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Water Resources Management Financing in Philippine

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Water Resources Management Financing in Philippine

  1. 1. THE PHILIPPINE COUNTRY REPORT Prepared by: Ms. Yolanda B. Gomez Philippine Water Partnership
  2. 2. WRM FINANCING STUDY IN THE PHILIPPINES Global Water Partnership Southeast Asia Hotel Mi Casa, Yangon, Myanmar October 3, 2013
  3. 3. Presentation Outline • Objective • Methodology • Limitations • Summary of Findings • Way Forward (What Needs to be Done)
  4. 4. Study Objectives • To understand the financing framework/s for water resources management and development • To generate information as to the level of public investments for WRM initiatives • To propose potential financing schemes and mechanisms to increase level of financing
  5. 5. Scope/Methodology/Limitations • Covered water supply, sanitation, irrigation, hydropower and environment • A desktop study including a national consultation workshop, key informant interview and small group discussion; relied on reports from concerned agencies • Flood management (urban flood management) and coastal resources management were not covered
  6. 6. Philippine WRM Overview • Complex and fragmented with more than 30 agencies engaged in WRM • Water resources under threat due to: population growth, urbanization, increasing water pollution, groundwater over extraction, water related disasters • WRM programs and projects come in various forms and categories • Tracking investment is not easy
  7. 7. Philippine WRM Overview Functional Chart of Water Related Agencies Philippines Policy Making DENR NEDA DOF DOJ DOH NHRC Exec Dir, NWRB NEDA Coordination / Regulation NWRB Water Quality & Sanitation Watershed Management Integrated Area Development Data Collection Flood Management EMB DOH BRL EHS LGUs MWSS LWUA-WDs FMB BSWM NIA NPC PAWB LLDA RDCs BOI PEZA RBCO NWRB BRS NAMRIA LWUA MGB PAGASA MWSS NIA DPWH-PMO OCD-NDCC PAGASA MMDA Irrigation Hydro Power Water Supply Research Cloud Seeding NIA DA BSWM DOE PSALM NPC PEMC NAPC-WASCO DOF-CDA DBP DAR DPWH MWSS LWUA-WDs PTA HUDCC DILG-PMO PEZA LGUs DOSTPCAFNRRD ERDB PAF BSWM Fisheries BFAR NATIONAL WATER RESOURCES BOARD
  8. 8. SUMMARY OF FINDINGS
  9. 9. Study Findings: General Policy Framework • WRM is a major responsibility of the government • Financing subsumed as part of the government expenditure program, i.e., budget sourced from the government • Part of the general budget process and procedures • Annual budget and medium term budget • General Appropriations Act • Presence of WRM framework at subsectors level
  10. 10. Study Findings: Budget Sources 3 Major categories: • Public funds – flow through the national or local governments and are raised through general taxation, public borrowings and official development assistance • Private funds - flow directly between government and WRM implementing agencies; involve commercial and development bank lending programs or from private/business sector
  11. 11. Study Findings: Budget Sources 3 Major categories:… • Semi-public/charitable funds – funds in the form of fees and charges derived from use of water resources by foundations, donors, and NGOs
  12. 12. Study Findings- Budget Sources • National government budget – allocation to WRM government agencies ( agency budget or subsidies and allocation to financial institutions for loans) • Local Government budget – internal revenue allocations • Official Development Assistance (ODA) from bilateral and multilateral development partners • Public-Private Partnership (PPPs)
  13. 13. Study Findings- Budget Sources • Irrigator’s fees ( for irrigation subsector) • Market based instruments such as payment for environmental services- application of users’pay principle and polluters’ pay principles
  14. 14. Study Findings: Strategies and Approaches • PPP – a tool promoted by government in forging partnership to finance WRM projects and anchored on the Philippine BOT Law • Market –based instruments- 2 modalities: users’ pay principle in the form of fees ( abstraction fee, raw water fee); polluters fee or environmental users fee system • Co-sharing and leveraging – use of funds sourced from pooled resources of LGUs • Performance-based grants
  15. 15. Study Findings: Examples WATSAN Strategies and Approaches for LGUs • Service contract • Management contract • Lease contract • Concession contract • Joint-venture agreement • Build –Operate-Transfer
  16. 16. Study Findings: WRM Financing and Investment Needs WRM Financing Level – 2006 to 2010 Particulars WRM Policy development and implementation Total Funding (in M US$) 8.28 WATSAN infra development 3,374.67 Hydropower 3,059.36 Irrigation 1,357,65 Environment 1,015.43 Flood control & mitigation 1,719.07 TOTAL 10,552.45 Remarks
  17. 17. Study Findings: WRM Financing and Investment Needs WRM Financing Needs – 2012 to 2016 Particulars WRM Policy development and implementation Total Funding (in M US$) 11.5 WATSAN infra development 120.5 Hydropower 273.3 Irrigation 334.5 Environment 834.1 Total 3,365.6 Remarks
  18. 18. Funding for proposed NWRMO • A very recent study as part of the proposed water sector structuring to address major governance and institutional challenges • Recommendation: reconstitute, elevate and strengthen the current NWRB into a National Water Resources Management Office (NWRMO) • Vision: water security in support of socioeconomic growth thru sustainable WRM • Estimated total budget requirement is PhP 1 B (US$23M) and annual budget of PhP450M (US$10M)
  19. 19. Funding for proposed NWRMO • A very recent study as part of the proposed water sector structuring to address major governance and institutional challenges • Recommendation: reconstitute, elevate and strengthen the current NWRB into a National Water Resources Management Office (NWRMO) • Vision: water security in support of socioeconomic growth thru sustainable WRM • Estimated total budget requirement is PhP 1B (US$23 M) and annual budget of PhP 450M (US$10M
  20. 20. Financing Issues, Gaps, and Concerns Identified • Fragmented financing for WRM programs and project • Inadequate level of WRM financing • Lack of monitoring and tracking mechanism to regularly capture and analyze financing for WRM • Low priority accorded to WRM compared to other subsectors • Lack of comprehensive and common WRM framework
  21. 21. Financing Issues, Gaps, and Concerns • High dependence on national government for WRM financing • Limited use of MBIs to fund WRM programs • Absence of a lead coordinator for WRM planning, monitoring of fund flows and investment planning • Lack of a national account system for WRM • Practice of budget based investment planning rather than investment planning –based budgeting
  22. 22. What needs to done: Way forward • Come up with a clear and comprehensive framework for WRM financing to ensure a robust financing schemes • Initiate efforts towards putting in place a monitoring system for WRM financing
  23. 23. Thank You For the complete report, please visit: www.pwp.org.ph

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