1. 1 THE MANILA WATER EXPERIENCE Virgilio C. Rivera, Jr. Group Director, Regulatory and Corporate Development Delivery of Water and Sanitation Services

2. 2  Regulatory Framework  Delivery Options for Water and Sanitation Services  Performance Standards- Water and Sanitation  Future Plans  Conclusion Outline

3. 3 East Zone West Zone Metropolitan Waterworks and Sewerage System (MWSS) Manila 25-Year Concession 1997 Privatization Public – Private Partnership

4. 4 Service Area of Manila Water  Covers all new business centers in Metro Manila and is focal point of population growth  Population of approximately 5.3 million Industrial Parks Poor Communities

5. 5 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

6. 6 Public Concession Agreement Service Obligations Reimbursement of prudent costs + reasonable return MWSS Operating Expenditures Capital Expenditures Water Supply Sewerage / Sanitation Customer Service Progressive Regulatory Framework Concession Framework

7. 7 3.1 MILLION CUSTOMERS 1997 24 hours13-23 hours0-12 hours 26%99% 2008 5.6 MILLION CUSTOMERS Impact on Quality of Lives

8. 8 Water for Low Income Communities Population served, millions 0.5 1 1.5 Additional 100,000 population per year

9. 9 VERY GOODGOOD SOURCE: Performance Ratings, Univ. of the Phils. National Engineering Center 2006 308 Communities surveyed 2003 188 Communities surveyed 2001 37 Communities surveyed 2008 307 Communities surveyed Customer Affirmation of Good Performance

10. 10 Improved Sewerage

11. 11 Expanded Sewerage Coverage

12. 12 Septage Management

13. 13 ~500K households served Cleaned 5 out of 10 septic tanks

14. 14 Key Indicators Target EO 2008 Performance EO 2008 STATUS Domestic Connections (‘000) 589640 Water Quality @ Plant Outlet 100% Water Quality in Distribution 95%100% Sampling100%107% Sewer Connections2,974*4,100 Deslugding of Septic Tanks 47,72358,383 Non-revenue water25%20% * Target for combined sewer Key Performance Indicators

15. 15 Key Indicators Target EO 2008 Performance EO 2008 STATUS Billed Volume ( mcm ) 387388 Collection Efficiency95%97% Labor ( in million pesos ) 9811,001 Power ( million KwH ) 7671 Total Controllable OPEX ( in million Pesos ) 971826 Business Efficiency Measures

16. 16 1 million population FUTUREHISTORICAL 3 5 million Water Supply Expansion

17. 17 San Juan River Catchment Marikina River Catchment Pasig River Catchment 16% 30% 100% 3% 1997 2008 2010 2018 $1.2B Wastewater Expansion

18. 18 Wastewater Treatment Plant Combined Sewer-Drainage Lines River Treated Water Interceptor System Overflow System during rainy season Combined Sewer-Drainage System

19. 19 Conclusion  Progressive regulatory framework anchored on incentives is key  Alignment of business and social objectives for sustainability  Flexible management model based on decentralized set-up and employee empowerment

20. 20 THANK YOU