Delivering Our Strategy

While economic development was greatly impeded in 2020, the importance of the water space remained critical. Communities clamor for the sustainable provision of basic utilities such as potable water and sanitation services. One of the most effective ways of protection against COVID-19 virus is through proper hygiene and cleanliness practices. The importance of disinfection efforts such as constant and proper hand washing was never more highlighted than at the onset of the pandemic. The challenge for water providers is to maintain a high level of service despite prevailing limitations.

Manila Water recognizes the importance of having sufficient water supply and sanitation services amidst the COVID-19 pandemic. The Company focused on maintaining service levels in its East Zone Concession and in its other operating subsidiaries. Key measures were undertaken to ensure that water and wastewater operations continued, while keeping employees safe from the dangers posed by COVID-19. At the same time, the Company remained true to its commitment to the United Nations Sustainable Development Goals (SDGs) on Clean Water and Sanitation.

Valuing Genuine Service

Manila Water remains focused on its service mission to provide exceptional service to its customers. The Company faces the COVID-19 pandemic head-on and is committed to perform even better, even as it strives to address the new realities brought about by social, environmental, and institutional challenges.

In response to the COVID-19 pandemic, Manila Water prioritized the safety of its employees as they continued the provision of genuine service to the Company’s customers. The safety and well-being of employees were upheld by Management by providing assistance such as transportation, access to healthcare and the adoption of alternative work arrangements. Equally important, the Company focused on business sustainability, prudently managing its financial resources to maintain service continuity, operational resiliency, and timely project implementation.

In support of its commitment to water and environmental sustainability, the Parent Company successfully debuted in the international debt capital markets through the issuance of its maiden ASEAN sustainability bond. The 500 million US Dollar-denominated senior unsecured notes are pursuant to the Sustainability Financing Framework (SFF) recently established by Manila Water. The SFF is aligned with the Green Bond Principles 2018 and Social Bond Principles 2019 and likewise complies with the maiden ASEAN Sustainability Bond and SEC MC No. 8, s 2019. The proceeds from the issuance are intended to refinance maturing obligations and finance programmed water and wastewater capital expenditures for 2020-2021 and are targeted towards projects related to (1) Sustainable water and wastewater management; (2) Terrestrial and aquatic biodiversity conservation; and (3) Affordable basic infrastructure categories. The issuance recently received an accolade as the Best Sustainability Bond – Corporate in The Asset’s Annual Triple A Country Awards 2020.

Beyond the East Zone Concession, financial resource preservation remained a priority. Specifically, MWPV exercised its option to borrow an additional Php3.0 billion from partner banks to ensure that sufficient resources are available for MWPV’s operations and capital expenditures, as well as for existing projects of subsidiaries and equity investments.

In terms of operations, new business development initiatives of the non-East Zone businesses gave way to keeping current operations stable and meeting service level standards. Taking the East Zone Concession as its benchmark for operating amidst the COVID-19 pandemic, the subsidiaries adapted to the new realities of their respective service areas. Notwithstanding the current challenges, the potential opportunities in the water space remain robust and Manila Water will continue to look at these as soon as the circumstances become better.