IA '/ -~ /J

PROCESS EVALUATION

OF THE

BARANGAY WATER PROJECT II

PREPARED FOR

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

MANILA, PHILIPPINES

MARCH 1985
 ACKNOWLEDGEMENTS

The Evaluation Team hishes to acknowledge the cooperation ana

support of Mr. Carlos E. Crowe, Project Manager and the USAIdU/bWP

and Sheladia engineers. Their willingness to provide data and

documentation is greatly appreciated. Time and information given by

other USAID Personnel is also gratefully acknowledgeo.

Sincere gratitude also goes to Mr. Gaspar L. Nepomuceno, his staff,

and all the LGU staff who were so unfailingly willing to provide

information. The team would also like to thank the word processors,

Noemni Damito, Carol Duque, Gloria Edquiban and Mae Manalo whose
overtime efforts enabled the team to complete the report in a timely
manner.

Donna Flanagan (Team Leader)

Helen Espinar
Diana E. Talbert
Edgardo Tolones

ABBREVIATIONS

AA - Advice of Allotment
ADB - Asian Development bank
A&E Firm - Refers to Techniks Group Corporation
ASTM - American Society of Testing Materials
AWWA - American Waterworks Association
bAC - bidding and Award Committee
barangay - Township equivalent to a city ward or rural village;
smallest government unit
BWP - barangay Water Project
bWP 1 - The First barangay Water Project (17b-198U)
bWP 11 - The Second Harangay Water Project (19bl-1965)
BWP/PMS - barangay Water Project/Project Monitoring Staff
BW-lU - Authority to Proceed with Construction
bIr - bureau of Treasuiy
CDC - Cash Disbursement Ceiling
CFMU - Central Funu Management Unit
CPU - Central Project Office
CUA - Commission on Audit
CO - Certificate of Deposit
CHO - City Health Office
DV - Disbursement Voucher
ERSD - Engineering Review and Supervision Division
ESF - Economic Support Fund
FAR - Fixed Amount Reimbursement
6.l. - Calvanizeo Iron
GOP - Government of the Philippines
H PE - High Density Polyethylene Pipe
ICU - Internal Control Unit
JV - Jurnal Voucher
LGU - Local Government Unit
LWUA - Local Water Utilities Administration
MAF - Ministry of Agriculture ano Fooo
MDF - Municipal Developmeilt Fund
MLG - Ministry of Local GovernmenL
MUF - Ministry of Finance
MOA - emorandum of Agreement
MUH - Ministry of health
HPWH - Ministry of Public Works and Highways
MWSS - Metropolitan Waterworks and Sewerage System
NEDA - National Economic Development Authority
NGO - Non-Governmental Office
NIA - National lrrigation Administration
OBM - Office of buoget and Management
OLD -, Office of Capital Development, USAlb
OLGF - Office of Local Government Finance
(&M - Operation and Maintenance
OPM - Office of Prime Minister
ORAD - Office of Rural and Agricultural Development, USAlD
PB - Polybutylene Pipe
PbSP - Philippine business for Social Progress
P/CET - Provincial/Lity Lvaluation Team
PDAP - Provincial Development Assistance Project
PUS - Provincial Development Staff
PAP - Provincial Development Assistance Project
PE - Polyethylene Pipe
PEO - Provincial Engineers Office
PHO - Provincial health Office
PM - Project Manager
PMS - Project Management Staff
PNB - Philippine National bank
PSA - Philippine Standards Agency
PSC - Project Steering Committee
RAA - Request for Advice of Allotment
RCA - Request for Cash Advance
RDA - Request for Obligation of Allotment
RSC - Rural Service Center
RWDC - Rural Waterworks Development Corporation
RWSA - Rural Waterworks and Sanitation Association
RURbAN - Professional Rural and Urban Consultants
TW - Treasury Wariant
USAlD - United States Agency for International Development
Mission in the Philippines
WASH - Water and Sanitation for health Project
WFP&B - work ano Financial Plan ano Budget
WRS - Waterworks Repair Shop
WWS - Waterworks System
 TABLE OF CONTENTS

PAGE

Acknowledgements

Abbreviations

I Executive Summary 1

II Project Description 9

A. Overview - Introduction BWP

B. Project Goal and Purposes

C. Current Status c' the BWP

D. Achievements of the BWP 13

III Major Recommendations 15

IV Lessons Learned
20

V Discussion of Alternative Proposals 24

A. Essential Components of Any BWP Design 25

B. Present Implementation Flow 28

C. Immediate Steps to be Taken 29

D. Discussion and Recommendations for

Re-organization 31

Option 1: MLG 31

Option 2: RWDC 32

Option 3: NEDA, MAF, OPM, MOH 33

Appendix A: Existing Procedure for

Funds Release to LGU 39

Appendix B: Detailed explanation of

simplified cash flow system

supporting Flow Chart Ill 41

Appendix C: Accompaniment to Flow Chart IV.

Centralized Organization: Fund

Releases Through MDF 43

VI Findings, Conclusions and Recommendations 50

A. Institutional Development 50

B. Management 66

C. Technical Concerns

ANNEXES

A. Project BackgrOund and Implementation

B. Evaluation Methodology

C. Scope of Work - Sheladia Associates, Inc.

D. Scope of Work - Techniks Group Corp.

E. Scope of Work - Heads, Inc.

F. References Consulted

G. People Contacted

H. Executive Order No. 777

I. MLG Circular 83-2

3. MLG Circular 83-5

K. MLG Circular 83-27

L. Executive Order No. 577

M. Memorandum, August 23, 1983

CHARTS Page

Chart I Barangay Water Program Project Implementation 28a

Chart II Existing Procedure for Funds Release to Local

Government Unit 28b

Chart III Centralized Organization: Funds Released Thru

the Manila Office of Implementing Agency 29a

Chart IV Centralized Organization: Funus Heleabeu Triu

the Municipal Development Fund (MUF) Xa

Chart V Decentralized Organization: Funus heledseu

Thru the Municipdl Developinent Fuiiu (MbF) 3.
Chart VI DeLentralizea Organization: Funus heiecseu Inru
the Manila Office of the implementing Agen[cY 3-L
Organizational Chart of ddrangay Water Proyrdm

Local Resource Ninagement Project urydnization

Chart 0

Schematic Organization Chart for PUWH Prijec 3ta

Funding and Reporting Flow: PUS-i Project 30L

TABLES

I RWSA Status of Operation

II General Profile of R SAs b

III Financial Indicators of RWSAs b4U

 CHAP1LR I

XLCUTIVL SUMMARY

A. Overview of Evaluation

The purpose of this 2-month process evaluation of the

barangay Water Program was to determine outputs ano

accumplishments to date and to provide management with

specific guidelines for addressing the identified problems.

It is the first evaluation undertaken during the 4-year life

of BWP 11.

The scope of work included Four basic objectives.

1) Determine the degree of competence which the provincial

governments have gained with the bWP activities in

planning and building rural water systems as well as in

providing technical, financial and managerial support to

the rural water and sanitation associations (RSAs).

2) Verify the extent to which the RWSAs have receiveo

support and training from the WLG/BWP and Provincial

governments, sufficient to operate, manage and maintain

their water systems on a financially sustainable basis.

3) Determine, based on project outputs ana accomplishments

to date, whether or not project targets warrant any

change or modification; for example, shifting more

emphasis from construction to KhbA institutional

development.

4) Determine the performance of IhSAs focussing on factors

contributing to success or failure.

The evaluation team consisteo of four professionals: helen

Espinar, Donna Flanagan (team leader), Diana Talbert ano

Ldgardo Tolones. Their expertise covers the disciplines of

commnunity development, training, management, financial

analysis and waterworks engineering. The team mace a

thorough review of existing BWP-related literature ano an

analysis of relevant USAl) ano GUP documents; they conoucted

 - 2­

interviews with personnel from USAID, MLG, MOF, OBM, RWDC,

LWUA as well as a number of other local institutions which

have experience in providing engineering, training and

community development services. In addition, they visited 37

sites, including investigation of the personnel capabilities

at 10 LGUs. Their field work investigations covered a

randomly chosen selection of completed water systems, (Level

II, Level III and Level III-A), proposed systems, systems

under construction, systems that had failed and systems that

were operating reasonably well.

The team's conclusions and recommendations are based

primarily on four investigations:

1) a study of the actual performance/accomplishments of the

BWP.

2) an in-depth look at the experience, background,

motivation, capabilities and limitations of:

a) the USAID support team;

b) the BWP project management staff;

c) the LGU staff who are assigned BWP responsibilities;

and

d) the RWSA officers and staff.

3) a study of the project design, its objectives and its

stipulations--in view of today's socio-economic

conditions.

4) a study of GOP and NGO institutions and regulations which

could have a bearing on a re-design of BWP.

B. FINDINGS RE: EVALUATION OBJECTIVES

The findings of the evaluation team are sufficient to draw

conclusions regarding the issues raised in. the team's scope

of work.

 - 3 ­

1) The degree of competence which provincial governments

have gained in planning and building rural water systems

varies. however, only 11 of the 80 LGUs which have

signed MUAs with bWP have actually completed at least 3

BWP water systems, which criteria the team regards as a

minimum for demonstrating competence.

The degree to which they have gained competence in

providing technical, financial and managerial support to

RWSAs also varies. What is clear, however, is that

despite a desire and willingness to provide such support,

the LLUs rarely do so.

There are two main reasons.

- Lack of effective ana appropriate training from

BWP/Phb prevents the LLU from teaching kWSAs the
skills ano knowledge for technical, financial, and
managerial self-reliance.

- Lack of logistic support has made it virtually

impossxole for I...GU staff to monitor and train RWSAs as
frequently as is necessar in order to ensure RWSA

success. HWSAs which are located close to the LU

center have received more support and are,

consequently, often more successful.

2) The extent to which the RWSAs have received support and

training from the UbWP/PMS aria Provincial governments is

discussed at length in the Institution building section

of Lhapter Vl.

The bWP/FMS does not keelp statistics about MiSAs - i.e.,

if arortization is being paid; if elections are held; if

the board of Directors meet; if monthly water rates are

collected; etc. Therefore, the team's conclusion about

the viability of kWbhs is based on those 37 that were

visited.

Most are not yet operating and managing their water

systems on a financially sustainable basis. None are

maintaining their systems regularly. Where the RWbA is

successful, the team concludes that it is so for a

variety of reasons -- none of which are the training and

support given by bWP.

 - 4 ­

3) The team was asked to determine whether the project

targets warrant any change or modification. Their answer

is an emphatic, yes.

The team feels strongly that BWP should emphasize its

original intent - institution building, rather than

construction. (See Major Recommendations, Chapter III

and the recommendations in the Management and Institution

Building sections of Chapter VI.)

Criteria should be determined to measure "successful"

RWSAs and one revised project aim should be a dramatic

increase of such RWSAs. (The reader is referred to page

13 for a discussion of BWP achievements. Successful and

innovative RWSAs are illustrated.)

The team emphasizes the warning in the September 1984

Auditor's Report. "The BWP project could fail if user

association personnel are not given adequate training and

technical assistance for them to effectively manage the

water supply systems."

4) The performance of RWSAs varies from location to

location, from economic crisis to economic crisis, and

from season to season. However, there are factors that

make success more likely. These factors are listed in

Chapter IV, Lessons Learned.

C. Conclusions

BWP has definitely not met its original targets. To date, of

the 507 systems targetted, only 96 (Level II and III) have

been completed; and only $4.7 M of the total (BWP Il, 1980)

loan and grant of $22.1 M has been disbursed as of December

.51, 1984.

At the sites visited, of the completed and accepted systems,

only 41% were giving 18 to 24 hour service. Thirty-one

percent give service for less than 4 hours a day. Seventeen

percent have stopped operations altogether. Again, of the

sites where information was available only 2 were serving (or

ever had served) the 90% of the service area population which

has been a pre-requisite for BWP site selection. (See Table

I.)
 TABLE I
RWA STATUS IF OAT1N

CDof3L-LuJ) HUT HIM OF U03.RATMON

NOT ACCEPTED STOPPI) LESS T , PDATI_ TOT.l
BY RWSA OPATION A HOURS 4 TO 12 HIS 12 TO 16 fS 18 TO 24 WRS NO OD4VIW (ONVERSION TO C(Z1ERSION TO
LEVEL III LEVEL III

A.CPETED SYST04S
Lucs tudn
Emanuel
Taytay
Sinai p
Gljyars &r~ /
Lunao J
Llburon ,
Casay J
Tayud
Bugs
Agsalanon 4 4
Sinughan 4
Taf kan ,
Salaton /

Dagatan
Calezas ,V
Laoldario I

Oita J
Pav J
WQa
nqa4
San Lsldrm J
San .1.an 4
LDIO03DY/4
Bujihan 4
San Glibriel /
Tabing flog .
Bunsuran 4

Urayorng 4

T0 T A L S 3 5 9 2 12 11 16
If we generalize from these statist.cs, it is lik Ly tlUL

even the low numLer of completeu systems (5o) gives ar,

inflated view of the numLer of people dnu ccanonuiit±es wnu

have actually received a consiuerable Lerefit fron tne Dv.

There are five uncderlying causes for tris pertornunce.

1. Late financial disLursements (Loth seetu mony aniu

reimLirsements) by the GOP have Cduseu suLstaritial utlays
in implementation. The FAi reimLursement process,
combined with the limited firancial resources the LWti
have been experiencing since 19d3, 1'as made tne start up
of new projects almost impossile in sume provirices. itr
slow and unreliable oisLursement process azsu has
contritafted to an LGOU loss of interest in the bWi.

2. The centralized management of bWP has compjunueu maiiy

problems.

a. FNS did not visit the provinces £eyuidrLy to pruviuc.

training, monitoring ano evaluation serv.ctb.

b. The sub-project approval process was heo up

(sometimes for more than a year) Lecause uf pooi
communication between b P anu the Luus.

c. The various consultants see tre proulems in tre tiitU,

bit have no auth)rity to take action. itey car fmke
recommendations to the PMS Lot triere is nu systm Ur
follow-up to the recommenuatiuns. Ever WILIlUii Lite P.I
only the project nunager adumits tu rhavn tne
authority to make uecisiuns or take dCtiOIsb. uther
PMS members seem unclear cs to what dCtiulrs tiiuy can
take on their own.

3. Foorly selected, poorly tiaineo ano pooiiy frotivatet

personnel. Few, if any, of tne project nanagement starr
have the required qaiifications for trnir pusitiuns.
t'br have they received professiunul training on the job.
Their lack of knowledge, skillis, confiuence, anu sense or
authority have filtered down to trie provincial anu
Larangay levels, jeopardizinr tl-e enLire dwP.

4. Two tasic weaknesses in the design of tne project.

The first weakness was unoerestimating tne sustaineu

effort and the logistic support trat wouiu Le necessly
to "develop the competence of the provincial yuveltheil..s
to plan and Luila rural water systems Antu to pruviud
technical, financial ano mandgeriai. support tu the hv5is."
 The second weakness of the design is the fact that

although community participation is acknowledged to be a

key to the success of the bP, no clear mechanisms for

achieving it were built into the project. The project

designers apparently thought that community participation

and community development would occur as the result of

community meetings.

5. Despite trainings, ano despite the presence of USAlU

engineers and both local ano foreign engineering

consultants, 31% of the sites visiteo suffered from

design flaws, inadequate source development, poor

construction and/or below stanoard materials.

Discussion of Alternatives

There are essentially three alternatives that can be

considered for the BEVP.

1. To continue the project more or less as it now stands

until the current loan extension expires (December 1965)

and then to entirely abandon the project.

2. To extend the loan until December 1986 and instigate some

of the team's reconmenoations (e.g. a speedier

reimbursement process through use of the WF revolving

fund); while at the same time making an intensive effort

to rehabilitate and complete as many projects as possible

by the end of 19b6. This effort will be mainly
construction - not institutional development.

. To terminate the existing BLdP and design a new program

which will be more responsive to the real needs of the

LGUs and RvSAs. This alternative woula necessarily

require USAlD to deal with the following issues:

a. whether BWP should continue its apparent inaovertent

change of emphasis to construction or return to its

original intent of institution builoing;

b. where
BWP should be placec within USAlD;

c. where
BWP should be placed within the WOP;
 - 7 ­

d. the use of central management system vs.

decentralization;

e. the continued use of FAH;

f. provision of transport.

The evaluation team finds no advantage in the first

alternative. A clean water supply is a basic neeo uf all

people and USAiD has a role to play in helping the GUP to

meet that need for its rural population.

The second alternative represents a half-hearted

measure. The team believes that the personnel who

implement the program will not have the motivation or

enthusiasm necessary to oo so if they know the project is

to end in 19b6. Low morale anO interest woulo prevent

both innovative ideas and the necessary intensive push

toward completion of more work. In addition, according

to the batasan Pambansa blg. 697, no contract awards may

be made 45 days before or 45 days after the 19b6

provincial elections. Thus, during one-quarter of the

year, new project work would be considerably slowed.

The evaluation team, therefore sees no advantage in

prolonging bWH 1l by a year's loan extension.

The third alternative offers what the team thinks

represents the best option. It offers the opportunity to

replace a moribuno project with a dynamic one. It offers

the opportunity to establish realistic goals; it offers

the opportunity to fino the most efficient and effective

GUP agency within which to place the BViP; it offers the

opportunity to devise a responsive financial plan that is

realistic in today's economic situation; it offers the

opportunity to try a different organizational set-up

(such as the de-centralizeu approach which is

recommenoeo by the team); it offers the opportunity to

insist on qualifieu ano professional b'P staff; it offers

the opportunity to make provisions for expert community

participation ano community organization inputs.

The reaoer is referreo to Chapter V for an in-depth

discussion of the team's recommendations concerning such

a BWP reorganization.

Chapter Ill is a list of other major recommendations.

They are baseo on the findings, conclusions and detailed

recommendations presented in,Ihapter Vl.

 -9-

CHAPTER II

PROJECT DESCRIPT!ON

A. Overview - Introduction to the BWP

To understand the BWP, it is helpful to review the history of its

evolution as a "spin-off" project of the Provincial Development

Assistance Program (PDAP).

When early efforts in rural development solely through central

government mechanisms did not meet local needs or expectations,

USAID decided oi a new approach. Local governments were to be given

more freedom to select and carry out their own projects and their

capacity to implement and manage development activities was to be

strengthened.

In 1966, Operation SPREAD (Systematic Programming for Rural Economic

Assistance Development) was initiated on a pilot basis to develop

basic LGU infrastructure. This assistance was supplied directly to

the provinces.

The success of this pilot program led to the creation of PDAP in

1968. POAP aimed to upgrade LGU administrative capabilities and

project implementation capacity but through a central government

mechanism, an agency in the National Economic Council.

By 1976 PDAP was operational in 28 provinces and to varying degrees

was successful in:

a) creating Provincial Development Councils, Provincial Development

Staffs, the Capital Improvement Plan, and the Annual

Implementation Plan;

b) improving budgetary and fiscal management; and

c) improving LGU capacity to plan and implement capital improvement

projects.

In 1976 the administration of PDAP was transferred from NEC to the

newly created Ministry of Local Government and Community Development.

As PDAP came to an end, special projects were designed to continue

to build LGU capabilities but target specific needs or particular

 - 10 ­

groups of people. Rural Roads (1976), Rural Service Centers, and

the BWP (1977), were three such follow on projects.

The Barangay Water Program (BWP) is a domestic water program

designed to develop local government capacities to provide safe and
plentiful water for household purposes to small rural farming and
fishing communities with populations of 10,000 and under. Like the
communities they serve, the water systems themselves are small,
generally consisting of the development of springs or wells, storage

facilities, and transmission lines and laterals. Water is delivered

to the consumers through strategically placed public faucets or

individual house connections. The type and size of the projects

vary from community to community, but the following is true of all

systems: they are owned, maintained, and managed by the users

themselves through water service cooperatives (RWSAs).

The Barangay Water Program works through local officials and

provincial and city governments in an effort to develop their

capabilities to plan and install village owned water systems. A 47

person national project management staff (PMS), a unit within the

Ministry of Local Government (MLG), sets the policies, standards,

and guidelines and trains the local government planning and

engineering offices to develop and implement the water systems.

To assist the Philippine Government in implementing the program the

USAID authorized a $19.6 M loan for BWP 11 to provide funds for the

construction of water systems on a Fixed Amount Reimbursable (FAR)

basis. USAID has also provided management and engineering advisory

services and a $2.5 M grant to be used for special training and

specific engineering and office equipment.

The original concept and design of BWP was well conceived. BWP 1

was managed by USAID's Office of Rural and Agricultural Development

(ORAD) as an institution building project. BWP II, managed out of

the Office of Capital Development, became a much larger project in

terms of provinces covered and funds available. The emphasis seemed

to change to system construction. Elements such as training and

community organization were not monitored.

B. Project Goal and Purposes

According to the BWP Logical-Framework, the overall project goal is

to improve the general health of the residents in the service area

of the BWP. The intent was that within 3 years after the

installation of the water system there would be:

 - 11 ­

0 no cholera or typhoid outbreak directly traceable to the project

water supply;
0 a 50% decrease in gastro-enteritis;

0 a 50% decrease in reporteo skin diseases.

There are two project purposes:

1. To provide safe, reliable, low-cost water systems or facilities

to selected small rural communities (under 10,000 population). The

conditions which were to indicate that this purpose had been

achieved were:

a. All installed systems will be collecting sufficient

fees to assure continuing operations.

b. The delivered cost of water does not exceed 5% of the

average family income.

c. Quality testing is being performed regularly on each system.

d. At least 90% of the residents are using the installed system

as their primary source of potablE water.

2. The second project purpose was to develop national and local

government capacity to plan, organize, finance, and install Barangay

Cooperative Water Systemsl ! with an indigenous maintenance and

management capacity. The conditions indicating the second purpose

had been achieved were:

a. The existence of an established and functional control

office with at least 35 trained project management staff

personnel.

b. Existence of 59 Provincial/City Development Staffs that can

identify potential barangay water systems and organize

cooperatives to support and manage same.

c. Existence of 59 Provincial/City Engineering Offices which

are capable of designing and installing barangay water systems

and providing technical assistance for the major repair of same.

I/This term has been changed to Rural Water and Sanitation

Association. It is referred to as RWSA throughout this report.

 - 12 -

C. Current Status of the BWP

There is no data available that can indicate progress toward

achievement of the project goal. Although the Ministry of Health is

a co-signer in the project Memorandum of Agreement, it has not been

an active participant in the BWP.

Evidence does exist, however, that water quality tests are not

performed on a regular basis and user-education regarding the

relationship of health and water is not given. It is unlikely

therefore, that much progress toward the BWP overall goal has been

made. The installation of a water system alone is not the only

necessary condition for improved health.

Neither can it be said that the two project purposes have been met.

As of January 10, 1985, a USAlD document reports that during BWP II,

96 Level II or Level Ill water systems had been completed in 37

different LGUs. In addition, 44 were under construction, and 255

were in various stages of planning and design. These figures

illustrate that the BWP is far from its original end-of-project

(1984) output of constructing 507 water systems.

Other indicators of project status follow.

O The anticipated output of conducting 57,760 person hours of

training has been achieved.

0 80 LGUs have signed MOAs with the Government and of these 58

have initiated at least one project

0 The team was unable to obtain reliable records giving data about
other expected project outputs, e.g., the number of provincial
evaluation teams formed; the number of functioning waterworks
repair shops; the number of Water Resource Inventories prepared
etc.

0 A local consulting firm has been hired to provide engineering

design and construction and monitoring services.

0 A local organization has been hired to provide community

organization and training services.

0 A U.S. consulting firm has been hired to provide specialized

waterworks engineering skills.

0 The requirement for the BWP project management staff to conduct

annual recertification exercises for participating LGUs has not
been complied with.
 D. Achievements of the BWP

The BWP is a carefully designed project. It nas p-ouceu soimt

reliable rural water supply systems anu sume successful Ldranyay
water cooperatives (RWSAs). It has appealeu to many LW
authorities--80 LGUs have signed MOAs ariu the project ib "in effect"
in 12 of the nation's 13 regions. It has also appealeu tu Ldcngay
residents--they like having convenient water; many ike ttl t'act
that they can manage and control the system; many like the bied tria
the system is theirs.

The strength of the desire of the tarangay peopie for owning ther
water system is witnessed in the highly successful KHsAb where
memberships are growing and amortization rates are Lelrg dlU. .-0
less affluent areas, where rate collection is pioblematic, tWe
dedication of the few who work harder, often for no reinufrirdctiu,, to
keep the system working is proof of the neeu and viablity of the
barangay water program.

The following specific examples illustrate the benef its ut tWeLuLd

baranqay water projects.

- Before the project, San Pedro resLuents cuy thiouyn the Scihu ot
the dry Tanduan River bed to yet arinking water uriny th ur.y
season. Ibajay and Maloco-Capilirun resluerts uepenueu ui
shallow and open-dug wells or rainwater col±ecteu from Lusty
roofs and stored in tanks which were often rusty. LoUumLUy
residents either bought their water from a nelyhw ny Lr.lo or
obtained it from a shallow well which was not consluereo sdte by
medical authorities. Now, all communities nave a safe,
year-round, supply of piped water. Construction of wdtti-bediCu
toilets has increased 30 percent; ruw Letween bU percent dFlu 5
percent of the householas in these communities have watei-seudit
toilets.

- Whereas residents of Lolomtoy useu to pay an averaye of V4. pUe

month for water brought in Ly motorized tricycle, now they pay
an average of P35 for a contiuous supply of pipeu waLe..

We to lack of water, families in San Peumu coulo rut ernyd9 in

tackyard gardening during the ory season. Now, at ledst Lb
percent have year-rouno Lackyard yaruens. riouserlu piyyC1±e
have increased in San Pedro with aLout bb percent ot fdmiLies
now raising pigs.

Some successful RWSAs have reached beyonu the bViP eApectatons with
special fundraising efforts such as rdffles, Wauty contests, anu
 - 14 ­

sales of piping. Efforts of community education are seen for

example, in a quarterly newsletter which one RWSA produces for its

membership.

The concept of federations has proven highly successful in the few

provinces where they are active. Some federations have provided

loans to RWSAs in urgent need. More experienced RWSAs have been

able to advise newer ones through the forum for information exchange

the federation meetings provide. In at least one province, staff

from older RWSAs help train the new RWSA staff. Federations give

the people a stronger voice and a feeling of pride in their efforts.

The BWP concept has proven a model for at least one LGU. In

Bulacan, the PDS has completed, with its own funds, a level I system

based on BWP principles. Two more are in the planning stages.

In addition, many provinces must be given credit for successful

completion of projects. Not only have they implemented the BWP

projects, they have also at times had to battle the sometimes

somnolent bureaucracy of the central BWP which holds the key to

final project approval and with it the release of the reimbursements.

The philosophy behind the BWP has been shown to be workable.

One of the primary achievements of the BWP is the thorough manual of.

operations and procedures that has been developed. This manual,

although somewhat overwhelming because of its massiveness and

complexity, is a good guide to program implementation.

LGU engineers have benefitted from BWP. Standard designs have been

made available to them. Some, through their association with

Sheladia engineers, are gaining an awareness of the importance of

hydrogeological factors. If the proposed hydrogeological training

center is established as anticipated, even more will be exposed to

such knowledge.

Perhaps the most lasting benefit of the BWP is the lessons learned.

BWP has shown that small-scale water systems can be developed

effectively by LGU personnel and managed by barangay residents.

Much has been learned that is relevant for future policy and program

formulation. The Mission should examine successful sub-projects and

design future projects to take advantage of the insights gained

therein. (For a discussion of factors that make success more

likely, see number 9 of Chapter VI, Lessons Learned.)

It must also be emphasized that, although aware of BWP shortcomings,

all or almost all of the involved parties would like to see it

continued and made more effective.

 - 15 -

CHAPTER III

MAJOR RECOMMENDATIONS

NOTE: THE EVALUATION TEAM RECOMMENDS THAT BWP BE TERMINATED ON

DECEMBER 31, 1985 AND A NEW PROJECT BE DESIGNED BASED ON

THE LESSONS LEARNED FROM BWP. THE FOLLOWING
RECOMMENDATIONS, HOWEVER, ARE APPLICABLE TO EITHER A NEWLY
DESIGNED PROJECT OR AN EXTENDED BWP. THE TERM BWP, IS USEfJ
TO REFER TO EITHER A CONTINUATION OF THE PRESENqT PROJECT OR
A NEW RURAL WATER SUPPLY PROJECT.

1. USAID must be very clear about what kind of a water project is

desired. A strong case can be made for using water systems as an

instrument of LGU and barangay institutional development. A project

with this orientation must emphasize training and community

organization.

A strong case can also be made for a project with the primary aim or

providing people with a basic need - water. In this case, the LGU

emphasis should be on construction. RWSAs should be seen as

businesses not as methods of initiating community development.

A decision must be made as to the preferred role and emphasis.

2. BWP must be revitalized. In order to do this, BWP management

must become responsive to the needs of the LGUs. THE EVALUATION

TEAM THEREFORE RECOMMENDS THAT THE BWP DECENTRALIZE ITS FUNCTION

CONSIDERABLY REDUCE ITS CENTRAL OFFICE PERSONNEL, AND INITIALLY SET

UP ONLY 3 TO 4 SMALL REGIONAL DIVISIONS.

Regional personnel should be given the final authority to:

a. approve plans, designs and construction; and,

b. approve and make disbursements to the LGU.

The central Manila office should serve only as a monitor and

conduit of funds.

 - 16 ­

3. THE EVALUATION TEAM REU;OMMENDS THAT THE FIXED AMOUNT

REIMBURSEMENT (FAR) METHOD BE MODIFIED. It is recommended that

consideration be given to a 75% Cash Advance at the start of the

construction; the remaining amount to be released after completion

and acceptance of the project.

The team has two alternatives as to the life of the program and the

recommended financial schemie for each option is:

a. BWP II will end by December 1985.

The existing procedure of FAR method of fund release may be modified

by a 75% Cash Advance and the remaining 25% to be released after

final acceptance of the pruject (water system) by USAID Engineers.

b. BWP 1I is to be extended up to December 1986.

If BWP II has to be extended to December 1986, it is

recommended that USAID should consider the Municipal Development

Fund (MDF) of the Ministry of Finance (MOF) as the conduit for its

fund to the LGUs. The system of 75% cash advance is likewise

recommended. Use of MF fur 1986 will serve as a test for the

process which then may be used in a succeeding BWP program.

4. The implementing agency must be staffed by professionals as

stipulated in the project document. Therefore, MONIES SHOULD BE

RE-PROGRAMMED AND CONTRACTURS SHOULD BE HIRED TO GIVE TECHNICAL

ASSISTAE IN:

a. COMMUNITY ORGANIZATION SKILLS;

b. THE TECHNIQUES AND USES OF MONITORING;

c. PROFESSIONAL TRAINING SKILLS; AND

d. TECHNICAL SKILLS.

5. A COMPLETE MIS STUDY SHOULD BE UNDERTAKEN WiTH THE AIM OF

STREAMLINING THE DOCUMENTATION AND PROCEDURES OF THE BWP

IMPLEMENTATION PROCESS.

Everyone who is affected by the BWP must be involved in the

revision of the BWP. This will mean, for example, that seminars

must be held in which PDS and PEO staff contribute to the re-design

and streamlining of BWP documentation and procedures; and, RWSA

 - 17 -

Officers would be co-designers of realistic regulations and

procedures regarding the formation of RWSAs, the amortization

regulations, etc.

In addition, A CONTRACTOR SHOULD BE HIRED TO ESTABLISH EFFICIENT

RECORDS-KEEPING AND DATA PROCESSING PACKAGES.

6. USAID SHOULD MONITOR THE INSTITUTION BUILDING COMPONENTS OF THE

PROJECI--NOT JUSI THE TECHNICAL COMPONENTS AS IS BEING DONE NOW.

Professional consultants (as opposed to the USAID funded team now

working for BWP) should be hired.

7. TRANSPORTATION MUST BE MADE AVAILABLE FOR PERSONNEL WHOSE JOB

REQUIRES TRAVEL TO MONITOR, SUPERVISE AND/OR SUPPORT PROJECTS. The
evaluation team recommends that monies be re-programmed into grants
in order that jeepneys can be purchased locally, be decorated with
the project logo, and be used to provide the transportation that is

necessary to the success of this project. (estimated cost: 100,000

pesos/jeepney). Other agencies such as UNICEF could also be

approached to provide grants.

8. MAINTENANCE OF WATER SUPPLY SYSTEMS SHOULD BE STRESSED. A

maintenance system must be developed that can ensure scheduling of

preventive maintenance as well as timely repair work. The

evaluation team recommends that those provinces which have

satisfactorily completed at least 5 BWP Level II or Level I1

systems be provided with a mobile maintenance van. (estimated

cost: 17 0,OOb pesos/van including equipment and tools.)

A van would not only provide the physical means of transport to

water works technicians, but would also give a measure of status to

those technicians who traditionally have little incentive to do

maintenance work.

in addition, the evaluation team stresses the need for

rehabilitation and concurs and re-emphasizes the recommendation in

the September, 1984 BWP Audit report:

"USAil/Philippines take action to ensure that the BWP

agency and provincial government units:

a. survey all existing Level 1i and Ill-A water supply

systems to determine which ones are in economic difficulty, or

in need of repair or technical assistance;

b. provide appropriate managerial, financial, and

technical assistance to the RWbAs for all "problem" water supply

systems identified in the survey."

 - lb ­

9. THE PROCESS OF SITE SELECTION THAT IS LLLALY ULFiu-LtU 11i Iic-

BWP MANUAL MUST BE STRICTLY AHERED TO.

a. Level I projects are clearly more appiupiiite in some

tarangays than Level ii or Level iii. It is wiongy, tier rtu'e,
to saddle such communities with systems they cdn ne±L(-ei iAftuiu
or maintain.

L. It is now evident that at sites where tneie is an auey4JALe

alternative source of water RWSAs Go rx)t LUCone tirurluldLy
viable.

c. Political considerations nave teen respuiisiule fui d i ye

number of poor site selections drio consequent systm tdai.Lrtb.
Some responsible non-political Looy must w given ddtluility Lu
make final Oetermination of sites Laseu solely un tecfln i,
social and financial factors.

d. Site selection should not contirue to be cuifireu to orly

those areas that are served by an electric cooperaLive (uL nave
the topography for a gravity system). Uiesel [umps anlu
alternative energy sources make it poissiLie to consiuei dii
needy barangays.

10. A POLICY DECISION MUST BE MADE TO ULTLHMINL TritULLh-LL U-

COMMUNITY PARTICIPATION DESIRED IN THIS PRUJECF. A stuuy siu±u L

mide of the levels arid types of participaiLon ijssiLe.

LGU staff who are involved in implemetation of ub,P piujuuts

mJst be trained and given experience in comnuriLty uryanizztiui dlihu
community development techniques. The evaiddtuiul tecii rucOiIiuIsub
that the services of successful locdl comwuity OigdrizAiuoLr CXpeilb
be used for this training. Such expertise can Le tounu t1lio'UjN Lh(e
staff of Project Compassion: through ilaw lnwtrrutiurid uentei,
Inc.; through Cooperatives Development staff at the Ministry ur
Agriculture and Food; the staff of Philippine wsilness for Wci-di
Progress, etc.

11. ThIE CONCEPT OF THE RWSA SHOULD BE HROAuLNEU. A CUOpelatiVe

Lsed sole-y on 3 water system is not likely Lu prouwue Lnt
community development improvements aesired. HeaiLh, sdnitatiol,
nutrition, and income generating projects ray Le usefui aujUriLts to
an RWSA.
 - 19 -

12.
WATER AND SANITATION ARE INSEPARABLE AND SHOULD BE INCORPORATED

IN THE PROJECT WITH EQUAL EMPHASIS. USAID's HEALTH OFFICL AND THE

MOH SHOULD BE ACTIVE PARTNERS IN ANY RURAL WATER SUPPLY PROJECT.

The evaluation team recommends that a mass media campaign be

undertaken to create the demant for potable water and a sanitary

environment. A commercial marketing agency should be contracted to

run a professional social marketing campaign.

