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Philippines  
Rural Water Supply Project (IV)  
 
 
 
1 .  P r o j e c t  P r o f i l e  a n d  J a p a n ’ s  O D A  L o a n                                             
 
   
Location Map of the Project  Level I System (Deep Well) 
 
 
1.1. Background 
 
At the end of 1987, the water supply coverage rate was only 63% in the Philippines (53% in rural areas), 
and approximately 19.6 million people did not receive public water supply services. 
The Government of the Philippines (GOP) established the Rural Water Supply and Sanitation Master Plan 
in 1982 in order to provide a safe and reliable water supply system to most households in the country. Under 
this master plan, 10 foreign-assisted projects, including RWS I, RWS II and RWS III projects financed by 
Japan’s ODA Loan, were carried out in the1970s-1980s. However, need was still evident, and in 1987 the GOP 
revised the master plan for the years 1988-2000. This master plan outlined a program for increasing the water 
supply coverage rate for the entire country from 63% to 79% by 1992. 
In March 1989, the GOP enacted Republic Act 6716 (the Accelerated Water Supply Program), the 
objective of which is to provide an adequate water supply system in rural areas, and thereby improve living 
conditions. Republic Act 6716 set a goal of constructing or rehabilitating a total of 100,000 Level I (point 
source) systems
1, which would provide at least one water supply system in each rural community, or 
“barangay.2” 
This project, the Rural Water Supply IV Project (hereafter refer to as RWS IV), was a part of Republic Act 
                                                   
 
1 In the Philippines, water supply facilities are classified into three groups: 
  Level I (Point Source): A Level I system comprises a protected well or a developed spring with an outlet, but without a distribution 
system. This type of system is generally suited to rural areas, where the houses are scattered. A Level I facility normally serves 15 to 
25 households, and its range must not extend more than 250 meters from the farthest user. The yield or discharge is generally 40 to 
150 liters per minute. 
  Level II (Communal Faucet System or Standposts): A Level II system comprises a source, a reservoir, a piped distribution network 
and communal faucets, which are located at not more than 25 meters from the farthest house. This system is designed to deliver about 
40-80 liters of water per capita per day to an average of 100 households, with one faucet per 4 to 6 households. This layout is  
generally suited to rural and urban fringe areas, where houses are clustered densely and justify insertion of a simple piped system. 
  Level III (Waterworks System or Individual House Connections): A Level III system comprises a source, a reservoir, a piped 
distribution network and household taps. This system is generally suited for densely populated urban areas. 
2 A barangay is the smallest unit of a community in the Philippines. A barangay normally consists of 50~100 households. 
Report Date: July, 2002 
Field Survey: July, 2001

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6716, and involved the construction and rehabilitation of a total of 17,500 Level I facilities in the areas of 
Visayas and Mindanao, where the water supply was particularly poor. 
 
1.2. Objective 
 
To improve the living conditions of people in the areas of Visayas and Mindanao by providing an adequate 
supply of safe, potable water. 
 
1.3. Project Scope 
 
 The project consisted of the following components: 
 
1. Construction and rehabilitation of 17,500 Level I systems, which entails the construction of 6,500 
shallow wells and 8,500 deep wells; development of 500 springs; and rehabilitation of 2,000 deep 
wells 
2. Construction of 17 workshop buildings 
3. Consulting services for support of implementation agency and construction supervision 
 
1.4. Borrower/Executing Agency 
 
    The Government of the Republic of the Philippines/ Department of Public Works and Highways (DPWH) 
 
1.5. Outline of Loan Agreement 
 
Loan Amount/Loan Disbursed Amount   5,080 million Yen/3,176 million Yen 
Exchange of Notes/Loan Agreement  
October 1989/February 1990 
Terms and Conditions 
  Interest Rate 
  Repayment Period (Grace Period) 
  Procurement 
 
2.7% 
30 Years (10 Years) 
General Untied Loan 
( Partially Untied for 
 Consulting Services) 
Final Disbursement Date May 1995

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2 .  R e s u l t s  a n d  E v a l u a t i o n                                                          
 
