WORKSHOP 2016 PROCEEDINGS

August 10-12, 2016

Eduardo Aboitiz Development Studies Center

Cebu City, Philippines

Table of Contents

Workshop Background3

Workshop Rationale4

IWRM, Water Governance, and Water Tariffs5

Summary of Cebu Deliberations7

Process Documentation11

Annex A Participants41

Annex B Program Flow46

Workshop Background

Workshop Title

International Workshop on Water Tariffs, Governance and IWRM for Sustainability

Workshop Date and Venue

August 10-12, 2016

RAFI-EADSC Eduardo Aboitiz Plenary Hall

Workshop Organizers

UNESCO Office in Jakarta and Mega Cebu

In collaboration with:

RAFI – Eduardo Aboitiz Development Studies Center

Metropolitan Cebu Water District

Sustainable Development Solutions for Asia & the Pacific

Workshop Participants

The participants for this international workshop included keynote speakers, international experts, national and local stakeholders.

Workshop Rationale

Economic and social development of nations should come hand in hand with the sustainable management of the water and environmental resources. While nations are coping with the economic and social demands through cross-country partnerships in promoting trade, investments, and connectivity, protecting the environmental integrity should be given priority concern as it marks as a crucial driver for sustainable development. Of the many vital natural resources, water should be considered of utmost importance. Not only does it serve a basic necessity of society, it is considered a key driver for economic development as well. Sustainable water management approaches should therefore be integrated with the approaches of other developmental activities. Understanding water issues, including policies, platforms, programs, and practices in water resources management is a key facet towards sustainable water management in particular and sustainable development in general.

The need for sustainable management of water resources is thus of fundamental importance in a rapidly urbanizing city / city-region such as that of Cebu, the most water-stressed city / city-region in the Philippines. Growing twice faster than the country in terms of population growth, Metro Cebu's population reached 2.55M in 2010. On conservative estimates, this population will double in 2050.

Increasing population means increasing demands for services, including that of water. Increasing population also means increasing volume of waste and the likely attendant result of increasing contamination of water sources, both surface and groundwater (already being contaminated by salt water intrusion due to over extraction). These and more issues characterize Cebu, an economic hub in southern Philippines, against the backdrop of constrained natural (e.g., water) resources. Cebu therefore provides a practical „test bed‟ for analysis and solutions towards sustainable water management.

IWRM, Water Governance, and Water Tariffs

Water Governance has been described as “…the range of political, social, economic and administrative systems that are in place to develop and manage water resources and the delivery of water services, at different levels of society.” Good governance mainly depends on the quality of leadership, the strength of the institutions and how efficiently, effectively, sustainably, and transparently the resources are managed by sector institutions and main stakeholders. Rigorous technical, financial, economic and institutional assessments need to be undertaken in support of the overall development plan of Mega Cebu.

In the Philippines, there are about thirty different national agencies involved in planning, regulating and implementing the delivery of water and sanitation services and the care of the country’ water resources. In terms of water providers, there are at least seven types, namely: water districts, large scale private operators, local government units, community based organizations, NGOs, small scale independent providers, and household providers. This situation of multiple and diverse organizations at various levels render a rather chaotic water governance scenario in the country, often resulting in heterogeneous access levels and quality of water service and unregulated and unmonitored resource extraction and utilization, among others. The governance and institutional framework hence is a focal dimension in water resources management.

Water Pricing and Tariffs: A water tariff is the price assigned to water supplied by a public utility generally for both freshwater supply and wastewater treatment. The term is also often applied to wastewater tariffs. Water and wastewater tariffs determine the conditions of service and the monthly bills for water users in various categories and classes. Tariffs are often set by a regulatory agency for the appropriate catchment, purification and distribution of freshwater, and the subsequent collection, treatment and discharge of wastewater.

In July 2010, the UN General Assembly proclaimed access to safe drinking water and sanitation as a human right. At the same time, water and sanitation are also economic goods. There is a need to get a balance of these two aspects of water. Pricing water fairly and equitably is important to maintain, sustain, and expand the water and sanitation system. Revenue from water charges does not even cover operation and maintenance of water utilities, let alone (re)investment for infrastructure. Water and wastewater tariffs determine the level of revenues that service providers receive from users in centralized or semi-centralized systems for the appropriate treatment, purification and distribution of freshwater, and the subsequent collection, treatment and discharge of wastewater. In many countries, consumers either pay too little for water services or the price of water services is too high for the income of the majority of the population. Water pricing thus is an important economic instrument for improving water use efficiency, enhancing social equity, and securing financial sustainability of water utilities and operators.

Integrated Water Resources Management (IWRM): Aiming to ensure the coordinated development and management of water, land, and related resources by maximizing economic and social welfare without compromising the sustainability of vital environmental systems, IWRM has been adopted worldwide. Despite the general acceptance of IWRM and inclusion of its principles into national policies, strategies, and laws, there are still questions about how to apply and use it for better water governance and equitable water pricing and tariffs at the local level.

The implementation of IWRM principles is widely accepted as a tool for better water governance and equitable water tariffs. However in some countries, IWRM remains a challenge for the whole water sector because of the required legal, institutional, and administrative changes involved. Revising water policy to improve water resources management and determine equitable prices for water supply services in Cebu demand good water governance mechanisms with specific focus on surface and groundwater catchments, from which water is abstracted for a variety of conflicting purposes (like municipal supplies for residential, institutional, and commercial users, manufacturing and industrial use, mining, irrigation of agricultural land, fishery activities, wetland reserves and hydropower production).

There is a need to analyze the overall current status of water resources management in Cebu noting the many issues, to identify the gaps and recommend solutions in implementing good water governance, in integrating IWRM, and in determining equity in water tariffs.

Summary of Cebu Deliberations

Background

The experts and participants to the "International Workshop on Water Tariffs, Governance and IWRM for Sustainability" recognize that economic and social development of countries should come hand in hand with the sustainable management of the water and environmental resources. Taking into account the fact that the need for sustainable management of water resources is of fundamental importance in a rapidly urbanizing city / city-region such as Cebu, which is one of the most water-stressed city / city-region in the Philippines. It is growing faster than the country in terms of population growth. Metro Cebu’s population reached 2.55M in 2010 and this population is expected to double in 2050. Increasing population means increasing demands for services, including that of water. Increasing population also means increasing volume of waste and the likely attendant result of increasing contamination of water sources, both surface and groundwater (already being contaminated by sea water intrusion due to over extraction). These and more issues characterize Cebu, an economic hub in southern Philippines, against the backdrop of constrained natural (e.g., water) resources. Cebu therefore provides a practical ‘test bed’ for analysis and solutions towards sustainable water management.

The experts and participants also recognize that water governance, suitable water tariff and integrated approaches are important tools able to support Metro Cebu and other urban areas the management of water resources and water supply systems. Furthermore there is an important need for clearly identifying the accountable organizations responsible for coordination and regulation, planning and policy formulation, implementation, monitoring & evaluation, and the establishment of a real integrated mechanism on water resources, bringing together decision makers, managers, water professionals, experts from academies, practitioners and all other stakeholders. This is particularly important in view of all the challenges that needs to be addressed and the expertise needed for each individual challenge.

Key Observations

The 3-day International workshop on water tariffs, governance and IWRM for sustainability has highlighted some of the main issues related to developing countries and implementing the most appropriate approaches to water pricing and tariffs, integrating water governance, and inducing a sustainable water management. The speakers presented analyses of the basic economics and some important theoretical insights of water tariffs and discussed the main four inter-correlated principles of sustainable water pricing including full-cost recovery, economic efficiency, equity and administrative feasibility and the trends and challenges of their actual implementation in the water pricing policy of Australia, Malaysia, Portugal and Philippines. The day ended with a review of opinions, personal conclusions and recommendations on the actual opportunity, effectiveness and role of efficient water pricing in fulfilling the goals of sustainability. While discussing the sustainable framework for water tariffs and water pricing policies to apply in urban areas. The participants emphasized the following major principles and related aspects:

· Relevance in supporting urban water policies on clear and steady principles and instruments:

· Integrated Water Resources Management (IWRM)

· Political willingness (commitment)

· Good coordination among agencies, organizations and institutions

· public awareness and participation

· Robust regulatory and legal framework

· Coordination with land use planning and territorial policies

· Consideration of global changes (demographic, economic and climate) in the short, medium and long run

· Good governance

· Identification and establishment of the main accountable organization responsible for coordination, planning, development and implementation of policies, programs and projects

· Transparency of government objectives and public policies

· Decentralization and delegated governance systems clearly set in place to assure social awareness and participation

· Development of new water sources

· Sustainable framework for financial instruments:

· Promotion of eco-efficient water infrastructure for urban development

· Careful diagnostic of all dimensions and factors to implementing comprehensive water tariffs with provision of safety nets for the poorer and the economically vulnerable in urban areas

· Financial instruments to be diversely applied along with educational and participative programs to all levels of users (Public Administration, Cities, residents, hospitals, schools, industries, commercial uses, small scale agriculture)

· Water prices be determined after thorough discussion and transparent diagnostic of the economic, social and environmental dimensions of the functions assured by all the urban water infrastructures

· Incentives for water saving and eco-efficiency targeting different users

· Clear understanding of the externalities and different components of water services costs and transparent allocation of these costs when fixing the final prices of water delivered

Challenges and Recommendations for Integrated Planning and Management

To achieve Integrated Water Resources Management (IWRM) and to ensure sustainability of the resource in Metro Cebu and other regions, there is need to review the existing water resources management structures (institutional & governance, including policies), & identify the limitations and come out with a framework for action for securing Metro Cebu’s / other regions water future.