13. Criteria which define "successful" RWSAs and "successful" LGUs

should be set. BWP TARGETS SHOULD THEN BE REVISED TO FOCUS ON SUCH

SUCCESSES RATHER THAN THE NUMBER OF SYSTEMS INSTALLED.

NOTE: The reader is referred to Chapter V for a discussion of

recommendations dealing with decentralization and financing

schemes.

 - 20 -

Chapter IV

Lessons Learned

In its seven years of existence, the Barangay Water Program has

accumulated vast amounts of experience. It is instructive to use

that experience as a source of insights. What follows are some of

the lessons that may have relevance for other projects and project

designers.

1. Factors which seem to make success of an RWSA and the rural

water system more likely include the following:

- a water system that is well-designed and

well-constructed;

- community participation in the review of project plans

and in some role of construction supervision;

- community residents with a regular source of income as

opposed to seasonal income;

-
RWSA members with a sound knowledge of the relationship

between water and health;

- community residents who are small landowners, not tenant

farmers;

- a clustered housing pattern, rather than dispersed

housing;

- a community which is relatively homogenous both

culturally and economically;

- a community that has a history of undertaking community

projects;

- a community wherein the traditional water source is

distant and/or scarce;

- a community whose members have some degree of education;

- a community which includes people who have previously

lived in a city with a clear, convenient water supply;

 - 21 ­

- RWSAs that are active federation members;

- RWSA officers who have had previous business-related

experience;

- RWSA activities that go beyond the mere provision of

water and include, e.g., livelihood or health and

nutrition activities.

2. Increasing the size of a project does not ensure that more

beneficiaries are reached. In BWP there has been a negative

correlation between the size and complexity of the project and

the efficiency with which BWP business was undertaken. It would

seem wise to concentrate efforts in fewer LUs at a time and

ensure that they receive all the training and support they

require.

3. Projects will fail if they are based on the faulty

assumption that anyone can conduct training. Project managers

who wouldn't dream of hiring non-engineers to do engineering

work, often think nothing of hiring non-trainers to do training

work.

Project planners must be mack. aware that merely holding a

"training" does not ensure that learning has taken place.

Effective training requires skilled professional trainers.

4. Forms, guidelines and formulas which are intended as aids

to institutional development may be self-defeating. If time and

training has not been given to ensure that the users of the

forms understand the concepts and objectives of these forms, the

users may adhere blindly to the guidelines long after their

usefulness is past. The forms may become an excuse for not

thinking rather than an aid to thinking.

5. When a project is designed around a sector that may have

political overtones, project planners should take those

implications into consideration when defining project

regulations. It is unrealistic, for example, to expect that

provincial governments will close down water systems or enforce

penalties for non-payment of RWSA amortization, when "water is

votes."

6. Rural water supply systems do not always bring the political

benefits hoped for by government officials. In those

communities where because of poor design, poor maintenance, poor

training or poor follow-up, the systems have deteriorated, the

systems may, in fact, become political liabilities.

 - 22 ­

7. When a project requires great input from the LGU level (as

does the BWP, which asks that LGLs do the planning, designing,

implementing of the water system as well as the organizing and

support of the water association), a top down, "don't question"

management approach from the central level is not appropriate.

It stifles LGU motivation and creativity.

8. The "poorest of the poor" will generally not be reached by a

water system emphasizing house connections. Special

considerations and efforts must be planned to reach those target

beneficiaries.

9. USAID institution building programs, if they are to be

effective, should be established in permanent agencies where

skills will continue to be used after the end of a USAID

project. Those central government agencies which have the

lowest salary scales often have the least qualified and most

transient staff. Yet, it is these very agencies where

institutional building components are now housed.

10. Designers of projects which rely heavily on local

participation should: a) have a clear and specific definition

of the community participation, b) make sure counterparts share

this understanding, and c) design specific means for achieving

it.

11.
In addition to these "Lessons Learned" the evaluation team

submits for reconsideration, five lessons taken from Lessons

Learned: Provincial Development Assistance Program, Philippines

(1980). These same lessons could have been drawn from the

experiences of the BWP. They are as relevant today as they were

in 1980. It is hoped that this reiteration will bring them to

the attention of project planners.

a. Development assistance projects whose objective is to

strengthen localities so that they can on their own

identify, initiate, and implement development programs must

contain provision for a phased withdrawal of the project

control agency. Otherwise, localities tend to become

subordinates of a control agency, subject to operational

constraints which suppress initiative and self-reliance,

produce ritualistic compliance systems, prevent

experimental responses to the differential character of

local conditions, and inhibit the development of local

organizational and managerial capacities. In the case of

P AP, it was the effective absence of a central control

agency at a crucial point in its history that enabled the

provinces to achieve "take-off".

 - 23 ­

b. External assistance should be provided in the form of

tangible resources which can be directly deployed under the

authority of the locality.

Real discretion as to allocation of resources provides

local executives with policy and project alternatives, with

agendas of their own and the opportunity to prevent visible

accomplishment in their own right.

c. PDAP-Central's early assumption of responsibility for

the national extension of the program displaced its
original experimental emphasis. As line responsibilities
took hold, experimental effor- and "research and
development" dctivities ceased, and "monitoring and
evaluation" were reduced to pro-forma checklists. Its
primary thrust becFAme that of establishing control and
compliance systems and monitoring clearance and
accountability procedures. When line administration is
allowed to overwhelm experimental effort, opportunities for
systematic learning and error-correction are lost.

d. In projects designed to develop or strengthen local

administrative capacity, care must be taken to select

management techniques that stimulate local administrative

development and to avoid those that tend to establish tight

hierarchical control over localities.

e. Projects intended to build planning capacity at the

level of local government must guard against overloading

the structure of local administration with requirements

that are at best marginal. Localities are saddled with

numerous distinct planning responsibilities, many of which

are of no value to them and cannot be justified on grounds

of training or "learning by doing".

 - 24 -

CHAPTER V

DISCUSSION OF ALTERNATIVE PROPOSALS

The request for water projects by LGUs is second only to roads. For

barangay residents, water is often the number one concern. Given

the need for potable water in rural areas, the Barangay Water

Program will undoubtedly continue in one guise or another--with

funding from one donor agency or another--for some time to come.

Although the evaluation team recommends a re,'ised rural water supply

and sanitation project, options are given for several scenarios.

Section A of Chapter V outlines the essential components of either a

new project or an extended BWP.

1. Decentralization and a cash advancement system.

2. Mass education campaign relating water and health.

3. Community Organization.

4. Training of Trainers.

5. Integrated Cooperative Approach.

Other common essentials include:

0 the establishment of management information systems;

O revision and streamlining of the Manual of Operations

specific to the needs of participating regions/provinces;
and,

0 the reprogramming of loan and grant monies for community

organization, health/sanitation, social marketing campaign,

training of trainers, and transportation.

Section B describes the existing BWP II program implementation flow

and the existing procedure for fund release to LGUs.

Section C discusses the Immediate Steps to be Taken.

OPTION ONE: short term (until Dec. 1985)

OPTION TWO: long term (with loan extension to Dec. 1986)

 - 25 -

Section D is the discussion and recommendations for reorganization

possiblities.

OPTION ONE : Remain in MLG but decentralize

OPTiON TWO : Reorganize under RWDC

OPTION THREE : Reorganize under another agency, such as, NEDA,

Ministry of Agriculture and Food, or the Office

of the Prime Minister.

A. ESSENTIAL COMPONENTS OF ANY NEW DESIGN FOR A REORGANIZED BWP

1. Decentralization and a cash advancement system.

A continued BWP should focus its efforts directly at the

provincial/city LGU level, with minimal central staff. The

evaluation team finds that the real incentives and commitment to BWP

are at the LGU and barangay levels and it is there that both the

human resources (for training and support) and the capital resources

(e.g. vehicles) should be placed. The structural and organizational

arrangement that will most efficiently get the finances and the

human resources to the LGUs should be employed.

It is recommended that Fixed Amount Reimbursement (FAR) procedure be

dropped or modified. The cash advance method should be considered

at the rate of 75% of the costs to be released at the start of the

construction; the remaining 25% to be paid after completion of the

project.

2. Mass education campaign relating water and health.

According to the TAMS' Study of Infrastructure Investment and

Maintenance in the Republic of the Philippines, December 1984,

"waterborne diseases are among the leading causes of illness and

death in the Philippines. Diarrhea was the second most important

illness in 1979, dysentery was eighth, and infectious hepatitis was

tenth. Among causes of the death of infants under one year,

diarrhea was third."

The relationship between water, sanitation, and health is undeniable

but barangay residents' desire for water is prioritized by the need

for quantity, convenience, and taste. ihe general population is not

sufficiently educated to the need for safe water.

 - 26 -

To increase the demand for potable water and to encourage commitment

to water, health and sanitation efforts, a mass education

campaign--preferably a professionally organized social marketing

campaign--can be used. It could include:

- an intensive radio campaign extolling the virtues of

potable, convenient water supplies;

- video/slide shows of successful RWSAs;

- exchange visits between successful RWSA staff/Board members

and potential barangay representatives;

- photonovellas/drama comics distributed in barangays

demonstrating the value of clean water systems and good

sanitation; and

- songs and folk dramas produced and peiformed.

3. Community Organization

One essential, but to date missing aspect of the Project, is a

concentrated effort in community organization. Community

organization is the key to successful formation and continuation of

RWSAs. It requires manpower and a relatively long term, intensive

commitment.

Community organizers must be included on a full time basis:

a. LGUs can hire them or have them detailed from regional or

municipal development staffs;

b. Positions (on a contract basis) can be financed as

technical assistance from project funds;

c. Community development workers in each BWP barangay can be

given responsibility and training for water and sanitation

activities.

The RWDC now contracts the Philippine Businesses for Social Progress

(PBSP) and Project Compassion to train their technical people in

community organizing skills. PSP is designing (for RWDO)

an

institutional development framework for developing community based

organizations (co-ops) with defined terms, roles, and a process for

attaining goals. PUSP then provides staff training. USAID's Local

 - 27 -

Resouces Management program also uses this firm and additionally,

the International Institute for Rural Reconstruction; the Philippine

Movement for Rural Reconstruction; and the University of the

Philippines to provide training, community organization and

management skills.

4. Training of Trainers.

Any rural water project must have professional trainers of trainers

who will train the LGU staff who ira turn train the RWSA Board and

staff. AID's Water and Sanitation for Health (WASH) Project based

in Washington, D.C. is highly recommended to determine the training

needs of BWP, establish a training program, and implement the

training of trainers.

Project Compassion serves as an example of the type of effective

training that BWP now lacks. Their training program for community

organizers takes four to six months: one month training at their

center in Bohol, Visayas followed by one month practicum in a nearby

locat-on; then another month of theory and feedback on practicum

follc-ied by a month's practicum in the trainee's own base site.

With this type of training, the LU community organizer and six or

more municipal and/or barangay people could become skilled BWP

resources. After qualifying, the LGU Community Organizer could act

as lead trainer with assistance from the other six. Eventually, the

contract firm would be phased out by these new trainers of trainers,

and the institutional building of development skills would be firmly

implanted in the province.

5. Integrated Cooperative Approach

It has been pointed out by several experienced sources that RWSAs

would have more chance for success if they were set up as a more

comprehensive, integrated rural development cooperative. A

cooperative, based on providing a water system alone, does not

provide motivation for continued community involvement once the

system is set up. A viable and active RWSA may need other related

activities such as sanitation projects; livelihood projects such as

piggeries, poultry, gardens, hollowbrick making, fish and duck

raising; and//or environmental projects such as agro-forestry or

reforestation.

 - 28 -

The concept of establishing cooperatives (RWSAs) to operate,

maintain, and manage water systems is a valid one. It should,

however, be reconsidered from the standpoint of whether it must be

solely for the purpose of providing water. Other approaches, such

as using already existing community based groups may be more

effective.

Setting up new cooperatives sometimes disrupts community

equilibrium; whereas integrating with existing groups strengthens

capacities. In communities where there is no existing organization,

water can be the entry point for a cooperative but, in that case,

encouragement must be given for activities which will sustain the

cooperative after the water is provided. When nutrition or

livelihood projects work together with water and sanitation, there

can be tangible, quantifiable effects on a community.

To summarize, any reorganization scheme for BWP must address these

factors:

1. The need for decentralization and a cash advancement system;

2. The need for a mass education campaign ialating water and

health;

3. The need for improved community organization and community

development work;

4. The need for professional trainers;

5. The need for an integrated cooperative approach.

B. PRESENT IMPLEMENTATION FLOW

The program implementation flow for BWP II is illustrated in Flow

Chart I.

The existing procedure for fund release to LGUs is illustrated in

Flow Chart Il. The detailed explanation of this system is in

Appendix A at the end of this chapter.

To complete the process for the release of funds to LGUs, the

present procedure entails an average of eight months. BWP prepares

Request for Advice of Allotment (RAA) to OBM on a quarterly basis

instead of monthly. Claims for reimbursement receiveo during the

first month of a quarter have to wait for the end of the quarter to

have these claims included in the RAA to be submitted to OBM.

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 Page 28a
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 EXISPNG PROCEDURE FOR
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( FLOW CHART ) page 28b
Chart Ir
MNIMINISTRY
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.. . . ...
Request for Obligation of Allotm nt
-
-.
 - 29 -

All RAA and Disbursement Vouchers (DV) have to be coursed through

the Internal Control Unit (ICU) of MLG. This unit is authorized by

the Deputy Minister to do the liaison work between MLG and OBM. No

DVs are processed by the other MLG divisions (Budget, Accounting,

Internal Audit and Cash) without the signature of the Head of ICU.

BWP relies on the ICU to attend to the flow of RAAs within OBM and

DVs within MLG.

C. IMMEDIATE STEPS TO BE TAKEN (UNTIL BWP IS REORGANIZED)

C. OPTION ONE: Short Term (u il December 1985)

The evaluation team recommends terminating the project loan on its

completion date in December 1985, with the intention of continuation

of BWP as a reorganized project in 1986. Whether in the MLG or

elsewhere, these steps should be followed:

1. All inoperable systems should be rehabilitated and systems

under construction completed.

2. Bring in a consulting firm to BWP-PMS to reinstate good

management practices.

3. Hire a consulting firm, which in consultation with LGUs,

will simplify and streamline the guidelines and forms used

by BWP.

4. Contract professional trainers to reorganize BWP training.

5. Contract the setting up of systems for information

management.

6. Contract a firm to begin training of trainers in community

organization. The firm will work with LGU trainers or

community organizers and selected barangay residents.

7. Contract a firm to create a social marketing campaign.

8. Phase out present PMS by end of the year.

9. Institute a modified FAR system of 75% advance and 25% paid

on construction completion. (For a graphic description of

this process, see Flow Chart Ill: Centralized

Organization: Funds Released through Manila Office of

Implementing Agency. For BWP-PMS financial personnel

requirements and details of the simplified cash flow system

see Appendix B at the end of this chapter.)

 CENTRALIZED ORGANIZATION
FUNDS RELEASED THRU THE MANILA OFFICE
OF THE IMPLEMENTING AGENCY page 29a
Chart if
FUNDS RELEASE FLOW CHART
A G E N C Y OFFICE OF BUDGET BUREAU OF
G O V E R N M E N T Aku MANAGEMENT TREASURY
USAID AUDIT CASH DIV. (OBU) (BTR)
UlfU PROJECT MGT. STAFF BUDGET DIV. ACCOUNTING DIV. INTERNAL
(LOU) I A

DDCU-~ DOCU-

FINL cCSTM

;lFA L I

RRJfC AvRCA
RCA

~~ii:i~i~j To iscLuds all pro)cct 9 "CeCttifa.of

t
CHECK wIlt firm
AHlh of C CK
rh e ead ItE

I RAAA

RAAA

AA7

_____________________Legend:
O lb~re
AA le
Ollpluldlf0 dldtI fil-- ----­
l Flow of Docu nt
V
. Basis Of Preparetio r
RCA Request for Cash Advenes
ROA Request for Advice of Allotment
CODd11
0 Certific,0te of Depoeit
. L)A Advice of Aliotimeot
-TjA--CDC Cash [Xsbwsem~ C'imils

I" [uew 0V Dishursomomt Voecher

[ OA ftimst for Obiqefilm of lasn
TW Tnrnery 01m
tot US. Dtluof
Philippine Pame
 - 30 -

C. OPTION TWO: Long Term (with loan extension through December,

1986)

In the evaluation team's view, the only basis for extending the loan

into 1986 is the intention of decentralizing within MLG, which the

team advises against. (See D option one.) However if USAID chooses

to extend the BWP II loan through 1986 with the intention of

reorganizing BWP/MLG, the evaluation team recommends reducing the

number of FMS, beginning decentralization and using a revolving fund

such as the Municipal Development Fund. The following steps should

be taken:

1-6 (the same as for C. OPTION I)

7. Contract a firm to create and begin implementation of a

social marketing campaign regarding the relationship of

water sanitation and health.

8. Reduce the number of PMS positions to a maximum of 8

qualified professionals: a new project manager, budget

personnel, staff to coordinate and consolidate papers from

LGUs and the management of information systems. Other

necessary professional services should be contracted out,

9. Begin intensive effort to complete ongoing systems and

implement planned ones. Bear in mind that for 45 days

before and for 45 oays following the election in 1986 no

new construction contracts can be awarded.

10. Begin the decentralization process through MLG regional

offices. (See below)

11. Consider the use of the Municipal Development Fund (MUF)

for sub-project financing. ihe cash advance procedure

could be used with 75% advdnce and 25% paid on construction

completion. (See Flow Cnart IV: Centralized

Organization: Fund Release Through MUF. For explanation

of financial procedures, see Appendix G-at the end of this
Chapter.)
 CENTRALIZED ORGANIZATION
FUNDS RELEASED THRU THE MUNICIPAL DEVELOPMENT FUND (MDF) pageo0
FUND RELEASE FLOWCHART Chart M:
LOCAL GOVERNMENT CENTRAL P~aECT MINISTRY OF FINANCE OFiE OF BUDGET BUREAU OF TREASURY PHILIPPINE NATIONAL BANK
LxfrT (LOU) USAID OFF CPPROJECT8
CP):,TEE COMMIT ERM OLGF - CFMU AND MANAGEMEI'gOBM) I (BTR) (PNB)4HEAD OFFICE

L 2 2 For Approal For Consolidation

3 3<
F. Fi FPF
Appova

w~w FOR APPROVAL

I
I --

I coo COD

AA LA 7

,~

For CA 1 Fo; CA

2 File

~~LEGEND: R

---­
• ~wof
.,-, Daoma
B~esu or Pneparwas
CO
S
Commldatedl budgle
US Dolar
CA
TW
Cash fva~ncd
Treasury Warrant
CLOF CfW 41110 of Lea COD Cwrllflcc mrofEIlt NFR Meon of FWW~ Release
C@Nh ib nds mf.: AA Asihice of AUll aa CRA Credi1t Advice
I d WFP WIN a F r CDC Cash Diewhmeme Celing 1P Ptillppine Pesos
Pro" ComTtion - cwp cmolbad wor a Fkr. Pan .. JV Jounal Vegeher
 - 31 -

D. DISCUSSION AND RECOMMENDATIONS FOR REORGANIZATION

D. OPTION ONE: Remain in MLG but decentralize.

The evaluation team does not recommend continuing BWP within MLG

even if activities can be decentralized to the MLG regional

offices. However, for information of decision-makers, a brief

description of MLG's history, including its steps toward

decentralization follows.

In February 1982, through Executive Order No. 777 (See Annex H), the

Ministry of Local Government and Community Development's Bureau of

Community Development was transferred along with its functions and

responsibilities to the Ministry of Human Settlements (MHS). The

functions of community organizing shifted to MHS. The MLGCD became

the MLG with fewer development activities in its portfolio.

The mechanisms for BWP decentralization were put in place through

MLG Circular 83-2 of January 26, 1983 (see Annex 1), signed by

Minister Rono, which calls for the decentralization of special

projects. "The responsibility of providing technical assistance,

monitoring, evaluation, and supervision of special projects (BWP)

shall be assumed by the regional and field officers of the Ministry."

Further, the guidelines on the implementation of decentralization,

were laid out in MLG Circular 83-5, March 9, 1983 (see Annex J,.

MLG Circular 83-27 dated December 6, 1983 calls for immediate

development of procedures by BWP to oring all activities down to the

level of regional and local offices, retaining at the Central Office

minimum activities (see Annex K). However, despite this Circular,

BWP remains the only USAID funded, PDAP-related project, still

centralized in the MLG.

Conversations with MLG Officials have indicated a belief that the

MLG regional officers would like a more active role in BWP. One

official cites regional officers recent experience and capabilities

with other decentralized projects and suggests USAID make

decentralization a condit.ln for extension of the BWP 11 loan or for

a new project.

If this option of decentralization with MLG is chosen, the modified

FAR system of cash flow could be implemented either using MD­

procedure or funds released through the implementing agency. (Flow

Charts V and V1)

 DECENTRALIZED ORGANIZATION
FUNDS RELEASEDTHRU THE MUNICIPAL DEVELOPMENT FUND (MDF)
FUNDS RELEASE FLOWCHART Char "O
Chart M
FlHILIPP1N E RATIO-
LOCAL REGIONAL CENTRAL PROJECT MINISTRY OF FINANCE C MOF ) OFFICE OF BUDGET BUREAU OF NAL BANK (PNB)
GOVERNMENT OFFICE USAI D OFFICE PRJECTSIEERINGO*MWITTEE OLGF - CFMU 1MANAGEMENT(OBM) TREASURY(BTR) HEAD OFFICE
UNIT I ,

2 For Approval For COflso OIdoio

For FileS

orowvalgt rcWFP ' 4 CFI rP

I a!
Ir- - -

I COO . COD

/
AA
-7 1A A

-z jlv
L 2v

"TF"oC
i

ile
TWTW

NFR I MFR (e1 (p

Op e.%operate
a e ck~I" Comm
UR 2r
" F iIW i 1
fo eamb LOU can
4kFor File

LEGEND:

D Floewof Documents CDC Cash Disbursement Cailing 1P Philippine Peso

I . ...> Basks of Preparotion JV Journal Voucher 0 U.S. Dollr

WF P Work B, Flaecln Plan CA Cash Advance OLGF-C Office of Local Govrnmenm Finance

a CW FP Cmonsildited Work & Flsofalof Pipe 1W Treury Waroant Cer"r Funds Mceormeni Unit

IP} COD Cerfific of DeposIt NFR Notice of Fied Rleasos

For payVl.I of Prec

ot C0stnollrfi AA Advice of Aliotment CRA Cedit Advice

 DECENTRALIZED ORGANIZATION
FUNDS RELEASED THRU THE MANILA OFFICE
OF THE !MPLEMENTING AGENCY
FUNDS RELEASE FLOWCHART Chr 2r
LOCAL GOVERN- REGIONAL G O V E R N M E N T A G E N C Y OFFICE OF BUD- BUREAU OF
MENTUNIT MW OFFICE USA ID PROJECT MGT.STAFF BUDGET DIVISION ACCOUNTING DIV.I INTERNAL AUDIT GETAND MANAGE
CASH DIVISION MENT ( OBM ) TREASURY(BTR

FD Ueelqie I I
For endum To~ l ~m,¢

FiFe

RCA RCA C

To loctude al pv*f wi

Final CRti as of theA

end of each mntA.

COCD

Endosed by WP For Ile

Project bMl
ogermnd signed
Deputy Mbiiter

4 File~
0LEGEND:
G"
turash
- Floor of Document
o Preparation
R CA fie".to CooksAdelce
RAA Re 0e 11drYAdvice at AlU.lten
Dv COD CertihefetofDeposit
AA Advice ef Aliefmt
CDC cook Dieloreetret Coming
Ov
D DVDvDV Disbursement vousher
ROA Rueseet Ou Obiqlarloa of Aklment
sipTW Tremewy Werreee

TVoersenre TW P

(~C". ptyti.OsterS Minister

 - 32 -

D. OPTION TWO: Reorganization under WUL.

The evaluation team considereo the reorganization of bVP unuer uIL

Rural Water Works Development Corporation (HWLC), as permanent
planning agency for rural water supply (see Annex L).
The following discussion explains the RWDu operation, wny the
evaluation team considered it, and why it is nut recommenueu.
The RWDC and BWP have the same manoate to develop waLei bupp.y
cooperatives in rural areas. Presently all Hwbks are incorporateu
under the RWDC. When the RWoC was estdblisreu unuer tne Minittry of
Human Settlements in 1980, it borrowed riuny of bvP's conrccpts,
including forms and procedures. The two agencies have unuuuLteuLy
remained separate because of different funuing suurces.

BWP is funded by USAID loan monies ano LCUs dre reimLurstu ±LUJu fui
systems bWilt in this program. Rv.DL is a governnent contro±±eu
corporation, with shares of stock nelu by the GP (i.e., t)e UH
provides eqjity, not a Wudget appropriation) with some auuiti1ou.L
assistance coming from UNLCEF for traininy ano from Lhe Vur.u W11K
for materials supply (World Bank monies are at too high a rate of
interest (14%) for the RW[X so tre ioan ironies are wrruweu Ly the

GOP and reloaned to the RWDC at 4%). Unuer kWUL terms, the

commnity provides 10% of the cost of a system in lawr or kinu.

RWDC provides 90% loan to the community through the rnaragement of
the local electric cooperative which is responsirue for cuilectLng
rates, including the amortization payments. The e.leLtric

coonerative's incentive is a 10% share of tne anoitizato

collected. The General Manager (General Peoro G. uunioi) of the hvbu

is also the administrator of the National Eiectrification

Administra tion

The RWDC is the funding agency. The LGU selects Larangays, uebl±yns
systems, and supervises construction. LG incentive is the 'bptbub
per household collected for design services. The provirnial Water
Works Commitee sets policies and chooses the implemertor witrln LIe
LGU (whether PDS or PEG or other). The HkNUL senus tne CaSli aw
materials to the electric co-op. The LUrangay chooses trhe
contractor to constpuct the system.

Although the RWUC "nukes full use of existing reguiur±, prov±ncia±,

and/or local organizatioris" with the intent of strengtnoelii tnei±i

capabilities in planning, designing, ano irpleirtiny rural water

systems, little has apparently been accomplisrieu in tese ales. ir

over four years of operation, with a staff of i6u, tie Lvw rus onLy
60 completed and operational Level £ systems. Tnere dte Uly 4
Level Ills under construction.
 - 33 -

The 1984 equity from the GOP for RWUC was 5 miilion pesos. Ine
salary for the staff was 9 million pesos. There was no money for
project implementation last year. At present auriinstrat±ve costs,
the RWDC would have to have loaned out 250 miliun pesos d 4
interest to break even. The RWDC is rot yet a profit nuKiny
corporation.

Recognizing the duplication and over lapping of ruoes, anu tri

inefficient utilization of resources among LJdA, the etiupol rir
Waterworks and Sewerage System (MWSS), HVLX, tLULl dn bvaP,
representatives from these agencies pLus rLDA arno the ,vnistry uf
Finance met in 1983 and agreed to clarify rules anu streamiine
functions. It was agreed that with the eno of the impiiernta lOr or
BWP in 1986 (assuming that USAID woud stop funuirig bPH) oP wuu LU
join forces with this unified sector for water ueveiupierit drfu
provide the institution Luilding and trainiig for iWbAs. This
memorandum dated August 23, 1983 (See Annex M) was signeu Ly i Lu
Deputy Minister Salvador Socrates. This effort was eviuerniy in
response to a reqest from the orld bank reyaruiny the hWra hdtez
Supply and Sanitation Project Loan No. 2206-FH. There seenms to w
some reluctance among the involved agencies to act on the finirrinui,.

Thus, although a contingency plan for BWP has been fuimulateu Ly tit
GOP, the lack of funds (without USAID) for uperdtiny BAP leaves the
plan unrealistic.

In addition, the team feels that RWDC lack of proyress, lack uf

funds, lack of concern about amortization payments, its centralizeu
organization and over-staffing disqcaiify it from cunsiuercuitlr as a
home for a vital new BWP.

D. OPTION THREE: Re-organization unoer dr-KDher ayercy

The evaluation team recommends that USAIU decentraize bvP triuurt

an agency such as: (1) NEDA, (2) the Ministry Of Agricuitue Anu
Food, (3) the Office of the Prime Minister (iatiunl uouici± foi
Integrated Area Development NACiAD) or (4) the ilriistry of deF±ae .

With the reorganization, the team recommenos an initia± fows uI

only four regions, a few provinces in eacn. RteyiuHs ariu p1uvirces
vary in their strengths and cdpabilities in project planvany,
design, and implementation and the stronyest sreu±u Le ueve±opeu
first. "Graduation" criteria shoulo Le est-Lliisneu in cunwita-ion
with RDCs. When each of the first provinces/regions grdouates, an
adjoining province/region can Le incluueu drawing on the: resources
of the graduating province.
 - 34 -

In those provinces not selected for these initial intensive efforts

the focus should be on rehabilitation of inoperable BWP systems and

strengthening of existing RWSAs.

The financial system recommended is either the MDF or a direct cash

flow system (See Flow Charts V and Vl.)

A brief description of two USAID programs, the Local Resources

Management Project (LRM) and the Panay Unified Services for Health

(PUSH) follows. Both projects use a decentralized approach through

NEDA. They are presented as illustrations of how BWP or a new

project might be organized.

NEDA/USAID's Local Resource Management Project

The LRM is an interesting model working through an ad hoc committee

of the Regional Development Council (in three regions involving

seven provinces). A description of LRM project components follows

as a possible framework for a reorganized BWP.

implementation procedures emphasize:

LRM

0 Working through existing organizational structures for

planning and implementation.

0 Working in consonance with (OP regionalization policy.

0 Reliance on existing provincial capacities, which will be

further strengthened by technical assistance and training

as necessary.

0 Local mobilization of private sector assistance and local

resources (human, material, financial and natural).

0 Continuous evaluation based on intensive monitoring.

a. The Lead Agency (NEDA Central and Region)

The Deputy Director-General of NEDA serves as Executive "irertor for

implementation of LRM. The Assistant Director General for legional

Development in NEDA is the Deputy Executive Director for the

project. He is assisted by an LRM project staff mostly drawn from

existing NEDA offices, who serve as the central management aIrd

technical staff unit for LRM administration and coordination of all

 - 35 ­

activities across the three participating regions. The NEDA

regional project management and technical staffs function in much

the same manner as the central management unit but operating across

provinces. (See LRM Organizational Diagram on preceding page.)

NEDA project staffs work closely with the Regional Development

Councils. NEDA coordinptes field activities, including technical

assistance, research, training, monitoring and evaluation.

A key function of NEDA as it works with the Regional Development

Council is to assist provinces to coordinate actions of national

agencies and local novernment Lnstitutions which cut horizontally

and vertically. Another is to establish institutional arrangements,

systems, and processes for encouraging private sector involvement in

deveiopment activities.

b. Regional Development Council (RDC)

Regional Development Councils have been established to coordinate

the implementation of policies, programs, and projects in the

regions. The RDC is made up of all the governors of the provinces,

mayors of the cities, and Regional Directors of the national line

agencies. The RDC structure provides an important mechanism for

linkages with all national line agencies, councils, boards, and

authorities working at the subnational level. However,

implementation of specific government programs and projects remains

the responsibility of line agencies and local governments, i.e.

provinces, cities, and municipalities. The NEDA Regional Offices

serve as the technical staff of the RDC.

The RDC is the designated supervising and coordinating agency of

subnational government activities. Under LRM, the RDC will:

(1) assess and select provinces to participate in LRM based on

their commitment to LRM goals and objectives, relative need

for resources, and capacity to implement and maintain LRM

systems and processes;

(2) in consultation with NEA and OBM, make budget allocations

among participating provinces;

(3) coordinate regional line agency activities in support of

LRM field operations, including subproject design-and

implementation;

(4) review provincial strategies and annual program plans

leading to release of funds for provincial subprojects. In

this regard, the RUC will:

 - 36 ­

approve annual provincial LRM budget levels based on

approved strategies and past LRM subproject

implementation performance;

request release of funds by the OBM based on favorable

review of annual program plans and provincial

subproject proposals;

hold provinces accountable for proper and effective

use of LRM funds based on monitoring and evaluation

reporting.

provide reports to OBM, COA, and other national

agencies interested in LRM activities.

c. The Province

The province is the focal point for most LRM planning,

implementation, monitoring, and evaluation activities. LRM/NEDA

disburses funds through the MDF. See Flow Chart V: Decentralized

Organization: Funds Released through MDF.

NEDA/USAID's Panay Unified Services for Health

The Panay Unified Services for Health (PUSH) Project of USAID has

also successfully worked through NEDA on a decentralized basis, but

with a direct cash flow system. PUSH may provide an alternate model

for a reorganizea BWP.

NEDA provides the RDC and provincial governments with advance

funding for training, project support staff expenditures, and

construction of sanitation facilities. NEDA also monitors the

fiscal procedures.

The MOF establishes a regional trust fund and special provincial

trust funds. The Commission on Audit audits these funds.

The Regional Development Council, with an executive committee of 14

Governors and Directors of line ministries have the responsibility

to formulate program policies and implementation guidelines and

provide the funds to LGUs. The RUC has no implementation

responsibilities. The PDS of each province is responsible for

implementation. Municipalities actually handle budgeting of funds.

 - 37 -

The NEDA regional office is mandated to be the administrative and

technical backstop for the RDC. The NEDA regional office already

monitors and evaluates all development projects in Panay Region.

PUSH project staff works under the RDC Executive Council as resource

support. This staff is directly involved in day to day project

management. The five staff members are on annual contracts subject

to civil service regulations and pay classifications. USAID has

paid their salaries. (See following: Schematic Organizational

Chart for PUSH Project.)

For a reorganized BWP along PUSH lines, technical assistance for

training, management, monitoring, or support can be hired for the

regions or provinces through organizations such as: the Asian

Institute of Management (AIM), the Lconomic Development Foundation

(EDF), the Philippine Businesses for Social Progress (WES?),or the

Development Academy of the Philippines (DAF').

DAP is the management consultancy arm of thp GOP and can be hired to

monitor regional staff. DAP trains all GOP career executive

services officers.

PUSH funds flow directly to the regions (see following "Funding and

Reporting Flow Chart"). See Flow Chart VI: Decentralized

Organization: Funds Released through Manila Office of Implementing

Agency for detail of possible BWP procedure. Direct Cash Flow is

same as the simplified cash advance (11, Option One) except the

regional office, rather than the central office, has authority to

approve projects and release the funds to the LGU. The function of

the Manila office is only to coordinate and consolidate subproject

papers from the regions. A minimal staff is required.

2. Ministry of Agriculture and Food (MAF)

Decentralization of BWP might also be appropriate with the MAF which

has already decentralized. It has experience in development of

cooperatives, and has a qualified, experienced training staff.

Potable water projects could--and do--tie in closely wi.:h on-going

MAF nutrition projects. Efforts are being maoe to improve the

nutritional status of farmers through rural improvement clubs which

are connected to Mothers' clubs. This might be an ideal conduit

through which to increase women's role in water, health and

sanitation.

 - 3b ­

3. The Office of the Prime Minister

A decentralized BWP might also be housed in the Office of the Prime

Minister, under the National Council for Integrated Area Development

Programs. Experienced staff are in place in each region. Water

projects would fit in with existing projects as another component of

integrated development.

4. Ministry of Health (MOh)

The Ministry of Health has been decentralized and is building the

capabilities of regional and provincial staff. Advantages to

working with MOH include the relationship of health and water and

tL- number of healt" personnel already in the barangays. Another

major advantage is the existing financial structure wherein monies

flow directly to the provinces without delays in the central

agency. The innovaticn in this approach would be the coordination

of health officers and the PDS in project planning, community

organization, systems design, construction and monitoring.

