The Parent Company houses the East Zone Concession and holds the exclusive right to provide water and wastewater services to the Eastern Part of Metro Manila. The concession area covers 1,400 square kilometers encompassing 23 cities and municipalities with a population of close to 7.2 million comprising a broad range of residential, semi-business, commercial and industrial customers.
The East Zone Concession plays a critical role in nation building with an established commitment to national development in 1997 by taking on the mandate of rehabilitating and expanding the MWSS water and wastewater system. The concession has undertaken significant investments in expanding service coverage, improving operational efficiencies, reducing system losses, and developing additional water sources to meet the needs of the growing population.
It has also successfully managed Metro Manila’s water crisis in 2019 and coordinated efforts with government agencies, regulators, and customers to restore 24/7 water supply services.
It has been a long and difficult year across the globe as the rapid outbreak of the Corona Virus presented a significant commercial impact across all industries. The Parent Company’s revenues in 2020 were relatively flat at Php17,104 million, despite the 3 percent growth in billed volume from 493.9 million cubic meters in 2019 to 506.4 mcm in 2020. This is due to the shift in customer mix brought about by the COVID-19 pandemic. Specifically, revenue mix shifted 8 percentage points in favor of the residential segment as businesses ceased operations and more people are confined to their homes during the imposed quarantines.
|FY 2020||FY 2019||% Change|
|Billed Volume (in mcm)||506.4||493.9||3%|
|Billed Connections (in ‘000s)||1,018||1,002||2%|
|(in Million Php)|
Despite being faced with the impact of the Enhanced Community Quarantine, the East Zone Concession continued to provide reliable water distribution service. The Company worked with various stakeholders to ensure optimal raw water allocation and dam levels, sustained the 24/7 operation of supply and distribution facilities, as well as carefully monitored water availability levels to ensure that customers have sufficient water for their basic needs and hygiene requirements.
To alleviate the economic impact of the pandemic to the East Zone customers, Manila Water extended its due dates for water bills which resulted in a P259 million increase in Expected Credit Losses. Despite these challenges, the Company registered an 18 percent decrease in costs and expenses, driven in no small part by the implemented wcost management measures.
Net income of the East Zone Concession declined 7 percent in 2020 to Php4.7 billion.
Despite mobility restrictions, the Company continued its thrust to develop and construct water and wastewater infrastructures for the current and future demand growth of East Zone customers, disbursing capital expenditures worth Php9,840 million, over Php4 billion of which attributable to the fourth quarter of the year. This feat marks the highest quarterly contribution in recent history.