Part of our water security plans is resource efficiency, with our NRW reduction program as a core strategy. NRW, encompassing water lost through leaks, pilferage, and other unbilled uses, directly impacts our ability to meet service obligation. To reduce the volume of water loss before reaching our customers, we implemented the NRW reduction program across all our concessions. This program involves leak detection and repair, pipe replacement, and meter inspection and calibration. To minimize disruption and inconvenience to our customers, we typically conduct preventive maintenance activities and emergency repairs at nighttime. We also prioritize quickly resolving incidents by coordinating closely with stakeholders such as third-party contractors, national government agencies, local government units, and other entities.

Through these efforts, we have achieved significant results. By year-end, our enterprise NRW reached 14.6%, a substantial improvement compared to the World Bank’s 25% standard and a significant reduction from the 63% recorded at the start of our East Zone concession in 1997. This achievement underscores our commitment to minimizing water loss and maximizing resource utilization. Furthermore, a 1% reduction in NRW translates to serving an additional 80,000 customers, highlighting the tangible impact of our program on expanding service reach.

Continuous improvement and expansion of our water distribution network forms our water security strategy. This involves rehabilitating, replacing, and extending our waterlines to ensure a reliable 24/7 water supply for our growing customer base. Our distribution management practices include regular preventive maintenance, rigorous crackdowns on illegal connections and meter tampering, and swift repairs of breakages to minimize disruptions.

A significant project exemplifying our commitment to water network improvement is the NBAQ4 aqueduct. This initiative, undertaken in coordination with the Metropolitan Waterworks and Sewerage System (MWSS), is a key part of our improvement and expansion efforts in the East Zone. The new aqueduct, capable of conveying up to 1,000 million liters of water per day (MLD), is paving the way for the inspection, assessment, and subsequent rehabilitation of three existing aqueducts, some of which have been operational since 1929. These rehabilitations will ensure the continuous water supply for more than 7 million customers in the East Zone.

As of December 2024, we have laid and maintained approximately 8,229 kilometers of water pipelines across our Philippine operations. This represents a 229% increase from the 2,497 kilometers inherited in the East Zone in 1997. This expansion improves the reliability of our 24/7 water supply for customers. Looking ahead, we are committed to implementing service accessibility and continuity programs, prioritizing the extension of our network to reach currently unserved areas and further strengthening water security for all.

Manila Water recognizes the escalating threat to its services from natural calamities, intensified by climate change. With this, our approach to climate resilience is anchored on our business continuity strategy. This prioritizes the safety and well-being of our employees, who are essential to maintaining operations during emergencies, while strengthening our organization’s resilience against emerging threats. Our approach begins with a comprehensive hazard identification and risk assessment process, evaluating each of Manila Water’s operational processes. This analysis allows us to prioritize and focus on the most critical threats to service delivery.

Our primary goal is the swift restoration of water and wastewater services following any disruption. This customer- and system-focused approach recognizes the interconnectedness of our operations and prioritizes the most crucial elements for effective and rapid recovery. Beyond simply reacting to events, we actively anticipate potential disruptions and incorporate proactive measures to mitigate their impact. Specifically, our business continuity is designed to:

1. Provide clear guidance on maintaining, responding to, and restoring critical business functions to meet Recovery Time Objectives (RTO) and recovery strategies.
2. Ensure the continuity and recovery of essential services during disruptions.
3. Identify potential risks and implement appropriate control measures across all operations.
4. Document the effectiveness of control measures and regularly update policies and procedures.

Manila Water’s incident management protocol is guided by the “3Cs in Disaster Response”: Company, Customer, and Country. Employees, as our first line of defense, report their status to line managers during calamities, enabling centralized assessment and rapid deployment of rescue units in coordination with local government and partners. To maintain a state of readiness, annual company-wide drills simulate disaster scenarios, activating the incident management system and evaluating earthquake protocols and business continuity plans. These drills familiarize employees with their potential roles and responsibilities, facilitating swift service

This focus on preparedness extends to all environmental challenges. In 2024, when the Philippines experienced extreme heat, we implemented mandatory measures to protect both employees and contractors from heat-related illnesses. At our project sites, temporary facilities with shaded and well-ventilated resting areas, equipped with hydration stations and first aid services, were established. Safety officers were deployed to actively monitor workers’ health, particularly during peak temperature hours. For heat-intensive tasks, we implemented rotating shifts among smaller teams and provided tents to limit prolonged exposure to the heat. Modified work schedules, including extended lunch breaks and work during cooler parts of the day, were adopted at some project sites. Across all service areas, employees were advised to avoid strenuous activities and fieldwork during peak temperature hours.

Manila Water provides water that is compliant with water quality standards established by government and regulators in countries where we operate, safeguarding the health of over 12.7 million people. Importantly, there were no incidents of water quality violations issued by government in 2024. While we faced challenges in 2024, specifically with select water quality parameters, our overall performance demonstrates our ongoing commitment to meeting these standards. This is achieved through rigorous testing at various sample points within our treatment facilities and community tapping points. Our water quality is stringently monitored, and water samples are tested in our Department of Environment and Natural Resources-recognized and ISO 17025 accredited laboratories.

To address the identified water quality issues, we are implementing corrective actions. These include targeted decommissioning of affected wells where necessary. Furthermore, we are implementing a Water Safety Plan, which aims to: (1) minimize source water contamination; (2) ensure safe water quality from treatment, storage, and distribution; (3) identify potential risks and implement appropriate control measures across all operations; (4) implement and document the effectiveness of identified control measures; and (5) provide and update relevant policies and procedures.

While maintaining high service quality, our rates are regulated and approved. We offer additional discounts to low-income communities to ensure their water needs do not strain their limited resources. Our flagship social program, Tubig Para sa Barangay (TPSB), has provided water service connection to approximately 1.8 million Filipinos in low-income communities within Metro Manila’s East Zone since 1998. Complementing TPSB, the Manila Water Foundation’s Lingap Program improves water supply and sanitation facilities in public service institutions like schools, hospitals, jails, markets, and orphanages, reaching approximately 418,436 individuals in 2024.

Looking ahead, we announced in 2024 an expansion of our lifeline beneficiary coverage, including all members of the Pantawid Pamilyang Pilipino Program (4Ps) whose consumption does not exceed 20 cubic meters per month, effective January 1, 2025. This provides a 60 percent discount on the first 10 cubic meters and 40 percent on the second 10 cubic meters, translating to a discount of over Php200 for a 4Ps consumer using up to 20 cubic meters monthly. Read more about our Enhanced Lifeline Program

By the end of 2024, our collective efforts resulted in expanding water access to our customers through 1.3 million water service connections, delivering 1,287 million cubic meters (mcm) of potable water.