Manila Water Company

Investor Relations News


Manila Water pre-qualifies in Vietnam project

Posted: Wednesday April 11, 2007

Manila Water Company, a member of the Ayala Group, has recently pre-qualified to bid for a 6-year Performance-Based Leakage Reduction and Management Contract in Ho Chi Minh City, Vietnam. Manila Water has teamed up with the Vietnam-based Construction Technology Development JS Company to qualify for the project.

Over the past nine years, Manila Water has made significant improvements in raising the level of efficiency in the distribution of water in the East Zone. One of its major achievements is its effort to substantially bring down the high level of non-revenue water (NRW) or systems losses due to to leaks and illegal connections. From a high of 63% in 1997, when it began its operation, NRW in the concession area has gone down to 30.3% as of December 2006. The unprecedented fete in reducing NRW has enabled the Company to increase 24-hour water availability from a low of 26% in 1997 to a high of 98%. Manila Water’s concession area covers 23 cities and municipalities, namely: Rodriguez, San Mateo, Marikina, Pasig, a Southeastern portion of Quezon City, Cainta, San Juan, Mandaluyong, Makati, Sta. Ana and San Andres in Manila, Taguig, Pateros and other Rizal towns.

The project is part of the US$44M World Bank loan of the Saigon Water Corporation (SAWACO). The goal of the project is to reduce water losses by 10 percentage points or equivalent to 125,000 cubic meters per day, which can serve as additional supply to the city. The contract covers an array of activities which includes establishment of around 100 district monitoring areas to manage leakage and system expansion works.

Water service is being managed by SAWACO in Ho Chi Minh City, the largest city in Vietnam with a population of more than 6 million. Four other international groups also pre-qualified to bid which include: Biwater Man Lee Ltd. (Hong Kong), Eastern Water – Universal Utilities and Water & Environment (Thailand-Vietnam), Salcon Engineering Berhard – Wide Bay Water (Malaysia-Australia) and Singapore Utilities International (SUI), Ley Choon Constructions and Engineering, Pan Asia Water Solution (PAWS) and VIWASEEN (Singapore-Vietnam).

SAWACO will soon release the bid documents to the pre-qualified bidders.