 .. 39 -

APPENDIX A

Explanation of Flow Chart If: Existing Procedure for Fund Release

to LGU

The Fixed Amount Reimbursement system prescribes that Local

Government Units (LGUs) have to put up first the funds to finance

the cost of the water system. The agreed estimated cost in the

BW-IO (Noti(,, of Approval) is designated as the agreed amount for

reimbursdiknt by the Government of the Philippines (GUP). The GOP

reimbth:7. the LGUs the agreed amount in Philippine currency when

the s ect (water system) is completed in accordance with
approv ;p...dns and specifications. After USAID acceptance of the

subproject, completed as per approved plans and specifications,

requests for reimbursement will be submitted by MLG to the NEDA with

accompanying certificate of payment, certificate of final acceptance

duly signed by the construction supervisor and pictures of the

completed water system. Upon receipt by USAID of a formal request

for direct reimbursement from NEDA with supporting documents, USAID

will arrange to have the check issued to the Bureau of Treasury.

Reimbursement is made in pesos.

The detailed procedure of funds release to LGUs is presented as

follows:

a. LGUs submits to the BWP/FMS the required report of

completion to include duly accomplished bW-13 (Notice of Completion)

BW-14 (Picture of Completed Projects) and BW-15 (Claim for

Reimbursement). BWP/PMS checks adequacy of paper requirements and

prepares summary of claims received during one calendar quarter. A

Request for Advice of Allotment (RAA) is prepared to cover all

claims for reimbursement received during a preceding quarter. There

are cases when the reimbursable amount for a soon to be completed

project is included in the request for AA so BWP/HMS does not have

to wait for the end of the next quarter for them to include the

reimbursable cost in another request for AA. This practice is a

case to case basis and is under the discretion of the Project

Engineers and Project Manager.

b. The RAA is coursed thru the Internal Control Unit (ICU) of

MLG. This unit is handling the liaison work with the Office of

Budget and Management (OBM) of all MLG's special projects under the

Deputy Minister. The head of the unit has the only authority to

deal directly with the OBM, although in some extreme cases, he has

an authorized representative to do the job in his absence.

 - 40 ­

c. OBM issues Advice of Allotment (AA) and notice of Cash

Disbirsement Ceiling (CDC) to the Internal Audit Division of MLU ano
a copy of the AA and CDC are furnished to MLG's Accounting Uivision,
Budget Division, Internal Control Unit, and BWP/F.S.

d. On the basis of the AA and CDC, BWP/FNS prepares the

Disbursement Voucher (DV) and Request for Obligation of Allotment

(ROA) for each of the project and payable to the LGUs concerneo.

The DV is signed by the Project Manager and approved by the Deputy

Minister.

e. DV and ROA are forwarded to Internal Control Unit (4LU) for

recording to control book and signed by the head of the unit. UV is
handcarried by an ICU staff to MLG'S Budget Division which office is

located in another Wuilding about 6 kilometers away from BWP/FS.

Budget Division allocates funds to that particular expenditure as

indicated in the voucher.

f. DV and ROA are submitted to Accounting Division for the

checking of supporting documents and recording of accounting

entries. DV and ROA are signed by MLG's Chief Accountant.

g. DV and ROA are forwarded to the Internal Audit Uivision of

M ' for the necessary pre-audit of expenditures and signed by the
11-.d of the Office.

h. On the basis of the audited DV and ROA, Cash Division

prepares a Treasury Warrant (TW) (check) in favor of the LG4s
concerned. TW is signed by the Deputy Minister anu countersigned by
the Minister.

i. Signed TW is released by the Cash Division to the interna±

Control Unit who forwards the TW to the BWP/FNS.

j. BWP/FMS releases TW to the LGUs. In cases where L6Us have

deficiency in the documentation requirements for the completea water
system, BWP/FHS defers issuance of the TW until compliance of
requirements.

 - 41 -

APPENDIX B

Detaileo explanation of simplified cash flow system supporting Flow

Chart III: Centralized Organization: Funds Released through Manila

Office of Implementing Agency.

a. LGb submits to BWP bid documents of project for evaluation

and determination of final costing.

b. Upon determination and approval of project final costing,

BWP prepares Request of Cash Advance (RCA) for all approved projects

for that month with approved final costing and submits to USAID.

Simultaneously BWP prepares Request of Advice of Allotment (RAA) and

submits to the Office of Budget and Management (OBM) for the seed

money and the 75% cash advance. (BWP should be authorized to assign

a particular personnel from its own staff to do the direct liaison

work with the OBM.)

c. RCA is the basis for USAID to release the cash advance to

the OBM thru the Bureau of Treasury and after OBM submits

Certificate of Appropriation to USAID as requirea by the Mission..

d. Upon release of the AA and CDC from OBM, BWP-PMS process

voucher for the approval of the Project Manager and the Deputy

Minister in charge.

e. The voucher should go directly to the Budget Division of

MLG who will certify that the corresponding AA and CDC is in order

and forward the voucher to the MLG Accounting Division for

processing and recording of Accounting entries.

f. Voucher is signed by MLG's Chief Accountant and is

forwarded to the Internal Audit.

g. Internal Audit makes verification and auditing functions

and forwards voucher to Cash Division.

h. Cash Division prepares check in the form of Treasury

Warrant (TW) and present the TW for signature of the authorized

signatory (Deputy Minister or anyone authorized), and countersigned

by the Minister.

i. When TW has been signed, check and voucher are forwarded to

BWP for release to the LGU.

 - 42 ­

j. Release of BW-1O (Notice of Approval) may be done

simultaneously with the MLG's 15% seed money and USAID 75% cash

advance.

k. After completion of the project (water system), LGU who

implemented the project should submit the required documentations to

the Central Office (BWP/PMS) including the claim for the remaining

25% of the Project Direct Cost which has to be reimbursed from

USAID. BWP/PMS has to submit the reports to USAID as required for

the claims of payment. The procedural steps for the fund release

are basically the same as that of the 75% cash advance.

 - 43 -

APPENDIX C

NOTE: basis for the following is Implementation Rules of

Presidentia) Decree 1914.

Explanation of the Municipal Development Fund (MDF) of the

Ministry of Finance (MOF) as the conduit of the funds to the LGUs.

Accompaniment to Flow Chart IV: Fund Release through MDF.

Features of the Municipal Development Fund (MDF) as applied to

the Barangay Water Program is presented in the succeeding

discussions.

1. Rationale of the MDF

The Municipal Development Fund (MDF) was established thru a

Presidential Decree (P.D.) 1914. The fund shall be capitalized

and funded by proceeds of foreign loans, assistance or grants

which are to be made available to the Local Government Units

(LGUs) in the form of project loans, technical/commodity

assistance and grants, performance payments and other

incentives as set forth in international agreements, entered or

to be entered into by the Government of the Philippines (GOP)

with foreign governments and international institutions (IBRD,

ADB, USAID, etc.). This fund shall be the principal mechanism

for long-term financing available for urban/rural services to

all eligible local government units (LGU).

The Ministry of Finance shall administer the MDF provided

that the Land bank, Development Ban! of the Philippines or t'he

Bureau of Treasury may be designated by the Minister of Finance

as the depository, disbursing and collecting agent of the MDF

subject to the terms,conditions and guidelines as the Minister

of Finance may prescribe and in accordance with the p visions

of international and other implementing agreements.

2. Project Organization Structure

a. Project Steering Committee (PSC)

Section 3 of P.D. 1914 provides that any foreign-assisted

project shall have a Steering Committee which shall be composed

of representatives of lead and implementing agencies. (ln the

case of BWP Project the lead and implementing agency is the

 - 44 -

Ministry of Local Government (MLG). In all cases, the Ministry

of Finance (MOF), Office of Budget and Management (OBM),

Ministry of Local Government (MLG), Ministry of Public Works

and Highways (MPWH) 2nd the National Economic and Development

Authority (NEDA) shall be represented in the Project Steering

Committee. The representative of the lead agency (MLG) shall

act as Chairman of the Project Steering Committee.

b. Central Project Office (CPO)

The Central Project Office shall be created and located

within the lead agency. In the present set-up of the BWP

project organization, the Barangay Water Program/Project

Management Staff (BWP/PMS) may be considered as the Central

Project Office. Personnel from the implementing and other

agencies, including local government units (LGUs), may be

seconded upon approval of the Project Steering Committee.

Likewise, upon approval of the Project Steering Committee, the

CPO may maintain extension units at the regional ano/or Project

City/LGU level.

3. Statement of Responsibilities

a. Ministry of Finance (MOF)

a.1 The MOF, thru the Office of Local Government Finance

(OLGF) shall administer the MDF.

a.2 The OLGF shall be responsible for nationwide

coordination and implementation of approved financial

arrangements/operations of projects funded from the MDF.

For the purpose, the MDF shall exercise a dual role: (a)

the administration of the MOF; and (b) the execution of

policies thru direct executive supervision over the local

treasurers and assessors.

a.3 The OLGF shall render technical and consultative

services to the Project Steering Committee, Central Project

Office (BWP/PMS) and LGUs whenever necessary.

a.4 The OLGF shall be responsible for the review and

evaluation of local government financial operations related

to the implementation/execution of project components and

activities.

 - 45 ­

a.5 In coordination with or upon due consultations with

the bWP/PMS, the OL F shall call for periodic financial and
physical reports from LGUs to determine if project
commitments are met and accomplishments are matched by
funds released.

a.6 For the purpose of administering the MDF, there shall

be created within the OLGF a Central Fund Management Unit

(CFMU).

b. Central Fund Management Unit (CFMU)

The CFMU shall:

b.l be responsible for maintaining budget proposals and

financial and work plans submitted by the PSC/BWP/PMS

within the limitation of available balances within MDF;

b.2 prepare cash flow requirements for the MYP and monitor

flow of funds including availments and utilization;

b.3 maintain general and subsidiary accounts/records by

LGIJs and BWP/PMS for each foreign-assisted project.

b.4 have its own support services and keep the accounts of

the CFMU and MOP as separate accounting entities distinct

from the accounts of the MOF-proper;

b.5 request for separate agency and fund codes for the

MOF/OLG-CFMU and MUF from the Office of Budget and

Management;

b.6 coordinate with the Bureau of Teasury as depository

bank of the MDF; and,

b.7 evaluate the impact of programs on local government

finances.

c. Project Steering Committee

The Project Steering Committee shall:

c.1 formulate and prescribc. implementing policies and

instructions for the execution of foreign-assisted projects

in accordance with Loan/Project Agreements and national

laws and policies;

 - 46 ­

c.2 Provide policy direction and guidance to the BWP/FP4S

Manager and provide assistance on matters requiring high

level intervention;

c.3 Review and approve the selection of projects proposed

for inclusion in the program.

d. Barangay Water Program/Project Management Staff (BWP/PMS)

as Central Project Office (CPO)

The BWP/P4S shall monitor and consolidate data from

regional offices and do liaison work with OBM, MOF and

USAID. They should also be responsible for quality control

of materials.

e. Regional Office

e.1 pre-qualify LGUs to receive funds and/or assistance

under the program;

e.2 assist LGUs in the preparation of their over-all plans

and physical programs and the fiscal measures required to

meet their development proposals;

e.3 appraise/evaluate projects and project revisions or

reprogramming proposed by LGUs for funding purposes and

submit corresponding recommendations to the Project

Stetring Committee for approval;

e.4 prepare/review annual budgetary proposals and cash

flow requirements of LGUs and prepare appropriate

recommendations or actions thereon;

e.5 Advise LGUs on problems of implementation and

establish linkages with nther local and national government

agencies;

e.6 organize training programs for LGUs; and,

e.7 review/evaluate impact of projects and, with the

assistance of LGUs, prepare evaluation and other terminal

reports for submission to the Project Steering Committee.

f. Office of Budget and Management (OBM)

The UBM shall release the appropriate Advice of Allotment

(AA), Notice of Cash Disbursement Ceiling (NCDC) pertaining to

the MDF direct to MOF/OLU--CFMU based on the approved Work and

Financial Plan. It shall issue agency and fund codes for the

MOF/ULGF-CFMU and MDF.

 - 47 ­

g. Bureau of the Treasury (BTR)

g.1 The BTR shall be responsible for recording the

proceeds of foreign loans as well as repayments thereof.

It shall notify the Office of Budget and Management (OBM)

and the MOF/OLG-CFMU of the availability of funds from

loan proceeds.

g.2 it shall act as the principal depository of the MF

for purposes of the BWP Projects.

h. Local Government Units (LGUs)

The LGUs shall carry out programs and activities covered by

Project Agreements with due diligence and efficiency and in

conformity with appropriate administrative, financial and

engineering practices and shall provide promptly as needed, the

funds, facilities, services and other resources required for

the purpose. LGUs shall prepare and submit the physical,

financial and other reports required by proper authorities in

accordance with project agreements.

i. Commission on Audit (COA)

The COA shall audit the accounts and operations of the MDF

including all projects undertaken by the LGUs in acccrdance

with existing auditing rules and regulations, prepare and

furnish reports of audit in the manner and frequency as may be

required by USAID as indicated or expressly provided in the

Project Agreement.

4. Procedural Guidelines for Fund Release Thru MF (Flow Chart)

IV)

a. LGUs shall submit their Work and Financial Plan and Budget

(WFP & B) in three copies to the Central Project Office

(CPU) for evaluation and endorsement to the Project

Steering Committee (PSC). Third copy of WFP and Budget is

retained by CPO for file.

PSC approves Work and Financial Plan and Budget. Duplicate

copy of approved Work and Financial Plan and Budget (WFP &

B) is forwarded to USAID as the basis for the release of

loan funds tu the Bureau of Treasury (BTr).

The original copy of WFP & B is forwarded to Ministry of

Finance/Office of Local Government Finance-Central Fund

Management Unit (MOF/OL(F-CFMU) for consolidation of

approved WFP& B.

 - 48 ­

b. USAILD prepares check in U.S. dollar currency to be

deposited with the Bureau of Treasury (BTr).

c. BTr issues official receipt to USAID acknowledging receipt

of funds and prepares Certificate of Deposit (COD) to be

issued to the Office of Budget and Management (OBM).

d. Consolidated approved WFP & B shall be submitted by

MOF/OLLF-CFMU to OBM.

e. On the basis of the consolidated approved WFP & B and COD,

OBM shall release Advice of Allotment (AA) and the

corresponding Cash Disbursement Ceiling (CDC) to the

MOF/OLGF-CFMU, copy furnished the bTr.

f. Based on the AA and CDC, the MOF/OLGF-CFMU shall release

funds to the LGUs thru the BTr in the form of Cash Advance

by means of a Journal Voucher (JV). The JV shall be

prepared in three (3) copies to be distributed as follows:

Original and 1 copy Bureau of the Treasury

Another copy MOF-OLGF-CFMU file

Liquidation of Cash Advance shall be made upon the

satisfaction of Project Completion requirements.

g. The MOF/OLGF-CFMU shall advise or notify the CPO of the

funds released. It shall likewise notify the participating

LGUs of the funds released.

n. The BTr shall issue a treasury warrant (TW) covering such

fund releases payable to Philippine National Bank (PNB)

Main Office (Manila Office) for the accounts of the LGUs

concerned.

i. Based on the deposit made by BTr, PNB shall open a separate

checking account for each LGU and prepare and serve notice

of the corresponding credit advice to the LGU concerned.

j. Upon receipt of the credit advice from the bank, the local

treasurer shall record the cash credited by the PNB in

separate books of accounts.

k. With the credit advice, LGU can issue a PNB check to

finance the project. The check should be signed by the

LGU's treasurer and countersigned by the Governor/City

Mayor.

 - 49 ­

1. After completion of the project (water system), LGU who

implemented the project should submit the required

cocumentations to the Central Office (BWP/FNS) including

the claim for the remaining 25% of the Project Direct Cost

which has to be reimbursed from USAID. BWP/PMS has to

submit the reports to USAID as required for the claims of

payment. The procedural steps for the fund release are

basically the same as that of the 75% cash advance.

 - 50 -

CHAPTER VI

CONCLUSIONS, FINDINGS AND RECOMMENDATIONS

The conclusions, findings and recommendations in this chapter are divided

among three major topics: A. Institutional Development, B. Management, and

C. Technical Concerns.

A. Institutional Development

PROJECT INTENT

Institutional development is, according to the BWP II project paper, a primary

aim of BWP II. It was intended that the project develop the capabilities of

PDS and PEO personnel to plan, design, implement and support local water

systems. It was also, intended that barangay residents Feel a sense of

ownership and responsibility for the system and that they develop the attitude

and skills that would make it possible for them to manage and operate their

water systems in a financially and technically sound manner.

The chief methods by which institutional development was to occur were four:

A) required documentation (77 to 81 different forms are involved); B) required

regulations; C) required training; and D) community participation.

xxxxxxxxxx

A. CONCLUSION RE: R(EQUIRED DOCUMENTAT10N

Solid institutional capabilities have not been built on this paper framework.

Although the forms are very comprehensive, they are merely forms. Substantial

growth requires understanding the process.

A. FINDINGS AND DISCUSSION RE: REQUIRED DOCUMENTAT1UN

The evaluation team's investigations indicate that the BWP required

documentation for planning is being substantially complied with.

Investigation also shows, however, that other of the BWP forms--particularly

monitoring and reporting forms--are often ignored, making BWP participants at

all levels uncertain as to which forms are really important and required,

which are only guidelines, and which are merely superfluous.

 - 51 -

There are differences of opinion about much of the documentation that remains

enforced. Some LGU staff feel that the paper work hampers their efficiency

and slows the implementation process. They compare BWP unfavorably with RWDC

and MPWH water projects which do not require such documentation. Some

consultants have reported that the paperwork process is a disincentive and

needs to be streamlined. What is clear, however, is that the purpose of much

of the documentation is not well understood and, therefore, the carefully

designed fcrms are not achieving their purposes--i.e., to help LGU staff

establish methods of planning, monitoring and reporting.

A. RECOMMENDATIONS RE: REUIRED DOCUMENTATION

A.1 A complete MIS study of required documentation should be

undertaken with the aim of determining which of the required forms are

still necessary and which of those might be consolidated and streamlined.

A.2 Future training must include sessions which teach users the

rationale behind each form; and teach managers how to analyze and use the

information.

XXXXXXXXXX

B. CONCLUSION RE: REQUIRED REGULATIONS

There is wide-spread non-compliance or selective compliance with some of the

BWP regulations.

B. FINDINGS AND DISCUSSION RE: REQUIRED REGULATIONS

0 In the LGUs visited by the evaluation team, all have found it safe to

ignore a number of BWP regulations, commonly including the requirements

for: a functioning and staffed waterworks repair shop; a functioning

provincial evaluation team; adequate monies in the training budget; and

personnel filling the required positions.

0 At the RWSA level, the regulations for amortization payments are

frequently ignored.

O The BWP/PMS level ignores regulations with an equal freedom from

sanction. For example, although Covenant 6 of the project paper reads,

"The implementing agency covenants to conduct annual recertification of

participating provinces", this was not done in 1982, 1983, or 1984.

 - 52 -

B. RECOMMENDATIONS RE: REQUIRED REGULATIONS

It is not clear how seriously non-compliance jeopardizes the success

of the BWP. These deviations do, however, suggest problem areas

thatshould be studied by policy makers. At the very least, a

decision should be oade to enforce or to drop those requirements

which are often ignored. The present lack of decisiveness and

accountability only adds to an already considerable credibility gap.

xxxxxxxxxx

C. CONCLUSION RE: REQUIRED TRAINING

The third means envisioned to achieve institutional capabilities is

training. The intent of BWP was to develop a cadre of well-trained

people who could support, monitor, plan, design, implement, manage,

operate and maintain rural water systems. In order to develop these

capacities, the project intended that national, provincial and

barangay level personnel would undergo effective training.

At the end of February, 1985, four years after BWP Il began, the

intended results of training have not been achieved. There has been

superficial adherence to training principles, but very little

substance in the actual training.

C. FINDINGS AND DISCUSSION RE: REQUIRED TRAINING

Recr,.:1s shows that 41 training courses have been given by the

BW,.i/MS; 57,926 person hours of training have been conducted; and

untold pounds of hand-outs have been disbursed. These figures do,

in fact, compare well with intended project outputs for the end of

1984:

Intended Outputs Actual Outputs

Training programs conducted 36 41

LGU Personnel trained 1,596 1,901
Person hours of training conducted 57,76U 57,926
 - 53 -

If the intent of the BWP is judged not in terms of numbers, but

rather in the more meaningful measurements of the amount learned by

training participants, or changes in their behavior--e.g., moie

professional design work; more effective financial management; more

effective communications, more effective monitoring; faster response

to problems, etc.--then the effectiveness of the hours of training

must be doubted.

A brief look at training-related conditions at national, provincial

and barangay level follows. (NOTE: Recommendations Re: Required

Training begin on page 61).

The Iraining and Capability of BWP/PMS Trainers

There are serious weaknesses in the Training and Organization

Division of the BWP/FPS. Most could have been remedied early in the

project IF the training staff themselves had received proper

training--i.e., IF they had learned to identify training needs; to

formulate training objectives; to design a training curriculum; to

develop training materials; to use innovative training techniques;

to identify performance indicators and develop evaluation

procedures; to administer training records to insure that the proper

participants were trained at the proper time. IF, in other words,

the recommendations from the BWP 1 Evaluation had been fnllowed.

The following findings illustrate the weaknesses of BWP/PMS trainers.

0 Of the 12 people in the BWP/FNS Training and Organization only

one has a degree in education. It is unclear what qualifications

the BWP demanded when hiring trainers. Unlike the hiring of

engineers for engiieering work, however, it was apparently not a

pre-requisite that professionals be hired for the job of

training. (Note: Covenant A of the project paper requires that

professionals must be hired).

0 The project paper recognizes the need for in-depth training of

the FNS. It anticipates that the PMS members will receive a

total of 1,750 hours of training ouring BWP II. To date,

however, only one Staff Development Course has been given. For

five days in 1962, the FMS staff gathered in Baguio for a series

of lectures by Uniersity of the Philippines professors. The

agenda shows topic3 such as: Use of Visible and Audible Codes

for Communications, Speech Preparation; Sociometric Tests; and

An Overview of Speech Communications. The course aimed at

increasing knowledge--not at improving performance. Training

which was intended to equip the PMS with the necessary

organizational, engineering, training and planning expertise has

rot been conducted.

 -54 ­

0 As envisioned in the project paper, on-the-job as well as formal

training was to have been given by LWUA, MWSS, the Development

Administration Training Program, USAlD Consulting Engineers, and

the A & E firm. Only USAID Consulting Engineers (Sheladia,

Inc.) have provided any training.

0 None of the training staff seem to understand or have received

professional training in: Needs Analysis, Task Analysis, Using

Performance/Behavioral Objectives; Training Methods; Evaluation

Techniques, etc.--the standard commonly accepted basic knowledge

and
skills of a professional trainer. Neither have they had

training in Community Organization or Cooperatives Development.

Instead, their specific training for trainers consists of

rehearsals of their speeches/presentations, followed by group

critiques.

0 No performance objectives exist for trainings offered by BWP.

Their objectives are only general statements regarding the

content of the course. The courses are, therefore, not

performance-oriented--only knowledge oriented.

0 Because performance objectives are lacking, the BWP has no

method of evaluating whether the trainee participants actually

learn anything. Lvaiuation to the BWP trainers means asking

particicpants to complete a questionnaire at the end of the

training event. This questionnaire asks respondents to indicate

whether they enjoyed the training; whether they approved of the

lecturers; whether they liked the food and accomodations, etc.

It does not in any way evaluate the effectiveness of the

training because it does not examine what the trainee is able to

do as a result of the training.

0 Curriculum design is not a part of the preparation for a

training event. Instead, an agenda of speakers is considered to

be a training design.

0 Although BWP trainers are familiar with the terms of

participatory training--and sincerely believe that they practice

participatory training--evidence suggests that their

understanding is superficial. None interviewed could discuss

how and when e.g., role playing might be an effective training

tecnnique: how discussions should be prepared or guided; how

small group work should be employed; etc.

 - 55 ­

o
The expertise of the trainers must also be questioned. LGU

staff who have been participants in BWP trainings regularly

the BWP

reported their frustration with the lack of knowledge of

lectures. but if we

trainers.
"They just give their prepared
tell us how to

ask them questions, they can't answer."

"They
complete the documents--but they can't tell us why."

course they

0
LGU participants in BWP trainings complain that every
a

attend is a repeat of the same lectures. The BWP calls it

refresher but the participants call it a lack of innovation.

0
Because courses are not conducted on the basis of needs

analysis, the training agendas show a distressingly similar

series of course offerings year after year.

Many of the

training needs discovered by the evaluation team are not being

with

addressed by BWP trainings. For example, no training deals

and how to

how to monitor; how to record monitoring information;

use monitoring data.
There is no training for community

development and community participation techniques. Managiment

skills have not been taught, although information about

management has been "imparted".

Supervision of construction,

a 1

which is a problem in many provinces, is "taught" only in

hour lecture. Training for maintenance skills is seriously

neglected.

is

0
Training for project planning, design and implementation
conducted by speakers from the BWP engineering division.

Because we don't know the level of PDS and PEO capabilities

before the BWP, we cannot now measure if these trainings have,

in fact, increased the skills of the participants or not. What

is known is that only 11 of the 80 LGUs which have signed MOAs

with BWP have actually completed 3 or more water systems during

BWP Il. This would suggest that full competence (or perhaps

interest) is not yet attained.

o
A fundamental problem in the technical training conducted by BWP

is that the BWP engineers themselves have mostly academic

experience. Thus, they have difficulty in training the more

experienced provincial engineering staff. It should be noted

that any growth in technical skills and knowledge may be

a

result of the on-the-job contact that PEO and PDS staff have

with the technical consultants from Techniks and/or Sheladia.

0
both senior trainers and training assistants interviewed

expressed their belief that their job is dual-fold; first, and

site

most importantly, to arrange the logistics of the training

and, secondly, to impart information. "Imparting information"

the

is seen as merely telling people what to do.

This belief in
efficacy of talking/lecturing is, perhaps the most indicative

aspect of serious lack of professional attitudes, knowledge and

skills in the training division of the BWP/PMS.

 - 56 ­

0 In addition to weakness of skills and knowledge, the BWP/PS

trainers have occasionally demonstrated such poor judgment that

they have infected their trainess with an apathetic attitude.

BWP/PMS trainers have been party to serious violations of

training requirements. For example, in Sinogbuhan, lloilo, a

BWP staff member helped plan and teach a combined pre-completion

and Post Completion training that took place 2 and 1/2 years

BEFORE turnover. In another case, a BWP staff member approved

and took part in a Post Completion training that not only did
not take place at water system site (as required) but consisted
only of a 1 hour lecture about maintenance. None of the
prescribed "hands-on" training was done. Such obvious disregard

for the timeliness and usability of the "information imparted"

leaves some LGU staff with a cynical attitude both toward the

trainings they receive and the BWP regulations.

0 Despite training programs which appear weak, ineffective and

unprofessional to the evaluation 'eam, it must be said that the

BWP/RP1S training staff itself appears to sincerely believe that

they are doing an adequate job. They point with pride to their

"dry runs" before a training; to the occasional revisions of

lectures and to the number of persons-hours of training

conducted. Given the fact that a professional trainer has never

been a part of the training team, their weaknesses are somewhat

understandable. (Note: The training consultant Yho has been on

the staff for 5 years is not a trainer).

Many of the BWP/PNS training staff seem sincerely dedicated to

the BWP and are enthusiastic about their work.

The Training and Capability of LGU Trainers

Trainers at the LGU level do not have sufficient experience,

knowledge or skills to function as effective trainers or change

agents. They should receive mcr effective training and become

skilled experts in the following areas:

* community organization and cooperatives oevelopment

techniques;

* communications support activities (including use of

pamphlets, posters, cartoons, house-to-house visits, etc.);
* adult learning psychology and techniques;
training design including using performance objectives, lesson

plans and evaluation techniques;

* reinforcement and coaching methods;

* monitoring and follow-up skills; and

* RWSA organization and management skills.

 - 57 -

The following findings illustrate the weaknesses of the LGU

trainers.

0 Of the LGU training staff interviewed, none had professional

education as a trainer. (Several had been school teachers,

which is a related profession, but which does not necessarily

imply that training techniques are used or understood). Fifteen

percent had had previous experience with Community Organization

and/or Cooperatives Development.

0 Most LW personnel who function in the training role (the

Water Resources Analyst, Fiscal Analyst and Training Officer)

have attended a BWP Trainers' Training within the past 5 years.

The purpose of that course is not to teach the skills of

training, but only to impart knowledge about the BWP so that the

LGU staff can, in turn, impart the same information to the RWSA

mebership. The mis-named Trainers' Training is, then, merely an

overview of the BWP.

The comments made in the BWP 1 Evaluation

remain valid today:

"A new training for trainers should concentrate

on the learning process: how to facilitate learning

both through the development of the appropriate learning

materials, plans, and strategies as well as their actual

implementation through the effective use of training

techniques and methodologies."

0 Other trainings the LGU staff receive from the BWP/PMS

suffer from a similar lack of needs assessment. Most so-called

trainings, are in fact, merely large meetings. The last

Trainers' Training was planned for 105participantsl

0 Despite the poor training that they have received, many of

the LGU training officers and assistant trainers say that they

like to do training and are eager to do a good job.

Conversations with them showed, however, that they lack

knowledge about basic training concepts--and therefore, most

likely also lack the skills to effectively train. For example,

they consider resource speakers and lectures as their primary

teaching tool; they confuse participant questionnaires with

training evaluations; they equate a training agenda with a

course curriculum; they are not entirely clear on exactly what

their jobs entail.

"I don't plan for training," says a training officer, "I

just coordinate."

 - 58 ­

"My j ob," says another trainer, "is to get speakers and

vehicles and invite guest to the training."

"No," says a third, "I don't have objectives for the

trainings. After all, these trainings are just for the

barangay people."

0 Follow-up to training is considered to be monitoring--and

thus is the duty of the monitoring personnel rather than

trainers.

0 The picture of the LGU training teams is that of well

meaning people who have neither the background and experience or

useful BWP training to function as a trainer. in many cases,

they seem to be going through the motions in order to satisfy a

BWP requirement, but do not understand the rationale of the

training activity.

Training for the RWSA

Conditions in the majority of RWSAs visited, lead the team to

question the extent that community trainings have been useful in

changing:

ATTITUDES (e.g., from dole-out mentality to one of pride and

responsibility of ownership); or the

KNOWLEDGE of the membership (e.g., the relationship of health

and water, proper water storage, proper drainage

techniques, etc.); or the

SKILLS of the management staff (e.g., budget planning,

preventive maintenance scheduling, etc.).

Although the quality of training and communications obviously varies

from location to location, it still seems clear that many of the

misunderstandings and much of the indifference to the RWSA must be

blamed on ineffective training. Successful RWSAs seem to function

well inspite of the "trainings"--not because of them.

The following discussion illustrates the weaknesses of training for

the RWSAs.

 - 59 -

The community trainings are the key to the understanding of the

operation and use of the water supply system and the functioning of

the RWSA. In the vast majority of RWSAs visited, however, the

evaluation team found that misunderstandings and misinformation

abound. Our conclusion, therefore, is that the community trainings

are weak.

The LGU training staff is to conduct 9 different RWSA trainings. In

addition to the prescribed informational and organizational
meetings, there are: : techno-clinic; a specialized management
course; a leadership development course and a specialized

bookkeeping-course.

0 The evaluation team has, however, been unable to satisfactorily

determine which of the above courses have been given to which

RWSAs. In addition to a LGU lack of records about titles, dates

and participants of training, there is considerable confusion

and lack of recall on the part of LGU trainers and RWSA trainees

alike as to the exact differences between the specialized

management training, the leadership development course, and the

techno-clinic. RWSA officers may remember attending a

course--but few can recall specifics about its content and even

fewer can recall its title. The LGU staff who are, by BWP

regulations, responsible for the training often claim ignorance

of which courses have been given--saying that, they in fact, do

not initiate the courses. They are given by BWP/PMS trainers.

The national level trainers also say they do not have records of

who has attended which courses.

O It is cleai, however, that the required trainings are not always

conducted. For example, in November 1984, a BWP survey of 243

RWSAs showed that only 14 had received the Post Completion

training which is designed to teach maintenance skills to the

water system operator.

O No training needs analysis or task analysis have ever been done

to determine the specific craining needs of RWSAs.

Consequently, it is understandable (but not justifiable) why the

content of the leadership course, for example, deals with topics

such as Roberts Rules of Order and Public Speaking Techniques

rather than issues which deal with actual identified problems of

the RWS,s. Courses which better meet the needs of the RWSAs

might concentrate on such topics as:

 - 60 ­

* methods of involving members in income-generating activities;

or,
* methods of anticipating annual expenses; or
* methods of dealing with malpractices in water usage; or
* health education activities; or
* methods of improving community sanitation practices.

0 Effective maintenance training had not been provided to any of

the RWSAs visited. The Post Completion Course which deals with
the "hows and whys" of maintenance is either not conducted or
conducted haphazardly. The BWP Post Completion Training Manual
was not familiar to any of the system superintendents or system

operators interviewed.

0 The initial community training activities (information meetings

and Pre-organizational Teach-In) can be considered successful in

so far as they do, in fact, produce the documents, the

organization and the Board of Directors that are necessary

pre-requisites to the registration of the RWSA.

0 In many instances, however, it is doubtful whether the meetings

were truly successful communcations activities. Interviews with

RWSA officers and barangay residents indicate many

misunderstandings. The following sentiments are not uncommon:

"The system is not ours until we have finished paying

the loan. Therefore, it is the responsibility of the

province to take care of it."

"The Governor came to our first meeting and also to the

turn-over ceremony. He said he gave us the water

system--so why should we pay?"

"USAID donated the money for this project. We

shouldn't have to pay it back."

"Why should we pay amortization? The money just goes

into the pockets of the politicians."

"We can't save money for spare parts or a maintenance

fund because we are forced to pay amortization, instead."

"I'm on the audit committee, but I don't know what we

are supposed to do."

"We were told we were buying 24 hour service but we

have water only 4 hours a day. They didn't keep their

bargain - so why should we pay?"

 - 61 ­

"We don't want to have elections because the by-laws

state that no officer can be re-elected. We want to keep

the same officers."

0 LWU trainers report that the confusion stems from the fact that

very few community members attend the informational meetings.

Equally likely as a cause of the confusion, the evaluation team

believes, is the fact that LGU trainers are not skilled in

training or community organization or cooperatives development

work.

valid today:

The conclusion reached in the Evaluation of BWP 1 is

"There appears to be a big chasm between the purpose of

training at the community level, that is, to develop viable

barangay water systems, and the specific training approach being

pursued to achieve such purpose. It is the impression of the

study team that training at this level has been conceived more

to fulfill certain necessary steps or procedural requirements

than to, in fact, develop functional and viable water systems.

The training package and the manner in which it has been

implemented does not seem to be consciously related to a concept

of change in Philippine rural areas and how to bring it about."

C. RECOMMENDATIONS RE: REWUIRED TRAININ6

C.1 USAlD should hire consultants to monitor and expedite the

institution building components of the BWP.

Training and

management specialists should be included. These

consultants would have a similar relationship with BWP and

USAID as does Scheladia Associates in the technical area.

C.2
The BWP training staff must be re-trained ano re-vitalized.

Professional training consultants should be hired who

can train the BWP trainers in all aspects of effective

training -- including adult learning theory, needs

analysis, task analysis, performance objectives, evaluation

techniques, use of training methodologies and development

of training materials.

C.3 The possibility of coordinating some technical training

with the training offered by LWUA should be investigated.
The high quality of LWUA trainings is acknowledged and they

are in demand from a number of organizations in developing

 - 62 ­

countries throughout the world. LWUA expertise in water

engineering could undoubtedly benefit the engineering staff

in the LGUs -- most of whom have little formal training in

the planning and design of community water systems.

C.4 Professional trainers are needed to help BWP and LGU

technical trainers develop an appreciation for maintenance

activities. Unless they become quickly committed to the

importance of maintenance, water systems will continue to

deteriorate.

C.5 Post-completion trainings must not only be held, but must

be held at the site of the water system. Maintenance can

not be taught by a classroom lecture.

C.6 Professional engineer/trainers should be hired to develop a

new system for teaching design work to the LGU staff. The

large seminars that are currently held must be replaced by

in-depth, one-on-one training combined with site visits and

practical design work.

