Sustainability

Contributing to Local and National Economies

GRI 201-1, SASB IF-WU-240A.4

Helping create opportunities for people and businesses.

Rehabilitation and improvement for the Balara Filter Plant is part of the Company's major investment components.

Management Approach

Manila Water is a vital partner in economic growth. In the course of expanding service coverage and providing customers with quality water and wastewater service, the Company invests heavily in vital infrastructure which creates jobs and opportunities with the organization and across the supply chain. Improved health of customers arising from water and wastewater services ensures optimal productivity of individuals which in turn fuels local and national economic growth and helps reduce poverty.

Economic Growth Contribution

Manila Water continued to sustain its performance despite the challenges it experienced due to the effects of the COVID-19 pandemic. The Company's investments in water and wastewater infrastructure render its operations reliable and efficient to provide clean water and contribute to pollution reduction in its service areas. Manila Water also exercises prudent spending in other supporting infrastructure including investments in information technology, security systems, energy, fleet, and other vital business infrastructure.

The Company's East Zone disbursed its highest capital expenditure of a total of ₱13.7 billion in 2021. 65% was spent on the development of water sources projects such as Calawis, Kaliwa, and East Bay. The remaining capital expenditure was allocated for Biological Nutrient Removal (BNR) compliance and the development of new wastewater catchments. The total capital expenditures of the Philippine subsidiaries amounted to ₱3.0 billion in 2021, growing by 33% from 2020. The capital expenditure disbursements of the subsidiaries have grown due to its own expansion projects on water and wastewater services.

Sewage and septage treatment plants (STP) upgraded to include Biological Nutrient Removal

Sustainable Financing

Manila Water has developed a Sustainable Financing Framework “Framework” under which the Company intends to issue Sustainability Bonds to fund projects on water security and environmental sustainability. In 2021, the Company has utilized USD 227M of the USD500M sustainability bond awarded to projects that fulfill the categories of sustainable water and wastewater management, terrestrial aquatic and biodiversity conservation, and affordable basic infrastructure.

Of the projects financed and refinanced by the sustainability bond, Rizal Province Water Supply Improvement has been completed and is able to increase water supply capacity in the East Zone by 100 MLD. There's also an increase of 175,000 m3/day in wastewater treatment capacity was brought by the completion of the Taguig North Sewerage System and Marikina North Sewage Treatment Plant. Lastly, in order to comply with the new standards, Manila Water will retrofit the design of 26 existing sewage and septage treatment plants (STP), and divert raw sewage flows from a cluster of 15 smaller STPs to ‘mother' STPs which can accommodate additional infrastructure and equipment. The removal of nutrients from wastewater will significantly help minimize or even reverse the pattern of eutrophication in water bodies around Metro Manila, particularly Laguna de Bay, and address the problem of hypoxia in the waters of Manila Bay.

Financial Highlights, PHP B
GRI 201-1

Sustainability Bond Allocated, in USD Million as of July 2021

Vendors Engaged

% of Local Spending

Manila Water invites interested applicants to participate in the Prequalification for the East Bay Water Transmission Pipeline Project - Lake Section

Supply Chain Engagement

The Company supports Small and Medium Enterprises (SMEs) and adopts policies that would allow them to be part of the Company’s supply chain. In 2021, Manila Water has allocated 100% of its spending to local vendors, translating to 832 vendor engagements. Moreover, Manila Water continues to engage the supply chain through online vendor forums held in February, July, and November this year. The forums were designed to engage suppliers on the project pipeline of the Company and conduct counseling sessions for vendors with performance issues.

Manila Water will continue to forge working partnerships with various stakeholders to find opportunities for Public-Private Partnerships or other forms of cooperation and collaboration that capitalize on the unique strengths of each partner, resulting in synergy and mutual benefits. Through the investments in local economies, Manila Water continues to perform the role of enhancing and sustaining economic progress in areas where it operates.

Supply Chain Management group continues to engage vendors to construct and improve water and wastewater facilities, such as the East Avenue Sewage Treatment Plant.