Key Financial and Operational Highlights

Maynilad is the largest private water concessionaire in the Philippines in customer base, with the most number of ISO certification across its offices and facilities. It consistently provides clean water and wastewater services to the West Zone of the Greater Manila Area through a concession agreement with the Metropolitan Waterworks and Sewerage System (MWSS). This concession area services over 9.9 million customers, covering 540 square kilometers in 17 cities and municipalities. The concession area includes certain portions of Manila, Quezon City, and Makati; the cities of Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon in Metro Manila; and the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta, and Rosario, all in the Province of Cavite.

Maynilad provides piped-in water that is clean and safe for drinking, cooking, bathing, and other household activities, according to the Department of Health’s Philippine National Standards for Drinking Water. Its wastewater treatment facilities conform to the effluent quality standards of the Department of Environment and Natural Resources. It maintains and operates a sewerage network and regularly cleans septic tanks to prevent the pollution of waterways and other bodies of water.

Since its re-privatization in 2007, Maynilad has turned what once was a rundown infrastructure system into a robust water and sanitation network serving almost 10 million Filipinos and providing access to water, sanitation, good health, and hygiene to low-income households in marginalized communities.

Business Highlights

Financial and Operational Highlights

  • Revenues declined 4% to P22.0 billion reflecting a 3% drop in billed volumes
  • Volume consumption throughout the year remained low except for the industrial sector which showed slight growth as more businesses opened up
  • Core Net Income was flat despite lower revenues due to favorable impact of the CREATE law on income tax
  • Capital expenditure amounted to P8.6 billion and was largely used to fund new water treatment plants

 

Expansion and Others
GRI 203-1

  • Maynilad completed the installation of its P77-million Julian Modular Treatment Plant (“MTP”) and will produce 4 million liters of water (“MLD”) per day once it becomes operational by the second quarter of 2022, improving water availability and pressure for about 19,000
    customers
  • Further investments on an additional 125 MLD of supply augmentation projects are underway, of which 43 MLD will be also available by mid-2022 in anticipation of further water supply constraints
  • Effective January 22, 2022, Maynilad was granted a 25-year franchise affirming its authority to establish, operate and maintain a waterworks system and sewerage and sanitation services in the West Zone Service Area of Metro Manila and Province of Cavite

How MAYNILAD Creates and Delivers Value

Creating value through water distribution
GRI 102-8, 203-1, 303-3, 304-3, 401-1, IF-WU-250a.2, IF-WU-440a.3, IF-WU-450a.4

Maynilad creates value by extracting, treating, and distributing piped-in clean and potable water to millions of people, especially lifeline customers, allowing access to a life-saving resource critical to socioeconomic development, productivity and production, health and sanitation, nourishment, and basic survival.

Despite on-off COVID-19 restrictions in 2021, water distribution services remained uninterrupted, and Maynilad delivered 948 million cubic meters (MCM) of potable water, 520 MCM of which are billed, to 1,501,371 customers. Billed water volume is 1,429 megaliters per day due to new water service connections, among other factors. As a result, Maynilad’s customer satisfaction rating for 2021 is at 93% and revenue reached P17.8 million. Maynilad also extended service to 477,943 lifeline customers or low-income consumers whose monthly water consumption is only 10 cubic meters or less.

Maynilad draws on several capitals as key inputs in its successful delivery of this value, enabling customers to lead healthy and comfortable lives. These include capital to finance the daily operational costs of water extraction and distribution as well as improvements and expansion in its  water distribution network; a resilient and modernized infrastructure comprised of reservoirs, pumping stations, treatment facilities, and water pipes; centralized management systems backed by high-end technology to increase efficiency and optimal delivery of a limited resource; well-trained and highly skilled human capital that serve as the backbone of daily operations; and partnerships and working relationships with regulators, local governments, and accredited vendors.

In 2021, Maynilad allocated P6.7 billion of its annual operating cost to water extraction from 37 reservoirs, such as the Umiray-Angat-Ipo water system and Laguna Lake, where it abstracted a total of 1,008,204 MLD of raw water. About 18.59 kilometers of new pipelines were added to Maynilad’s distribution network in 2021, increasing total pipes laid to 7,748 kilometers. Rehabilitation of legacy pipes continued, with 166 kilometers of old pipes replaced, leading to 31.8% average non-revenue water (NRW) for 2021. The current total of replaced pipes since 2007 increased to 2,683 kilometers, or 71% of the entire distribution network the company inherited during its takeover.

