Gearing Up to Become
a Global Filipino Water Company
2021 Integrated Report
Business Review
Manila Water Asia Pacific
Manila Water Asia Pacific (MWAP) is Manila Water's vehicle for international expansion with presence in Vietnam, Thailand, Indonesia, and more recently in the Kingdom of Saudi Arabia. On a consolidated MWAP level, equity share in net income of associates increased 166% due to positive performance of all associates except Saigon Water. This performance was led by East Water's notable recovery from the impact of drought and the COVID pandemic in 2020, coupled with the lower Purchase Price Allocation (PPA) adjustment last year.
In October 2021, the Company disclosed that the consortium of Manila Water with Saur SAS and Miahona Company has been awarded the Management, Operation and Maintenance Contract (MOMC) by the National Water Company (NWC) of the Kingdom of Saudi Arabia (KSA) for its Eastern Cluster over a sevenyear period.
Similar to the previously awarded Northwest Cluster to the same consortium, the MOMC will comprise the management, operations and maintenance of water and wastewater facilities and will entail implementation of enabling projects and deployment of key personnel to manage the cluster and achieve the Key Performance Indicators set by NWC.
With these recent developments, the total footprint of the Company in KSA now approximates a total demand of 2,700 MLD, serving an estimated population of 8 million in KSA. As a matter of context, these market characteristics are comparable to that of the East Zone Concession, with a total demand of nearly 1,400 MLD and a total population served of 6.6 million.
The creation and privatization of these Management, Operation and Maintenance clusters is in line with the KSA government’s National Water Privatization Agenda 2030, wherein it endeavors to progress its public-private partnership framework into a full-blown concession.
| MOMC with KSA NWCfor East Cluster (Consortium among MWC, Sour and Miahona) | |
|---|---|
| Population | 5.3 MN (15% of KSA’s Total Population) |
| Land Area | Over 520,000km2 (27% of KSA’s Total Land Area) |
| Demand | ~1,900 MLD |
| NRW | (%) 43.7% (2020) |
| (in Million Php) | FY 2021 | FY 2020 | % Change |
|---|---|---|---|
| Equity Share in Net Income of Associates | 569 | 214 | 166% |
| East Water, Adjusted | 158 | (179) | 188% |
| Thu Duc Water | 276 | 267 | 3% |
| Kenh Dong Water | 165 | 164 | 0% |
| Saigon Water | (61) | (37) | (62%) |
| PT STU | 3 | (1) | 530% |
| IWP | 28 | - | 100% |
