THESIS Chapters 1 3 Edited Resubmitted (1) TASK 2

7/25/2019 THESIS Chapters 1 3 Edited Resubmitted (1) TASK 2

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CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter includes the review of related literature and studies which the

researchers have perused in order to shed light to the topic under study.

Foreign Literature

Managing water resource sustainability requires considering water in all

states and forms as potential resources for use and reuse. Improving use

efficiency, capture, and reuse of these non-traditional water resources is more

critical in water stressed regions, and those which are expected to become

stressed due to climate change or population growth. Treating wastewater is a

key part of solving water scarcity !usso, "lfredo, #isher, $%&'(. "s climate

change makes dry regions drier, the need for water capture and reuse intensifies

in areas with increasing water stress.

There are two key points when considering all water as resources) first,

not all applications require the same quality water, and second, not all *used+

water requires the same level of treatment before it can be reused. Treatment

before and treatment after of the combined water stream uses unnecessary

amounts of energy and effort iemcynowic, $%%(. Incentiviing a selective

system of treatment and reuse requires that water be priced appropriately. /ater

must be considered an economic good to account for its competing uses

Mwana, $%%(, where the price depends on availability and quality. To



encourage treatment and reuse, the value of water should equal the cost of

treating source water to necessary standards.

0xcess water during rain events can be harvested and stored for use in

dry periods. 1epending on the level of existing infrastructure and water

application purposes, the scale of water capture and distribution can range from

household to neighborhood to city. In many developing regions, small scale

capture is recommended at the household level using storage tanks or infiltration

ponds in con2unction with hand pumps for recovery Malley, Taeh, Matsumoto,

$%%3(. Increased capture and use of all available water resources will

significantly reduce water stress, especially during dry seasons and periods of

drought.

4rban water and resource management involves the following steps5

collecting water in sufficient quantities to meet needs throughout the urban area)

treating collected water to achieve the quality required for specific purposes)

distributing water to end users) collecting used water) treating used water for

reuse, including for environmental enhancement) managing residuals from

treatment processes) and extracting useful materials, such as heat, energy,

organic matter, and nutrients, from the used water stream.1aiger, $%&&(

" key component of the evolving urban water and resource management

infrastructure paradigm includes hybrid systems.

In hybrid systems, enabled by improved treatment technologies, local

water resources are becoming increasingly usable, and treatment systems are



being distributed throughout service areas. The resulting hybrid systems include

both centralied and decentralied components like green infrastructures, 4sed-

/ater !eclamation and !euse 6ystems and in home treatment devices.

Traditional, centralied storm water-management systems generally

consist of drains and collection points that direct rainwater into pipes that convey

it to existing streams and waterways. 1istributed storm water management and

rainwater harvesting systems collect rainwater and direct it either to storage

areas for later use or to natural systems that reduce the velocity of the water,

infiltrate rainwater into the ground, and thereby remove pollutants. 6uch systems

are often referred to as *green infrastructure+.

"nother hybrid system is the distributed used-water reclamation and reuse

system 7imene and "sano, $%%8(. 1riven by the increasing scarcity of water

and enabled by modern treatment technology, used water is increasingly being

reclaimed and reused in a variety of ways. In-home devices can also be used to

provide potable water. 9enerally purchased and installed on an elective basis by

individual homeowners, these devices provide good quality water for most

purposes, thereby reducing the amount of water that must be treated to a higher

standard for truly potable purposes.

6ustainable development in urban areas requires reliable, equitable, and

easily accessible water. :roviding water to the rapidly growing urban populations

in developing nations creates a complex logistic and economic problem. This is

exacerbated in areas where urban expansion is largely informal an unplanned,

as demand is difficult to pro2ect and consumption is difficult to monitor.



Indicator methods are commonly used for evaluating urban water

management. 1eveloping successful indicator methods requires continued

efforts to quantify the relationships between urban water management and

environmental sustainability, which groups including the 4 ;entre for <uman

6ettlements and the 4 0nvironmental :rogram are currently pursuing.