2.1. Relevance 
 
The GOP placed emphasis on developing a water supply system and implemented 10 foreign-assisted 
projects in the 1980s. However, the gap in living standards between urban and rural areas was still wide at the 
end of that decade. Under the circumstances, the GOP enacted Republic Act 6716 in order to promote rural 
water supply projects, and thereby improve public sanitation, and raise the living standards of people living in 
rural areas. RWS IV followed RWS projects I~III and, as a part of Republic Act 6716, was consistent with the 
government policy. Furthermore, the project intended to meet the essential needs of people living in the project 
area, a rural area where living conditions were particularly poor. 
The Medium-Term Philippine Development Plan for 1999-2004 also addresses the need for safe water in 
rural areas. It sets targets, defined by the number of people served (4.39 million people are slated for service 
coverage in rural areas), increasing incrementally over a five-year period.  The project objective is still 
relevant. 
 
2.2. Efficiency 
 
2.2.1 Project Scope 
 
A total of 17,500 Level I systems were originally slated for construction and rehabilitation at the time of 
appraisal, whereas 17,556 Level I systems were developed under the project. There was also a modification in 
the number of target provinces. While the project originally targeted 40 provinces, it was implemented in only 
33 provinces3. The main reason for this modification was that the ADB4-assisted Second Island Provinces Rural 
Water Supply Sector Project was approved and implemented during the same period, and, accordingly, seven 
island provinces 5 that were originally under the scope of RWS IV , were covered under the ADB-assisted 
project. This modification helped augment implementation efficiency. 
The number of workshop buildings increased from 17 to 47, due to the establishment of new District 
Engineering Offices6(DEOs) within DPWH. The workshop buildings served as the storage and repair shop for 
drilling equipment and tools during the project implementation. Nearly all of the new DEOs needed workshop 
buildings for repairing and replacing worn-out equipment, so the additional 30 workshop buildings were 
indispensable to facilitate the implementation. 
 
2.2.2 Implementation Schedule 
 
Originally, the entire undertaking was scheduled for a period of 32 months, but this was extended to 59 
months, because of delays in the procurement and delivery of materials. During implementation, the 
performance of some equipment was poor, requiring repairs or replacement. Certain parts, such as bearings, 
were also continuously wearing out. Some of the barangays were located in remote areas, making it difficult to 
deliver materials or to replace worn-out machine. In order to overcome the delays, the implementation agency 
took various actions, including procurement of additional equipment, vehicles and spare parts, and construction 
                                                   
3 Even though the target number of provinces was reduced, the original number of 17,500 Level I systems was not changed. The 
targeted barangays where Level I systems were constructed were flexibly selected by the local government units (LGUs) during the 
project implementation. 
4 ADB: Asian Development Bank 
5 Those 7 island provinces were Negros Occidental, Negros Oriental, Siquijor, Surigao Del Norte, Basilan, Sulu and Tawi-tawi. 
6 A DEO is the smallest unit of the DPWH office, which was responsible for actual implementation of the project within each district. A 
total of 41 new DEOs were established during the project implementation.

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of additional workshop buildings. 
In addition, unforeseen or fortuitous events such as typhoons, earthquakes and discovery of high iron 
content in water caused delays. 
 
2.2.3 Project Cost 
 
The actual project cost was 4,306 million Yen, approximately 36% less than the original estimate of 6,773 
million Yen. This cost under-run was attributable to a significant reduction in procurement costs, which 
originally was estimated at 3,153 million Yen, and was contained to 2,142 million Yen, representing a reduction 
of approximately 32%. Competitive bidding enabled the executing agency to procure materials at much lower 
prices. Depreciation of the Peso (from 1 Peso=6.2 Yen [1989] to 3.7 Yen [1995]) also contributed to the 
reduction in the project cost. 
 
2.3. Effectiveness 
 
2.3.1 Served Population and Water Supply Rate in the Project Area 
 
The civil work of RWS IV started in January 1991 and was completed in December 1995. As shown in 
Table 1, the served population increased by 4,380,000 people between 1990 and 19957, raising the water supply 
rate from 56% to 71% in the area. 
 
