FOR OFFICIAL USE ONLY. Report No PH. Public Disclosure Authorized. Document of The World Bank. Public Disclosure Authorized

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY STAFF APPRAISAL REPORT PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJE August 25, 1982 Report No PH Urban and Water Supply Division East Asia and Pacific Projects Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 CURRENCY EQUIVALENTS Currency Unit = Pesos (F) P 1.00 US$0.120 P 1 million US$120,480 EL I billion US$120 million US$1.00 P 8.3 US$1 million = P 8,300,000 MEASURES AND EQUIVALENTS mm = millimeter = 0.04 inches cm = centimeter = 0.39 inches m = meter = 3.28 feet km = kilometer = 0.62 miles ha = hectare = 2.47 acres cum = cubic meter = 264 US gallons 1 = liter = 0.26 US gallons lpcd = liters per capita per day = 0.26 US gallons per capita per day PRINCIPAL ABBREVIATIONS AND ACRONYMS ADB = Asian Development Bank EC = Electric Cooperative IDWSSD = International Drinking Water Supply and Sanitation Decade LWUA = Local Water Utilities Administration MHS Ministry of Human Settlements MLG = Ministry of Local Government MOH = Ministry of Health MWSS = Metropolitan Waterworks and Sewerage System MPWH = Ministry of Public Works and Highways NEA = National Electrification Administration NWRC = National Water Resources Council PIRC = Project Implementation and Review Committee RWDC = Rural Waterworks Development Corporation RWA = Rural Waterworks Association RWSA = Rural Waterworks and Sanitation Association USAID = United States Agency for International Development FISCAL YEAR Government: January 1 to December 31 RWDC : January 1 to December 31

3 FOR OFFICIAL USE ONLY PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. I. THE SECTOR A. Current Situation B. Sector Organization C. Sector Policies and Programs D. Investment Programs E. Bank Lending for the Sector II. BORROWER, BENEFICIARIES AND IMPLEMENTING AGENCIES A. The Borrower. 9 B. The Beneficiaries and Implementing Agencies III. THE PROJECT A. Objectives B. Description C. Implementation Arrangements D. Project Cost Estimates E. Procurement F. Disbursements G. Financing Plan IV. FINANCE A. RWDC's Financial Performance B. Cost Recovery for Rural Water Supply C. Cost Recovery for Rural Sanitation V. JUSTIFICATION A. Project Benefits B. Risks C. Environmental Aspects VI. AGREEMENTS REACHED AND RECOMMENDATIONS The project was identified in April 1981 and appraised in November/December 1981 by A. Saravanapavan (Sanitary Engineer) and L.V. Smith (Consultant). Messrs. C. Fernandez and A. Van Vugt (Financial Analysts) contributed to the preparation of the appraisal report. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

4 Page No. TABLES 1. Project Cost Estimates Sample Construction Costs Estimated Schedule of Disbursements Allocation of Proceeds of Loan Physical Targets - Rural Water Supply Program Typical Operation and Maintenance Costs - Level II Systems Internal Rate of Return Calculations ANNEXES 1. Project Description Consulting Services and Technical Assistance Monitoring Indicators RWDC Income Statement RWDC Cash Flow Statement RWDC Balance Sheet Assumptions used in the Financial Projections for the RWDC Documents in Project File CHARTS IBRD No Organization Chart - RWDC Drawing of Shallow Well With Handpump Drawing of Pour Flush Toilet Project Development Flow Chart Project Implementation Activity Bar Chart Project Management Chart - MOH MAP IBRD Map of the Philippines

5 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT I. THE SECTOR A. Current Situation 1.01 The principal source of domestic water supply in the Philippines, particularly in the rural areas, is groundwater which is generally of acceptable quality and available throughout the country in sufficient quantities. There are four major groundwater reservoirs with areas ranging from 6,000 to 12,200 sq km which, when combined with other smaller reservoirs, aggregates to about 50,000 sq km. In cities with large concentrations of population, surface water is often utilized. There are over 400 principal rivers with drainage areas ranging from 40 to 25,000 sq km and some 60 natural lakes as well as numerous small streams. Average annual rainfall is about 300 cm. This rainfall is unevenly distributed with certain populated areas in the northwest having dry seasons of about three to seven months. The Philippines has a total land area of 300,000 sq km spread over some 7,100 islands of volcanic origin. About 95% of the land is contained in eleven of the largest islands with two, Luzon and Mindanao, accounting for some two-thirds of the total area. Nearly 65% of the country is either mountainous or upland with mountain ranges dividing the islands into small watersheds (see Map IBRD 16245) A major contribution to water resources knowledge, relevant to the development of rural water supply, was the completion in August 1981 of a rapid assessment of water supply sources undertaken by the National Hydraulic Research Center on behalf of the National Water Resources Council (NWRC). A report has been prepared for each of the country's 73 Provinces (divided into 12 administrative regions) which analyses all available data and includes maps indicating areas suitable for shallow wells or deep wells and also defines areas which are likely to be difficult for groundwater development. Population distributions and densities within each Province were also examined and recommendations made as to the most suitable type of development to meet rural water demands. These reports provide a valuable tool for the rural water supply program A Government Task Force established to develop integrated national water supply plans and programs estimates that as of 1980, of the total estimated population of 49.4 million/i, about 21.4 million (43%) were served by public water supply facilities i.e., 12.9 million (26%) by public wells, about 0.4 million (1%) by communal faucet systems and 8.1 million (16%) by municipal works systems. Service in Metropolitan Manila covered some 82% of the 6.4 million population, other urban areas with a total population of 8.9 million registered a 55% coverage whilst only 33% of the 34.1 million rural dwellers in the country received a safe public supply. The unserved 67% low income /1 This figure is based on a recent survey.

6 - 2 - rural population of 22.8 million is the target group for the proposed project which is part of a recently prepared national Rural Water Supply and Sanitation Master Plan. This group would be served with safe water almost entirely from underground sources such as protected wells and springs. The following table indicates the population presently covered by type of supply: --- Public Water Supply Service --- Other Piped including Wells Springs systems unserved Total Population Population Population Population Population million % million % million % million % million % Urban Population Metro Manila Other Urban Rural Population Total Diseases in which water and sanitation are implicated - gastroenteritis, intestinal parasites, dysentery and diarrhea - are next in frequency to respiratory diseases which top the list of leading causes of diseases in all parts of the country. The target group of 22.8 million in the rural water supply program which at present largely relies on unprotected dug wells and has poor environmental sanitation is victim to these diseases. Malaria, which is water and drainage related, is a relatively serious problem in the northern and southern extremes of the country. Schistosomiasis is reported in 6 of the 12 regions. About 28% of the approximately 7 million households in the country have unsanitary toilets and about 19%, primarily low income families, have no toilets. Such unsanitary conditions create environmental problems - water pollution, contamination of food, insect and rodent infestation and disease. The Ministry of Health (MOH) has been promoting the installation of simple household sanitary facilities for the disposal of human excreta in the rural areas (see para. 1.09). MOH is planning to intensify its program in connection with the United Nations International Drinking Water Supply and Sanitation Decade (IDWSSD), with the objective of providing all households with safe water and a sanitary method of excreta disposal by To sum up, in the rural areas, low-income families are traditionally dependant on unsafe sources of water supply and poor sanitation facilities. Similarly, in urban areas, while coverage of piped water supply systems has improved appreciably over the last five years, the facilities have been largely based on individual house connections with a few public faucets, leaving the poor in the periphery of towns largely unserved. The result has been the continuing and widespread incidence of waterborne or water-related diseases, particularly in the countryside. The provision of safe water and sanitary disposal of excreta, properly integrated with health education, thus constitutes the single most important investment that could improve the health

7 - 3 - and productivity of the rural population. Review and analysis of data and estimates of morbidity and mortality show that the Philippines continues to have a serious health problem with diseases related to inadequate water supply and sanitation services. Reducing the incidence of these diseases requires a subtantial improvement of rural water supply and sanitation service levels and is the principal objective of the Government's planning for the sector. B. Sector Organization 1.06 Principal Agencies-Water Supply. As of 1980 the Philipppines had 1,531 cities and municipalities containing 39,107 barangays with a total population of 49.4 million./l The institutional responsibilities for providing water supplies is shared between the Metropolitan Waterworks and Sewerage System (MWSS) for Metropolitan Manila, the Local Water Utilities Administration (LWUA) for 688 cities and municipalities with population greater than 20,000, many of which contain rural areas within their boundaries; and the Rural Waterworks Development Corporation (RWDC) serving 815 cities and municipalities with populations below 20,000. RWDC is responsible for promoting rural water supplies through the formation of Rural Waterworks Associations (RWAs) which are village community organizations for building, operating and maintaining village water supplies (see para. 1.11). This type of sectoral organization is unique and is probably one of the best of its kind in the developing world. Within this broad division of responsibilities there are some overlapping functions between the principal agencies. The following table shows the distribution of responsibilities between the three principal institutions and the urban and rural areas: MWSS LWUA RWDC Total Urban Areas Barangays (No.) 1,940 3,305 1,201 6,446 Population (million) Rural Areas Barangays (No.) 38 19,631 12,992 32,661 Population (million) Totals cities/ municipalities (No.) ,531 Barangays (No.) 1,978 22,936 14,193 39,107 Population (million) /1 A barangay is the smallest political unit. Each barangay has a Barangay Council which plays an important role in the implementation of Government programs. The Barangay Council is headed by a Barangay Captain who participates in community activities.

8 As an example of the overlapping responsibilities it will be noted that LWUA is responsible for 7.4 million urban and 24 million rural population while RWDC covers 1.5 million urban and only 10 million rural population./l This is because a city or municipality in the Philippines is equivalent to a county in the USA and often has a large rural population with small core urban areas. Therefore LWUA has a larger rural population within the 688 cities and municipalities (with populations greater than 20,000) in its area of jurisdiction as compared with the rural population in the 815 cities and municipalities (with populations below 20,000) for which RWDC is responsible. The Government is alert to this organizational problem and is taking steps to reorganize the sector during the course of the proposed project. The reorganization would aim at reducing overlapping functions improving efficiency and expediting the carrying out of the national program (para. 1.12) Supportive Agencies-Water Supply. In addition to the three principal agencies there are three ministries - the Ministry of Public Works and Highways (MPWH), the Ministry of Local Government (MLG), and the Ministry of Human Settlements (MHS) - and the National Electrification Administration (NEA) supporting RWDC in the development of the rural water supply sector. MPWH has two roles. Firstly, as the government ministry responsible for MWSS and LWUA, it has a coordinating function and therefore prepares sectoral plans (see para. 1.15). Secondly, the Government provides annual budgetary allocations to MPWH to construct deep and shallow wells, carry out spring developments and until recently build communal faucet schemes. MHS is the government agency responsible for RWDC. MHS also carries out important community development activities such as the formation of barangay water and health brigades. MLG is training its Provincial Engineers, through a USAIDfunded Barangay Water Program (BWP) to develop local capability in about 55 provinces (soon to be extended to all provinces) for designing and constructing rural water supply schemes. As of September 1981, BWP's program included 287 shallow wells, 24 communal faucet systems and 24 systems with house connections. Finally, NEA assisted RWDC, through its Electric Cooperatives (ECs), with two water supply pilot projects and presently acts as a collecting agent for RWDC for those RWAs which purchase electricity from an EC. NEA would continue to assist RWDC in future in loan billing and collection in the areas where such cooperatives have been formed Principal Agencies-Sanitation. MOH is responsible for rural sanitation, and has a successful toilet construction program for simple pit privies and some pour flush toilets, averaging about 200,000 units per year, being undertaken at the barangay level. MOH sanitary inspectors supervise the fabrication of squat plates and water sealed toilet bowls and advise upon the siting and installation of toilets by householders. MWSS and LWUA are responsible for sewerage and sanitation within their respective areas /1 A proportion of the rural population live on the fringes of urban areas and are not presently served by LWUA.

9 of jurisdiction. MWSS has made a start in providing these services in Metropolitan Manila, but because of the low ability to pay in the small cities, LWUA has no immediate plans for sewerage and sanitation improvements Water quality surveillance, needed to ensure the quality of drinking water, is a responsibility of MOH. MWSS and LWUA have laboratories and carry out their own quality control. Similar laboratory facilities are not available for the rural systems and MOH has plans for expanding its presently limited laboratory facilities with assistance from UNICEF. MPWH, which is one of the implementing agencies assisting RWDC, is also planning to build laboratories to ensure safe water supplies for the systems built by them. This is an example of duplication in effort which the Government would be reviewing as part of the reorganization of the rural water supply and sanitation sector (para. 1.12) Organizational Improvements. The Government has recently introduced legislation for the RWAs to also undertake rural sanitation and be called Rural Waterworks and Sanitation Associations (RWSAs)./I RWDC's principal function is to promote the formation of RWSAs, providing financing, technical assistance and training and implementing rural water and sanitation projects with assistance from MPWH, MLG and MOH. An RWSA is a community organization formed to build, operate and maintain rural water supply and sanitation projects for which financial assistance is provided by the Government (see para. 2.06). The availability of adequate supplies of safe water, when combined with health education and disposal of excreta by water sealed household toilets, would have a favorable impact on health, personal hygiene and general domestic sanitation. The Government has therefore through the formation of RWSAs made an important organizational improvement by integrating the rural water supply and rural sanitation programs at the barangay level RWDC, as the lead agency in the rural water sector is attempting to coordinate the activities of the principal and supportive agencies. However, most of the construction-oriented type agencies (MWSS, LWUA, MPWH) are not yet fully sensitive to the priorities and special needs of the rural areas. In addition to the anomalies of LWUA being responsible for servicing a larger rural population than RWDC, and RWDC being responsible for servicing about 10% of the urban population, there is often unnecessary duplication of effort, such as in water quality surveillance and the training programs of these agencies. The Government recognizes the problem and has recently established a high level committee to review the organization, the roles of the various agencies in the sector and to make recommendations. The Rural Water Supply Sector Review Committee's composition and terms of reference are satisfactory and have been accepted by the Bank; the committee would be reporting to the Prime Minister/Minister of Finance. The review would be completed by April 30, 1983 and the recommendations agreed with the Bank would be implemented by December 31, /1 Future references in this report would be to RWSAs.

10 - 6- C. Sector Policies and Programs 1.13 Service Levels. In the areas of developing design and construction manuals, training programs and procedures for working at the local level, RWDC has done a great deal of preparatory work and made a start in the development of policies and programs for the rural water supply sector. Design criteria appropriate to rural systems have been developed with Bank and UNDP assistance and used in the training on low cost designs aimed at providing three levels of water service: (a) Level I (or Point Source) is generally a protected well (deep or shallow) with handpump, or a protected spring and outlet, without a distribution system. It is generally suitable for rural areas where houses are thinly scattered, the well sited at a distance of not more than 250 metres from the furthest user. On average some 15 to 50 households can be supplied from a single source at an average cost of about $5 to $10 per person./i (b) Level II (or Communal Faucet System) is generally intended for rural areas where the houses are clustered densely enough to justify a simple piped distribution system with public faucets sited at not more than 25 meters from the furthest house. In general, such systems are designed to supply an average of 100 to 150 households with liters of water per capita per day and with one faucet per 4-6 households. Costs, excluding source development, average about $10 to $20 per person./2 (c) Level III (or Individual House Connection System) is generally suitable for densely populated urban areas. Distribution networks are provided, with individual house connections and some public faucets, to serve an average of 600 households per system. Costs of these systems vary depending upon economies of scale. There are no Level III systems in the proposed project Financing and Cost Recovery. Grants are provided for the construction of Level I water supply systems and loans for Levels II and III systems. Water charges are set to cover operation and maintenance costs and debt servicing. In respect of sanitation, the Government provides toilet bowls free of charge to the individual families who in turn install them with their own resources under the guidance of trained sanitary inspectors (see also paras and 4.05.) /1 There are about 10,000 wells in the proposed project and it is assumed that each well would serve an average of 25 households and each household has a family size of six persons. /2 There are 400 communal systems in the proposed project, each assumed to serve a cluster of 100 households and each household has a family size of six persons.

