Manila Water eyes other options to enter Indonesia

MANILA, Philippines - Ayala-led utility firm Manila Water Corp. is still setting its sights on Indonesia despite its failed bid to take over water service concessionaire PT PAM Lyonnaise Jaya.

Sources said the company is looking at entering Indonesia by participating in non-revenue water projects and forging bulk water supply agreements. 

To further strengthen its presence overseas, Manila Water is expanding its coverage in Vietnam through its investment in Saigon Water, which is looking to supply bulk water to Ho Chi Minh and surrounding areas in the long-term.

Saigon Water plans to become the first fully-integrated company in the Vietnam water and wastewater infrastructure sector, through the construction of water and wastewater treatment plants and the provision of engineering, operation and management services and other similar activities.

Manila Water’s leakage reduction project in Ho Chi Minh, which started in 2008, has outperformed its target and has benefited 25 percent of the city’s six million population.

On the homefront, the company continues to expand outside the East Zone of Metro Manila, particularly in Laguna, Clark and Cebu to further boost its cashflow.

Its goal is to source 40 percent of its revenues outside Metro Manila in four or five years.  To date, more than 90 percent of its revenues still come from the East Zone, which comprises Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, and most parts of Manila and Quezon City, as well as Rizal province – Angono, Antipolo, Baras, Binangonan, Cardona, Jala-Jala, Morong, Pililia, Rodriguez, San Mateo, Tanay, Taytay and Teresa.

Manila Water also has subsidiaries with projects in Laguna, Pampanga, Boracay and Cebu.

Combined, these businesses serve about eight million Filipinos.

Since it first started operations in 1997, Manila Water has been able to consistently meet and surpass its regulatory and financial targets. Its management has also been very proactive in dealing with issues relating to the water industry, such as the development of new water sources, as well as the management of NRW levels.