C.7 A policy which makes LGU trainers accountable for the

results of their trainings should be formed. If one LGU

staff member was made responsible for overseeing a RWSA

from its inception on through its first 2 or 3 years of

functioning, there might be more incentive to visit,

support and make it successful.

This LGU staff member could be appointed as an ex-officio

member of the Board of Directors for the first two years of

the RWSA operation. He/she should be paid per diem and

transportation costs to attend monthly Board meetings.

C.8 Officers and staff members from successful RWSAs have

knowledge and experience that is very valuable to new

and/or struggling RWSAs. LGU trainers should, therefore,

tap this expertise and arrange for these local experts to

be speakers/trainers for other RWSA trainings.

C.9 The requirement that P30,000/year be set aside for BWP

training purposes should be re-thought. In provinces with

much BWP activity that amount may be inadequate; in others,

it may be excessive.

XXXXXXXXX
 - 63 -

D. CONCLUSION RE: COMMUNITY PARTICIPATION AND COMMUNITY DEVELOPMENT

Throughout the life of the BWP, a basic assumption has been that the

formation of an RWSA implies that the community is participating in

the installation and management of the water system. Community

participation was to somehow lead to community development and

institution building. In fact, this appears not to be the case.

Community participation has been minimal arid in most cases has

provided neither a basis fo: institution building nor skills that

lead to further development. In addition, there is no evidence that

the knowledge or ability exists in either the BWP-F'MS or the LGU/'PDS

to implement communityparticipation and community development

activities.

D. FINDINGS AND DISCUSSION RE: COMMUNITY PARTICIPATION AND

COMMUNITY DEVELOPMENT

0 In many RWSAs visited, the extent of community participation was

simply the choice of whether or not to join the association.

0 Comnunity participation generally implies that the members of the

community have some say in the type of organization they choose
to form and its rules and regulations. In the BWP however, the
RWSA is designed and imposed by outsiders.

0 Even if community members pay for a portion of the system, they

may still retain a dole-out mentality because outsiders do the
planning for their water system and their water association.

0 In less than half of the sites visited did RWSA members recall
being consulted about the placement of public standposts or the
proposed water rates.

0 Several RWSAs report wanting to take a more active part in the

installation of the water system--either through the contractor
selection process, supervision of construction, or actual
labor. They are generally not allowed to do so.

O After the formation of the RWSA, the only community participation

seems to be attendance at the RWSA annual general meeting and
payment of water rates.

U Only a very few RWSAs have served as a catalyst for other

community activities.
 - 64 -

0 The BWP has never really come to grips with the issues of

community participation and community development. Although the

project paper refers to the need for involved, knowledgeable and

commited barangay residents, it does not make suitable provision

for developing such people. And, although the BWP manual gives

comprehensive instructions about technical and administrative

matters, advice about community participation, and community

development and sanitation is conspicuously missing.

In the section of the project paper entitled Human Resources,

for example, the project planners acknowledge the need to help

LGU staff develop technical skills. They do not acknowledge

that LGU community organization skills may be equally crucial to

the success of the BWP. It is the observation of the evaluation

team that many of the problems evident in RWSAs today stem from

this basic flaw in the project design. There is a lack of

appreciation of the importance of community particpation and

community development and a consequent failure to build in

adequate provisions for them. Such provisions might have

included such things as:

a. Community organization experts as consultants and trainers

for LGU personnel.

b. Enthusiastic enlistment of help from Provincial and

Municipal Development Officers and Barangay Development

workers.

c. Trained and experienced community organization personnel

(extension agents) who, using accepted community

organzation techniques, would stay in each barangay long

enough to help residents determine their own needs

regarding water arid sanitation. They would also steer the

community in the direction of involving health officials,

disadvantaged groups, and women in water-related activities.

d. Adequate monies (for transport and per diems) to allow

community organizers and trainers to regularly visit RWSAs

to provide follow-up support and reinforcement.

In the future, designers of projects which rely heavily on local

participation should have a clear and specifically stated definition

of the concept, make sure their counterparts share this

understanding, and design specific means for achieving it.

 - 65 -

D. RECOMMENDATIONS RE: COMMUNITY PARTICIPATION AND COMMUNITY

DEVELOPMENT

D.1 Skilled and experienced experts in community organization

should be hired to re-educate BWP and LGU trainers about

the techniques of community organization. PBSP (Philippine

Businesses for Social Progress) and Project Compassion

staff have experience in such training.

D.2 Community participation should be clearly defined. Its

definition should include reference to the optimal level of

consultation, decision making, planning and labor desirable

for BWP activities.

D.3 Municipal and Provincial Development Officers and Barangay

Development Workers are valuable resources for community

participation and community development work. The BWP

should investigate h~w their help coulo be enlisted for

this project. More than training will probably be

involved. They will need to be given authority to make

decisions and funds to make their community visits possible.

D.4 The RWSA, through its president, should be installed as a

member of the Bidding and Award Committee (BAC) of the LGU

for the selection of the contractor.

 - 66 -

B. Management and Financial Concerns

PROJECT INTENT

Effective manaucment is an obvious requirement for a project as

complex as BWP. The project paper states, "With the experience and

technology gained from BWP I, both the national and local levels of

participating gcvernments have already developed their respective

administrative machineries and their organizational and technical

skills to a level more than adequate to assure the success of a

follow-on loan."

The evaluation team has found ample evidence that the optimistic

opinion stated in the project paper was not well founded.

What follows is a discussion of the management and financial

concerns of:

A. USAID

B. BWP/project management staff

C. LGU/provincial development staff

D. RWSA Board and staff

A. USAID MANAGEMENT

Introduction:

What appears as a laissez-faire approach by USAID to monitoring

and managing BWP II may, in reality, be symptomatic of a program
designed for institution building--BWP I managed by ORAD--but
reassigned as BV I1 to OCD, where the focus became construction
rather than institutional development.

For seven years, built-in flaws such as unrealistic targets, lack of

community organizers, and lack of travel capability for PMS and LGU

staff were compounded by a lack of performance and management at the

BWP/FNIS. In addition, BWP was hampered by its non-competitive

status at the LGU level (BWP'uses the FAR system, while roads and

school projects were advancing 15% of costs).

Some of these problems were noted during the 1981 evaluation of BWP

I. Others were described in "Lessons Learned: Provincial

Development Assistance Program, Philippines" by Martin Landau and

James Anderson (1980), bcL were not heeded. The evaluation team

attributes much of the weakness of the present project to USAID's

lack of accountability measures for BWP/PMS.

 - 67 -

A. CONCLUSIONS AND FINDINGS RE: USAID MANAGEMENT

CONCLUSION: USAID apparently has had no accountability measures for

BWP/PMS.

FINDINGS AND DISCUSSION:

0 Quarterly reviews have not noted that BWP training was

ineffective, that no monitoring was being done, that field

trips were practially non-existent by BWP-MLG, and that BWP/PMS

management was slipping. Consequently no steps were taken to

correct these deficiencies.

0 As of 1983, USAID stopped recording in quarterly reports the

number of systems completed, ongoing and planned.

0 USAID's computer data on BWP is incomplete and so limited in

scope that is meaningfulness or use is unclear.

XXXXXXXXXX

CONCLUSION: Not until 1984 did USAID take steps to address some of

the program's weaknesses, in the financial area. Four major changes

are being made.

FINDINGS AND DISCUSSIONS

0 Discussi-ns between USAID, OBM, NEDA, and MOF have

taken place in an effort to establish a revolving fund which

would allow monies to be placed in advance in LLU budgets for

projects to be completed in six months.

0 To address the GOP deficit, $49M ESF grant monies

were transferred to the Philippine National Treasury in 1984

for USAID, World Bank, and ADB development projects. Although

USAlD advised BWP/PMS to request some of these monies, there

was no follow through. BWP received none of the windfall.

0 To alleviate problems with contractors due to delays

in reimbursement, LGU reimbursement guidelines have been

revised by Presidential Decree to allow for indirect costs such

as contractor's profit, 3% tax, contingencies for unforseen

costs, and contractor overnead and administrative costs. ffhese

are in addition to the direct costs of labor and materials.

 - 68 ­

0 BWP-FMS can now get advice of allotment and CDC on a

monthly, rather than a quarterly, basis which allows the PMS to

request reimbursement for LGUs sooner.

xxxxxxxxxx

CONCLUSION

Despite the fact that the goal of the BWP is to improve the health

of barangay residents, USAID has not addressed the health issue.

FINDINGS AND DISCUSSION:

0 The Ministry of Health was one of the 1978 MOA co-signers,

accepting the responsibility for:

a. providing reviews of project plans and specifications,

specifically on sanitation and health aspects of water

systems;

b. conducting necessary water analysis, selection of water

sources and determination of kinds of water treatment

needed.

c. assisting in final inspection of conpleted projects and

monitoring potability of water being delivered to

consumers;

d. conducting periodic analysis of water from taps;

e. assisting BWP in health and sanitation training related to

water use for RWSAs; and

f. making available Ministry of health sanitary engineers and

other technical personnel when requested at the national,

provincial, and barangay levels.

0 USAID provided the MOH with some water test kits but has taken
no other action to encourage MOH participation. According to
the present USAlD project officer, "It has more or less been
assumed that MOH was doing its part "

0 A memorandum from the BWP Project Manager was sent to all

Planning and Development Cooidinators in September 1984

 - 69 ­

advising them that water quality control had "not been given

sufficient attention." A number of recommendations were made to

improve the situation, chiefly that planning and development staff

consult with health offices, "to initiate a water quality control

plan or program" and that these be "adopted by the Water Supply

Development Task Force as guidelines for health improvement goals of

waterworks projects."

XXXXXXXXXX

CONCLUSION: BWP turnover between USAID project managers was less

than effective.

FINDINGS AND DISCUSSION:

Apparently turnover procedures were not followed when project

management changed hands. Consequently, the new PM was not made

familiar with many project records and files or with the status off

the BWP I evaluation.

XXXXXXXXXX

CONCLUSION: AID is gaining a negative image for not getting money

and vehicles to the LGUS.

FINDINGS AND DISCUSSION:

In both barangays and LGUs resentment was expressed (toward USAID,

not. BWP) for delays and unkept promises. (BWP-FPS makes no

promises. USAID is expected to be accountable for its promises.)

Even barangay residents interviewed knew USAID had $15M to

disburse. LGU staff had been told of the $15 M at conferences in

late 1984 and RWSA Board Members and staff heard of it in January

1985 meetings. Many, however, do not understand the mechanisms and

regulations delaying the money from getting to them through the

GOP. Many LGUs are still expecting promised surplus Vietnam

vehicles even though the supply has run out.

 - 70 -

A. RECOMMENDATIONS RE: USAlD MANAUEMENT

A.1 USAID should employ accountability measures to BWP/PMS.

USAIL) program management should adopt more comprehensive quarterly

program reviews and make annual target revisions to keep pace with

changes in economy.

A.2 Consideration should be given to matching the management

skills a project requires with those of the project officer

selected. An instituitional project, for example, may requ±re

different skills, knowledge and attitudes than does an

infrastructure project.

A.3 USAID should take the lead in activating the sanitation

and health education aspect of the BWP by insisting on and

supporting an MOH program of water quality testing and a mass

education campaign regarding the relationship of health, water and

sanitation.

A contractor such as the Water and Sanitation for Health

Project (WASH is an AlD-funded consortium) should be hired to assess

the needs and plan a program for implementation and training.

A firm should also be employed to create and implement a

professional social marketing campaign.

B. BWP/PMS MANAGEMENT

Introduction

The role of BWP-PMS, the national level Project Management Staff,

housed in MLG, is to manage and administer the Barangay Water

Program. The PMS is to strengthen the capabilities of LGUs to plan,

design, implement and monitor water systems. Equally important is

training LGUs to organize barangay members into cooperatives i.e.,

Rural Water and Sanitation Associations (RWSAs), which can then

manage, operate, and maintain their own water systems.

The RMS is to administer the BWP budget, planning and processing the

finances of the program. They are to train and monitor the

performance of LGU staff. The PMS is responsible for revision of

the BWP guidelines and technical designs; the management of project

documentation; and the flow of information throughout the project.

 - 71 -

To carry out these duties and responsibilities, there is a staff of

47 under the Project Manager. The staff are divided into three

divisions: the Engineering Review and Supervision Division, the

Training and Organization Division, and the Monitoring and

Evaluation Division. (See PMS organization chart on next page.)

The Engineering Review and Supervision Division exercises control

over the technical aspects of project development and

implementation. Responsibilities include: 1) developing and

updating technical manuals that prescribe guidelines and procedures

for the desigr, cost estimates, construction, and operation and

maintenance of rural water systems; 2) receiving, reviewing, and

approving subproject proposals; and 3) monitoring the construction

and operation performance of installed systems. The Division

collaborates with the Training Division in the development and

execution of technical training programs.

The Organization and Training Division focuses its efforts on the

following: 1) developing, planning, and conducting multi-level

training programs; 2) assisting and supervising LGUs and training

them to train RWSA Board and staff; and 3) devising programs to

promote staff development for both the central Project Management

Staff and local government officials.

The Monitoring and Evaluation Division's responsibilities are to:

1) conduct continuing assessment of the appropriateness of the

program's concept, approach, and implementation procedures and

improve them when necessary; 2) establish and maintain a management

information system with data gathering and data storage and

retrieval procedures; 3) review subproject proposals and conduct

program evaluations, both general and specific; and 4) monitor the

accomplishment of all local government planning, training,

construction, organization, and institutional requirements.

The PMS has under contract, three consulting companies to assist

them in these efforts: TECHNIKS Group Corp. to support the

Engineering Division and RURBAN and HEADS for training, monitoring,

and evaluation support. Consultant advisors (Sheladia Associates,

Inc.) and two direct hire engineers are provided by USAID to backup

the Engineering Division. (See Annexes C,D,E for contracti.rig

company scopes of work.)

 ORGANIZATIONAL CHART OF BARANGAY WATER PROGRAM page 71 a

PROJECT MANAGER

TRAINING CONSULTANT1
T ADMINISTRATIVE ASSISTANT
MONITORING CONSULTANT

MONITORING, RESEARCH AND EVALUATION DIVISION ENGINEERING, REVIEW AND SUPERVISION DIVISION TRAINING AND ORGANIZATIONAL DIVISION

Chief, Monitoring Research and Eval. Div. Chief, Engineering Review and Supervision Division Chief, Traiing and Organization
De" Chisf,1Mlitairng Resworch and Deputy Chief, Enginesring Review and Depuy Chief, Training and Organizational Division
Evaluation Division Supervision Division Sr. Training Officer
Waterorks Proec Analyst Sr. Civil Engiaeer Waterworks Researcher
Project Anliyst Sr. Mecpanical Engineer Training Officer
Sr. Waterworks Researcher Civil Engineer Training Assistant
Research Engineer Mechanical Engineer Training Assistar
Wat weism Researcher Civil Engineer Training Assistant
Waterwork Researchw Civil Engineer Training Assistant
Stailstician I Research Er-!.'aer Records Officer 11
SteltIclian " Research Englneer Junior Slatlstician
Stllsticlai; " Research Engineer Junior Statistician
Junior Slatisticici Research Engineer Clerkc r
Clerk E Research Engineer
Meseenger / Clerk Research Eoneer
____________________________ Reeearch Enginer
Research EB*nr
Fb..i Analyst

Clerk U
 - 72 -

B. CONCLUSIONS AND FINDINGS RE: BWP/PMS MANAGEMENT

CONCLUSION: BWP/PMS is in essence not functioning.

FINDINGS AND DISCUSSION:

0 The total staff employed by MLG, contractors, and USAID to work

from the central level is 77. Regardless of this large number

of central level staff in 1982, only 4 level 11 systems were

completed and 75 were ongoing. In 1983, 79 systems were

completed and 42 were ongoing; in 1984, 13 systems were

completed and 15 were ongoing.l / The evaluation team

believes these statistics illustrates underenployment and lack

of efficiency.

0 Little or no energy has been put into promoting BWP since

19b1. Although 80 LGUs are "members" of BWP, only 45 have at

least one system under construction ann only 11 have three or

more completed systems.

0 Essential to the accountability of BWP is the process of annual

recertification of RWSAs. The first recertification was held

in 1981. None were conducted in 1982, 1983, or 1984. One is

in progress at the writing of this report.

0 Planning tools are not evident at the PMS. There are no flow

charts for a year's planned activities. Recordkeeping is weak,

office management is lax at best, and financial planning is

inadequate.

XXXXXXXXXX

CONCLUSION: PMS financial/management is lacking.

FINDINGS AND DISCUSSION:

0 By mid February 1985, only the BWP operational budget had been

submitted.

0 In January 1985, responsibility for the budget was turned over

to a junior staff member who was given little if any financial

training.

1/ This information was provided by USAID engineers. BWP/FHS

reports show different (and higher) figures.

 - 73 ­

0 BWP is exempt from the one-third of cash disbursement ceiling

(CDC) forced savings but BWP staff handling budget matters is

apparently not aware of this.

0 Monies can be drawn down monthly rather than on a quarterly

basis--but this is not done. This aggravates LGU reimbursement

delays.

o $49M ESF grant monies were made available to GOP for special
projects in November 1984. All has been allocated as of
February 1985. BWP received none because no request was made.

O The Special Development Fund of the BWP/PMS keeps 10% of the

FAR (from some provinces, not from others) for special LGU

needs. It has never been used.

O Many of the BWP/MLG financial difficulties relate to the

Project Manager's admitted reluctance to communicate with the

OBM or NEDA or MOF.

XXXXXXXXXX

CONCLUSION: P"S office management is lax.

FINDINGS AND DISCUSSION:

0 An organization chart listing job responsibilities exists.

However, the staff with senior level qualifications to carry

out these duties does not exist.

0 There are no performance evaluations and no attendance records.

0 There are lines of responsibility but no accountability. For

example, although there are some field trip reports, there are

no documented follow-up procedures.

0 For travel duties, staff request and take 10 days per diem (the

maximum allowed), but because the GOP rate is so low (45

pesos/day), they can only afford to travel for 3 days. The

remaining week of their "travel time" out of office is

unaccounted for.

0 There was only one full staff meeting in 1984, and there are nc

minutes of that.

 - 74 -

0 Each division reportedly has monthly staff meetings but minutes

are not usually taken. Monthly meetings are held for Techniks,

Sheladia, AID engineers, the BWP Project Manager and the BWP

Engineering Division. There were minutes of only one of these

meetings in 1984. In January o? 1985, for the first time, the

Training Division and Monitoring and Evaluation Division were

invited to attend.

XXXXXXXXXX

CONCLUSION: The project management staff lacks credibility with the

LGUs.

FINDINGS AND DISCUSSION:

Credibility is lacking because:

0 BWP/PMS engineers are often less qualified and experienced than

LGU engineers;

0 Delays in approvals and reimbursements--e.g. the BW-1O approval

(go ahead for construction) can take over a year;

0 There are no sanctions or any follow-through regarding

deficiencies or recertification requirements;

0 There is a lack of support from BWP-PMS. Some LGUs told the

evaluation team that they have had to send representatives

(including Governors) to BWP/PMS to get necessary action.

XXXXXXXXXX

CONCLUSION: Contractors are actually performing the duties of the

PMS.

FINDINGS AND DISCUSSION:

RURBAN (hired by BWP-MLG, to extend staff capabilities of the

Monitoring and Evaluation Division--lO person staff plus project

manager): This consulting firm is prolific with its monthly field

reports and initiatives in trying to improve the program. In 1981

and 1982 they developed a manual for Techno-Clinics and Leadership

Development Training (both cf which are now incoiporated in the BWP

 - 75 -

Comunity Organization Manual). In 1983, "Water Supply

Development: A Case Planning in the Philippines" was prepared and

its pilot test in Bohol Province written up in 1985. In 1983 a

Community Training module for RWSA development was written which

included training materials for RWSA Education Committees. In 1984

the document, "Health and Sanitation Programs in Rural Water Supply

Development" was prepared.

RURBAN is pleased their training modules are accepted ano used by

BWP/FMS but are unhappy at the complete lack of feedback on most of

their reports and documents. Their writings are not seen by USAID

personnel because their contract prohibits distribution outside of

BWP/FMS; PMS does not pass them on, nor does USAID request to review

them.

RURBAN staff do not have travel restrictions. Travel is reimbursed

on a cost basis. In 1984 RURBAN staff visited 58 operational and 59

non-operational RWSAs in 36 LGUs.

RURBAN participated in or conducted 174 trainings/meetings in 1981,

256 in 1982, 25 in 1983, and 31 in 1984. They are disappointed that

they are no longer invited to trainings by PMS.

There are no discussion meetings between BWP/PMS and RURBAN staff.

The Project Manager and RURBAN's Project Manager meet only to

discuss contractual issues.

TECFNICKS GROUP CORP. (hired by BWP-FMS, as an extension of staff

capabilities for the Engineering Division--14 member staff plus

Project Coordinator): TECHNIKS provides most of the engineering

field trips because they, as contractors, do not have travel

restrictions that BWP engineers do. However, TECHNIKS engineers

have no authority to take follow up actions. They only note

deficiencies and make recommendations. BWP/PMS has no system of

noting the recommendations and ensuring verifiable follow up

procedures. The same problems and recommendations are cited in

successive monthly reports. When the same citations are no longer

repeated, it is assumed the deficiency has been dealt with.

Although monthly meetings are held with the BWP Engineering

Division, there is no established or systematic procedure for follow

up actions on recommendations .

HEADS, Inc. (hired by BWP-FMS, and paid by USAID, to provide

professional expertise in training and monitoring--two person

staff): HEADS coordinate and conduct national training sessions and

perform some monitoring functions. They are credited with

maintaining what energy remains in BWP-MLG. The professional

relationship between HEADS and the BWP management, however, is cause

for some concern.

 - 76
-

Sheladia Associates, Inc. (hired by USAID to supplement and advise

the Engineering Division--two staff members): The Sheladia

contractors have no authority in implementation of procedures. One

of the contractors, with the project for three years, has

contributed most of the technical revisions to the BWP procedures

manual. The other, is a hydrogeologist working on site testing and

water resource surveying. This consultant is responsible for

organizing the hydrogeological training center which is being

established in Batangas.

XXXXXXXXXX

CONCLUSION: Management Information Systems need modernization.

FINDINGS AND DISCUSSION:

0 Forms: Forms and Guidelines make up a large part of the BWP

Operations Manual. Begun as institution building blocks for

the Provincial Development Assistance Project (PDAP), the

guidelines were adapted and supplemented foi the Barangay Water

Program (BWP I) when it was created as a special project in

1978.

Unfortunately, in many cases, the process behind the forms

seems to have been lost. The forms and guidelines are

perfunctory yet treated as fixed and mandatory. Often the

people using them do not understand the purpose behind the

forms. The guides are adhered to literally even when the data

produced are unrealistic.

0 Information Dissemination: No clear, systematic method exists

for disseminating BWP policy changes or guideline revisions.

Information is generally distributed at training ses3ions,

usually verbally. Since training sessions are held regionally

and at different times, information is disseminated in a

haphazard, untimely manner. One example of the problems of

word of mouth communication is illustrated by the confusion

regarding the minimum monthly water fee established for RWSAs.

Gingoog City PDS believes the new minimum rate is 21 pesos,

Iloilo PDS believes it to be 30 pesos, while other PDS are not

aware of a "minimum".

0 Recordkeeping: This responsibility belongs to the Monitoring

and Evaluation Division. During the evaluation team

investigations, rio one could provide the 1985 budget, the 1983

and 1984 targets or annual plans, the LGO evaluation team

reports, or figures on status of projects in all LGUs.

 - 77 -

When asked to provide the following data for BWP systems

implemented in 1983-84, none was provided:

- date of RWSA formation

- date of BW-1O release

- date of BW-11 (beginning of construction)

- date of construction completion

- date of system turnover.

Lack of this information is powerful indication of the state of

monitoring, evaluation, information management and BWP planning.

The project management requested a microcomputer in 1981.

USAID required a needs assessment first to determine the type

of system appro'riate. Proposals have been submitted by at

least one firm to conduct a study in 1985. The evaluation team

warns, however, that a computer is useful only if the staff has

the time, the incentive, and the knowledge to collect relevant

data.

B. RECOMMENDATIONS RE: BWP/FNS MANAGEMENT

B.1 The original intent of 6WP to have a well-trained national

level management unit has not been realized. The intent of

developing LGU capabilities remains valid and now it is clear that

the most effective organizational structure for that purpose is

closer to the target -- at regional or provincial levels. The

evaluation team strongly recommends BWP decentralization.

B.2 If with decentralization, the FPS itself remains in a

central GOP agency, the PMS should be reduced to a maximum of 8
people who will handle management information systems, process
finances through the Office of Budget and Management and the Bureau

of Treasury, coordinate contractors and consolidate paperwork of the

decentralized program. Wherever the PMS is based, however,

conditions must exist to employ quali'ied people and to provide the

necessary transportation requirements.

B.3 The technical language and legal language of all forms

should be simplified.

B.A A systematic, accountable system for information

dissemination shoulo be established.

 - 78 ­

B.5 A contractor should be hired to establish appropriate

software for recordkeeping. An appropriate microcomputer system

should be determined. Monitoring personnel should be trained in

data collecting and data analyzing techniques.

B.6 The system of granting approval for LGU sub-projects must

be made more efficient. The process should be systematized and not

allowed to take more tnan one month. This will be facilitated with

decentralization.

B.7 The FAR procedure should be modified to become a more

feasible system for today's economy.

B.8 BWP must take action and responsibility to see that seed

money is appropriated at the correct time.

B.9 A BWP staff member should be assigned to handle the

liaison work between BWP and MLG, BWP and OBM, BWP and USAID. This
BWP staff should be authorized to deal directly with USAID, OBM and
the MLG's Budget Division, Accounting Division and Cash Division to
attend the papers of BWP. He must maintain separate books of
account for al. financial transactions of BWP.

C. LGU MANAGEMENT

INTRODUCTION

LGUs are the implementors of BWP. Subproject selection, planning,

design, and implementation are the responsibilities of the LGU staff

with the PDS responsible for all but system design and construction,

which is carried out by the PEO.

The PDS is to budget the projects; select barangays; organize the

community members into a RWSA which will be capable of managing,

maintaining, operating its own water system; train the RWSA Board

and staff; and keep the RWSA functioning after turnover. In order

to do this, the LGU staff requires management, budgeting, community

organizing, coordinating, and training skills.

The measure of the capabilities of the LGU and its staff to carry

out their responsibilities is the number and successful functioning

of RWSAs and their water systems. LGU capabilities and

accomplishments in the Barangay Water Program vary.

 - 79 -

The energy and desire to build water systems is in evidence at every

LGU visited. What is needed is capital to get started (due to

devaluation, a project costing P500,000 in early 1983 costs

P1,200,000 in 1984); training in trainer's skills; readily available

support in program management; and transportation to get to the

barangays. Nevertheless, existing staff in most LGUs could handle

thF. planning, management, and implerentation of more BWP

subprojects. Additional staff are needed, however, for training,

monitoring, and community organizing.

Many LGU planning, management, and implementation difficulties are

inherent in the fact that the controls are held by the central

office in Manila.

One major problem for LUUs is money "or BWP systems. Most LGUs

visited had two million pesos allotted to BWP per year; thus, when

it takes over a year tu get reimbursed by BWP/PMS, there is more

frustration than incentive. Most LGUs visited had plans for 8 to 15

systems but only submitted two at a time to BWP/PMS because of these

limited budgets. 1hese LGUs estimated six to seven months for

project coristructi.n but PMS delays prevent start up of other

projects. Some LUds cannot afford even one system it present

costs. Batangas nad 15 million pesos in the 1984 budget for BWP but

only constructed two systems due to delays in approvals from BWP/PMS.

Most LGUs receive seed money (15% of project cost) from the PMS

months after the construction of the water system has been started.

This defeats the purpose of the seed money.

To deal with the economic realities imposed by the FAR system and

devaluation, LGUs are setting up turnkey ar 'angements, when

possible, with local contractors. Contractors are charging an

interest rate of 4% per month. Economic conditions, turnkey

arrangements, and Planning Level Ii systems instead of Level II

have pushed costs up in some cases to four millicn pesos.

Another major problem is the lack of coordination of rural water

supply projects at the LGU level. There are 4.hree water project

implementing agencies, the Ministry of Public Works and Highways

(MPWH), the Rural Waterworks Development Corporation (RWDC) and the

Barangay Water Program. Local planners from the P/CDS have minimal

participation in these agencies' decision making. MPWH identifies

its own target project sites, programs them for implementation, and

constructs them with little involvement by the P/C planning body.

RWDC and BWP do involve LGU planning and development offices in

project selection, design, and implementation but each program has

its own requirements, forms, and guidelines. Basically, LGU

 - 80 ­

planning bodies respond to the inputs of these agencies because they

are funding sources. The LGU does not take the initiative in

planning an overall water development program. To date, the

planning units required to be set up by BWP and RWDC to meet this

overall water development planning need have not functioned. bWP

requires a Water Resource Development Task Force and RWDC requires a

Waterworks Committee.

Professional Rural and Urban Consultants, Inc. (RURBAN), presently

under contract to BWP/MLG, has designed a scheme for province-wide

water development planning by an LGU which takes into account

integration of water supply services with other social services such

as housing, health, and livelihood projects. All agencies involved

with provincial development activities participate in planning

sessions identifying their priority areas. The LGU then draws up

its overall plan, and the water supply projects are implemented by

the agencies independently. This scheme is being pilot tested ir

Bohol Province in i985 with an Integrated Water Supply Development

Plan,

The Evaluation Team recommends investigation of this approach and

its replication elsewhere. The LGUs need help in establishing a

framework for planning, implementation, monitoring and evaluation.

Resource agencies should plug into the LGU structure rather than the

other way around.

C. CONCLUSIONS AND FUNDINGS RE: LWU MANAGEMENT

CONCLUSION: BWP has become a low priority program for LGUs.

FINDINGS AND DISCUSSION:

U Roads and schools projects are preferred. ESF projects provide

75% advance capital as well as provide vehicles, honorariums,

per diem, and transport money. BWP provides extra field work,

lots of paperwork, and lots or frustration -- slow turnaround

time on approvals and reimbursements.

XXXXXXXXXX

CONCLUSION: Logistical constraints prevent PDSs fiom performing as

anticipated in the BWP 11 project paper.

FINDINGS AND DISCUSSIONS:

0 PDSs do not have vehicles or fuel for required monitoring,

construction supervision, or onsite training and follow ups.

They cannot, therefore, provide the services required of them.

 - 81 -

XXXXXXXXXX

CONCLUSION: Neither sufficient nor trained LGU staff are in place

for community organization work -- the key to successful RWSAs.

Community organization is a full time requirement.

FINDINGS AND DISCUSSION:

0 The training officer is usually responsible for coordinating

training for all development projects. Consequently, time for

community organizing is limited. Many trainers do not have

community organizing skills.

XXXXXXXXXX

CONCLUSION: The role of the Provincial/City Evaluation Team is to

monitor and give help to the organizational, financial, and

technical aspects of the HWSA. The team should be composed of a

water resource analyst, fiscal analyst, a representative from the

PEU and a representative from the Provincial Health Office. The

valuable process and the resultant data of P/CETs are no longer in

force.

FINDINGS AND DISCUSSIONS:

0 Copies of PET reports from 1981 demonstrate the capability and

awareness of LGUs, e.g., the PET report from Misamis Oriental

on Luyong Bonbon contains: a schedule of visits by the team for

the year; clear, concise sunnaries of findings in the technical

area; notes of actions taken; RWSA financial and organizational

data; health-related datz such as number of water sealed

toilets and chlorination )rocedures.

O However, in 1985, the team found no examples of the P/CET

actually functioning as it was intended. In the two LGUs that

had "active" evaluation teams, their role was only to perform

an annual inspection - no monitoring, no training, no support.

XXXXXXXXXX

CONCLUSION: The PDS is expected to perform the most important

institutional development role--developing, training, and monitoring

RWSAs. However, most of the incentives are with the PEO.

 - 82 -

FINDINGS AND DISCUSSIONS:

0 The PEO usually has the vehicles and budget money for

construction as well as the perks that are part of dealing with

contractors. The PDS on the other hand, often has fewer

vehicles and less fuel which limits the work of the staff. The

PLO sees tangible results from their construction work. The

PDS sees few tangible results in their instituional development

work.

0 In only one of the LGUs visited was there evidence of much

cooperation between the PEO and PDS.

XXXXxXXXXX

CONCLUSION: Although some effective management techniques are

practised at some PDS offices, there is room for much improvement.

FINDINGS AND DISCUSSIONS:

O Unlike the BWP/PMS, at least half of the visited PDS offices

had organization charts, performance evaluations, field

reports, accessible and kept records, regular staff meetings

(sometimes with minutes), annual reports (some in narrative

form), annual plans and accomplishments.

0 However, no flow charts with timeframe for planned activities

and accomplishments were found. Previous records of activities

and expenditures were not used to plan and project for the

future. Sometimes there are written field reports but no

records of follow up actions were found.

0 PDS record keeping deficiencies are similar to those of

BWP/PMS. For example, filing systems are not set up for quick

access of a particular document. Related files are kept in

different locations.

C. RECOMMENDATIONS RE: LGU MANAGEMENT

C.1 3eepneys should be provided to LGUs for BWP work. They

are inexpensive, (approximately PlbO,O00 pesos) locally produced,

and easily and locally repairable. Lack of transportation is one of

the most vital constraintLs at the LU level because much of the

essential BWP work requires spending time at the barangay sites.

 - 83 ­

C.2 Fuel, or money or coupons for fuel, should be provided.

If vehicle use is to be monitored by BWP, mileage records could be

kept which would have to coincide with monthly site visit reports

and fuel consumed. It should be assumed that the jeepneys would be

used for site visits for any number of development projects, however.

C.3 PDS roles must be strengthened and incentives provided.

This may occur if some loan monies are reprogrammed into training

and monitoring.

C.4 Provincial/City Evaluation Teams must be re-activated.

They should function as described in the BWP Manual of Operations.

C.5 Each PDS should have full time community organizers on

staff. These could be seconded from regional or municipal staff

(e.g., municipal development workers). Alternately, BWP could pay

for the first two years salary (as was done in the urban planning

program of the past) or community organizers could be hired as

contractors.

C.6 PDS officers would benefit from intensive training

sessions in management practices.

C.7 A simple but efficient recordkeeping system should be

devised and appropriate PDS staffs trained to ue it.

C.8 Loan amortizations should be studied and possibly

re-structured. LGUs should adopt policies and strategies to enable

RWSAs to earn/save money and pay amortization.

C.9 New bookkeeper training should be designed and LGU staff

must be trained to conduct the training fo all RWSAs, hands-on, on

site.

C.lO LGUs should conduct at least a semi-annual audit of the

RWSAs Books of Accounts. This work should be done by the

Provincial/City Evaluation Team or the Fiscal Analyst.

C.ll A flexible approach should be adopted for determining

which level system is appropriate to which community, including

whether Level Is should have to be purchased by a community.

 - 84 -

D. RWSA MANAGEMENT

INTRODUCTION

Rural Water and Sanitation Associations are cooperatives set up by

barangay residents in order to legally own, manage, operate and

maintain their water systems. These RWSAs are assisted in their

organization by LGU staff under the Barangay Water Program.

Board members are elected by the membership; staff, such as systems

superintendent, bookkeeper, and operator are appointed by the

Board. Monthly fees for services, electricity, amortization, and

salaries are initially determined during the RWSA organizational

meeting. Thereafter it can be adjusted by the Board with a vote by

the membership. Management skills, particularly in the financial

area, are necessary as is the ability to plan ahead --e.g., for

preventive maintenance and anticipating the need for repairs. RWSA

Boards must have skills in leadership to keep members interested and

active.

The evaluation team visited some successful RWSAs where the needed

skills were in evidence. At most barangays, however, if the elected

leadership did not already have the skills, the inadequate training

did not provide them.

In some of the successful RWSAs, money-making activities supplement

the rates. For example: Buga, Iloilo: the RWSA is buying plastic

hose at bulk rates and selling it to members for a profit. In

Emmanuel Cuenca, Batangas, dances and raffles bring in money. In

Luyong BonBon, Misamis Oriental, cans of water are sold to

non-members by "water sellers" posted at each public standpost. A

coupon system is used.