The experts and participants to the International workshop on Water Tariffs, Governance and IWRM for Sustainability came out with the following actions and recommendations:

1. Synthesize existing data, including data needs and knowledge gaps for addressing issues related to critical water and environmental systems and how IWRM and water governance could ensure cost efficiency and environmentally sound options for sustainable water management;

2. Build on best practices and approaches of success stories in water governance and water tariffs to come out with suitable mechanism for improving water supply, water services and ensure social equity;

3. The participants call UNESCO to support Cebu in the promotion of integrated approaches with existing and new UNESCO centres and Chairs by addressing the complexities and interrelationships of landscape and water resource problems;

4. Develop South-South Cooperation, specifically with other countries in Asia and the Pacific and more specifically with ASEAN countries on water research, water education and water management;

5. Promote collaboration between the different water stakeholders and develop tools to ensure strong collaboration to synthesize and synergize the efforts of the different partners;

6. Water management policies and regulations are in place in Cebu but real time resource monitoring data show that current resource management is not sustainable. Therefore, there is a need for further monitoring and evaluation of the present framework to identify the gaps.

7. Undertake regular capacity building, water campaign and educational activities to ensure strong advocacy at all levels for the use and appropriate management of all sources of water;

8. Take actions to reduce pressure on groundwater resources to reduce the intrusion of sea water and ensure the sustainability of the resource;

9. Revisit the water tariffs in light of the main four inter-correlated principles of sustainable water pricing (full-cost recovery, economic efficiency, equity and administrative feasibility);

10. Promote conjunctive use and management of surface and groundwater, including protection and management of recharge areas of local aquifer.

11. Promote investments for alternative new sources of water, e.g., dams, desalination plants

12. Take advantage of the reduction of the costs in the desalination technology and the availability of new technologies worldwide to diversify the sources of water resources

13. Review the existing legal, institutional and policy framework related to water in Cebu and other regions to come out with a more comprehensive and integrated framework

14. Promote investments for appropriate recycling, treatment and water use efficient systems

15. Explore Public-Private Partnerships and/or Joint Venture Agreements where the capacity of water service providers is limited

16. Establish clear accountabilities of key government agencies (including NWRB, LWUA, water districts, etc.), in water resource protection, utilization, treatment, management & planning, supply & development and performance monitoring.

Process Documentation

August 10, 2016

Workshop Opening Ceremonies

Welcome Remarks: Mr. Roberto Aboitiz, President, Ramon Aboitiz Foundation, Inc. (RAFI) and Co-Chair, Metro Cebu Development and Coordinating Board (MCDCB)

Mr. Aboitiz welcomed all participants to the workshop, and encouraged everyone to learn more about the various water issues in Cebu and in the country. He urged the participants to exchange ideas, come up with plans and decide on directions they are going to take on issues related to potable water. Mr. Aboitiz, likewise thanked the resource teams who will share their expertise and UNESCO for responding to the appeal for assistance.

Opening Notes: Prof Shahbaz Khan, Director and Representative, UNESCO Regional Science Bureau for Asia and the Pacific, Jakarta

After acknowledging the speakers, organizations and guests present in the workshop, Prof Khan talked about the importance of water and water security in the Asia Pacific region noting the increasing demand of water. He also talked about the importance of the workshop for UNESCO. Prof Khan brought up the idea of having a partnership with various stakeholders to move in the area of water research, water education and water management.

Opening Speeches:

■ Sec. Michael Dino, Presidential Assistant for the Visayas (OPAV)

Sec Dino’s speech was delivered by Mr. Mike Pato of the OPAV. Sec Dino emphasized that development must run along sustainable water and environmental resource management. He also observed degradation of our water resources, and saw firsthand the lack of water among the poorest of the poor in Samar. Sec Dino identified water as one of the top 3 issues in Cebu. He underlined OPAV’s role in bridging the gap between the people and the President of the Philippines.

■ Sec. Mark Villar, Department of Public Works and Highways (DPWH) and Chair, Local Water Utilities Administration (LWUA)

Sec Villar’s speech was delivered by Ador Canlas, DPWH Regional Director for Region 7. Sec Villar noted the El Nino phenomenon in the Philippines resulting to water shortage and drought. His department has done measures to address water issues in the country including: (1) the provision of rainwater collection systems in public school buildings and public markets, (2) the planning and implementation of water resource development systems, (3) implementing the Tourism Water Supply Infrastructure program and Water Resource Utilization program in partnership with other government agencies. DPWH understands that sound water infrastructure is critical for IWRM to prosper. To streamline IWRM process within DPWH, an IWRM team was created.

■ Hon. Hilario P. Davide III, Governor, Province of Cebu, and Chair, MCDCB

Hon. Davide’s speech was delivered by Archt. Florentino Nimor, Provincial Planning and Development Officer. Hon. Davide emphasizes the importance of water as a basic human need especially in a growing economy. He mentioned that water districts supply water to the people, and there is a projected water supply deficit in 2020. Cebu province has been working with various water supply systems in the LGUs. During the drought that happened this year, the province activated the Provincial Water Resources Authority. Hon. Davide noted the need to identify gaps to integrate water resource management, and implement solutions to water issues in the province.

After the opening ceremonies, the workshop took a break. All participants proceeded down to the ground floor for a photo session. There was also a press conference after the photo session while the other participants took their morning snacks.

Keynote Sessions

This series of sessions was facilitated by Alain Michel Tchadie, Consultant for Water and Environmental Sciences, Regional Science Bureau for Asia and the Pacific of the UNESCO.

Keynote 1: Prof. Soontak Lee, Governor, World Water Council

Session Title: IWRM for Water Security in Asia and the Pacific

Presentation included an introduction to the Sustainable Development Goals (SDGs) with emphasis on SDG 6 (Ensure availability and sustainable management of water and sanitation for all) adopted by countries in 2015. He emphasized that SDG 6 is the connector to the other SDGs and is important for most SDGs. Water security is an increasing concern arising from population growth, droughts, floods, degradation of water quality, and climate change. Prof Lee introduced sustainable water management, its importance and the different key concepts in sustainability. Prof Lee also introduced the concept of Integrated Water Resources Management (IWRM), the IWRM planning cycle and implementation, the IWRM spiral model. He notes that IWRM approach in each area/country is unique and different. For leveling off, he also defined water tariffs and water governance. He presented a session during the World Water Forum (WWF) 7 on financing water services through the 3 Ts (Tariffs, Taxes, and Transfers). Prof Lee also introduced the thematic structure for WWF 8. Lastly, Prof Lee emphasized that water tariffs, governance and IWRM are not exclusive from each other.

Keynote 2: Prof. Shahbaz Khan, Director and Representative, UNESCO Regional Science Bureau for Asia and the Pacific, Jakarta

Session Title: UNESCO HELP and Ecohydrology Programs for IWRM and Sustainable Water Resources Management

Prof Khan’s session focused on introducing UNESCO and its HELP and Ecohydrology programs. Prof Khan started by introducing the development challenges in the Asia Pacific region including water quantity and quality and climate shift. Among other issues the region is facing are the faster rate of sea level rise than previously predicted and the major water risks in the Philippines (e.g. drought and flood). UNESCO’s thrusts, structure, offices and programs were also presented. Prof Khan noted that there is no UNESCO water center in the Philippines. He introduced the International Hydrological Programme (IHP) and its various themes. IHP is aiming to put water in the minds of people, and sees the importance of bringing different stakeholders together in IWRM. There are also IWRM guidelines at the river basin level developed by UNESCO which can be done in Cebu. Water is at the heart of sustainable development, and is important in achieving the other SDGs. There are many areas that UNESCO can help the Philippines with but the organization works in terms of partnerships with stakeholders including the government.

