Work programme Increasing Financial Flows for Urban Sanitation Case study Baguio City, The Philippines Prepared by: Angelina Victoria M. Ferrer I Table of Contents List of Figures .............................................................................................................................................................. i List of Tables................................................................................................................................................................ ii Part A: Background on the Philippines Geography, Government, Population .......................................................................................................... 1 Economy ....................................................................................................................................................... 2 Water and Sanitation .................................................................................................................................... 4 Status of Access ................................................................................................................................... 4 Institutional Responsibility .................................................................................................................... 8 National Level Financing Mechanisms ............................................................................................... 11 Part B: Background on Baguio City Geography, Population Profile ................................................................................................................... 13 Economy ..................................................................................................................................................... 16 Revenue Sources ....................................................................................................................................... 18 Part C: Financing Mechanisms for Sanitation in Baguio City Section 1: Sanitation in Baguio City .......................................................................................................... 19 Section 2: Financing of Sanitation in the City ........................................................................................... 24 Section 3: Institutional and Policy Aspects ............................................................................................... 28 Part D: Analysis ........................................................................................................................................................ 33 References ................................................................................................................................................................ 36 Appendices ............................................................................................................................................................... 38 II List of Figures Figure 1. Map of the Philippines (National Government Portal, 2017) ..................................................................... 1 Figure 2. Poverty Incidence in the Philippines (PSA, 2015b) ................................................................................... 2 Figure 3. Second Quarter 2017 GDP Growth (NEDA, 2017b) ................................................................................... 3 Figure 4. Share of Tourism to GDP (PSA, 2017) ....................................................................................................... 4 Figure 5. National Agencies with Clear Sanitation Mandates (DOH, 2010) ........................................................... 11 Figure 6. The Unified Financing Framework (Menzies, 2017) ................................................................................ 14 Figure 7. Baguio City within the Benguet Province ................................................................................................ 15 Figure 8. The Burnham Lake, Central Business District ......................................................................................... 15 Figure 9. Baguio's 129 Barangays .......................................................................................................................... 16 Figure 10. The Four River Basins within Baguio City ............................................................................................. 16 Figure 11. Coverage of the BSTP, CST and ST ...................................................................................................... 23 Figure 12. Inflow to the BSTP(WAMD-CEPMO) ...................................................................................................... 28 Figure 13. Implementation Mechanism (CPDO) ..................................................................................................... 37 III List of Tables Table 1. Population for the Philippines, NCR, CAR, Benguet and Baguio City ....................................................... 1 Table 2. Urban-Rural Population Distribution ........................................................................................................... 1 Table 3. Household Distribution Percentage for Drinking Water, 2013 ................................................................... 4 Table 4. Household Percentage Distribution for Sanitation Facilities, 2013 ........................................................... 5 Table 5. Philippine MDG Goal Indicators for Water and Sanitation, Attainment as of 2013 ................................... 5 Table 6. MDG Attainment for Water and Sanitation up to the Year 2014 ................................................................ 6 Table 7. Targets on Water and Sanitation to Accelerate Infrastructure Development (PDP 2017-2022) ............... 6 Table 8. Extracts from Tables in the Initial GLAAS 2017 Report.............................................................................. 6 Table 9. Roles and Responsibilities of Agencies Involved in Water and Sanitation ........................................... 120 Table 10. Proposed Legislation Extracted from the PSSR ..................................................................................... 12 Table 11. Investment Requirements 2010-2016 ................................................................................................... 131 Table 12. Baguio City Population and Growth Rate ............................................................................................... 15 Table 13. Population, Land Area, Population Density of Selected Regions, Province, HUCs and Municipalities ............................................................................................................................................................... 16 Table 14. Population Profile .................................................................................................................................... 18 Table 15. Growth Rates of Selected Regions and HUCs ....................................................................................... 18 Table 16. Poverty Indicators..................................................................................................................................... 19 Table 17. Baguio Water District Data .................................................................................................................... 217 Table 18. Baguio City Population, Households and Growth Rate ......................................................................... 19 Table 19. Estimated Coverage of Each Sanitation Type ........................................................................................ 25 Table 20. Summary of Septage Disposed at the BSTP by Private Haulers 2012-2016 ........................................ 25 Table 21. Households with Sanitary Toilet and Households with Complete ......................................................... 26 Table 22. Households by Kind of Toilet Facility in Baguio City ............................................................................. 27 Table 23. Wastewater Management Sector Targets .............................................................................................. 29 Table 24. Grants from the Government of Japan .................................................................................................... 31 Table 25. WAMD-CEPMO Allocation in City Annual Budget ................................................................................. 31 Table 26. Dried Sludge Sales .................................................................................................................................. 32 Table 27. Sewerage-Related Collections by the City Treasurer's Office ............................................................... 32 Table 28. Sources of City General Fund ..................................................................... Error! Bookmark not defined. Table 29. Proposed Investment Programme Outline Cost Estimate ..................................................................... 28 Table 30. Proposed Investment Programme Outline Financing Plan .................................................................... 28 Table 31. Sector- Wide Priority Action Points ......................................................................................................... 43 1 Part A: Background on the Philippines Geography The Republic of the Philippines is an archipelago found in Southeast Asia. It is surrounded by the Bashi Channel