For a general profile of RWSAs visited see Table II (next page)

which tabulates the length of time from organizational meeting to

turnover, length of time for system construction, potential and

served households, type of system and whether in operation.

Table III (following page) presents the financial overview of the

visited RWSAs with project costs, loan amount, status of

amortization payments, utility costs, and monthly water rates.

 TOLE II

GERAL PW ILE (F M

IWO- START OF DATE TURNOVER CoTR/ NO. OF M NO. OF ORIG. (IF HH I OFPAYI
MEETING CNST. T. DATE INM
4N. LEVE SEVICEABLE
POTE.NT IAL 4EBERS
SICNWD UP SEVE)
DATE COWMI

BATAMrS
Emanuel 10/1979 04/ 3)10 05/1980 Contr II to I1 200 156
LUCshiffl 1977 11/26/79 07/31/80 06/1981 Ctr II 2w 65
MISM41.5 OWMT
Taytay 10/26/81 04/31/82 06/1982 Contr II to III 85 35
KItr t* 01/15/83 05/U/P Contr it
Sinai 0"2/1/83 06/21/84 07/21/64 Admil I1 2A2 224
GinWarng 01/15/83 11/10/83 Contr II I10 &8 (cam)
is(ind)
LLyorm qt 05/1979 02/1980 05/19
I 03 Ai 65 (ind)
5 (cao")

GINDOG
Lunao 07/29/82 04/19/82 02/01/83 05/11/83 Adwin II "a 260 30 120
Arr* Contr II 250
Agay-ayart" Contr II

CEBU
Llbur,* 02/26/80 02/09/81 091/23/81 02/21/83 Cortr ILI-A 230
02/22/81 02/1963 12/1983 02/1984 Contr 396 330 200
Casay
Tayud 12/03/80 08/25/81 01/18/82 03/24/82 Contr 1r 200 38

CAVITE
Tasakan 10/22/81 07/23/82 11/10/82 12/30/82 COntr 11 116 92 113 109
Dagatan 10/22/81 07/23/82 11/10/82 12130182 Contr II 140 73 120 80
1a 10/22/81 08/22/82 05/20/84 08/05/84 Cotr
Solat' 10/22/81 08/06/82 01/18/8 08/05/84 Contr 1li 167 154 1n

Trece MrtLres
Lavidario*" 08/10/84 0/07/82 02/08W Contr

01/1 1 01/25/82 04/30/82 Contr al 110 115 89

Cabexas
BLLACM
Tabing-Ilog 06/04/81 00/20/83 co ft. I 275 261 197
09/26/79 190 1981 04/15/82 Cortr U 324 274 76
Bunsuran 11
 - pag 2 -

Iwo S"AqT OF OATE TURNOVER CO4T NO. (F MH NO. OF ORIG. O 1,4 0 (IF PAYING
MEETDC COiNST. CONST. A'E ,4IN. LEE SVYI:]E / MD.BI S VED S
DATE q FOTEMIX MIGPNEDUP

Son Gabriel 00/18/80 Werrh 03/24/82 Contr I! to II 40 32* 166

BI lhan 09/15/80 12/19a1 12/02/82 Contr II to 1II 583 90 215 200
Loloboxy 07/28/7 05/1977 10/28/78 02/25/79 Contr 450 (gol) 99 43 *39
San -Jan 03/05/78 06/27/80 Contr I! to 11 593 (1980) 13* (orient) 463 463
700 (19") 2*6 (mmitiers)

ALBSY
4anga 02/20/81 12/15/82 02/28/83 03/10/83 (bntr II to II 00 163
San Isidr" 07/13/80 05/25/81 02/18/82 Aefl-In 200

LEr"I CITY
Oita* 01/22/83 10/02/8A 01/22/85 C'tr 2*0 219
Borga 11/12/81 06/1982 08/22/82 10/12/82 Contr 283 245
Pawao 02/26/83 08/10/84 (1/22/85 Contr 269 252

ILOILO
auga 051/12/80 05/1984 06/1984 Contr II to 11I 300 132 116 116
SinoQor an 06/07/80 07/1981 11/19 Contr IIU-A
Agsalanano 05/26/79 Contr 11 to III 110 80

LA UNION
Urayong 01/198A 0/198* 12/198* Coftr II 90 lO0 75
caw 1 1982 02/1983 Contr II 200 70

* Not yet turned over

Construction on-ging
Stoped Operation
 TrLaE III

FINANCIAL I3CATORS OF RWSAs

MONTrtY LeT 1M
% of TOTAL P4DJNT MONTHLY AVRAG W/ INCU0E
PROJECT FAR I-am LOAN LON (F" LOAN WATER MONTHLY BREAK EVEN/
COST AKI.IN TO FAR PAWD ARl8ERS FEE ELECT/RIE LOSS
(for 1st BILL (before
10 cu m) (amortization)

BATANGAS
EJmanuel P765,000.00 P 106, AM].00 F 9,569.72 P2, 709.16 P20.00 P 2,500.00 Iict ie
Luc sLin'* 503,2;22.00 150,966.60 30.(X 44,433.68 20.65 1,400.00 Loss

MISAMIS OHNTL
raytay P 410,000.00 295,00100 78,051.00 26.51 5,743.16 5,743.16 9.80 Break Even
Kibahtl 482,000.00 376,000.. 0 30,200.00 8.03 due 6/85""
Sinai 359,680.00 2Q1, C. GOJ 2 3, 000. 00 7.91 15.00 1,O.00 Income
Gimnqoang 574, 720.00 49,00O.OO 70,000.00 15." due 6/854** 15.00 Loss
Luvonm taon 3062Y-. O 219,rnno.0o0 88, 000. LI0 40., 11,916.89 8,287.95 15.00 Incoe

GINO0G
Lunao 932,000.00 894,000.00 279,133.48 31.29 20,539.20 13.25 2,000.00 Loss
l,I46,0DO.00
1nakan" 707,500.00 168,791.00 23.8%
- 1.0
Agay-ayan* 908, 0X)0. 00

CEBU
Liburon" 666,580.00 463,000.00 402,000.00 86.89 25,460.00 1,600.00
Casay 1,27R,870.00 904, 2-;.00 467,125.00 51.6X 1,523.75 6,905.00 20.00 2,800.00 Ircom
Tayud 655,463.00 a34,000.00 217,000.00 50.I 18,0833.25 500.00 Loss

CAVITE '
Tamakan 294,500.00 26,289.04 8.931 1,934.&0 15.00
20.00
Dagatan 310,500.00 65,161.59 23.99% 4,794.72 399.66 20.00 LOSS
25.00 (ind)
LUyM 350,000.00 29,576.80 8. A5 1,808.04 15.00 break Ever.
2O.O (ird)
Salaban 339,000.00 24,571.T? 7.2-M 2,176.32 15.00 Incme

Trece Martires
Laodaria=o 181,500.00 26,532.08 13.99 1,952.28 15.00

224,500.00 48,499.% 21.9 14.10 Incom

Cabezas

BULACAN
Tabing-Ilog 1,028,000.00 750,000.00 375,000.00 50.cm 29,279.60 30.00 (res) 5,800.00 Break Even
A0.00 (corn)
"
' 565,000.00 305,000.00 260,000.00 85.2 4,O0.00 12,000.00 30.00 1, 50.00
ajnsuran I1
 -pae 2 -

I , TOTAL MOUT MONTHLY AVtAGI W/ INCOME

FROlECT FPO LOW LOAN LOAN OF LO WATER MONTHY BRA £EN/
COST AO.IT TO F4 PAMn ARRERS FEE E.ECT/FOWM LOSS
(for Ist BILL. (before
10 cu a) (mortizatlon)

San Gabriel 770,000.00 560,000.00 280,000.00 50.019 10,J3M. 0 Nam 3.00 (ri) 6,000.00 Break Evm
40.00 (cot)
&Ilihwi 916,350.00 745,000.00 218,738.00 29. i3, 792.00 25.00 A,0O.00 Break Even
Lolm"y 652,000.00 484,00O.0n 242,000.00 50.Ox UO,878.00 None 35.00 18,00D.00 Ircm
Son Jan 483,OOu.OG 241,500.00 50.02 50,295.00 Noe 27.00 6,5010.00 Irmam

anga 562,000.00 a79,000.00 85,284.00 17.U 9,000.00 10.00 (com) Break Even
12.0D (ind)
** 5.00
San Isid 366,000.00 284, 000.00 Grant

LEGASPI CITY
Dita* 961,629.00 981,629.00
Bungs 548,70.00 Nonle 7.50 1,20D.00
Pa&, 959,920.00
ILOILOn
Bugs 300,000.00 300,000.00 73,000.00 25.09 Zu 5/8PO" 20.00 1,200.00 Dncams
Sinum re 10.00 5pring
Agsalanan 10.00

LA UNION
Urayong 190,317.00 10.00 Spring
ra I 376,0.00. 20.00 900.00 LOss

* Not yet tune over

Constricton on-going
Stowoed Operation
*e. Oue date of first aotizatlon
 - 85 -

D. CONCLUSIONS AND FINDINGS RE: RWSA MANAGEMENT

CONCLUSION: RWSA management is often unfairly blamed for technical

problems because of lack of preventive measures or lack of

maintenance.

FINDINGS AND DISCUSSION:

0 In a number of cases maintenance was lax, but usually due to

untrained operators and/or lack of understanding of operations

or cause and effect.

0 In the majority of sites, problems were due to poor design,

constructioFi faults, or materials defects. RWSAs were handed

problems at turnover. Most of these problems appeared in the

first two years when the RWSAs did not have money saved for

replacement of burst or leaking pipes, burned out motors, caved

in wells, or the drilling of new wells when their source went

dry.

CONCLUSION: Almost all RWSA Committees (Education, Health, Audit)

are inactive.

FINDINGS AND DISCUSSION:

0 No committee member could tell the evaluation team what the

purpose of the committee was. Nor had they held any meetings.

XXXXXXXXXX
CONCLUSION: In a number of barangays the level of commitment to

system ownership is high, if only by a few.

FINDINGS AND DISCUSSION:

O In Lolomboy, Bulacan (a 1977 pilot project) the RWSA continues

to meet its obligations in spite of overwhelming utility bills

(P19,000/mo.) and threat of takeover by LWUA which was

established three years after the RWSA. Lolomboy will be the

first RWSA to own their system outright with only four more

years of payments.

 - 86 ­

o At a number of sites, a handful of Board Members and staff are

working to keep their systems functioning with no renumeration.

o In poorer communities, particularly with Level 1I systems, some

members are bea'"ng the financial burden for those who cannot
or will not pay their rates.

o Highly successful RWSAs can be found in Bulacan, Iloilo, and

Batangas provinces. They have growing memberships, extra

income-generating projects and a newsletter for their

membership.

XXXXXXXXXX

CONCLUSION: In many cases barangay residents feel no particular

sense of ownership or responsibility for their BWP water system.

FINDINGS AND DISCUSSION:

O Sites have often been selected for political reasons and thus,

new water systems have not necessarily filled a perceived need

of the community.

0 Some communities have not been properly educated as to their

ownership role or respensibilites. RWSA Board and Staff are

not adequately trained. Barangay residents have nothing to say

about how their cooperative will be organized or structured.

In some barangays RWSA members were not involved in system

design or layout; were not party to the selection of the

contractor; and sometimes were not involved in the

construction. Frequently, the RWSA does not have a set of

plans for follow up maintenance, repairs, or extensionn of

systems. Discontent regarding placement of standposts in Level

II systems is a common complaint.

0 Many RWSA members do not understand what costs are included in

their monthly water rates though they "have been told". Many

RWSA "lack of ownership" issues result from having been told

what-is-what by the LGU instead of barangay residents thinking

through/participating in decisions themselves.

 - 87 ­

0 Previous 60P "loan" programs in some areas did not require

repayment; therefore, "loan" is a synonym for "dole", e.g.,

Maisagana 55, Masagana 99, and Biyayang Dagat.

XXXXXXXXXX

CONCLUSION: Almost no RWSA budget planning takes place. RWSA Board

M_mbers and staff are not skilled in budget planning nor are they

trained to be by BWP.

FINDINGS AND DISCUSSION:

0 Only four systems visited had a positive cash flow. Neither

was paying amortization. One, because it was saving for a new

pump and had 57,000 pesos in the bank; the other had only been

operating six months.

0 Many budget problems are the result of original rates that were

too low and no adjustments made with the increase in

electricity charges.

O Many RWSAs have trouble collecting monthly water fees because

the members do not understand what the rate pays for: salaries,

repairs, electricity, and amortization. There is a direct

relationship between previous accessibility to water and RWSA

collection success.

xxxxxxxx

CONCLUSION: Bookkeepers are not properly trained and monitored,

therefore the books are not properly maintained.

FINDINGS AND DISCUSSIONS:

0 In Casay, Cebu, for example, the cash receipts journal is not

in the form prescribed by BWP; the bank book does not tally

with the books; and the monthly report is not looked at by the

RWSA board.

0 Techno clinics (diagnostic sessions) and special bookkeeping

training course have been devised and implemented for dealing

with long overdue corrective measures. So far, there has been

no evidence of improvement.

 - 88 -

XXXXXXXXXX
CONCLUSION: There is some difference of opinion as to how many RWSA

staff members are needed.

FINDINGS AND DISCUSSION:

0 At only three of the 37 RWSAs visited was there a complete

staff paid and functioning. At most RWSAs there was a

bookkeeper (frequently doubling as systems supervisor) and

there was an operator. Most RWSAs did not see the need for a

systems supervisor. Some had plumbers as well as operators and

systems supervisors. Salary costs are a major determining

factor for how many staff will be employed.

XXXXXXXXXX

CONCLUSION: Active Federations can play a significant supportive

role to RWSAs.

FINDINGS AND DISCUSSIONS:

0 There were four active federations in the LGUs visited.

U Federations have already proven their worth by providing a

forum for information exchange. For example, in Bulacan, the

eleventh RWSA hired construction supervisors based on advice

from more experienced RWSAs.

0 In stronger federations, staff of older RWSAs assist in

training workshops for new RWSA staff.

0 Federations can loan member RWSAs funds and also have some

ability to influence policies of LGU and electric supply

companies.

0 The Batangas Governor gave the Federation 100,000 pesos in

1984. Another 100,000 pesos is promised when all RWSAs receive

recertification.

D. RECOMENDATIONS RE: RWSA MANALLIALNT

D.1 RWSA presidents should be members of Provincial Bid and

Award Committees.

 - 89 ­

D.2 Existing systems should be rehabilitated.

D.3 As per BWP project paper intentions, Barangay members, or

their representatives, should be involved in the design,

layout, construction, and rate setting of their water

systems. Signing of the ownership agreement should take

place at the beginning, not after constructive completion.

D.4 In the reprogramming of BWP monies, a community

organization program should be established. For examples

of successful projects using community motivators look at

USAID PVO-Cofinancing Projects such as FEED and MWLD.

Municipal staff community organizers could also be used.

D.5 Federations should be established with 3 or more RWSAs ­

not 10 or more as is now the case. The Federation should

be supported by the LGU but remain independent.

D.6 RWSA should be informed through community organizers and

training of their rights and privileges in the BWP so they

can take more initiative in handling problems and be more

creative in their income generating activities.

D.7 Bookkeeper and operator training are essential and must be

developed by RWSAs.

D.8 RWSA Boards should have established criteria for

acceptance of systems, i.e., quality of construction and

training received.

 - 90 -

Technical Concerns

PROJECT INTENT:

According to the project paper, "all technical aspects of BWP are

set forth in great detail in Section 5 of the BWP Administrative
Procedures Manual entitled "Technical Manual".

The evaluation team, however, suggests that there are oversights in

the manual and that the technical aspects of BWP can be strengthened.

XXXXXXXXXX

A. CONCLUSION: BWP has no policy for funding maintenance,

rehabilitation, restoration, improverent_ and expansion

projects.

A FINDINGS AND DISCUSSION:

0 After 7 years of the program, some projects have fallen into

various stages of disrepair and require immediate rehabilitation.

For example,

a. In Lucsuhin RWSA, Lalatagan, Batangas the well is not

capable of delivering enough water. The membership has

dropped drastically. Funds for a new well and incidental

piping are required.

b. In Agsalanan RWSA, Dingle, Iloilo, the system was

completed more than three years ago but was not accepted

by the RWSA. This system needs rehabilitation because the

pipes are leaking, some connections are used for

irrigation and meters are no longer working.

c. In Taytay RWSA, El Salvador, Misamis Oriental, the well

needs redevelopment because the RWSA has reported sand

pumping problems. It is predicted that if this problem is

not attendeo to immediately, the pump may encounter the

problem of "choking" of the impellers which will lead to

the breakdown of the unit.

d. In Camp I RWSA, La Union, the well needs rehabilitation.

It is suspected that the uncased open hole collapsed

causing a very big reduction of well yield.

 - 91 ­

e. In Pawa and Dita RWSAs, Legaspi City, the high iron

content of the well may still be remedied by pulling up
the casing to a shallower depth where soil samples and a
thicker acquifer may yield a lower concentration of iron.

f. In Urayong, La Union, there is a severe shortage of

water. Other springs need to be tapped or a new well
drilled.

g. In Tamakon RWSA, Cavite, the well needs rehabilitation to

rid if of unwanted silt.

0 Other existing non-BWP waterworks systems also need assistance

for improvement or for expansion. Some municipal owned and operated

systems do not qualify for LWUA participation. In some cases, these

systems have fallen into various stages of disrepair because of lack

of funding.

A. RECOMMENDATION

BWP funds should be made available for maintenance, rehabilitation,

restoration, improvement and expansion projects. Perhaps first

priority for funding should go to rehabilitation of existing (BWP or

non BWP) functional water systems. Second priority should go for

the activation of inactive water systems and last priority will go

to new constructions.

XXXXXXXXXX

B. CONCLUSION: Design concepts need to be revised to arrive at the

least costly system.

B. FINDINGS AND DISCUSSION

0 The design of reservoirs does not consider the operational and

maintenance feasibility of the structure under stress conditions.

Because of lack of maintenance at most RWSAs, ground level concrete

reservoirs should be considered in place of steel reservoirs. The

USAID consultant feels that the poor quality of concrete work will

not allow the adoption of this alternative.

 - 92 ­

0 Storage reservoir locations are frequently dictated by the

availability of donated land, which may prove to be a costly

decision. Casay WWS is an example. The well and the elevated steel

reservoir are located on high ground far from the load center or the

service area. Water is conveyed through a long transmission line.

The pipes are bigger than would be necessary if the elevated storage

were located at or near the center.

0 Design has not considered the suitability of some materials.

In Luyong-bonbon, Opol, Misamis Oriental, the service area is

subjected to sea water tidal fluctuations and GI pipe used for

service connections is easily corroded.

0 Vertical turbine pumps with diesel drives are not considered as

a major alternative. It is prescribed in the BWP manual that

submersible pumps should be used and RWSAs will be formed only in

areas where electricity is available. In Agdagao, Passi, the

proposed project should not be delayed because of lack of power

supply. The vertical turbine pump with diesel drive is very

appropriate and is not hard to upgrade to dual drive. Also in the

long run, this set up will pay for itself because the motor can be

rewound locally. The expertise necessary for operation and

maintenance of the diesel engine is available locally.

0 BWP guidelines show that spring sources aria long transmission

lines should be considered for a 20-year design. Wells are to be

designed for 10 years and the expected life of the pumping equipment

is l years. This guideline inhibits the LGU designer from

considering the spring source if the flow is less than the 20 year

population requirement for capacity.

0 BWP guidelines on expected life of pumping equipment is too

optimistic.

B. RECOMMENDATIONS

B.1 The LGU should be reminded that the tabulated approach to

designs is only one among the many available approaches to designing

water systems. Over all considerations should include comparison of

alternatives in each step of the design. LGU design engineers

should be trained on the financial aspect of evaluating alternatives.

B.2 Appropriate materials should be utilized. In a saline

environment, metallic structures like steel tanks, steel pipes and

G.I. service connection materials have no place. Technical

assistance should be made available to encourage the use of plastic

pipes that are cheap, durable and appropriate for specific

applications.

 - 93 ­

B.3 A study should be made comparing steel and concrete ground

level storage. The evaluation team believes that the concrete

reservoir has a definite edge if construction supervision is

maintained.

B.4 In wells with 8" diameter casing and above, the use of

vertical turbine pump with diesel drive should be considered for the

following reasons:

a. In areas where power fluctuations occur, electric motor

may suffer from motor overload due to low voltage, single

phasing or phase reversal.

b. Diesel engines are very appropriate for well sites that

are far from the power firm's distribution lines.

c. Diesel driven pumps are competitive in areas like Cebu

where power costs are high. Vertical turbine pumps are

also more efficient in areas where the depth of the

pumping water level is not so deep.

B.5 Phased construction should be an alternative. For

instance, a 10 year spring source plus a new well after 10 years

should be evaluated using engineering economics of comparing

alternatives.

Well design should not be limited to a 10 year design if the

acquifer has shown a safe yield of more than 10 years. There is

little cost difference between a 10 year and 15 or 20 year well.

This should not apply in areas like Albay where the stability of the

acquifer is not predictable due to volcanic activity.

Design life of pumping equipment should be based on local conditions

such as water quality, design and construction of the well. A
minimum of three and maximum of five years is recommended for
submersible pumps. A study on industry average for life or
submersible pumps could be made using RWSA data.

XXXXXXXXXX

C. CONCLUSION: Construction supervision is inadequate and faulty.

C. FINDINGS AND DISCUSSIONS

0 Hydrotesting is not done. In interviews conducted with LGU

project inspectors, it was confirmed that this vital testing of the

installed pipe network is not performed as specified. What is

 - 94 ­

normally done in lieu of the hydrotest is to fill up the lines with

water coming froi the constructed well and observe for visible leaks

for a 24-hour period. This method is partially effective when the

ground is dry, however it is not satisfactory.

0 Well development is very rarely done. Most premature failures

of pumps are traceable to poor well development and cleaning. This

is true for Tamakan RWSA, Amadeo, Cavite. The contractor used the

pumping unit intended for the well to clean the well. BWP

guidelines are clear on this point that the contractor should bring

in separate equipment to develop the well.

0 Disinfection and flushing procedures are not done. Although

the BWP I project paper has a thorough discussion about these

procedures, there are no BWP specifications on how it should be

accomplished and verified by the construction supervisor.

0 There many construction defects. The following are

illustrations from some of the sites visited.

a. In Anaka, Gingoog City the RWSA president told the team

and the LGU officials that he will not accept the RWSA
office building because the materials and quality of work
is not acceptable. Some of the public faucets are not
provided with rebars. The inspector is ineffective, and
is, in fact, just a recorder of a days work.

b. In Agay-ayan, Gingoog City, the Gl pipes and valves at the

reservoir are welded and a G1 double elbow is not provided
at the interconnection with the PVC lines. The plastic
pipes are exposed. Padlocks for the public faucets are
undersized.

c. In Tayud, Consolacion, Cebu, the GI Piping at the

reservoir is welded. The pressure gauge is undersized and

not provided with a petcock. The roof frames at the RWSAs

office are not treated wood and the paintwork is powdery

because of inferior paint. Electrical wirings leading to

the pump are not provideo with conduits.

d. In Taytay, El Salvador (Misamis Oriental), the pressure

gauge is undersized a PE pipe which crosses an open canal

has no G.I. pipe encasement.

 - 95 ­

e. In Luyong-Bonbon Opol, Misamis Oriental, a long length of

PE Pipe was laid in the canal without any protection.

There is a leak in the pipe and canal water obviously

enters the pipe when there is insufficient pressure in the

line. Water service is intermittent in this RWSA and

direct entry of canal water is a likely possibility.

There is no pressure gauge provided for the pump station.

0 A final inspection is a pre-requisite for FAR payment.

However, this does not guarantee that defects are detected or

corrected at this late stage.

C. RECOMMENDATIONS

C.1 The scope of work of the A & E firm requires them to give

assistance to the LGU in the preparation of detailed design and

the quality examination of work accomplishments. They should,

therefore, take some responsibility for the defective design

and lack of supervision of projects as well as the apparent

lack of training of LGU project inspectors.

C.2 BWP should conduct a training for its own staff on construction

supervision. A regional training for project inspectors should

also be conducted.

C.3 A pre-construction seminar should be initiated between the LGU,

the RWSA and the winning bidder. This is necessary to

encourage the RWSA to participate in the supervision of the

project and to ensure coordination between all parties.

XXXXXXXXXX

D. CONCLUSION: Most premature failures of RWSAs are caused by

inadquacy of water sources and poor quality of water. This is

traceable to faulty design and inadequate field verification by the

A&E firm.

D. FINDINGS AND DISCUSSION:

The A&E firm which is the authorized representative of MLG/BWP for

engineering services is charged with the function of FS preparation

and detailed review of plans and specifications. They are required

to render technical assistance in field investigations related to

acceptance of the sources of water as to discharge, water quality

and the overall adequacy in design and operation. Shown below are

systems that have failed because of inadequate site investigations:

 - 96 ­

1. Camp I, La Union - the well is capable of producing water

for less that one hour. It is suspected that the open

hole has collapsed. The RWSA president recalls that less

than 120 ft. of the well is cased.

2. Urayong, La Union - the spring discharge is inadequate.

Water availability is good for a few hours in the morning

only.

3. Dita & Pawa RWSA, Legaspi City - the systems are completed

however, the water is very high in iron and possibly

manganese. The drilling logs show that the soil samples

tlAken were indicative of high iron because of its black

color and yet the chemical quality tests were not taken to

compare with the Philippine standards before the well was

completed.

4. Lucsuhin, Batangas - the well yield is inadequate. There

is a need to refine the well capacity tests to assure the

safe yield of the water sources.

5. San Isidro, Albay - the source facilities were destroyed

by the volcanic eruption. Design has to consider the

unpredictability of the sources due to the shifting and

sliding of the earth surface. Springs disappear and

re-appear in other places because of this phenomenon.

D. RECOMMENDATIONS:

D.1 Field investigations related to source determination should be

comprehensive enough to confirm the yield of the sources.

a. For spring sources, actual flow tests should be

conducted by more accurate methods. Other agencies should

be tapped like NWRC, MPWH, wells and springs division, and

NIA, LWUA who may have the data on the source being

considered. The recharge area should be identified and

the inhabitants should be exhaustively interviewed to

determine the variations of discharge of the spring.

The LGU should also launch into a program to identify

spring sources and to monitor the yield regularly to

establish the safe yield of the source. The LGU also has

to take necessary steps to protect the recharge area/s

from encroachment by man and animals to safeguard the long

term quality of the source.

 - 97 ­

b. The well capacity tests should be extended to 72 hours

from the present 24 hours to increase the reliability of

the source by excluding the possibility of tapping just a

mere lens or cannate water. The capacity should be made

as a basis for the size of the pumping unit.

D.2 Designers should consider local geology and design appropriate

structures/facilities. Due to the unreliability of springs in

a volcanic area, wells are appropriate but should be limited to

a shorter design life.

D.3 Fhe availability of the drilling log should be made a condition

for payment of FAR. The LG design engineers should be given

training to interpret information contained in the log.

XXXXXXXXXX
E. CONCLUSION: Materials quality control at BWP is limited to

pipes. Accreditation of suppliers has not been established.

E. FINDINGS AND DISCUSSIONS

0 Only PVC, PB and HOPE pipes are subject to quality control

inspection. This is handled by a chemical engineer graduate. There

has been no in-service training.

0 Suppliers of pipes are not required by BWP to submit their

factory production schedules. There is no established control

procedure to monitor production for BWP projects. Civil works

contractors engaged in BWP projects order directly from the

suppliers.

U No factory inspections are ronducted for pipeline fittings,

valves, service connection materials and fittings; water meters,

pumps, motors and motor controls. No shop drawings or BWP

regulatory requirements have been adequately established.

0 There is no BWP policy on accreditation of suppliers of pipes,

meters, fittings, etc.

0 BWP has not provided adequate support to BWP quality control

inspectors in terms of transportation monies to factory sites.

Frequently, the inspectors are fetched by the suppliers to install

the BWP control stickers on the pipes.

 - 9b ­

0 Quality control guidelines regarding acceptance of pipes at

project site has not been established. Shop drawings of pipes are

not furnished for the LGU inspectors. The LGUs were made to

understand that all pipes with stickers are acceptable.

E. RECOMMENDATIONS

E.1 BWP should assign a mechanical engineer and inspectors to

strengthen the quality control team. They should be trained

regarding tests required for all materials employed in the BWP

projects. Assistance of LWUA and MWSS could be solicited in

developing the training program. Government laboratories like

the UP laboratory at Uiliman could also be of help. An AWWA

and ASTM manual should be procured by BWP for the use of this

unit.

E.2 As soon as the quality control team is established and

functional, the BWP should launch an accreditation program for

suppliers and make a shortlist of materials/equipment under

this regulation. The aim of accreditation is to exercise

adequate control over the quality of materials employed in BWP

projects, to achieve uniformity of equipment and tc eliminate

fly-by-night suppliers.

E.3 Laboratory tests of pumps and motors should be conducted in the

presence of a BWP representative. Legitimate pump suppliers

should have a laboratory set up at their plants for this

purpose to insure that the pump set delivered to the site is

pretested at the plant before delivery. This is to pre-empt

the possibility of the pump set re-shipped to Manila whenever

the unit does not meet the field test.

XXXXXXXXXX

F. CONCLUSION: The Engineering Review and Supervision Division of

BWP has not developed comprehensive technical manuals for

construction, operation and maintenance of rural water systems.

F. FINDINGS AND DISCUSSION

0 The BWP manual on Revised Standard Plans and Specifications is

not complete. For instance, for the RWSA Office, the specifications

for the kind of wood to be used is not specified, the thickness of

the cement plaster is not indicated, office furnishings have no

isometric drawings. No specifications for paints or strength of

rebars are indicated. The BWP specs on the RWSA office ends with a

note that says "all works must be oone properly and correctly."

 - 99 ­

0 Some BWP specifications are unrealistic. For the roof wood

frames, although the BWP specs do not identify the type of wood to

be used, they do indicate that the wood should be treated.

Considering the small volume of wood required for the RWSA office,

it is not usually worthwhile to procure such a small quantity. As a

result, the use of treated wood in BWP projects is very rare.

F. RECOMMENDATIONS

F.1 To properly guide the LGU design engineer and the project

inspector on what is "acceptable" work and to provide a

complete basis on which the contractur can base his bid, the

following manuals should be prepared by a waterworks specialist

familiar with local conditions and international standards like

ASTM, PSA and the local building code.

a. BWP Standard Drawings inc-uding shop drawings and drawings

of acceptable products used in BWP project such as meters,

pumps and motor controls. Shop drawings refer to

fabrication and installation drawings of products like

pipes, fittings and valves.

b. General Technical Specifications including BWP

specifications on earthwork concrete, metalwork, piping,

valves, pressure aid leakage testing and disinfection;

pumping, and electrical works, etc. These general

specifications and the BWP standard drawings should form a

two volume contract document.

c. A Special Provision document should be prepared if in the

project there is a component that is not discussed in

detail in the two documents referred to above. If there

is any discrepancy, error or conflict between the contract

drawings and the BWP standard drawings, the BWP drawings

shall prevail because they have undergone a thorough

review.

d. Because of the importance of the Basic Contract, BWP

should devise a standard Basic Contract and Bid Document

form to guide the LGU in this phase of project

implementation.

e. BWP should provide such support as is necessary to the LGU

so that it can devise an operation and manual for each

RWSA. This manual should guide the operator of the system

in the start up of the system and the detailed operation

 - !00 ­

and preventive/repair maintenance activities. It should

also contain the detailed description of the system

capabilities/limitations and a detailed spare parts and

suppliers list.

F.2 A start-up team to assist the contractor in testing the water

system should be formed. The team will identify deficiencies

that must be corrected. RWSA offices and staff should be

involved with the start-up team.

XXXXXXXXXX
G. CONCLUSION: The waterworks repair shops are not functioning as

intended.

G. FINDNLNS AND DISCUSSION:

0 The LGU's believe this BWP requirement is a duplication of the

functions of the equipment pool at the PEO.

0 In most of the LGUs visited, the waterworks repair shop is only

a space provided to store excess materials such as short pieces of

pipes, parts of drilling tools and odds and ends.

0 The waterworks repair shop has limited capability in terms of

providing technical assistance to kWSAs because the technicians do

not have the necessary tools, spare parts or mobility.

0 The LGUs feel that after turnover of the project, an RWSA

should fend for itsclf. There is is no provision in the LGU budget

for the maintenance of the completed systems.

G. RECOMMENDATIONS

G.1 As a prerequisite for the LGU to be admitted to the BWP program

for the current year, the LGU should show in their approved

budget an item for the salary and per diems of the two (2)

waterworks technicians. In addition, a trust fund shoulo be

created to support the maintenance requirement of the RWSA.

The fund may come from loan amortization payments. The fund

will be used to buy in bu]k water meters, replacement parts,

repair clamps, in-seals and double sockets for PVC pipes and

other fast moving items that are used by the RWSA. The RWSA

will be billed for the actual materials used in the repair plus

some percentage to cover for labor and administrative cost.

 - 101 ­

G.2 A locally assembled van shculd be provided by GOP or USAID to

each LGU which has at least five (5) completed systems and a

trust fund budget. (Cost: approx. 100,000 pesos) Said van

should be complete with the following set of tools and/or

equipment:

Tools: amprobe, multi tester, hot plate, blow torch,

flaring tools (3/81I to 1"), Pb pipe cutter, two
sets pipe wrenches (12", 18", 24", 36"), 10" half
round file, adjustable wrench (b" and 12"), five
ton chain block, set of sciew drivers, calibrated
water meter and special tool. for meter repair.
(Cost: Approx. 20,000 pesos)

Equipment: fabricated collapsible tripod, fabricated pipe

bench vise, chlorine comparator and portable test
kit for bacti-analysis (millipore filter test
apparatus and portable incubator). (Cost: Approx.
50,000 pesos)

This van would be an incentive for the LGU to be active in the

BWP progrcam and for the repair shop to actively provide

maintenance and training. Maintenance of the van including

gasoline should be identified in the LGU budget.

G.3 Training for the waterworks technicians on the use of the

equipment will be necessary to make sure that the special tools

and componentts are optimized.

XXXXXXXXXX

H. CONCLUSION: Preventive maintenance is not practiced at the RWSA

level

DISCUSSION

H. FINDINGS AND

0 RWSAs are not adequately trained on specific maintenance

requirements of their system. In the 37 sites visited, only one

RWSA was aware of the model of the pumping equipment. The catalogue

for the pump, motor and motor control accessories are not given to

the RWSA by the LGU.

0 BWP regulations state that an operation and maintenance handbook

is to be prepared jointly by the LGU Waterworks Engineer, Waterworks

technicians, and the RWSA operator as part of the Post-Completion

seminar activities. This is not done.

 - 102 ­

u LGUs are often slow to react to requests for assistance from

RWSAs. In Luyong-Bonbon, Opol (Misamis Oriental) for example, the

RWSA chairman requested assistance from the Provincial Waterworks

Officer for the repair of the polyethelene pipe. Three months

later, no one from the LGU has come to give assistance or advice.

This RWSA is about 14 kilometers from the provincial capitol. In

the past, he RWSA was told that any breakdown of equipment should

be reported to the LGU and the repair and maintenance would be

handled by the LGLU. The RWSA was also told that their job was only

to start and stop the pump. The job of the system superintendent

was to report trouble to the LGU. Therefore, they have inadequate

understanding of the pump station operation and maintenance.

0 Maintenance of steel reservoirs consists mainly of cleaning the

interior of the tank. No regular maintenance is done on the

paintwork.

0 The RWSAs are not trained on the maintenance of water meters.

No regular cleaning/maintenance program for water meters is done.

H. REC3MMENDATION

The operations and maintenance handbook for each system must be

prepared by the LUU training team. The manual must contain the

schematic plan of the system; description of the system's

capabilities; spare parts list; repair clamps and procedures for

repair; short list of suppliers; and the detailed do's and don'ts of

the systems operation and maintenance. It should also contain the

routine daily, weekly, monthly reports the operator must accomplish.