11 Government Plans for the Sector. The Government has produced two major plans for the sector. The first of these is the national "Integrated Water Supply Program " dated July 1980; based upon IDWSSD targets i.e. by 1990 all rural families would be provided with safe drinking water. The second is the recently prepared "Rural Water Supply and Sanitation Master Plan". Both these plans are comprehensive and were prepared by Inter-agency Committees chaired by MPWH. The first document sets out general policies for the water supply sector and indicates short, intermediate and long-term targets. The Rural Water Supply Master Plan's long range targets are that by the year 1990 about 37% of the population would be served by piped systems with public faucets and 29% by piped systems with house connections and 27% through protected wells. By the year 2000 these percentages are expected to be 52%, 34% and 7% respectively. These service targets are ambitious. In the early years of the program, annual targets are unlikely to be achieved given institutional and funding constraints. However, these targets provide a useful framework within which short-term targets can be adjusted as implementation proceeds. Physical targets for the period up to 1990 are as follows: Immediate - By end 1984, all barangays in the country would have a minimum of Level I service; all existing nonfunctional public wells (as of 1981) would be rehabilitated, replaced or repaired jointly by the Government and the RWSAs; about 50% of rural towns and 10% of the rural barangays would have Level II service; about 25% of the rural towns would have Level III service. Intermediate - By end 1986, around 30% of the rural barangays would have Level II service; the incremental demand for repair and rehabilitation of wells would be satisfied; all clusters of population with 50 households or more, would have a minimum of Level I service; and all small towns would have a minimum of Level II service. Long-range - By end 1990, around 50% of all rural barangays would have a minimum of Level II service. By end 1995, all rural towns would have Level III service. By end 2000, 70% of the clusters of households would have a minimum of Level II service while 30% would have Level I service The parallel Rural Sanitation Master Plan is based upon IDWSSD targets i.e. by 1990 all families would be provided with sanitary excreta disposal facilities. In total it is estimated that during the period , some 1.5 million new facilities would have to be provided and 2.5 million will have to be rehabilitated./l Of the total of 4 million new or rehabilitated units envisaged, it is estimated that approximately 1 million will be built in urban fringe areas. /1 The proposed project has a rural sanitation component which provides for about 150,000 household toilets to be built each year (total 750,000) as part of a five-year program.

12 Guided by past experience in project implementation in the sector and the need for improving the sectoral organization, the Government intends to make a start with a small and manageable Bank-assisted first phase rural water and sanitation program chosen from the Master Plan to service the rural areas with the greatest need. However, should the implementation of the program proceed at a faster pace than envisaged, the Government could consider advancing of a possible follow-on project. D. Investment Programs in the Water Sector 1.18 Third Plan. The sector strategy for water resources in the Government's Third Plan ( ) was that: "priority will be given to areas with greater population size and density, greater industrial, commercial and institutional concentration or where water supply can propel development". The creation of RWDC in January 1980 and the publication of the Integrated Water Supply Program of July 1980 by MPWH, together with the Government's subscribing to the IDWSSD goals caused a significant change in emphasis and some shift in priority. The 1981 revised total Third Plan expenditure is about P 4.3 billion (as compared with the original provision of P 5.4 billion). If 1982 expenditure keeps to the previous proportional pattern, then only about onethird of the program would be achieved. Some agencies have been more able than others to reach their programmed level of expenditure. LWUA has been on target, MPWH has, as of now, achieved 47% of its program, but MWSS has only spent 27% of its programmed allocation. However, because MWSS is committed to heavy expenditures in 1982, it is likely to utilize a substantial proportion of its allocation. This apparently poor performance in the sector is mainly due to initial implementation delays, insufficient counterpart funds and unrealistically high program targets. It is estimated that expenditures in the rural water supply sector would reach only about 25% of the program; performance in the fourth plan is expected to improve as RWDC gains more experience in project implementation Fourth Plan ( ). Government's plans are that 5% of GNP is allocated to public infrastructure investment, and that a similar proportion as in the Third Plan, estimated at about 0.8% of GNP, or about P 30 billion, goes to water resources. Water and irrigation agencies have estimated their requirements at P 33.7 billion. In addition, an estimated P 300 million is likely to be required for the Fourth Plan rural sanitation program under the MOH, but this would appear under Health, rather than Water Resources, in the Plan. On the basis of past experience in the speed of project implementation, this investment program is ambitious and is prompted by the agencies' desire in the sector to achieve the IDWSSD targets to provide safe water and sanitary excreta disposal facilities to all the population by It should be noted that the Government did take early steps within the sector to further improve organization and management of MWSS and LWUA, create RWDC and also prepare feasibility studies and detailed designs needed to implement the planned program. Multi-lateral and bi-lateral assistance from Asian Development Bank (ADB) and the Governments of Switzerland, Japan, Germany and USA is also being drawn upon for the program. Nonetheless, it is quite unlikely that the absorptive capacities of the sector agencies would have improved to the extent that the targetted investment would be achieved.

13 - 9- E. Bank Lending for the Sector 1.20 A Bank loan of $23 million (Loan 1415-PH) made to the Government in 1977 for the First Provincial Cities Water Supply Project had components for providing water supplies to six relatively large provincial cities and feasibility studies and detailed designs for future water supply and sanitation projects. A second Bank loan of $88 million (Loan 1615-PH) was made in 1978 to help improve and expand the Metropolitan Manila water supply system and also finance detailed design and feasibility studies for water supply in provincial cities and prepare the rural water supply program. The third Bank loan/credit of $38 million (Loan/Credit 1710-PH; 920-PH) made in 1979 financed water supply projects in some small towns and prepared projects for some 150 towns; a fourth loan of $63 million (Loan 1814-PH) made in 1980 financed sewerage and sanitation in Metropolitan Manila and technical assistance for the preparation of future projects. The first two projects had significant delays during the first two years caused partly by the time taken to prepare detailed designs and award contracts, but recent progress has been satisfactory. The other projects had relatively minor implementation problems at the beginning and are now showing better progress. To avoid similar delays in the proposed project the preparation of detailed designs is underway and preliminary procurement action has been initiated (para. 3.18) Despite the initial delays, the Bank's participation in the four projects in the sector resulted in significant improvement in institution building and management both in MWSS and LWUA. The Bank was also instrumental through sector studies and UNDP-funded technical assistance projects in laying the foundations which resulted in the creation of RWDC and has assisted all three institutions in making technological and institutional advances. Bankfinanced urban and rural development projects are also providing water supply and sanitation systems for low-income groups. The Bank's strategy in the water supply and sanitation sector is to continue to support the Government's investment program for improving watet supply, sewerage and sanitation facilities and to provide technical assistance and training for institution building and staff development. The Bank would also continue to support Government in its efforts to improve the organization and management of the rural water supply and sanitation sector, provide technical assistance for the preparation of future projects, and support cofinancing wherever this is feasible. The proposed project and future Bank loans in the sector are planned to be more of the sector type so as to benefit from the local institutional capability developed over the past five years; this capability would be further increased by the additional institution-building support in the proposed project. A. The Borrower II. BORROWER, BENEFICIARIES AND IMPLEMENTING AGENCIES 2.01 The Borrower will be the Republic of the Philippines. The equivalent of $5.0 million of loan proceeds would be relent by the Government to the RWDC for constructing communal faucet systems. The equivalent of $14.7 million and $12.3 million of the loan proceeds would be allocated by the Government to MPWH to construct protected wells with pumps and for water source development and to the MOH to develop rural sanitation schemes, respectively. The Government would utilize about $3.0 million of the loan proceeds for technical assistance to prepare future drainage, flood control and solid waste disposal projects.

14 B. The Beneficiaries and Implementing Agencies 2.02 Rural Waterworks Development Corporation. The Rural Waterworks Development Corporation, created on January 12, 1980 under Executive Order No. 577, is authorized and empowered to promote, encourage and assist rural waterworks associations (RWAs) with the objective of making adequate water supply services available to residents of the rural areas at the barangay level, not served or covered by LWUA and MWSS (see Organization Chart of RWDC - IBRD 23633)./1 It provides grants for point source development and makes loans for the construction and acquisition of facilities and equipment for supplying water services and for the restoration, improvement or expansion of such facilities (para. 4.01). It is responsible for the development of sectoral plans and programs for the rural water supply sector which is coordinated with LWUA and MWSS insofar as their respective areas of responsibility are concerned. The culmination of RWDC's efforts in sectoral planning is the national Rural Water Supply and Sanitation Master Plan, prepared for RWDC by an Interagency Master Plan Preparation Committee headed by MPWH; the proposed project is a part of the first stage of the Master Plan. With the support of MPWH, MLG, MOH and such other government agencies as the Board of the Corporation may designate and with the direct participation of the local governments through their waterworks committees and task forces, RWDC provides institutional, technical and financial assistance for the construction, operation and maintenance of the water supply systems. RWDC has a permanent staff of 91 persons which is considered adequate. No major staff increase would be required during project implementation RWDC has been concentrating its activities towards self-sufficiency at the local level through the strengthening of the local organizations and the involvement of RWSAs in all phases of project activity. RWDC utilizes the services of the Provincial Engineers Offices for design and construction management of Level II schemes and requires active involvement of the community to be served, culminating in the formation of a local RWSA which is responsible for management and operation of the completed system. Prior to commencing any local water supply activities at the barangay level, RWDC procedures require the establishment of policymaking, planning and technical capabilities at the Provincial and Municipal/City levels. This includes: Policy - Provincial Waterworks Committee/Municipal/City Waterworks Committee; Planning-Provincial Waterworks Development Task Force/Municipal/City Waterworks Committee; Technical - Provincial and/or Municipal/City staff to support Committees and Task Forces (see para. 2.11). Technical capability in water resource planning, engineering design, feasibility studies, training, public information, community organization, construction, accounting and waterworks technology as required is achieved through RWDC initiated training programs The determination of water charges is the sole responsibility of the RWDC in consultation with the RWSA and is not influenced by the Provincial Waterworks Committees. MOH sanitary inspectors would provide assistance to the RWSA in determining charges, as may be applicable, for sanitation works. /1 Under recent legislation (para. 1.11) RWAs would undertake rural sanitation.

15 As of March 31, 1982, RWDC's physical accomplishments were as follows: (a) it had ordered 31,000 locally made handpumps, for installation in Level I supplies on drilled wells, of which 26,000 had been delivered and 22,000 installed; and (b) some 330 Level II systems had been completed in selected RWSAs and 260 low-cost drilling rigs had been ordered for use in Provincial Engineer's workshops. The handpumps are allocated to Provinces on a pro rata basis by population and on-allocated by the Provinces on a similar basis, at the barangay level./l 2.06 Rural Waterworks and Sanitation Associations. Following upon discussions with local health and community development officials, interested residents would approach the Barangay council to initiate a request for a water supply and/or sanitation subproject. The request would be inserted into the provincial planning process which establishes priorities and makes prefeasibility studies./2 For Barangays where subprojects appear to be feasible, based upon technical studies made at the local level (paras and 3.04) information is provided to the residents and a public meeting (or meetings) held. If residents are positive about proceeding, the community participates in a more detailed study which includes financial and technical aspects of the various options available and selects the level of service which is desired and which can be afforded. The community then passes a resolution to form a RWSA and appoints a board of directors. The RWSA is duly registered with RWDC and assumes the responsibility for further development of the system. This includes further negotiation with RWDC on financing and repayment schedules, the levying of adequate water charges, and on the details of design, construction, operation and maintenance of the system. The RWSA is also responsible for organizing the community input to construction Through the entire procedure, from the time the community decides to form an RWSA to the time when the project is completed, and during the time the facilities are in daily use the district provincial and municipality/city water supply staff of the MLG and MPWH and sanitary inspectors of the MOH provide professional and technical support. This includes expertise in organization of the community, the completion of forms and reports, location and siting of wells and toilet units, the supply of information and the training of all personnel who will be required to operate, maintain and keep simple accounts to administer the system. Service will be provided by Government for replacement parts and any major maintenance for water supply systems that is beyond the capacity of the RWSA. Follow-up, monitoring and evaluation ensures that the objectives of safe water supply, proper sanitation and community self-reliance are met to the greatest extent possible. RWSAs will benefit from pumps, pipes, toilet bowls and equipment provided by RWDC and MOH and included in the proposed project. The RWSAs would also benefit from the community health education component of the project. /1 Until the introduction of legislation changing RWAs to RWSAs the emphasis was on water supply. About 6,000 RWAs had been registered as of March 31, /2 The Provincial Waterworks Committee for water supply subprojects (para. 2.11) and the Provincial Sanitation Committee for sanitation subprojects (para. 3.14).

16 The Ministry of Health. MOH is responsible for promoting safe water supplies, approving the site of water sources, exercising surveillance of water quality and for rural sanitation. A network of regional laboratories and a central laboratory with technicians is used to carry out a water quality surveillance program that requires periodic bacteriological and chemical examinations of all water supply sources. Like the MPWH, its operational and capital expenditures come from its share of the annual budget allocated by the Government (see para. 2.10). MOH has a Health Education Division staffed with 14 health educators and three administrators to disseminate information on safe drinking water and good environmental sanitation. A production unit for information, education and communication materials is being staffed and equipped. The 12 regions have two health educators each; one for delivery of' services and the other for training. This staff is inadequate for the large scale training of rural health workers and the rural community health education program envisaged in the proposed project. Furthermore, the salaries, travel and per diem paid to health workers are inadequate, causing underutilization of staff potential and health extension work suffering because of infrequent field visits./l Many of the field staff do not have motorcycles and have to rely upon an inadequate public transport system which does not service remote communities. Senior supervisory staff have official vehicles that are not provided with adequate fuel supplies, resulting in poor supervision of the work of the field staff. MOH will benefit from the incremental administration, training and health education activities in the proposed project (para. 3.09) Ministry of Public Works and Highways. MPWH activities range from the construction and rehabilitation of deep and shallow wells for Level I services to the provision of source facilities of Level II and III systems in rural and urban areas. The MPWH program has been integrated within the overall RWDC program and has the same criteria. In the execution of its program MPWa has the advantages of its regional and district structure. In each regional and district office there is a section in charge of water supply. Project implementation is undertaken utilizing either force account labor, contractors or village labor provided as a contribution to project costs. MPWH will benefit from drilling rigs and related equipment such as pipes and pumps for source development and research activities in the proposed project Operation and maintenance funds have been available to MPWH under the General Appropriations Act to support village inputs as grants, but with the formal establishment of RWSAs and the introduction of a firmer policy of self-reliance these costs would only cover replacement parts and major maintenance which is beyond the capacity of the local RWSAs. There is a provision in the project for the construction and equipment of maintenance workshops to carry out monitoring and major maintenance on demand The Ministry of Local Government. The MLG Barangay Water Program (BWP), evolved in 1977 from a USAID-funded Provincial Development Assistance Project, has the objective of strengthening planning and implementation /1 The health workers include rural health nurses and midwives, school health workers, sanitary inspectors, sanitary engineers and medical doctors at the municipal, provincial and government levels in supervisory positions.

