Water Policy in the Philippines

Abstract

The chapter maps the array of formal arrangements between water apex bodies, national government agencies, local government units and water organizations with mandates on water supply and demand management. Institutional arrangements are complex, multilayered and fragmented, with duplication of tasks such as planning and monitoring, whilst few are involved in operations and financing. Local government units directly operate facilities and replicate the work of water apex bodies, which have no local presence. The role of the state is central as owner of property rights to water, regulator and subsidy provider. Despite increasing private sector participation in water provisioning mainly in urban centers, many rural and village-level waterworks continue to rely on grants from the government for crucial infrastructure, operations and management funds. The government uses water permits, subsidy, legal requirements for inter-sector transfer, and penalties for pollution as policy instruments. However, serious gaps remain as mechanisms are not fully articulated in order to meet social equity and resource sustainability goals. The outcomes are highly localized, politically contingent, and diverse water governance schemes. Select cases illustrate how the absence of clear property rights and rules for orderly contracting lead to political mobilization for preferred outcomes, local social arrangements, and water pricing innovations.