Oversight by the Local Government Unit, contracting a Private Operator under a construction contract and a 15 year lease agreement Full cost recovery on Development Bank of the Philippines' sub-loans to Local Government Units. Technical support provided by regional Association of WUAs. WUA contracts a Private Operator under a 10 year lease agreement. Construction is carried out by the operator under a government contract. Full cost recovery.
Operators finance construction and recover their costs through a connection fee and the tariff.