17 capacity through staff development at the Provincial level. Provincial Development Staff attached to Provincial Governor's offices include a water resources analyst who prepares a water resource inventory which is used as a basis for project identification. Through the Provincial Waterworks Committee and the Provincial Waterworks Development Task Force, a Five-Year Water Resources Development Plan was prepared as part of an overall provincial capital investment program. The Five-Year Water Resources Development Plan was integrated into the national Master Plan for Rural Water Supply and also translated into annual implementation plans which are coordinated by RWDC and executed by: (a) the MPWH Provincial or District Offices for the construction and rehabilitation of Level I systems and development of sources for Level II systems described in para. 1.13; (b) the MLG Provincial Engineer's Offices which contain units for designing and constructing Level II systems; and (c) MWSS and LWUA in rural barangays lying within their areas of responsibility. The Provincial Engineer's Offices would benefit from the detailed designs of most of the 400 Level II systems in the proposed project MWSS and LWUA. MWSS and LWUA are responsible for the rural communities within their areas of responsibility. They would utilize their existing trained units designated for rural water supply and sanitation to implement those systems allocated to them in their respective areas of responsibility, through RWSAs. The activities of these institutions would be coordinated by RWDC. LWUA would also work closely with MOH in the construction and monitoring of the 12 stabilization ponds in the proposed project. A. Objectives III. THE PROJECT 3.01 The proposed project's major objectives are the development and mobilization of local resources for the water and sanitation sector, and the organization and strengthening of the local institutions responsible for the sector. These objectives would be achieved through the financing of part of the Government's rural water supply and sanitation program, with priority given to the areas of greatest need. The project is part of the first stage investment program and has flexibility for the Government to adjust targets based upon early experience. Under the project the efforts of the several agencies involved in the sector would be better coordinated and channelled towards the single task of improving public health in the rural areas The project supports the objectives of the Rural Water Supply 1Master Plan and will be implemented throughout the Philippines, with priorities given to 19 provinces which have inadequate rural water supplies. The project concept is to support a part of the first stage ( ) of this program and be a catalyst so that local capability could be mobilized and institutions developed for the efficient implementation of as much as possible of the full program. Similarly the project supports a part of the first stage ( ) of the Rural Sanitation Master Plan which aims at providing most rural households in the country with sanitary excreta disposal facilities by The project also has provision for training, administration and health education, technical assistance for research and project implementation and for the preparation of future projects in the water and wastes sector.

18 While previous Bank operations in the sector concentrated upon cities and small towns, the proposed project would go deep into the countryside focussing upon small clusters of households far from the main arteries. The project is designed to offer a better balance in opportunities, between the urban and rural areas, through the improvement of key elements of social infrastructure which support the country's agriculture-based economy. Last but not least, the project would not only organize and strengthen the rural water supply and sanitation sector institutions but would also help develop local community participation thereby promoting higher standards of hygiene, personal cleanliness and public health. B. Description 3.04 Rural Water Supply. The proposed project provides for the construction of about 4,500 shallow wells and 2,300 deep wells (Level I systems) for unserved communities and the rehabilitation of 2,900 existing wells (which are not functioning at present) to restore service to these communities. All of these wells would be equipped with handpumps or electric pumps as appropriate to serve clusters of about 50 and 150 households. The proposed project provides well casings and screens, drilling equipment, pumps for these systems and vehicles for project implementation. The project also includes the construction of 400 Level II communal faucet systems. A typical protected shallow well installation is shown in IBRD Drawing and criteria for well construction are in the project description at Annex To ensure the monitoring and the satisfactory and continued operation of the rural water systems to be constructed under the proposed project MPWH will establish in its regional and district offices, 12 workshops to carry out major maintenance. The construction and equipment of these workshops is included in the proposed project. Agreement was reached with Government at negotiations that these workshops would be organized and adequately staffed and funded to carry out the major maintenance of the water supply systems constructed under the project Rural Sanitation. The proposed project provides for the procurement and installation of about 150,000 toilet units per year through The first phase of procurement of toilet bowls numbers about 350,000 manufactured out of fiberglass, PVC and plastic materials. A typical water sealed pour flush toilet is shown in IBRD Drawing MOH would construct waste stabilization ponds in 12 communities, one in each region with the objective of introducing low cost safe disposal of human wastes. MOH would also make a start in the disinfection of public wells with chlorine procured through the proposed project. The RWSAs would gradually take over this activity as the rural communities, through the health education programs, get an understanding of the need to protect the safety of drinking water at source. Criteria for these sanitation activities are in the project description at Annex Research in Rural Water Supply and Sanitation. In rural water supply, MPWH and RWDC would test well screens and handpumps. Suitable vehicles are included in the project for this research and for operating and maintaining the stabilization ponds during the project period, including the monitoring and evaluation of the performance of the ponds and collecting pertinent data on crop irrigation with pond effluents.

19 Training, Administration and Health Education. Success in the rural water supply and sanitation activities is greatly dependent on community participation, and the health education component in the project under MOH administration and carried out by specially trained MOH staff, would play a very important role in community preparation. Small group meetings, such as of barangay officials, key barangay people, religious groups, civic organizations, cultural groups, parents and teachers associations, mothers' classes and other women's organizations, school children, etc., would be held by trained sanitary inspectors and other rural health workers to underscore the importance of proper excreta disposal and safe drinking water. In turn, these groups would explain and motivate the less educated members of the community for participation in the program. This would be supplemented with the dissemination of educational materials to schools, public posters and radio broadcasts To carry out the health education and toilet construction programs MOH would incur incremental administrative costs in temporary staff for supervision and training, incremental travelling and per diem costs for health education and supervision of toilet construction, incentive payments to poorly paid existing staff, information, education, communication and demonstration materials required for the health education and training programs and vehicles and fuel for project supervision, training and health education activities; these incremental costs are included in the project. The health education programs include the training of regional, provincial and rural health workers who in turn would carry out the training of field health workers and the health education of communities at the barangay level. Details are at Annex 1. RWDC has prepared a training program which includes the training of RWSAs in routine operation and minor maintenance and overseas training of selected MOH, MPWH, MLG and RWDC staff in areas of low cost design of rural water and sanitation systems. The proposed project assists MOH and RWDC in carrying out these training programs Consulting Services. Most of the engineering for the simple rural water systems will be carried out by MPWH and MLG staff supported by local consultants as needed. Consultants would participate in special areas such as hydrology, research activities, assisting with project review and monitoring and in the periodic review of the criteria in the Rural Water Supply and Sanitation Master Plan. Consultants would also be appointed to assist RWDC, MPWH and MOH to speed up financial reporting, including the procurement and use of micro-computer equipment for making detailed designs and financial projections and in training. An amount of $960,000 has been provided in the project to cover the costs of about 55 man-months of foreign consultants and 125 man-months of local consultants for these purposes. Research, development and monitoring (para. 3.07) is estimated at $90,000 for which 5 man-months of foreign consultants and about 12 man-months of local consultants have been provided. Details are at Annex MPWH under an ongoing project is updating the Manila Drainage and Flood Control Master Plan. This is expected to be substantially completed by January 1983 and additional engineering services are required to make

20 soils investigations, land surveys, hydrological studies and model tests, and prepare detailed designs and bid documents. Six areas have been identified in the city which have serious drainage and flooding problems. These are Malabon, Canta, Taytay, San Mateo, Talayan and San Juan covering some 1,600 ha. Details are at Annex 2. An amount of $3.4 million has been included in the project for consulting services which includes $0.3 million for the soils investigations and model tests. The estimated requirements are: 84 foreign and 200 local man-months supported by MPWH engineering staff The ongoing solid wastes management study for Manila, being undertaken by the Government, is expected to be completed in November Progress made so far indicates that a satisfactory least-cost alternative has been identified utilizing disposal through landfills, with some composting and incineration. An amount of $2.2 million has been included in the project for consulting services for detailed design which includes $0.2 million for groundwater studies in proposed landfill areas to control contamination by leachate. The estimated requirements for consulting services and financial and institutional consultants are: 55 foreign and 200 local man-months. C. Implementation Arrangements 3.13 Water Supply. RWDC has also made satisfactory arrangements for project implementation. The project development and implementation process is shown in IBRD Chart No MPWH, which will have the responsibility for the implementation of Level I systems and source development of Level II systems has created a project management office. The organization and staffing arrangements of this office have been reviewed and are satisfactory. Agreement was reached during negotiations that MPWH would staff this office by not later than March 31, It was also agreed during negotiations that a senior RWDC official with experience and qualifications acceptable to the Bank would be designated to be responsible for the construction of the Level II systems and jointly with RWDC's General Manager for the coordination of the water supply and sanitation activities under the project Sanitation. MOH as the lead government agency for the management of sanitation has created sanitation committees comprising the lead agencies (MPWH, MLG, MWSS, LWUA) at all levels of Government including the Provincial, Municipal and Barangay levels. MOH has also created a project management office which would be responsible for implementing the sanitation component (Organization Chart IBRD 23634). The organization of this office has been reviewed by the Bank and is satisfactory, the implementation arrangements being similar to those followed under MOH's ongoing toilet construction program. Agreement was reached during negotiations that the staffing of this office would be completed by not later than March 31, The Provincial Health Offices would, under the guidance of the project management office, carry out the health education, training and toilet construction activities in the sanitation component, through the assistance of some 60 sanitary engineers, 3,000 sanitary inspectors, 4,500 municipal health officers and about 8,000 public health nurses using the well established rural health

21 delivery organization. MOH sanitary inspectors would carry out feasibility studies and recommend the provision of toilet bowls free of charge to beneficiary households that have agreed to participate in the program. The individual households are in turn responsible for carrying out the necessary construction (pit and enclosure) and installation through self-help under the guidance of the sanitary inspectors Pilot Scheme. In an attempt to further maximize the health benefits of the project, accelerate project implementation and reduce administrative and supervision costs, a pilot scheme integrating the rural water supply and sanitation construction would be undertaken during the early stages of project implementation. In such a pilot scheme, expected to comprise about 100 villages mainly with Level I systems, each village would be treated as a unit. The facilities to be built under contract would be the water supply system and the basic core of the toilet unit - the toilet bowl, supports and underground structure - vault or pit. The householder would complete the installation by grading the site and erecting the shelter. The RWDC would have a single account for the village and the RWSA would have subaccounts. Based upon the results of the pilot scheme, new concepts would be implemented as appropriate Maintenance Arrangements. The project's design includes two levels of maintenance for the capital equipment to be financed under the project. First, routine preventive maintenance would be undertaken by villagers trained in hand-pump installations; every effort being made to ensure that the wells are properly constructed, the well screens and pumps are of good design and are correctly installed (para. 3.07). Second, breakdown maintenance which requires special equipment would be carried out by MPWH field offices with assistance from the needy RWSA. The 12 regional maintenance workshops in the project (para. 3.05) provided for major maintenance would complement existing MPWH facilities Project Implementation and Review Committee. A Project Implementation and Review Committee (PIRC) has been established and its staffing would be completed by March 31, PIRC is chaired by the Deputy Minister of MPWH and would include as members, MOH's Assistant Minister and RWDC's General Manager and would be assisted by a technical secretariat. According to PIRC's terms of reference, which have been reviewed by the Bank and found to be acceptable, PIRC's responsibilities would include monitoring project performance, overall coordination of the project's implementation activities and verifying disbursement claims/statements of Expenditure before submission to the &ank. PIRC would be initially guided by the priorities and design criteria in the Master Plan and employ consultants to assist in the reviews. An important aspect of PIRC's work would be to review the progress on the pilot scheme with integrated water supply and sanitation components and consider extending the scheme with improvements, for implementation on a larger scale. PIRC would also provide information and work closely with the review and periodical updating of the Rural Water Supply and Sanitation Master Plan.

22 Status of Project Implementation. Typical designs, specifications and bid documents have been prepared by RWDC and are currently in use by MPWH's Regional and District Offices and the Provincial Engineers Offices. Manuals for design, construction, operation, maintenance and accounting for the rural water systems have also been prepared and are in use. All these have been reviewed and are satisfactory. A large part of this work was done by consultants financed under Loan 1710-PH and a UNDP-funded project assisted with the development of low cost designs. RWDC has used all of this material in its training programs. MPWH has advertised in the Development Forum Magazine all pipe fittings, drilling rigs, etc. required for the Rural Water Supply component. Bid evaluation is now under way. MOH has also advertised for prequalification of bidders for the fibreglass/plastic toilet bowls, vehicles and chlorine for the rural sanitation program. RWDC has confirmed that 200 of the 400 Level II communal faucet systems have been designed by the Provincial Engineers Offices and all 400 designs would be completed by early impwh also confirms that the first year work program for the Level I systems has been prepared along with the tentative program for the second year. MOH reports a similar position in regard to the toilet construction program. It would, therefore, be reasonable to predict that by the time the loan becomes effective, around December 1982, the project would be implemented without delay. The project includes the formation in each year of about 1,500 RWSAs, about 2 per province per month - an achievable target. The implementation schedule is shown in IBRD Chart No ; monitoring indicators are at Annex 3. D. Project Cost Estimates 3.19 Total project cost, net of duties and taxes, is estimated to be $57.9 million, of which about 43% is the foreign exchange component. The project cost includes an estimated $27.3 million for rural water supply, $25.0 million for sanitation and $5.6 million for technical assistance. The estimates have been made to a baseline of July 1982, to which were added physical contingencies of 10%. Price contingencies were calculated as follows: 10% for 1982 and 8% thereafter for local costs; and 8% for 1982 and 1983, 7.5% for 1984, 7%. for 1985 and 6% for 1986 for foreign costs. Foreign consultants' costs, including fees, salaries, travel and subsistence are estimated at about $11,800 per man-month. Local consultants' costs are about $2,500 per man-month. The detailed cost estimates are at Table 1 and sample costs of the different types of construction are shown at Table 2. The summary of project cost estimates is given in the next page The sanitation component in the project cost estimates includes the incremental training and administration costs essential for health education and project implementation. The incremental costs on administration and training during the project period would be P million as follows: temporary staff P 1.1 million, incentive pay 3P 20.2 million, travelling/per diem P 54.9 million, fuel and transportation P 11.3 million, training, health, education, supplies and demonstration materials P 29.2 million. Details are given in Annex 1. Given the need for ensuring

23 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Summary of Project Costs Foreign Local Foreign Total Local Foreign Total as % of ----Pesos million US$ million Total Rural Water Supply Water supply systems Equipment and vehicles Maintenance facilities Engineering Training Base Cost (mid prices) Rural Sanitation Sanitary Units Water quality surveillance Stabilization ponds Vehicles Training and administration Base Cost (mid prices) Contingencies Physical Price Total Cost Technical Assistance for the Preparation of Future Projects Drainage & solid waste disposal Total Project Cost Front-end fee on Bank Loan Total Financing Required