Keynote 3: Dr. Olivia la O’ Castillo, Member Ex Officio, UNSGAB

Session Title: Challenges of Water Governance in the Philippines

Dr. La O’ Castillo’s presentation is a supplement to the previous 2 keynote sessions. She said that science has to be used to solve the challenges in the world. She talked about the water distribution in Philippines, citing an instance wherein the National Irrigation Administration preferred to give water to households than to the farmers. The local government units should do their share. She noted that there was an IWRM project in the Philippines funded by the Asian Development Bank. However, there was no more budget for implementation. Previous efforts to help clean river basins and tributaries were also fragmented and stopped due to change in priorities. She said we should look into ways to help farmers irrigate better using less water, and advocate for crops that do not use too much water. She shared that she is not amenable to using paper bags in groceries instead of plastic, and she is advocating for proper resource management instead. She said that water security legacy program is very important and should be done by politicians. IWRM is doable but everyone has to contribute. We should recycle water, and she shared that in Korea and Japan, they recycle their water 6 times. Right now, the Philippines does not have data on how much water is used by the urban area and by the agriculture sector. Enforcement of laws in the Philippines is the weak link. She presented the 3Rs + 1 (Reduce, Remedy, Re-use, Regulate) framework in addressing water pollution and quality. In Philippines, water supply is decreasing while the population is increasing. She presented the elements of the water problem and water dilemmas in the country and how we can address them (learning from what other developed countries have done).

Open Forum

· Maria Lourdes Mariano of the People’s Action for Sustainable and Equitable Development asked Prof Khan what the advantages and benefits of having a hydrological center in the Philippines are and what would make the establishment of such a center possible. Prof Khan said that the center can bring funding from people who are interested in the UN system. It can also formalize and bring about partnerships from the international community. However, Prof Khan said that it’s not easy to establish a hydrological center. Its establishment should also come from the local stakeholders in the area. Dr. La O’ Castillo suggested that maybe UNESCO can do what they did in Davao wherein instead of establishing a center, UNESCO had a point person. She said this can be done with the help of RAFI and UNESCO can work with the different sectors of the society. Prof Khan agreed that it is possible.

· Fe Walag of the University of San Carlos Water Resource Center said that UNESCO’s IHP has established a water resource center in USC about 41 years ago. However the center needs strengthening. Prof Khan thanked Walag for the information as it is not available to them. He said that UNESCO can help bring the center to the next level.

· Maria Lourdes Mariano commented on the importance of an inter-LGU water governance and on the need of having a strong information advocacy for the primary users (agriculture and household).

· A question was raised on how to synchronize/synergize efforts of different institution and agencies on water. Dr. La O’ Castillo shared that there was a water czar during the Aquino administration but it was still difficult for him to manage the agencies. Mr. Roberto Aboitiz asked who the water districts are accountable to. He said that there is a need to have a consolidation of accountability and responsibility.

· Camilo Garay of the Philippine Society of Environmental Planners raised the need to maximize the use of surface water to prevent saltwater intrusion. Mr. Aboitiz said that it is predicted that all wells in Cebu will become saline.

· Francisco Silva Pinto commented that the SDGs on water are so ambitious and asked Prof Lee how he sees developing countries like the Philippines about this. Prof Lee said that UN member states are already doing something to achieve the SDGs and each organization should decide how to adopt the SDGs.

· Antonio Balang of GIZ asked if there is a study which shows the decline of agricultural production in every increase of temperature. Dr. La O’ Castillo commented that climate change should not be blamed for the increase in global temperature and said that it’s the people who are not doing their part. She emphasized the need to look more into action-oriented, good programs to help water security.

· Mel Bernil of Rio Verde Water Corporation asked Prof Lee if the World Water Council (WWC) can promote new technologies, like desalination, which makes access for water resource easier. Prof Lee that it’s important to look for ways to fund desalination technique because it is expensive. He said the WCC are collecting different science and technology techniques to address water issues. They can bring the techniques to developing countries.

Case Studies and Experiences from Other Countries

This series of sessions was also facilitated by Alain Michel Tchadie, Consultant for Water and Environmental Sciences, Regional Science Bureau for Asia and the Pacific of the UNESCO.

Dr. Tariq Rana, Assistant Director, Water Resources Planning, Policy and Planning Division, Murray - Darling Basin Authority

Session Title: Water Price and Access to Water in Australia

In Dr. Rana’s presentation, it was presented that water does not know state boundaries. The drivers in water scarcity and shortage are the increase in mean temperature, decrease in mean rainfall and increase in population. In the world, Australia is the second highest user of water per capita per day. Dr. Rana shared that water reform in Australia didn’t happen overnight – it took them years to do it (starting in 1994 with the Council of Australian Government until recently in 2012 where the Basin Plan has been developed). Australia started its water reforms with knowing how much water they have and knowing how much water they need. He said that to prevent saltwater intrusion, the groundwater level must be maintained higher than the seawater level. Through Australia’s National Water Initiative, the states and territories agreed on key items to achieve urban water reform. Dr. Rana presented the differences between water, electricity and gas industries. He said that people should understand the reason for water reforms and water tariff. He presented the four main objectives in setting water tariffs: cost recovery, economic efficiency, equity and affordability. There are 2 main types of water tariff options used in Australia. Aside from water tariff, a sewerage tariff is also imposed. Australia has varied sources of urban water (e.g. surface water, groundwater, desalination, recycled water, bulk water). The government put restrictions to water use resulting to drastic decrease per capita household consumption in all states. The focus is on an integrated urban water cycle (not just drinking water). There should be a nationally consistent water regulation. The needs of customers must drive reform, not just ideology.

Mr. Francisco Silva Pinto, Researcher, CERIS

Session Title: Water Tariffs and Governance: Institutional Frameworks and Planning for Water Resources Management

Mr. Pinto started his presentation by comparing the MDGs and the SDGs – SDGs have more targets and indicators than the MDGs. He presented the different kinds of tariff structures and the variable at play in each structure. He also presented a case study on the tariff recommendations done for the Portugeuse water sector. He emphasized that water governance is important in choosing the suitable water tariff. He discussed the multiple criteria model which shows the different factors to take into account in getting the suitable tariff. It is important to determine all costs involved in providing water to select the appropriate tariff design. He said that policies are context specific and they have a useful life – variables are always changing and it is important to adapt. It is also important to control the tariff outcome and to model uncertainty. Lastly, he presented the different tariff structures used in Portugal, Cape Verde and Qatar.

Prof. Susana Neto, Convener, OECD Water Governance Initiative

Session Title: Good Governance for Urban Water Management and Policy

In Prof Neto’s presentation, it is shown that more people are living in urban and mega cities. Her presentation focused on (1) the relevance of basing urban water policies on clear and steady IWRM principles and instruments, (2) the integration and good governance, and (3) the sustainable framework for financial instruments. The rise in urban population resulted in water quality and quantity issues, the shift of water resources from agriculture to urban use, and the drawing of freshwater from increasingly distant watersheds. She also presented statistics on water crisis. There is a need to develop capacity building on technological tools and organizational development. Various case studies on water governance in different parts of the world were presented. From these case studies, it is noted that water needs is constantly stressed by changing contexts and impacting external factors. Water management are forced to adapt to new conditions. For urban areas, it is important to conduct water audits, study water usage, implement IWRM and look at urban watersheds. Prof Neto presented 4 conclusions: (1) there is a low probability of success if water management decisions are not integrated in other territorial policies, (2) look at the broader picture in water management, (3) there is a need for a multi-level integration of planning processes and of policies, (4) interdisciplinary knowledge (through different institutions) is important to address complex water issues, (5) water management is both a social and political issue.

Open Forum

· Maria Lourdes Mariano asked the speakers where to start in making water reforms. Dr. Rana said in Australia, they started with knowing the water they have and the minimum demand for water. He said it’s also important to know the quality of water that is needed. Dr. Rana shared the presence of rain harvesting tanks in houses, and the rainwater harvested are used to flush the toilet and wash clothes. He said it is important to educate the people on the importance of saving water. Prof Neto said there must be a political decision on water management, and warned not to mix politics with the instruments and operational options. She said it’s good to strengthen and improve current processes than starting back from zero. She also said that the LGUs should be given more power, and the government must regulate water consumption by the different sectors of the society. Prof Neto recommend to look into diverse sources of water.

· Archt. Socorro Atega of Cebu Uniting for Sustainable Water (CUSW) asked on the possibility of having 2 schemes of water providers (one for business and one subsidized for the basic needs of the households). Mr. Pinto said that it’s important to have the proper institutional settings because without it, things can go wrong very easily. Mr. Tchaide shared the practice of storing water in tank in Indonesia.

· Babit Ybanez of CUSW inquired if there is a model that has a competitive tariff approach. Mr. Pinto shared that in Scotland, there is a company that provides for non-domestic users and there are also retail companies.

· Camilo Garay of the Philippine Society of Environmental Planners requested somebody to explain the existing water laws in the Philippines. Someone answered that there’s the Clean Water Act of 2004 and the Water Code of the Philippines. NWRB which is under DENR controls water usage.

· Somebody opined that the government should not interfere with water districts since this could be the start of political manipulation. Prof Neto said that the problems are the same everywhere and it’s not unique to the Philippines. She said it’s good to integrate water management in our existing policies.

