Philippines: Angat Water Transmission Improvement Project

Sovereign Project | 46362-002

The Asian Development Bank is working with the Philippines to modernize Manila's water supply and reduce the risk of water shortages as demand for water rises in tandem with the city's booming population.

Project Details

  • Project Officer
    Hasanah, Siti
    Southeast Asia Department
    Request for information
  • Country/Economy
    Philippines
  • Modality
    • Loan
  • Sector
    • Water and other urban infrastructure and services
Project Name Angat Water Transmission Improvement Project
Project Number 46362-002
Country / Economy Philippines
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3377-PHI: Angat Water Transmission Improvement Project
Ordinary capital resources US$ 123.30 million
Loan 3935-PHI: Angat Water Transmission Improvement Project (Additional Financing)
Ordinary capital resources US$ 126.02 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Urban water supply

Gender Equity and Mainstreaming Some gender elements
Description The Project will secure raw water supply to the 13 million inhabitants of Metropolitan Waterworks and Sewerage System (MWSS) service area, through the rehabilitation of the Angat transmission line. It is estimated that currently each day about 800,000 cubic meter (m3) or 20% of the total potential capacity of raw water is lost due to leakage of the aqueducts. The main components of the Angat transmission line are as old as 50 years, in poor condition, and not in compliance with structural and seismic requirements, risking the partial interruption of Metro Manila's water supply. The proposed financing modality is a Project loan.
Project Rationale and Linkage to Country/Regional Strategy

Provision of water supply and sanitation in Metro Manila (Manila) is the responsibility of MWSS, a government-owned corporation. In 1997, it awarded two concession contracts to private firms for water distribution. MWSS retained responsibility for bulk water supply. The privatization of the distribution services brought about significant improvements in the delivery of water supply services. The serviced population has doubled since 1997, of which more than 90% have 24 hours access. The nonrevenue water level (NRW) of over 60% in 2002 currently ranges from 10 to 40%. MWSS's capacity to fulfill its responsibility of ensuring and securing the availability of raw water to the concessionaries needs to be strengthened by: (i) rehabilitation of the raw water transmission system; and (ii) adopting a comprehensive water safety, risk- and asset management system.

Rehabilitation works. Manila's main water supply source is the Angat reservoir, which provides about 97% of Manila's water supply. Water from the reservoir is conveyed through a system of tunnels and aqueducts to water treatment plants in Manila. The treated water is then distributed to households, businesses, and industries in Manila, and parts of Cavite and Rizal.

The demand on the Angat water source is about 4.48 million cubic meter per day (m3/day), and is slightly decreasing from 2010 to 2015, as a result from the very successful NRW reduction programs of the concessionaires. However, following 2015, the demand will increase rapidly due to expected water supply area expansion and population growth. The demand is expected to increase by 38% in 2025 to 6.16 million m3/day.

Impact Universal access to safe, adequate, and sustainable water supply by 2025.
Project Outcome
Description of Outcome Adequate and reliable amounts of water supplied in Metro Manila
Progress Toward Outcome The construction of Tunnel 4 was completed in 2020. The Aqueduct 7 is targeted for completion in 2024. The outcome of Adequate and reliable amounts of water supplied in Metro Manila is likely to be achieved.
Implementation Progress
Description of Project Outputs

New tunnel constructed

Capacity building support provided

New aqueduct constructed

Status of Implementation Progress (Outputs, Activities, and Issues)

Completed (100%)

Completed (100%)

Completed (100%)

Completed (100%)

Achieved (77%). Required unskilled labor 9,226 manpower. Total unskilled labor hired total

manpower from the source communities and indigenous peoples 7,124 manpower.

Completed (100%)

Completed.

Completed.

Completed.

The capacity building activities was completed in December 2020 and the number of participants was lower (106) than expected.

Expected to start in Q3 2022.

Expected to start in Q1 2023.

Expected to start in Q1 2023.

Detailed engineering design is being prepared. Construction is expected to start in June 2022.

