1 the manila water story virgilio c. rivera, jr. group director, regulatory and corporate...
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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