Industry Beacon: In focus - Water supply in Metro Manila

Summary

In this episode of Industry Beacon, Jack Madrid speaks with Perry Rivera, Managing Director and Founder of Water and Sanitation Analytics, about the state and future of water supply in Metro Manila. They discuss the transformation of Manila's water systems over the past 25 years, the challenges of ensuring sustainable, accessible, and affordable water amid climate change, and the role of technology and demand management in optimizing water use. Rivera emphasizes the importance of leadership, long-term planning, and education on water conservation to ensure the sector's future sustainability and resilience.

Takeaways

• 😀 The water supply in Metro Manila has significantly improved over the past 25 years, with Manila Water and Maynilad now serving 18 million people, up from 10 million.
• 😀 The reduction in non-revenue water (water lost to leaks and theft) has been a major success, with losses now at just 13%, down from 66%.
• 😀 Over $5 billion in investments have been made in water infrastructure in the last 25 years, with another $5 billion planned for the next 5 years to secure long-term water supply.
• 😀 Extreme weather conditions, flooding, and droughts due to climate change are major challenges for water supply and require adaptation strategies.
• 😀 Diversifying water sources, such as tapping Laguna Lake, is crucial for ensuring long-term water security in Metro Manila.
• 😀 Global best practices from Singapore and Israel, like wastewater recycling and diversified water sources, provide valuable insights for the Philippines to follow.
• 😀 Singapore’s 50-year investment plan for water supply security is a model for the Philippines, emphasizing long-term planning and governance.
• 😀 Demand management, including proper water pricing and consumer education, is essential to ensure sustainable water usage and prevent wasteful consumption.
• 😀 In Singapore, water consumption per capita is being reduced through initiatives like shorter showers, with a goal to reduce consumption to 130 liters per person by 2030.
• 😀 The water sector in the Philippines must embrace digital technology, like data analytics and real-time monitoring, to improve operational efficiency and predict infrastructure needs.
• 😀 Water rates are expected to increase over the next 5-10 years to fund infrastructure projects and ensure the sustainability of water services, highlighting the importance of full cost recovery.

Q & A

What is the current state of water supply in Manila?

Currently, Manila has made significant improvements in its water supply. 25 years ago, there was a looming water crisis with low coverage and high system losses. Today, Manila Water has reduced its system loss to 13%, significantly improved coverage, and serves around 18 million people, up from 10 million in the beginning. Over the past 25 years, $5 billion has been invested to improve water infrastructure.

What challenges does Manila face in ensuring a stable water supply?

Manila faces several challenges, including extreme weather conditions such as flooding and drought, compounded by climate change. The security of water supply is a major concern, as Metro Manila heavily relies on sources like Angat and Laguna Lake. Another challenge is the cost and complexity of wastewater treatment, which requires significant investment.

Why does Manila have two water concessionaires, and what are their areas of coverage?

Manila is served by two concessionaires due to the city's hydraulic features and political boundaries. Manila Water handles the East Zone, including Quezon City and neighboring areas, while Maynilad serves the West Zone, which includes older parts of Metro Manila. This division ensures more efficient water distribution in a densely populated city.

Has the disparity in water rates between the East and West Zones been resolved?

Yes, the disparity in water rates between the East and West Zones has narrowed significantly. Initially, the rates were more than 50% apart, but this gap has reduced over time, with the expectation that prices may be very close to parity by 2027.

What are some best practices from other countries that could be applied in the Philippines?

Two countries often cited for their water management practices are Singapore and Israel. Singapore, for example, has a comprehensive approach to water security with a 50-year investment plan. They utilize multiple water sources, including desalination, water recycling, and rainwater harvesting. Demand management is also crucial, ensuring that water is used efficiently, and appropriate price signals are sent to consumers.

How does climate change impact water security in the Philippines?

Climate change poses significant risks to water security in the Philippines, particularly in Metro Manila, which relies heavily on Angat for its water supply. Extreme weather events like floods and droughts, exacerbated by climate change, can strain water resources. The government is diversifying water sources and investing in infrastructure to ensure long-term water security.

What role does water conservation play in ensuring water supply sustainability?

Water conservation is critical for sustainability, especially in light of climate change and increasing demand. Educating consumers on efficient water use, encouraging shorter shower times, and adopting policies that promote demand management are essential. In countries like Singapore, conservation is a key part of the strategy, with residential water use targeted to fall from 170 liters per capita per day to below 130 liters by 2030.

What are some innovative technologies being used in water management?

Technological innovations are being used to improve water management efficiency. For example, Team Sal, a Singapore-based company, has developed an app that allows utilities to track network data, including non-revenue water loss and pipe conditions. This helps utilities predict when pipes need maintenance or replacement, improving overall operational efficiency.

What can consumers expect in terms of future water rate increases?

Water rates are likely to continue increasing over the next 5 to 10 years. This is because utilities must continue to invest in infrastructure to secure water supply and expand coverage. However, these investments are necessary to maintain service and ensure long-term sustainability of water resources. The principle of full cost recovery in water services is key to making these investments viable.

How can the water sector attract young talent and foster innovation?

To attract young talent, the water sector must change its image and embrace digital transformation. The industry needs to be seen as innovative, technologically advanced, and open to change. Embedding new technologies, such as data-driven approaches to water management, will help improve efficiency and appeal to younger generations who are tech-savvy.