Geographical Location Nation-wide, National Capital Region
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized as 'Category B', given that it is not expected to cause irreversible adverse environment impacts. An environmental impact screening was carried out and an initial environmental examination (IEE) report was prepared. The bid document includes an environmental management plan (EMP) that ensures mitigation of identified environment impacts during construction. The IEE follows a process that complied with ADB's Safeguard Policy Statement (SPS 2009) with supporting justification for Appendix 1, Section 8 regarding protected areas, Philippine laws and regulations, and compliance with the same. The additional financing is categorized as 'Category B' for environmental safeguards. The draft IEE/EMP has been prepared and is now being updated as the DED is completed.
Involuntary Resettlement The original project is categorized as 'Category C', given that there is no expected physical and/or economic displacement and/or land acquisition. The construction and use of the tunnel, which is situated 50 to 200 meters (m) below the ground surface, do not impose any safety risks to the existing assets, establishments, surface structures, and land use. The legal rights of the land above the tunnel belong to the MWSS. The additional financing is categorized as 'Category B' for involuntary resettlement. Even though no land acquisition is needed, 20 structures inside the designated 25 m wide construction area and MWSSs existing right of way will be permanently affected (demolished prior to construction). Losses of residential and commercial structures and crops will be compensated at replacement costs. An Involuntary Resettlement, based on the feasibility study, has been prepared and is now being updated based on the DED (expected for approval in Q3 2022).
Indigenous Peoples The original project is categorized as 'Category B' because the planned contractors work area of 1 hectare is part of the protected Ipo watershed area, which overlaps with an area claimed as ancestral domain by the indigenous Dumagat people. The land is free from any structures, establishments, and vegetation. The projects impact is limited to disturbances during construction. Consultations were held with the indigenous peoples communities living along the tunnel and an indigenous peoples plan (IPP) was prepared, outlining measures to mitigate these disturbances. The IPP was updated following the completion of the DED and impacts and updated socio-economic profile of the Dumagat IPs living in the communities near the project area. Consultation meetings with the National Commission for Indigenous Peoples (NCIP) were held to share the plan proposals and implementation strategy with the Tribal Councils. In line with the Free, Prior and Informed Consent process, a Resolution of Consent was issued by the Dumagat Indigenous Cultural Community (ICC) on 13 December 2019 and the Memorandum of Agreement (MOA) between and among the MWSS, the Dumagat ICC of the Kabayunan Ancestral Domain Norzagaray, Remedios Trinidad and the NCIP was signed on 17 December 2019. Meaningful consultations were implemented with the indigenous peoples in accordance with the SPS. The MOA is an important requirement in securing the Certificate Precondition through the NCIP En Banc Resolution. The following are provided for in the MOA as negotiated: livelihood support, scholarship grants, sanitation facilities improvement, tribal centers construction, ambulance, solar panels, fingerlings, and motorized boats, among others. The PhP20 million to fund the implementation of this community development support program for five (5) years have been transferred to the IP account. The additional financing is categorized as Category C for Indigenous Peoples. No indigenous peoples and ancestral domain areas will be affected by the additional financing. As the implementation of the MOA will be beyond the period of the original financing, it was agreed that the additional financing will cover the monitoring of the MOA implementation.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation The executing agency is MWSS. Project implementation assistance is provided through a consultancy contract with a firm. The consultants was engaged by MWSS in accordance with the Guidelines on the Use of Consultants (2010, as amended from time to time). Equipment and works were procured in accordance with ADB's Procurement Policy (2017, as amended from time to time).
Responsible ADB Officer Hasanah, Siti
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Metropolitan Waterworks and Sewerage System
Mr. Reynaldo B. Vea
[email protected]
4th Floor, Administration Bldg.,
MWSS Complex, Katipunan Road, Balara
Quezon City 1105, Philippines
Timetable
Concept Clearance 13 Sep 2012
Fact Finding 08 Aug 2013 to 20 Sep 2013
MRM 05 Aug 2014
Approval 18 Mar 2016
Last Review Mission -
Last PDS Update 26 Jul 2022

Loan 3377-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Mar 2016 27 May 2016 26 Oct 2016 30 Jun 2022 - 27 Apr 2022
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 134.00 Cumulative Contract Awards
ADB 123.30 25 Jul 2022 66.57 0.00 100%
Counterpart 10.70 Cumulative Disbursements
Cofinancing 0.00 25 Jul 2022 66.57 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Unsatisfactory - -

Loan 3935-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Jun 2020 13 Oct 2020 20 Nov 2020 31 Jan 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 155.82 Cumulative Contract Awards
ADB 126.02 25 Jul 2022 76.22 0.00 60%
Counterpart 29.80 Cumulative Disbursements
Cofinancing 0.00 25 Jul 2022 1.18 0.00 1%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Unsatisfactory - -