XXXXXXXXXX

I. CONCLUSION: The RWSA Management does not actively participate

in monitoring construction.

I. FINDINGS AND DISCUSSION

As per BWP guidelines, contract signing between the LGU and the RWSA

occurs after the completion of the systems. Consequently, some RWSA

presidents feel that they are not the owners of the water system

being constructed. Their responsibility starts only after turnover.

 - 103 -

I. RECOMMENDATIONS

1.1 The loan contract agreement with RWSA and LGU should be signed

as soon as the BW-10 is released by BWP so that the RWSA will

develop a sense cF ownership even if the project is not yet

implemented.

1.2 A pre-construction conference between the winning bidder, the

RWSA and the PEO should be held. Discussion should include

lines of communications, scope of the work, construction

specifications, construction methods and schedule of work.

The meeting should be held at the project site with RWSA members

encouraged to participate. The meeting's objectives are: to

cultivate a sense of ownership on the part of the RWSA members;

to make them aware of what to expect from the contractor in

terms of quality of work; and also to allow the contractor to

solicit labor from the community.

XXXXXXXXXX
J. CONCLUSION: Water quality monitoring of operating RWSA is

rarely done.

3. FINDINGS AND DISCUSSION

0 Water quality monitoring on a monthly basis is never done. In

only a few RWSAs are bacteriological tests conducted every quarter

and the results are not generally furnished to the RWSA for their

reference.

0 There is no evidence that chemical analysis of a project water

source is done before a source is selected.

0 Most of the RWSAs visited claim that their well was tested but

no RWSA can recollect that their water lines were subjected to

bacteriological testing before turnover.

3. RECOMMENDATIONS

J.1 Before a potential water source is censidered, BWP should insist

that the water be tested and conforms with the Philippine

standards for chemical, bacteriologicJl and biological

requirements. It would be worthwhile l'or BWP to acquire a hACH

 - 104 ­

portable test equipment (DREI2 spectrophometer) or its

equivalent for rapid evaluation of a potential water source.

If the chemical characteristic conforms with the standards,

then the water should be tested for bacteriological quality.

J.2 The LGUs should train the RWSA operator to collect water

samples regularly. The training should include how to identify

the right collection points, and how to conduct a sanitary

survey, and how to solve water quality problems. Training

should be on-site.

3.3 Bacteriological tests could be done by the CHO/PHO or the

Regional Laboratories of the MUH. The LGU should make

arrangements that will allow the RWSA to pay the water test

fees at a lower rate. The LGU and the laboratory analyst

should interpret the laboratory findings and steps

recommended. Results of the tests should be furnished to the

RWSA by the laboratory.

3.4 Although it is the MOH's task to monitor water quality and

conformance to Philippines Drinking Water Standards, BWP should

make it a policy that RWSAs must monitor their water supply on

their own. The MOH is only mandated to do surveillance work.

XXXXXXXXXX

K. CONCLUSION: Many BWP water systems are providing only

intermittent service in an effort to reduce electricity consumption.

K. FINDINGS AND DISCUSSIONS

Thirty six percent of the systems visited had service for less than

4 hours per day, and 53% had service for less than 18 hours a day.

K. RECOMMENDATION

USAID should hire consultants (e.g. WASH) to study alternative

energy sources for BWP projects. The study should include a look at

the water wheel system in Abra Province and the feasibility of

windmills.

 BWP BACKGROUND At IMPLiiLNTAT-bN -huuLUUhLZ,

A. PROJECT BACKGROUND

The Barangay Water Program (BWP) is a uomebt±c vadel' pr,1jyi(1

designed to provide safe, reliable, low cost water systerl foli Ll

rural areas of the Philippines.

With 43,000 small rJral communities, reprsefrtLiiy 'U ili.±-±uil

people having no access to comiiunity wastr systems, Wme UL)VtIu,,h:lL
-f the Philippines (GOP) through the Ministly ut LOLal UuVtiCii,,eL
(MLG) started a rew program in 157b to mnii'iish Uis rurdi. WaLti
supply problem. The Barangay Water Probyam (bff) ,yency wis
estaLlished within the MLG, and this agency wds chargtu wLii Lie
task of developing and monitoring provinc il adn city JoVcr.,L'THL
capatilities for planning, cesigning, constioctiri, inu upuidLi iy
small scale domestic water systems.

To assist the GOP in implement.rg the pIogram, Lre UfriLOU !3LdLeb

Agency for International Developrieiit USAID) ;us piLV±.Lu;eU ritndiiC .
and managerial assistance through ioaiis, ($o miiiorn tur o,,- Li ,lu
$19.6 million to Ba'P 11) grants (i. niii±ori tor u ,i fi) dlu UJ5 iliu
local staff technical assistance.

Phase I of the project Legan in ±i b; Phase ii i, 5.o±. it i"

scheduled for completion in bectmLer .

5WP oper.ites uncer the concept that in Uluel tui. bioj CL Lu Lc

viaLle, the Leneficiary cumaunity nUSL pay lot tMe Cut>C ur
m-intairing -nd operating the system. Aib±, tihc CoMPitLteu ,vJLe.
system is ownec Ly the corrui,ty. Tre culhnun.Lty uyb,, to tLe t=Attlht
of its capauility, for the constrJctiun cost Li U& prdJjtLL.
In advince of the first loan, the GUP uutrtouk rui pliuL
projects to test the concepts of villagj ov,fieu Olid mait ,au wdL L
systems. Funding in the aiouiit of US $1.i milliun was fluue
available by the ;.13tionaL Ecurmic Wveiuplitt M uLIoLty hN'uo), ili
aqency of GOP. Four provinces piluteu tie uitirt piUUS tiol,
project selection through Urga riza Liorl, tLrail iir
i, Lu L I, tuLI OVu
of projects to recipient commurities.

The resbits from these pilot projects wtre very ecouragid. , JIu
provinces and cities all over the country eficucldgeu tu ju±i
the progrirr. Under BVP I only Provincial evclupiuvilt kss±btorC
 - 105 -

Project (PDAP) member provinces were admitted to the program on the

premise that they already had a Provincial Development Staff and the

Provincial Engineer's Office that could plan and implement the BWP

systems.

Under BWP I more than 108 BWP systems and 364 handpumps were

implemented; under BWP II it was expected that about 507 BWP systems

would be completed,

B. PROJECT IMPLEMENTATION

NOTE: WHAI FOLLOWS IS A BR1EF DESCRIPTION OF HOW THE BWP WAS MEANT

TO FUNCTION. THE LISTING OF THESE REQUIREMENTS AND PROCEDURES DOES

NOT IMPLY THAT THEY ARE, IN FACT, FOLLOWED.

The LGU must first meet the following criteria before they can

participate in the Program. There must be:

1. A functional Provincial./City Development Staff with 8 core

positions capable of planning and coordinating development efforts

within the local government. A development staff is presumed to

have a training officer, but in cases where the province/city has

none, one must be hired to handle organizational and training

activities at the barangay level.

2. A functional Provincial/City Engineers Office with adequate

number of engineers and other personnel capable of designing and

implementing development projects.

3. A current Capital Improvement Plan or Local Development

Investment Plan.

4. A current annual budget. ln case funding for waterworks

projects is not included, a supplemental budget must be executed.

In addition, a LGU that qualifies for participation in BWP must

comply with other requirements.

It must sign a Memorandum of Agreement signifying cooperation

--
with the MLG.

-It must form an interdisciplinary Water Resource Development

Task Force.

-It must fill staff positions for: a water resource analyst; a

training officer; a waterworks engineer; and, two waterworks

technicians.

 - 106 ­

-It must form an interdisciplinary evaluation team.

-It must provide a waterworks repair shop.

-It must make an up-dated 5-year water resource development plan

each year.

-It must budget 30,000 pesos each year for training and staff

development.

-It must budget funds each year in the amount of its tentative

allocation for BWP projects plus 5%.

-It must submit an annual implementation plan.

-It must prepare a yearly cost standard booklet.

-It must prepare detailed plans, specifications, bills of

materials, cost estimates and quality control plan for each project

in the annual implementation plan.

-It must organize a water user's association in each project

barangay and submit to BWP/PMS the Articles of Incorporation, the

by-laws and other organization documents and certifications.

-It must agree to participate (and pay 50%) in the following

required trainings: 1) Orientation Training; 2) Seminar on Water

Resource Development Planning; 3) Seminar on Structural Survey and

Feasibility Study; 4) Seminar on Design and Construction of Water

Supply Systems; 5) Corps of Trainors Training; and, 6) Special

Skills Training for Waterworks Technicians.

C. INFRASTRUCTURE DEVELOPMENT APFROACH

NOTE: THE FOLLOWING SECTION IS TAKEN FROM A HAND OUT DISTRIBUTED TO

PROVINCIAL AND CITY DEVELOPMENT COORDINATORS DURING A CONFERENCE

HELD IN FEBRUARY, 1985. IT WAS WRITTEN BY THE BWP PROJECT MANAGER.

IN THE OPINION OF THE EVALUATION TEAM, IT DESCRIBES HOW BWP

WOULD LIKE TO FUNCTION. IT DOES NOT RELATE CLOSELY TO THE
SITUATIONS INVESTIGATED BY THE EVALUATION TEAM.

ITS INTEREST, THEREFORE, MAY LIE IN THE FACT THAT THESE

ASPIRATIONS FOR BWP DO EXIST.

 - 107 ­

1. Local Government Development:

The infrastructure development aspect of BWP aims to strengthen

capabilities of LGUs in the ar2as of planning, financing and

engineering; and at the same time, to institutionalize a methodology

for rural waterworks projects.

In aid of these 2 aims, BWP Infrastructure development must be

supported by:

a. A complete water resources inventory;

b. A realistic 5-year water resource/supply development plan;

and

c. A relevant infrastructure budget.

These 3 documents involve actions on the part of virtually the

whole administrative system of the LW, but more specifically, these

involve the development staff (the planning arm of the LGU), and the

engineer's office (the construction arm). Institutionalizing this

approach simply means making the methodology a part of the LU's

administrative system.

This approach also calls for the formation of a water resource

task force, an interdisciplinary body composed of representatives of

agencies directly involved in water supply and sanitation. Chaired

by the Chief Executive of the LGU, the task force should formulate

guidelines and policies on rural water supply and sanitation. The

methodology, therefore, is directed towards strengthening the local

government system.

2. Functional Waterworks Associations:

One of the basic ingredients for a viable RWSA (the commUnity

organization that operates and manages a rural waterworks project),

is efficient infrastructure. This implies that .he facility should

provide the minimum amount of service for which it was designed. A

badly engineered and/or improperly constructed waterworks project

will give the RWSA a tremendous amount of problems in project

operations.

The BWP infrastructure development includes the following

features:

a. Training and organization of RWSA for effective operation

and maintenance;

 - 108 ­

b. Providing skills to waterworks technicians on repair and

maintenance; and,

c. Continuous technical assistance to the RWSA.

3. Health and Sani.tation Targets:

The rural waterworks facilities supported by BWP, are also aimed

to support health objectives. One of the goals of rural waterworks

is to improve the health conditions of communities, the rationale

being the reduction in the incidence of water borne diseases through

the provision of clean, potable water.

Among the health and sanitation targets of the rural waterworks

program are:

a. Encourage the implementation of vigorous health education;

b. Reduce by at least 70% the incidence of water-related

illnesses;

c. Support the initiation of health and sanitation activities,

i.e., individual toilets/latrines; and,

d. Strengthen the primary health care program.

The water resource/supply task force could be the forum to

determine and develop the policies and mechanics for health and

sanitation activities. Health officers could recommend appropriate

activities that would maximize the benefits derived from the water

supply systems.

4. Development of Related Industries:

This infrastructure development is also engaged in the

development of the quality of waterworks-related materials, to wit:

a. Handpump (for Level I projects);

b. Pipe materials

a. Cast iron

b. Polyvinyl Chloride (PVC)

c. High Density Polyethelene (HDPE)

d. Polybuthelene (PE);

 - 109 ­

c. Well intake structure (screens);

d. Valves and fittings; and

e. Storage tanks.

5. Hydrogeological Data Collection:

Infrastructure development in waterworks technology requires

continuous data collection and analysis. In aid of this BWP

requires of LGUs all available hydrogeologic data, and to collect

these, LGUs should compile an inventory of water wells and

well-drilling logs and information. BWP should be furnished these

data, so that BWP can assist LG s put together a compilation of data

on local groundwater conditions.

BWP has established a hydrogeological investigation program, and

within this approach, prescribed the drilling of test holes for all

water supply systems proposed to get water from wells. Test holes

are reimbursable items, under the Agreed Fixed Amount Reimbursement

scheme (under BWP-USAID agreement).

Successful test holes are developed into production wells that

v.;ill serve as the water sources of waterworks facilities. In the

development of wells, the use of commercially fabricated screens are

recommended for the intake structures; and torch-cut, or hacksawed

perforations are discouraged by BWP because these are inefficient

intake structures in wells.

4
well-drilling operations shall be

All information on all wa.er

gathered, and these include types of rocks encountered; aquifer

sizes and depths; water yield and quality; and other relevant

drilling features. Rock samples shall be collected for every type

of formation encountered during drilling, or after every 1 to 1.5

meters. The LGU shall submit this data to BWP, to support claims

for reimbursements.

6. Proposal Procedures:

BWP provides support for 3 levels of services: Level 1 is

handpump; Level Il is piped system with public faucets; and Level

III is piped system with individual house connections.

 - 110 -

When a proposed Level I project has been reviewed and finally

approved for funding assistance by BWP, a Notice of Approval is

issued.
if the project is going to be done by Administration (force

account), the LGU should notify BWP accordingly, in which case BWP

shall cause to be issued Form BW-1O (Authority to Proceed),

indicating the Fixed Amount Reimbursement equivalent to the direct

cost plus 5% of the direct cost.

If the project is to be done by contract, the LGU undertakes the

processess that lead to awarding the work contract in accordance

with all applicable regulations. The BW--IO shall be issued upon the

LGU's submission of the copy of the contract and the list of

responsive bidders.
This BW-10 shall indicate a FAR equivalent to

the contract cost, provided that such cost was determined in

accordance with the provisions of Presidential Decree No. 1594 as

amended.

For Level II or III project, the source of which shall not be a

water well, the procedure for issuance of the NOA and the BW-1U

shall be similar to that of a Level I, as explained above.

For a water system that will use a well, BWP shall first issue a

NOA for a test hole. A test hole to be done by force account shall

have a FAR equivalent to direct cost plus 5%. A test hole to be

done by contract shall have a FAR equivalent to the contract cost

determined according to P.D. No. 1594 as amended.

After the drilling of a successful test hole, the NOA for the

whole water system may be issued. The process that leads to the

issuance of a BW-10 follows as explained above.

7. Project Maintenance:

Infrastructure development in BWP include the

institutionalization of the following maintenance features:

a. Installation of a waterworks repair shop

- a precondition

for participation required by BWP to be installed within the LGU's

equipment pool compound;

b. CommuniLy organization - water service committee for Level I

or waterworks association for Level II/III;

c.
Skills training for Waterworks Technicians on repair and

maintenance;

d. Creation of the Evaluation Team - a monitoring and

supervisory unit of the LGU which provides technical assistance to

communities; and

 - ill ­

e. Recertification of LGU - one of the features of which is the

verification that all BWP-assisted projects are operational.

8. Continuous Development:

Both LGU and BWP should join efforts to continue to improve the

technical approaches to rural waterworks projects. The basic

consideration, in this regard, is the development of a technology

for rural water supply that is appropriate under local government

conditions.

 - 112 -

ANNEX B

EVALUATION METHODOLOGY

The evaluation team consisted of 2 Americans and 2 Filipinos: Donna

Flanagan, team leader and community development specialist; Diana

Talbert, Management and Training Specialist; Helen Espinar,

Financial Analyst and Edgardo Tolones, Waterworks Engineer.

Although each member has specific expertise, each also had a broad

knowledge of water and sanitation in development projects. Their

areas of interest overlapped and the final report represents their

combined and mutual conclusions.

The evaluation took place from January 14 to March 15, 1985.

The first week of the evaluation was spent in Manila to:

- refine the evaluation design and orient the team;

- discuss the evaluation with USAID officials, BWP staff; and

consultants to BWP;

- prepare the data collection forms/questionnaire/interview

guides

- select project sites to visit.

The scope of work indicated that the team should visit 30-40 Rural

Water and Sanitation Associations. They actually visited 37 RWSAs.

Although sites were selected at random, the team did apply some

selection criteria - i.e., they wanted a good cross section of [WSAs

- some with completed systems, others with systems under

construction; some with Level II systems, others with Level II or

liA. Both successful and failing RWSAs were studied. The team

also felt it was important to spend time talking to the implementors

of the BWP,i.e., the staffs of the PDS and the PEO, and thus they

visited 10 LGUs throughout the 3 major island groups: Mindanao,

Visayas and Luzon. In addition, each team member attended a BWP

"training" and also spent many hours interiewing project management

staff in Manila. During the field work investigations, the team met

frequently to reflect on the progress of the field work, to

recapitulate & share information collected at each site, to collate

data, and to continuously "fine-tune" interviewing and data

collection techniques. At times the team divided into two groups to

do site visits and interviews of officials at separate locations.

 - 113 -

After approximately two-thirds of the required sites had been

visited, the team returned to Manila to investigate possible

solutions to snme of the problems seen in the field. The evaluation

team felt that it was not enough to point out weaknesses of the

BWP. Where those weaknesses were a result of poorly-prepared human

resources, the team wanted to offer suggestions on training and

community organization. Where the weaknesses were a result of

management or financial schemes, the team wanted to offer

suggestions for strengthening those areas; where the weaknesses were

technical, the team wanted to offer reasonable technical solutions.

Consequently, weeks five and six were spent conducting interviews

with ministry officials, non-governmental organization leaders,

trainees, financial analysts; USAID project officers, engineers;

community development workers, construction supervisors; quality

control inspectors; health and sanitation experts. The result was a

wealth of information and a good feel for what is feasible in the

Philippine situation.

During week seven, the team again worked in the field in order to

verify earlier findings and conclusions. Week eight was spent

finalizing the Evaluation Report.

 - 114 -

ANNEX C

SHELADIA ASSOCIATES INC. SCOPE OF WORK

The two engineers are to be assigned to a "zone of coverage,

consisting of near-equal parts of the country, containing numbers of

the BWP subprojects. The activities of those team members will

entail the providing of advisory assistance, advice and guidance on

matters relating to the planning, design, constructions, operations,

maintenane-repair, and remedial work, as required for those BWP

subprojects within each assigned zone.

Each of the engineers, with special experience and knowledge,

may be called upon for performance of the advisory services in other

zones as well.

The hydrogeologist will provide advisory services throughout the

entire country, as required, and as requested by

Provincial/Municipality technical officers, and as directed by the

Manager, BWP, Manila. The services are to consist of

hydrogeological investigations and, if required, the advisory

services related to the selections of well sites.

In addition to the hydrogeological assistance, he is to provide

guidance in the design and constrUction of water wells, including

the procedures for aquifer development and pump-testing of the

completed wells.

In accordance with the objectives of BWP, the advisory services

of the contract-team are to be directed, primarily, through the BWP

technical staff, to the technical staffs of the Local Government

Units of the Provinces/Municipalities. The services are to consist

of field visits to the various LGU's and to the BWP subprojects, as

well as the preparations and presentations of technical papers to

the LGU's, participating with the technical staff of BWp and, when

possible, members of the local consultant group, Techniks.

Project Tasks

More specifically, the project tasks will consist of:

a. The recommending of text-data and engineering drawings for

the revisions to the technical sections of the BWP

Operations Manual; the evaluating of the effectiveness of

the revised manual; and the recommending of future

improvements and/or designs.

 - 115 ­

b. The initiating of the planning for, and the development of,

a program-wide data base.

c. The devcloping of suggested construction standards and

construction-inspection checklists, for use in evaluating

BWP subprojects.

d. The continuing evaluation of design standards and criteria,

toward recommendations for the improvement of the

Preliminary-engineering-design procedures.

e. The providing of advisory services to the staffs of BWP,

the LLU's, and the local consultant group, as required.

f. The providing of trouble-shooting services for the

technical staffs of LGU's and/or Contractors engaged in the

constructions of BWP subprojects.

g. The assessing of additional training needs of, and the

providing of technical assistance in the execution of

training programs for, engineers, and other technical

staffs of BWP, and the LGU's. Implementation of these

activities is to include the writing of pertinent technical

papers, for the review and preparation for presentations to

staffs of BWP and the LGU's, by either the team-members or

by the BWP engineers.

h. The providing of evaluations of water-sources (wells,

springs, and/or surface waters) utilized for BWP

subprojects, and the developing of methods and procedures

for more-efficient explorations and/or utilizations of the

water-resources of the Philippines.

i. The initiating of detailed procedures for the collection of

hydrogeological information, and the required

data-reduction for the mapping of groundwater resources in

selected areas.

j. The active participating in the training programs of BWP by

providing technical papers and/or lectures for

BWP-sponsored Conferences, as requested by the Manager, BWP.

k. The providing of technical-advisory services in areas not

covered by the above paragraphs, as requested by the

Manager, BWP.

To clarify the month-by-month progress of the Contractor-team,

a "Project Milestone Report"' is to be presenteo as a normal part of

the Contractor-monthly-report to the USAlD Project Manager.

 - 116 -
ANNEX D

OF WORK

TECHNIKS GROUP CORP. SCOPE

MLGCD

authorized representative of
The Engineer shall act as the Water

services for the Barangay

in so far as essential engineering the

including but not limited to

Program of MLGCD is concerned,
following:

For New Provinces

or

in the preparation of Provincial

1.
Assist the local government and Five-Year Water

City Water Supply Resource Inventories

Supply Resource Development Plans.

eligible projects and establishment

2.
Assist in the selection of
with the criteria and processes

of priorities in accordance
Program Administration

established in the Barangay Water

Procedures.

of waterworks repair shops with

3.
Assist in the establishment and size, training of

emphasis on selection of location of

the managment and utilization

personnel assigned thereto in
in the shops.

the tools or equipment stocked

For All Provinces

A. Pre-Construction

and presentation of training

1.
Assist in the preparadion design and construction,

programs in waterworks engineering as

wel, as, repair

water-system management and operation,

and maintenance.

of project feasibility studies

2.
Assist in the preparation of preliminary engineering

with emphasis in the preparation including site

reports, to conduct field investigation data gathered, and

of technical
surveys to insure accurancy
water as to estimated discharge

acceptance of the sources of

or yield and water quality.

specifications and bill of

3.
Review all detailed plans,
approval as to adequacy in

materials and recommend their

operation;
in order to

engineering design and system

the consultant shall be

expedite the reviewing processes,

assistance during the

required to render technical

and specifications in the

preparation on these plans

provinces and cities.

 - 117 ­
4. Review the cost estimates of projects and recommend their

approval as to reasonableness based on current cost

standards; or whether costs are essentially comparable to

the costs of similar work done in the vicinity of the

project.

5. Establish and periodically update with the local governments

standard unit costs on the various materials and work items

in each major geographical area on the program.

6. Assist the local government in the preparation of the

implementation schedules (PERT/CPM) for project construction

activities and assist in the updating of said schedules.

1. Construction and Monitoring

1. Check and monitor construction activities through periodic

inspections of the projects and through BW-12 reports to the

extend necessary for certifying that the implemented work

substantially conforms with agreed plans and specifications.

2. For work done by contracts, to assist the local governments

in the pre-qualification of contract documents relative to

the performance of specialized contract work items approved

by MLGCD.

3. To assist the local governments in the performance of work

through guidance in proper construction procedures; and to

conduct qualities examination of work performed either by

Administration or by contract in order to insure compliance

with the plans and specifications and quality of work agreed

upon.

4. Check and report results of factory and laboratory tests of

materials to be used in the projects, and verify frequency

of tests conducted and completion of all required tests.

5. Assist the local government in recognizing and identifying

technical obsttructions, probable problems, and formulate

the necessary recommendations and/or resolutions to effect

the satisfactory prosecution of the construction work.

6. Device and execute an efficient system of reporting

concerning the status progress, delays and deficiencies

project construction.

7, Prepare standard plans and designs, or shop drawings various

water sysem components of typical BWP water project, to

ensure local governments adherance to the BWP Technical

Manual and assist in the revision of said manual when needed.

 - 118 ­

2. Acceptance of Work

1. Conduct pre-final inspection of work accomplishing and to

assist the local governments in determining the defects

which are to be corrected, in order to minimize repair and

corrections during or after the final inspection.

2. Conduct final inspection jointly with MLGCD and USAID

representatives. Auditor and MOH representative in order to

execute certificates of acceptance of the project, and

assist the local governments in accomplishing project

documentations which are necessary for reimbursements.

 - 119 -

ANNEX E

H E A D S, INC. SCOPE OF WORK

The Consultant shall assist in strengthening the monitoring,

research, and evaluation capability of BWP. This shall be done by

recommending measures to develop the feedback or reporting system

within the program and between LGUs and the BWPs management office.

The field of inter-agency coordination shall also be explored, which

could provide BWP with data to improve the strategies already

employed. This work involves contact with LGU operating departments

and representatives of other water supply-related agencies.

Relevant to monitoring and evaluation, the pre-conditions for

participating that ensures the commitment of LGUs should constantly

be examined for improvements. Regularly, assessment of the

participation of LGUs should be undertaken to provide BWP with

information on the problems encountered in complying with Program

policies and standards. Annually, an in-house evaluation should be

designed and conducted to measure the competence and capacity of BWP.

The Consultant shall assist in strengthening the training

strategies of BWP. This shall involve recommendations to amend the

training contents, approaches, devises, and even participants and

timing of implementations. Manuals on the national training courses

shall be developed and printed, as well as manuals and handbooks on

the community level curricula. This work shall also involve working

with training units and personnel of both BWP and the IUs.

The approaches for organizing RWAs for developing the

capability of this cooperative-type association should also be

strengthened further. The community should know what the waterworks

facility is all about, and what are involved in making it a viable

enterprise. These approaches should lead to the formation of a

functional society, at the same time they should involve activities

that LGUs can effectively undertake. This work shall involve

assisting in the organization of waterworks target communities and

in conducting the training activities required.

Work Completion

The works specified under these Terms of Reference may be

considered completed when the present reporting and monitoring forms

in use in BWP effectively cover training activities, community

organization activities, and infrastructure activites in the field.

These forms should not be difficult for LGU personnel to

accomplish. LGUs should be made familiar with the documents to be

submitted to BWP and the Program phases to be covered by these

documents.

 - 120 -

At least one in-house evaluation shall be conducted in the

year, and the Consultant should assist in the design and planning of

this activity, and in the compilation and organization of the data

gatehered therefrom. Revisions should be introduced to the

monitoring and evaluation manual of BWP in aid of developing the

feedback and data banking system.

At least 7 national level training projects shall be pursued,

and the Consultant should assist in the design, planning and conduct

of these activities, after which evaluation of the training

methodologies should be made. Assistance should be provided to

various LGUs in the organization of RWAs and in providing management

skills training for RWA officers and leaders. Assistance should be

provided in developing and completing the LGU handbook for community

organization.

 - 121 -

ANNEX F

REFERENCES CONSULTED

"Balita". San Juan Waterworks and Sanitation Association,

Inc., Bulacan, December 1984

Barangay Water Project,

Community Training and Organization Manual, 1983

Barangay Water Project (BWP)

BWP Post Completion Training Manual

Basa, Oscar T., OCD/Engineering,

Field Trip Report for November 1984, December 17, 1984

Beebe, James

A Practitioner's Guide to Rapid Rural Appraisal,

USAID Philippines, November 1984

Dr. Adelina A. Cabarrubias, "The Surigao City

Mothers Club: A Model in Community Development,

September 1984.

Economic Development Foundation

Evaluation Study Barangay Water Project, Vol. 1, II,

March 1980

Integrated Water Supply Development Plan,

Province of Bohol, 1985

Local Resource Management Project Paper

(492-0348), USAID/Manila, June 1982

Lowry, Emmet F.

Evaluation of Level III-A Pilot Water Systems in the

Philippines,

Wash Field Report No. 57, September 1982

"Misamis Orientul Provincia1 Evaluation Team Report

Luyong, Bonbon, May 1981

Panaman Rural Water

AID Project Impact Evaluation Report No. 32, May 1982

Philippines: Rural Roads I and II,

AID Project Implementation Evaluation

Report No. 18, March 1981

 - 122 -

Professional Rural & Urban Consultant, Inc.,

A Situationer, Survey-Study of BWP Participating LGUs,

July 1983

Professional Rural & Urban Consultants, Inc.,

Community Training for Rural Water Supply Development

Rurban/BWP Development Paper No. 83-02, October 1983

Professional Rural & Urban Consultants, Inc.,

Monthly Progress Report on Institiutional Consultancy

Services, June 1984

Professional Rural ano Urban Consultants, Inc.,

Rurban/BWP Development Paper No. 83-03,

A Framework Towards Cooperatives Development for Rural

Waterworks and Sanitation Association,

October 1983

Project Paper, Barangay Water Project I, April 1977

PDAP - Department of Local Government and Community

Development

PUSH Panay Unified Services for Health Implementation

Plan.

Regional Inspector General for Audit, Manila,

Audit Report No. 2-492-84-08 USAID/Philippines,

September 14, 1984

Rural Poverty Unperceived: Problems and Remedies,

World Bank Staff Working Paper No. 3, July 1980

Rural Roads Evalution Report,

June 1978

Rural Water Supply and Sanitation Master Plan,

December 1982

Sheladia Associates, Inc.

Summary Report, September 1981 - October 1983

 - 123 -

Silverman, Jerry, Development Alternatives, Inc.,

Ogaen, Keith, Student Intern, USAID/Philippines

Summary Assessment Report: Bicol Integrated Area

Development 111 (Final Draft), June 26, 1981

Som, Somnath

Sheladia Associates, Inc.

Monthly Report for December 1984, January 14, 1984

Technicks Group Corporation,

Monthly Status Reports, August/October & December 1984

Tippets-Abbett-McCarthy-Stratton,

Ebasa Services, Inc.

Development and Technology Consultants, Inc.

Study of Infrastructure Investment and taintenance in

the Republic of the Philippines, December 1984

USAlD/Manila

Project Paper Panay Unified Services for Health,

May 1978

Tunisia: Care Water Projects,

AID Project Impact Evaluation Report No. 10, October

1980

USAlD No. 492-0322, November 9-25, 1983

Final Evaluation of the Freshwater Fisheries

Development Project,

WASH Technical Report No.22, February 1984

Human Resource Development,

WASH Field Report No. 27, November 1981

Rural Wells and Sanitation Project,

Strategy for Implementation and Evaluation of the TOGO

WASH Field Report No. 82, May 1983

Observaticns of a WASH Participant,

Evaluation of the TOGU Rural Water Supply Project:

WASH Field Report No. 118, March 1984

Maintenance: Sources of Training Materials,

Training in Water and Wastewater Operation and

 - 124 -

WASH Field Report No. 99, August 1983

Promotion for Rural Water Projects in Malawi

WASH Field Report No. 51, July 1982

A Rural Water Supply and Sanitation Training Course

for peace corps volunteers in TOGO,

Water Sanitation for Health Project

Guidelines for External Training, February 1984

Water Supply Development: A Case for Planning

in the Philippines, October 19b3

Water Supply System for Bulacan Province:

A 10-year development plan, August 1979.
 - 125 -

ANNEX 6

PERSONS CONTACTED

RURBAN, INC.

Jovencio D. Torres, Project Manager

Emmanuel M. Luna, CO Expert

Perla Mariquita C. Lopez, Community Education Expert

Flordeliz M. Dandal, Community Education Expert

Harvey Delgado, Training Specialist

Ascencion Borromeo, Fiscal & Records Mgt. Specialist

Ruperto J. Ambat, Cooperative Development Expert

Jaime G. De Cano, Dev. Planning Expert

TECHNICKS GROUP, CORP.

Restituto Karamihan, Project Coordinator

SHELADIA ASSOCIATES, INC.