Monitoring and evaluation of urban water systems in developing regions will help

improve current conditions and inform future development. =ne assessment

evaluated $ indicators in four criteria groups5 technical, social>environmental,

financial, and institutional kambule, $%&$(. They found that technical design

flow and the functionality of the system( and social criteria status of use, equity,

decision making in operations and maintenance( are more crucial to sustaining a

water system than financial and institutional criteria, although all are necessary.

4rban water system sustainability faces challenges emerging from

physical resource, infrastructure, and socioeconomic conditions. In water rich

regions, water distribution systems are optimied to meet a specified minimum

pressure, whereas in water stressed regions equal water distribution among

users is the goal. In the latter case, distribution systems should be designed with

the expectation of intermittent operation rather than assuming continuous supply,

thus reducing pressure problems and inequities in distribution ?airavamoorthy,

$%%@(. Aoth water rich and poor regions are faced with the infrastructure design

and water supply challenges of meeting demands associated with population

growth 7iang, $%%3(. Infrastructure and operation problems include leaking pipes

and *stolen+ water in water scarce regions. Material and construction failures,



electricity supply or operation and maintenance issues all affect water

distribution. Thirty percent of water supply systems serving rural sub-6aharan

communities are non-functioning at any given time. ;hallenges include

infrastructure issues, however their origins may include socio-institutional

problems involving responsibility, knowledge, and coordination.

Increasingly, sustainability solutions include participatory planning and

water capture and reuse. 6ustaining a water system requires personnel training,

monitoring, health and safety regulations, and communication with users.

6ustainable water utilities should involve the population which they serve, and

utilie the local knowledge of water resources and traditional management

practices. The inclusion of women in water management decisions is particularly

important in cultural contexts where women are traditionally charged with

collecting water for domestic consumption and use, as water management can

have immediate and long-term impacts on gender equality.

In order to solve this ongoing problem of water scarcity and improve

sustainable water management in urban and rural locations, the government and

all private and public bodies needs to understand the importance and benefit that

could be given by public participation in achieving the goal of an integrated water

management.

In the study made by the 0uropean 4nion /ater #ramework 1irective,

public participation ::( have been increasingly integrated into the international

agenda on environment and sustainability. The concept has been introduced as a

tool to improve resource management and promote more democratic decision-



making. In the 04, policymakers and social scientists are familiar with ::,

especially within the realm of water, where specific provisions have been

included in "rticle &' of the 04 /ater #ramework 1irective /#1(, 1irective

$%%%>@%>0;. 4nder the /#1, Member 6tates must encourage active

involvement of all interested parties, and ensure consultation and access to

background information used for the development of !iver Aasin Management

:lans !AM:s(. "rticle &' defines the following three stages for stakeholder and

public consultation, with each stage requiring at least @ months for feedback5

• timetable and work program for the production of the !AM:s at

least B years before the plan begins()

• overview of the significant water management issues identified in

the river basin at least $ years before the plan begins()

• 1raft of the !AM: at least & year before the plan begins(.

Indeed, most of the planned /#1 measures to improve water quality and

resource management need to be supported, implemented or even initiated by

actors other than environmental and water authorities, in areas like agriculture,

energy, and transport. The most appropriate measures for achieving !AM:

ob2ectives will involve balancing the interests of various groups of stakeholders.

"t the same time, the protection and rehabilitation of 0uropean waters also calls

for the involvement of citiens, interested parties and non-governmental

organiations 9=s( C not only to ensure the legal implementation and



integration of regional expertise in the process, but also to guarantee the buy-in

by key influential actors.

"nother key factor in sustainable water management nowadays is the

emergence of new technology and one of key challenges now is to attract new

technologies. The matter is that the ma2ority of know-hows and best practices in

water treatment are concentrated in transnational corporations. In order to solve

this problem authorities have to attract foreign companies. Aut here we face

another problem5 water industry by its very nature has direct impact on people. It

means that distinct from new oil refinery pro2ect, this industry provides basic

human needs and this service is irreplaceable. It implies additional responsibility

on water-providers that shuts out an idea of full liberaliation, but rigorously

regulated moderniation seems also inefficient and unrealistic.

6cientific and technological innovation will drive increased efficiency,

increased productivity and reduction in the environmental impact of the water

sector D and will underpin sustainable water management into the future. 6ome

of this technology will be developed locally through !E1 and innovation

programs and this will offer export potential(, while the remainder of the

technology will be imported. This also requires excellent education and research

systems to support the training of engineers and scientists with the

understanding and know how to exploit these technologies.

