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THE MANILA WATER STORYTHE MANILA WATER STORY

Virgilio C. Rivera, Jr.Group Director, Regulatory and Corporate Development

Overcoming Obstacles to Serving Overcoming Obstacles to Serving the Urban Poorthe Urban Poor

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Public-Private Partnership

Progressive Regulatory Framework

Obstacles / Solutions to Serving the Urban Poor

Future Plans

Summary

Outline

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East ZoneWest Zone

Metropolitan Waterworks and Sewerage System (MWSS)

ManilaManila

Public – Private Partnership1997 Privatization 1997 Privatization

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Source : Asian Development Bank 1996 Data

CityPopulatio

n

Water Availabil

ity

Water Coverage

Non-Revenue Water

Staff/1000 Connection

s

(million) (hrs/day)(% of

pop)

(% of

prod)

Manila East

(1996)3.1 16 58 63 9.8

Singapore 3.0 24 100 7 2.0

Hong Kong 6.3 24 100 36 2.8

Seoul 10.6 24 100 35 2.3

K. Lumpur 1.4 24 100 36 1.4

Bangkok 7.3 24 82 38 4.6

Manila East

(2008)5.6 24 99 20 1.6

Public – Private PartnershipManila vs Asian Cities Manila vs Asian Cities

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Public

Concession

Agreement

Service Obligations

Reimbursement of prudent costs + reasonable return

MWSS

Operating Expenditures

Capital Expenditures

Progressive Regulatory FrameworkConcession FrameworkConcession Framework

Water Supply

Sewerage/Sanitation

Customer Service

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Obstacles to Serving Obstacles to Serving the Urban Poorthe Urban Poor

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Obstacles to Serving the Urban Poor

East Zone

Supply SideSupply Side

Network / Technical Constraints

Financial Constraints

Demand SideDemand Side

Affordability

Social / Institutional ConstraintsVENDED WATERVENDED WATER

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Solutions to Serving Solutions to Serving the Urban Poorthe Urban Poor

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Organizational SolutionsSocial & Environmental Commitments aligned with Business Goals

PERFECT ALIGNMENT

BUSINESS GOALS

SOCIAL/ENVIRONMENTAL

OBJECTIVES

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Organizational SolutionsDecentralization / Empowerment

Service AreasService Areas

BalaraBalara

Marikina

CubaoCubao

San Juan/Mandaluyong

Mandaluyong

Pasig

MakatiMakati

Taguig/

Antipolo

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3.13.1 MILLION MILLION CUSTOMERSCUSTOMERS

1997

24 hours 13-23 hours 0-12 hours

26% 99%

2008

5.65.6 MILLION CUSTOMERSMILLION CUSTOMERS

Impact on Quality of Lives

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Technical SolutionsWater for Low-Income Communities Water for Low-Income Communities

Population served, millions

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

0.5

1

1.5 Additional 100,000

population per year

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Financial SolutionsIncreased Access to Basic Infrastructure and Social Increased Access to Basic Infrastructure and Social ServicesServices

Longer Payment Terms

US$ 5.0

US$ 2.0

Connection Fees permonth

+ current charges

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Local Government SupportEnhanced Community Engagement Enhanced Community Engagement

Additional Investmentsfrom Tax Incentives

Faster Permit Acquisition

Land Donation for Major Facilities

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Future PlansFuture Plans

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Water Supply Expansion

1 million population

FUTUREHISTORICAL

5million

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Environmental – Wastewater Expansion

16% 30% 100%3%

2008 2010

2018 US$ 1BUS$ 1B

1997

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Next Challenge: Base of the Pyramid Initiatives

Manila Water,

Maynilad, Water

Districts, other Service

Providers

Waterless Communities60%

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SummarySummary

Solutions to improve the service delivery to the urban poor

Perfect alignment of social / environmental objectives with business goals

Progressive regulatory framework encourages Manila Water to serve the poor

Proactive engagement with key stakeholders

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THANK YOUTHANK YOU