Double-digit NRW for Manila Water

Razon-led Manila Water Co. Inc. has managed to keep its non-revenue water (NRW) below 15 percent for its East Zone water concession as it continues to invest in the implementation of its service improvement plan to develop new water sources to meet the demand of an increasing population and urbanization and to keep water losses at world-class levels of below 15 percent.

This was the assurance issued by Manila Water this week as it vowed to remain steadfast in its commitment to ensure a 24/7 supply in its service areas all over the country despite the challenges of climate change and the onset of the summer season, which is expected to increase water demand.

The East Zone concession is a 1,400-square-kilometer area that covers 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, Pililla, Rodriguez, Tanay, Taytay, Teresa, San Mateo and Antipolo in the province of Rizal are also part of the East Zone.

Enrique Razon Jr. officially took control of Manila Water from the Ayala Group in June 2021. This transition followed a subscription agreement that granted Razon’s Trident Water, a subsidiary of Prime Strategic Holdings, a majority voting interest in the company.

Trident initially invested P10.7 billion in Manila Water, giving Razon a 51 percent voting interest, while Ayala Corp. retained a 31.6 percent voting interest. However, in May 2024, the Ayala Group divested its remaining stake in Manila Water to Razon for P14.5 billion.

Razon is now the chairman, president and chief executive officer of Manila Water.

Boracay Water, an operating unit of Manila Water Philippine Ventures and a concessionaire of the Tourism Infrastructure and Enterprise Zone Authority in Boracay Island, also recently reported that its NRW was lowered to 19 percent as of last year from its previous high of 30 percent in 2022.

According to the Razon-led water firm, reducing NRW is a top priority for Philippine water operators striving for operational efficiency and sustainability.

Through targeted efforts in leak detection, pipe replacements and real-time monitoring, Boracay Water’s success in reducing its NRW to 19 percent translates to an additional 1.075 million liters of water recovered daily, benefiting an additional 7,500 residents and businesses while alleviating pressure on the Nabaoy River, Boracay’s sole freshwater source.

Manila Water reported that it invested P26.3 billion in 2024 to enhance water and wastewater services for its over nine million customers across the Philippines.

The East Zone concession accounted for P23.6 billion of the P26.3 billion, or 90 percent of the group-wide capital expenditure, with a significant portion spent on water supply augmentation projects, including P7.6 billion for the East Bay Phase 2 200-MLD (million-liters-per-day) water treatment plant and the 3.4-kilometer long-term East 3 Ruhale-Bambang Felix Line.

The Wawa-Calawis Phase 2 project cost P5.6 billion, which will provide an additional 518 MLD to Antipolo, Teresa, Baras and parts of Metro Manila.

To retrofit and upgrade the East Avenue Sewage Treatment Plant with cutting-edge biological nutrient removal (BNR) technology, Manila Water spent 1.2 billion, which also included other water supply reliability projects and maintaining common-purpose facilities.

Manila Water also invested P1.5 billion in the ongoing construction of the 53-kilometer Mandaluyong-West Sewer Network Project, which will benefit 700,000 customers in Mandaluyong, San Juan, and Quezon City by 2037. The sewer network project involves a 60-MLD sewage treatment plant.

Another P1.2 billion was allocated for the development of wastewater services in Rizal, including the Hinulugang Taktak and the San Mateo-Rodriguez sewerage systems, while P6.5 billion was allocated for various wastewater system upgrades and improvements, including the Taguig North Sewerage System, Ilugin Sewage Treatment Plant, and the implementation of BNR technology in wastewater treatment processes.

For the Razon group’s other water concessions, a total of P2.7 billion was spent last year. This included P1.6 billion spent on Estate Water and Laguna Water for the construction of the Canlubang Sugar Estate Transmission Line in Laguna, the development of the Alviera Sewer Treatment Plant (STP) in Pampanga, and the Cresendo Estate Commercial Cistern Project in Tarlac.

Additionally, P600 million was spent on upgrading Boracay Water’s Manoc-Manoc and Balabag STPs to BNR technology and on the design and reassessment of Ilagan Water’s water treatment plant project.

Another P600 million was allocated for the BNR upgrade of Clark Water’s STP and other South Luzon projects.

The reduction of NRW for Manila Water, Boracay Water and the Pangilinan-led West Zone concessionaire Maynilad Water Services Inc. remains problematic as the replacement of aging and damaged pipes is always a major challenge in cities that never had any urban planning and lack adequate documentation of previous infrastructure work. This results in a tangled web of uncoordinated utility, sewerage and flood control projects in often narrow and congested roads and illegal structures, complicated by the need to secure permits and coordinate with local government units and traffic management units.