24 that the rural communities have to be educated in the importance of safe drinking water and in building the sanitary toilets and then to using them, this is a reasonable cost (para. 5.07). MOH in the recent past has, because of budget constraints, incurred relatively modest expenditures on field activities for its staff - in 1981 the total expenditures for travel/per diem and fuel was only P 128,000. The annual nonincremental costs on salaries and wages for all staff directly involved in rural sanitation is estimated at P 36 million and the total nonincremental costs for the project period would be about P55 million. The project cost estimates do not include any nonincremental costs. E. Procurement 3.21 Equipment and materials, vehicles and toilet bowls needed for the project totalling about $16.5 million are suitable for ICB and will be procured according to the Bank's guidelines. Though some would be manufactured abroad it is likely that domestic producers of fiberglass toilet bowls may win the bid for this item. Eligible domestic bidders would have 15% preference under ICB procurement. In subsequent phases of the program, other methods of procurement may become appropriate; for example, having the private sector become interested not only in producing these units but also in their marketing by small shopkeepers. This provides an opportunity during project execution to test procurement and institutional arrangements with the objective of seeking the least cost and most efficient option, as the rural toilet construction program is implemented. Specialized micro-computer equipment with a total cost of about $20,000 and services for training in the use of the equipment in detailed design and making financial projections would be procured through inviting quotations from at least three independent manufacturers or suppliers. Civil works for the construction of 12 regional maintenance workshops, 12 stabilization ponds, 10,000 wells, 750,000 toilet units and 400 Level II water supply systems would be procured through small local contracts through local competitive procedures, which are satisfactory to the Bank, or force account or voluntary labor. These contracts for civil works or equipment estimated to cost less than $100,000 would be subject to random post-review after contract award. Since most of these works are in remote areas scattered throughout the country it is unlikely that they would be of interest to foreign bidders. All consulting services, except those for preliminary and detailed engineering of the 400 small water supply systems which would be done by in-house staff assisted by local consultants, will be procured on the basis of Bank guidelines The equipment and materials for water supply systems and toilet units would be allocated to each group of subprojects on the basis of recommendations made by the PIRC. PIRC would also make arrangements for the execution of the civil works and other services through RWDC and MOH. RWDC would enter into appropriate agreements with MPWH and MLG for the civil works in the construction of Level I systems, the source development of Level II systems and the maintenance workshops. MOH would similarly enter into appropriate agreements with RWSAs (through RWDC) for the construction of the toilet units and make arrangements with its Regional Health Offices for the construction, operation and monitoring of the stabilization ponds. PIRC's

25 decisions would be reviewed periodically by the Bank. With the exception of special items such as training, design and construction of stabilization ponds, research and development, Bank reviews would be otherwise limited to the review of the arrangements for project execution, agreement on design and construction criteria and spot-checking of designs and completed work during normal supervision missions. PIRC will have RWDC and MOH prepare statements, including maps, built up from reports at the Barangay level of completed units and verified by the Provincial Water Works Committees and Provincial Health Offices. Physical targets are at Table 5. Supervision missions would carry out field checks of PIRC statements and of statements of expenditure, audit reports, RWDC's financial statements and MOH's expenditures in training and administration. F. Disbursements 3.23 The proceeds of the proposed loan would be disbursed against: (a) Equipment and Materials - for equipment, materials, vehicles, and toilet bowls procured through ICB, 100% of foreign, 100% of local expenditures, or 65% of expenditures for directly imported, locally manufactured and locally procured, respectively; (b) Civil Works-statements of expenditure (SOEs) based upon agreed unit costs to complete facilities of various kinds; (c) Consulting Services - 100% of total expenditures; and (d) Training 100% for foreign training based on training program; and 30% for local training based upon SOEs and training program. The disbursement schedule is at Table 3; it follows in the first four years the countrywide disbursement profile for the water supply and sewerage sector in the Philippines. In the fifth year it is assumed that disbursement performance would have improved somewhat and that the project would be completed in five years rather than five years and six months as is shown in the disbursement profile. All disbursement claims would be fully documented except for those related to civil works and local training for which SOEs verified by the PIRC would be provided. The closing date for the proposed loan is December 31, Details of allocations are at Table Accounts and Audit. All of the principal institutions, i.e. MOH, MPWH and RWDC have adequate accounting and internal control systems for the recording and reporting of project-related expenditures, including SOEs, from the time project implementation commences. MOH and MPWH are presently doing this on other Bank projects and have already made preparations for applying the established procedures to the proposed project. MOH would keep separate accounts of the incremental expenditures incurred for administration and training components in the project. RWDC is working closely with NEA to adopt the system currently in use by NEA in Bank financed rural electrification projects. Improvements are possible in speeding up processing - this would be done by financial management consultants during project implementation. The project accounts of these institutions would be audited by independent auditors acceptable to the Bank (para. 4.01). The auditors would be requested to make spot checks of works completed and accounted for by SOEs. In addition, it was agreed during negotiations that documents in support of SOEs would be retained one year after the Closing Date and separate opinions would be given by the independent auditors confirming that funds withdrawn under SOEs have been used for the purposes intended.

26 G. Financing Plan 3.25 The financing plan is as follows: Pesos US$ --- million --- Use of Funds Rural Water Supply Rural Sanitation Technical Assistance Front-end fee Total Uses Sources of Funds World Bank Government Users contributions Total Sources The Bank loan to the Government in the amount of $35.5 million, inclusive of $0.5 million capitalized front-end fee, would be for a term of 20 years including five years grace, with interest at 11.6% p.a. The Government would allocate $12.3 million to MOH for construction of sanitation works, and provide a total of $19.7 million for the construction of rural water supply works. Of the latter, about $14.7 million would be allocated to MPWH for the construction of Level I systems, water source development, engineering and training, and about $5.0 million would be a loan to RWDC for the construction and engineering of Level II systems. The Government's onlending to RWDC would be at a rate of 4% and be for a term of 20 years, including five years of grace. About $3.0 million would be utilized by the Government for the preparation of future projects. The loan would finance about 61% of the total project cost; this would cover the foreign exchange cost and about 30% of the local cost. The Government would bear the foreign exchange risk The total funds needed for the water supply and sanitation components of the project is P million. Annual construction budgets have been forecast for each respective year in the period as follows: P 33 million, P 130 million, P 113 million, P 93 million, and P 65 million.

27 IV. FINANCE A. RWDC's Financial Performance 4.01 The authorized capital stock of RWDC is P 1.0 billion in ten million shares of P 100 each to be subscribed by the Government as required. An additional annual appropriation of up to P 20 million is authorized as grants for technical assistance and institutional development of RWDC. Audited financial statements for the first period of operations, i.e., the last ten months of 1980, show that RWDC received an initial equity contribution from the Government of P 12 million; this has since been increased to P 39 million. Currently, the capital subscription by the Government to RWDC is being used for capital and recurrent purposes. A commercial accounting system is in use. Although a comparatively new organization, RWDC had by the end of 1980 a staff establishment of 91 including 25 finance staff, and is operating in a businesslike manner. Auditing is carried out by the Government Commission on Audit. The audit certificate was issued within four months of the end of the financial year. RWDC has an adequate accounting and internal control system, but some improvements would be made during project implementation. Assurances were obtained during negotiations that RWDC will furnish to the Bank an audit report prepared by independent auditors acceptable to the Bank not later than six months after the end of each financial year The only source of income for RWDC is from loans made to RWSAs for Level II and III schemes on which it can charge interest. Loan repayments would be collected from RWSAs (along with electricity charges) on behalf of RWDC by ECs. It is assumed that the principal of all loans would be repaid, and that initially about 10% of all interest due would be uncollectable. The ECs would receive a collection fee of 10% on interest collected on behalf of RWDC. RWDC has a manual for the agency contracts between itself and the ECs. There are 123 ECs throughout the Philippines. RWDC would monitor and control the loan collections from RWSAs by ECs. An accounting manual, including a collection system has been designed for the RWSAs by RWDC. These arrangements would be reviewed and changed as needed RWDC estimates its recurrent expenditure at the end of its organizational buildup phase, i.e., by about 1986, to be P 10 million per annum and that to break even would require Level II and III loans of P 250 million; it aims at achieving this by The Government would not need to provide further recurrent grants for institutional development beyond Income Statements, Cash Flow Statements and Balance Sheets for RWDC for each year in the period 1980 to 1990 are shown in Annexes 4, 5 and 6. Assumptions used in the financial projections are shown in Annex 7. B. Cost Recovery for Rural Water Supply 4.04 Up to 90% of financial assistance for Level I water supply schemes will be in the form of a grant from the Government; and in the case of Level II schemes the financial assistance will be in the form of a loan from RWDC

28 to RWSAs for up to 90% of project cost. For projects now being undertaken, the beneficiaries provide at least 1 0 % of the cost. This practice would continue in the proposed project. The loans by RWDC to RWSAs for Level II schemes will be for 20 years at 4%5 interest per annum with one year's grace on amortization. The need for a low interest rate at this stage is acceptable because of the low repayment capacity of the beneficiaries who are mainly low income rural families, and to support the Government's objective of providing basic needs - safe drinking water and proper sanitation - at affordable costs. This interest rate is subsidized; however, it represents a minor deviation from the Government's overall interest rate policy which calls for a positive interest rate for all onlendings to commercial entities. On average, the initial monthly charges on the beneficiaries have been set at P 1.00 for Level I and P 7.00 for Level II schemes. These charges are set to provide adequate cash for operations and maintenance in all cases, and will cover debt service charges where necessary. Typical operation and maintenance costs of four RWSAs with Level II water supply schemes are shown at Table 6. Agreement was obtained during negotiations that RWDC would cause: (a) water charges to be set at a level which would cover operating and maintenance costs, and any debt service charges; (b) water charges to be reviewed annually in each November and that any necessary tariff increases disclosed by this review be implemented in January of the following year; and (c) all RWSAs receiving loans from RWDC to be audited and that a report on these audits and on the review of the adequacy of water charges be made available for review by the Bank within six months of the end of the year. C. Cost Recovery for Rural Sanitation 4.05 No cost recovery from beneficiaries is proposed for the sanitation component in order to encourage all families to install household toilets for the sanitary disposal of excreta. Some 750,000 toilet bowls, at a present cost of ip 60 each, are expected to be installed at a present cost to the Government of P 427 per toilet bowl installed (P 60 per toilet bowl; P 207 for MOH's present cost of administering the program; and P 160 for the incremental cost to MOH for health education and training). However, there will be a large local community input by the recipient households; this includes the digging of the toilet pit, provision of the superstructure, wooden platforms and pit linings with locally available materials (see para. 3.14). This community participation is estimated to have a value of about P 480 per family or about 53% of the total cost. This is an appropriate mechanism for financing the rural sanitation program (para. 5.07). V. JUSTIFICATION A. Project Benefits 5.01 General. The health benefits of the proposed rural water supply and sanitation project are difficult to estimate in economic terms. It is, however, generally accepted that the higher quality of drinking water and sanitation to be provided under the project would improve the public health of these

29 communities, reduce their medical and hospitalization costs, increase their effective nutrition - especially in children due to reduction of intestinal parasites - and foster the productivity of the rural population. A better balance in opportunities between the rural and urban areas and more equitable access to social services would also result. A socio-economic survey conducted for this project indicates that rural communities attach a high value to improved water supply and sanitation. Women and children who spend long hours fetching water would especially benefit from the project Population Benefitted. The rural water supply component would provide communal faucet service to clusters of households of about families and hand pump service to clusters of households of about 15 to 50 families reaching a total population of about 1.7 million./< The rural sanitation program would provide about 750,000 new or rehabilitated household toilets during the project period of five years to reach a total population of about 4.5 million. Most of this population is among the poorest inhabitants of the country and through the project would have access to safe water and proper sanitation for the first time Economic Evaluation. The project is designed to provide an integrated approach including not only safe water, and basic sanitation, but also health education on the use of the sanitary facilities. A considerable part of the project inputs are in community development, community organization and institutional building, which should contribute to overall community improvements. The economic return on the overall investment is not quantifiable because of the impossibility of assigning monetary values to the health and institutional benefits and because the overall project revenues - as a proxy for quantifiable benefits - are negligible, especially in the rural sanitation component In a typical Level II communal rural water supply system, the average water tariff would be set after discussions at public hearings and would have to be accepted by each community before construction starts. Using the 48 lpcd to be provided under the project as a proxy measure of quantifiable benefits, the internal rate of return (IRR) is estimated to be 4%. However, using the present water charges paid by beneficiaries to water vendors for the first 20 lpcd and one-half of this rate for the incremental 28 lpcd to be provided under the project as a proxy measure of willingness to pay, the IRR is 10%. Given that the health and other benefits have not been considered, this calculation suggests that the economic rate of return of the project is positive Quantitative measures of the costs and benefits for the Level II systems in the project are at Table 7 and are summarized below: /1 Calculated on the assumption that the 10,000 wells in the project would each serve an average of 25 households and each household has a family size of six persons; and the 400 communal faucet schemes each serves a cluster of 100 households and each household has six persons.

30 (a) Internal rate of return (IRR). IRRs have been calculated using observed willingness to pay as a proxy for economic benefits. The results are: (i) Considering the expected average water charges 4% (ii) At estimated total willingness to pay 10% (b) Investments. Average per capita costs vary depending on the water source: Systems with springs, gravity feed $ 9 Systems with wells and electric pumps $22 (c) Water Charges. Average water charges as a percentage of average rural family income 1.1% 5.06 The financial recovery and the IRRs obtained for the rural water supply component are achievable through a combination of public health education (increasing the awareness of water benefits) and least cost designs using appropriate low cost technologies. Depending on water source, the average per capita investment is only about $10 for Level I and about $20 for Level II systems. Furthermore, average water charges are expected to be well below 2% of the average rural family income, making the water affordable to the rural poor and guaranteeing the replicability of this project and confirming the prospect of eventual achievement of the Rural Water Supply Master Plan targets No quantitative methods are available to evaluate the rural sanitation component. Nevertheless its impact on the well-being, health and environment are well known. The beneficiaries' willingness to build the rural sanitation toilets is demonstrated by their contribution of 53% to the construction of toilet units (para. 4.05). The rural sanitation component is expected to have a large impact not only in reducing parasitical infections, especially in children, but also in reducing infant mortality and the death rate of young children due to enteritis and other diarrheal diseases caused by fly-borne vectors. The health education and household toilet construction program in the project is justifiable in terms of the reduction of these public health hazards. The total cost of the program (including government outlays and the community contribution) at P 907 per toilet bowl installed is considered to be reasonable This project is the first Bank rural water supply and sanitation project in the Philippines designed to provide services exclusively to the lowest income rural population who at present depend upon unprotected wells for their drinking water and lack basic sanitary facilities. Total water and sanitation per capita cost for the program (1982 prices) are about $30 per person served, ($12 for water and $18 for sanitation). Bank participation would be a catalyst in helping Government implement the full program.

31 B. Risks 5.09 The main risk is the limited experience of RWDC and MOH with implementing a rural water supply and sanitation project of the magnitude and complexity envisaged. Although RWDC is a new institution it has the support of an experienced organization in the MPWH. RWDC's present General Manager has extensive experience with rural communities through his connection with the ongoing rural electrification program. MOH has some experience with the toilet construction program but there is the risk of implementation delays due to low community acceptance of the project because of a lack of knowledge of the health benefits of good sanitation. The training and community health education programs supported by technical assistance from consultants included in the project would minimize these risks. Furthermore the rural water supply and sanitation program is supported at the highest levels in Government. In addition, well-qualified staff have been appointed and their motivation and enthusiasm are important assets. Bank's experience with LWUA's management and staff in the two ongoing provincial water supply projects has been encouraging, giving room for confidence that both RWDC and MOH staff would similarly gain experience and successfully implement the project. C. Environmental Aspects 5.10 The project is intended to rehabilitate existing rural water supply and sanitation systems and to extend these services to large numbers of rural inhabitants who do not have access to adequate or safe water supply. The need for much of the population to satisfy water requirements from safe water sources would be substantially met and the incidence and risks of waterborne diseases would be reduced. The volume of water used by people served through public wells or standpipes is modest, allowing them to satisfy basic human requirements for cooking and personal use with little wastage, and would not cause any serious disposal problem. The additional waste water resulting from the project would not therefore be an environmental problem. VI. AGREEMENTS REACHED AND RECOMMENDATIONS 6.01 During negotiations agreement was reached with Government on the following principal matters: (a) Government would implement the recommendations agreed with the Bank on the sector organization review (para. 1.12); (b) MPWH workshops would be adequately organized, staffed and funded (para. 3.05); (c) MPWH and MOH would staff their respective project management offices (paras and 3.14); and (d) Government would staff the Project Implementation and Review Committee (para. 3.17).

