Manila Water Company: Manila Water awarded IFC Client Leadership Award

Manila Water awarded IFC Client Leadership Award

Posted: Monday October 22, 2007

Manila Water recently received the International Finance Corporation’s Client Leadership Award in recognition of the company’s comprehensive approach in promoting sustainable development in the East Zone of Metro Manila and in the water and wastewater industry. Manila Water is the first Philippine company to receive this global award which is given annually. The awardee is selected after undergoing a rigorous selection process among IFC’s clients globally.

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In fiscal year 2007, IFC committed US$8.2 billion and mobilized an additional US$3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. Since 2003, IFC has provided Manila Water with a total of US$90 million in loan facilities, and US$15 million in pre-IPO equity infusion.
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The Client Leadership Award is a significant award as it recognizes highly successful corporate clients that significantly help IFC’s sustainability mission. Manila Water was given the award as the Company demonstrated strong management commitment to environmental and social sustainability and corporate governance while achieving commercial success.

“IFC has been a valuable partner in helping us prove that business objectives and sustainability initiatives are perfectly aligned, which is the core of our business strategy. We are honored to receive this award and proud of our longstanding partnership with IFC. We hope to continue this valuable relationship with IFC as we continue to grow our business,” said Manila Water President Antonino Aquino.

During the awarding ceremony in Washington, DC, IFC Executive Vice President and CEO Lars Thunell, said, “Manila Water’s innovative programs to bring water to poor people and its success in supplying the city’s eastern zone are just some of the ways that the company embodies IFC’s ideals in social sustainability and corporate governance.”

Manila Water began its 25-year concession contract to improve water and wastewater services in 1997. During that time, only 26 per cent of the 5 million population in the East Zone had 24-hour access to clean, reliable and affordable piped-in water. Today, Manila Water has accomplished the unprecedented fete of providing 98 per cent of the population with 24-hour water supply. The Company likewise increased its customer base from only 3 million in 1997 to more than 5 million, with more than one million people coming from low-income communities. This was accomplished by bringing down system losses (losses due to leaks and illegal connections) in the East Zone to below 25 per cent from a high of 63 percent.

These accomplishments have resulted in the improvement of the over-all quality of life of Manila Water customers because of the realized savings in water expenses (as opposed to other sources of water such as water delivery trucks) and the convenience of having piped-in water straight to the faucet. Furthermore, Manila Water’s investments of more than P25 billion for the last 10 years in the East Zone have directly and indirectly contributed to the creation of an additional 10,000 jobs.

Key to Manila Water’s success is the alignment of its social/ environmental and business goals. This effort is complemented by the publication of an annual Sustainability Report, which contains measurements of the Company’s achievements on CSR initiatives. Manila Water is credited as the first company in the Philippines to develop a Sustainability Report that complies with the accepted global standards for CSR reporting. It has likewise received local and international recognition for its sustainable development and corporate governance efforts.

Manila Water continues to meet business objectives and has also shown a significant improvement in financial performance in the past six years. In 2005, it raised a total of US$100 million from its initial public offering, which was largely used to invest in water and wastewater infrastructure services. In less than 3 years since its IPO, it has grown from a small-cap company, with a market cap of less than US$300 Million, to an US$800 million company.