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CRBO2012: Laguna Lake Development Authority Laguna de Bay Basin by Dolora Nepomuceno

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Laguna Lake Development AuthorityLaguna de Bay Basin

February 8, 2012

Dolora N. NepomucenoDolora N. NepomucenoAssistant General ManagerAssistant General Manager

LLDA

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Laguna de Bay

Region• Largest lake in the Philippines,

considered as ecological & economic

resource• Mega watershed, 24 river basins, 63

LGUs with 14.404 million people ofwhich 29 LGUs along the lakeshore

with 3.92 million

• Multiplicity/inter-relationship/conflictsof lake uses

• Strategic location (seat of governmentand headquarters of all linedepartments, the military and policeauthorities)

• Key industrial, commercial andresidential location

900 km2

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Legal Framework

Republic Act 4850 (1966) created LLDA to prom ote and accelerat e thedevelopment and balanced grow t h

President ial Decree 813 (1975) expanded LLDA’s mandate t o include

environmental protect ion, and issue perm it s for t he use of surf ace w aters Execut ive Order 927 grant ed LLDA w ater r ight s over sur face w aters;

abate/ cont rol pollut ion; collect fees for t he w ater uses

Phil ippine Clean Water Act (2004) declared Laguna de Bay Water Qualit yManagement Area

I nst it ut ional Arrangements

Administ rat ively at t ached to DENR; int eract s w it h 2 regional ENR off icesw it h decent ralized ENR regulat ory responsibil it ies

Over 30 ot her w ater-related agencies operating in t he basin & 66 LGUsw it h environm ent- relat ed funct ions (1991 Local Governm ent Code) , butLLDA Governing Board has lim it ed stakeholders/ agency representations

Financial Arrangements

Fiscal independence – LLDA authorized to generate, appropriate,channel & leverage it s ow n funds t o fulfil l I WRM roles/ act ivit ies

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4

LLDA’s Functions/Mandate

POLICY AND PLANNING**Develop Lake with due regard to

environment and prevention ofecological imbalance

Conduct comprehensive survey/studiesPrepare comprehensive plan to conserve

and utilize resourcesExercise water rights within Laguna LakePrepare a water quality management

programCoordinate policies with other

government agencies andstockholders

REGULATORY***Establish and enforce water quality

standards for industrial, agriculturaland municipal use

Issue and revoke permits for use ofsurface waters within the lake region

Approve development plans proposedby LGUs, private persons orenterprises

Collect fees for use of Laguna Lakeresources for all beneficial

purposes

Compel compliance

INFRASTRUCTURE ANDRESOURCES DEVELOPMENT*Prepares and implement infrastructure

projects such as river works, flood

control and sewerageReclaim portions of the LakeUndertake re-adjustments, relocations or

resettlement of populationsFinance Infrastructure projectsCollect reasonable fees and toll chargesDevelop water supply from groundwater

or Lake water sources

Engage in fish production and otheraquaculture projects

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5

LLDA’s Corporate Features

1.Board of Directors as corporate and WQMA governingboard2. Capitalization and financing3. Exercise of corporate powers

-Raise, retain, earmark, use revenues for its operation-Engage in proprietary/income-generating activities(pioneering, non-high risk & mandate-related endeavors)-Create subsidiary corporations

-Enter into joint-venture agreements and other similararrangements-Acquire properties and obtain titles under its name

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Board Composition

Representative of the Office of the President

Secretary, DENR Secretary, DTI

Secretary, NEDA

Governor, Province of Laguna

Governor, Province of Rizal Chairman, MMDA

President, League of Rizal and Laguna Lakeshore Mayors

Representative from the Private Investor General Manager, LLDA

As WQMA Governing Board: Additional members -

• President, Federation of River Basin Councils, Inc.

• President , Water Districts Association

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LLDA

Stockholders Profile

As of December 2009

0

100

200

300

400

   I   n 

   M

   i   l   l   i   o   n 

   P   e   s   o   s

Subscribed

Paid UP

Subscribed 357 18.9 1.286

Paid UP 183.392 11.509 0.628

National Govt Prov of Rizal and Private Investors

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Other Fund Sources underLLDA Charter

• National Government subsidies

• Bilateral and multilateral sources (grantsand loans)

• Contracted loans through floating of bondsand other debt instruments

• Investments in secured debt instruments,

marketable securities• Public-private partnerships

• Build-Operate-Transfer contracts or othervariants

8

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Revenue Sources

72%

19%

5% 4%

Environmental UserFee

Regulatory Fees

Investment

Service Fees

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Sharing scheme for fishpen and fishcage fee share for Laguna de Bay

Project Devt. Fund – source of LLDA equity subsidy for LGUs’ environmental

initiatives funded under LISCOP Project

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11

Advantages of LLDA’s Corporate

Features

1. Unique legal, institutional & financing arrangements –

legislated charter

2.Fiscal autonomy of RBO, mobilization & leveraging of funds to catalyze investments in IWRM includingenvironmental and water-related infrastructure projects

3. Multi-stakeholder engagement paves way for IWRM

investment planning and decision making given multiplicityof actors and interests in a given watershed

4. Innovative financing mechanisms & market-based

incentives adopted for IWRM

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Planner,Regulator,and

Developer

Current Structure Prototype Phase Final Phase

LLDA as:

Year 0 Years 1-X After Year X

LLDA as: LLDA as:

Plannerand

Regulator

Plannerand

Regulator

Composite andFunctions

UndifferentiatedFunctions Differentiated Corporatized

Developer

(PDF) LBDC

Framework of the Strategy for theTrunk Infrastructure Development

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13

Suggestions on How to Promote

Corporate RBOs in Asia

1. Engaging champions at strategic levels – leadership training on RBM and corporate RBOs

2. High-level dissemination of results/outcomes of

performance benchmarking across different types ofRBOs coupled with sharing of experience and bestpractices

3. Strategic roadmaps to corporatize RBOs,development of modalities, etc.

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In

Perspective

14

• Covers well defined area• Extensive and encompassing legal authority, e.g.

- Review/approve development plans/projects- Issues permits for use of lake water

- Collect fees on both intake and discharge of water- Issue permits for discharges

• Authorized to use its revenues for environmental and waterrelated projects

• Singled out as the only authority with a unique legal andinstitutional framework to implement pollution charge system,market-based instruments and other innovative mechanisms

Laguna Lake Development Authority4th Floor Annex Building, SRA CompoundNorth Avenue, Diliman, Quezon City, Philippines

Contact No. +632918-888-5353Homepage: www.llda.gov.phEmail: [email protected]