32 During negotiations agreement was reached with RWDC that it would: (a) appoint one of its senior staff with experience and qualifications acceptable to the Bank to be responsible for project coordination and implementation of Level II systems (para. 3.13); and (b) cause water charges to be set to cover operating and maintenance costs and debt service requirements, review water charges annually and ensure RWSAs receiving loans from RWDC are audited (para. 4.04) Subject to the above the project is suitable for a Bank loan of $35.5 million equivalent for a term of 20 years including a grace period of 5 years.

33 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Project Cost Estimates (P million) Total Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign Rural Water Supply - Water supply system Equipment and vehicles Maintenance facilities Engineering Training Base Cost (mid prices) Rural Sanitation - Sanitary units Water quality surveillance Stabilization ponds Vehicles Training administration _ _ Base Cost (mid prices) Total Base Cost (mid prices) Contingencies - Physical Price Total Project Cost

34 Table 2 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT RURAL WATERWORKS DEVELOPMENT CORPORATION Sample Construction Costs (Pesos - at July 1982 prices) I Level I Level II-- Shallow well Deep well Springs Standpipes Foreign Costs - Materials 1,300 20,000 32,000 40,000 Local Cost - Materials ,400 22,000 - Labor 300 7,700 5,500 6,100 - Transport 100 3,900 3,300 2,200 - Supervision - 2,000 2,200 2,200 - Self-help /a 200 4,300 4,650 8,300 - Physical contingency 100 1,400 4,000 2,200 Subtotal ,000 22,000 43,000 Total Cost 2,200 49,000 54,000 93,000 /a Unskilled labor and other inputs provided by the community.

35 Table 3 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Estimated Schedule of Disbursements IBRD fiscal year Cumulative disbursements Disbursement and semester ending at end of semester profile /a (US$ million) (%) (%) 1983 December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, /a Based upon countrywide disbursement profile for the water supply and sewerage sector in the Philippines, adjusted for the payment of the front-end fee.

36 Table 4 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Allocation of Proceeds of Loan Category Amount (US$ million) Disbursement Equipment, Materials, Chemicals and Vehicles; total $16.45 million as follows: Water supply systems % foreign expenditures or 100% local expenditures and 65% ex-factory of other items produced locally Water treatment ditto - Sanitation ditto - Civil Works Well construction 1.00 $100 per completed well for 10,000 wells Toilet construction 6.00 $8 per completed toilet unit for 750,000 units Maintenance workshops 0.11 $9,000 per completed workshop for 12 workshops Stabilization ponds 0.20 $17,000 per completed pond for 12 ponds Level II water supply systems 3.00 $7,500 per completed Level II system for 400 systems Training % of total expenditures for local training 100% of total expenditure for overseas training Consulting Services Engineering, consulting and research; total $1.35 million as follows: Preliminary and detailed 0.30 $750 per completed design for engineering 400 Level II systems Consulting services % of total expenditures Research, development % of total expenditures and monitoring Engineering for future projects; total $3.0 million as follows: Flood control and drainage % of total expenditures Solid wastes management % foreign expenditures Front-End Fee 0.52 Unallocated 3.42 Total 35.50

37 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT PHYSICAL TARGETS - RURAL WATER SUPPLY PROGRAM Other Other Spring (surface Spring (surface Shallow Deep devel- water, infl. Total Shallow Deep devel- water, infl. Total Category well well opment gallery, etc.) projects well well opment gallery, etc.) projects 1. Drilling/development/ construction of point sources for Level I systems 1, ,508 1, , Rehabilitation of point sources for Level I systems , , Construction of Level II systems Grand totals Other Other L Spring (surface Spring (surface Shallow Deep devel- water, infl. Total Shallow Deep devel- water, infl. Total well well opment gallery, etc.) projects well well opment gallery, etc.) projects 1. Drilling/development/ construction of point sources for Levels I systems 1, ,359 4,485 2, , Rehabilitation of point sources for Level I systems ,000 1,020 1, , Construction of Level II systems Notes: 1. It is assumed that 1983 would be taken up with procurement and mobilization. 2. Sources for Level I systems would be developed as appropriate for future expansion to Level II Systems. 3. Springs and infiltration galleries would be developed as appropriate for Level I systems.

38 Table 6 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT TYPICAL OPERATION AND MAINTENANCE COSTS - LEVEL II SYSTEMS Rural Waterworks Associations (Pesos) Suay Baguio Badiong Sinawil Bagumbayan Masiag RWA RWA RWA RWA Water Source -- Well with pump Spring, gravity-- Project Cost 65, ,200 66,000 66,000 Monthly Expenses: Loan Amortization 359 1, Maintenance Salaries Power Depreciation (pump) _ Total 761 2, No. of households Monthly fee/household

39 -35 - Table 7 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Internal Rate of Return Calculations (IRR) (1981 prices) System type II Wells, Wells, Weighlarge small Spring, Spring, ted clusters clusters gravity gravity average Sample village Badiong Suay Bagum- Sering Sinawill Baguio bayan Households Water consumption, cu m/year/a 21,024 5,887 15,768 19,132 Minimum consumption, cu m/ year/b 8,760 2,453 6,570 7,972 Investment (Pesos) 197,187 65,800 66,000 71,039 Monthly operating expenses (Pesos) Personnel Power Other Expected water charges /e (Pesos/cu m) Pesos/month per family Willingness to pay (Pesos/cu m) For 20 lpcd /b For 48 lpcd /d Expected distribution (%) Rate of return /e At expected water charges /c Using estimated willingness to pay /d Per capita investment (US$/person) % average charges on family income /f /a 48 LCD. Water production including 25% losses will be 60 lpcd. /b Based on 20 lpcd purchased for about P 0.04 for a 20-liter can (P 2/cu m) or US$0.23/cu m) in water-scarce zones and about P 0.02 in other areas. /c Water charges will cover all cash operating expenses and debt service. Debt service is computed on 90% of the investment with 20-year term and 4% interest. The deflation of debt service with inflation is expected to be compensated by small complementary and maintenance investments. /d Estimated at -P 2/cu m for the first 20 lped and P 1/cu m for the remaining 28 lpcd (water-scarce zones) and P 1/cu m and P 0.5/cu m respectively for other areas. /e For 25 years. No health benefits or externalities have been included. /f Average monthly rural family income in 1975 was -P 395 (about 45% of the level in Manila) or about P 750 by mid-1981.

40 ANNEX 1 Page 1 PHILIPPINES First Rural Water Supply And Sanitation Project Project Description A. Rural Water Supply Component Selection Criteria 1. Community Needs and Potentials. Adequacy of existing supply and extent of water gap: Adequacy in this context covers not only quantity but also accessibility, reliability during the dry season, and quality. Inadequacy of water supply vis-a-vis a set of standards is commonly expressed as the "water gap." In general, communities with large water gaps, particularly those that do not even have a protected well, will be accorded high priority. 2. Prevalence of water-borne and water-related diseases: In many instances, diseases such as gastroenteritis, dysentary, cholera and typhoid, are traceable to the lack of adequate and potable water systems. Communities with high incidence of these diseases will receive prior attention in the selection of water supply projects. 3. Growth prospects: Lack of water supply may hamper the development of the economic potentials of an area into, for instance, a market, food or fish-processing center, or cottage-industries center. The community may also suffer from insufficient water for other productive nondomestic uses, such as agriculture, livestock, and vegetable cultivation. The greater the economic potentials of an area, the higher shall be the priority for water supply development. In this regard, economically depressed areas shall be underscored. 4. Community interest and involvement: Other things being equal, priority in project development assistance will be given to communities that express their intent and readiness to form a water supply and sanitation association and discharge the responsibility expected of it. This calls for a commitment and ability of the community to contribute, in cash and/or in kind (e.g land, labor, and materials), to the cost of construction, and to pay an adequate fee for water use and system operation and maintenance. This arrangement is essential in the planning stage to ensure that, through consultation between the Barangay workers and the community, an appropriate level of service is selected that will meet basic water and sanitation needs and, at the same time, be within the capability of the community to pay for and administer.

41 ANNEX 1 Page 2 System Costs 5. Budget: Each water supply project must be examined to ensure that it represents the least-cost means of providing the required service. Additionally, the ready availability of water will have a bearing on the number of least-cost projects that can be implemented within a given budgetary ceiling. 6. Population Distribution: Other things being equal, the larger and more densely populated communities will require lower investment costs per capita. Systems for a group of communities, or clusters of households that are close together may have lower capital costs, possibly by using a common source of supply, and be cheaper to operate and administer than those for 7. Nature of Water Source: The effects on costs of the type of source and distance from the community are on important factor. Groundwater from springs and wells, which requires little or no treatment to make it safe, is preferable to surface water. Shallow wells are preferred over more expensive deepwells with handpumps that are suitable. 8. Levels of service: The effects of the service levels on costs is important, and community involvement in deciding the most appropriate level is essential. Systems would be designed for simple and trouble-free operation, and be capable of being operated and maintained by local technicians. Equipment must be able to withstand utilization, replacement parts should be readily obtainable. To facilitate project development and minimize costs, standard designs, and documents which can be slightly modified to meet local conditions, have been developed and used for estimation of quantities and costs, procurement, construction, and operation. 9. Accessibility: Water supply projects located in a place without good access roads and/or accessible only by foot paths are more expensive. However, there are instances whereby such communities urgently need potable water supply. In this case, the community would play a pivotal role in implementing a project. Source Development 10. Site Investigation: (a) it is likely to occur in larger quantities under valleys than hills; (b) in arid regions certain types of waterloving plants indicate the presence of groundwater at shallow depths underneath; (c) gravel, sand, sandstone and limestone are the best water-carriers; and (d) surfacewater resources include rivers, smaller streams, lakes, ponds and man-made reservoirs. Ease of development would be an important consideration. 11. Quantity of Yield. The quantity of water available from a source is its yield. It is measured by various methods depending upon the nature of the source, that is, groundwater or a surface source also, and what information is available: (a) pump test; (i) rate of pumping; and (ii) recovery test; (b) theorectical method; and (c) a combination of the above two.

42 ANNEX 1 Page In measuring the quantity of a surface source the methods adopted are: (a) stream gauging; and (b) cross-section velocity method. 13. Quality of Water. No two sources are exactly alike and, with the exception of some well supplies, even the same source may produce water of widely varying quality at different times. Thus, it should be emphasized that each supply must be studied by itself all throughout the year when measures for its treatment are under consideration. 14. Location of the Source. A source preferably should be in the close vicinity of the population served. Out of two nearby sources the one which has better water should be away from any point of waste disposal, and in case of a river it should be on the upstream side. Shallow wells should not be sited close to pit latrines. 15. Design Criteria and Typical Designs. The following design criteria including basic design data will be adopted for all rural water supply projects: (1) Design period - 5 years or 10 years (2) Population (a) Annual Growth - 3% (b) Average Household Size - 6 persons (c) Design Population - Present population x 1.16 (3) Per Capita Water Consumption: (a) Level I - 30 lpcd (8gpcd) (b) Level II - 60 lpcd (15 gpcd) to 75 lpcd (20 gpcd) (c) Level III lpcd (25 gpcd) (4) Water Demand: (a) Average Day Demand - Design population x per capita consumption (b) Maximum Day Demand x average day demand (c) Maximum Hour Demand x average day demand (5) Pump Operation: (a) Pumping Hours - (b) Pumping Data hours Maximum day demand and pumping hours (6) Storage Capacity maximum day demand (7) System Pressure - 5 psi at faucet (for barangay system) 10 psi at faucet (for poblacion system)

43 ANNEX 1 Page Varied water supply designs will be used for the Program, and its adaption is dependent on the actual condition in the community. Presented hereunder in tabular form are typical model systems. TYPICAL MODEL RURAL WATER SYSTEMS Code Description 1 Shallow well - 1-1/2" PVC Casing Pipe with cast iron hand pump (surface mounted). Average depth 12 m 2 Shallow well - 2" G.I. casing pipe with cast iron hand pump (surface mounted). Average depth 12 m. 3 Shallow well - 4" PVC casing, no drop pipe where the discharge of such well is 20 to 50 gpm. To be developed into Level II service. 4 Deep well - light duty; 2" G.I. casing pipe with hand operated (sub-mounted) all brass cylinder of dia 1-13/16" x 24" barrel and valve group. Average depth is 24 m and 3/8" x 18 m. rod. No chance for conversion to Level II. 5 Deep well - medium duty, low cost for smaller Barangay; 4" PVC casing with 1-1/2"0 G.I. drop pipe, hand operated with all brass working barrel of 2-1/4" x 24" and valve group with PVC screen (experimental). Average depth 60 m. 6 Deep well - heavy duty-high cost for bigger Barangay. 5"O steel casing, 2-1/2" G.I. #40 drop pipe with 2-1/4" x24 all brass working barrel and valve group with low carbon galvanized steel fiber glass or PVC screen. For upgrading to Level II. Average depth 60 m. 7 Deep well - for smaller Poblacioin, well discharge up 150 GPM. 6"O steel casing with low carbon galvanized stell screen. Average depth 60 m. 8 Others: spring boxes and infiltration galleries.

44 ANNEX 1 Page Shallow wells are constructed with average depth approximately where small diameter tube wells with hand operated cast iron suction pumps are normally used. This type of wells are installed in areas where the maximum ground water level (water table) is not lower than 6.10 m (20 ft) measured from the gournd surface. The pipe casing of 2" nominal size, serves as the well casing and drop pipe of the pump. The average yield is 20 liters per minute and each unit usually serves 5 to 40 households. 18. The well must be drilled with the open hole method to allow proper selection of the aquifer for easy screen installation and for gravel packing if necessary. 19. Before installation of the pump, the well would be properly developed to clean out mud and sand. After taking out the large diameter temporary casing, the annular spaces outside the well casing is grounded with concrete to a depth lower than that of existing sources of contamination, to serve as sanitary protection. 20. The pump base is normally constructed about 1.0 m above the ground surface to avoid contamination of the wall during floods. Also, a concrete slab platform of 10 mm thick protects the well from contamination due to excess water pumped. 21. Deep wells have depths of 9.0 m and above, which are normally drilled by percussion or rotary drills. The casing will be 4" and 5" in nominal sizes provided with deep set, brass cylinder pumps 2-3/4" x 23" with 3" drop pipes. (a) Drilling method. Open hole method of drilling must be used. To avoid caving-in at the upper portion of the hole, a temporary casing of a large diameter is installed but which is pulled out after drilling works. To support the walls of the holes at the deeper portion, clayey material "soil" is mixed with drilling water. With a little practice, loca well drillers could master drilling holes of more than 100 meters even with manually operated percussion drilling machines. This method allows not only examination of drilling samples gathered, but also actual confirmation of the potentially of the aquifer by electric logging. Proper seleciton of suitable aquifer is therefore effected. (b) Well design: (i) casing sizes - Level I projects are considered for future upgrading to Level II & III projects, hence, the casing size is dictated by the sizes of the proposed pump to be installed that will produce the expected yield or required demand. Casings of 4", 5" and 6" nominal sizes are normally used; and

45 ANNEX 1 Page 6 (ii) screen length - in unconfined aquifer, the screen length must not be less than 1/3 of the total thickness of the aquifer. In confined aquifer, not less than 70% of the whole thickness of the aquifer shall be penetrated by the screen. (b) Well completion and development: (i) because open bottom is vulnerable to sand intrusion, which is established as the most common problem in well maintenance, all well bottoms shall be plugged by welding a steel sheet to the lower end of the installed casing; (ii) to safeguard against sand flowing from the aquifer through pumping, gravel packing may be undertaken. The gravel pack size must be approximately 5 times as coarse as the gradiation of aquifer material. Uniformity coefficient must be 2.5 or less; (iii) in well development, the well must be thoroughly cleaned of mud after drilling. Mud left at the walls of a bore-hole gets hardened and it leads to the stoppage of groundwater flow through openings in the aquifer and around the screens. Sufficient cleaning work is indespensable in order to prevent incrustation; (iv) for sanitary protection, the annular spaces outside the casing in the oversized borehole is grouted to a minimum depth of 10 ft to prevent the entry of contaminated water from nearby sources; (v) a well slab platform of about 4 ft in diameter with a minimum thickness of 4" and incorporating a drainage canal and properly sloped to drain water away from the well must be constructed which should be 4" above the existing ground level; (vi) the well would be chlorinated and put into service upon approval by the sanitary inspector. B. Rural Sanitation Component 22. Training and Administration. There are 87 Sanitary Engineers position (27) vacant) in the Ministry of Health, 3,000 Sanitary Inspectors, 7,950 Public Health Nurses, 7,573 Midwives and 4,516 Municipal Health Officers./l The average time being devoted by the MOH personnel in sanitation activities is as follows: /1 As of November 1981.