Local Literature



"s part of its natural resource management function under the :hilippine

bureaucracy, the 1epartment of 0nvironment and atural !esources 10!( is

the lead government agency in charge of water resource management. <owever,

the responsibility of planning and managing the countryFs water resources is

shared with several government departments, bureaus and attached agencies

concerned with different aspects of water resource management Table &(. In

addition, local government units G94s( are required to provide water supply

subsystems, communal irrigation facilities, and implement social forestry and

local flood control pro2ects, sub2ect to the supervision and control of the 10!.

(Retrieved on July 08, 2015: http://www.senate.gov.ph/publiations/!"

#20201108#20#20$urning#20the#20$ide.pd%&

"ccording to !oel 0spiritu, <ead of Gabor !elations of Maynilad /ater

6ervices, Inc., =ne of the top priority programs of Maynilad is focused on

ensuring business viability and sustainability by reducing chronic water losses or

on-!evenue /ater !/(. !/ is defined as the difference between the

amount of water put into the distribution system and the amount of water billed to

consumers. !/, which is often defined in terms of percentages, is considered

as the best over-all indicator of the quality of the water utility management) high

levels of !/ lead to low levels of efficiency.

In $%%H, the !/ of Maynilad reached @@ which is a very high rate. This

means that &,%% million liters of water per day were wasted. #urthermore, water

of this quantity, if not lost, could supply an additional &,$%,%%% households with

potable water. /hen lost, this volume of treated water remains unaccounted for



and does not translate to revenue for the company and adversely impacts water

supply.

10:"!TM0T GI0 "90;J #4;TI=6

ational 0conomic and

1evelopment "uthority 01"(

;oordinates the preparation of

national>regional>sectorial development policies and

investment programs

1epartment of

0nvironment

and atural

!esources

10!(

ational /ater

!esources Aoard

/!A(

"dministers>enforces the /ater ;ode and serve as the

lead coordinator for water resources management

programs.

0nvironmental

Management

Aureau 0MA(

6ets and enforces water quality and effluent standards,

criteria, and guidelines for all aspects of water quality

management.

1epartment of

"griculture

ational Irrigation

"dministration

I"(

4ndertakes water resource pro2ects for agricultural

irrigation and other purposes, such as flood control and

drainage, hydropower development, etc.

Aureau of 6oil

and /ater

Management

#ormulates>implements policies and programs for the

protection of existing and potential sources of soil and

water for agricultural development.

1epartment of

<ealth 1=<(

0nvironmental

<ealth 6ervice

0<6(

!esponsible for water supply and sanitation programs

and strategies to forestall the spread of water borne

diseases.

Metropolitan /aterworks and

6ewerage 6ystem M/66(

!egulates water concessionariesF rates and service

standards in Metro Manila and maintains existing assets

and infrastructure.

Gocal /ater 4tilities "dministration

G/4"(

:romotes>finances>regulates the construction and

operation of local water utilities outside Metro Manila.

Table &5 Key ational 9overnment "gencies Involved in /ater Management0laegui, $%%(, :hilippine /ater 6upply 6ector !oadmap $%&%(



!/ may be categoried into physical or real loss) commercial or

apparent loss and loss of water for operational purposes. <igh physical losses or

real losses allude to the loss of real water as an aftereffect of spillages in

channels, 2oints and fittings, flood at the utilityLs stores created by poor operations

and framework upkeep. ;ritical commercial losses or apparent losses, then

again, allude to loss of income exemplified by unbilled water because of

information or meter errors and framework flushing and robbery. "nother reason

for water loss is for operational purposes) for instance because of the way that

the circulation lines of the organiation were acquired and go back to when the

organiation was set up and was poor upkeep of the network.

6till in the :hilippines, $%&% data from the ational 6tatistical ;oordination

Aoard 6;A( revealed that &@ percent of all households remain without access

to clean and portable water. This situation is expected to worsen in the near

future given the rising population that results in an increasing demand for the

countryFs already dwindling water supply.

