FINAL REPORT VOLUME 6: SUBPROJECT APPRAISAL REPORT: LEYTE METRO WATER DISTRICT Asian Development Bank LOCAL WATER UTILITIES ADMINISTRATION WATER DISTRICT DEVELOPMENT SECTOR PROJECT Project Preparatory Technical Assistance (PPTA) TA No: 7122 - PHI PÖYRY IDP CONSULT, INC., PHILIPPINES in association with TEST Consultants Inc., Philippines PÖYRY Environment GmbH, Germany APRIL 2010 PÖYRY IDP CONSULT, INC. This report consists of 12 volumes: Volume 1 Main Report Volume 2 Institutional and Financial Assessment of LWUA Volume 3 Subproject Appraisal Report: Metro La Union Water District Volume 4 Subproject Appraisal Report: Quezon Metro Water District Volume 5 Subproject Appraisal Report: Legazpi City Water District Volume 6 Subproject Appraisal Report: Leyte Metro Water District Volume 7 Subproject Appraisal Report: City of Koronadal Water District Volume 8 Report and Recommendation of the President (RRP) Volume 9 Supplementary Appendices A to G (Technical Aspects) A Review and Assessment of Water Supply and Sanitation Sector Outside Metro Manila B Water Sector Laws and Policies C Assessment of Existing Water Supply Systems in Pilot Water Districts D Proposed Water Supply Component for Pilot Water Districts E Non Revenue Water Contract Mechanisms F Sanitation G Health Volume 10 Supplementary Appendices H to J (Social Aspects) H Socio-economic Survey I Stakeholder Consultation and Participation J Indigenous Peoples Volume 11 Supplementary Appendices K to S (Financial, Implementation Aspects) K Financial Management Assessment L Detailed Project Cost and Financing Plans for Water Districts M Financial Analysis N Financial History of Water Districts O Economic Analysis P Institutional Strengthening and Capacity Building Q Indicators for Measuring Development Objectives and Performance R Terms of Reference for Consultants (Project Implementation Support Services) S Profiles of Priority Water Districts from Long-list Volume 12 Supplementary Appendices T to V (Safeguard Aspects) T Initial Environmental Examinations U Resettlement Framework V Resettlement Plans TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol. 6 – SPAR: LMWD i SUBPROJECT APPRAISAL REPORT: LEYTE METRO WATER DISTRICT List of Contents Glossary and Acronyms ix Location Map xiii 1 Executive Summary ............................................................................................... 1 1.1 Introduction ..................................................................................................... 1 1.2 Conclusions of Socio-economic Survey and Stakeholder Consultations ................................................................................................... 2 1.3 Water Supply ................................................................................................... 2 1.3.1 Rationale .................................................................................................... 2 1.3.2 Existing Water Supply System .................................................................... 3 1.3.3 Scope of Proposed Water Supply Component – Recommended Plan ............................................................................................................ 4 1.4 Water District Capability and Subproject Implementation ................................ 4 1.5 Subproject Cost, Financing Plan and Financial Analysis ................................. 5 1.6 Economic Analysis .......................................................................................... 7 1.6.1 Economic Internal Rate of Return and Sensitivity Analysis ......................... 7 1.6.2 Subproject Beneficiaries ............................................................................. 7 1.6.3 Subproject Sustainability ............................................................................. 8 1.6.4 Poverty Impact ............................................................................................ 8 2 Description of Study Area ..................................................................................... 9 2.1 Tacloban City .................................................................................................. 9 2.1.1 Location ...................................................................................................... 9 2.1.2 Physical Features ....................................................................................... 9 2.1.3 Population ................................................................................................. 11 2.1.4 Economy ................................................................................................... 14 2.1.5 Social Services ......................................................................................... 15 2.2 Dagami .......................................................................................................... 17 2.2.1 Location .................................................................................................... 17 2.2.2 Physical Features ..................................................................................... 17 2.2.3 Population ................................................................................................. 18 2.2.4 Economy ................................................................................................... 19 2.2.5 Social Services ......................................................................................... 20 2.3 Palo ............................................................................................................... 21 2.3.1 Location .................................................................................................... 21 2.3.2 Physical Features ..................................................................................... 21 2.3.3 Population ................................................................................................. 22 2.3.4 Economy ................................................................................................... 23 2.3.5 Social Services ......................................................................................... 24 2.4 Pastrana ........................................................................................................ 24 2.4.1 Location .................................................................................................... 24 2.4.2 Physical Features ..................................................................................... 24 2.4.3 Population ................................................................................................. 25 2.4.4 Economy ................................................................................................... 26 2.4.5 Social Services ......................................................................................... 27 2.5 Santa Fe ........................................................................................................ 28 2.5.1 Location .................................................................................................... 28 2.5.2 Physical Features ..................................................................................... 28 2.5.3 Population ................................................................................................. 29 TA No. 7122-PHI: Water District Development Sector Project PPTA – FR Vol. 6 – SPAR: LMWD ii 2.5.4 Economy ................................................................................................... 30 2.5.5 Social Services ......................................................................................... 31 2.6 Tabontabon ................................................................................................... 31 2.6.1 Location .................................................................................................... 31 2.6.2 Physical Features ..................................................................................... 31 2.6.3 Population ................................................................................................. 33 2.6.4 Economy ................................................................................................... 34 2.6.5 Social Services ......................................................................................... 35 2.7 Tanauan ........................................................................................................ 36 2.7.1 Location .................................................................................................... 36 2.7.2 Physical Features ..................................................................................... 36 2.7.3 Population ................................................................................................. 38 2.7.4 Economy ................................................................................................... 40 2.7.5 Social Services ......................................................................................... 42 2.8 Tolosa ........................................................................................................... 43 2.8.1 Location .................................................................................................... 43 2.8.2 Physical Features ..................................................................................... 44 2.8.3 Population ................................................................................................. 44 2.8.4 Economy ..................................................................................................