Manila Water Company: Improving Water and Wastewater Services
Transcription
Manila Water Company: Improving Water and Wastewater Services
Asia • Philippines Manila Water Company: Improving Water and Wastewater Services for the Urban Poor Prepared by • Jane Comeault (Canada) Sector • Water Enterprise Class • Southern MNC Summary Manila Water Company, Inc. (Manila Water) is a water and wastewater concessionaire operating in the east service zone of Metro Manila. Since assuming operations in 1997, Manila Water has connected over 140,000 low-income households to the piped water system and provided access to clean water to over 860,000 low-income individuals. At the same time, Manila Water has improved water and wastewater services throughout their entire service area in terms of service coverage, reliability, customer service and water quality. The case examines the special challenges and opportunities of delivering water and wastewater services to the urban poor and the innovative approaches that Manila Water has adopted to expand coverage and protect the watershed from which the water is sourced. Positive Outcomes for the Poor Increased access to high-quality water at a lower cost than previously paid to small scale water providers Improved water service including: better reliability of water supply, higher pressure, more convenient connections Improved access to sanitation services for water customers Key Barriers Requirement of land title or lease agreement is typical for utility connection, and prohibitive for accessing the poor Up-front cost of service connections can be unaffordable for the poor Prescriptive contractual arrangements can stagnate innovation Poor communities are often perceived to have a lack of ability to pay for services Poor communities can be situated in areas that are physically difficult to service Key Innovations Non-mandatory land title or lease agreement to get a water connection to piped service Provision for instalment payments for water connections, smoothing the up-front cost and thus making it more affordable to all Concession Agreement designed with incentives for outcomes instead of inputs which encourages innovation that matches consumer preferences and Concessionaire capabilities Concession Agreement allows for third party providers to contribute to the coverage targets Flexible business model for serving poor communities employed, including partnerships with community groups and alternative water providers Case Study • Manila Water: Improving Water and Wastewater Services for the Urban Poor 2 Opportunities & Challenges for Scaling Up Block structured tariff was designed to benefit the poor, assuming that the poor consume less water. However, customers using communal meters incur higher consumption and higher overall tariffs Communal meters run by community based organizations or others include an administrative fee not paid by customers directly connected to MWSS The terms of the Concession Agreement could go further to promote competition by allowing small scale water operators to provide services without the agreement of the Concessionaire Manila Water is looking for opportunities to grow outside of the East zone of Metro Manila. Other companies could also replicate the model in other jurisdictions Case Study • Manila Water: Improving Water and Wastewater Services for the Urban Poor 3