The :hilippines has an extensive body of water and water-related

legislations that provide the legal bases for policies and regulations concerning

water resource management in the country. These include the /ater ;ode of

&3H@, !evised #orestry ;ode of &3H, :rovincial /ater 4tilities "ct of &3HB, and

the ational Integrated :rotected "reas 6ystem "ct of &33$, among others. It

must be stressed that all of these laws will be for naught if they are not

implemented consistently and effectively. It may be surmised that the formulation

and passage of these laws have done little to stem the steady degradation of the



countryFs water resources. 9iven the importance of water as a basic requirement

for human life and a vital input for socioeconomic progress, the ;ongress must

use its significant oversight functions to regularly monitor water agenciesF

performance and hold them accountable for their actions www.senate.gov.ph(.

The goal of the water use and supply management program is to increase the

amount of water available to users while protecting water resources, water-

dependent natural systems and interrelated habitats. The ecosystem-based

management approach ensures an integrated and holistic approach to the

management of river basins down to the coastal and marine areas. This involves

protection of forests, watersheds, wetlands, surface water rivers, lakes, streams(

and groundwater aquifers to ensure adequate water supply and acceptable water

quality. 9reater attention is also given to the promotion of water reuse, recycling

and other conservation measures as well as the upgrading of water supply and

distribution systems to reduce losses, and improving cost-effective technology

such as in desalination of seawater to increase available water supply. "ccess to

safe water at a convenient distance and at an affordable price provides a boost

to human health and productivity. !etrieved on "ugust ', $%&5

http5>>www.pemsea.org>topics>water-use-and-supply-management(

/hile :hilippines a country located in comparatively water-rich 6outheast

"sia, unfortunately face the same problem of water shortage due to decades of

water misuse, destruction of tropical rainforest especially catchment areas,

severe water pollution, excessive extraction of groundwater, and poor and

unregulated land resource management.



Table $5 /ater Gegislations

9iven the many agencies involved in water management and with overlapping

functions, institutional arrangements have to be streamlined, with proper

delineation of roles and responsibilities. :olicies and programs are also needed

to be set in place for the regulation of use and extraction, including proper

allocation among various users) pollution reduction to mitigate contamination of

surface water and groundwater) water tariff restructuring and application of

market-based instruments, such as user fees, to reflect the full value of water as



a resource) and regular monitoring of surface water and groundwater quality and

quantity

/ith urbaniation, water governance has to cope with increasing demands

for steady supply and access to potable water, both for the immediate and long

term. ational institutions usually manage water supply>quality and sanitation.

<owever, local governments still lack the ability to ensure efficient and sustained

delivery of basic water services. Thus, some institutional development

interventions among local governments were initiated to monitor, improve and

sustain water quality and conservation for domestic, industrial, agricultural and

other uses. 6trengthening the local governmentLs mechanism is important for

integrating efforts, coordinating and managing integrated water resources and

related water operations in the area and driving the different sectors involved to

treat water resource in an integrated manner. 6uch initiatives hopes to shift from

fragmented to integrated local water agenda and action, to be catalyed by an

integrated management scheme at the local government level. 6pecific targets

for capacity-building are the strategic planning and development of the

localgovernment and the public utilities sector that manages the water treatment

facility. :ascual, "badilla, "cedebo , $%%8(

Ma2or water quality challenges that the country needed to improve the

quality of its surface, ground, and coastal waters. The government should pursue

aggressive strategic plans to address the seemingly decreasing trend of the

quality of our water bodies. This implies safe drinking and bathing waters and

water bodies that foster production of our aquatic resources. The active



involvement and participation of stakeholders should be enhanced in

implementing water quality management programs. It should promote a

sustainable proactive approach to managing water quality particularly at the local

level. 6uccessful water quality management requires a strong community-based

effort with diverse stakeholder involvement, good partnership building with

consensus, and effective and collaborative decision making on best management

practices. The challenge is to internalie the message that water is an important

resource and that everyone has to play a role in the conservation and

management of our water resources.