Case Studies from ASEAN Countries

This series of sessions was facilitated by Dr. Tariq Rana, Assistant Director, Water Resources Planning, Policy and Planning Division, Murray - Darling Basin Authority.

Prof. Nor Azazi Zakaria, Director, REDAC, Universiti Sains Malaysia

Session Title: Water Governance and Urban Storm Water Management in Malaysia

Prof Zakaria's presentation focused on the global issue on water resources management including problems in water management and the impact on climate change. He presented the relationship between the water issues and the internal (organization) and external factors (environment and globalization). Majority of the water used in Malaysia is from surface water - way higher than groundwater. Irrigation also uses more water than the domestic and commercial industries. He also showed pictures, videos and news articles highlighting flooding, flashflood, pollution and water scarcity in the country. In 2000 and 2012, the Malaysian government published the Urban Stormwater Management Manual for Malaysia. Prof Zakaria also shared successful applications of bio-ecological drainage system used in hospitals, clinics, and other infrastructure in Malaysia. Due to the increasing demand for water, they see that there is a need to develop groundwater. Prof Zakaria also shared the water tariffs in Malaysia. Lastly, he invited everyone to the 37th International Association for Hydro-Environment Engineering and Research World Congress.

Dr. Putu Santikayasa, Department of Geophysics and Meteorology, Bogor Agriculture University, Indonesia

Session Title: Water Governance and Urban Storm Water Management in Malaysia

Dr. Santikayasa showed the following observations and projections in climate change using maps generated by models: (1) increasing surface temperature, (2) higher average precipitation, and (3) higher ocean heat content. Human influence on the climate system is clear. He also presented the hydrological impact framework. It is also shown that flood will be more frequent in the ASEAN region. He also presented the different global climate models used to model the impact of climate change on water resources. Case studies in Indonesia, Vietnam and Lao PDR were also presented. From the case studies, it was concluded that (1) climate change is unavoidable as well as uncertain, (2) documentation and dissemination of the impacts of climate change on water is very important, (3) collaborative interagency research is needed. There is also a need to improve the ability to assess the potential response of precipitation and hydrological extreme to climate change, the region specific impact of climate change, as well as to characterize and communicate uncertainties in each analytical stage.

Open Forum

· Alain Tchaide asked Prof Zakaria how to change the policy or encourage people to use surface water than groundwater. Prof Zakaria said that to use surface water, there should also be plenty of treatment plants. He noted that although surface water is cheaper, it is not sustainable during flooding or drought. He suggested to use both surface and groundwater, and suggested to have a champion who can properly convey messages.

· Alain Tchaide asked Dr. Santikayasa how he predicts the groundwater resources in Indonesia in line with climate change. Dr. Santikayasa said that groundwater itself does not have a direct impact on climate change. However this needs further study. He also shared that Jakarta is experiencing subsidence. Dr. Rana said that they have done analysis of 100 years data (groundwater recharge vs rainfall) in Australia and found out that there is not much direct impact of climate change. But he notes that extremes (floods, flashfloods) are changing. He said that what they’re seeing is that recharge is not changing because of climate change.

· Antonio Tompar of Mactan Rock Industries commented that people should be educated on desalination as its cost is now cheaper compared to 5 years ago. Prof Zakaria said if the process is cheaper, then we can proceed with this process. However, he is still confused as to why the current price of water in the Philippines is already high. He recommended reforming the water resources.

· Antonio Balang og GIZ inquired if there is a study which shows that amount of the water table is decreasing with an increase in water temperature. Dr. Santikayasa said that he cannot give exact values because water recharge areas have to be analyzed.

August 11, 2016

Technical Session on Challenges of Water Governance, Water Tariffs in Cebu, Philippines

Dr. Sevillo D. David, Jr., Executive Director, National Water Resources Board (NWRB)

Session Title: Integrating Water Governance and IWRM into Metro-wide Planning and Development of Metro Cebu

Dr. David presented the Philippines’ profile including our water resources. It was shown that the country has a total water resource of 146 billion cubic meter. Currently, there are thirty (30) government agencies and offices concerned with water resources development and management responsible for their own sectoral concerns. The creation of NWRB, its mandate and functions was also discussed. Dr. David also shared the water threats and issues. Cebu’s water situation (groundwater availability and water allocation) and the list of LGUs which exceeded the safe yield in relation to groundwater availability were also presented. LGUs are water stressed mainly because of rapid urbanization and economic development, noting that most of the LGUs use groundwater as a source of water supply. Lastly, the key issues of Cebu’s water supply, and the present and future initiatives of NWRB was also presented.

Ms. Myrra Montano, Division Manager, Local Water Utilities Administration (LWUA)

Session Title: Water Price and Tariffs for Improving Water Supply, Water Services and Social Equity in Metro Cebu

Ms Montano’s presentation focused on the Provincial Water Utilities Act of 1973 – known as the LWUA Law. She also discussed the tariff setting, tariff structure and challenges for Mega Cebu. Furthermore, Ms. Montano also cited possible strategies to the challenges that will be facing in the future. She also shared the recommended tariff strategy. Lastly, the Key Performance Indicators and commitments of LWUA was also shared in the last part of the presentation.

Archt. Socorro Atega, Executive Director, Cebu Uniting for Sustainable Water (CUSW)

Session Title: From Fragmented to Integrated Management of Water Resources in Cebu

The discussions in this session focused on IWRM, its impact and importance. Archt. Atega shared present initiatives/strategies using the framework and context based on the IWRM approach. Present rapid urbanization problem is also cited as one of the problems in Cebu. Archt. Atega also presented the ongoing and past projects to solve issues and problems water management.

Engr. Lemuel Canastra, Metropolitan Cebu Water District (MCWD)

Session Title: Water Resources and Supply Services in Metro Cebu

The presentation started with illustrations about Metro Cebu’s water resources and water situation. This was followed by MCWD’s water supply, services and scope of work. Engr. Canastra also showed the present ground water extraction and salinity conditions within Metro Cebu, emphasizing that MWCD may not be able to supply possible water if these issues are not addressed.

Open Forum

· Dr. Rana asked what the missing link is considering that the Philippines (including Cebu) is experiencing saltwater intrusion. Ms. Fe Walag of USC WRC said that seawater intrusion is only present in highly urbanized areas. She also emphasized the need to conduct a study and inventory to know the extent of saltwater intrusion in Cebu as the last inventory happened in 1990. Dr. David said that Cebu has to find ways to prevent the further decline of its water supply. He said alternative water sources can also be explored. The academe can also be tapped to do research and the government can provide information. Archt. Atega of CUSW pointed out that the Comprehensive Land Use Plans do not define where the recharge areas are. Wetlands are also lost to subdivisions and to some other uses. She said there are interventions to address water supply in Cebu.

· Babit Ybanez of CUSW asked NWRB if they can charge corporations who have deep wells for water extraction, noting that these corporations can subsidize Cebuanos. He also need there is a need to amend the present Water Code. Dr. David said that NWRB is not allowed to collect fees other than those dictated by current laws. He said these laws should be changed first. Dr. David said they are currently reviewing the Water Code and they will come up with recommendations for amendments including the possibility of charging raw water fees to various extractors of surface and groundwater.

· Antonio Tompar of Mactan Rock Industries Inc. commented that the public officials who should elected are the ones who can address our local problems.

· Fr. Margarito Alingasa of CUSW shared that some private well extractors who apply for a small pipe diameter (1 in) actually increase the diameter later on. Dr. David said households don’t need a water permit. However, wells for industrial/commercial use need water permits from NWRB. Fr. Alingasa pointed out that NWRB is not doing monitoring and inventory of these domestic pumps. Dr. David admitted the current constraints of NWRB in its presence in different regions other than their main office. He however said that they are currently looking into the creation of regional offices. Right now, NWRB is coordinating with the Water Resources Utilization unit of the Department of Environment and Natural Resources to implement some of the mandates of NWRB.

· Engr. Fortunato Sanchez, Jr. of MCDCB commented that there is no government support for the creation of new dams for Cebu, compared to Bohol which already has 3 big dams.

· Jon Urban of Manila Water Company said they are conducting the study on the updating of surface water sources in Cebu. He notes that one challenge in maximizing the surface water source is the relocation of informal settlers. Someone commented that it’s not easy to drive away informal settlers because they are also residents of Cebu. He said we should also look for other ways of addressing water issue than the creation of dams. Ms. Evelyn Nacario-Castro said that many considerations are taken into account and looked into.

· Franciso Silva Pinto asked about the current desalination projects in Cebu. Engr. Canastra said they have a 5,000 cubic meter capacity plant in Mactan. However, he notes that the water processed by desalination costs thrice than the current value.