46 ANNEX 1 Page 7 Estimated Title/Position time in % Regional health director 5 Regional sanitary engineer 50 Senior sanitary engineer 50 Regional training officer 20 Regional nurse supervisor 10 Regional health educator 30 Municipal health officer 30 Field sanitary engineer 50 Chief sanitary inspector 50 Supervisor sanitary inspector 50 Provincial nurse supervisor 10 Provincial health educator 30 Municipal health officer 30 Public health nurse 10 Sanitary inspector 80 Midwives Non Incremental Costs of the Sanitation Component. The costs of the sanitation component are made up of the following: (a) salaries and wages; (b) travelling/per diem; (c) fuel for vehicles; (d) information, education and training materials both for training of MOH staff and of the communities. Items (a), (b) and (c) are classified by MOH as administrative items and (d) as training. Listed below are the costs of salaries and wages of 19 categories of staff involved in MOH's sanitation activities during This is expected to be unchanged in No breakdown is available of time specifically devoted to health education in safe drinking water and sanitary disposal of excreta. Very approximately, based upon the table above this was about 25% in 1981 but would be increased to about 50% per annum when the project is implemented commencing October On this basis, the nonincremental cost for the project in salaries and wages for the period ending 1986 would be about P 155 million. During 1981 the estimated cost of travelling/per diem was P19,200 and fuel P 108,000. About 20% of these costs are estimated to be related to sanitation. On this basis, non-incremental costs during the project period would be P 19,200 and P 89,800 respectively. In 1981 there were no regular government non-incremental expenditures for information education and training materials because of an ongoing WHO/UNICEF National Sanitation Training Program at the Institute of Public Health, University of Philippines. This is a two year program ending in The estimated local component if this program in 1981 was P 864,000 in training costs. These costs would not be repeated after the end of 1982.

47 ANNEX 1 Page 8 ANNUAL SALARY OF MINISTRY OF HEALTH PERSONNEL Annual No. Total Salary Persons per year (P) (P) Ministry of Health... 75, ,000 Assistant Minister... 61, ,392 Regional Health Director... 61, ,568 Provincial Health Officer 22, ,659,144 City Health Officer Municipal Health Officer... 15,264 4,500 68,688,000 Head/Chief Sanitary Engineer , ,388 Sanitary Engineering Adviser... 23, ,784 Supervising Sanitary Engineer II... 22, ,184 Supervising Sanitary Engineer I... 20, ,380 Senior Sanitary Engineer , ,040 Sanitary Engineer... 14, ,920 Sanitary Inspector... 6,240 3,000 18,720,000 Public Health Nurse... o.. 7,992 8,000 63,936,000 Rural Health Midwife... 6,240 7,000 43,680,000 Senior Sociologist... 12, ,032 Sociologist , ,936 Senior Clerk... a... 7,236 1,000 7,236,000 Clerk II... 5,926 1,000 5,926,000 Clerk I ,382 1,000 5,382,000 Total 217,861,768 One-third of staff costs cover health work = P 72,620,589 About one-half of these costs would cover the provision of safe drinking water and sanitation during project period = P 36,310, Incremental Costs Because of Sanitation Project Component. The purely incremental costs are broadly classified by MOH into "Training and Administration" and have 9 separate items as described below: Administration (a) Temporary Staff - MOH describes this category as Personnel Services - Contractual and includes the following; 2 senior civil engineers, 1 senior sociologist and 6 support staff paid a total annual salary with cost of living allowances of about P 190,000. The total cost of this staff is estimated at P 1.04 million during the project period.

48 ANNEX 1 Page 9 (b) Incentive Pay - So as to ensure the success of the project and to compensate for working extra hours in the various aspects of project implementation, incentive pay has been included in the incremental costs ranging between 25% and 35% of annual salaries payable to staff directly involved in the sanitation project component. Considering the low pay of MOH staff (e.g. Sanitary Inspectors, (SI) a key official in the community health education program is paid P 6,240 per annum) the payment of incentives is justified. About 2,000 sanitary inspectors directly responsible for project implementation would each receive an incentive pay of P 2,040 per annum during the project period. The total number of staff benefitting from incentive payments would be about 2,200 and annual payments would total about P 4.8 million making the total amount during the project period of about P 20.3 million. (c) Travelling/Per Diem. Travelling per diem payments are provided as incremental costs for 3000 sanitary inspectors and 1500 municipal health officers for the community health education program. The sanitary inspectors would spend 10 days in the field each month; the 60 supervisory sanitary engineers 15 days of each month in the field and 11 management staff about 20 days per quarter in each year. Except for management staff who are paid P 45 per day all other staff are paid P 25 per day travelling/per diem. The annual total would be about P 13.5 million with an overall total of about P 55.0 million during the project period. (d) Incremental Fuel Costs. MOH has a system under which gasoline is provided to official vehicles or private vehicles that are used for official travel. The gasoline is supplied at special prices from dealers or from government depots. The proposed incremental costs in gasoline for the sanitation component are estimated as follows: gasoline for 15 days for one vehicle for the Supervising Sanitary Inspector in each of the 12 regions at 20 liters per day; 5 days use of one vehicle for the Regional Director, Provincial Health Offices and Municipal Health Officers for a total of 15 days in each month in each of the 12 regions; and 3 liters per day for 820 motorcycles used for the project. At P 5.00 per liter the total incremental cost for gasoline in each year would be about P 1.6 million and for the project period about P 6.4 million. (e) Hauling Charges. The toilet bowls and chlorine procured through ICB would be delivered to the Regional Health Offices. The cost of the 750,000 toilet bowls are estimated at P 60 each, total P 45.0 million and that of the chemicals, P 4.2 million. The transportation of these supplies to the user RWSAs varies considerably between the different parts of the country and has been averaged at 10% of their cost, totalling about P 4.9 million.

49 ANNEX 1 Page 10 (f) Supplies and Forms. The sanitation component of the project would require a considerable increase in record keeping and related paper work. The cost of this incremental stationary in each region would be as follows in each year: 50 reams mimeographing paper, 20 mimeographing ink tubes, 20 quire stencils, 40 reams bond paper and 100 reams of onionskin paper all at an annual incremental cost of about P 96,000 for the 12 regions and at a total cost of P 444,000 during the project period. (g) Training. Training of senior staff provides for 25 man-months at overseas fellowships in the design and construction of low cost rural water supply and sanitation systems at a cost of P 1.25 million. This gives about 12 two month fellowships and one, one-month fellowship. Local training would be conducted at the national, regional, provincial and municipal levels of all staff directly involved in the sanitation component of the project. This staff in turn would become trainers or make direct contact with the rural communities. These are all incremental costs as the training would be solely devoted to safe drinking water and sanitary excreta disposal. All of these costs are for travel and per diem payments during training as follows:

50 ANNEX 1 Page 11 Level of Training Pesos National 12 Regional Health Directors (3 days) 15, Senior Sanitary Engineers in 12 Regions (5 days) 36, National Task Force Members (4 days) 4, Persons in related agencies ( 1 day) 1,000 Regional 206 Provincial Health Officers, City Health Officers and Regional Nurse Supervisors (3 days) 38, Chief and Supervisory Sanitary Inspectors (7 days) 54, Regional Task Force Members (4 days) 48, Person in related agencies (1 day) 12,000 Provincial 1500 Municipal Health Officers and Public Health Nurses (3 days) 465, Rural Sanitary Inspectors and Rural Health Midwives (4 days) 1,140, Provincial Task Force Members (6 days) 219, Persons in related agencies (2 days) 73,000 Municipal 15,000 Mayors and Council Members (1 day) 750,000 39,500 Barangay Captains (1 day) 1,185,000 7,300 Municipal Task Force Members (6 days) 1,382,900 Barangay 3 RWSAs from each of 39,500 Barangays (5 days) 11,850,000 Miscellaneous meetings (unscheduled) 2,107,000 Total 19,382,000 Training Materials (h) Information, Education and Communication Materials. So as to make the rural communities aware of the advantages of safe drinking water and sanitary excreta disposal the following posters, instructional handouts and comics for school children would be provided at a total incremental cost of P 7.5 million; 160,000 P 1.40 each for the International Drinking Water and Supply and Sanitation Decade program, 160,000 P 1.40 each related to diseases caused by unsafe drinking water and contact with excreta, one million instructional P 3.20 each on construction of sanitary toilets; and one million comic P 4.20 each related to safe drinking water and good sanitation.

51 ANNEX 1 Page 12 (i) Demonstration Materials. MOH has devised simple chlorinators for use in wells and springs to disinfect drinking water supplies. The project therefore has a small provision of P 174,000 at P 10 per chlorinator with a total of 17,400 devices to be used in the demonstration of the advantages of chlorinating water supplies. The sanitary inspectors would install these cholorinators and provide chlorine procured under the project until the RWSAs take over these functions. 25. The non incremental costs and incremental costs are compared below with incremental costs over the project period. October December SUMMARY OF NONINCREMENTAL AND PROJECT RELATED INCREMENTAL COSTS Million Item Pesos Remarks A. Non-Incremental Costs /1 Salaries and Wages Based on 1981 expenditures Travelling/Per Diem Fuel Total B. Project Related Incremental Costs Administration Temporary Staff Hired on contract and laid off after the project Incentive Pay Travelling/Per Diem Fuel Handling Charges Supplies and Forms Subtotal Training Health Education Fellowships Overseas; 25 man-months Training Materials Demonstration Materials Subtotal Total /1 Nonincremental costs are not included in the project cost estimates.

52 ANNEX 1 Page 13 The largest non-incremental cost will be in salaries and wages. Traveling/ Per Diem and fuel costs have been relatively insignificant and can be therefore ignored. Unit Costs 26. For the 750,000 toilet units to be constructed under the project unit costs will be as follows: (1) Total cost of community contribution = P 360 million Cost per unit to householder = P 480 (2) Total nonincremental Government cost = P 155 million Cost per unit to Government = P 207 (3) Total incremental project cost = P 117 million Cost per unit to Government = P 160 Cost per toilet bowl = P 60 Total incremental cost per unit = P 220 Total incremental cost per capita = P Summary Cost per toilet unit Pesos Percent Selection Criteria Community Nonincremental Incremental Total cost per unit Cost per capita 151 assuming 6 persons per household 27. There are seven major types of toilet facilities being used by the community, namely, flush toilet with septic tank, flush toilet connected to the sewer, water sealed toilet, sanitary privy, open pit privy, overhung and drop type. 28. Considering the socio-economic condition of the community, the sanitarians recommend and persuade the people to construct flush toilet with septic tank in urban areas and water sealed toilets in rural areas. In areas where they do not have enough water for flushing the toilet, the sanitary privy is recommended.

53 ANNEX I Page The three types of toilet cost as follows:/1 Investment Type of toilet cost/unit Description Flush with P 3,300 to Most of septic tanks are of septic tank P 4,000 the leaching type, without a tile field, or connection to a sewerage system. Water sealed P 150 to Water sealed toilet is widely toilet P 540 used by the rural communities and many households like to have the type as it is cheaper and has certain advantages such as no odor nuisance, no fly breeding source and safe for children to use, easy to clean as compared with the pit privy. Sanitary pit privy P 100 Pit privy consists of a pit about 1 m x 1 m x 1.5 m deep, provided with toilet seat covers. 30. The households in areas where the ground water table is high and there is danger of contaminating ground water sources, shall be required to construct toilets with septic tank or vault or off-set type of water sealed toilet with shallow and wide pit. 31. Besides the government supplied water sealed toilet bowl and health education, the construction work will be shouldered by the recipient households, which includes digging toilet pit, provision of super structure, wooden platforms and pit linings with locally available materials, based on the recommendations made by the health authorities RWSA, or barangay officials. The householder would do the work himself with assistance from members of his family. /_ November 1981 prices.

54 ANNEX 1 Page The Water Seal Squat Type Toilet Bowl. This device which would be supplied free of cost by Government,was conceived to provide a means of disposing human excreta in unsewered areas so that the usual objections from ordinary latrines due to odor nuisance is eliminated. It also meets requirements for the hygenic disposal of feces and urine: (a) that none of the feces and urine shall be disposed so that they will pollute the soil surface; (b) that none shall cause odor or be accessible to flies, insects, and animals; (c) that none shall be so disposed as to make it possible to carry it back into the food; and (d) that none shall be used to fertilize soil for growing vegetables that are eaten raw. 33. This device in addition to meeting the above requirements also provides an acceptable latrine from the standpoint of its: (a) simplicity; (b) inexpensiveness; (c) minimum reliance upon individual for maintenance; and (d) convenience and comfort. 34. The water seal type toilet seat works on the same principle as the common flush type water closet except that the removal of the waste matter is achieved by pouring a smaller volume of water into the device. Enough water is retained in the lower portion of the device which forms a seal and prevents odor from the pit getting into the toilet room and flies or mosquitoes breeding in the pit. This type of toilet may be constructed out of clay or cement, plastic or fiber glass. This device also offers these advantages over other cheap types of excreta disposal: (a) contact of feces from flies eliminated; (b) it encourages higher standard of maintenance; (c) it cannot be easily clogged; (d) it is safe for children; (e) it can be installed near or within the house; (f) digestion of waste is more rapid hence longer period of use; and (g) it can be used in wide range type of soil conditions. 35. The Government is encouraging the adaption of the off-set type of toilet which can be installed inside the house with fiberglass toilet bowl, which will not require the use of heavy concrete slabs as the bowl can be mounted on lumber or timber to support the footrest. The advantages of this type of toilet bowls are that they are unbreakable, easy to clean and easy to transport. 36. During the toilet construction period, the Sanitary Inspector would make routine visits to the sites in accordance with the toilet construction schedule of the barangay to render technical assistance on site selection, type to be constructed, method of construction, maintenance, etc. in coordination with the Rural Water and Sanitation Association (RWSA) and Barangay Health Workers. After completion of the construction of new toilets and rehabilitation of insanitary ones, the Sanitary Inspectors shall issue "Certificate of Compliance" to Sanitary Requirements to the RWSA. After the issuance of the "Certificate of Compliance," the Barangay Health Workers, Brigade and the Board Member of the Water and Sanitation Association will check the facilities for proper use and maintenance from time to time. The midwives during their house visits would also check/inspect the facilities and the Sanitary Inspector in the area would make periodic monitoring and sur-

55 ANNEX 1 Page 16 veillance on all newly constructed and rehabilitated toilets and water supply facilities in the assignment areas. Water Quality Surveillance 37. The Rural Sanitary Inspectors would inspect periodically all water supply facilities in his area of responsibility and make a schedule for disinfection in the order of priority based on the laboratory examination of results and current/standing policies for the operators use and guide. The RWSAs will eventually take up this activity. Disinfection of open dug wells will gradually be decreased to zero as the construction of new water supply facilities increase, taking the place of open dug wells. Implementation targets are shown in the table below: Phase Classification total 1. Water laboratories (ongoing) a. Improvement of regional laboratories: Communities b. Establishment of provincial laboratories: Communities Disinfection a. Deep wells 54,966 64,966 75,996 37,966 40, ,860 b. Shallow wells 75,290 77,290 92, ,290 62, ,450 c. Springs 7,385 11,385 15,985 20,385 4,885 60,025 d. Open dug wells 13,000 15,000 15,000 13,000 10,000 66, MOH will intensify its water quality surveillance program to cover nationwide the monitoring and surveillance of water quality on existing and newly constructed water supply facilities, improve drinking water supply facilities and provide safe and adequate drinking water to all Filipinos by 1990 using the primary health care approach and concept. The construction of water supply facilities will be the responsibility of the MPWH, RWDC, LWUA, MLG, MWSS, etc. and water quality surveillance shall be sole responsibiity of the MOH. 39. In connection with the above, MOH shall improve and upgrade 12 Regional Sanitary Laboratories and establish 64 Provincial Sanitary Laboratories by the end of 1982 with ongoing UNICEF financial assistance.

