LUIS JUAN B. ORETA
Chief Finance Officer and Treasurer
The Corporate Finance and Governance Group (CFGG) was prepared for the expansion in the breadth of the business models it engaged in with the public sector. We initiated a corporate restructuring program aimed at streamlining the Company’s ownership of the Metro Manila concession and its subsidiaries and affiliates to establish greater accountability and regulatory compliance. To further increase accountability, we drilled down the P&L mindset to the department level to make each manager responsible for his profitability and cost drivers. CFGG continued to help the Company improve its adherence to corporate governance standards and risk management. As a result, Manila Water was ranked among the Top 50 Publicly Listed Companies in the ASEAN Corporate Governance Scorecard, one of only 11 Philippine companies in the list. Finally, CFGG closed landmark financing deals which enabled Manila Water to pursue its capital expenditure programs, and continue its expansion programs outside Metro Manila.
In 2016, CFGG will support the Metro Manila, Boracay Water and Clark Water concessions as they develop their Rate Rebasing Business Plans. More importantly, CFGG will facilitate the comprehensive review of performance and costs against regulatory commitments, to ensure objective and robust business plan submissions. At the enterprise level, the team will implement the next phase of corporate restructuring, while following through on the established enhancements to regulatory accounting, inventory management, corporate governance and risk management. The Group remains committed to international standards of corporate governance and will ensure the Company lives up to its reputation as one of the ASEAN Top 50.
FERDINAND M. DELA CRUZ
Chief Operating Officer, Manila Water Operations
Manila Water Operations (MWO) made significant efforts to sustain the business and operating performance in 2015 to cushion the impact of the reduced tariff in the East Zone. Billed volume grew by 2.8% to 461.35 MCM or an additional 12.46 MCM vs 2014. Demand requirements from the higher temperatures and lower rainfall due to El Nino were met through diligent and vigilant operations management and tight stakeholder engagement and communication. Total collection efficiency for the year reached 100% while non-revenue water was kept at 11%. We energized major Used Water projects – the Marikina North STP with a capacity to treat 100 MLD and the Taguig North STP with 75 MLD capacity - in March and December, respectively. Combined, the two system projects will serve an estimated 815,000 residents. The Taguig North STP, which doubles up as the Liwasan ng Kagitingan at Kalikasan, showcases the successful partnership with our stakeholders, and our ingenuity in the dual use of land having built our facility beneath a historical and recreational park. Work is also underway for the North and South Pasig Sewerage System and the 100 MLD Ilugin STP.
Continued enhancements will be done in 2016 as follow through to the new capabilities built in 2015 to adapt to new business requirements and bolster productivity. To name a few, we have rolled out an Enterprise Asset Management System, a new General Ledger System and a Records and Information Management System. We have also enhanced our existing Geospatial Information System to provide better analytics and support to operations. All of these are geared towards a stronger MWO as it prepares for the Business Plan submission for the 2018 Rate Rebasing in the Metro Manila East Zone.
VIRGILIO C. RIVERA JR.
Chief Operating Officer, New Busiess Operations
To position Manila Water for sustained growth beyond the Metro Manila concession, the Company restructured the organization in April 2015 which resulted in the creation of Manila Water Philippine Ventures (MWPV) and Manila Water Asia Pacific (MWAP) with the strategic mandate of expanding the water business in the Philippines and ASEAN. The geographical expansion is anchored on the core competencies of the Company which have already been proven in new businesses like Laguna Water, Clark Water, Boracay Water, and Cebu Water in the Philippines, and through its subsidiaries in Vietnam such as Kenh Dong Water, Thu Duc Water and Saigon Water. In 2015, the combined performance of MWPV and MWAP registered significant growth in profit of 30% from P666 million in 2014 to P869 million in 2015, with the breakdown in contribution equally distributed between MWPV and MWAP operations. Moreover, its respective balance sheets continued to grow with MWPV having an asset base of P10 billion and equity base of P3 billion, while MWAP has P6 billon for both asset and equity base. Aside from the geographic expansion, it was also in 2015 when Estate Water (EW) was created as an operating division of MWPV to be the vehicle for the strategic partnership between Ayala Land, Inc. (ALI) and MWPV where EW will be the exclusive water and used water services provider to all existing and future ALI projects.
Given the traction gained by MWPV and MWAP over the past five years and the robust pipeline of projects, our Group is well-positioned to meet its commitment of posting sustainable growth in the business and profitability.