Manila Water

Manila Water

Type	Public (PSE: MWC)
Industry	Public Utility
Founded	Quezon City, Philippines
Headquarters	Quezon City, Philippines
Key people	Fernando Zobel de Ayala, Chairman Gerry Ablaza, President and CEO
Products	Water Delivery Sewerage and Sanitation
Net income	PHP3.23 billion (16%) (2009) [1]
Website	www.manilawater.com

The Manila Water Company, Inc. is a public utility company in the Philippines. Manila Water, as it is more commonly known, is the East Concessionaire of MWSS (Metropolitan Water Works and Sewerage System) during its privatization on August 1, 1997, with its counterpart Maynilad Water Services, Inc. as the West Concessionaire. Manila Water is a subsidiary of Philippine conglomerate Ayala Corporation.

Service Areas

Manila Water's service areas, in blue.

Manila Water today serves over 6 million customers in its concession area:^[1]

• Part of Quezon City
• Makati
• Taguig
• Pateros
• Marikina
• Pasig
• San Juan
• Mandaluyong
• Southeast Part of Manila
• Rizal province

In 2009, its 25-year concession agreement with the Metropolitan Waterworks and Sewerage System was extended by another 15 years.^[2]

Service Improvements

Since Manila Water took over the East Concession Area in 1997, the company has reduced water system losses from 67 percent to only 11 percent in 2010, and expanded 24-hour water availability from only 26 percent to 99 percent of its service coverage area. The company has reportedly spent a total of Philippine Pesos 40 billion (approximately US Dollars 85 million) to improve the water and wastewater infrastructure of its concession area over the last 13 years. ^[3]

Social Responsibility

As soon as it took over its concession area, Manila Water developed a program to provide potable water at affordable rates to urban poor communities. Called "Tubig Para Sa Barangay" (Water for the Community, or sometimes, Water for the Poor), the program now benefits 1.6 million residents. Over the years, it also developed complementing programs for water supply and sanitation in public schools, public markets, city jails, hospitals, and orphanages. It also has an educational program called "Lakbayan" or "Water Trail" to brief stakeholders on the water supply chain.^[4]

In 2004, Manila Water created a Sustainable Development Cluster, an internal committee to oversee the company's sustainable development agenda. In 2005, it became the first Philippine company to publish a Sustainability Report following Global Reporting Initiative guidelines. Other subsidiaries of Ayala Corporation would soon follow its example to make public their commitments to measure, report, and improve performance on sustainability indicators on economic, environment, and labor practices.^[5]

Expansion

On December 12, 2007, Bulacan and the Metropolitan Waterworks and Sewerage System (MWSS) signed an agreement for the development of a P11-billion bulk water supply project. It was reported that Ayala-owned Manila Water would implement the project. MWSS and Manila Water would provide a financial package of an infrastructure grant, a P10-million development assistance and a P10-million royalty fee to the towns of Norzagaray and Doña Remedios Trinidad, which would host the water supply project.^[6]

In 2009, Manila Water acquired ownership of the company that supplies water to key growth areas in Laguna, south of Manila. Through its wholly owned subsidiary AAA Water Corp (AWC), Manila Water gained a 70% stake in Laguna AAA Water Corp, a joint venture between the provincial government of Laguna and AWC. The joint venture company serves the needs of the city of Sta. Rosa and municipalities of Biñan and Cabuyao, where several international businesses including Nestle, Ford, and Coca-Cola, and major industrial parks, are located.^[7]

A year later, Manila Water and the Philippine Tourism Authority, a government agency, formed a joint venture called Boracay Island Water Co., Inc. With an initial capitalization of Philippine Pesos 300 million (approximately US Dollars 6.5 million) and a 25-year concession agreement, the company has been tasked to develop, operate, and manage the water and sewerage system of the Philippines' most popular tourist spot.^[8]

The company has also expanded operations elsewhere in the Asia-Pacific region, with management contracts and/or investments in Vietnam;^[9] India; and Australia^[10]

See also

Water privatization in the Philippines

External links

• Manila Water Company
• Ayala Corporation

References

1. ^ "President's Report", Manila Water 2009 Annual Report, p. 4.
2. ^ "President's Report", Manila Water 2009 Annual Report, p. 5
3. ^ "Metro water firms reduce system losses", The Philippine Star, January 14, 2011.
4. ^ "Message from the Chairman and President", Manila Water 2009 Sustainability Report, p. 4.
5. ^ "Reporting to Stakeholders", Stakeholder engagement: A good practice handbook for companies doing business in emerging markets, International Finance Corporation-World Bank, May 2007, pp. 95-96.
6. ^ Abs-Cbn, Bulacan govt, MWSS ink deal on bulk water supply project
7. ^ "Manila Water acquires Laguna water supplier", GMANews.tv, July 21, 2009.
8. ^ "Manila Water, PTA tie up for Boracay water project", The Philippine Star, January 18, 2010.
9. ^ "Ho Chi Minh Project", Disclosure to the Philippine Stock Exchange, July 3, 2008
10. ^ ."Manila Water in Australia", Manila Standard Today, May 12, 2010