfare in a sustainable manner, and remediation of highly polluted water and sediments in the lake. We're also developing LLDA's capability to leverage its revenue for investments in large scale infrastructure necessary for environmental management and water resources development.

What lessons can you share from your experiences?

The first deals with the politics in water resources conflicts. I have worked with 14 LLDA general managers and I have seen in a few of them how strong political will and political leadership are vital ingredients to successful conflict resolution and mediation. To build political support, will and commitment, we must actively identify "champions" and "change agents" who will not only foster political commitment to lake management and water rights, but also use conflict resolution measures.

It's also good to act promptly, build experience and then fine tune later. My work in the implementation of market-based instruments and conflict resolution strategies taught me this.

Finally, good and shared scientific information promotes wise decisions. At LLDA, we know the importance of using scientific data and management/ technical tools in lake management as basis for well-informed decisions and productive conflict resolution measures. Mutual sharing of good information is a precursor to longer-term conflict resolution.

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