Despite several national sewerage and sanitation policies like the Sanitation Code of 1975 and the Clean Water Act, demand for sanitation, sewerage and septage facilities, as well as related investments, remain low.
Open defecation is still practiced in many areas, especially is highly populated ones, resulting in polluted waterways and the spread of fatal and infectious diseases. Only 3 percent of public investments in water supply are used for sanitation. (PSSR 2010) Investments, by LGUs are limited since few of them have the capacity to implement, operate and maintain these systems. Low investment is also due in part to the low demand, which arose from a lack of popular understanding on the dangers of open defecation and open sewers. Official development assistance (ODA) for sanitation, septage and sewerage is largely administered by DPWH, DENR or MWSS for Metro Manila. Private sector investments are likewise limited because sanitation, sewerage and septage are perceived to be nonrevenue services, with high capital requirements relative to any projected returns. Ideally, these services should be linked to revenue-generating water service provision to facilitate cost recovery. Without a strong regulator for water, sanitation, sewerage and septage management services, there is no imperative or incentive for water service providers to extend the coverage of sewerage services.
Lack of awareness of the value of sanitation and its services
Most LGUs accord the lowest priority and allot only minimal budgets for sanitation, septage and sewerage services because the benefits are indirect at best. The low demand for sanitation at local levels also extends to wastewater collection and treatment, thus further deferring the development of necessary infrastructure.
Furthermore, research on innovative technologies to provide economically and ecologically efficient sanitation, sewerage and septage facilities is lacking. Technical capacity to plan, implement, operate, and maintain these facilities is also limited both at national and local levels. Capacities to monitor the extent and level of service are likewise limited thereby adversely affecting effective planning and budgeting for the subsector.