Table 1 Water Supply Rate in Visayas and Mindanao, 1990 and 1995 
 1990 1995 
Rural Population (thousand) 17,552 19,918 
Served Population* (thousand) 9,783 14,163 
Water Supply Rate (%) 56 71 
     S o u r c e :  D P W H  
* Population served by Level I system 
 
The project aimed to improve services for 427,500 households (2,565 thousand people) in Visayas and 
Mindanao by constructing and rehabilitating 17,500 Level I systems.  Under the project, 17,556 systems were 
constructed or rehabilitated (15,560 Level I systems constructed and 1,996 systems rehabilitated). It is, thus, 
calculated that upon the project completion, roughly 428,900 households (2,573,000 people) directly benefited 
from the project by gaining access to Level I systems
8. Therefore, it can be estimated that the project initially 
contributed to approximately 59% of the entire newly served population, covering 2.5 million people in the 
area.  
 
2.3.2 Utilization Rate of Level I System 
 
With the issuance of NEDA Board Resolution No. 4 in 1994, the responsibility for developing and 
monitoring water supply facilities was transferred from DPWH to the local government units (LGUs). However, 
LGUs have not yet established a monitoring system to identify the current condition of each Level I systems, 
and it was impossible to obtain current utilization rate of the facilities constructed or rehabilitated under the 
project. 
An interview survey was conducted for this evaluation in 110 barangays of 11 municipalities in the 
                                                   
7 The number here represents the population of Visayas and Mindanao, excluding the population in urban areas. 
8 A Level I system normally serves around 15 to 25 households. In this case, the basis of calculation was taken from the apprais al data; 
24.43 households/Level I system and 6 persons/household.

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Province of Cebu9 in 2001 to examine the achievements and impacts of RWS IV . A total of 107 respondents 10 
were interviewed, and 75% of the respondents said that the Level I systems constructed or rehabilitated under 
RWS IV were operational, while 25% said that they were not operational because of malfunctions in the wells 
and poor water quality. 
Japan International Cooperation Agency (JICA) also conducted a survey on the current condition of Level 
I systems between 1998 and 2000 in 18 provinces in Visayas and Mindanao, which were covered by RWS IV
11. 
The survey produced similar results to the above interview survey. According to the JICA survey, in the 18 
provinces there were a total of 66,301 public Level I systems, of which 49,835 were considered safe, 
functioning sources. The overall utilization rate of the public Level I systems was approximately 75%, th ough 
the utilization rate in each province varies from 45% to 95%. Most of the unsafe, or non-functioning Level I 
systems were shallow wells and open dug wells. These facilities were normally located near potential pollution 
sources, such as unsealed toilets and stagnant drainage trenches, and hence were easily affected. 
Water quality is one of the crucial factors affecting the utilization rate of Level I systems. Currently, the 
provincial health offices (PHOs) in each province are monitoring the water quality of Level I systems. Table 2 
shows the results of monitoring activities conducted by the PHO of Cebu Province between 1995 and 2001. 
 
Table 2 Bacteria Content in Level I Systems, 1995~2001 
Year Number of Level I 
Systems 
Number of Samples 
Examined 
Number of Positive 
Results 
Rate of Bacteria 
Content (%) 
1995 4,121 406 339 83 
1996 4,079 682 498 73 
1997 4,495 753 443 59 
1998 4,365 711 428 60 
1999 4,555 1,124 689 61 
2000 4,355 935 755 81 
2001 4,296 949 715 75 
  Source: PHO of Cebu Province 
 
On average, 70% of the water samples tested  showed positive for contamination, indicating that the 
majority of examined Level I systems were not potable .  Low water quality is likely the cause of 
non-operation of Level I systems, especially in urban areas, which are more subject to the contamination, 
although the PHOs do chlorinate contaminated water as soon as the water tests positive.  
Since there is no available data for each Level I system constructed or rehabilitated under RWS IV , the 
current utilization rate of all such systems is difficult to evaluate. Based on JICA’s survey and the interview 
survey, however, it can be assumed that, on the whole, around 70% of the Level I systems of the project are 
currently utilized. 
The utilization rate of the Level I systems in the 33 provinces has not been monitored since the completion 
of the project, and consequently there is a compelling and immediate need for implementing a monitoring 
system.  Also, it is important to examine the water quality issue in reviewing the level I systems constructed 
under RWS IV .   
 
