Perks, stable regulations urged for water sector

The massive investments needed to make potable water accessible to every Filipino would pour in only if the government grants investors generous perks, makes financing more accessible, as well as ensures a stable regulatory environment, experts said on Monday.

For the government’s part, the Department of Public Works and Highways (DPWH) said that it is working to address governance and regulatory issues in order to attract as much as P93 billion worth of investments in the water sector, which the World Bank had estimated would be necessary to upgrade distribution networks and bring clean water to more households between 2013 and 2025.

More big-ticket projects in the water sector are crucial, according to the United States Agency for International Development (USAID). The organization said that—while a 2010 report on the Philippines’ progress in achieving the Millennium Development Goals (MDGs) noted that about 92 percent of the country’s populations have access to drinking water—a 2011 survey showed that only 44.4 percent of Filipinos have household connections to water supply.

During the Water Sector Forum 2014 organized by USAID and the Philippine Business for Social Progress (PBSP), Public Works Secretary Rogelio L. Singson expressed optimism that such an investment target would be achievable if the private sector would be enjoined to increase their participation in water projects.

“The government is continuously exploring possibilities and opportunities to encourage the private sector to invest in water supply development programs, to include financial, technical innovations and other partnerships,” Singson said.

In a press conference, Ramon B. Alikpala, chief of party of USAID’s Water Security for Resilient Economic Growth and Stability (Be Secure) Project, said that he agrees that generating P93 billion in water investments is doable, but stressed that doing so needs strong financial, regulatory, institutional and political support.

“What is missing is a comprehensive framework and fundable projects in LGUs (local government units),” Alikpala pointed out.

For the part of PBSP executive director Rafael C. Lopa, he deemed that the private sector is interested to invest in water because there remains a large untapped opportunity. This interest could translate into actual projects if the government would dangle incentives as well as show that the regulations governing the water sector are pro-business, he said.

USAID mission director Gloria D. Steele, meanwhile, cited that the “lack of financing in the Philippines’ water sector remains one of the most important constraints to achieving total service coverage in the country and to ensuring that services which are delivered remain sustainable over the long term.”

“While government investment in the sector has increased in recent years, with a particular focus on bringing coverage to waterless communities, there is still an enormous gap,” she said.