56 ANNEX 1 Page All the community drinking water supply facilities will be inspected and water samples collected periodically by the Sanitary Inspectors for bacteriological as well as chemical and physical analysis. During the inspection, sanitary inspectors will recommend proper improvement measures to the responsible person or RWSA members. Waste Stabilization Ponds 41. The Ministry of Health plans to undertake the wastewater treatment of 12 rural towns (poblacions) by providing drainage systems with simple stabilization ponds in a pilot project. The materials and equipment required for the construction of a low cost small base system utilizing stabilization ponds as treatment methods will be the responsibility of the government while land cost and labor will be shouldered by beneficiary communities. 42. A trained operator will be in charge of the operation and maintenance of the treatment facility. The project provides for consultancy services to design, operate and maintain the systems. 43. Data will be collected on the costs of construction and operation of the systems; information on the population served, the degree of loading and treatment achieved will be collected; and the pilot installations carefully monitored. It is expected that the data and information obtained will provide a basis for improving the design of stabilization ponds in the Philippines. The project provides for consultants to assist with the design and operation of low cost sanitation sytems. Employment 44. Since most of the works would be done through self-help or by Government staff, the additional employment generated by the project is limited to the construction of 12 stabilization ponds and 400 Level II systems. These are expected to provide: (a) 108 man-months of skilled and 240 man-months of unskilled employment for the construction of the ponds; and (b) 1,600 man-months of skilled and 8,000 man-months unskilled employment for the Level II systems./l The latter would be reduced should some of the RWSAs decide to provide the unskilled labor themselves. /1 Assuming: (a) 2 bulldozer and 2 grader operators, 5 masons and 20 laborers for one month; and (b) 2 pipefitters and 10 laborers for 2 months.

57 ANNEX 2 Page 1 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Consulting Services and Technical Assistance A. Rural Water Supply and Sanitation 1. Introduction. The following represents an indication of the scope of consulting services when inviting proposals. Actual man-months would vary slightly depending on the consultants' offer. 2. Objectives: (a) to ensure the successful implementation of the water supply and and sanitation projects and supporting activities; (b) to gain further necessary planning, construction and monitoring, operation and maintenance technologies; (c) to obtain necessary assistance in strengthening insitutional building; 3. Scope of Services: (a) in connection with the concerned agencies, the consultants will provide assistance with the: (i) identification and selection of water supply and sanitation projects by assessing groundwater studies, clusterwise distribution, socio-economic consideration and related factors; (ii) development of methodologies and schedules for implementation; (iii) supervision of projects being executed essentially during the initial year of implementation; and (iv) monitoring of water quality; (b) assess additional training needs and extend assistance in the execution of training programs for engineers and other technical staff, and that of the Rural Waterworks and Sanitation Associations;

58 _ 54 - ANNEX 2 Page 2 (c) evaluate existing operation and maintenance practices of water supply systems, toilets and stabilization ponds, and develop recommendations to improve such practices; (d) review institution building programs and provide recommendations to improve the programs; (e) conduct and/or monitor financial studies to be undertaken during the first year of operation; (f) participate in Project Implementation Review Committee (PIRC) meetings, provide technical inputs and prepare special reports for PIRC. (g) cover the following professional services in connection with the establishment of stabilization pond treatment facilities: (i) undertake the prefeasibility studies of proposed sewer and waste water treatment facilities; (ii) prepare the feasibility study of the proposed low cost sewer system to include a detailed map of project site (scale: 1:500 or appropriate) and listed information on the survey, slope and soil conditions, bearing capacity, flood level, storm water/rainfall run-off data, conditions of existing and category of road networks and planned access roads, service line for electricity and other utilities, means of water supply and waste disposal facilities, existing households/ buildings (use, height, material, condition) and planned major development. (iii) prepare preliminary designs of proposed sewer facility and stabilization pond waste water treatment facility; (iv) incorporate comments received from Project Management Staff and finalize the plans, working drawing and details of appurtenant structures; detailed cost plan with a description of the construction materials, construction methods; (v) prepare a manual on operation and maintenance of completed facilities including evaluation of the performance of the pond, and related costs and proposed scheme/s to make the facility financially viable to cover required operation and maintenance cost plus future expansion of the system when required; (vi) determine the use of the pond and its effluent for crop irrigation and for other beneficial uses.

59 ANNEX 2 Page 3 4. Outputs Expected (a) inception report; (b) brief monthly report concerning the progress of work or accomplishments; (c) report containing list of project sites and rationale or basis of selection including an assessment of groundwater studies; (d) report on the methodologies and scheduling for implementation; (e) completiion report of findings and recommendations about the consultant's supervisory activity on projects being implemented, covering a period of 12 months; (f) report on additional training needs and training programs to be executed; (g) report evaluating the operation and maintenance practices of water supply systems, toilets and stabilization pond; (h) report containing findings and recommendations concerning institution building; (i) report on financial management studies; (j) special report for the Project Implementation Review Committee regarding technical inputs; (k) attendance in meetings and conferences; (1) system for regular reporting on the status of completed projects for certifying disbursement; (m) feasibility studies of proposed waste water treatment facilities, and cost recovery; (n) designs of proposed sewer facilities and stabilization pond waste water treatment facility; and (o) manual on operation and maintenance of completed facilities. 5. Minimum Experts Required and Man-Months In the implementation of the above activities, the hereunder minimum experts are necessary.

60 ANNEX 2-56 Page 4 Ai/an-Months Expatriate Local Total 1. Civil engineer Sanitary engineer Hydrologist/Hydrogeologist Chemist/Chemical Engineet/Water Quality Technician 5. Well Driller Accountant Sociologist Training specialist Total Time Schedule. The minimum period for consultancy services shall be twelve (12) months but not more than eighteen (18) months. 7. Research and Development. By applying research and development (R&D) for the project, it is expected that the resources, i.e., materials, equipment, manpower, money and technology will be optimally used at the least cost possible and with the desired quality or strength. 8. The objectives of applying R&D in the project are: (a) to improve further the effectiveness and efficiency of casing, drop and distribution pipes, fittings, pumps and the like, as well as the technologies applied in construction; (b) to evaluate/monitor the applicability of new materials, equipment and technology; and (c) to advise on the design, operation and maintenance of small-bore low cost sewer system. (d) making special studies and reports for the handpump and well screen testing programs. 9. The general activities for this undertaking are as follows: (a) preparation of research design; (b) field test research tools to be applied; (c) evaluate results of the tests; (d) re-align research design, if necessary; (e) field demonstration; (f) collection of data; (g) data

61 57 -ANNEX 2 Page 5 analysis and interpretation; (h) preparation of report to include findings and recommendations; and (i) submission of reports for management consideration. Since this is a specialized activity, individual consultants would be hired as needed, up to a total of 5 foreign and 12 local man-months. B. High Priority Drainage and Flood Control Needs of Metro Manila 10. MPWH is about to begin an update of the Manila Flood Control Master Plan. There are however five areas in the city which require action to give immediate relief to the residents. The five areas are described below: (a) Malabon Drainage. Municipality of Malabon particularly the areas adjacent to the Malabon River with a drainage area of 192 ha. Causes of flooding are overbank flows of the Malabon River aggravated by the reclamation of Dagat-Dagatan Lagoon which formerly served as an impounding basin for the Malabon- Tullahan River discharge and inadequacy of a system for the disposal of local storm run-off. Approximate flooded area is 15 ha. Studies by the MPWH point to the need for an embankment along the Malabon River from its junction with the Bangkulasi River to Tinejeros, flood pumps to ensure the drainage of low walledin areas and the provision of storm drains for local strom discharge. (b) Drainage of Area East of Mangahan Floodway. Low areas within the catchment of Sapang Buli, Ilog Cainta and Mahabang Sapa in the municipality of Cainta and Taytay which discharge to the Laguna Lake will be cut off by the construction of the Mangahan Floodway. The creeks have a total drainage area of 74 sq km at their intersections with the Mangahan Floodway. This area is subject to inundation even under natural conditions (without the Mangahan Floodway) owing principally to the inadequate carrying capacity of the main drainageways. Approximate flooded area is 400 ha. Improvement and diversion of the channels of Sapang Buli to Ilog Cainta, channel improvement of Ilog Cainta and Mahabang Sapa and pumping station at Ilog Cainta is proposed. (c) Marikina River - Upstream of Rosario Weir. The 7.5 km stretch of the Marikina River from the inlet of the Mangahan Floodway at Rosario Weir to San Mateo. Flooding is caused by overflow of the Marikina River. Approximate flooded area is 375 hectares. The long term solution is the construction of river walls along both banks with an aggregate length of 15 km.

62 ANNEX 2 - ~~~~~~~Page 6 (d) Talayan Drainage. The 760 hectares Talayan creek catchment in Quezon City. The Talayan Creek is a branch of the San Juan River, a major tributary of the Pasig River. The Talayan area is an exceptionally low-lying section of Quezon City which development had been greatly hampered by perennial flooding caused by excessive local strom run-off and overflows of the San Juan River. Approximate flooded area is 300 hectares. Augmenting the discharging capacity of the Talayan Creek through channel widening and deepening and construction of drainage mains for the conveyance of local storm run-off is proposed. (e) San Juan Drainage. The downstream areas adjacent to the left bank of the San Juan River covered by the Buhangin Creek and Maytunas Creek with a drainage area of 450 ha, all within the municipality of San Juan. Flooding caused by bank overflow of the San Juan River and excessive local storm run-off. Approximate flooded area is 400 ha. Construction of about 2.5 km of river walls along the left bank of Buhangin Creek and Maytunas Creek, the installatioin of flood control pumps at the mouths of those creeks and provision of adequate drainage facilities for local storm run-off is proposed. Assignment Local Foreign man-months man-months MPWH Consultant Consultant Project Manager Asst. Project Manager hydrologist (2) Flood Control & Drainage Engineer (2) Hydraulic Engineer (2) Structural Engineer (2) Mechanical Engineer Electrical Engineer Cost Estimating Engineer (2) - 24 Geologist Geodetic Engineer - 6 Civil Engineer (2) Economist - 8 Financial Analyst Tender Document Specialist Total

63 59- ANNEX 2 Page The above estimates of consultant services is based upon experience by MPWH in similar projects carried out in Metropolitan Manila. C. Solid Wastes Management 11. The Metro Manila Solid Wastes Management Master Plan is nearing completion and requires to proceed urgently to detailed design. Preliminary reports from the expert review panel are that the project will have three basic design components: land fills, transfer stations and a small composting plant./l There would also be a large institutional component. Based upon similar infrastructure projects it is estimated that about 55 foreign consulting man-months and 200 local consulting man-months at a total cost of $2.2 million would be required. The terms of reference for these services are now under preparation and would be reviewed by the expert review panel. This project is needed to complement ongoing investments in sewerage, sanitation and drainage in Metro Manila. /1 The expert review panel is financed by the UNDP. The Bank is the executing agency.

64 ANNEX 3 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Monitoring Indicators Total Physical targets - Nos Rural Water Supply Level I Systems Rehabilitated wells ,000 1,000 2,900 New shallow wells 500 1,000 1,500 1,500 4,500 New deep wells ,300 Other point sources for Level I systems /a Contingency provision /b Total Level I systems 1,000 2,170 3,440 3,390 10,000 Source Development for Level II Systems Infiltration galleries Springs Deep wells Total Source Development for Level 11 Systems Reticulation systems for Level II systems Maintenance workshops Rural Sanitation Stabilization ponds Household toilets 50, , , , , ,000 Wells and springs disinfected - 200, , , , ,000 Investments targets - US$ and % Total rural water investments: US$ million Percentage Total rural sanitation investments: US$ million Percentage Total investment in rural water and sanitation: US$ million Percentage /a Springs, surface water, infiltration galleries. /b Allowance for dry holes or poor water quality.

65 _ 61M-EX PHILIPPINES FIRST WATER SUPPLY AND SANITATION PROJECT RURAL WATERWORXS DEVELOPMENT CORPORATION INCOME STATEMENT (PESOS MILLION) FISCAL YEAR ENDING 10 MONTHS ESTIMATED DECEMBER 31 AUDITED PROJECTIONS INCOME INTEREST EARNED LEVEL II INTEREST EARNED LEVEL III SUB-TOTAL LESS: DOUBTFUL DEBTS TOTAL INCOME EXPENDITURES PERSONNEL OPERATIONS COLLECTION FEE TOTAL EXPENDITURE OPERATIONAL SURPLUS (t DEPRECIATION NET INCOME (txt LOSS ( S _

66 A.NNEX 5 PHILIPFINES FIRST WATER SUPPLY AND SANITATION PROJECT RURAL WATERVORKS DEVELOPMENT COIPORATIOK CASH FLOW STATEMENT (PESOS MILLION) FISCAL YEAR ENDING 10 MONTHS ESTIMATED DECEMBER 31 AUDITED PROJECTIONS SOURCES INCOME BEFORE DEPRECIATION GRANTS FOR OPERATION PROJECT FINANCING: GOVERMENT EQUITY (OTHER) l GOY. GRANTS (LEV.I SYSTEMS) CONSUMER CONTRIBUTIONS e0 SUBTOTAL OTHER PROJECTS: GOVERMENT EQUITY COV. GRANTS (LEV.I SYSTEMS) CONSUKER CONTRIBUTIONS SUBTOTAL l64.00 AMORTIZATION: LEVEL II SYSTEMS LEVEL III SYSTEMS SUBTOTAL TOTAL SOURCES APPLICATIONS PROJECT COST - LEVEL I LEVEL l l6.23 Is SUBTOTAL OTHER PROJECTS: - LEVEL I LEVEL II LEVEL III SUBTOTAL EGUIPMENT CASH INCREASE (+) INCREASE (+) OTHER ASSETS TOTAL APPLICATIONS ===22========2:=:==:::: :=:==::z:::z23z:s::::z::2:z::2===:~:::::2::...: =====

67 _ 63 - ANEX 6 PHILIPPINES first WATER SUPPLY AND SANITATION PROJECT RURAL WATERWORKS DEVELOPMENT COIPORATION EALANCE SHEET (PESOS MILLION) 1S I t 1990 FISCAL YEAR ENDING 10 MONTHS ESTIMATED DECEMBER 31 AUDITED PROJECTIONS ASSETS FIXED ASSETS ACCUMULATEDEPRECIATION NET FIXED ASSETS CASH LOANS TO RVSAS - LEVEL ll I1l LEVEL III S SUBTOTAL OTHER ASSETS TOTAL ASSETS LIABILITIES CAPITAL ACCUMULATED SURPLUS TOTAL LIABILITIES

68 ANNEX 7 Page 1 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Assumptions used in the Financial Projections for the Rural Waterworks Development Corporation Income Statement 1. Income is earned in the form of interest on loans by RWDC to RWSAs for the construction of Level II and Level III water supply works. The interest rate for Level II works is 47% per annum, and for Level III works has been assumed to amount to 9W per annum. 2. Collection efficiency is assumed at 90a of total interest receivable. 3. Expenditure on Personnel and Operations is projected on the basis of the approved RWDC budget for 1982, and assumes a growth of 2 per annum during 1983 and 1984 and 3%/ per annum thereafter. Inflation has been assumed at a rate of 8% per annum. 4. A collection fee of 10% on interest collected is deemed to be payable by RWDC to Electricity Cooperatives which collect loan repayments from RWSAs on RWDC's behalf. 5. Depreciation of equipment used by RWDC is based on an average asset life of 10 years, and therefore amounts to 1/% per annum. Cash Flow Statement 6. As provided in RWDC's enabling legislation, Government grants are assumed to be made available for the institutional development of RWDC. Such annual grants will no longer be required when the income earned from loans for Level II and Level III water supply works is sufficient to cover cash operating expenditures. 7. Project financing is deemed to come in the form of Government loans of up to a maximum of 90t of the project cost, and consumer contributions have been assumed to amount to 10% of project cost. 8. Loans by RWDC to RWSAs are amortized over 20 years including a grace period of one year. 9. In projecting the level of operations of RWDC it has been assumed that it will start each second year an additional project similar in size to the first Bank-assisted project.

