Philippine Institute for Development Studies
Policy Notes July 2000
Urban Water Pricing:
The Metro Manila and Metro Cebu Cases
Cristina C. David, Arlene B. Inocencio, Roberto S. Clemente, Ramon P. Abracosa, Francisco M. Largo, Guillermo Q. Tabios and Ed L. Walag*
Water resource management in Metro Manila and Metro Cebu: the story so far Water resource management in many major urban centers has failed to provide an economically efficient, socially equitable, and environmentally sustainable development, distribution and use of water resources. In the greater Metro Manila area with more than 11 million people, the Metropolitan Water and Sewerage System's (MWSS) piped water connections reach only about 60 percent of its household coverage while its sewerage system serves a much lower propor tion (9%). MWSS' service is generally characterized by low water pressure and intermittent supply, averaging 16 hours per day. Yet, it has one of the highest rates of nonrevenue
No. 2000-09
water worldwide, amounting to almost 60 percent of water production. The Metro Cebu Water District (MCWD), meanwhile, which provides piped water connection to the second most populous urban area in the Philippines, serves less than 40 percent of households in its service area at an average of 18 hours per day. Its rate of nonrevenue water is also relatively high (38%) and although part of its mandate, the problem of sewerage disposal has remained largely unattended to. Inefficiencies in water supply, sewerage and pollution management have already caused serious environmental problems. As a consequence of the inadequate piped water supply and weak regulation of groundwater abstraction, groundwater depletion has become a major problem, causing saline intrusion and land subsidence along coastal and certain inland areas. In Metro Manila, a 1990 estimate of groundwater abstraction (970,000 cubic meters a day or cum/d) far exceeded the natural recharge rate of 533,000 cum/d. In Metro Cebu, ground water abstraction is estimated to be about 234,000 __________ * The authors are Senior Research Fellow and Research Fellow, Philippine Institute for Development Studies; Associate Professor, University of the Philippines (UP); Professor, Asian Institute of Management; Senior Instructor, University of San Carlos; Associate Professor, UP; and Project Manager, Water Resources Center, respectively.
PIDS Policy Notes are observations/analyses written by PIDS researchers on certain policy issues. The treatise is holistic in approach and aims to provide useful inputs for decisionmaking. The views expressed are those of the authors and do not necessarily reflect those of PIDS or any of the study's sponsors.