Manila Water

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Manila Water
Type Private (PSE: MWC)
Founded Quezon City, Philippines
Headquarters Quezon City, Philippines
Key people Fernando Zobel de Ayala, Chairman
Gerardo Ablaza, President and CEO
Products Water Delivery
Sewerage and Sanitation
Net income PHP3.23 billion (Increase16%) (2009) [1]
Website www.manilawater.com
Logo used from 1997-2013

The Manila Water Company, Inc. is the sole provider of water and wastewater services to more than six million people in the East Zone of Metro Manila. It is a subsidiary of the country's oldest conglomerate Ayala Corporation in partnership with British and Japanese investors.

Incorporated on January 6, 1997, Manila Water, as it is more commonly known, commenced operations on January 1, 2000, and became a publicly listed company on March 18, 2005. It is the east concessionaire of Metropolitan Waterworks and Sewerage System during its privatization on August 1, 1997, with its counterpart Maynilad Water Services, Inc. as the west concessionaire. The 25-year water concession agreement inked with MWSS is expected to terminate in 2022.

Service Areas[edit]

Manila Water's service areas, in blue.

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

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

Company officials and officers[edit]

  • Board of Directors
    • Fernando Zobel de Ayala - Chairman of the Board
    • Jaime Agusto Zobel de Ayala - Vice Chairman
    • Gerardo C. Ablaza, Jr. - President
    • Antonio T. Aquino - Director
    • Delfin L. Lazaro - Director
    • Thomas Keevil - Director
    • Keechi Asai - Director
    • John Eric T. Francia - Director
    • Jose L. Cuisia, Jr. - Independent director
    • Oscar S. Reyes - Independent director
  • Executive Officers
    • Gerardo C. Ablaza, Jr. - President and Chief Executive Officer
    • Luis Juan B. Oreta - Chief Finance Officer and Treasurer
    • Virgilio C. Rivera, Jr. - Group Director, Corporate Strategic Development
    • Rodell A. Garcia - Group Director, Information Technology
    • Ruel T. Maranan - Group Director, Corporate Human Resources
    • Geodino V. Carpio - Group Director, Operations
    • Abelardo P. Basilio - Group Director, Strategic Asset Management
    • Ferdinand M. dela Cruz - Group Director, East Zone Business Operations & Corporate Strategic Affairs
  • Official Spokesperson
    • Jeric T. Sevilla - Head, Corporate Communications

Ownership structure[edit]

  • Ayala Corporation - 32.07%
  • Mitsubishi Corporation - 8.31%
  • International Finance Corporation - 6.04%
  • First State Investment Management (UK) Limited,
  • First State Investment International Limited, and
  • First State Investment (Hong Kong) Limited - 9.7%
  • Philwater Holdings Company, Inc.

Sister water companies[edit]

  • Manila Water International Solutions, Inc
  • Manila Water Total Solutions, Corp.
  • Manila Water Asia Pacific, Pte. Ltd.
  • Manila Water South Asia Holdings, Pte. Ltd.
  • AAA Water Corporation
  • Laguna AAA Water Corporation
  • Northern Waterworks and Rivers Cebu, Inc.
  • Boracay Island Water Company, Inc.

Service Improvements[edit]

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[edit]

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[edit]

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 cities of Santa Rosa, 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]

In February 2012, Manila Water disclosed that its consortium with partners Viscal Development Corp. and Stateland Inc. has been awarded the bulk water system project of Cebu. The provincial government of Cebu and the consortium will jointly undertake the project that will help meet the water needs of the northern and central areas of the province.[11]

See also[edit]

Water privatization in the Philippines

External links[edit]

References[edit]

  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
  11. ^ "Manila Water bags P700M Cebu water project," Riza Olchondra, Philippine Daily Inquirer, February 6, 2012