This paper explores the performance of a system of economic instruments designed to facilitate the reduction of hydroclimatologic variability-induced impacts on stakeholders of shared water supply. The system is composed of bulk water option contracts between urban water suppliers and agricultural users and insurance indexed on reservoir inflows. The insurance is designed to cover the financial needs of the water supplier in situations where the option is likely to be exercised. Insurance provides the irregularly needed funds for exercising the water options. The combined option contract ? reservoir index insurance system creates risk sharing between sectors that is currently lacking in many shared water situations. Contracts are designed for a shared agriculture ? urban water system in Metro Manila, Philippines, using optimization and Monte Carlo analysis. Observed reservoir inflows are used to simulate contract performance. Results indicate the option ? insurance design effectively smooths water supply costs of hydrologic variability for both agriculture and urban water.
Centre for Asian Philanthropy and Society (CAPS);
For more than 60 years, the social services and development ministry of the Archdiocese of Manila have helped the less fortunate to find self-reliance and dignity. In doing so, it has cultivated its next generation of leaders and donors.Caritas Manila works to benefit the disadvantaged of Manila in the areas of social development, family empowerment, social entrepreneurship and other special concerns. And though it operates as a distinct, non-profit entity that is separate from the Catholic Church with only 26 full-time employees, it is able to use its vast infrastructure to do much of its work; thousands of volunteers from the 365 Catholic parishes across the city work on the frontline to help programs and deliver services.Fr. Anton Pascual, executive director of Caritas Manila, describes it as "a non-governmental organization that is faith-rooted and love driven," whose goals are to help the least, the last, and the lost. "Because we are the church, we build a Christian community," he said. "You get the best of both worlds: the best of church and the best of NGO."