Senior Leadership Team

New Picture (21)The Corporate Finance and Governance Group (CFGG) remained focused on its mandate of supporting the Company through the provision of quality service to its internal and external stakeholders, while elevating its standards of service and efficiency. Its platforms in 2017 were anchored on improving enterprise systems and processes, as well as the provision of corporate support for key enterprise projects. CFGG acted as an enabler of the Company’s capital projects by ensuring cost efficiency in procurement, and delivering the optimum cost of borrowing. Furthermore, CFGG shifted its financial information consolidation process to the Business Planning and Consolidation (BPC) System. This allowed the Company to readily consolidate existing businesses and incorporate new businesses in its financial reports. Amidst these improvements, CFGG consistently promulgated good governance, which led to the Company’s recognition as the No. 1 Best Managed Utilities Company in Asia by the regional publication, FinanceAsia. Finally, CFGG led the creation of a shared service unit to be called Business and Technology Services (BTS) which will ensure the delivery of standardized processes and a reliable set of services for identified functions, and more importantly, generate insightful information that will aid business units in its decisionmaking.

In 2018, CFGG, together with BTS and the Corporate Human Resources Group, will be housed under Enterprise Support Services (ESS). ESS will ensure that enterprise functions, programs, and processes are standardized across all subsidiaries of the Manila Water enterprise. Standardization will ensure operational efficiency and compliance in all the business units, thus allowing business development to focus on expanding the Company’s portfolio. ESS will refine the Corporate Restructuring Program to take into account new regulations. This is expected to enable the Company to strengthen the standardization of systems and processes. As Manila Water continues to expand, ESS will take the lead in the active management of its portfolio of businesses.


New Picture (22)Manila Water’s core business – the Manila Concession – has been resilient in 2017 despite coming from a high base in 2016. Its billed volume grew by two percent to 488 million cubic meters driven by the increase in billed connections. Volume of treated used water likewise increased with the energization of the sewage treatment plants at Liwasan ng Kalikasan at Kagitingan and Marikina North. In support of future growth and continued compliance, capital expenditures reached an all-time high of P10.6 billion.

Meanwhile, Manila Water Total Solutions, one of the Company’s growth vehicles, remained focused in expanding its portfolio of products and services. The Corporate Account Management Group (CAMG) has fully matured into a profitable business. On the other hand, the Healthy Family (HF) brand continued its growth in the fivegallon segment, expanding bottle sales by 28 percent to six million. The brand also introduced the HF Mini and generated one million bottle sales in a span of eight months.

In 2018, the Manila Concession and MWTS will remain focused on its respective growth trajectories. The Manila Concession’s billed volume growth will be driven by the energization of the Rizal Province Water Supply Improvement Project, with an additional capacity of 100 million liters per day (mld), that will expand the concession’s distribution in the Rizal area. Improvement in the sanitation coverage is also expected through the Ilugin Project with a capacity of 100 mld. Capital expenditures aimed to boost coverage, capacities and efficiencies are set to be launched in anticipation of a successful conclusion of the Rate Rebasing. MWTS growth will be led by the HF brand, supported by development of new products and services through the Product Innovations Department. HF is targeted to grow bottle sales in both segments while improving its production efficiencies. PID will further its explorations in Waste-to-Energy.


New Picture (23)As the key growth drivers of the enterprise, Manila Water Philippine Ventures (MWPV) and Manila Water Asia Pacific (MWAP) have intensified its business expansion initiatives in 2017 by growing the existing businesses, re-energizing the nonmunicipal business opportunities, acquiring stakes in growth enterprises and underperforming companies, and adopting a bolder business development approach.

As a result, three new projects were successfully added to MWPV’s business portfolio in 2017. This was further beefed up by securing local resolutions to expand in Calauan and Victoria municipalities in Laguna, and the closing of a Lease Agreement between Estate Water and Philippine Economic Zone Authority (PEZA) for Water and Used Water Operations and Management of the Cavite Economic Zone. For the existing businesses, Boracay Water successfully secured its contractual tariff increase.

For MWAP, the Vietnam businesses contributed over P450 million to consolidated net income in 2017, while a partnership with an energy company was sealed to develop and execute more projects in Indonesia. Several organizations (water industry leaders, academic / financial / technical institutions) were tapped by MWAP to provide industry insight and leadership, in turn helping MWAP in its market scanning. These efforts aligned with the strategy of MWAP to pivot towards M&A opportunities with immediate bottom line impact, as well as to leverage multilateral organizations as a means to forge new partnerships with potential long-term prospects.

In 2018, MWPV will undergo a restructuring exercise to optimize its resources for growth and agility. The goal is to cement focus in operations and business development, as well as address its technical requirements. Furthermore, MWAP’s first foray into Thailand through share acquisition in East Water, a publicly listed water supply and distribution company, will strengthen its presence in the ASEAN region. This success presents great potential to MWAP as it gears up for growth and diversification in the international market.