2.4. Impact 
 
Expected consequences of the project include improvement of public sanitation (prevention of 
water-borne diseases) and effective utilization of the work force as a result of the reduction in time needed to 
                                                   
9 Since the project sites were scattered all over Visayas and Mindano, Cebu Province was selected as a representative province i n terms 
of economy and industry. 
10 For the survey, the barangay captain or another barangay official was interviewed since it was assumed that these representatives 
would know more about the history and background of the Level I systems constructed and rehabilitated under RWS IV project. 
11 “The Study on the Provincial Water Supply, Sewerage and Sanitation Sector Plan in the Republic of the Philippines” 2000, JICA

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fetch water from the source.  However, it was rather difficult to evaluate these impacts as a whole.  Here, the 
results of the interview survey conducted in 110 barangays in the Province of Cebu are shown as a reference for 
the impact of the project. 
 
Figure 1 Average time taken to carry water
           Figure 2 Impact on overall 
from the Level I system to each household           sanitation and water-borne disease  
 
As shown in Figure 1, the average time needed to fetch water was reduced significantly. 77% of the 
respondents (representing 82 barangays 12) said that after the project it became possible to fetch water from 
point to point in less than 10 minutes. According to the aforementioned survey, 84% of the respondents 
affirmed that the project contributed to the reduction of women’s working time. 53% observed that the number 
of residents affected by water-borne diseases had decreased, and 71% said that overall sanitation in the 
barangay had improved after the project (Figure 2). 
Overall, 62% of the respondents were either satisfied or very satisfied with the project. The main reasons 
for the satisfaction were the improvement of water quality, and availability and accessibility of water. On the 
other hand, 38% of the respondents answered either ‘’less satisfied’’ or ‘’not satisfied’’ with the project because 
the water was not potable (59%) or the facilities were malfunctioning (41%). 
There has been no negative environmental impact reported so far. 
 
2.5. Sustainability 
 
In rural area, the operation, maintenance, management and improvement of a public water supply system 
are responsibilities discharged by the users through the Barangay Waterworks and Sanitation Association 
(BWSA13). Development of such an organization is, therefore, a major determining factor in the success (or 
failure) of the operation and maintenance of a water supply system. 
 
2.5.1 BWSA 
The formation of BWSAs was primarily the responsibility of the District Engineering Office (DEO) under 
DPWH.  During project implementation, DEOs provided assistance in the formation of BWSAs, including 
training programs for operation and maintenance (O&M) along with O&M manuals written both in English and 
Tagalog. 
                                                   
12 Each respondent described the general condition of the barangay that she or he represented. 
13 Local residents (beneficiaries) make up the membership of each. The BWSA collects water fees from its members and appropriates  
funds for the operation and maintenance of the facilities. 
0
10
20
30
40
50
60
70
80
90
100
＜10 11 ～20 21 ～30 ＞30
Time (minu tes )
Before the project
After the project
0
10
20
30
40
50
60
70
80
90
100
Improved No Change Got Worse
Overall Sanitation
Water-Born Disease

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Nevertheless, according to an investigation14 on the status of BWSAs conducted in 40 barangays in the 28 
provinces of Visayas and Mindanao during project implementation, only 30% of bangarays organized BWSAs. 
Of that number, only 17.5% were functioning. Consequently, the majority of the barangays (70%) did not form 
any organizational structure. As a result, non-payment of dues by their members, and lack of their technical and 
financial capability to maintain the facilities were commonly observed. 
One of the reasons that the organizing of BWSAs was weak during project implementation was that, with 
limited time and human resources, DEOs had to prioritize constructing Level I systems and had little time left 
for assisting in the formation of BWSAs. Moreover, follow-up activities to strengthen the Association has not 
realized since the project completion. 
The JICA Survey mentioned earlier also reported that only a few BWSAs in the 18 provinces of Visayas 
and Mindanao were organized.  
 