Som Somnath

Joe Callahan

HEADS MANAGEMENT

Marissa Gadong

Aida Gatpandan

PROJECT COMPASSION

Victor Penaranda

Augusto Orozco

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID)

Harold Collamer, Controller

John Tennant, Chief, OCD

Keith Brown, Deputy Chief, OCD

Oscar Basa, USAID Engineer

Renato Galang, USAID Engineer

Ed Plata, Controller's Office Staff

Tessie Buna, Controller's Office Staff

Jessica Garcia, Controller's Office Staff

Dr. Rosendo R. Capul, OPHN

Randall Cummings, ORAD

George Flores, ORAD

Ricardo Tanzo, OCD

 - 126 -

PHILIPPINE BUSINESS FOR SOCIAL PROGRESS (PBSP)

Ernie Garilao, Executive Director

Ruth Calienta

RURAL WATER DEVELOPMENT CORPORATION (RWDC)

Angel Alejandrino, Asst. Gen. Manager

Luis Ceraphone, Manager, Operations Department

Willie Pura, Manager, HRD Division

Bert Bautista, Manager, Project Management Division

Myrna Apolinario, Head, Training Section

LOCAL WATER UTILITIES ADMINISTRATION (LWUA)

Wilfredo Barreiro, Manager, Water Supply Training

Lenter

Thomas Carlos, Chief of Certificatio and Evaluation

Division

MINISTRY OF LOCAL GOVERNMENT (MLG)

Ben Conti, As~t Chief, Finaneial Management Services

Rafael Barata Mini tFy Budget Officer

Leonardo Regala, Chie Accountant

LOCAL RESOURCES MANAGEMENT PROJECT (LRMP, NEDA)

Antonio Fernandez, Jr., Project Coordinator

January 22

BATANGAS/LGU

Norberto Sangalang, Provl. Development Coordinator

Mateo Aranda, Provincial Engineer

Jun Mendoza, Supervising Engineer Planning and

Programming

Filemon A. Ramos, Water Resource Analyst,

Provincial Developemnt Staff

Mr. Manalo, Training Officer, Provincial Development

Staff

Bayani Marasigan, Team Leader, Provincial Evaluation

Team

RWSA

Cuenca Emmanuel

Antonio Mantuano, RWSA President

RWSA/Luksuhin

Ricardo Caguimbal,Waterworks Supt. Operator, bookkeeper

Domingo Vivas, President

 - 127 -

January 28

MISAMIS ORIENTAL (Cagayan de Oro)/LGU

Hon. Fernando B. Pacana, Jr., Governor

Felipe Ondong, Provincial Development Coordinator

Ruth de Leon, Monitor & Water Task Force

Carmelino Derequeto, Training Officer

Francisco Camacho, Jr., Asst. PDL

Engr. Relio Acaro, Senior Development Project Analyst

Eng. Demoslhenes Olario, Waterworks Officer;

Head of Water Task Force

Alberto Palma, Planning Waterworks Engineer

Eleno Dosdos, Health Office: Sanitary Inspector

Modesto Babaylon, Chairman, Committee for Infrastructure

Engr. Aniano H. Paraguya, Provincial Engineer

Engr. Rey Tolinero, Waterworks Resource Analyst,

Provincial Development Staff

January 29

SINAI

Pedro Clarin, President, RWSA

Esfracio baillo, Sr., Stant Post Leader President

Donato Paterno, Board member

Luzminda Paculba, bookkeeper

Concordia Sumobay, Treasurer

Virgilio Unson, Plumber

Primitivo bayong, Systems Superintendent

Eufracio Baillo II, Collector

G.MANGPONG

Ermita Brasal, RWSA President

William Malaran, Operator/Plumber

Lources Batalla, Manager/Bookkeeper

Bonifacio Bagas, Plumber/Collector

Rogelio Malaran, Plumber/Collector

TAYTAY

Conchita Maglasang, Board Treasurer, Acting Bookkeeper

Esteban Vicariato, Operators and System Supervisor

Elpidio Valdez, President of Board of Collector

KIBAGHOT

Pio Ragma, President

Andresa Cagampang, Treasurer

 - 128 -

January 30

GINGOOG CITY/LGU

Miguel "Mike" Paderanga, Mayor

Eleuterio Retuya, City Development Coordinator

Joel Pontellas, CDS Management Specialist

Feliciano Arocha, COS Sociologist

Emma Caingles, Senior Records clerk

Nestor Palad, Economist

Engr. Edwito Rana, City Engineer

Engr. Godofredo Abuzo, Infrastructure Analyst/Waterworks

Engineer in Task Force

ANAKAN

Alfonso Gulayao, RWSA President

LUNAO

Mrs. Virginia Nunez, Clerk/Collector

Artemio Cruz, System Supervisor

AGAY-AYAN

Dioscoco Samporma, RWSA President

Luciano Fajardo, Barangay Captain

January 31

LUYANG BOMBON UPOL (Mis. Oriental)

David Obias, Systems Superintendent/Past RWSA President

Mr. Ocola, Collector

Roselie Antique, Treasurer

Emiliano Actub, Operator

February 1
CEBU/LGJ
Lolita Sanchez, Training Officer

Engr. Edgar Sibonga, Special Asst. to the Governor/PDC

Hon. Eduardo Gullas, Governor

February 2

LIBURON (Level III-A)/RWSA

Maximino Yamyamin, Barangay Captain

CASAY (Level Il)/RWSA

Leodegorio Montana, Treasurer

 - 129 -

Estanislao Carusca, Bookkeeper

Ernesto Beceril, President

Jesus Sandoval, Operator

Alberto Ang, Vice President

February 4

CEBU/LGU

Norma Zofra, Officer-in-Charge

Patrocinio Bocay, Provincial Engineer

Mr. CarLilla, Provincial Development Coordinator

Connie Angus, Design Engineer

TAYOD CONSOLAClON

Nestor Ruiz, RWSA President

February 5

ILOILO/LGU
Frederico de Guzman, Sen E
-'2velopment Project Analyst

Mr. Ramos, Personnel Officer and Trng. Officer

Evelina Sustento, Assistant Statistician & Trainee

Hon. Conrado Norado, Governor

BUGA-LEON

Rufino Caduduan, Board Member & Ex. President

Mrs. Teresita , Bookkeeper/Treasurer

February 6

AGDAYAO/PASSI

Ricardo Palmares, Mayor

AGSALANA, DINGLE

Milagros Dacula, Sec./Treasurer of RWSA

Mansueto Maca & Felix Dona, Barangay Council members

February 7

SINOGBUHAN RWSA,

Paquito Alfeche, President

Antonio Soquital, Vice President

Elena Blanco, Secretary

Tomas Gaquilon, Plumber

Adriano Natinga, Jr., System Superintendent

 - 130 -

OFFICE OF BUDGET & MANAGENENT (OBM)

Muhammad Tajaguinumbla, OIC Special Projects Budget

MINISTRY OF FINANCE

Ellen D. Hernandez,. Asst. Director OLGF

ABRA

Philip M. Tingonong, PDC Abra

February 27 & 28

CAVITE/LGU

Adora Fijes, Training Officer

Rodel Cruz, Water Resource Analyst

LdU- Tirona, Provincial Development Coordinator

Jimmie Mojica, Waterworks Engineer

Luis Colada, Cabeza RWSA President

Fely Ramos, Bookkeeper Cabeza RWSA

Domingo Angca~a, Salaban RWSA President

Cavite Prov. rwsa Federation President

Mamerto Loyola, Systems Superintendent, Salaban

Ernesto Ferrer, Systems Supt., Lapidario RWSA

Ariel de los Santos, President, Tamakan RWSA

Artemio Cortez, Systems Supt., Tamakan RWSA

Virgilio Malabanan, President Dagatan RWSA

Jose Legaspi,. President Loma RWSA

Emeng Angcaya, Systems Supt., Loma RWSA

March 1

LEGASPI CITY/LGU

Bletran A. Mejillano, City Engineer

Dominica Lorbes, City Development Coordinator

Joseph Esplana, Water Resource Analyst

Nicetas Alavarado, Supervising Dev. Analyst

Josephine Arana, Waterworks Engineer

Elena Labales, Fiscal Analyst

ALBAY/LGU

Norma Navarro, Water Resource Analyst

BUNGA/RWSA

Ester Fuenlabrada, RWSA Board Member

SAN ISIDRO/RWSA

Antonio Rodriguez, RWSA President

Domingo Valera, System Superintendent

 - 131 -

March 2

MANGARWSA

Glorioso Rellama, RWSA President

Feliciano Sinpolrabajante, System Superintendent

March 4

BULACAN/LGU

Norma Gamos, Dev. Project Analyst

Mandy Centeno, Asst. Provincial Dev. Coordinator

SAN JUAN, BALAGTAS/RWSA

Fernando 0. Santos, System Supt./Bookkeeper

Paterno Reyes, Meter Reader/Collector

Stanley Alcaraz., Operator/Plumber

Yolanda Mendoza, Secretary/Cashier

LOLOMBOY

Rafael C. Victgor, System Superintendent

Enrique Linsangan, Clerk

March 5

BULIHAN

Albino Panga, President

Juan Bernal. Secretary

BUNSURAN 11 GITNA

Rodolfo Salazar, Board Member

SAN GABRIEL

Basilio Luciano, President

Olivia Torres, Bookkeeper/Meter Reader

Myrna Jose, Collector

TABING-ILOG

Prudencio Felipe, Acting System Superintendent

Jesaida Punzal, Bookkeeper/Secretary

March 6

LA UNION/LGU

Henry Orejudos, Provincial Dev. Coordinator

Rodrigo Tabora, Training Officer

Arnulfo Delizo, Water Resource Analyst

CAMP I/RWSA

Jose Alambra, System Superintendent

Vicente Madarang, Operator

 ANNEX-

MALACANANG.
Manila

MCLTrIVE ORDER NO. 777

'F-NT Ajiu
REOF.ASIZING THE MINISTRY OF LDC.AL GOVEREXR
IH
- "r, RLNAKING IT A-5 MINISTRY
COt'JMITY DEVELOP
OF LOCAI GOVE iMNT AND TRANSFERRING. ITS CCO$
MUNITY DEVEDP.6EN FUNCTION TO THE MINISTRY
OF hbKJ SETTLEMENTS kND FOR t)TiER PUTPOSES

iERE.A.S, w'under the Nev' Republic,. ational economic

-igor and
development shall be pursued vith reneweq
greater deteri nation ;
and .ormmunlty
'6qERrkS, tbe M)inistry of Local Govprnment
"developrenl
Development shall be more effective instrument ofrelating

if it specializcs in 'the functions specifically

will

to local goveruDent development ,rd supervision..which o.ther

avoid overlapping and dupLication of functions with
){inistr es ;•.
the
%I{EREAS, the adoption by the government of
program
L.k&sag Kabuhoyan at KaunJaraL as a priority of Human
reinforces the bpprobch
ta.len by the Ministry nanel.y

GettLcments in the performence of its funcLions for a me;

the strate y self-help &nd emphasize the

need
end

integr'ated appruach to conumnity 6evelopment;

as

- WVh1iERS, u-nder Presidertial Docree No. 1416 such

aumended, the President is empowered to. undertake

y be &pprc
organizational e-nd related improveents as
pri--te in tho light of chaxgIn4g circustit-nc&
Lnd ne..,
developments5;

NOV, TIRPE.ORE, I FF-RDINAN D E. ?VURCOS, President

in mi
of the Philippines, by
.irtue of the po'wers yested
me by
"in
by the Constitution and tbe authority verted bereby

Preidential Decree No.

1416, cs a&mended, do
-order and ord&.in:
 Appendix 2

AS;j. A- t~ cb
auooy tf oo~
a trf~

AA GI r'. 1 V

&z OorU7.L-tv ut vz-2 en tmm

~~fl~~t~~rz.Wv .== t~'cLOe~z.

J2 c
is b reb v r t a. me d a. c.? L L te- e It.!-e

7" en: znd Co--u.. De v~ I- m- r, i 4 -1-% a. -L,,r -

D-oZ--. e -e -: - :s G :. t-*
-eiz
, c", e &

*C.Zorz ' &e

-nd t MA:-y 0-f Prper.

-ac*
e. :-= -! ' ;

at e o-a1 r L
it:-~ -! t
I 2f

lie tze aza C.-e L:

Xt, =2 b~c P- o z e : 7. .c:ve.~

~~~~ Lu- s~t y~. c_n sz An::.~:~

c ~~ ~
07jX-lntF :-
 Appendix 2

... ~ar]
Sbe &I~

r..5tt ers.

abe 7~ ~
t -­ rer'we
:0 C i2 --
"-N r
(5"'
A S .. L - i t , L
3-L . J! .

C o7i Ae e

S_ehrr Vi-
St
r. o&1C~
A.

F rjt-
_
-
~ ~ s~~~-
of ~c.~ ' '.U~2. t~. D e c r e e
v .-

A
C-1!
d.'w-

a. d

e
.
C' . r.t
4L - .

o r­ - 0:' M&
C .:
r - h-
o l f -

- h
St
e~~~ ~ (*.
~ - C rIA CC h

E01.

- -z r-A t.r

-
07'=-

tzo; ­ . -

___7

7>
, -
6

T- C C v

'1
C 70
 of the Bur eeu 0r cal Governm ent
'C'C 6.
ra unc- 4-or's Ior~
ZE=L. be re:EL.,0
D!t-

r' 0ye
vie re'. Th1 ­

ne CApaSce

of v~ ~..j.1ir

Ao~l
!I-
t.o dvel1op t1e

v~~ .~- OLE,.h

~±1j e\a2-t~2

or--i V
-S
2
'k 1 o I-

r- 2 -
di cccL e F- A- r.e . I­
on.I e d ve o -. d De
F.l -- 1p

eL h la.0
P-i &-rte2e t1ai
fc ei I ans
p*:

?r z.-:a
g 7:- e ri

t*­ r .-
n ~ 5

.
Wt I. I
. ?.
for L
c.

s
zitZ4~ 7 1
FX
c. It 1:

(i) ~~ ~c ~j* re~

"L, S 7

'

x la b 4r- ts n!

1r c -- -e
it
d
Mod~qI iko c~tSZ.Zioa of rjn~aL1 inaL-1txm~ andi budretL-r.
±~ lCor~lvD
t.. iV~~Cqcdtab-Ie; distr-ibution of fundx .*':
nd ObjLic tUoMA .. 0na- 1.oC-&L. g0oVerz-nfLt unz-itaS* exropriaitioai
of acquiitiond oMf' ul. da; n,'t-i os
n. othr for-.s matteri
nte.A
-Lpontvnts of ocid ofriciki &ad ,elted

-uidellnea lor &DU 3 6..LA V A-"-­

(2) Forzulate
governiag loce-i government, local develop­
.- ntation of irne
ent pla.&n and LLe of local funIs;

•-irci t*C_ -kL s.rpe..rri il n b h lf of. the

gover3rent prop-e&x activitiox at thQ.­
ist ar ov er local
city, winicipal and ber-ngay.- ,. levels;
;ional, provtncial, • .• - , .. ..
. . ..-. - *. *. . j • ; ­

Perform other functions provld'd by law or assigned

it '(4).
by the iister.

asid Offices under Ad u.ir-istrative

SEC. 8. Arencis
)er-v-islon. - All agencies and offices uiner th& aamniostra­
of, or attached to end assisted by the

T superv sion
includang
the
Llstr-y shall remain under the '{ioistry,

Paglilingkod sa Eagong Lipu nLn

I u, , Secretariat

2. KatipuLn ng raga Sarnggunien National Secretariat_

' - and the Pa-bansang KatipuLan ng mia Porong Bayarn
-;a Pilipina5 Office.

Aid
3. Inter-Agency Com..ittee for Nationel Goverment
to Loca l Govern~mtnt Units -

-zsion on Local Governmzent Persornel.

4.
Joint Co
Administration Secretari at

5. Ph-ilippine Genefo.'l Co.-is-1son

6" !"anagement Information Systers

Office

7.
B-rarigay Brigades Development Progr&m Office

8. Lupong Ta-apagpagaiap Secretariat

9. Falral Roads Prograa

10. Rh.Lr-l Roads Improvement Program

II. kran&ngy W'ater Progr&n

 Appendix 2

15. 7LS ~ eC~E~Project

Be..7 r--. Se- i I~z 0if'

j
Con .e rs 0 .. t
efe '

rr
j ~
O.'L t h'z tYI~ vTC. -)Ii, C . Cd a .-7 4 - &P 5 rd.
'

~'5
-r. .
'~~---- ­
fi
of~~~~~~' r-o
t
* I~
'
s 0~~~~'-

­ 5 v tf :-Z
e~riCrd

-
-i LX -.
___________
v~- _ ~~~~' f

--
-t~
J
- -' -
d, r -- . L

-D e :- B D- r--

Tb r

7s --
Z-

-,--I

-- 3.' a

Y* I

zi!Irs IL
 y.a- of. OurLord,' Nineteen Bundred &nd Eighty-Two. -.',
in the

7. " "L--J ""

esi aD .tb i ppi es

!ry.*,the President //"." - "

J C. U T. V-
uty Pr-es etial Et .utive Assistant
 .d dro ANNEX *I

1!l..cCF TH1E rtIILIPPMUNS

MIN L-T'Y CF LOCAL GOVE.NENT
o UOF THE INL Thft

26 January 1983

CIRCULAR

NO. 83' -2

S.U aJQCT : -ECZNTALIZATrION OF SPECIAL PROJECT

pro­
Pursuant to nat.cnal policy and Presidential the Ministry
nouncement on effecV::e decentralization, that all special pro­
of Local CovernT.ent hnereby directs (GOP) fundtd
Jects, both Governmer.c of the Philippines be implemented by the

as woll as foreiGn-assi3ted, shall The ceiponuibllity of

racipient local government units.monitoring, evaluation,

providing technical assistance, shall be assumed by

and supervision of a ecial projects rha Minictry.
the regional
and field otfices of
scheme is to

The purpose f tni5 decentralization local government

build an4 r rnitren h- ¢.pabilities of
prrjects for

units to administer, imple .enc and manage itself toward

development. Essen:'ally, itl hall address
capability tor:

developing admr istr t ve and tec.nical c) organzation

a) pla.nning, n)
s ad:i;inistration,
5nd pro]er imp:nmentation,
and ma:.a.emen,,
- CG r . M2n
1OCa r-?re r a.':rrg
:jra1 de vel'up.,.n t,an
0

f) for TncRtorng S:- *c.at..aion. hence, whenever pts-Jibil

, t.e concept s and processes in capaoility

and apiropriate through the Provincial

buildir.g which were already developed shall be utilized.
Develocment AssiLsta.ce Pro3ect
(PDAP)
establish a

For the initial year 1933, the MLG shall of administra­

level
classitcation sche:.e
to determine theand municipalities.
tive capability of prcvinces, cities
the formulatio:fn of prog-
This shall be used as the basis for to local government
rams, projeCts, and a.-_tivities responsive
J

need.
objective, it is
For the .lttainr.enc of the acove-stated
hereby directed:

implement all

1.
That local goverr.nent units shall as, Rural Rcads

nationally ais~ited projects such

Page 2/

Program (RRP); the construction, rhabilitation

oetterinert And iml£nrven.ent of bara.-Ogay roads

(CI B1); the school building program, both repair
and construction, including those administered by
the MLG as well as those coming from the 50% of
MPWH school building appropriations; and, the
maintenance of all roads and other projects envi­
sioned under Executive Order No. 767.

2. That in order to ensure continuity for nationwide

implementation of foreign-assisted special projects
such as: BWP, PSC, RRIP and TRIP, the Ministry
sh.ll _:evelup apupriate t.nancing schnefies for
their eventual transfer to GOP.

e..~haster. the dccentraiization process, it is hereby

directed tat:
1. The Special Prc3ects Offices at the Central Office
2hall "'cncef r t., devolve ippropriate functional
.ti' r- in~ d and field offices.
2. The MinA'try "rLL.n and field offices shall pro­
V.'-ie t.eCh.LCXI .ar'ce, monitor dnd evaluate
all special pro3ects. Likewise, the regional offi­
ces h;all i,.ntnfy *..d develop the appropriate
dnts to handle 5uch r ;nccion. Meanwhile, the appro­
priate Central Special Projects Offices shall pro­
vide tthe ee.rv technical and financial assistance
to regcunai :,no i.ed offices to develop tLeir capa­
b'..tl'. 3.
3. A1 . " .: -. : [ 'c:L:.} ?r.offictc Offies 3h.all
the ov0eC-all iq Lhe Gffice of Lne Deputy
buy:v.5un
Minizter for Locil Government Development. In coor­
dination with tne M.ristry Staff Services concerned,
tne ep.ty Minister :hail effect the adjustment of
.tn appropriaticns i;i cne authorized P/P/As to be
"pport.iconed to tne Fegional Offices on the bais of
nerds&and activit-es.
4. Th.e Ptovincial. O,-elpmnent Assistance Project (PDAP)
•;tafL snall r.ow :e lnte~rated with the Mnistry and
shaL. tuction a; cochnical staff to the Deputy
Minn.ster tor Local Government Development.

Page 3/

This Mnistry Cicc.ar- shall take effect immediately

and detailed implementir.g guidelines and office orders
shall be issued accordingly.

For compliance.

Minister

 ANNEX J

REPUBLIC OF THE lILDPINES

MINLSTRY OF LOCAL GOYERN
I? fT
OFFICE OF TE IUNJSTER

March 9, 1983

.MINISTRY CIRCULAR
NO. 83- 5

TO : ALL CONCERNED
OF
SUBJECT : GUIDELINES ON TEE IMPLEMENTATION 26,
JANUAPY
CIRCULAR NO. 83-2 DATED
DECENTRALIZArDN
1983 RELATIVE TO THE
OF SPECIAL PRO3EZTS
which provides
Pursuant to Circular No. 83-2
Special Projects and in
for the decentralization
of thereof,

order to attain efficient implementation

are Ikereby defined and
the following guidelines
guidance and com­
enunciated
for the information,.,
pliance of all concerned:

A. Coverage: This Circular covers special

projects particularly, RSC,
BWP 'and RRP.

B. Roles and Responsibilities:

1. The Special Projects shall:

in consultation
a. Through their staff and
the Regional
and coordination with
for
Offices, conduct an orientation
and approa­
field personnel on concepts
during the
ches in capability building
1983.
second quarter of CY
 -2­

and traininlg
b. Identify expertise/manpower
prograXm/project at
requirements of their
which shall
each level of implementation and schedu­
designing
serve
as bases for
ling training programs.

actlvities/tasks
c. Unload the following
personnel
to the concerned
field
training:

immediately after the

continued
1, Recert'fication for
provinces! cities
participation of
in the program/project,
PDIP/LDIP/CDIP.
2. Review of AIP and

3. Progress inspection.

and consultative services

d. Provide/tech-rcal
decentralized respon1s­
to field offices for
bilities.

and evaluation of

e. Undertake monitoring
in support to
decentrali.zd activities
policy forulation
program or project
and standards development.
undertake final
In appropriate cases,
in coordination with
project inspection

responsible field personnel.

with

g. In consultation and coordination

a continulin
Regional Offices, undertake
for
concerned field
training program
personnel.

Regional offices the

h. Turn over to the
Project decentralized
specific Special
the second quarter,
activities
before
CY 1983.

 -3..

2. The Regional Directors shall:

a. Be responsible for providing technical

assistance, monitoring, evaluation and

supervislon of decentralized special

project/activities to tGUa.

b. In coordination with Special Projects con­

cerned, identify the expertise/manpower
requirements and training needs for such
other activities/responaibilities where
these are necessary for effective and
efficient program/project implementation.

c. Identify the unit/personnel who shall be

responsible in the technical supervision
of the implementation of projects by local
government units.

e. Cause the immediate implementation of

decentralized functional responsibilities

after turn-over by Special Projects to

Regional Offices.*

as In appropriate case, review and approve".

a. recertification for continued partici­

pation of cities/provinces in Special
Projects;.

b. feasibility studies.

f. Review and recommend the approval of PDLP/LDLP

CDLP/AIP to the Deputy Minister for Local
Government r -velopment.

g. Cause the immediate submiasion of inspection

reports to tac Deputy Minister for Local
Government Development.

h. Submit periodic accomplishment reports to the

Assistant Secretary for Planning, thru the
Planning Service, for analysis and integration
in the .tivinitry periodic accomplihment
reDort; and
 -4..

I, Perform such other duties and functions as

embodied In annexes "A, B, and C" which
are
hereby made as integral part of this Circular.

3. The Office of the Minister shall:

Retin responsibility o'er policy formulation.

Btandards development and monitoring and
qvaluation of decentralized Special Projecta/
Activitiea through the Deputy MJ.niter for
Local Government Development. Support for
these activitie shall be.provided Dy appro­
priate Special 'Project staff which are now
integrated into the Ministry under the Deputy
Minister for Local Government Deve-opment.
b. Determine the necessary financial support
for
decentralized activities and responaiblittiea,
through the Deputy Minister for Local Government
Development in coordination with the Regional
Directors.

ce Cause the 'release ,bf administrative and

opera­
tional funds to regional offices in support
special projects/actvtea, through the Deputyof
Minater for Local Government Development.

This Circular shall take effect immediately.

For compliance.

Encl: Annex A, B. and C

 DECENTKALIZ~rrON OF BWP ACTIVITtE
REG[O' kL OFFICE RESPOZSEBILITLES
ASPECTS CENTRAL RESPONS B ILTIES(PMO)

TEC-HbC.AL Capability bulding for Reilonal

offices. Irnplement guidelines.
. Project Ide tilicatioa Prcrdea guldelinea LGU and a.aaLst
in
Work with
completlon of LDIP,
Water Resource
inventory. 5-Year WRDP. ALP.

Project progress inspection in

Project progress inspectioa

1.2 Tec hncal AssBiaur_= coordination with BWP office.

jointly with Regional Office.

Recommends correction to Lnfra

Corrects infra deficiencies.

deficiencies.
Develops operat tona handbooks,
manuala. Work with and monitor activities
I.3 Superviaioh or Local
• Provide guidelines

eof the local evaluation teams that

io Lca oi gd
13 u go about assessLng the status of

completed projects.

Monitor status of operational

1.4 Operational Project Provide guidelines; consoUdates
projects and
submit regular reports.
Monitoring reports.-
Conducta actual
assessment of LGUa

Provide the procedu.res/poUclea

1.5 Recertitlcatiot and recertlfies eligibUilty for/

-fthe

continuance
of partlctpation
Prograza.

Execute turn-over of completed

1. 6 Completed Projects Compiles turn-over certificatea

projects.

and
TPRAI2N-UG & INF1{ERTION Conducts the ortartatioa activity
2.1 Irdtial or ertaton Provide threchallic to inarticipatton.
.- LOUs
,-.... ,'I to
certify compliance with pre­
•

 ASPECTS CR2NTRAL RESPOMBLLITIES(PMO) REIGIOtAL OFFICE RESPONJSIBLLITUI

2.2 Nat'l. Level Tralnings Build capability of regloLal CouL,.Lct tra.U-Jm.ga at the Regional
otfices to plan and adatnister level..
the activities, provide technical
astatance.

2.3 Cotrcnunlty trainLng Proa1de guidelines; may assLst Work with LGUs in planning and
regional offices. implementing training activitlea.

2.4 Coordlration with Task Provide gutdelLnea

Coordinate and work with LGU
Forces/Commlttees
water Resources Dev't. TF9 and
Committeea in formulatirg water
supply initiatives.

3. FItNANCIAL

3. 1 Tech. AssLatance Provide technical assistance in AsaattLGUs in the preparation ot

activities the preparation o plans and plans and budget.

budget.

3.2 Capital actlvi-tiej Proyides FAR fund-, per USATD Adnirdntrative coordination at LO1U

Loan No: 492-U-0.- "evela and allocate funds io apr-ryev

ir oje ct .

4. MONITORUiG &F8VALUATIOIN
4. 1 Documentation Provide procedure and establish Cause the prompt delivery by ara
M & E system; collectalcompLles reaponsa of all LGUs coccerntd,,all
all documents., also establish a region biaed data
* bank.

4.2 Project/Prog-raz= Schejul-s & desg-Lr., projecta and •Aaslst in cOr,4uct of and data gathe­
 REPUBLIC OF THE PHILIPPINES
MINJSTrY OF LOCAL COVEUNMENT
Quvzon City
December 6, 1983

CIRCULAR

NO. 83-27

T O : All Regional Directors

All Special Project Managers, And

All Others Concerned

SUBJECT : GUIDELINES ON THE DECENTRALIZATION OF THE

SPECIAL PROJECTS

Pursuant to,.and in conformity with, Ministry

~ssuar~ce for the dccer :ralization of special projects,

the following activities are to be undertaken by the
various offices concerned:

1. All certification requirements for participation,

and all recertification requirements for con­
tinuing participation, ir the special projects
shall now be submitted tc and reviewed by the
different regional offices. Regional Develop­
ment Directors sha.l certify to the Central
Office the participation eligibility of any
province or city within his jurisdiction on
the basis of the review of certification/re-
certification documents.
For this purpose,
the regional offices shall identify the

different personnel or unit that will take

charge of these activities. The PDAP Staff
under the supervision of the Deputy Minister
for Local Government Development, shall review
all c t-c'Lions/receLiLicatiofls for con­
firmation by Central Office and allocate cor­
responding resources. The PDAP shall provide
tr.aining and technical assistance to the Re­
ional office in relation to the review of
tte certication/recertification require­
me rits.

2. Effective immediately, all project submission

of provincus and cities for the Rural Roads
Program shall be made tt: an-d accepted by *rhe

-over­
1P
 /2

the submitted

Regional Offices.
The review ofand cost esti-"

plans, specifications, designs

mates shall be done at the Regional offices
re­
by the Regional Engineers or responsible In

to do the
same.
gional officials assigned the pro­
are in
the meanwhile that the regions
the

cess of building up their capability, RRP

Rural Roads Program shall assign one the region­

at
Engineer for each region to stay month

al office for at least one week every

engineer or official

and assist the regional

concerned in the review of plans, specifications.

tech­
designs, and cost estimates, transferring
nology in the process.

(CIP's) or

3.
All capital improvement programs plans,

local government development investment

the reQional offices,

shall now be submitted to thereof.

furnishing the special projects copies by the

shall be done
The review of said plans of technical

Regional offices with assistance who shall

personnel from the special projects,

and/or technical

provide training, briefing

regional

assistance as are necessary to the be at

offices. Approval of these plans shall

of the

the Ministry Level, upon recommendation however,

RDD's.
Annual irplemetatio
plans, technical

shall be reviewed and approved, with projects,

asistance and support from the special

by the Regional Offices.

indi­
- 4. In the case of the Rural PRoad Program, an6 below

vidual projects, costing r500,000.00

iQ... -iDLcctor
shall be approved by the Rec DL-06 ind

concerned and for the purpose Forms

DL-10 shall be sianed by him upon recommenua­
by

tion of
the reviewing officer designated
shall De

him. The DL-06 and DL-10, however, Local

approved by the Deputy Minister for in excess

Government Development for amounts of.

of P500,000.00, upon the recommendation of

In all cases
the Regional Director.
Offices,

approval of project by the Regional be furnished

the .Central Project Office shall

copies of DL-06 and DL-10.

Rural Service

5. Barangay Water Program and the such that

Center shall develop procedures 1984 shall

implementation of projects in CY

-over­
 /3

Rural Roads

follow the pattern set by the can be

Program. All activities whichreqional and

brought down to the level of or

specific

local offices in each individual

commenced by

special project shall now be the Central

various levels, retaining at the

involving
office minimum activities
field.

special projects

6.
The monitoring of on-going regional of Lices,
shall now be handled by the personriel
.relying upon their own technical and vI.V(lk­
in the inspection, verification Lo
rulLJiv
tion of the various activities
In cases of

the project implementation.

assistdnce

the
problems however, requiring technical

and support of Central office shall imme­

personnel, the regional official Special Pro­
from
diately request assistance which central

ject Central office concerned,

dispatch the

office unit shall immediately,

personnel assigned to such region.
Unle.ss

or both the province/

upon request of either
office

central
city an: the regional office, project site

enaineers shall not go to the

regionJ! official

without first consulting the prob­

shall
act on tbeo
concerned, and together.
1Cm.

shall now review

7. The Special Project concernedto the last two

their budgets corresponding

basis of tle number

(2) quarters and on the and on-ooin

of projects that are

approved account, the
in each region, taking into
cities participating

number of prov:ifnces and

shall allocate a
in the respective program, fu ­
rtZ.. -­ ' thcr currcnt :pcrating
have been ucelraated
support the activities that system which
to the regions by "cash advance" in support
shall be programmed and liquidated
of the objectives
of the activities in pursuit
of the special project concerned.

shall take effect imme­

8.
This Memorandum Circular reirioe, amend or modify

diately and shall revoke, are inconsistent or

all prior issuances which

not in con:_, rmity herewith.

 :,::'' ;, ; :. , I-­
-­
MI-'
. -,<*:i% ,% ,
l,..'.:*

12 1

PXPLJDLIC OF THF ?H1LJPP1Nr.S

NWIN!STPA' OF LOCAL C0VYXINM.HT

Q.e.ZOn City

December 6, 1983

CIRCULAR

N'0 83-272

T 0 --.I Recional Directors

All _Cpecial Project Managers, And

T,,1 Others Concerned

SUBJECT :GUIDELINES ON THE DECENTRALIZATION OF' THE

Puirsuant to,, and in conformity with, Ministry

suarie±1 or the doccentral.izationi of special proiects,
tb-e followina activities a-i're to be undertaken b~y the
variou!3 of fices concerned:

1. All certification requirements for participation,

and all recertif icaton requirements Ifor, con­
tinuing
, Jid'>- '<
<i;<-;2/: --,
_://,"&

-'i :
par-ticipation,,in
_,'r','?, :.<

the, special projects, 7
shall now be submitted to -and, reviewed by the
diferent regional ofie0 Regional Develop­
ment Directors, shall certify to :the Central
Offr-;ice the, part icipation, eligibility of any
* povice r cty within his jurisdiction on
T-he basi:s of the review of, certiiicatior±/re­
cc.rtifiLcat-ion docuntso this purpr~se,
ncregional offices shal ietfy the
d~ifferent personnel or unit that will t ake
charge of these activities. The PDAP Saff
under the sumervi-sion of the Deputy miriester
for Local Gorernment Development, shall review
llcex L C aLors/r c (-r t.LCat -"01S for Core­
- :6.rrazion 'by Central Office and allocate cor­
resporidiria resources. T*I-e PDAP -- hall provide
tra2ni~qand technical assistance to the Re­
rrlorna2 OF ice in rc,2lation to the review of
r;.r 4 F - c I- o r e gu i r e ­

2 . fi-crtive immediately, all project submissions

ofL provincous arid citie~s for t-he Yural Roads
Programr shall be. madLe tr aiid accepted by trhe

-over­
 ------
- -- *i - $ - - - - --------

Regional Offices. The review of the submitted

:iO-"s
designs and cost esti­
plans, spec icat
Offices

mates shall be done at the Reqional re--

by the Regional Engineers or responsiblesame.

In

gional officials assigned to do the

in the pro­
the meanwhile that the regions are
the

cess of building up their capability, RRP

.Rural Roads Program shall assign one

.
at the region­
Engineer for each region to stay month
a! office for at least one week every
Sand assist the regional engineer or official

specifications­
concerned in the review of plans, tech­
designs, and cost estimates, transferring
nology in the process.

(CIP's) or

3.
All capital improvement programs plans,

lo'cal government development investment offices,

shall now be submitted to the regional

copies threof..

furnishing the special projects done by the

The review of said plans shall be of technical

Regional Offices with assis-tance who shall

personnel from the special projects,
technical
provide training, briefing and/or the regional
assistance as are necessary to
plans shall be at
offices. Approval of these of the'

the Ministry Level, upon, recommendation

Annual implementation plans, however,

RDD's.
shall be reviewed and approved, with technical

projects,

assistance and support from the special

by the Regional of fices.
indi-,
4. In the case of the Rural R.oads Proaram,, anc6
below

vidual projects, costing P500,000.00

shall be approved by the .

concerned and for the " rms DL-06 ind

I.
DL-10 shall be sianed by him upon recommenda­ by
tion of the reviewing officer designated De

The DL-06 and DL-1O, however, shall

hi.. Local

approved by the Deputy Minister for in excess

Government Development for amounts

of P500,000.00, upon the recommendation of.

the Regional Director. In all cases of

Offices,
approval of project by the Regional be furnished
the .Central Project Office shall
copies of DL--06 and DL-lO.

Service
5. Barangay Water Program and the Rural
such that
Center shall develop procedures
in CY 1984 shall

implementation of projects

-over­

I;. -
/i
 ,
follow the pattern set by the Rural Roads
All activities whichregican n be
Program. the level of
a an

rougt dwto
k!:
7
.
. l cal. offices
special
o
in each individual or specific

project shall now be commenced by .

at the central

various levels, retaining involving the

activities
"
~field,."minimum
Office ],•.

special projects

6.
The monitoring of on-going regionlal offices,

shall now be handled by the n n e

l

upon their
.relyic
own technical perso
and va..idi­
in the inspection, verifiction
tion of the various activities relative to

the project implementation.

In casestof
the assistance

problems however, requiring

andi support of Central office
technical

personnel, the regional Official, sha2l- imme­

from Spec Pro

diat-.ly
re ust assstance which central

ject Central Off ice concerned, dispatch the

o ffice unit shall immediately,

personnel assigned to such region.
Unl.ss

the province!

upon request of either or

both central office

city- and the recional office,

the project site

engineeIs shall not go to.the regiona' official

without first consulting shall act on the prob­

concerned, and together
1am.

shall now revicw

7.
The Special Project concernedto thethelast two

number

their budgets and

(2.quarters on the basis 'of
corresponding
are
approved and on-ooing

that taking
in projects
of each region,, into account, the

participating

numnber of provinces and cities a

thie respective program, shall allocate

in -
fun d -t ­
- their currfnt cpcrt

been delegated

support the activities that have system wnich

to the regions by "cash advance"
shall be programmed and liquidated in support
of the objectives
of the activities in pursuit
of the special project concerned.

effect iTmme­
This Memorandum Circular shall take
8.
revise, amend or modify

diately and shall revoke, are inconsistent or

all prior issuances which

not in confrrmity herewith.

Minister 1
 c.• '1 ..V

' I:CRIINGTHE RURAL;WANDWO.

S D-ETIPYIT ,NICOP'STON .,....

copeecoverage of wster,sup)ply ce.-ccq orth whol country;" :,

L'E-rIZS, the pro, ision of watersupply in Metropolit aM .. ,­

nila snril in the ilarger munic' , ip'i os ann6,cities 1%_ been ,as .-. "" : 7;

• signed to tuMiooianW tp.noks adSewerage syetem (NWSS€) - -- '..

Lccai Water :' '.,z
an :th1, z4!istra4'-:.c:; (
A;, (1Mt %. ,f;6-Pctively
; , the other areas not-'coveredi by ,the MI-SS and the ... .
Y- ,.As !i
WU.A. axe prr-.domin'ntly rural ai:ni --nd the efforts of rovdr­
the water s1pply noi
dS of the i~es_dents therein, are -frazented -: ,

amn,mE1,',
s : i,,Au;der. ~ nismd..
f rn Presidenti. .a Decree No.,1416p
... ..the ..President
. . . .. "'

is empcw,;rr.d to under ,nlko such orgvxizational and .:related ira-: . "

'

provementv as may bc, app'ropriate ir, the !ie'ht of chaneing circums- >::

taces ano new dovelopments,.

Philippines, by virtue of the pov.ers vestedS in me by the Consti­

tution, arid the, authority wcsted ;In mc. by Precsidential D-cres No. " .

1416t do hereby order au d idlai: . •

DECILRATION OPo '".";C.Ul I ,.W

C. ,VDC
SECTION I. Declaration of Policy. - It i s hereby declared '
to, be 'the policy of'-the State to pursue i n an orderly, and vigorous .
marner the :i an,n.i
-," , u I complete cverage of water supply servi­
/" cos for th: 'wholeo oourtry. Completc. co'-ora~x:o cam'ot be achieved '

unless service to th'.- urban and densely Top astc arx,:,as is, corn- '
indwith service, to the thinly settled =-aral areas. The
rationaliz-ation of tho water supply sector structure, shall ther&T
fore, be pursued in aiccordance with the following strategies;

a) The National Nate= Resources Coizazil shall be responsible

for formulating:, policies and, framework plans for water
,supply. Consiz";'-.L' with'those poei ;.ies and fr--,mework plans,
' t, Ministry of kablic ,Works shall be responsible for de­
he

'li veloping, integrated natioiw.! water supply plans and pro­

~groin Covering all soctors, and agencies concerned:

oA

 b) The MWSS shal concentrate its operations in Metropolitan

l~azilaandsuc contliuo aieiAs _MV
u be-adddto- Its
area of jurisdictlon in acoordanoe with theprovisions of
its charter;

c) The LWUA shall promote water districts in cities id mu­

nicipalitics "ith a population of at least 20,000 each;
and
d) A caparate and permanent institution 'shall handle the
rural water .:4'upply sector and azeas not servicei by. the
above-mentioned agencies.

To attain thobjective of water supply service coverage of

rural, areas, the Government sha'! encourage self-help and self­
reliant water supply projects and promote the organization of
non-profit, non-7tock rural waterworks aesociationz, or coope­
ratives hereinafter to be referrv.d to as EWA'9.0

Thc heavy financial burdens that RWA's must sustain to be­

ccme effectively o~tablishcd and cpvraticiaally stable indispen­
sably necessitate every tenable support and assistance by the
11,tional Government, its incitrumentalities and agencies to the
fullest extent.,possible.
SEC. 2. Creation of Rural Waterworks Development Corpora­
tion. -'To implement the foregoing policy, there is hereby crdated
a public corporation to be known as the Rural Waterworks Develop­
mcnt Corporation hereinafter referred to as the Corporation, which
shall be primarily responsible for the fozmi tion of RWA'a that
will construct, operate and maintain water uupply systems in the
rural arca. It shall likewise proviCe technical, institutional
and financial assistance to the iWA'. The Corporation shall be
directly under thce Office 6f the Preeiduint.
SEC. 3. Relationship with the Ministry of Public Works. -
The Miinitry of Public Works shall serve as the principal imple­
menting agency of the Corporation for engineering and construction
of water supply projects.

CORPORATE POWERS

SEC. 4. General Powers. - The Cor.oration shall have the

following general powers:

a) To have continucue succession ixder its corporate name

until ctherwise provided by law.

bf To adopi, amend and/or repeal ii3 by-laws;

c) To adopt and use a seal andalter it at its pleasure;

d) To sue and be sued;

e) To enter into relev&it contractr of every name and

nature and to execute all pertinent instruments for

their execution andimplementation

-2­
 . To borrow funds from any, s0u=c, pr<vate or public
f s~bod and other
evidence of indebtedflbeO, the payment of 1i.c
shall be guaranteedi by the fNational Government.

devise, gift,
g)To rece've, ta3eeasr4 hold by tequest, or~in
purehase or lc-aoet either absolutely trust for
and domestic sources,

any of its purposes, f;6m foreign sub­

personal
any aset,,i'rant or property, real or
~je6t to
ro provided in existing6
-3.lmiains
suqh a."•-,

laws ald rc-clations; and to coav,.y

the same

grants or properties; intest and reinvest its

under this 'provision and deal with and expand promote

assets and income in siaCh manner as -will best

its objectives;
the
h) To exercise thc right of emin- nt domain when'ever of

dttainment
Corporation.dccss it necessary for the
its objectives­

i) To preoc:rie uru.e an( rogulations in the conduct of

and implement
its gencral business as well as to fiz
of its related activities;
thc termc and conditions

J) To establi;i,, operate sc0. maintain branch or field

its busi­
offices when reqlred by the' exigehn4esof
of Section 24;

.ness subject to the provisions

the num­
k) To determine its organizational str,_cZure and
itp personnel; and
ber, positions and salm-rLis of
1) To exercio such powers 6nd,Iosuch things au may be
aa. for
l.purposes
necessan, to car:y out the b from
which the Corporation wa" eptbliohcd or which
time to tine m.'"be AIecll-ce. by thc Board. of Directors
to bo neco.ssary, ui'ul, i.-:id:,'tl or a.=illiary to
acozplish sucti, p a neOgflcrq1l~y, to exercise
.t.l.I
Law
all powers of P Cocom ioI "luli te CorNration
of this
that arc -not inconsistCt with theprvisions
Exccitivo Order.

SEC. 5. Specific Powers. - The Crpowatiol, is- hereby auto-

assist RWA's to

rizcd and cmoowcrG, to promote, encourage and available to

the end of mAking adequate water supply services by the

(esidents of the rural areas not served nor covered

LWUA n *he VSS and for this purpose it is hereby specifically
auth.,rized and directed:
a) To prepare fnv..ioility studies . development plans for
of

water systems development including the proc.remtnt

necessoar facilities, devices, and acccosory equipmcnt;

information,

b) To cooperate, coordinate and exchange such

cooperation of

studies
mdreports with and to seek the
the National Gov.

other agencies and instrumontalitiGs of

corpo­
ermnent is luding govezi.ent-owned or contr.:!led
to the

rations, as will be moot effectively conducive

Order;

achievement of the purposes of this Executive

 ) To provide manageiial or administrative ezpertise
including the renderinj of ,profesesional, and tr'ai­
ing services for 'the development of the staff and
eployees of*-teRA;
d!) To have exclusive juiisdiction to receive from
RNA's all articles of incorporation and by-laws and
amendments thereof, consolidations, merger, conver­
sion, dissolutic.n, ar.ua.. !inci'-l statements,
chnng(s in the loc3t'Ion of principal offices, en­
n a.1 c~ctions and otbev relztcd documents and,
upn .. rminini that such re in confo'rmity with
this B ,cutive Ordei and the pertinet provisions
of related legislation, to certify the same, to
file thom in its records andmaintain a registry of
such filing;

e). To makc, Io',s to RWA' for tho con tuct.icn and

acqui8ior, of facilities, related properties, and
equipment for supplying water services and for the
restorction, inp.Ovement or Oxpansion of such faci­

f) To provid: or arrange for grarts to RWA's' for point

sourecs developmcnt, under such terms and conditions
as t? Board may deternine;
g) To approve or disapprove any request for permission
1o acquire loans from other londers to RWA's which
at the time are borrowers of the Corporation; and

h) To report annually to the President of the Philippines

on the ttatus of its operations,. in,-.uding a compre­
hensive report of loans extended, areas serviced as
a result of such loans, rmd other activities.

CMiPPER 111
CAPITALI.TION AND FINA!ICI .N

SEC. 6. Capit:.lization. - The autho,:ized capital stock of

Corporat-;. as %nc billion pesos div.d.ed int.. ten million

shares with' a par value of one hundred pesos per share which

shall be wholly subscribed by the Na;ional Government and

-shall be appropriated, prograrnmed ant.. released upon consul­

tation with the Minister of tho Budgct and in accordance with
Presidential Decree No. 1177.
A str.nding , sunk of P26 mi'lion is horeby autho­
rized to be arprpriaitei out of any funds in the National
Treass'-ry not otheriiso Appropriated to oover grants, insti­
tutional dt.velopnent, manpower developmental training and
technical assistance of the '--rporation.
SEC. 7. Loan Standards. - Only RWA's shall be entitled to
loans from t- Corporation. Im extending the loans autho­
rized under Section 5 (e) hereof, the Board is hereby autho­
rized empowered and directed:

-4­
 a) ?!ior to approving such loon 'to doterm'i that:
'1) The project is fin.i'icially feasible for 'the pur­
pose for which the loan is applied for;
2) Funds are or will be imminently available for the
total adv,rrment of suCh lc:n to the borrower
on the t-chorcdcu- contemplated under the loan agree­
mo't;.
3) The borrowe= is financially cnpable of complying
with the tc.rms land conditions of the lonn;
b) To roqire that the oa _.be to"2-liquid-.tint within
thternes -nc. condi ions spocified;
c) To requiro that th, , of loan rqpIiu-, for doeo
not cxcce-1 ninety (90) perc!rnt of th total cost of /
'the p'rojveq'tq;,

d) To impose reasonable intertst rates:

e) To fix scheGdules for tepay.'Lient; ind

f) To require coi-pla"nc ,i-th the ; rtinent procedures,

raiGs and rr tirs,.ron,,ted by tho Board of
Directors of thc ,orporotion tc assure that the puz­
iN.ses of such loan will be timely achieved and that
h'.. lon' agreor,-nt and th rovisions of this Act
shall bc con:pliod. with,
EC. 8. Eni.,ircoment Powers. - If any RWIA with an out­
ut.-nding loan(. 1.ith the Corporation e.hall default in the p63'­
ment of its p,..I and/or intercst or shall f il to comply
with any of the tLx=s :.nd conditions of the loan agreement or
any rule or promuigval3 in implewentatiion of tii
Executivo Order, the Donrd of Dirocto::s c'f the Corpor.tion is
hereby authorizcd tD nny oir any combination of the following:
ae,
a) Refuse approval of .nny nc"w lcn to the borrower;
b) Withh1id withou li:-'i,tion the Corpxoration's advance­
::nt, cr witiholi -t.'s -prcnval for vVy other lender
with respect to which h,. C:oratdon har such approval
power to make nfvencen;ccr.t of any funds pu's-ant tc 'any
loar -0.2 -ady nadc- to the bcro_,ower;
c) 1i 0hold -iy techricr.! or profeasAonaI -a" .t .ne
b:izg Ifurnished or thnt frght be furni shod 1--- the borro.
wer;
L) soreclose any mortgage or de,.i or tr,.L9t or othor secu­
rity b,:ld, by the ..- ,':n on the p-'opor'Cics of the
h\irrowr. I t- cInn.ct , th . Crpornti-n ruay,
Subict to an. s'pc.icl. or o,-eoual ricghs in such
,ny other "ed"'
lien h-d by .-
i) ,Bid for -idpurcnase or cthe.,-isc acquire such

propjxr tyieve.);

2) Pay the purehse price therocf wod any cost and

expenses incurred in connection thorewith out
of the revolvin& fund;

-4i

 the Re­
3) AccePt title to such properties in the name of
-public; and tto ffrec"Yco~s

menit, maintnp~flcC and rcht~bilitatiofl of facilities

nul s.stome to b- foreclosed? but the Corporation
shall,
w:.thin threc years from ncquining such properties in
th- ezc for such consi­
foroc',su.re proceedings. 601.
the purpo­
dcrtain as it deterino .sc'Conducive to
ses of this Executive 0r6er. or
agreement
e) To._c:; any crnrh-r renedsia! neasure which th2 Ioan
may provide.
any
In ad '"tiorto the forei,ng, the Corporation may petition
court ha-ving, Lrcch
ctio f-.h
.- nxp'nose or any admirdietrative
regulatory povers ,or euch ptUipos to issue
agency possessi. ;
necessary,
sucl. -rde:r nrl iffTrd such law.fuI relief as may be
SC.9 Cencra2 Condition- of Loans.
- All loans extendedcon­
general
b,:. the C rpormtiori sjhall be& suLct to the follnwing
di'tion: the
a) No b,-rrower sh-ell, witbout the prior approval of
Board and of any other lender, holdi:,c, rxd sharing a
lien on such borrower's propcrties, sell or dispose
of.the wholc czr a-nY part of the property, rights, fran­
chise, permits or any. other assets acquired and/or
mortgaged pursuant to the provisions cf this Execu­
tive Order until all the. outstanding indebtedness in­
eluding inter est thereon to the Corporation and any
other such ler~&r shel 1 h-vc been fully paid; Pro­
vided, Thrit tho Corpratiunay by appropriate rule
or rcg-.ltio= grant . nernisain 1.t- borrowers
to disposc of" inci.entl rca ./or personal proper­
ties, rights, fr.rnchl.se, u'iVj' or other assets no
longcr dcened, necessary cr useful iii conducting the
borr-nwer's operatior..
..
z) .'tion
a' with an oxu%! din. loan with the Cor­
por!-tion sihmll borrcw.' men.; f.:cru any source without
th,. prior written ap .- vn1 of the C.rporction; Pro­
vid>1-, That the Boird o% Dirc.ctorc of the Corporation
iay, by appropriate rule3 or regulations, irant gene­
r3. p,4aii.ion to such avsoci.tion3 to secure short
term loans _nvt requiring the encumberiflg cf their
rea. ;.-' rties or a s ot,9artial porti on of other pro-
S prti~ or Desets.
The fore,,olng con ',_ti,,ns sh.0l bc. included by reference
or imcorv.ration in .ll loans apprcve6
by the Corporation.
SEC. 10. Foreigro/Local Lona. - ith thu prior approval

of the President, upon recommendation of the Minister of Finance

the Corporn. n may borrow frcri local or fore. rn
private or
nublic institutions such amounts as may from time tz time be

vuquired. by its opcrations or to issue bonds and .4ter evi­

-- -f -) c io+"..
To e erOise n- l .the general and e .... p" Of ,
the Corporation unless otbemda.e, provide in .this
ftecutdive Order; an~d
g) To delegate any of its powers to a duly designated rep­
sentativo.e

SEC. 21. Secretanry of the Board. - The Corporate Legal

Counsel! shall act as the Secretr~l of the Board and shall
have such additional duties and functions as the B,.,ard may
determine,
SEC. 22. General Manalcr. - The management of the Cor­
poration shall be vested in thu General Nanager who shall be
a person of knyown intc .riy, cap~to at0 experience in
technical and executive filds rcliatd to theobjc tivo* of
this Ex.cutive O.de-:. ieshall b., aopinte
y tby Prceident
of th-: Filippires.

*"i ; 23. Powers and Duties of the Genral -'..nagr. - The

pocers n, duties of thei Ccnc Nan*:cr
Xr be av follows:
a) To execute, admirister e -nJ..i.p
[ioifle,
ton fOF.­
. promulgated by the
surcs, ruleu r.nd rerliatic'
-a
'Bot.rd
b. T3 31rect :w.! supc.viso the operr.tion and genera.
administratiou of th Corporation;
c. To represent the Corporation in all its deplinges;
d. To pass upon and approve the corporate papers sub­
mitted ulnder SEction 5(d) hereof;

e. Subject to the guidelines established by the Board, to

app-,ir:, and fix the numbr
a-t,.-.nion of subor­
,i-j: t.o officials and er,:t'iycc: cf the Corporation;

f. To exerAse su.'h other powers and duties ae may be

providad Jr! thf; By-lhtis ov Iciog::oed by the Board.
SEC, 24. O,...- rz,.d Pees:-tnel. - The, Bor.-rd shall
create such d.partn.ntc, '.ivisions. sections, unilts and posi­
tions as rtay be c'.. .. vr t,
t, hc t.:..:.':uflt 'ofthe objentives
of this Exe-tivo (.r.:olr ,. ' ,hall. define their functions. Ad­
£itional personnel fay 1.:'n*.ircdon contract bis as the exi­
gcncics of tho sorvic..'-r . reqtwire. --Th. Corx;.raion shall
;..It establish its ow: -cgional and local ion
organi.zntions !
staffed with personnel o' the Corporation but shall instoad
n~-La iull use of existing regional, provincial and/or local
orgniznations u. the Yinin;i.ry of !" b'ic Works, t.. Ministry
c-f Local Goverrvent andC:m=,ity Devcopneort, the i,±'.tional
EiectrflcAo.: A, ;iiEtratI.ion an,. such other gov'ernnenri
agencies aa t'he Bur-ird v dr.ignvt,:, provid. that the super­
vision anr. con'.rol cf sx.:h ftnctier an!d zesporsibil.ities
.- In;
dcl crte" to, th.:c:v orgtr.n-o ations shall rilrain with
hc
the Corporation.

SEC. 25. Merit Syster. - A31 officials and employees

shall be selected, trt.nsforred, promotod and dismissed on the
basis 0-r' merit and fitness in accordance with a comprehensive
and progressive rerit sy:'tem to be established by the Board in
confority with the CJri' Service Law.

-9-V
 adSEC..26. Position oflB flpenato he positions
of the Corpo­
an oempensations of the officers end emiployees positions
ration shall be in line with'thoe'6f comparabIle
under the infrastructure and uti­
in governuent corporaticrw
: :lities sector.

SEC. 2V. Conflict of Interest. Jo member of the

N
th' Corpo-ration shall
Boaxrd of officer, agent or employe of- in the deter­
participatu
in an.y manner dirrctly or indirectly in which he or
any,en,..Ly
mination of ary quostion affectin-
of consanguinity

any of his relatives within th- tnir6 degree

interested nor shall

or affinity is directly or indirectly the guazantor

beoDO 4:,poy'e
such i:ember, officer, agent or
Corporation.
or surety .f any loans extended by tl.e
C1PITER V

RURAiL WATEF4OF.E, ASSOCIATION

op-profit, non­
SEC. 28. Organization. - Coc,peratiVC, Avsociation
Waterworks
stock as8ociation, :-,V be know-n as~rxx&1 s­
(RW) may be organized for the purpose of supply.n, water
vices in the raral area..
- Rural Watorworks As~foci&x-
SEC. '29. Powers and. F'ucticns. powers and functions pr.qvided­
tiO? shall be v' "trd with -11 tb}- coopuratives under

for non-profit, non-stock corporations and

, the Corporati-; L3Aw and other related laws, rules and regula­
may be pIvided
tions and such other powers and uLnctions'as as approved
in thoir Articles of Incorporation and By-Laws
by the Corporation.
law to the
SEC. 30. Rag-strijtion. - Py previsions -! this Executive
' ".ed uner
ccntrol" notwithst¢ndinC R~WA'e Of the Corpcra­
Or'ier shall be und,'r the 3xclusie jurisdicticn papers
tion. Articles of' inc.rpzr.'.til.' b.-
b:-r corporated
on the
enunerated in Section 5(d) herein sha13. be in effect
"'.
ev. by thse Corportat.cri
date of the issuance of" thc_tion
to the rcc.Lircment of this Executive
that the sarx confonr
Order.

V' and the like al"rcdy e at the time of the

-istinf
P '7/effectivity of this Execu-ive Order shall register with the
by.the
Corporati-.n to be entitled to t': bc'nef:Lts extended
Corporation to RA's and be endowed the powers, rights;
-ith
and previleges acccrded by this Executive Order to.regular
RWA' s.
SEC. 31. Ruics and Regulations. - The Corporation shall
pro~ulgate rul.es and regj1 tio'wi .7overning the registration
of con­
of RWAIs, their managerient, operation an4 resclution take
Such rul. a*. regulations shall
flicts between Th..:.
Official
effect fifteen (15) dnys after publication in the
Gazette.
conflict
SEC. 32. Conflicts Berw(,en RW s, - In case of
shall have the juris­
between-two or more RWA's the Corpor'ftioin
to such rules and rs­
diction to settle such conflicts subject
gulations as tho Board nay prorvulgate.

-1 -V

 EAJCHISES
BEC. 34. Applicability. , This Chapter sha., appl,y

only to franchise to supply watior in areas outside the 6ove­

re of the LWUA and the )ISS, with eny question of jurindi­
tlon to be settled by the National Water Resources Council

in case of dispute.

SEC. 35. Areas withir LV"JA or MWSS Coverage. - Areas

within a water district or falling within the coverage of the

IT JA or ths MWSS Day avail .themqelves of thc benefits under

this Exoutive ORer; PreviV'd Smidtten waiver shall

first be secured fztin the LWU" tI.IS, as the case may

be and Provided, further, That Fcr. p*WpossC. of this Executive

0rder, the 'SS shall have the iurisdictio64 over water supply

provilions ir Metr::polian.-Man3.la; and the IMA in larger

nunicipalitie, e"n: cities as well as Jr. area ha.ing a popula­

tion o" .t lo-i' 20,000. The IWDC shll i'we the Jurisdic­
tion over area, vath a population Ofe ..e thean 2-10,000, The

identification ot the areas of jurisdiction of the LWUA and

the RvWDC shall be donc by mutual agrecnnt. Horever, not­

7Ithstanding the roieisons of this Section, they nay, by

mutual arrangement, allow the entry of one into the terTi­

tory of thG other for purposes of pursuing their objectives.

SE.C. 36. Franchi:-ing Powe. - 1. S. wer to grant and

thc-repfter to rspcal or alter franchises, to supply water is

horeby vosted exclusively ir.tht Ocr6ntion; Provided, That

thi- Section shai'L nct invalidate any franchise heretofore

lawfully grantodo The Corporation is hereby authorized to

1 notify and require every person holding a water franchise

report to it, within 120 days after such notice, an accu­
t,',.,
rate description z f the Prea encompassed, the number of

bouseholds therein serioos, the date the franchise was gran­

ted and such other information the Corporation nr-y require.

SEC. 37. Auth.,rity tc Grant Certificat s of Pbllic Con-'

venience (CMc) and/or Certificate of P onvenioc-e anId

8ic
Necessity (CPCN). - Net,.'lthstcning any provision of law to

the contrary, the Ce pration sholi have the authority to

grcit CErtificate 'of Publi- Con.re ai..oc (crc) or Certificates

of TNiblic eonvenrence ai:'.,,re

4 -e L
" t N,.'), as the case May .
be, to persons or enUtivs otheY thaIWA's that wish to pe­
operate ar"
-maintain waterworks systems in areas within the
territorioj jurisd.iction of the Corporation.
SEC. 36. Preference to RWA's. - Wherever two or more

public serlvico cntities have competing inter-lots with respect

to the grnmnt.t . rcqal, alteration or coneiitioning of the same

water francbise anJ one is a RWA duly orgcnizar! under Chapter

V herein, the Corp.ration shall accord prefeponce to the lat­

ter over any othor type of public service entity, unless the

other one type cf *ublic service entity will, as found by

the Corporation, result to the immediate funishing of water

supply service to (I) a greater number of households, and

-11-..
 (2) over .a lsitr geograpbic area, on the conpaortive basis
of seine or je,, rates and chargas.
8EC. 9. Cooplianc with Presidential Decree No. 1067.
An~y foT. of fficthorination grted under the provisionsq of
these Chaptoer shall not exemp~t. I~ts holder from~ the Provisions
of Presido.11 Decree Ne 1067, oth(7wise knowL s the
Philipio Vaiter Code, or. water pernits and regatration.
SEC. 40i. Furnishing Service Withbout P Valid OPC, PPC.N or
Franchise PrhAbited. - No person or entity, shall extend and
charge for wator supply service withi. any area for which
such pc-rncn or entity has net been ganted a valid franchise,
OPC, CPCN, or! after sUch fra.ichise')CPY, CYCM has been can­
* celled
S!
or alterqdI a, as t6 ]bibi,"eigce .,
therein
9

CHATFER VII

FINAL PROVISIONS

SEC. 41. Existing,Agencies. - The Task Force on Rural

Water Supply of the National Watcr Resources Council is here­
by abolished and its personnel shall constitute the-nucleus
of the Corporation. All other agencies of the government may
undertake proje'ts on rurnl water supply prcvided they-'am
in a.cccrdance with the policies and guidelines of the Corpo­
ration.
SEC. 42. Separability o Profsionl - If any provsion
of this Executive Order or the application of such provision
to any person or circurstances is declared invalid, the re­
rninder of the Executive Order or the applicntion of such pro­
vision to other peroznsIcz bircxi-stricez shnil not be affected
by such decleration.
SEC. 43. Repealing Clause. - All laws, dccrees, qxecu­
tive ordera, rules and regulations, inconsstent, herewith are
hereby repealed or modificd accordingly.

SEC. 44. Fffectivity. - This Executive Order shall ttk.

effect i,;neeiitcly.
DONE in tho City of Manila, this 12th dpy of January,
in the year of Our Lord, Nineteen Hundred anQ. Eighty.

(SGD) DINAND E.*NARCOS

President of the Philippines
BY TEM PRESIDENT:

(ScD) JACOB C. CLaVE

Presidential Executive Assistant

 * i ~. 4 f
The Frin ~r~ta. .

P P 0; The Sector Review Cosupil t e for.,Wte Suppl1y

~~C
:m
~ Fiii~~ an
~ c n~czuedLis
Regarding Ins tit ut Ioival
t ~~Respo nJbill.tie.s for !tPuraL Wtepr iuppl y: and i111teatidnA j

~'P 4i'ivuton
Y nd rojct ~n o".'.206 mPH)'9, the Secto~r Reva-.,
Coi.'.IttLC forrWater Supply hais. ndestydy of ,the existin ;
int rI- ttitionnl rafponsl bill tieslof 1. gen is;
coricerb.ed with rural .
wal~i1:;*i~ j and santitation, and has, 1 .w1 h ri comm ndations
I ga rding th mai n
r% sqe eqo' ~ :' :; ~
13:1(~iI ~ is''~ ot T".. ort~, 'rar~e
*
.t

0-P .nk, the reconrendations -,con tqin re;~

-. *i.-~ur cont;ideratiou and , f v' 2.p

Xij!j I

ANTONIO: I
"!.NAIx-ut'Diecor-Gneral,..,, Fop~ and'Proj ic tp -0

T CAM ~ACION4 . . .1-

NP11W11 Assistant0 tfiipiit er. fpr annifrg *
-~'~* *

ANTO
Deputy~mn
S i~.
tq...1
Y.4TAC
D .N

RWDC General Manager.'

CARLOS LEAO''' ~
LWUA Gelira Manager
I r
ANCEL.ALEJANDjtIN0rJ' -j"
NWRC Executlve.'Drpctor- jl

MO P 4 nning ,Ptr de;. hlef . :

*B~ )~~3 I ,o
*i

1
....

'[tP

+:+ ,
j3C.,. AIT

vi.f : .. .t..L'
w
:,+'.els"/

',' hic pr v d
*.s I ~ ~ i,!~
of +ser
ic are n+o"h I

,:,;,.K.I,'*' ee p i..
s i l .-.
. le"s 1.*
74STITVTIONAL
.ds":J':.'
VESP* t JI& 4,I. o se vi
, ' ,
;
s., Iit, t
'.

-'-+

-househai
.4,'*.,,,il

*
4

.
'" l :

-tor .5...

Le e c ,
11-
w hre'i ve]vid
.
l t ru
* . .,.. in,,reas ;. In
a communal,
ura' y, tr * o4.,
. . ,of three possible levels of servi ce
,9
.
.+il
, which provide one
iacil

fucit:'sy e r e
e p nditieon.. d
is feasible for a gi en servi
what
. *l'
of service
:.Velsare: stem
compose'd .. at,
5'O,,4 of a
j vl blea
I poi nt'sour e j.542
' *
ihch,'i
'"the r a well source

or a sprint;
and',
i.+
-"

fea ibl e el ....

if h I.4
ou re den "

....

sely
Fl'u' .....
Inman ,ed
'povi ,
.....

cas d ut
e t e ..
sse

st o -i . '

ne :t 'at•
..

udi
ng
pwater

I servic e6 l
9aehm pin t ' + .i.
o d d t'vid a. V ""
only
bY
I nL
lecri
evel
ca e a pourpece il o ban iy
is av ' d.' l esines pf Iawith'
-system.
from:'
'd te"m *

.
,
Xestt,~i,
efor co• n,.ItI ime j
to
s eob.e b eble.
Ars'a
F.o as e
y+
aosyser .' +.'l .t

'

poulatedecrbacot e tol wdld ispren ua rasb~oi po

A

',I I . ,. . . ..
i.

.,

q.
"1.

S s,,
, ,**,.,,v,
. . v,!*,,,,
.,.,""4
,
. r,

~,~~ORGANI7ATTONS
; AND PROGIAS "' 1+i"4 s*,.*I * t . -i *

'+
I .'
,l+
.. Sewera
Waterworks .and e.,

,,+tropolitan .ystem

(W SS) isr 'tspons-

the Met6politan Manila 1.l" all­

Arer '.
ate
forsuplyand ~ in +.;.
s':., ,'

+;i},c

municiprl-
its cont' areas , eous s compoid*
which is c c:s' *and.
es. oti about 1.940 Prb
There are . ',.a g a and 38 rural, *."
"'4,1.
A '

under the area of respof,'n±l it

etri * '"'
, .lit. .
,, am . . ,
 44,~ 4 4

Lhe:tocal ater Utllit P. I'o

the development of,:w4t e sP...
I ties outside the Mtrooli a.afp,
least 20,000. These' area' c'o 3 Ib
ah,,ut 19,60( rural baranayi'.!;,kac i' y'vorvunicpalfty u TW;UA
covers an average of aboui. 5 i'bani:baran gays and 28 rl 'p.iyaligi ,.
The wator district systeme deVeloped through LWUA',s -sbpportPV9pFovj de.'. -
Level 111 service a . "
vv: of the city or municipality _oncerned where its populvt~bn , '"

*i ni cid t11111~tilt 1h1 0 1pop j . I tp 3ied J ) d II

:*, . ,. ',' rural OuLlying:'baranaY~l will "make the tyHteins expesJ ; ,
" i.
t,. ,m ,nLroct,mnntainanddoprate'.,'-To deal: 'ith the' needs,.of 'Iha..e
rur1l commnuunities within its af.ea. of: responsibility,. LWJA hdS, oi I',, ,rd "!f'
i. S-oeclal Projects Group which',undertakes the. desihn and implement-- I
rb'r:.,r, .ural water supply' projects using the' design-critcria ,ope- ;., ,
rating procedures and funds of tthe, gural:aterworks rev:oPtn
I. (RWDC) . .i. ,.

kWDC, whlch has been designatedr., .thelead agency.'in' tJr.r~ Tor'l

l: .
I supply isubsector since. -O'P'$' 'rtentli repfonsiblee
other barangays not covered ,by.,,,,ahetro l~thA'Waterkpsk and
:,Itw, rde Sys Lem (MWSS)' qnd:,,WUA'np~roaw ' i" ur-,anouo
a
Ti ' ._i ,,g.y h O pu
0"a b
barangays and 13,000u'a
t-t, rural population t
...*;1'0
ties are directed a&,,cr' A ut,,.,, ,9A.enc
by utilizing the serv~ie&dqf* t"" ,oto.

vilncial and municip,!wa, a ""

a .

units are± made responBicip l rw n: ter. ..

supply programs in their;areaq jzdcg°r .de .tec "- ,.

i=,cal, .financial and ,'assistance to 1ocal i.gr,,

tianag " ;mentsrn. In.I
the implementation of 'these o :lc.c.; ,
1volver.±unt of the. comtiunity 1 to,-y. rv e" Zhef6. . i .r-c f,. -,
.
ton.iro,ca'hon (RWSA) j )
local Rural Waterworks and Spnta
.- sons~ Uj a.i,,,:'n
fr the management,',',operaq, e,, L-1 !
o.j,
responsi hW . the ..... ,. ,--., . , t , E..
'~*; 4'4 If.
sy t m V'. l,''t
..
co ep e

.h Minh;ry of Public Works. andig and..MlibtrY c)f

a.n
Local Covernnmnt (MIX) are also,.1.'peenntng,eaatrural Fte
supply programs. Previous tq the e tqU14#hme C-f mp" ..
SV
principally responsible for IP Z. .h,. je..ha8
'ur4iwat
6r- lled about 31,800.public. . dh.,,o" .. ...abpi'.,'', . , .
Slrings. In addition, MPW Jh. t.4bid',bout 2, .50 -waterwor
.vterr for communities se ig&,j,' I "2 '0 I 1."
o

Although in theory the M)W y, . ..... ,

has
t
under thdt of the BWDC, HuaPWH,:ibtin t:' 6.e b'dbrec
!respoois eligtr
'
. r water supply development, U3,u'. j.;nS'vfinds iproldeeN under.'the . .
Puhlic Works Acts and the G raI pria16ns, Acts. ,;dSi C4 46 2,n
..
',e funds have beer u he- 16; a de'n
.#o poin 1, source.,1 I ,

,~1 *t "I,:f"'1

,. I', I.. .
, "4i " " "' '
 "- .. , '?1
4

j mpemeninv, ei gn sa5tit TS
d r JIling an d cond~tr~ctC134k b J 1-l it 0 t 4
Lvvc-.lopmefl t As'sociatiofl. .'*!nAi,'

4v er oz L1 Sld th f-1e! i t Vd Lt ;

ie W~~.nitrvl'ot Local Gqc rntnen.t.ba ees inipLene.)r~ ~ !naW

i
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I]. FInancing'.arra4ge .1 44 np
vides loans, to water 1,13 e , Z d t.
rest rate of 9,percent .a a en r ,

:.rs. The funds which LWUA re i:.en water distrctq 4r& taen
from the government equity contr d1 iAfl "WUA an fo q..eig
borrowings from IBRD, ADB, USAID ta'!nd'iDANIDA, LWMIA nd aiy'.
finnnces the cost of projects, :A udinj-lnteret' ur o

,.imr of' 20 to 25 percent of project'coiit and the water:d'i .tact .­

i 10 pe,cent as local equity.

up The-cost'of feasibili ty,.
"
.t,dies wid detailed engineering'is -usually initially carried b. ",
I.i.1A in the form of deferred char . !; ' ," ' ',

)2. .
PWDC extends loans foif:'';q. , v' ' 10'1{ . 't
;'.,
.. . . '. ,I, '
l ." , ",."
*"

vp to 90 percent of pro ' . prgjectr., iit f"II

provides Rrants which carI s much as;90.periLent f
project cost. In ;tll cases, :the RWSAi provioeC the 'remaiibin$ .iO
percent as local equity:. i.; ! ' 0 ?rilvs :itrf.nds, fro .the'eq.itty ' .

contribution of' the naonalgqye from", en~koyjong , '.

-.These.re .relent to,'th~ tW$IM * vW

o 0*~
annwr with a reipaymen't1ie, r 4K ,~ '.

NLG through BWP provides

M, .. ,
Alt ' ,.r men un,
institutional development., :oV p* veI,,
and Level III projects,. The unoyfl , tf . ryi. .,
1
I'' r
h
with project finan ing.wh pil , .. hereV
beteen -'b,"
total .loan or a total grant.;L.-Las 'pro.ded: to the RW.s lic.ve :j..

interest rates of 4 perent por i9 TOu'n'e~ye~

10-20 years. Sources of fun~s" fbr i thlh',. ..'projects ara,1t t io tl ".

.overinment appropriati6,l. and:S l1 ail ., .,

14. MPWII provides funds for theconstro't6ip" of Level I sybtms, and the 1'
Rp facilit.es"6n,
development of sources for'Lve .s 'Il .11l l eiIgran
Lasis covering up to 90 percen!of'th, .These-fund; ',
,re derived from the national gove e sPpoidedubic
Acts and the General1 !Apropfiat on$ 1Actsand ;from, Gov.nm t .
foreign borrowings'. i:, ,,, .
' ;Vt ',.,9

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. c.;iven the above sltuation, thas I, "I

h ,. I:, 1',- a . eueo',be
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ruoe'-' .
t ,ral ';waer-sup " "
in order L6 ratloualize the de',p

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,I, ,, ! l.,, a. 9,999;.

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prep raon LofdePPnaJY ,B1e

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s,:.I ~ e41pe
the i n ,eanty or ail~ h
Iseto ~ a
~~ w~ve~oprnerit work of ~tei~ ...
oa gorrunt rt

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-r,iLerelon napevisiof
h failt,'s wun-r, cr Pncd856 nd th

uitz 1:(Iatth oaluo le ps p ad. ofd± t b wyt 1cO. ohl t-MU,

rnr'n
units withe espect t .. panis,1 n sect elm.,oft e r a%gn,

selcton aind
-. 1pl Tdty-e hl~rvd csisn. ces h4rins'

deliveromen
oor rura st enteig oa oe*lmn I4t

* tT tas an te Qm'L fir-A~canc~

;o a.ind e toi
inb
!
an
uct er Di Tri N o a a ee

by tNtationln Govrmeth I fro11)'85

tyli~i~ 1 pon t 1iP

-Jpplnee DajrIit o lthe .ta~t d.bep.-,ef iiotr -c'nIlou pr t esc -l.L

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ment ~ ~ ~ ~ ...
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