Annual Report 2009 - LWUA

Annual Report 2009systems, management advisory services, water rates review/approval, and conduct of WD audit. Assessment of the 85 WDs using thecriteria on creditworthiness will be concluded in 2010.Goal 3 – Achieve Efficiency and Effectiveness by Being a World Class OrganizationAs part of its commitment to good governance, the LWUA Board of Trustees approved in 2009 an Anti-Graft Action Plan whichshall form part of the Moral Recovery Action Plan to be submitted to the Presidential Anti-Graft Commission. Likewise, the LWUA Boardapproved the Corporate Policy on the Ethical Leadership and Good Governance for LWUA. Further, two of our Board of Trustees participatedin orientation governance seminar.Goal 4 – Attain LWUA Financial ViabilityLWUA’s lending operations in 2009 was marked by new record gains. Financial assistance in the form of loans/grants committedby LWUA in 2009 reached P10.263 billion, consisting of P2.518 billion ICG Funds and P7.745 billion Non-LWUA Initiated Funds benefitinga total of 480 WDs. Out of P10 billion committed funds, P3.3 billion or 33% has been released in 2009. Compared with last year, loanreleases increased significantly from P.666 billion to P3.3 billion.Loan collection from WD amounted to P1.916 billion or 92% of the annual target of P2.072 billion. Collection ratio registered at90% exceeded this year’s target of 85%.Total revenues generated reached P1.731 billion of which 85% or P1.470 billion were realized from LWUA’s lending operationswhile 15% or P.261 billion were derived from other LWUA services and other miscellaneous income.Net income before non-cash charges amounted to P393.52 million.Project funds sourced to finance its water supply program for 2009 reached a total of around P2.45 billion.Project disbursement amounted to P3.800 billion or 84% of the P4.521 billion projected disbursement for the year. The amount(P3.8 billion) is significantly higher when compared with 2008’s P583 million which is attributed to LWUA’s accelerated water program.Meanwhile as part of LWUA’s initiative to serve poor communities, it introduced in 2009 the following financing reforms: (1)reduced interest rates and longer repayment period of loans; and (2) proper mix of funding assistance consisting of loans and grants.Moreover, the following measures were implemented by LWUA management to strengthen/enhance its financing activities: (1)Approval of the Acquisition of a Savings or Thrift Bank in view of the creation of Water and Energy Development Bank (WE Bank); (2)PGMA’s certification of LWUA Bill (Amendments of PD 198) as Administration’s Priority Bill; and (3) Creation of LWUA Consult Incorporation.DANIEL I. LANDINGINActing AdministratorLocal Water Utilities Administration5