Manila Water reduces systems losses from 63% to 37%

Ayala-controlled utility firm Manila Water Corp. has brought down the systems losses in its service area to 37 percent, a reduction of 26 percentage points from a high of 63 percent in 1997.

This was attributed to a major network expansion and pipe replacement program spread over the past seven years, costing some P9 billion.

"Our accomplishment in bringing down systems losses was the result of a carefully planned and tightly managed capital investment program," Manila Water president Antonino T. Aquino said.

Aquino said the company’s strategy which involved the comprehensive replacement of the pipelines throughout the east zone proved highly effective in reducing leaks and pilferage and improving service to customers.

Manila Water, which supplies drinking water to over five million people, brought down its non-revenue water (NRW) by as much as six percentage points from 43.6 percent in January.

The landmark NRW level is roughly equivalent to over 400 million liters per day (mld) saved since the MWSS (Metropolitan Waterworks and Sewerage System) privatized the east and west zone concessions and brings Metro Manila closer to the NRW levels in neighboring Asian cities like Kuala Lumpur, Jakarta and Bangkok. It is also significantly lower than the 43 percent NRW bar that the MWSS Regulatory Office has set for Manila Water by the end of 2005.

This year, the company is spending over P4 billion to replace and lay over 200 kilometers of pipelines throughout the east zone consisting of Quezon City, Makati, San Juan, Mandaluyong, Marikina, Taguig Pateros, San Andres and Sta. Ana in Manila, and the

Rizal towns of Cainta, Taytay, San Mateo, Antipolo, Baras, Binangonan, Angono and Jala-Jala.

Over a five-year period, Manila Water will invest a total of P20 billion to further reduce leakages and finance expansion projects in the eastern portion of Metro Manila, as well as in other parts of the country.

In the first quarter this year, Manila Water posted a net income of P484 million, up 57 percent from P309 million in the same period last year, mainly due to significant growth in volume of water delivered to its customers and steady reduction in water losses.

Billed volume rose nine percent to mld from only 769 mld the previous level.

"We expect to continue our aggressive expansion program focused mainly on further reducing our NRW as well as expanding service coverage particularly to Montalban, Rizal, Taguig and Pateros and ultimately achieve 24-hour supply coverage within the central distribution system," Aquino said.