2.5.2 Local Government Units 
In the absence of BWSAs, the responsibility for the operation and maintenance of the water facilities rests 
with the barangay.  Sometimes the Barangay Councils (community leaders) try to settle the problems, and 
villagers make donations to repair the facility, as problems arise.  In most of the barangays, however, no water 
charge payment is collected, and accordingly, there are no funds for the repair of the facilities. Barangays rely 
on the Local Government Units (LGUs) for financial and technical assistance. However, LGUs generally lack 
sufficient funds and technical capacity. Although the issuance of NEDA Board Resolution No. 4 in 1994 
mandated that LGUs play a larger role in planning and implementing water supply and sanitation (WA TSAN) 
projects, including assisting barangays in O&M, the institutional capacity of LGUs is limited, and a system to 
support O&M by barangays has not yet been established. 
Consequently, a number of malfunctioning facilities constructed under the project have been abandoned. 
For instance, the interview survey mentioned earlier shows that in case of malfunctioning facilities, 53% of the 
barangays needed technical assistance to make repairs, 38% of which took no corrective action in that regard. 
Given the current condition of the O&M system, the utilization rate is expected to decrease in the near future. 
There is a definite need for the immediate reestablishment or reinforcement of the O&M organizations. 
 
3 .  L e s s o n  L e a r n e d                                                                     
 
Regionally dispersed projects particularly require careful attention to develop self-sustaining capacity at 
both community and institutional level.  It is essential that users participate in project planning process, being 
fully informed of the cost and benefits of the project, including their responsibilities and of limitations of the 
system, which allows communities to make rational decisions whether they accept the project.  This process 
should not be neglected, since it plays a significant role in helping develop user’s sense of ownership.  
Building institutional capacity, on the part of local governments, to support the users associations is also 
necessary. 
 
4 .  R e c o m m e n d a t i o n s                                                                  
 
The strengthening of the institutional capacity of LGUs is indispensable for the proper organization of 
BWSAs. The Government, specifically the Department of Interior and Local Government (DILG), should 
provide training programs to LGUs in order to improve the quality of its human resources. In the meantime, the 
LGUs should seek means to provide long-range training programs for BWSAs, by cooperating with DILG and 
NGOs. 
 
                                                   
14 An investigation was conducted by consulting agencies that supported implementation of this project. They conducted a 
questionnaire survey in 1994 to measure the status of BWSAs.

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Comparison of Original and Actual Scope 
 
Items/Activities Original Scope Actual Scope 
I. Project Scope 
A. Construction of wells 
1. Shallow wells 
2. Deep wells 
B. Development of springs 
C. Rehabilitation of wells 
Total 
D. Construction of Workshop Buildings 
E. Procurement of equipment 
F. Consulting service 
1. International 
2. Domestic 
 
 
6,500 wells 
8,500 wells 
500 springs 
2,000 wells 
17,500 Level I systems 
17 Buildings 
Various 
 
53 M/M 
190 M/M 
 
 
6,556 wells 
8,397 wells 
607 springs 
1,996 wells 
17,556 Level I systems 
47 Buildings 
Various 
 
72.5 M/M 
226 M/M 
II. Implementation Schedule 
A. Preliminary and detailed engineering 
B. Formation of BWSA 
C. Procurement and delivery of materials 
D. Construction and installation of systems 
E. Consulting services 
F. Turn-over of the systems to the 
respective beneficiaries 
G. Training 
H. Completion of construction 
 
 
Oct. 1989 – June 1992 
Jan. 1990 – June 1992 
Jan. 1990 – June 1991 
Apr. 1990 – Dec. 1992 
July 1990 – Dec. 1992 
July 1990 – Jun. 1992 
 
Oct. 1990 – Dec. 1991 
Dec. 1992 
 
Jan. 1991 – June 1994 
Jan. 1991 – Dec. 1995 
July 1990 – May 1995 
Jan. 1991 – Dec. 1995 
Feb. 1992 – Apr. 1995 
July 1991 – Feb. 1996 
 
Sep. 1992 – Dec. 1993 
May 1996 
III. Project Cost 
 Foreign Currency     
 Local Currency 
 Total 
 ODA Loan Portion 
 Exchange Rate 
 
3,389 mil. Yen 
                546 mil. Peso 
6,773 mil. Yen 
5,080 mil. Yen 
1 Peso = ¥ 6.2 
(February, 1989) 
 
2,362 mil. Yen 
452 mil. Peso 
4,306 mil. Yen 
3,176 mil. Yen 
   1 Peso = ¥4.3 
(Weighted Average 
during 1990 and 1995)