· Ms. Evelyn Nacario-Castro summarized the discussions which took place. She mentioned the recognition on the work that has already been done and the needs that still needs to be done. She said there are still areas where policies and programs, information, regulation, monitoring are still inadequate. She noted that water management is a shared responsibility. Ms. Castro said that it’s important to recognize who is accountable.

Technical Session on Challenges of Water Governance, Water Price and Tariffs in other cities and regions of the Philippines

Ms. Alma Abrasaldo, President, Philippine Association of Water Districts, Inc. (PAWD) and General Manager, Bayawan Water District

Session Title: Water Challenges in Other Cities and Regions of the Philippines

Ms. Abrasaldo began with a brief background on PAWD as an organization, noting that it serves as a platform for advocacy for water districts to promote policies and capacity building. She said that their members are sorted into different categories based on the number of connections they have. She added water districts are government owned and controlled corporations and are expected to be self-reliant and financially viable.

She reviewed shared challenges of water districts. With regards to government policies, water districts face delay in getting their water and septage tariffs approved by LWUA and face right-of-way and infrastructure issues with the Department of Public Works and Highways (DPWH). The National Water Resources Board also continues to issue permits for wells without thorough consultation with the water district. Water districts must also increase their capacity to arrange public-private partnerships. PAWD will also need to look for a partner to support their watershed protection and climate change adaptation efforts as its partnership with USAID is set to expire in 2017. She added that smaller water districts have the most trouble in staying self-reliant as they have less income because of fewer connections. She emphasized that many of the challenges that water districts face are not unique and shared by many.

Session Title: Water Resource and Supply Services in Metro Manila: Quality of Service and Performance of Water Supply Concessionaires

Engr. Gerardo Sullano, Deputy Administrator, Metropolitan Waterworks and Sewerage System (MWSS)

Engr. Sullano’s presentation focused on Metropolitan Waterworks and Sewerage System (MWSS) and the 1997 takeover through a concession plus the CA (Concession Agreement) extension of Manila Water and Maynilad. The scope of service and the organizational structure of MWSS was also presented, along with the inclusions on the concessionaries. Engr. Sullano shared the water security legacy plan and the medium to long term programs/projects of MWSS. He updated the participants on the Angat Water Transmission Improvement Project (AWTIP) and the Kaliwa Dam Project that aims to meet water supply shortfall of Metro Manila by 2021.

Mr. Constantine Uy, Business Operations, Manila Water Company, Inc. (MWCI)

Mr. Uy’s presentation focused on 3 main messages. First, he talked about the history of Manila Water, its connection to Ayala group of Companies., and its scope of operations and services based on their function as a company. Second, he mentioned the 1997 Private-Public Partnership and how it lead them to their present service today. It includes the reorganization of MWSS, criminalization of water theft and the granting of authority to the president to privatize water utilities and the reasons behind the privatization of water utilities. Lastly, Mr. Uy discussed Manila Water’s impact and how it has grown since it started in the Philippines and in the neighboring countries.

Mr. Randolph Estrellado, Chief Operating Officer, Manilad Water Services, Inc. (MWSI)

This is a continuation of Water Supply Concessionaires discussion but focusing on Maynilad Water Services Inc. as a company. Mr. Estrellado presented the basic information on the service areas of Maynilad, their water sources and systems of operations. He also discussed MWSI’s plans for expansion. Also included in his presentation is their waste water management services. Furthermore, their overall performance (from 2007 to 2016) in terms of service improvements was also shared by Mr. Estrellado.

Councilor Marissa S. Abella, City Councilor, Davao City

Session Title: Water Resource and Supply Services in Davao

Councilor Abella gave Davao’s profile, emphasizing its large land area and population and noting its importance as a regional center of Mindanao. Davao City has an abundant water supply for agricultural, industrial, and residential use due to the 8 large watersheds within its boundaries. These watersheds create a large aquifer which provides the City with an abundant water supply. In fact, the Davao City Water District sources its water from 99% groundwater wells and only 1% surface water sources. However, with the onset of climate change, a growing population, and increasing development, Davao City recognizes the vulnerability of relying solely on groundwater and is working with the private sector to develop additional surface water resources.

Davao City has several laws to protect water resources. The City has a watershed code to preserve and manage the city’s watersheds, recognizing that these areas serve as recharge areas for the groundwater supply. Second, there is a rainwater harvesting ordinance which requires households and businesses to collect rainwater to use for watering plants, washing cars, etc. Third, there is the Water Resource Management and Protection Code of Davao City which was passed in 1992 to protect, conserve, and manage the city’s water resources to ensure an adequate and safe water supply. Fourth, the City has a septage and sewerage ordinance to protect water quality. Last, there is an organic agricultural ordinance which advocates self-sustenance and mainstreams organic farming techniques which indirectly protects water supply by reducing the amount of chemical run-off that threatens water quality.

She stressed the importance of the private sector and civil society’s participation in the crafting of the ordinances. She noted the need to protect Davao’s water supply as it continues to grow and develop. She remained confident that the current administration of the LGU and the national government would support the City’s proactive approach to water resources management.

Mr. Esteban G. Del Mar, Chairman, Ronda Waterworks & Sanitation Service Cooperative, & Former Chairman, Cebu Federation of Water Associations

Session Title: Water Access in Rural and Small Island Barangays of Cebu

Mr. Del Mar presented on the provision of water on a small-scale in rural areas. He introduced ROWASSCO as an organization including its vision, mission, and organizational structure. Ronda, Cebu is a small fifth-class municipality in the south of Cebu. ROWASSCO serves more than 4,000 household members. He said that ROWASSCO’s systems depend on a mountain spring that relies on gravity for distribution in the low-lying areas.

He shared that during Typhoon Seniang, heavy rainfall flooded the entire town causing damage to ROWASSCO’s facilities, documents, and equipment. The organization was challenged to provide water to residents after the disaster and was able to restore water service within 10 days. The organization had to build new structures which came at great cost to the small organization. ROWASSCO reached out and received 400,000 pesos in assistance in a cash grant from a large company as well as a low-interest loan from a private individual.

He emphasized that small water providers should be given equal importance as their importance is written in state policy Presidential Decree 198. However, local water providers need more technical support, and they are often subjected to local politics.

He concluded by saying that the workshop can promote awareness of shared water problems and brings people together to find solutions.

Mr. Leonardo Rey Vasquez, General Manager, Zamboanga City Water District

Session Title: Water Governance in Other Islands / Regions

Mr. Vasquez began by sharing some of ZCWD’s challenges in providing water. He said the non-revenue water is high due to the fact that some of the pipelines are more than 100 years old. However, ZCWD is working to reduce NRW and partner with the private sector to provide additional bulk water supply. He said ZCWD must supply both households and industry, which composes mainly of sardine manufacturers.

He said ZCWD has been involved in the protection of a 12,000 hectare watershed since 1984 as it is ZCWD’s main source and spends around 30 million pesos annually. He said that the 2016 El Nino was the worst ZCWD has ever faced and forced Zamboanga City to ration water. He said that a lack of water infrastructure and high NRW results in low-pressure in many areas of the city. ZCWD is working with USAID to study how an impounding facility will support a sustainable water supply, especially during dry spells. He noted that during the 2016 El Nino, the quality of the water was affected and many children were hospitalized. ZCWD is working with the private sector to reduce NRW by 2020.

He said that ZCWD has a good relationship with the local government unit, and Zamboanga City has allocated funds in the past for the water district.

Open Forum

· Dr. Zakaria asked Mr. Estrellado what they did to cut down Non-Revenue Water (NRW). He answered that Manila Water Company Inc and Maynilad Water Services Inc. did the same thing. They cut the network into District Metering Areas (DMAs) and identified where exactly the water is being lost.

· Dr. Zakaria asked Mr. Uy which company projects made more money – those in Metro Manila or outside the metro. Mr. Uy said their business in Manila is already mature in terms of market saturation. With this, they should look for other opportunities outside Metro Manila.

· Dr. Zakaria asked if the price of water in Metro Manila is cheaper than those outside the metro. Mr. Uy said that the tariff in each city is different because it depends on the capital expenditures invested in each city. Mr. Estrellado said that their price in Manila is a lot lower.

· Evelyn Nacario-Castro asked if the concessionaires had another bulk water source for them to increase the number of services they are providing. Mr. Uy said that minimizing NRWs is the main reason why they were able to supply more. For other areas, they increased their customer base by building additional water sources (e.g. deep wells). Mr. Estrellado also said that cutting down their NRW has been a big help.

· There was a question addressed to PAWD on their concrete plan regarding the department order which posed a significant challenge in the laying of pipes in their community. Ms. Ambrasaldo said they already created a special committee who came up with a position paper and sought audience with the right agency.

· A concern was also raised to PAWD regarding emergency purchases under the Government Procurement and Reform Act where only 25-26% of repeat orders is allowed. Ms. Ambrasaldo said they are currently following the procurement law. In cases of deviances, they have to seek exemption from the Commission on Audit.

