Business and Global SocietyFenway Team 5

Water in the world

Economic Implications

$$32 billion in economic benefits each year from reductions in health care costs and increased productivity from reduced illness

Annual aid for water and sanitation amounts to only $8 billion, far short of the $1 trillion needed to solve this crisis and maintain it long term

Every $1 invested in water and sanitation provides a

$4 economic return1 4

Water as a human rightThe 2030 Agenda for Sustainable Development and the Sustainable

Development Goals

Goal 6: Clean Water & SanitationEnsure availability and sustainable

management of water & sanitation for all

6.1 Target: By 2030, achieve universal & equitable access to safe & affordable

drinking water for all

The 2030 UN Agenda for Sustainable Development and the Sustainable

Development Goals

Goal 6: Clean Water & Sanitation Ensure availability and sustainable

management of water & sanitation for all

6.1 Target: By 2030, achieve universal & equitable access to safe & affordable

drinking water for all

Water in the PhilippinesAccessible, but not affordable

Access to water is 97% in urban

areas and 83% in rural

Households in Manila slums still

pay 5-10 times more (as % of income?) than those in high-income areas

Yearly water utility bills can

total 3 months of income for the poorest 20% of the population

Households in Manila slums pay

more for water than consumers in London or NY

Manila Water: Creating Shared Value

Key StakeholdersStakeholder Concerns Motivations RankingEmployees Compensation and Benefits

Integrating self-goals with organization goals Work-life Balance Personal development programs (Trainings,

Seminars, Conventions) CSR programs to engage in

Working in a renowned, transparent, ecofriendly

and profitable organization.

Medium

Customer/Community Improvements in service quality Billing issues Desludging Rates and Billing Schemes Applications for new connections Traffic due to constructions and excavations

Uninterrupted and easily accessible services. Affordable water connections An efficient customer grievance redressal system. Being associated with an eco- friendly company

High

Regulators:(Metropolitan Waterworks and Sewerage Systems(MWSS), Tourism Infrastructure and Enterprise zone Authority(TIEZA))

Operational Issues Customer service issues Rate adjustments Achieving KPI( Key performance indicators) Congressional inquiries/hearings Financial Concerns( Inflation rates, Foreign currency

adjustments Discount rates)

High operational efficiency of the company. Meeting all key performance indicators. Schemes in accordance to government policies and

standards. Rates are adjusted according to economic

conditions.

High

National Government Agencies and Regulators

Policy/governance concerns Water Resource management Rate adjustments

Maintaining all government policies and standards Effective resource management of lakes and rivers Rate adjustment according to economic conditions More income in forms of taxes Equal and fair distribution of water as a resource Providing basic rights such as water, food and

shelter to its citizens.

High

Stakeholders – Contd.Non-Government organizations

Uplifting of socio-economic conditions Service interruptions Hygiene conditions in the community Water availability and effective water management Project partnerships

Equal distribution of water to all. Better living conditions Partnering with organizations to increase funds

and reach.

High

Shareholders/ Finance Community

Finance and operating performance Risk analysis and management Growth initiative and expansion plans Environmental and social safeguards

Annual reports showing profits and expansion plans

Timely Sustainability report Timely disclosures of company performance and

key decisions

High

Media New business and service operations Service reliability Investor relations and disclosures Response to disaster Ecological footprint of the company Tariffs Company policies and standards

Public information of issues and concerns Advertisements and publications showing service

offerings and benefits

medium

Academe More work opportunities Availability of Trainings internships and seminars Increasing knowledge about environmental issues and concerns

More job openings Frequent seminars and trainings to increase skill

level.

Low

International agencies and Donor organizations

Increasing global issues such as sanitation clean water poverty hunger Eradication of world issue Providing support to developing nations to help

eradicate these problems

Medium

Stakeholders - ContdVendors More profitable business opportunities

Complying with company standards and policies Attractive prices for services. Frequent trainings and seminars regarding

company standards and policies Recognition system for quality service

High

Local Government Units

Right of way issues Alignment of work programs Issues with plans and schedules Allocation of existing resources e.g. Pipes

Company working in sync with the plans and schedules of the local government

Sharing of company resources

High

Private Companies and Organization

Effective CSR opportunities

Having a social and ecological impact on the society

Low

Supply Chain Minimum accreditation requirements and schedules Project pipelines New procurement policies

Instituting better technology and standards in the supply chain to reduce effort

Regular Training Vendor and safety forms

Medium

Systems ViewManila Water is a key component of the water ecosystem

LGU

Academe

Private Companies

Shareholders

Donor Organization

Environment

Watly – A disruptive technologyWater: Desalinates Ocean Water to drinkable water

Electricity: Doesn't need to be connected to an electric grid. Watly produces off-grid electricity

Communications: Powerful communication device that can collect and send any kind of data (to the Internet

IMPLEMENTATION SYSTEMS AND FEEDBACK LOOPS 

Government Regulations

Watly Economy

Water supply systems

Consumers at center

Services

Government

Watly

Water Bonds

BOP

Value in disruptive system

• Manilla currently offers water at $1.25 for the low income consumers• Our technology proposes $.60 providing a 52% cost reduction.• Easy to integrate with current water provide• Disruptive technology offered by Watly targets low income

populations• Bonds repayable over 25 years with convenient repayment terms

Thank youDream Team Consultants

Appendix

Private–Public partnership to improve the water service

What is the right Water Rates calculate strategy

Two basic premises:● All water drawn from the water system must be accounted and paid ● Rates must be high enough to meet the financial requirements of the district (for self-sufficiency), but low enough to be within the ability to pay of the majority of users (for public service). • A good rate strategy should consider the following factors:

Ability to pay of the users - socio economic condition in the district. Cash requirements of the district - operational expenses and capital investment. Enforceability of the rates - can be justified and made acceptable to the public. Availability of reliable data - basis of realistic computations. A good rate structure should combine the following chief characteristics: Revenue oriented, which gives primary consideration to financial requirements. Service oriented, which is primarily designed to favor the low income group.

Two general water rate calculate methodsREVENUE-UNIT METHOD (RUM) Revenue Units (RU) = Higher Minimum Charge (MC) + Uniform Commodity Charge (CC) (regardless of consumption) Application: • Most applicable to newly-formed water districts.

More applicable to districts with lesser concessionaires and with abundant water supply.Applies the cross-customer subsidy in the first 10 cu.m. of consumption in the form of minimum charge, based on the size of connection.Applies a low uniform commodity charge regardless of consumption rate.The effective cost of water tends to decrease as consumption increases.

QUANTITY-BLOCK METHOD (QBM) • High levels of consumption would have higher costs• It is less revenue oriented and more public-service oriented than RUM• This method quantity blocks (QB, 10 cu.m/per block) pay uniform unit price per block + per block * assigned conversion factors • The effective cost of water tends to increase as consumption rate.

Do Government take too much tax???

n