=n another case study, discussed about the privatiation of water

resources here in the :hilippines. /ater privatiation is not the bitter pill that

some make it out to be, nor is it the panacea to all the governmentFs woes in

water provision. /hile privatiation can indeed generate significant welfare gains

to people by tapping on the private sectorFs know-how and efficiency, it is

extremely difficult to navigate the multitude of challenges to achieve a successful

privatiation. "s we learn from the successes and failures of past privatiation

experiences, we are seeing a trend where privatiation works best if the three

key stakeholders of the process play their part5 The government provides good

policies and transparent regulatory frameworks, the people understand the

importance of cost reflective prices to ensure quality and sustainability of water

infrastructure, and the private enterprises implement best business practices to

increase efficiency, and to seek opportunities in bottom or pyramid strategy to

service the poor. !etrieved on "ugust ', $%&5



http5>>www.circleofblue.org>waternews>wp-

content>uploads>$%&$>%@>Insead/ater:rivatiationManila:hilippines.pdf(

Foreign Studie

Niao Giang in his thesis entitled * The 0conomics of 6ustainable /ater

Mangement5 The ;ase of Aei2ing+ said " rapidly growing urban population leads

to the dramatic increase of water consumption in the world. The water resources

available to the human being are limited. Meanwhile climate variability and

environmental pollution decrease the quantity of water resources available for

human use. It is a significant challenge to provide sufficient water to urban

residents in a sustainable and effective way. #acing urban water crisis,

researchers point out a paradigm shift in urban water management for

sustainable water supply and services. This requires multi-disciplinary

approaches, including technical improvements and economic evaluations.

"dvanced technology can contribute to the solution of problems physically, but it

may not ensure sustainable operation of water systems. The obstacles to

sustainable water supply and services often are from non-technical problems

such as low cost recovery, lack of sound pricing systems and sustainable

financing for increasing service coverage. The financial and economic factors

could be a large barrier to the operation of water systems. This research aims to

use economics to assess water systems for sustainable urban water

management. <ow to use economics on urban water systems and what

contributions can economics bring to sustainable water management are the two

main research questions in the thesis. 6ince the existing systems are insufficient



to achieve the ob2ective of sustainable urban water management, many new

systems are being proposed and implemented recently. There are two kinds of

water systems5 traditional or existing systems, and new or alternative systems.

The alternative systems may be technologically feasible to increase water supply

or save water consumption, but they may not be financially and economically

feasible. Gack of financial and economic viability makes alternative systems less

attractive than traditional systems. It is important to know whether the new

systems can operate long term and whether the new systems are suitable

alternatives to existing systems if one wants to promote sustainable urban water

management. The thesis carries out economic and financial analysis of

traditional and alternative urban water systems. " comparative analysis between

the traditional and alternative water systems is presented. Through the

comparative analysis, the thesis shows whether the alternative system is an

economically viable alternative to the traditional system. The case of Aei2ing is

chosen for the study. The main technological measures of water saving in Aei2ing

include wastewater reuse and rainwater harvesting. There are centralied and

decentralied wastewater reuse systems. ;entralied wastewater reuse systems

represent the traditional systems while decentralied systems represent the

alternative systems. 9roundwater is the main and traditional water resource for

agricultural irrigation, and rainwater harvesting is an alternative method to get

more water. The main economic method in the thesis is cost benefit analysis,

which is an accepted method to evaluate the environmental pro2ects. "dditionally,

the thesis employs the methods of linear programming and rough set analysis. In



the cost benefit analysis, the concern of different stakeholders having different

viewpoints is taken into consideration. "ccordingly, an integrated financial and

economic analysis is carried out, in which financial analysis is implemented from

the point of view of individual participants, while the economic analysis is from

the point of view of society. The financial analysis aims to 2udge whether the

individual investor could afford the water system, and the economic analysis is to

determine the contribution of the water system to the development of society. The

research shows that the alternative water systems are economically feasible

while they are not financially feasible. <owever, the traditional water systems are

both economically and financially feasible. ;omparing the economic and financial

feasibility between the traditional and alternative water systems, the traditional

water systems are better than the alternative systems. It implies that the new

water systems are not viable alternatives to the traditional water systems

because the new systems are not financially feasible. Through the case of

Aei2ing, the thesis demonstrates how to use economics in managing urban water

systems. This is the first integrated and quantitative analysis of the economic,

environmental and social effects of new water systems. The economic,

environmental and social effects are all determined by monetary values, which is

rare in the existing literature.