· Ms. Montano commended that most water districts in the Philippines rely on the minimum and commodity charges, while the bigger water districts can have cost index pricing and other sources of income. Dr. La O’ Castillo shared that there was a contention as to whether MWCI and MWSI has the right to pass fees to consumers of if they need to absorb it. Mr. Estrellado said the issue has been resolved on their part. Mr. Uy shared that their company lost the arbitration on the income tax recovery.

· Ernie Delco of Prime Water asked Mr. Estrellado how much they spent for the 1400 DMAs. Mr. Estrellado answered that each DMA costs Php 7-8M. He said that consumer who only use 10 cubic meters of water are subsidized by bigger customers. However, Mr. Estrellado said there is a need to enforce deep well rules to catch companies who are operating illegal deep wells.

· Noel Dalena of MCWD asked Mr. Estrellado for clarification if the government helped them build the dams. Mr. Estrellado confirmed this and added it’s the reason why the dam construction is not part of the recoverable expenditures passed on to consumers. Mr. Dalena said that it would be better if the government here in Cebu would also help, noting that it would reduce the cost of water.

· Ms. Castro inquired if there is any region in the Philippines which are doing something to protect their water recharge areas. Somebody answered that Davao Water may be doing something in this regard noting that they also assessed their watersheds. But this needs to be confirmed.

· A question was asked Mr. Dalena if they have a long term plan (e.g. building additional dams) to serve their franchise areas noting that they are only supplying 60% of the area. Mr. Dalena answered that there’s already a plan to construct a dam, but they have to look ways to finance it. They are also open to other options like desalination.

· A comment was also made to look into dispersing the industries due to growing demand and density in highly urbanized cities. Mr. Pinto said that in looking for solutions, it’s important to source out solutions from the national government too.

· A question was asked to Councilor Abella if the watershed code and water code are the same. Councilor Abella said that they are not the same. She also shared that the watershed area in Davao is proclaimed only through a local ordinance. Councilor Abella is also willing to share copies of the two codes.

· Someone commented that even though there is the Central Cebu Protected Landscape Act, there is still no Implementing Rules and Regulations for it.

· Someone also commented that water quality is not included in the presentation. Mr. Vasquez shared that the water Zamboanga City Water District is producing passes the Philippine National Drinking Standards. He also said they have treatment facilities to treat water.

· Antonio Tompar of Mactan Rock Industries asked LWUA on their current initiatives to address NRW. Ms. Montano said that LWUA is checking the NRW of water districts and take these into consideration on their application for water rates. LWUA does not tolerate NRWs beyond 20%. Mr. Tompar suggested that LWUA should provide a list of water districts with very high NRWs.

· Ms. Castro asked for confirmation that LWUA is supervising the water districts and that these water districts submit their KPIs on an annual basis. This was confirmed and additional information was said that KPIs are monitored before granting performance-based incentives. For non-water districts, it’s the NWRB that does the monitoring.

· Archt. Atega asked Mr. Vasuqez what the arrangements are for Zamboanga Water District in the management and protection of the watershed. She said that at one point, the Protected Area Management Board requested the water districts to give Php1 per cubic meter. Mr. Vasquez said that they didn’t agree with the fee since they are spending more. They also convinced DENR to let the water district handle the watersheds.

· Somebody suggested that it would be better to turn companies into cooperatives to ensure that dividends are given to the consumers. Mr. Pinto said that there is a need to look at the different dimensions in deciding between cooperatives and companies as the two cannot be compared.

· Alain Tchaide asked Councilor Abella on her experience in requesting for water programs in Davao. Councilor Abella said that HELP Davao network is composed of volunteers/experts from different fields. She said it’s important that the volunteers collaborate and they should have the genuine passion to serve.

Group Discussions

There were 4 simultaneous group discussions done, with each group discussing a different topic. The groups were given 30 minutes to discuss the issues/concern/gaps related to the topic, their proposed solutions and the role of the stakeholders in these solutions. Two rounds of group discussions was done (i.e. each participant was able to participate in at most 2 sessions).

Afterwards, the output of each group discussion was presented in plenary.

Session 1: Improving Water Pricing and Tariffs in the Philippines in general and Cebu in particular

Resource Speaker: Atty. Liza Osorio

Facilitator: Ms. Maritess Alambra

Issue / Concern / Gap

Proposed Solutions

Role of Stakeholders

Tariffs do not reflect the true cost of water. True economic value is not considered in cost.

Policy:

· Standard methodology for reviewing water tariffs.

· Block tariff should consider other factors (household size, per capita, etc.)

Practice:

Involvement of LGUs in the regulation of tariffs (General welfare)

Government:

1 accountable government body to review water pricing

NWRB reviews private water providers, LWUA reviews water districts. NWRB limited in capacity to review pricing

Platform (Governance):

Both NWRB and LWUA or a higher authority would review water pricing.

Water districts cannot invest in infrastructure

Programs/Projects:

Additional pipelines and infrastructure by the government (subsidize access)

Government:

· Provision of water infrastructure (subsidize access to water)

· LGU involvement

“Lifeline” rate of water for the poor

Policy:

Lessen minimum charge for marginalized groups

Practice:

Collection done on a more frequent basis (weekly)

Lack of regulation for PPP

Session 2: Challenges of Water Governance in the Philippines/Metro Cebu

Resource Speaker: Engr. Andres Muego

Facilitator: Ms. Aina Hubahib

Issue / Concern / Gap

Proposed Solutions

Role of Stakeholders

The plans of water districts are not made available to wider public outside the RDC.

Programs/Projects

Communications – Use of website

Private Sector

Coordination with Media

A water district cannot totally cover its service area. What is the obligation of the water districts in terms of service coverage?

Platform (Governance)

In areas that are uncovered, the private sector and LGU should come in.

Government

LGU Ordinance / Champion

Water Code

Private Sector

Private Sector investments / Champion

Salinity Intrusion

Water Permits

Policy:

· Deputize the water district so that the function of issuance of water permits will be devolved to the Water Districts. (Disagreement: Deputization is limited)

· Issuance of permits should come from one body – a body that is autonomous.

Platform (Governance):

· Convince the President to set up regional NWRB.

· Create an Island-wide authority. Set it up independently and partner it up with academe for monitoring. (To avoid vested interest). “An authority that sits on science.”

· Partner with the academe for water quality monitoring.

· Convergence: Find champions – LGU and the Private Sector.

· Empowering the local government.

· Finance Water Districts so they can expand services.

Practice

· Make institutions work – get them to produce what they are designed to produce.

· Hold agencies accountable. No need for a separate monitoring or oversight body.

Water Districts

Set up an Island-wide authority.

Involve Academe for monitoring.

LGU and Private Sector Water Champions

Land-use plans of the LGUs may be overridden by the special permits issued by the national government/offices.

Policy

· Take into consideration land-use plans, specifically for recharge areas. We should be serious about protecting our protected landscapes.

· Create an Island-wide authority. Set it up independently and partner it up with academe for monitoring. (To avoid vested interest). “An authority that sits on science.”

Government Agencies

PENRO, CENRO, DENR

Compliance of ECC conditions is not monitored. Planting of trees

Practice

Hold agencies accountable. No need for a separate monitoring or oversight body.

Government Agencies

PENRO, CENRO, DENR

Session 3: IWRM for Sustainability of Water Resources and Water Services in Cebu and the Philippines

Resource Speaker: Archt. Socorro Atega

Facilitator: Archt. Socorro Atega

Issue / Concern / Gap

Proposed Solutions

Role of Stakeholders

· Unstable forest policy environment.

· Untapped potential of watershed.

· Weak protection of forest resources against illegal practices.

· Deficiencies in the implementation of CBFMA primarily due to inadequate financial support.

· Unstable peace and order.

· Need to develop and protect non-timber forest products and species that help sustain rural livelihood strategies.

· Need to strengthen monitoring and evaluation capacity of the DENR on forest protection and management.

· Accountability/Leadership not clarified. Overlapping responsibilities weak enforcement of laws.

· No water, diminishing amount.

· Wastewater / waste management.

· Watershed management / restoration.

· Flood management / climate change adaptation

Policy:

· Harmonization of policies, roles and responsibilities

· National policy (council or department) to focus on Water Resources Management, an apex body with regional units

Platform (Governance):

· Clarify roles and responsibilities, accountabilities

· National vision, plans on water resource management

Programs/Projects:

· Inventory of policies and mandates

· Water count, audit, monitoring and evaluation

Practice:

· Education (IEC) to stakeholders

· Science-based decision support tool, communication and education

MCDCB/MCDCB RPOD

Inventory of policies and mandates, assisted by NEDA

Government

Regional Development Council to convene mandated agencies

Session 4: Water in a Changing Climate: The Challenge of Sustainability and Resilience (National and Local Context)

Resource Speaker: Ms. Evelyn Nacario-Castro

Facilitator: Ms. Leslie Guantero

Issue / Concern / Gap

Proposed Solutions

Role of Stakeholders

· Impact of extreme weather events such as flooding and drought

· Abnormal precipitation

Policy

Watershed management such as appropriate agricultural practices, reforestation, etc.

