Economic Ripple Effects of Davao’s Water Infrastructure

Water is not just a daily necessity for households; it is a vital driver of economic growth for cities. In 1988, a study by the Japan International Cooperation Agency (JICA) projected a looming water shortage by 2025 for the Philippines’ major urban area including Davao City.

For the past several decades, Davao City has relied on groundwater sources. However, rapid development and urbanization have made a sustainable water supply essential.

With the start of commercial operations of the Davao City Bulk Water Supply Project (DCBWSP) – a joint venture between the Davao City Water District (DCWD) and Apo Agua Infrastructura, Inc. (Apo Agua) earlier this year– the city has begun to meet its growing water needs. This project has been providing safe, reliable, and sustainable water to over one million Davaoeños, creating a positive ripple effect that attracts new investments, generates employment opportunities, and invigorating local businesses.

“Daghan gyud ang nalipay ani lalo na sa may upper Cabantian [Many are truly happy],” shared Barangay Captain Nilo Cabiles of Brgy. Cabantian. “Na-realized na gyud ning among dugay na nga ginapangandoy, ang quality sa tubig nga mag bag-o. Pinaka-basic necessity ng tao ang tubig, without it, paano ka naman makagalaw salahat? [They have finally realized our long-awaited goal with the improvement in water quality. Water is the most basic necessity for humans, and without it, how can we function in all aspects of life?]”

“Kaya siguro attractive na ang Cabantian sa mga investors [This might be why Cabantian is becoming attractive to investors]. Sa economic improvements, malaking tulong sa bawat isa dahil domino effect lang yan, kapag may investor, isa ito na nagpapatunay na maganda ang lugar, pagkatapos ang mga tao magkakaroon ng employment [In terms of economic improvements, it’s a significant help to everyone. It creates a domino effect—when investors come in, it proves the area is promising, and people gain employment opportunities],” he added.

A recent study by Ateneo de Davao University on the experiences of District 2 residents following the operationalization of the DCBWSP highlights the positive impact on local businesses due to enhanced water infrastructure.

A manager of a 5-star hotel lauded the enhanced water supply, noting that the hotel has experienced uninterrupted service since the project’s operations. This improvement has allowed the hotel to eliminate its reliance on external water providers to fill its 700-ton capacity tank, leading to significant savings in operational costs. The manager stressed that a consistent water supply is essential not only for maintaining guest satisfaction but also for ensuring the hotel’s profitability.

“We noticed an increase in water pressure, which means we no longer have to call the service provider every two days. With a daily demand of around 700 tons, our hotel’s water needs are consistently met, and our tanks are full daily. The pressure and uninterrupted supply have exceeded our expectations,” he remarked.

Similarly, a carinderia owner expressed satisfaction with the improved water supply, noting strong pressure and flow with no more interruptions or unannounced outages that previously disrupted operations for days. She shared, “Lipay kaayo mi kay wala na jud siyay undang-undang no, wala na [We’re really happy because there are no more interruptions, really none]”

As Davao City continues to grow, the DCBWSP ensures a sustainable and reliable water supply, contributing to the city’s economic potential and enhancing the quality of life for Davaoeños.