69 ANNEX 7 Page 2 Balance Sheet 10. Fixed assets in the Balance Sheet cover only those items used by RWDC in its operations. Fixed assets in the form of completed water supply schemes are handed over to RWSAs. 11. No specific assumption has been made in respect to the accumulated increases in the cash balance of RWDC beyond These cash surpluses could be used either to self-finance part of future development or be repaid to the Government to offset earlier Government grants to RWDC for institutional development. Other 12. The sanitation component of the project is implemented by the Ministry of Health, and the Level I water supply works are implemented by MPWH, and hence these works are not reflected in the financial statements of the Rural Waterworks Development Corporation.

70 -66- ANNEX 8 Page 1 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT Selected Documents and Data Available in the Project File A. Reports and Studies on the Sector 1. Philippines - Water Supply and Sewerage Study Report (2 Volumes) World Health Organization/World Bank Cooperative Program - January Philippines - Water Supply and Sanitation Sector Study Report (1 Volume) World Health Organization/World Bank Cooperative Program - April Philippines Census Population. B. Reports and Studies Relating to the Project 1. Philippines - Integrated Water Supply Program Philippines - Draft Rural Water Supply and Sanitation Master Plan (2 Volumes). 3. Rural Water Supply Design Manual. Volume Rural Water Supply. Construction and Installation Manual. Volume II. 5. Rural Water Supply. Operation and Maintenance Manual. Volume III. 6. Groundwater of the Philippines. C. Selected Working Papers 1. Papers prepared by RWDC: (a) RWDC Progress Report, March 31, (b) Bid Documents for the Delivery of Pipes, Fittings and Pumps (2 Volumes). (c) An Analysis of the Water Supply Situation in the Municipality of Pandi, Bulacan.

71 -67 - ANNEX 8 Page 2 (d) Rural Water Supply - Socioeconomic Aspects. (e) Philippines - Rural Water Supply and Sanitation Program. Proposal for a Coordinated Training System. (f) National Government Accounting System - on Audit. Consultant, Commission (g) Compilation of Issuance on Foreign Assisted Projects. (h) Guidelines and Procedures for Warehousing and Shipping of Water Supply Materials. (i) Implementation of Contract of Agency Between the Electric Cooperative and RWDC. (j) RWA Accounting Manual. (k) Contract of Loan RWDC/RWA. 2. Papers prepared by MPWH: (a) Prequalification Documents for Supply and Delivery of Equipment and Vehicles. (b) Contract Documents for Supply and Delivery of Equipment and Vehicles. (c) Consultants' Terms of Reference. (d) Design of Maintenance Workshop (e) Survey and Design Manual (f) Implementation Plan - Rural Water Supply 3. Papers prepared by Bank staff: (a) Design Criteria on Pourflush Waterseal Latrines (b) First Rural Water Supply and Sanitation Project Training Program - June (c) Philippines - Vocational Training Project - March (d) Financial Working Papers.

72 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT RURAL WATERWORKS DEVELOPMENT CORPORATION ORGANIZATION CHART BOARD M OF DIRECTARS BOARD SECRETARIAT GENERAL MANAGER ASSISTANT GENERAL MANAGER I- II 'I MANAGEMENT l STAFF l LEGAL STAFF ENGINEERING ADMINISTRATION AND OPERATIONS DEPARTMENT FINANCE DEPARTMENT DEPARTMENT ENGINEERING MAT ERIALS ADMINISTRATION FINANCE HUMAN RESOURCE PROJECT FRANCHISES AND DIVISION DIVISION DIVISION DIVISJON l DEVELOPMENT MANAGEMENT REGULATION DIVIO DDIVISION DIVISION DIVISION VVo,Id Bank 23633

73 - 69 _ PHILIPPINES RURAL WATER SUPPLY AND SANITATION PROJECT SHALLOW WELL WITH HANDPUMP CAST IRON HANDPUMP 1."O G.I. NIPPLE THREADED BOTH ENDS 2"OX VA" e G.1. REDUCER 4'0 CONCRETE PLATFORM 2" 0 X 2.00 M. SHORT G.1. PIPE THREADED BOTH ENDS 2" 0 PVC PIPE x WVATE R TAEBL E 2"0PVC COUPLING, THREADED ONE END 2" 0 PVC SCREEN (APPROX. 5'-0" TO 10'-0" LENGTH) 2" 0 PVC SHORT PIPE World Bank-23717

74 PHILIPPINES RURAL WATER SUPPLY AND SANITATION PROJECT POUR FLUSH TOILET 3. USE AVAILABLE LOCAL MAERIALS FOR ROOFING:r. SLATS _ 3'' X 3'' POST ~PA PLAN. DOOR PANELS EARTH FILL 3' X 3' POST TOILET BOWL " SIDING H OTREST I F F O U NDO j C J's NECESSARY- -TIMBER OR BAMBOO SLATS FOR REINFORCEMENT 2'-6' o L S COULD BE LINED WITH BAMBOOS, o.^ ] 8 WOOD, DRUMS, OR CLAY RINGS C_ World Bank 23718

75 PHILIPPINES FIRST RURAL WATER SUPPLY AND SANITATION PROJECT RURAL WATER SUPPLY COMPONENT PROJECT DEVELOPMENT FLOW CHART Pr S ochnicalaeietence r lt.rc F-sibil ty As. Study stnc d Esebiiy.. Asstnc Stuy dmniereio Engieerig Deign, Engineerin,g Design, EnieeigDein R-cicv/Sutv...isio Reoe,ir/Supenyii- Reve/Sprvso n MWSS _Adn LWUA introstrunturs I ntreetrootvre I PunS~~~~~~Ii,,g Jsoer MPVc 1~~~~~~~~~4 NEA,MLG,MHS Dcerstinn end CW etc, ECPundeo -M ject PrO Co I ectiaon RW. Moninor,nu jotn Coloonion Suen" i t I j 8 Op { ratlo f ctnea and t MLC 2 MH, WUA nd RWD - contructcn ef MPW [*- - f CnsEr_ctzon iworld S nkm23883 Rn v iic C - ia -- W erwnoru DvicOnren, Coro - Cn -Ir - Gn M SS M- Meynlt-on W-r-krccorkSyond,r,n M-b- - dload n toi the g F*iid Otioc. r L UA - og MWSS Ur Fkn ing AdminiFnrngiOn MPW ided.. MLGCD. MHD MOH. FSOC. MEC NEA - Nttoroi.tncr,tjr., - ion A e Mengtu r ot Eetr-- Cnop. MPAH M~initry ft Pubic Worneond H,gh.WOy Meoero W.-o D-ieni MLG _ Ministry yt Loot Dornmn Ch--me ft KtEbts-g Bareng.y MOH - Minisnry on H-meth Chairme of A... f Bgy. Ogpt.oIn EC E- icric Coop-rei, 11 Tn ne thenyd int Rur W.ter end EneinAsc ieon in ho tutr- PO Proiei1 Engineer Office. PWWC Nroc'inci Wat,r.., C n- RWA - Itu,Wen.tr,A ietn,, ny.dbk 23683

76 WMautnuturig PHILIPPINES FIRST RURAL VIATER SUPPLY AND SANITATION PROJECT PROJECT IMPLEMENTATION ACTIVITY BAR CHART IBRD FY83 IBRD FY84 j IRD FY85 18RD FY 86 i IBRDF8 ACTIVIIY J-- A E- A; JFMAM ASON[JF H - M A M SONDJFMAM R seoif ess Committee tuieetii _ ciuplementl- f Mi,t.l P Dinft Di-umn Repit m APreliminay agd Dtaile EniEern RWSA Formation -~i-is INIDI ft-.s I ITA I-I I: I jr 1. = LeuO MPI Toilet C-estrute~Miri an Delicer Oger-tir F OM_iF a ; Stabfiligaof Ponds (,,t M-119 LBid Ript Worsho ConstrutionarOerto Research ian adeveu,inen E,ri.-mij Bid Adve,tatis--t (on bim~ Operation LX ecel: and ~ MatintdEnance,,, Tahilnoe C-un-oi CWsuterOahcy Servceias. RVVSA F-ati.n 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Wci non 3P

77 PHILIPPINES RURAL WATER SUPPLY AND SANITATION PROJECT MINISTRY OF HEALTH PROJECT MANAGEMENT OFFICE PROJECT IMPLEMENTATIONl! AND REVIEW COMMITTEE l POECT MANAGEMENTOFFICE 1 1 ~~~~~~(PROJECT MANAGER) NATIONAL TECHNICAL COMMITTEE PLHANNHINGRANDTRUCTURPENT ADMINIS TRATIVE CONSTRUCTION MANAGEMENT (DEPUTY PROJIECT MANAGER) ( ADMINSTRTIV VSOFFCR (DPT PRJC MANAGER) r ELTH INFRASTRUCTURE ACCOUNTING l CONSTRUCTIONCOTLX IUN ITlXUNIT lxu NI Tl l RURAL l REODl COSRCINEAUTN/ SNTTION PROJECT! MNTRN J PROGRAMMIG 1_UI UN IT 2 PERSO NNE L _ TRAINING RESEARCH l UNIT ~~~~~~~~~~~~~~~~~~~~~World Bank-23634

78

79 1;6' CLASSIFICATION OF PROVINCES 120' 124' 128' BY GEOGRAPHICAL REGIONS PHILIPPINES NCR NATIONAL CAPITAL REGION FIRST RURAL WATER SUPPLY I ILOCOS VI WESTERN VISAYAS 9FRT I UALW Ihloos ERSP Y Norte 37 Aki n AND SANITATION PROJECT 2 Abra 38 Capiz 20' 3 llloaos Sur 39 Antique 8 4 Mountain 40 Iloilo 20' Regional boundaries S La Union 41 Negros Occidental Provincial boundaries 6 Banguet VIICENTRAL VISAYAS ' Provinces with waste stabilization 7 Pangasinan ponds 42 Cebv L/%LCL CAGAYAN VALLEY 43 Negros Oriental 8 Batanes 44 Boaol 9 Ra niall (Typel 9 Cagasyan 45 Siquijor P7 A. 7 Type A Wet- Rainy throughout the year 10 Kalingo-ApaYao VIIIEASTERN V ISAYAS [ -J with at most 1.5 dry months Qo< Isahela NSmor Ifugao Samnr 47 Sower II thern -7 Type B, Humid- Rain evenly distributed throughout 13 Nueva Viscaye 48EsenSaefI 48 E.stem Samo, he year with at ~~~~~~~~~~~~0.333 most 3 dry months 14 OuirFno 49 Leyrte no> TIm CENTRALUZON 50 Southern Leyte / Type C, Moist- Rain sufficiently distributed with 15 Noava most 4-5 dry months 16 Tarlac DE WESTERN MINDANAO2 17 Zomboles 51 Zamb o.ga del Norte I0600 E Q Pampanga 52 Zamboanga del Sur Type D, Dry - Rain not sufficiently distributed 19 Bulaoan 53 Besilo, I '\4 f L z with at most 6 dry months 20 Bot-an 54 Sulu l 00s n z TV SOUTHERN TAGALOG 55 Tw,tami / - - Type E, Arid - More dry than wet months, at most En 2' ~~~~~~~~~~~~~~~~~~~~~~at 21 Ouezon XNORTHERN MINDANAO '23. z i there are 4-5 wet months 22 Rizol 56 Surigaodel Nurse f Q ' 23 Cavity gu Type E, Barren - Deficient rainfall with less 16' Rombatnga59 Loguna 58 Aguson Misamis del Oriental Norte NAO 15 than 3 wet months Batawong Marinduqtue Mavas Sarmis Ode OnNtdessat > Mind-arOrientel 61 Bukidnan 62 Agun delsur 7,j 16 E-= Note, Nueher of dry mon-ths 28 Mind-ro-nedental 62Auo elsrn O 'Y 1 s' Nuwbor ot wet month 29 Romblon X[SOUTHERN MINDANAC, 30 Palawen 63 Sortgao del Sur \ 2~1 2ore onoo ol Y BICOL 64 Devaon Oriental Nr>2Note: 400 communal faucet water supply systems 31 Comarines Nurse 65 Davao Manila and 10,000 wells are provided throughout 32 Cowrarines Sur 66 Davao de,l S-r / > 33 Catonduanes 67 South C.fabatohats -"lf4i/ the country 34 Alboy XUCENTRAL MINDANO -", \ 4t > 70 North Cotahato t,7t~,. if P/I 5'\ 71 Magutndanao N 27 N - 72 Sultan Kodarat I > "i ( - \ a ara <~ 2 8! Sssi8&NS s > -7 Kiloenters 0 too '! ' ~~~~~~~~> 12' Miles 0 1t ' -5>> ' -'<A 5/ A / 22 C f' -30 -¼~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~8", '2-n o 11' X ;X/ 2 l / u g/ gt 44 ; ~~~~~ ~~? - - CHIN5, 62, CHI NA,jO'7 r 'PHILIPPINES V.. ACgAUii -(rz'>. BRUNEI,N \ MALAYSA SThi FEE ' Z 35 Sorsagon 68 Laneo del Norte r < if\ 36 Mashate 69 Loeeo del Ser 3 ~ -/-2-.hmap ha bee prepared by the Worldectan steff e-olsioely frb ehveooewve w - of the red.er of the rport to wh,oc it. uttaohed. The de-wrai-v- sod-ndth 2 1 voondarieo t sed oho vn 00 thw map do nor <msph' wt toe and P part orhe r,pmana WorlPt t-he afiftiotaso amy jsdgme-t an the legal stao of any territory or any endorsewent or o I b-d-i- ' ' 124' SEA