Water, Urban and Disaster Management:

The Manila Water Experience

VIRGILIO C. RIVERA, JR
Group Director
Regulation and Corporate Development
February 2, 2011

Securing
Securingthe
the Future Today
Future Today
Key Messages

Manila Water has a solid operating and management track record as the
concessionaire of the East Zone of Metro Manila since 1997.

Metro Manila was badly hit by typhoon Ketsana last September 2009.

Manila Water ensured the organizations capacity for risk mitigation,

preparedness and response through a Business Continuity Program.

Manila Water has been successful and efficient in ensuring the continuity of
operations and service delivery to customers.

Manila Water will continue to be prepared and resilient at times of disasters

through the continuous implementation of business continuity plans.

2
About Manila Water
East Zone,
Metro Manila,
Philippines

Shareholder Structure SEP 2010 FIGURES

*P44/USD
Ayala Corp 43.3% MARKET CAP: $877M
Mitsubishi Corp 7.0% REVENUES: $189M
NET INCOME: $67M
IFC 5.2%
Public 44.5% Publicly listed in the Philippine Stock
Exchange (PSE) since 2005

3
Conditions before Privatization
Illegal Connections Leaks

POOR
SERVICE

Low water pressure to

Low Water Pressure no water No Water
4
Conditions before Privatization

WATER SUPPLY AVAILABILITY:

3.1M Customers 1000 mld
in System
Losses
Only 26%
Had access to
24/7
water supply

LOW SANITATION!

5
1997 Regulatory Reform PPP"
NATIONAL WATER CRISIS ACT

Metropolitan Waterworks and

Sewerage System (MWSS)
Metro Manila,
Philippines
CONCESSION
AGREEMENT

WEST ZONE
EAST ZONE

6
Decentralization and Customer focus
through Territory Management

SUPPLY ZONE 1

DMZ 1

SUPPLY
ZONE 2

8 BUSINESS AREAS SUPPLY

ZONE 3
DMZ 2 1
3 2

5
4 9 7
11

36 BUSINESS ZONES
9 10

12 13

260 DEMAND
MONITORING ZONES 1,663
(DMZs) DISTRICT
METERING AREAS
(DMAs)

7
Reduction in Non-Revenue Water (NRW)
in % NRW
63% Reduced 611 mld
(82% savings)

11.1%

2010
DEC

8
More Water Delivered to Customers
in Million Liters per Day 1,254

440
2010
DEC

9
Access to 24-Hour Water Supply
1997 2010

3.1 MILLION CUSTOMERS 6.1 MILLION CUSTOMERS

26% 99%

24 hours 13-23 hours 0-12 hours

10
Building Communities: Affordable Water

US$ 3.00-5.00

VENDED WATER

US$ 0.34/m3
Monthly bill of Manila Water
customers
from the low-income households
US$ 1.60

1 PHP = 44 USD

11
Public Assessment of Water Services (PAWS)

12
Manila East Zone: Before and After

Non-
Water Water
Population Revenue Staff/1000
Availability Coverage
(Million) Water Connections
(hrs/day) (% of Pop)
(% of Prod)

1996 3.1 16 58 63 9.8

2010 Dec 6.1 24 99 11.1 1.4

13
Global Recognition of Performance

2010 2010
IWA Global Water Global Water
Awards 2007
Awards

Operations/ Client
Water Efficiency Leadership
Management Project
Category Award
of the Year

Operating Efficiency Water for the Urban Poor

14
Key Messages

Manila Water has a solid operating and management track record as the
concessionaire of the East Zone of Metro Manila since 1997.

Metro Manila was badly hit by typhoon Ketsana last September 2009.

Manila Water ensured the organizations capacity for risk mitigation,

preparedness and response through a Business Continuity Program.

Manila Water has been successful and efficient in ensuring the continuity of
operations and service delivery to customers.

Manila Water will continue to be prepared and resilient at times of disasters

through the continuous implementation of business continuity plans.

15
TYPHOON KETSANA
 70% of
MWC
Employees
Affected
*1,120
 68,000
Water Service
Connections
interrupted
8 out of 19
Facilities
Submerged
in Water

Brookside Pumping Station & Reservoir

(Cainta, Rizal)
Key Messages

Manila Water has a solid operating and management track record as the
concessionaire of the East Zone of Metro Manila since 1997.

Metro Manila was badly hit by typhoon Ketsana last September 2009.

Manila Water ensured the organizations capacity for risk mitigation,

preparedness and response through a Business Continuity Program.

Manila Water has been successful and efficient in ensuring the continuity of
operations and service delivery to customers.

Manila Water will continue to be prepared and resilient at times of disasters

through the continuous implementation of business continuity plans.