Local Studie



" three year study of provincial water systems then had shown that the

needs of our growing communities were not met by existing water systems. The

facilities of most water systems are mismanaged and most water systems had

become dumping grounds for relatives and protOgOs. It is one of the reasons the

Gocal /ater 4tilities "dministration was established. Garge amounts of money

have not been utilied for public use and benefit rather for selfish ends.

;orruption has always been connected to transactions entered into by the

government. It is therefore operative that there is strict compliance with internal

control procedures and policies to ensure that public funds, resources and other

matters do not go to waste and be able to present reliable data. Aut still, strong

internal controls is affected by the non-implementation by management and

human error as to compliance. 1e Gara, Gim, =gbac , $%&%(.

Puality management is becoming increasingly important to the leadership

and management of all organiations, not 2ust of water management. Maynilad

as perceived by its personnel and the general public has obtained full compliance

of I6= 3%%&5$%%8 implementation and compliance in relation to quality

management system, management responsibility, resource management,

product realiation and measurement analysis and improvement. Puality

management does not focus solely on the product quality but also the means of

achieving such. #or an organiation to function properly it has to determine and

manage numerous linked activities. ;ardoa, ;hua, ;oncento, $%&%(

#inancial aspect as well plays a big role in different organiations,

including the water industry. "s a result, many institutions have closed and many



workers lose their source of living. This global phenomenon creates a big impact

to different organiations, in a recent study, management of their resources

including their working capital is essential in these times. "lthough working

capital is only composed of the current assets, this short term assets play a big

part for the entity to perform effectively while facing a crisis. 0nrique, Mendoa,

;antillon, $%%3(

"nother important concept when dealing with water management is the

treatment of wastewater. The overall ob2ective of wastewater treatment are

associated with the removal of pollutants and the protection and preservation of

our natural water resources. =f specific concern of human health by the

destruction of pathogenic organisms present in wastewater prior to treated

effluent being discharged to receiving water. Gike any business, utilities must

recover their costs if they are to sustain their operations. Tariffs are the most

common way of doing so. Aut tariffs serve other goals beyond raising revenues

to cover all or part of costs. They also are used to ensure access across

socioeconomic groups to send price signals to users about the relationship

between water use and water scarcity, and to ensure fairness in the water

industry. 6alvacion, 6o, 6orel, $%&$(.

:rotecting water resources from pollution and people from water

contamination are two of the most pressing challenges facing the :hilippines

today. The national government has an ob2ective to decrease our polluted water

resources so that in the future we have water to use. The wastewater managers

should formulate programs which will favor what the national government wants.



The desludging of septic tanks of different private and public sectors must be

rigid on their procedures. The management of these water companies should

think of ways to comply and at the same time, should also be favorable to their

customer. There must be a futuristic beneficial outcome to the people, not only in

their vicinity but the entire society. 7aca, 6abando, E 6olisa, $%%3(

S!NTHESIS

The related local and foreign literatures that were cited discussed about

the role of government, public as well as the private companies in achieving

sustainable water management. It is also mentioned in this studies, the important

factors such as public participation, education, technology and others and their

roles in better achieving sustainability of water resources. Most researches that

were done before takes on the view of the government and how much their

policies, procedures and actions greatly affect the success of sustainable water

management. Aut unlike in previous studies and literatures, our study would

focus on the part of water companies and their stakeholders specifically the

employees and how can they impact success and failure of sustainale water

management. " lot of these studies highlights the importance of cooperation not

2ust of the government and the private sector but also cooperation with the public

and the stakeholders which is in line with our study which tackles the idea of the

participation of stakeholders- specifically the employees in the decision making of

Maynilad as a means of improving water management through better planning

and more informed decision-making. The active involvement of all interested



parties and influencers in the deliberation and decision-making process is

generally expected to foster an environment of accessibility, receptiveness and

mutual respect that ultimately promotes transparency and trust among

participants and can then increase the success rate of policies due to better

acceptance by stakeholders. 1ifferences with the related local studies and

literature is that the past studies conducted focus more on the part of the

government in achieving sustainable water management which is contrary to our

study which takes on the view of Maynilad and its employees in helping achieve

sustainable water management.

Documents

THESIS Chapters 1 3 Edited Resubmitted (1) TASK 2