PHILIPPINES: Support PSP in Local Government Unit (LGU)'s Water Supply and Sanitation System in key Tourism destinations

Water supply and sanitation (WSS) services in Bohol and Siargao require major improvement. Both are experiencing water shortages, especially in the dry season. Both provinces are also tourist destinations, and the continuous increase in the number of tourists creates additional stress on WSS services. The areas are prone to typhoons and flooding, and WSS infrastructure needs to consider climate resilience in the design. 
This activity was designed to assess the current WSS situation in the two provinces and identify potential investment options. PPIAF looked at low-cost solutions with technical and financing options, including the possible participation of the private sector. PPIAF assisted Local Government Units (LGUs) in identifying and assessing potential solutions to their WSS challenges (LGUs also had old proposals which were used in the study). It looked at water and sanitation demand, project design and cost to deliver WSS services, institutional set-up to implement projects, and willingness-to-pay of the population. The financial assessment looked at the financing and funding requirements of the proposed WSS projects, updated tariff calculations, and proposed cost recovery schemes.     
PPIAF proposed WSS projects that will help address the challenges in Bohol and Siargao and eventually result in improved and secure WSS services. The latter is critical for the economic development of these tourist destinations and the human development of their populations (e.g., lower waterborne diseases). 
PPIAF enabled LGUs to enhance old project proposals and consider new projects that will help address the WSS challenges in their areas. It confirmed technical and financial viability of these projects and made recommendations on strengthening project design. LGUs also learned about PPPs in the sector and how best to prepare projects for private sector participation. The World Bank is preparing to finance the design and construction of the bulk water supply project.