Programs/Projects

Implementation of structural measures such as cisterns and water pounding systems

Practice

Installation of additional hydrometric instruments such as rain water gauges

Government

DENR, DA

Government

DPWH, LGUs, NIA

Government

DOST/PAGASA

Salt water intrusion to be aggravated by projected sea level rise

Policy

Regulation of ground water extraction

Practice

· Conduct study on dynamics of sea level rise

· Exploration of other sources of water by use of technology

Private Sector

MCWD, NWRB, PWRA

Civil Society

UNESCO

Private Sector

Private companies

Change in groundwater recharge (limited percolation)

Policy

· Regulation of land use

· PES (Payment for Environmental Sciences) by private companies

· Incorporate storm water management practices/technology

Practice

Identification and strict protection of recharge areas

Private Sector

Private companies

Private Sector

Water districts

Decrease of fresh water sources (surface and groundwater)

Policy

Classifying water quality according to use

Practice

· Use of technology to facilitate reuse of water

· Water conservation

Closing Ceremonies

Conclusions and Summary: Prof Shahbaz Khan, Director and Representative, UNESCO Regional Science Bureau for Asia and the Pacific, Jakarta

Dr. Khan thanked the organizers for their efforts in putting together the workshop. He provided a brief background on UNESCO as an organization. He said that UNESCO Jakarta has worked with the local government unit of Davao City in the past on water issues, specifically to clean the Davao River. He said that challenges faced included a lack of budget to properly study the City’s water situation. He said he talked to agricultural stakeholders to better understand their needs and to see how they could participate in potential solutions. He said UNESCO has helped Davao with its water situation because of the good working relationship with the civil society.

He said that the Ramon Aboitiz Foundation, Inc. serves as an important link to facilitate the workshop which can benefit Cebu and other parts of the Philippines. He said that water tariffs do not often reflect the cost of water but rather the cost of transportation and infrastructure supporting the water. He said that the government must subsidize the cost of water to ensure access for all people, but many countries have not acknowledged that water is a human right.

He said that rainwater harvesting will affect those in the downstream area. It needs to be understood how much water is needed for each household. The entire situation must be studied and understood holistically.

Cebu’s position as a popular tourist destination will increase the demand for water, but the local people’s access to water should not be compromised.

UNESCO could serve as a partner to work with local water districts and companies to help solve Cebu’s water problem, similar to work that has been done in Davao. He said UNESCO will review the documentation and output of the workshops as a starting point to move forward in a partnership called a “learning alliance.”

Closing Remarks: Dionisio Ledres, Jr., Assistant Regional Director, National Economic and Development Authority and Member and Secretariat, MCDCB

Mr. Ledres thanked the organizers, sponsors, and facilitators for making the workshop a success. He emphasized that after the two-day workshop, the outputs and discussions should be converted to action. He said that Cebu is in a critical water situation that could be affected by climate change, as seen with the intense El Nino in early 2016. Lack of an adequate water supply will hurt Cebu’s livability and competitiveness. He said Cebu’s water challenges are not unknown to the local community, but little action has been taken in the past few decades to address the problems. He said that water’s value must be understood by all decision-makers and citizens as Cebu continues to grow. He challenged all citizens to take action by starting small, such as conserving water at home, rather than only waiting for infrastructure and policies. He concluded by saying the time to start taking action is now rather than later.

Annex A Participants

This international workshop brought together experts and resource speakers from within and outside the Philippines. The national and local participants from the Philippines include stakeholders from the Metro Cebu Development and Coordinating Board, academe, local government units, water districts in the Philippines, private water suppliers and companies, non-government organizations, national government agencies and the media.

Keynote Speakers

1. Prof. Soontak Lee, Governor, World Water Council

2. Prof. Shahbaz Khan, Director and Representative, UNESCO Regional Science Bureau for Asia and the Pacific, Jakarta

3. Dr. Olivia la O’ Castillo, Member Ex Officio, UNSGAB

International Speakers

1. Dr. Tariq Rana, Assistant Director, Water Resources Planning, Policy and Planning Division, Murray - Darling Basin Authority

2. Mr. Francisco Silva Pinto, Researcher, CERIS

3. Prof. Susana Neto, Convener, OECD Water Governance Initiative

4. Prof. Nor Azazi Zakaria, Director, REDAC, Universiti Sains Malaysia

5. Dr. Putu Santikayasa, Department of Geophysics and Meteorology, Bogor Agriculture University, Indonesia

National / Local Speakers

1. Dr. Sevillo D. David, Jr., Executive Director, National Water Resources Board (NWRB)

2. Ms. Myrra Montano, Division Manager, Local Water Utilities Administration (LWUA)

3. Archt. Socorro Atega, Executive Director, Cebu Uniting for Sustainable Water (CUSW)

4. Engr. Lemuel Canastra, Metropolitan Cebu Water District (MCWD)

5. Ms. Alma Abrasaldo, President, Philippine Association of Water Districts, Inc. (PAWD) and General Manager, Bayawan Water District

6. Engr. Gerardo Sullano, Deputy Administrator, Metropolitan Waterworks and Sewerage System (MWSS)

7. Mr. Constantine Uy, Business Operations, Manila Water Company, Inc. (MWCI)

8. Mr. Randolph Estrellado, Chief Operating Officer, Manilad Water Services, Inc. (MWSI)

9. Councilor Marissa S. Abella, City Councilor, Davao City

10. Mr. Esteban G. Del Mar, Chairman, Ronda Waterworks & Sanitation Service Cooperative, & Former Chairman, Cebu Federation of Water Associations

11. Mr. Leonardo Rey Vasquez, General Manager, Zamboanga City Water District

National / Local Participants

A. MCDCB and Individuals

No.

Name

Organization

1

Engr. Fortunato Sanchez, Jr.

MCDCB

2

Dr. Leonor Caneja

MCDCB

3

Carlos Co

MCDCB

4

Dan Jorolan

MCDCB – Club Mega

5

Jayne Du

Orbis Institute

6

Antonio Balang

GIZ

7

Mike Pato

OPAV

8

Bien Fernandez

USC

9

Jhessa Ugdamina

USC

10

Allan Comahig

USC

11

Danjick Lim

OPAV

12

John Yu

JSY

13

Danny Jaque

Hydronet

14

Anthony Dignadice

RAFI

15

Eileen Mangubat

MCDCB

16

Lolito Velis

MCDCB

B. Academe and Universities

No.

Name

Organization

1

Dr. Weena Gera

UP Cebu

2

Yuleta Orillo

UP Cebu

3

Atty. Liza Osorio

University of Cebu

4

Engr. Fe Walag

USC-WRC

5

Fr. Ulrich Schlecht, SVD

USC

6

Earl Vincent Labang

CIT University

C. Local Government Units

No.

Name

Organization

1

Danilo Capangpangan

Consolacion

2

Oscar Rodriguez Jr.

Danao City

3

Engr. Leonides Martel

Danao City

4

Engr. Ma. Obdulla O. Lescano

Naga City

5

Rheen Rennier V. Red

Tuburan

6

Engr. Edgar Sibonga

Cebu Prov. Water Resources Authority

7

Engr. Rey Marinas

Cebu Province

8

Leonides Ator

Cordova

9

Ruche Inoc

Cordova

10

Carlo John Alimoren

Consolacion

11

Wilson Pogoy

Naga City

12

Aaron Sage R. Caparas

Cebu Province

13

Florentino Nimor

Cebu Province

D. Cebu Water Districts and Cooperatives

No.

Name

Organization

1

Houdini Jumao-as

Bogo WD

2

Perry Gallego

Bogo WD

3

Noel Dalena

MCWD

4

Raul Tabasa

MCWD

5

Jorge Gabriente

MCWD

6

Ma. Rowan Tenedo

MCWD

7

Ferdinand Nicanor

MCWD

8

Elson Englis

MCWD

9

John Paul Delgado

MCWD

10

Lemuel Canastra

MCWD

11

Emmanuel Espina

MCWD

12

Engr. Edward Remo

Carcar WD

13

Danielito Cabardo

MIWASSCO

14

Elvera Regis

MIWASSCO

15

Geronimo Malinao Jr.

MIWASCCO

16

Anecito Carrillo

CEVIFEWASSCO

17

Roeal Yap

Toledo City WD

18

Francisco Abellana

Toledo City WD

E. Water Districts Outside Cebu

No.

