1. 1 THE MANILA WATER STORY Virgilio C. Rivera, Jr. Group Director, Regulatory and Corporate Development Overcoming Obstacles to Serving the Urban Poor

2. 2  Public-Private Partnership  Progressive Regulatory Framework  Obstacles / Solutions to Serving the Urban Poor  Future Plans  Summary Outline

3. 3 East Zone West Zone Metropolitan Waterworks and Sewerage System (MWSS) Manila Public – Private Partnership 1997 Privatization

4. 4 Source : Asian Development Bank 1996 Data CityPopulation Water Availability Water Coverage Non- Revenue Water Staff/1000 Connections (million)(hrs/day)(% of pop) (% of prod) Manila East (1996)3.11658639.8 Singapore3.02410072.0 Hong Kong6.324100362.8 Seoul10.624100352.3 K. Lumpur1.424100361.4 Bangkok7.32482384.6 Manila East (2008)5.62499201.6 Public – Private Partnership Manila vs Asian Cities

5. 5 Public Concession Agreement Service Obligations Reimbursement of prudent costs + reasonable return MWSS Operating Expenditures Capital Expenditures Progressive Regulatory Framework Concession Framework Water Supply Sewerage/Sanitation Customer Service

6. 6 Obstacles to Serving the Urban Poor

7. 7 Obstacles to Serving the Urban Poor East Zone Supply Side Network / Technical Constraints Financial Constraints Demand Side Affordability Social / Institutional Constraints VENDED WATER

8. 8 Solutions to Serving the Urban Poor

9. 9 Organizational Solutions Social & Environmental Commitments aligned with Business Goals PERFECT ALIGNMENT BUSINESS GOALS SOCIAL/ENVIRONMENTAL OBJECTIVES

10. 10 Organizational Solutions Decentralization / Empowerment Service Areas Balara Marikina Cubao San Juan/ Mandaluyong Pasig Makati Taguig / Antipolo

11. 11 3.1 MILLION CUSTOMERS 1997 24 hours13-23 hours0-12 hours 26%99% 2008 5.6 MILLION CUSTOMERS Impact on Quality of Lives

12. 12 Technical Solutions Water for Low-Income Communities Population served, millions 0.5 1 1.5 Additional 100,000 population per year

13. 13 Financial Solutions Increased Access to Basic Infrastructure and Social Services Longer Payment Terms US$ 5.0 US$ 2.0 Connection Fees per month + current charges

14. 14 Local Government Support Enhanced Community Engagement Additional Investments from Tax Incentives Faster Permit Acquisition Land Donation for Major Facilities

15. 15 Future Plans

16. 16 Water Supply Expansion

17. 17 Environmental – Wastewater Expansion

18. 18 Next Challenge: Base of the Pyramid Initiatives

19. 19 Summary 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

20. 20 THANK YOU