WATER districts across the Philippines are struggling to keep pace with rising demand, as service delivery systems fall short despite the country’s substantial water resources — a trend with direct implications for fast-growing urban centers such as Metro Cebu.
A new study by the Philippine Institute for Development Studies (PIDS) titled “Securing Tomorrow’s Water: Insights on Groundwater, Surface Water, and the Role of Water Districts in the Philippines” found that across 532 water districts, annual demand consistently exceeds effective supply.
Authored by PIDS supervising research specialist Adrian Agbon, the paper highlights structural weaknesses in water service provision that threaten long-term water security — even in areas where raw water resources are available.
Service delivery, not raw water scarcity
On paper, the Philippines appears water-rich.
The National Water Resources Board estimates that the country has about 226 billion cubic meters of water available annually, including roughly 20 billion cubic meters of groundwater and 206 billion cubic meters of surface water from rivers and lakes.
However, 83 percent to 85 percent of this supply is allocated to agriculture, leaving a smaller share for households, businesses, and industry.
Despite 87.7 percent of the population reported to have access to safe water, fewer than half of Filipino households have piped connections at home. Meanwhile, 332 municipalities remain classified as “water-less,” where more than half of residents lack a reliable supply.
The study argues that the problem is less about raw water availability and more about system capacity constraints among water districts.
As the population grew from 77 million in 2000 to over 103 million in 2016, per capita water availability declined from 1,907 cubic meters to 1,400 cubic meters annually, intensifying pressure on distribution systems.
Widening supply deficits across regions
From 2019 to 2024, average annual water demand across the 532 water districts reached 10.6 million cubic meters, while effective supply — after accounting for estimated non-revenue water losses — averaged only seven million cubic meters.
That resulted in a persistent 3.6 million cubic meter annual deficit nationwide.
In the Visayas, which includes Metro Cebu, average annual demand stood at 8.9 million cubic meters, while effective supply was only 6.3 million cubic meters, leaving a 2.7 million cubic meter shortfall.
Coverage rates in the Visayas averaged 68 percent, below the 85 percent benchmark considered indicative of adequate supply performance.
For Metro Cebu — a hub for IT-BPM, tourism, logistics, and real estate expansion — these deficits underscore rising infrastructure risk, particularly during dry months.
Heavy groundwater dependence raises risks
A key concern flagged in the study is the country’s growing reliance on groundwater — the primary source for most water districts nationwide.
Globally, groundwater accounts for about 99 percent of liquid freshwater and supplies half of domestic water use. In the Philippines, groundwater extraction grew by an average of 3.8 percent annually from 2014 to 2023, with a sharp 17.7 percent jump from 2019 to 2020, driven largely by mining, manufacturing, quarrying, and construction.
Overdependence on aquifers heightens the risk of saltwater intrusion in coastal cities such as Cebu, land subsidence, falling water tables, and long-term deterioration of water quality.
Water withdrawals peaked at 92.3 million cubic meters in 2018, when national water stress reached 28.21 percent, illustrating how demand is increasingly pressing against available supply.
Water quality is also deteriorating. Of the country’s 623 classified water bodies, about 36 percent fall under Class C (primarily suitable for fisheries), while 33 percent are rated Class D, requiring substantial treatment before potable use.
Fragmented governance complicates solutions
Beyond infrastructure gaps, the study highlights governance fragmentation.
Around 30 public sector agencies share responsibilities over water quality, watershed management, irrigation, hydropower, sanitation, flood control, research, and supply regulation.
Overlapping mandates and weak coordination can delay permitting, infrastructure investment, and service expansion — contributing to persistent shortfalls at the local level.
The distribution of water districts is uneven. More operate in Northern Luzon, Panay Island, and Negros Occidental, while other regions rely more heavily on LGU-run utilities or private providers.
Pricing reform and financing needed
The study also examines tariff structures, noting that most water districts use Increasing Block Tariffs. While designed to promote fairness and conservation, some pricing structures may create unintended distortions and fail to reflect the true economic value of water.
Agbon emphasized that reform must move beyond fragmented, source-specific responses.
“Securing the Philippines’ water future requires shifting from fragmented, source-specific responses toward integrated planning, stronger monitoring, and better-supported water service providers,” he said.
With less than five years remaining to meet national water supply and sanitation targets, the study calls for integrated groundwater and surface water planning; stronger monitoring and licensing; targeted infrastructure upgrades; reduction of non-revenue water; and blended financing mechanisms for resilience investments. / KOC