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Independent EvaluatorIndependent EvaluatorIndependent EvaluatorIndependent Evaluator ’’’’s Opinions Opinions Opinions Opinion on  on  on  on Rural Water Supply Project IVRural Water Supply Project IVRural Water Supply Project IVRural Water Supply Project IV    
 
Wilfredo B. Carada 
Professor of Development Management and Governance, 
University of the Philippines Los Banos    
 
1. 1. 1. 1. RelevanceRelevanceRelevanceRelevance 
 
The Rural Water Supply Project (RWS IV) is relevant from the perspectives of the target group 
and the development policy of the Philippines both at the time of the project’s appraisal and at 
present. 
Like the previous development plan, 
the Philippine Medium Term  Development Plan for 
2001-2004 has included the provision of safe, potable water to 90% of its population as one of its 
priorities for year 2004. For majority of the household, especially those in the rural areas of 
Visayas and Mindanao, access to potable water remains a priority. 
Although the project scope has been changed, the project remained relevant both to the target 
group and the development priorities of the recipient country. It still meets the overall project 
objectives. 
 
2. Ef2. Ef2. Ef2. Efficiencyficiencyficiencyficiency . 
The project is efficient in terms of total cost vs. number of systems constructed or rehabilitated 
(originally, the total cost was 6,773 million Yen for 17,500 Level systems but actual cost was 36% 
lesser – 4,306 million Yen covering 17,556 systems). It was not efficient in terms target 
completion time – as planned, project duration is supposed to be 32 months but it was extended 
to 59 months. 
 
3. 3. 3. 3. EffectivenessEffectivenessEffectivenessEffectiveness . 
The effectiveness of the project is indicated by: 
a. 17,556 Level I systems were constructed and rehabilitated as against 17,500 
programmed; 
b. Roughly 428,900 households gained access to Level I system, surpassing the original 
target of 427,500 households; and, 
c. More systems, 75% of those surveyed, were operational while 25% are either not 
functioning or delivering poor water quality (70% of samples taken were contaminated). 
 
 4.  4.  4.  4. ImpactImpactImpactImpact 
The project has generated direct-preliminary impacts. As reported, the average time used to 
fetch water from the source (level 1) to each household has been lessened, reducing women’s time 
for fetching water.  Time saved could be used for economic and social activities. 
Notable impacts of the project are the decrease in the incidence of water-borne disease and 
improved sanitation of the recipient barangays 
In the short run the project goal has been achieved.  In the long run, however, generating and 
sustaining lasting impact is threatened by the poor organization and functionality of Barangay 
Waterworks and Sanitation Association, the village-based organization which is tasked to 
operate and maintain the system.
    
    
5. 5. 5. 5. SustainabilitySustainabilitySustainabilitySustainability . 
Sustainability is threatened by the fact that only 30% of the barangays surveyed have organized 
Barangay Waterworks and Sanitation Associations (BWSAs), the organization primary tasked to

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operate, maintain, manage and improve the system. Moreover, only 17.5% of the BSWAs 
organized are functioning.  Consequently, dues of members are not collected thus the financial 
capacity of the organization to maintain the system has been adversely affected. 
 
Lessons Learned.Lessons Learned.Lessons Learned.Lessons Learned.    
Some lessons learned from the project include, 
(a) Beyond rhetoric, a genuine donor coordination is needed to avoid project overlaps 
that could cause project re-programming and delays (overlap with the ADB’s Second 
Island Provinces Rural Water Supply Sector Project resulted into project modification and 
delay); 
(b) Authentic competitive bidding helps reduce project cost; 
(c) To be relevant, efficient and effective is challenging but to create impact and make 
the project sustainable is more difficult; 
(d) Institution building is a key to project sustainability; and. 
(e) A systematic evaluation of project relevance, effectiveness, efficiency, impact, 
sustainability and equity should be in place as early as the project planning stage. 
 
RecommendationsRecommendationsRecommendationsRecommendations . 
(a) Build the capability of BWSAs to manage and maintain the project; 
(b) Mobilize the local government unit or a non-governmental organization to assist the 
BWSAs operate and maintain the system; and, 
(c) Share with the Local Planning and Development Office the responsibility to monitor and 
evaluate the project.