MWSS, Manila Water, Maynilad observe 20th year of successful PPP

The Metropolitan Waterworks and Sewerage System (MWSS) marked on August 2 the 20th year since it privatized the water supply under successful Private Public Partnership (PPP) with two concessionaires under the administration of former President Fidel V. Ramos.

Stressing the success of the PPP framework in efficiently providing potable water in Metro Manila, MWSS Administrator Reynaldo V. Velasco said that in August, 1997, the Ramos administration entered into a 25-year Concession Agreement with two private consortia comprised of international and local partners that shifted the operational responsibilities of MWSS to Maynilad Water Services, Inc. (for the West Zone) and Manila Water Company, Inc. (for the East Zone).

Looking back, Velasco noted the following conditions before MWSS went into PPP saying, "There was generally poor service coverage all over the metropolis which was only 69% of the service area; unaccounted for water more than 70 percent; inefficient service with low water pressure and limited water availability; high non-water revenue; and minimal sewerage coverage. These problems, aside from rigid procurement procedures resulting in delays in project implementation and inefficient."

The MWSS chief said the Filipino people particularly Metro Manila residents owe a debt of gratitude to FVR for his "master stroke of a genius in privatizing MWSS" for without which we cannot have achieved: a) a 96 percent expanded service delivery in terms of population coverage and water availability; b) increased operational efficiency with dramatic reductions in “non-revenue” water 69 percent down to percent by Manila Water and 30 percent by Maynilad; c) reduced reliance on national government to fund MWSS shortfall/capital expenditures, 4) sewerage services improved by new wastewater and sewerage treatment plants throughout Metro Manila.”

Also celebrating its 20th year is the Ayala-owned Manila Water Company, Inc., that provides water treatment, water distribution, sewerage, and sanitation services to residential, commercial, industrial, and semi-business customers in the Philippines.

It serves a population of approximately 6.3 million people in the East Zone encompassing 23 cities and municipalities, including Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, Quezon City, and Manila, as well as various towns of Rizal.

The company also offers pipe-laying and integrated used water services, as well as sells purified water in selected areas in Metro Manila; bulk water in the province of Cebu; as well as managing and operating water systems in Cavite, Clark, Boracay, Tagum, Zamboanga, among others.

In a recent July water conference in Singapore, the MWSS cited Manila Water and its president Ferdinand M. dela Cruz not only for its performance as a concessionaire over the last 20 years and for continously exporting the successful Private Public Partnership (PPP) legal framework to other ASEAN countries like Vietnam, Indonesia and Myanmar.

Technically, Maynilad is also now on its 20th year of operations after the consortium of Benpres Holdings Corporation and Suez Lyonnaise de Eaux won the exclusive right to provide water and wastewater services in the West Zone of Metropolitan Manila.

On January 24 2007, DMCI-MPIC Water Company, a joint venture between Metro Pacific Investments Corporation (MPIC) and DMCI Holdings, Inc. (DMCI) took over Maynilad and launched an aggressive five-year investment program to rehabilitate the company and its operations.

In 2013, Marubeni Corporation of Japan acquired a 20% stake in DMCI-MPIC Water Company and became a strategic partner of the Metro Pacific-DMCI consortium.

According to President Ramoncito Fernandez, since its re-privatization, Maynilad has spent over P47 billion to improve and expand its water services. As a result, over 9 million people in Valenzuela City down to Cavite City are now enjoying safe, reliable water supply.