Name

Organization

1

Reynaldo Liwanag

Angeles City WD

2

Jelyn Rivera

Angeles City WD

3

Tracy Salunga

Angeles City WD

4

Ma. Aida Torre

Bacolod City WD

5

Mario Macatangay

Bacolod City WD

6

Randolf Guintos

Bacolod City WD

7

Fr. Reine Lucino Eriga

Calamba WD

8

Mr. Exequiel Aguilar

Calamba WD

9

Dr. Myrna Pamplona

Calamba WD

10

Mr. Ervy Mercado

Calamba WD

11

Engr. Restituto Sumanga, Sr.

Calamba WD

12

Atty. Nolan Oloroso

Calamba WD

13

Amie Mendoza

Calamba WD

14

Isaias Golez, Jr.

General Santos City WD

15

Majorie Bandolon-Cartojanno

General Santos City WD

16

Atty. Francis Dimaliwat

Mabalacat City WD

17

Jerry Guillergan

Metro Iloilo WD

18

Rafonzel Andrade

Metro Iloilo WD

19

Romeo De Jesus

San Jose Del Monte City WD

20

Loreto Limcolioc

San Jose Del Monte City WD

F. Private Water Suppliers and Private Firms

No.

Name

Organization

1

Anthony Noel

Aboitizland

2

Corazon Baybay

Aboitizland

3

Ellen Baladya

AEV

4

Jose Angelo Fernandez

AEV

5

Christopher Camba

AEV

6

Perry Fajardo

Cebu Business Club

7

May Ybanez

CCCI

8

Robert Iran

Cebu Holdings Inc.

9

Mark Leo Chang

Cebu Holdings Inc.

10

Vera Alejandra

Cebu Holdings Inc.

11

Engr. Phebby Ann Paturan

Helpmate

12

Antonio Tompar

Mactan Rock Industries Inc.

13

Prexie Mae Tompar

Mactan Rock Industries Inc.

14

Nina Grace Mangle

Nature’s Spring

15

Beryl Ann Manching

Aboitizland

16

Ernie Delco

Prime Water

17

Sandor Romana

Rio Verde

18

Mel bernil

Rio Verde

19

Francis Dy

CCCI

20

Jon Urbano

Manila Water

G. Non-Government Organizations

No.

Name

Organization

1

Archt. Socorro Atega

CUSW

2

Engr. Andres Muego

CUSW

3

Fr. Margarito Alingasa

CUSW

4

Roberto Ybanez

CUSW

5

Clara Bouchet-Doumenq

Eau et Vie/Tubig Pag-asa

6

Jocelyn Caseres

Environmental Legal Assistance Center

7

Mel Yan

FPE

8

Catherine Ruiz

Kaabag sa Sugbo

9

Maria Lourdes Mariano

PASEDEV

10

Maria Bunao

PBSP

11

Rochellezita Bantigue

PBSP

12

Mary Jun Nicolasora

Single Drop Consultancy

13

Bimbo Fernandez

Pagtambayayong

H. National Government Agencies

No.

Name

Organization

1

Nestor Gelaga

DENR 7

2

Maria Thelya Oporto

DILG 7

3

Juan Edgar Osorio

DOST 7

4

Mohammad Ali Mauna

DPWH 7

5

Engr. Cindylyn Pepito

EMB 7

6

Mariolito Bonggot

NEDA 7

7

Cornelio Guantero

NEDA 7

8

Marichu Gonzales

NEDA 7

9

Rosa Edna Hubahib

NEDA 7

10

Dionisio Ledres Jr.

NEDA 7

11

Maria Melissa Guantero

NEDA 7

12

Joselito Sayson

DPWH 7

13

Engr. Nonato Paylado

DPWH 7

14

Sicorbato Verbosidad

DOH 7

I. Media

No.

Name

Organization

1

Ricsel Mananita

The Freeman

2

Mary Miasco

The Freeman

3

Princielo Vaelban

The Freeman

4

Herty Lopez

Super B

5

Rowena Capitor

DYRF

6

Elias Baquero

Sunstar

Annex B Program Flow

Day 1: Wednesday, August 10

Morning Session 9:00 AM

Workshop Opening Ceremonies

● Welcome Remarks: Mr. Roberto Aboitiz, President, RAFI and Co-Chair, MCDCB

● Opening Notes: Prof Shahbaz Khan, Director and Representative, UNESCO Regional Science Bureau for Asia and the Pacific, Jakarta

● Opening Speeches:

■ Sec. Michael Dino, Presidential Assistant for the Visayas (represented by Mr. Mike Pato)

■ Sec. Mark Villar, DPWH and Chair, LWUA (represented by DPWH Regional Director Ador Canlas)

■ Hon. Hilario P. Davide III, Governor, Province of Cebu, and Chair, MCDCB (represented by Archt. Florentino Nimor)

Press Conference

Keynote Sessions

● Keynote 1: Prof. Soontak Lee, Governor, World Water Council

IWRM for Water Security in Asia and the Pacific

● Keynote 2: Prof. Shahbaz Khan, Director and Representative, UNESCO Regional Science Bureau for Asia and the Pacific, Jakarta

UNESCO HELP and Ecohydrology Programs for IWRM and Sustainable Water Resources Management

● Keynote 3: Dr. Olivia la O’ Castillo, Member Ex Officio, UNSGAB

Challenges of Water Governance in the Philippines

Lunch Break 12:30 PM

Afternoon Session 1:30 PM

Case Studies and Experiences from Other Countries

● Dr. Tariq Rana, Assistant Director, Water Resources Planning, Policy and Planning Division, Murray - Darling Basin Authority

Water Price and Access to Water in Australia

● Mr. Francisco Silva Pinto, Researcher, CERIS

Water Tariffs and Governance: Institutional Frameworks and Planning for Water Resources Management

● Prof. Susana Neto, Convener, OECD Water Governance Initiative

Good Governance for Urban Water Management and Policy

Case Studies from ASEAN Countries

● Prof. Nor Azazi Zakaria, Director, REDAC, Universiti Sains Malaysia

Water Governance and Urban Storm Water Management in Malaysia

● Dr. Putu Santikayasa, Department of Geophysics and Meteorology, Bogor Agriculture University, Indonesia

Water Resources Management under Climate Uncertainty

Welcome Reception & Dinner 7:00 PM

Hosted by the Cebu Provincial Government (Social Hall, Capitol)

Day 2: Thursday, August 11

Morning Session 9:00 AM

Technical Session on Challenges of Water Governance, Water Tariffs in Cebu, Philippines

● Dr. Sevillo D. David, Jr., Executive Director, NWRB

Integrating Water Governance and IWRM into Metro-wide Planning and Development of Metro Cebu

● Ms. Myrra Montano, Division Manager, LWUA

Water Price and Tariffs for Improving Water Supply, Water Services and Social Equity in Metro Cebu

● Archt. Socorro Atega, Executive Director, CUSW

From Fragmented to Integrated Management of Water Resources in Cebu

● Engr. Lemuel Canastra, MCWD

Water Resources and Supply Services in Metro Cebu

Technical Session on Challenges of Water Governance, Water Price and Tariffs in other cities and regions of the Philippines

● Ms. Alma Abrasaldo, President, PAWD and GM, Bayawan Water District

Water Challenges in Other Cities and Regions of the Philippines

● Engr. Gerardo Sullano, Deputy Administrator, MWSS

Mr. Constantine Uy, Business Operations, MWCI

Mr. Randolph Estrellado, COO, MWSI

Water Resource and Supply Services in Metro Manila: Quality of Service and Performance of Water Supply Concessionaires

● Councilor Marissa S. Abella, City Councilor, Davao City

Water Resource and Supply Services in Davao

● Mr. Esteban G. Del Mar, Chairman, Ronda Waterworks & Sanitation Service Cooperative, & Former Chairman, Cebu Federation of Water Associations

Water Access in Rural and Small Island Barangays of Cebu

● Mr. Leonardo Rey Vasquez, General Manager, Zamboanga City Water District

Water Governance in Other Islands / Regions

Instructions for Workshop/Break-out Sessions

Lunch Break 1:00 PM

Afternoon Session 2:00 PM

Group Discussions

Session 1: Improving Water Pricing and Tariffs in the Philippines in general and Cebu in particular

Session 2: Challenges of Water Governance in the Philippines/Metro Cebu

Session 3: IWRM for Sustainability of Water Resources and Water Services in Cebu and the Philippines

Session 4: Water in a Changing Climate: The Challenge of Sustainability and Resilience (National and Local Context)

Closing Ceremonies

● Conclusions and Summary: Prof Shahbaz Khan, Director and Representative, UNESCO Regional Science Bureau for Asia and the Pacific, Jakarta and Ms. Evelyn Nacario-Castro, Director, MCDCB RPOD PMO

● Closing Remarks: Dionisio Ledres, Jr., ARD, NEDA and Member and Secretariat, MCDCB

● Bugsay Signing

Farewell Dinner 6:30 PM

Hosted by the Metro Cebu Water District (Social Hall)

Day 3: Friday, August 12

Field Trip to Water Intake and Water Treatment Plant in Carmen (MCWD/CMWDI)

2