Regulatory and investment coordination issues in the Philippines water sector

Water supply and sanitation are an essential component of the country’s strategic infrastructure program under the Philippine Development Plan (PDP) 2017-2022. This Policy Note examined the issues in the water sector’s institutional arrangements and identified gaps and overlaps in regulation to determine whether the water sector contributes to or hinders the PDP’s attainment. The water sector’s fragmented structure resulted in regulatory conflicts and a lack of investment coordination. Inconsistencies in the technical operating standards of various regulatory agencies, which gave rise to nonuniform service levels across the country, were also uncovered. The study recommended clarifying conflicting and overlapping regulatory mandates and aligning technical regulation and operating standards. Lastly, it called for the creation of a central coordinating body to keep track of investments and funding needs of water supply entities nationwide.