Maynilad completed mission-critical enhancements to the La Mesa Treatment Plant (LMTP), such as increasing the plant’s capacity to treat high turbidity raw water coming from watershed degradation and shift in rainfall patterns. These improvements increased the capability to treat more turbid water from 200-300 NTU range of turbid water before rehabilitation of LMTP to 2,000 NTU of turbid water.

To further improve efficiency, Maynilad invested in developing its own computerized information system for the centralized management of its main business operation. The Integrated Asset Management Division utilized the Computerized Maintenance Management System (CMMS) in order to streamline the processes and automate the scheduling of preventive maintenance and budget planning. As a result of the pandemic,
Maynilad also invested heavily in telecommuting and mobile technologies to remotely manage assets and automate certain business processes.

There are 176 workers directly involved in the distribution side of Maynilad while 133 are involved in the water production side, of which 20 are new hires. Several indirect hires increased to 20 in 2021 despite the on-off Covid restrictions, and about 79 indirect employees were contracted to complement the existing workforce engaged in service delivery. Employee training and capability programs continued largely online, with 5,551.20 total training hours in 2021. Lastly, the company was able to promote 14 employees involved in water supply operations.

The company’s concession agreement with the MWSS guides Maynilad’s business operations. This agreement was reconfirmed in May 2021 and extended to July 2037. Maynilad works with a number of regulatory agencies to ensure that all legal and operational requirements are met on a timely basis. It also strives to deal harmoniously with each local government unit within its concession area, securing individual permits per project as needed, and with 492 accredited vendors which it considers as supply chain partners.

Responsibly managing wastewater treatment
GRI 102-8, 203-1, 401-1, 404-1, IF-WU-450a.4

As a complement to its water distribution service, Maynilad is also engaged in wastewater management, creating value by treating domestic quality used water collected from numerous households, commercial establishments, and industries in its concession area. Wastewater from Maynilad’s sewage pipes as well as those collected from septic tanks undergo a treatment process that utilizes the best technologies in filtration, aeration, and disinfection, ensuring that effluents conform to the highest standards set by the Department of Environment and Natural Resources before it is released back to bodies of water around Metro Manila.

Maynilad treated and discharged 69,477 million liters of wastewater in 2021, which came from discharges made by 292,090 households to the sewerage network and from 134,026 customers through its septage services.

To effectively achieve this value, Maynilad depends on capital such as finance for operational and capital expenditures; wastewater treatment plants, sewer network lines, vacuum truck units (VTU), and other facilities and equipment involved in wastewater collection, conveyance, treatment, and discharge; human capital involved in sewerage management and desludging to prevent septic tank overflow; waterways or bodies of water where treated wastewater is released; and relationships and partnerships leveraged to ensure compliance and smooth operations in its business area.

Maynilad allocated P313 million operating cost to sewerage management and P150 million to septage management in 2021. Capital expenditures were made to install new sewer lines, which added new households to the existing sewerage network. Maynilad acquired new Vacuum Truck Units (VTU) with total combined capture capacity of 728 cubic meters, bringing to 93 the total number of VTU providing desludging service to customers who are still not connected to the sewer network.

Maynilad runs 22 treatment facilities that are currently responsible for water reclamation, capable of processing 664,000 CMD of wastewater. Maynilad continues to invest in building wastewater management capacity, boosting the sewerage system’s efficiency, reliability, and resilience. Maynilad also invests in research and development to introduce innovations that further enhance its already IMS-certified systems.

Most of Maynilad’s wastewater treatment processes, including such technologies as batch reactors, aerators, and conventional activated sludge, have been automated. Its treatment facilities are all connected to a 24/7 central control room where teams of roving engineers remotely monitor, control, and optimize plant operations. 112 engineers and 115 workers comprise Maynilad’s total workforce for wastewater management in 2021, 26% of which are involved in sewage management while 18% are directly involved in desludging operations. Employees of desludging service companies augmented the rest of Maynilad’s workforce.