20
Business Continuity Framework
TOP MANAGEMENT

BUSINESS CONTINUITY MANAGER

CLUSTERS

Corporate Technical, Logistics, Network Management /

Finance Vendors Customer Support

Facility Management Incident Management Corporate Resources

Support Support Group

EAST ZONE BUSINESS OPERATIONS and FACILITY

INCIDENT MANAGEMENT RESPONSE TEAMS
Business Continuity Focus Areas

RISK CONTINGENCY INCIDENT

MANAGEMENT PLANNING MANAGEMENT

Identification of Implementation of Ensures quick and

operational risks and capacity-building effective incident
corresponding activities for response
mitigation strategies continuous skills through the
upgrade in preparing allocation of
for and handling resources and
disasters coordination among
business units and
external stakeholders
Key Messages

Manila Water has a good operations and management track record as the
concessionaire of the East Zone of Metro Manila in the Philippines since 1997.

Metro Manila was badly hit by typhoon Ketsana last September 2010.

Manila Water ensured the organizations capacity for risk mitigation,

preparedness and response through a Business Continuity Program.

Manila Water has been successful and efficient in ensuring the continuity of
operations and service delivery to customers.

Manila Water will continue to be prepared and resilient at times of disasters

through the continuous implementation of business continuity plans.

23
Crisis Communication Plan

Job 1: Communicating with Employees

PROACTIVE
Press conferences, media updates and COMMUNICATION
attendance to National Disaster RESPONSE
Coordinating Council meetings TO HELP AFFECTED
24/7 Customer Hotline EMPLOYEES AND CUSTOMERS
Water provision during the typhoon

WATER RATIONING THROUGH TANKERS

Water provision during the typhoon

DISTRIBUTION OF BOTTLED WATER

Deployment of Mobile Treatment Plants

CONVERTING FLOOD WATER TO POTABLE WATER

THROUGH REVERSE OSMOSIS
Deployment of Water Tanks

PROVIDE A STEADY SUPPLY OF CLEAN WATER FOR EVACUEES

TO CARRY OUT THEIR DAILY ACTIVITIES
Deployment of Mobile Showers

FREE SHOWER AND TOILETRIES

Volunteerism among unaffected employees

DONATION AND DISTRIBUTION OF RELIEF GOODS

Key Messages

Manila Water has a good operations and management track record as the
concessionaire of the East Zone of Metro Manila in the Philippines since 1997.

Metro Manila was badly hit by typhoon Ketsana last September 2010.

Manila Water ensured the organizations capacity for risk mitigation,

preparedness and response through a Business Continuity Program.

Manila Water has been successful and efficient in ensuring the continuity of
operations and service delivery to customers.

Manila Water will continue to be prepared and resilient at times of disasters

through the continuous implementation of business continuity plans.

31
Restoration of Facilities

Sep 27 Oct 3

ROUND-
THE-
CLOCK
REHABILITATION

Flooded
Partially Affected
Unaffected
40% affected 100% restored
Restored

in 7 days
Restoration of Water Service Connections

Sep 27 Oct 3

ROUND-
THE-
CLOCK
REHABILITATION

No Water
Unaffected 89 communities 99% restored
Restored affected
in 9 days
Key Messages

Manila Water has a solid operating and management track record as the
concessionaire of the East Zone of Metro Manila since 1997.

Metro Manila was badly hit by typhoon Ketsana last September 2009.

Manila Water ensured the organizations capacity for risk mitigation,

preparedness and response through a Business Continuity Program.

Manila Water has been successful and efficient in ensuring the continuity of
operations and service delivery to customers.

Manila Water will continue to be prepared and resilient at times of disasters

through the continuous implementation of business continuity plans.

34
Climate and Earthquake Proofing of Assets

REHABILITATION OF EXISTING FACILITIES AND ADAPTIVE ARCHITECTURE

35
Rehabilitation of the Marikina Watershed

MOA WITH DENR: COMMITMENT TO REFOREST 1,000 Has.

*The 24-hour amount of rainfall overtook the 344 mm
level recorded on a 24-hour period on June 7, 1967

36
Organization-wide Emergency Drills and Measures

A DISASTER-READY ORGANIZATION

37
Continuous Training and Planning

WELL INFORMED
AND PREPARED
COMMUNITY

38
Closing thoughts

13 Years of solid operating performance and management system enabled

Manila Water to deliver reliable service even during times of disasters.

Through its Business Continuity Program, Manila Water ensured the

organizations capacity for risk mitigation, preparedness and effective response
at times of disasters.

Community and Organization-wide involvement is key to execute an effective

disaster management strategy.

Strategic Risk Management is imperative to establish preparedness and

resiliency during times of disasters.

39
The Manila Water Vision

Our vision is to become a leader

in the provision of water, wastewater, and other environmental
services which will

Empower Protect the and Enhance

People, Environment, Sustainable
Development.

40
THANK YOU

Securing the Future Today