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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
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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
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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
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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
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Opportunities & Challenges for Scaling Up
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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
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