GEONGJU, Korea—Manila Water is honored to be part of this initiative—the 1st Asia Water Week and Korea International Water Week—to push the water agenda to ensure sustainable urban growth and development. Manila Water is here through the auspices of our partner, the Metro Manila Waterworks and Sewerage System or the MWSS. We strongly support the priority program of (ret.) Gen. Rey Velasco and MWSS to ensure water security for Metro Manìla by building new and large water sources. The updating of the Metro Manìla Water Supply Masterplan is critical to underpin the continued economic development of Metro Manila whose GDP accounts for 37 percent of national output.
Together with MWSS, we just celebrated last month 20 years of a successful public-private partnership. A water PPP model that was able to turn around a water crisis situation in the mid-90’s to the current excellent service of world class standards which is highly recognized in the global water industry. Most importantly, the working Concession Model between the government and the private sector was able to provide access to affordable potable water and sanitation for the urban poor. More than half of the new customers we have added to the customer base we inherited, or over 1.8 million people, came from the marginalized sector who used to buy expensive vended water when service was poor or absent. These customers now enjoy 24/7 piped water and regular sanitation services.
More than 90 percent of the first set of employees of Manìla Water came from MWSS. These talents have adopted well to the private sector and provided the core of the knowledge and technical base for Manila Water. More properly equipped and driven by a strong performance and service culture, this talent base also became a source of technical and social innovation producing homegrown designs and community-based approaches which allowed Manila Water to serve more customers and improve operating efficiencies. As an example, by reducing non-revenue water from 63 percent to 11 percent, we were able to save 700 million liters per day which we used to cover more areas in our concession.
Since eight years ago, we have ventured outside Metro Manìla to replicate the success of the water PPP model in solving urban water issues. We now have operations in several parts of the Philippines. We are one of the largest foreign direct investors in Vietnam where we have a number of water businesses concentrated in the Ho Chi Minh area. We supply almost 50 percent of Ho Chi Minh’s treated water requirements. We have pilot projects in Bandung and Yangon for NRW reduction. Our talent base now includes Vietnamese and Indonesian engineers who have become well versed with our capability set and service culture.
In closing, water PPP can work in many places provided the regulatory framework is clear, transparent and consistent. An output-based scheme is appropriate for the private sector to provide an environment to perform well and in an efficient manner. Water PPP has worked in Metro Manila. It has worked in other parts of the Philippines. It can work in many more places in Asia. Manila Water is a testimony that Asians can solve Asian water issues.
Ferdinand M. dela Cruz is the president of Manila Water Co.