3. The World Bank has been involved in wastewater sector development in MM for many
years, primarily through a series of investment projects under the leadership of MWSS. The GEF
project was developed to provide technical assistance (TA) to the Manila Third Sewerage Project
P079661 (MTSP) financed by an IBRD loan of US$64 million (approved by the Board in 2005
and closed 2012) and implemented by MWSS. The GEF project was also initially envisaged to be
implemented by MWSS and preparation started at around the same time. However the scope of
activities required in identifying and targeting hot spots and water quality monitoring meant that
it was ultimately within the mandate of DENR. At the time of appraisal, despite their assigned
mandate, DENR did not have any experience in domestic wastewater management projects, had
no dedicated sanitation department and did not consider domestic wastewater as a high priority.
The level of ownership within DENR and enthusiasm to take on this new role in domestic
wastewater was relatively limited. On the contrary MWSS has an established role in
implementing wastewater management projects, but no mandate in overall water quality
management and monitoring. There was therefore a level of tension over the potentially
competing and overlapping responsibilities and mandates. The discussions between the
implementing agencies took almost two years before the GEF project eventually started in 2007