Protecting the Water Supply: The Philippine Experience

In common with many other countries, the Philippines faces major challenges to its water supply due to heavy population increase, destruction of tropical rainforest and catchment areas, severe water pollution, excessive extraction of groundwater, and poor resource management. With a view to conserving the nation’s water resources, the state has assumed ownership of all water resources and has introduced a system of rationing based on tariffs. But despite all regulatory efforts to achieve a socially conscious but effective system of pricing of water, it has had little success in achieving a system that ensures the goal of sustainable raw water resources in the Philippines. This paper describes the regulatory background and analyses the structure and effectiveness of the pricing mechanism. Conflicting roles of the various water regulating agencies are discussed, and the paper concludes with a description of the current challenges and a call for a more effective pricing mechanism. Key Words: The Philippines; Water shortages; Nationalization of natural resources; Attempts to ensure sustainability of natural resources through imposition of tariffs. Water plays an important function in life’s sustenance, but the sources of water globally are constantly under siege from naturally occurring events, from continuing population growth and from economic development. As a result of the rapid increase in both global population and industrialization, there are increasing and conflicting demands for water for domestic, agricultural and industrial purposes. Supply and access to water has become one of the most critical challenges confronting humanity today. The Philippines, a comparatively water-rich country, is not immune from the threat to its water resources. Unfortunately, it faces the same problem of water shortage due to decades of populatio