Water Crisis Is Policy Failure in Disguise

Iloilo’s water crisis, long in the making and now fast approaching the point of no return, is not just about pipes, pumps, or even drought. It is a crisis of policy—of outdated laws, paralyzed regulators, and a refusal to recognize water as both a right and a resource that must be managed with urgency and wisdom.

Residents of Iloilo City and province are facing a staggering 63% supply shortfall. That number is not just a statistic. It translates to unreliable taps, expensive water deliveries, and growing anxiety in homes and barangays. Behind this alarming gap lies a fundamental failure of leadership and strategy.

The joint venture model between Metro Iloilo Water District (MIWD) and Metro Pacific Water, which birthed Metro Pacific Iloilo Water (MPIW) and its supply arm Metro Iloilo Bulk Water Supply Corporation (MIBWSC), was supposed to professionalize the system.

Five years in, MPIW has only covered 26% of households in its service area. MIBWSC, despite its promise of 170 million liters per day (mld), can deliver just 30 to 50 mld.

But the problem goes deeper than corporate rivalry. It is systemic.

Non-revenue water (NRW)—or water that is lost before it even reaches customers—stands at a troubling 39% for MPIW. While this is an improvement from its initial 56%, it still far exceeds the best practices seen in similar regions, like Laguna Water’s 18%.

Leakages, illegal connections, and unbilled usage are not just engineering failures. They are reflections of poor planning, weak enforcement, and a neglect of maintenance. When nearly four out of every ten liters vanish before reaching consumers, no amount of new supply—whether from a desalination plant or a dam—will ever be enough.

And then there is the elephant in the room: water pricing.

The average price of water in Iloilo, pegged at PHP 24.51 per cubic meter, is far below the global average of PHP 124.23. Some water districts haven’t adjusted rates in nearly three decades. As a result, they operate at a loss, can’t pay salaries, and can’t expand. Worse, this systematic underpricing discourages conservation, delays infrastructure upgrades, and pushes the system into chronic underperformance.

The Local Water Utilities Administration (LWUA) has become a bottleneck instead of a facilitator. Its inability—or unwillingness—to approve reasonable tariff adjustments in a timely manner has paralyzed many water districts. A resource as critical as water cannot be managed with outdated economics. As long as regulators insist on artificially low prices, the public will continue to suffer high costs in other ways: illnesses, hauling expenses, groundwater depletion, and even school absences among children who must fetch water before class.

The Institute of Contemporary Economics (ICE) rightly pointed out that this isn’t just an Iloilo problem. It is a disturbing tale for the rest of the country. If we continue to treat water as an infinite, low-cost commodity, we will end up paying far more—financially and environmentally—than we can afford. Already, parts of Iloilo City, Leganes, and Oton are experiencing saltwater intrusion and land subsidence due to excessive groundwater extraction. The damage is silent but irreversible.

It is easy to be distracted by grand announcements of new supply projects, like the 66.5 mld desalination plant or the 86.4 mld Jalaur Multipurpose Project (JRMP). While these are necessary investments, they are not silver bullets. Even if MPIW receives a generous 48% allocation from JRMP, that only narrows the supply gap. It doesn’t close it. And without reforms in pricing, coverage, and leakage reduction, we risk squandering even that new water.

Let’s be clear: water is not just a commodity. It is a basic human right. But to protect that right, we must have a system that values it properly. That means honest pricing, smart subsidies for the vulnerable, strict regulation of extraction, and accountable service delivery. Iloilo deserves better than a “clash of the titans” where the public drowns in delay, neglect, and inefficiency.

Public welfare must take precedence over corporate rivalries and regulatory inertia. We urge the national government, particularly LWUA and the National Water Resources Board, to wake up to this crisis. Accelerate tariff reviews, enforce accountability, and modernize the water governance framework. Local leaders, too, must stop relying on promises and start demanding results.

Because water is life – and Iloilo’s lifeline is fraying.