Shortlisted for the 2013 FT/IFC Sustainable Finance Awards
Achievement in Inclusive Business:
Manila Water Company
Company Profile
Manila Water Company provides water and wastewater services. As the private concessionaire of the government-owned Metropolitan Waterworks and Sewerage Systems (MWSS) since 1997, Manila Water serves over 6.2
million people from 23 municipalities of Manila’s East Zone. The company has also expanded to other cities in the Philippines and Vietnam. Manila Water runs a climate change adaptation program and its operations comply with national
and international standards.
Base of the Pyramid Reach
1.7 million people (27% of all customers served); Over 6,600 micro enterprise suppliers provide water and wastewater
systems repair, maintenance, etc.
Challenge
Strategy
▪▪ Crisis in the water distribution network
in Manila in the 1990s - spotty access to
water, leaks in aging mainlines.
▪▪ Government turned over the operations
of water and wastewater systems to the
private sector; Manila Water became
responsible for installing infrastructure
and operations.
▪▪ Affordable rates and flexible payment
schemes for low-income customers.
▪▪ Local and municipal governments reduce
costs by waiving permit fees, providing
small subsidies, or offering construction
labor.
▪▪ Communities participate in water meter
monitoring, payment collection, and
maintenance.
▪▪ With a customer base of 3.1 million, only
26% had access to 24/7 water service
and 3% to sewerage services in 1997.
▪▪ Low-income households relied on water
from public faucets, water tankers, street
vendors or pipes tapped into illegally.
Results
IFC’s Role
▪▪ Over 6.2 million customers including 1.7
million at the BOP served; 24-hour access
in 99% of the distribution area.
▪▪ Between 2003 and 2005, IFC provided
$60 million in long-term debt financing
and $15 million in equity.
▪▪ In the Manila East Zone, EBITDA grew
from a loss in 1997 to Php 10 billion in
2012.
▪▪ Advisory Services helped Manila Water
with corporate governance and its sustainability strategy, marking the first time
a Philippine company publicly disclosed
its environmental and social performance
on an annual basis.
▪▪ 4,611 kilometers of pipelines laid, 38
wastewater facilities constructed, and
water loss reduced from 63% to 12.2%
▪▪ 100% compliance on water quality
standards.
▪▪ IFC’s involvement served as a stamp of
approval supporting the company’s 2005
IPO.
Manila Water’s Inclusive Business Model
Manila Water’s “Tubig Para Sa Barangay” (TPSB) program - or “Water for Poor Communities”- is designed to reach
low-income areas based on a clear business case: underserved, low-income households demonstrate a willingness to
pay for safe, reliable water and connecting them means reaching new markets while reducing costs from inefficiencies
and illegal connections. The TPSB model creates partnerships with local government units and community-based
organizations to include communities in the design and implementation of water supply systems.
By visibly placing water meters in side-by-side arrangements in public areas, meter monitoring becomes easier and the
community can regulate itself as water use and fees become more transparent. In informal settlements or very lowincome areas where land ownership is a problem, bulk metering and cost-sharing programs enforce self-monitoring
through collective responsibility. The community also assigns or elects individuals to administer collections, monitoring,
and maintenance, which supports employment. Manila Water has helped seed fund micro enterprises that provide
services in its supply chain and beyond. These methods help build a sense of local ownership that enhances system
repair, promotes on-time payment, and discourages water pilfering. The company also runs a program to install
washing facilities and drinking fountains in schools, hospitals, jails, markets, and orphanages in underserved areas. For
more information visit www.manilawater.com.