Manila Water details plans for El Niño, identifies areas for international expansion

East zone concessionaire Manila Water Company Inc. is gearing up for the impact of the El Niño phenomenon on the local front, while its looks at potential overseas investment opportunities in areas such as South America in line with its expansion plans.

According to Manila Water president and chief executive officer Jose Victor Emmanuel “Jocot” de Dios, the firm has already started to diversify its water sources away from Angat Dam — which supplies 95% of Metro Manila’s demand —  in preparation for the expected El Niño.

The state weather bureau last week said the start of El Niño — characterized by the abnormal warming of the sea surface temperature and below-normal rainfall — may be officially declared in July, should the pattern seen from April to June persist.

Among Manila Water’s alternative water sources are its Cardona Water Treatment Plant with 100 million liters per day (MLD) and the Marikina Portable Treatment Plant.

It is also finalizing the 50 MLD treatment facility in the East Bay set to be finished by October, and the 80 MLD Calawis Project in Antipolo.

“That’s pretty much the first, I guess, salvo into it over the next couple of months until the summer of next year when we will feel the effects potentially of the El Ni?o further in the summer,” he said in a webinar hosted by BPI Trade uploaded on Facebook.

For the longer term, Manila Water is looking at an additional 200 MLD from the East Bay Phase 2 targeted to be completed by the end of 2024 or the first quarter of 2025, and an additional 4438 MLD from the Upper Wawa, with the initial 220 MLD seen by the end of 2025 or early 2026.

It is also targeting potentially another 300 MLD from its share of the Kaliwa Dam where construction activities have already started.

“I’ve asked the teams to actually see how we can also use, re-use water from the sewage treatment plants that we operate. We currently have 150 MLD of what that we throw into the rivers,” De Dios said.

“Actually based on our studies, it’s actually cleaner than the river so similar to Singapore, that's what we do,” he added.

The Razon-led firm has the exclusive right to provide water and used water services to the east zone of the franchise area of the Metropolitan Waterworks and Sewerage System (MWSS), which services 23 cities and municipalities in Metro Manila and Rizal.

These include Mandaluyong, Makati, Pasig, Pateros, San Juan, Taguig, Marikina, and parts of Quezon City and Manila. The towns of Angono, Baras, Binangonan, Cainta, Cardona, Jalajala, Morong, Pililia, Rodriguez, Tanay, Taytay, Teresa, San Mateo, and Antipolo in the province of Rizal are also part of the East Zone.

The company is set to increase rates until it reaches P20.37 per cubic meter in 2027, given the expenses undertaken to improve services. Maynilad Water Services Inc. is also set to hike rates during the time period.

International expansion

In terms of international expansion, de Dios said the firm is looking at areas where the firm can continue to act as an owner-operator and be in a position where it can consolidate.

“There are a few that we’re looking at, but these things take time. The water sector’s fairly engaged, but there’s a lot of activity and I guess the fact that we have something like our cousins in the port business makes it easier for us to actually understand the nuances of each particular market,” he said.

“We’re taking a look at the Middle East, we’re looking at South America, Latin America, so there’s a couple of things that we’re looking at. By no stretch of imagination can we say that they’re done deals coming along,” he added.

Chief administrative officer and head for international business Roberto Jose Locsin earlier said the firm is looking at expanding its businesses in areas where International Container Services Inc. (ICTSI), another member of the Razon Group, has a presence.

Aside from these, De Dios said Manila Water is also looking at expanding its reach in Thailand, Indonesia, and Vietnam, where it already has a presence.

“That’s pretty much how we’re assessing it, having a bit more control of these operations as we come into new developments will allow us to maybe chart the destinies of these investments in a better way to reach to changing demands and changing weather patterns,” he said. — RSJ, GMA Integrated News