The Transformational Leadership of CEO Ramoncito S. Fernandez
BizNewsAsia Management Excellence Awardee for 2025
Enhance Maynilad operations and efficiency in the West Zone
Maynilad Water is focused on enhancing service delivery and operational efficiency, supported by a comprehensive CAPEX program totaling P163.3 billion (U.S.$2,885.3 million), as provided in our business plan for 2023 to 2027 approved by the MWSS-RO.
The company believes this strategy will help grow its business sustainably by pursuing projects geared towards:
— Diversifying sources of raw water, including through the construction of additional NEW WATER treatment facilities utilizing treated effluent for direct potable use;
— Expanding water service coverage through the completion of additional water treatment plants, with the aim of providing 95.1% water service coverage of its population of 10.5 million people by 2026;
— Operational enhancements, by extending our pipe network and rehabilitating and upgrading existing facilities to withstand extreme situations such as earthquakes;
— Improved customer and information technology services;
— Expanding wastewater service capacity by increasing accounts-based sewerage and sanitation coverage to 33.0% and 67.0%, respectively, by 2026; and
— Improving non-revenue water (NRW) management through district metered area splitting, diagnostics and leak repair, pipe replacement, use of leak detection technology, and meter management, to reduce NRW to 25.0% and 20.0% by 2027 and 2030, respectively.
Maynilad Water is dedicated to diversifying its raw water sources to enhance water security, exemplified by its NEW WATER initiative which it is in the process of scaling up.
As of June 30, 2025, Maynilad is completing a NEW WATER treatment plant utilizing wastewater effluent from the Pasay Water Reclamation Facility.
This diversification is essential to ensure a continuous and reliable water supply, particularly in the face of water scarcity risks and environmental challenges.
In response to the need for alternative water sources, MWSS is developing the Kaliwa Dam Project, scheduled to be completed in 2028, which is anticipated to provide us with 300 MLD raw water allocation through the construction of our associated water treatment plant and related conveyance in our project pipeline.
Maynilad intends to augment its water sources through modular water treatment plants in our project pipeline.
Its NEW WATER initiative demonstrates its capability to treat wastewater for potable use, which enables the company to meet additional water consumption demand within the West Zone.
Additionally, to reduce NRW further and meet its targets, Maynilad’s robust non-revenue water (NRW) management strategies aim to enhance operational efficiency, drive higher return on investment, facilitate water conservation, expand its customer base, and meet various United Nations Sustainable Development Goals.
Maynilad also intends to upgrade its water treatment plants and distribution network, enabling the company to deliver high-quality water services and accommodate future demand.
More treatment and sewage plants
Maynilad plans more water treatment plants, refurbishing existing infrastructure, and strategically interconnecting district metered areas to reduce supply disruptions.
Maynilad also plans to additional sewage treatment facilities to enhance our wastewater management capabilities and support environmental sustainability.
The target is to increase accounts-based sewer Coverage from 23% in 2023 to 49% by 2031, with significant investments in new wastewater facilities and sewer lines.
Maynilad aims to meet its sewerage coverage target by enhancing the operational efficiency of our sewer systems.
The company is in the process of implementing combined interceptor systems at our WRF in the pipeline.
Instead of relying on individual households connected to its sewer network, this system is designed to intercept septage as it combines with storm water, and facilitate the treatment of water prior to its discharge into designated receiving bodies of water.
Further, Maynilad is integrating new methodologies to minimize surface disruption during the construction of sewer pipelines which aims to facilitate the expansion of our sewer network.
For example, Maynilad is employing the “trenchless method”, a type of subsurface construction work designed to reduce excavation and surface disruption, necessitating minimal or no continuous trenches.
This method is particularly advantageous for the installation of sewer pipelines in urban environments with high traffic density and in areas of environmental sensitivity. The trenchless construction methods we utilize include horizontal directional drilling, micro-tunneling, auger boring, pipe ramming, and pipe jacking.
Water availability strategy
Improving water availability is central to Maynilad strategy, ensuring that customers have consistent access to water services.
Maynilad plans to increase total water storage capacity from 779.0 million liters in 2024 to 960.0 million liters by 2026 through the construction of two new reservoirs in Quezon City and one new reservoir in Valenzuela City.
It intends to accomplish this by utilizing strategic cost management and process efficiency initiatives, such as through the utilization of renewable energy.
Looking ahead to 2037
Looking ahead, Maynilad is exploring opportunities for additional growth within the West Zone, subject to regulatory review.
This includes the potential construction of additional water treatment plants after 2037 to fill gaps in water demand and expansion to certain areas in Cavite which we have yet to include in Maynilad service coverage.
These strategic initiatives are designed to position Maynilad for sustainable growth and long-term success alongside appropriate rate adjustments.
Expansion to proximate areas of the West Zone
Maynilad aims to leverage improvements in its concession business to offer water and wastewater services where network expansion is feasible.
While Maynilad continues to prioritize capital spending to improve its concession business, prudent capital management in the medium term may enable it to explore business opportunities with adjacent water districts.
Maynilad is actively evaluating adjacent areas that offer natural growth prospects of its concession area.
Bulacan and Cavite eyed
The company believes that independent water districts in the neighboring provinces of Bulacan and Cavite, in north and south of Metro Manila, respectively, may view Maynilad as an attractive utilities partner given its reputation and performance in the West Zone.
In addition, Maynilad believes that offering its services to these adjacent areas will allow it to leverage its infrastructure and commercial advantage.
Maynilad is also identifying opportunities for additional growth within the West Zone.
Reclamation areas eyed too
Maynilad is considering new reclamation activities along the coastal lines Manila Bay, specifically in the cities of Navotas and Pasay.
The Coastal Bay reclamation project in Navotas aims to expand the port area by 576.7 hectares, featuring a mix of commercial and industrial developments.
