Philippines: evaluation of ADB assistance to water supply services in Metro Manila

Published on: 15/01/2009

The ADB conducted a special evaluation study (SES) to assess the performance of their assistance to draw lessons for future partnership operations. The findings were used as input to the Philippines Country Assistance Program Evaluation completed in 2008. Overall, the SES rates ADB's assistance to improving water supply services in Metro Manila as "partly successful". All projects are rated relevant and were well coordinated with other development partners. With the exception of the Manila South Project, they were generally effective in achieving their immediate objectives, efficient in resource use, and likely sustainable from the financial and economic perspectives, which was eventually strengthened following upward tariff revision. The Manila South Project experienced a shortage of raw water and did not utilize the full loan amount; hence, it could not meet its immediate objectives. Key lessons identified from experience with implementing water supply projects in the Philippines relate to the need (i) for greater attention to demand-side issues in project design; (ii) to reduce the high levels of NRW [non-revenue water] as an integral way of responding to rapidly increasing demand; (iii) for water utilities to give priority to adequate maintenance of existing water supply facilities and investment for rehabilitation to reduce NRW over the investment in new assets; (iv) for better readiness for project implementation; and (v) to improve transparency and accountability in preparing concession agreements. Read the full evaluation study report (Sept 2008) here.