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Guarantee Agreement (Ordinary Operations) for Loan 3935-PHI: Angat Water Transmission Improvement Project - Additional Financing Guarantee Agreements Oct 2020
Loan Agreement (Ordinary Operations) for Loan 3935-PHI: Angat Water Transmission Improvement Project - Additional Financing Loan Agreement (Ordinary Resources) Oct 2020
Angat Water Transmission Improvement Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President May 2020
Angat Water Transmission Improvement Project - Additional Financing: Project Administration Manual Project/Program Administration Manual Dec 2019
Angat Water Transmission Improvement Project - Additional Financing: Procurement Plan Procurement Plans Dec 2019
Angat Water Transmission Improvement Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Jul 2019
Angat Water Transmission Improvement Project: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Aug 2018
Angat Water Transmission Improvement Project: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Oct 2017
Guarantee Agreement for Loan 3377-PHI: Angat Water Transmission Improvement Project Guarantee Agreements May 2016
Loan Agreement (Ordinary Operations) for Loan 3377-PHI: Angat Water Transmission Improvement Project Loan Agreement (Ordinary Resources) May 2016
Angat Water Transmission Improvement Project: Project Administration Manual Project/Program Administration Manual Feb 2016
Angat Water Transmission Improvement Project: Report and Recommendation of the President Reports and Recommendations of the President Feb 2016
Angat Water Transmission Improvement Project: Procurement Plan Procurement Plans Jan 2016
Angat Water Transmission Improvement Project: Final Feasibility Report Consultants' Reports Aug 2014

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Angat Water Transmission Improvement Project - Additional Financing: Environmental and Social Monitoring Report (July-December 2021) Environmental and Social Monitoring Reports Jun 2022
Angat Water Transmission Improvement Project: Environmental and Social Monitoring Report (November 2020-June 2021) Environmental and Social Monitoring Reports Oct 2021
Angat Water Transmission Improvement Project: Indigenous Peoples Safeguards Monitoring Report (July-December 2020) Social Monitoring Reports Apr 2021
Angat Water Transmission Improvement Project: Environmental Monitoring Report (July-October 2020) Environmental Monitoring Reports Jan 2021
Angat Water Transmission Improvement Project: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Sep 2020
Angat Water Transmission Improvement Project: Indigenous Peoples Safeguards Monitoring Report (January-June 2020) Social Monitoring Reports Sep 2020
Angat Water Transmission Improvement Project: Indigenous Peoples Safeguards Monitoring Report (July-December 2019) Social Monitoring Reports Apr 2020
Angat Water Transmission Improvement Project: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Apr 2020
Angat Water Transmission Improvement Project: Indigenous Peoples Safeguards Monitoring Report (January-June 2019) Social Monitoring Reports Nov 2019
Angat Water Transmission Improvement Project: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jul 2019
Angat Water Transmission Improvement Project: Updated Indigenous Peoples Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jul 2019
Angat Water Transmission Improvement Project: Social Monitoring Report (July-December 2018) Social Monitoring Reports Jul 2019
Angat Water Transmission Improvement Project - Additional Financing: Resettlement Plan Resettlement Plans Feb 2019
Angat Water Transmission Improvement Project: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jan 2019
Angat Water Transmission Improvement Project (Additional Financing): Initial Environmental Examination Initial Environmental Examination Jan 2019
Angat Water Transmission Improvement Project: Updated Initial Environmental Examination Initial Environmental Examination Nov 2018
Angat Water Transmission Improvement Project: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Angat Water Transmission Improvement Project: Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Jan 2018
Angat Water Transmission Improvement Project: Social Monitoring Report (July-December 2017) Social Monitoring Reports Dec 2017
Angat Water Transmission Improvement Project: Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jun 2017
Angat Water Transmission Improvement Project: Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jun 2017
Angat Water Transmission Improvement Project Initial Environmental Examination Jul 2014
Angat Water Transmission Improvement Project Safeguards Due Diligence Reports Jul 2014
Angat Water Transmission Improvement Project Indigenous Peoples Plans/Indigenous Peoples Development Plans Mar 2014

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
PHI: Angat Water Transmission Improvement Project Advance Notice Archived 16 Sep 2013

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSULTING SERVICES FOR MANAGEMENT AND WORKS SUPER VISION Loan 3377 06 Sep 2018 DOHWA ENG'G CO. LTD. | 438 SAMSEONG-RO, GANGNAM-GU, SEOUL 06178 , KOREA KOREA, REPUBLIC OF Metropolitan Waterworks and Sewerage System 3,160,837.00 3,148,659.00