Further south, the Harbor City development is part of ongoing reclamations in Pasay City and Parañaque City, expanding the current area by 265.0 hectares with a mix of residential and commercial properties.
Given Maynilad’s extensive network in the areas bordering these projects, the company believes its geographical positioning enables us to facilitate the construction and operation of water and wastewater facilities in these areas.
Not part of West Zone concession
As these areas do not currently form part of the West Zone concession, Maynilad’s involvement and eventual management of water and wastewater projects in these areas are subject to further discussions on risk and return.
The company is cognizant that each water district requires significant capital requirements to improve its service, alongside consistent operating expenditures to maintain operations.
Maynilad’s business development group is focused on analyzing these opportunities to ensure that these meet our risk and return requirements.
While these opportunities may arise, Maynilad maintains its focus on supporting and funding the requirements of our current business.
Expand into value-added services and adjacent utility sectors by leveraging existing customer relationships
Maynilad’s strategic focus includes expanding its value-added services to commercial and industrial customers by leveraging our existing service capabilities.
This approach requires minimal incremental capital expenditure and maximizing the use of its current infrastructure and expertise.
Maynilad intends to expand its offerings to include additional sanitation services, leak detection, and pipeline replacements.
These initiatives are aligned with its commitment to sustainable practices, supported by our pipeline of projects.
In addition, Maynilad plans to offer industrial wastewater pre-treatment services to industrial customers to address market under-penetration and growing demand.
84% of water discharged untreated
According to GlobalData, the proportion of wastewater in the Philippines that is discharged to the environment without treatment stood at 84.0% as of 2024, a large untapped market for further growth and investment.
Also, according to GlobalData, of an estimated 10,768.7 cu. m. of total generated wastewater in 2024, 4,318.0 cu. m. was from industrial general wastewater.
While Maynilad acknowledges the increasing demand and production from its industrial clients, it is unable to service industrial-grade wastewater with its existing facilities.
This will involve acquiring and operating captive wastewater pre-treatment plants and upgrading the design and process of its existing wastewater treatment plants to be able to handle industrial waste, ensuring compliance with environmental standards, and enhancing operational efficiency.
By managing these facilities, they aim to provide industrial customers with a seamless and effective solution for industrial wastewater management.
Maynilad is also exploring the possibility of offering solid waste management services to certain industrial customers.
This initiative would complement its existing services and provide a comprehensive environmental management solution, addressing both water and waste needs.
Through these strategic initiatives, Maynilad aims to strengthen its relationships with commercial and industrial clients, delivering tailored solutions that meet their specific needs while promoting environmentally responsible operations.
Maintain prudent financial management while supporting business growth and optimizing dividend payout to shareholders
Maynilad’s financial strategy is focused on optimizing financial resources and managing financial risks to support its long-term growth and stability.
For example, Maynilad issued its maiden P9.0 billion Series A Blue Bonds due 2029 and P6.0 billion Series B Blue Bonds due 2034, both of which were listed and traded on the Philippine Dealing & Exchange Corp. in July 2024.
This is part of its plan to diversify its sources of funding by tapping into the local bond market, as well as exploring blue, green, or sustainability-linked financing opportunities.
This diversification will complement its strong relationships with banks, ensuring a robust and flexible funding base.
By leveraging a variety of funding sources, Maynilad seeks to enhance our financial resilience and position itself to capitalize on favorable market opportunities.
Peso borrowings
To address challenges posed by foreign exchange risks, Maynilad intends to draw new borrowings in Philippine Pesos, aligning its debt profile with its revenue currency.
Maynilad believes that this approach reduces its exposure to currency fluctuations and provides greater predictability in its financial planning. Maynilad is committed to adhering to its debt covenants.
These metrics are carefully monitored to ensure we maintain a strong financial position. Additionally, Maynilad tracks its Debt-to-EBITDA Ratio, keeping it within its internal target of 4.5x, to ensure that we have sufficient cash to cover payment of existing debt.
Regular dividends
Maynilad regularly declares and pay dividends from its unrestricted earnings, reflecting its commitment to delivering value to shareholders.
Consistent with its dividend policy approved on March 14, 2025, as amended on May 14, 2025, Maynilad will maintain an annual dividend payout ratio equivalent to the higher of (i) 50% of its Net Income, or (ii) 40% of the Adjusted Net Income, capped at 100% of the Net Income, both of which are based on its standalone financials, subject to certain requirements.
Maynilad believes its available cash flow for dividend payouts may increase significantly after 2027 due to a lower capital expenditure requirement.
This approach balances the need for reinvestment in its business with the return of capital to shareholders, supporting its strategic objectives and enhancing shareholder value.
Execution of its fully integrated sustainability strategy
Maynilad believes that the implementation of its sustainability strategy will drive positive business impact across its operations.
By investing in initiatives that ensure a reliable and optimized water supply, it mitigates water security risk, which in turn secures long-term revenue.
Maynilad’s strategies relate to the execution of its NRW management strategies, procuring and generating renewable energy for operations, reducing its fuel-related operating expenses, upgrading its energy consumption mix, and minimizing its environmental footprint.
These efforts are aligned with its commitment to sustainable practices and demonstrate its proactive approach to addressing environmental challenges.
Maynilad’s growth initiatives and programs, such as its Enhanced Lifeline Program, are designed not only to expand its service offerings, but to reach underserved communities, including low-income customers.
By providing access to essential water services, Maynilad enhances its collection and earnings and, at the same time, fulfill its commitment to social responsibility and community development.
These initiatives reflect its dedication to making a positive impact on society and supporting the well-being of the communities we serve. To address its emissions, Maynilad is actively pursuing initiatives to achieve carbon neutrality by 2037.