Maynilad allocates P2.2B for water recovery projects

February 08, 2014

West Zone concessionaire Maynilad Water Services, Inc. (Maynilad) is spending P2.2 billion this year for its Non-Revenue Water (NRW) Reduction Program, to further reduce its  water losses. Around 80 % of Maynilad's water losses are due to leaks and illegal connections (physical losses) while the rest are losses due to inaccurate water metering (commercial losses).
Of the said amount, 1.4 billion will go to pipe replacement projects in select portions of Manila, Caloocan, Malabon, Valenzuela, Paranaque, Las Pinas and Cavite City. Meanwhile, some P665 million will be used for the company's meter management projects, establishment of smaller District Metered Areas (DMA), leak repairs and diagnostic activities. The rest of the budget will be used for leak detection equipment and technical services.

From 41% in 2012, Maynilad was able to slash its NRW level to 35% in 2013.  This translates to a water volume recovery of over 143 million liters per day (MLD) of potable water, which is enough to serve the supply requirements of almost 700,000 individuals.
“We still need to invest in our NRW Reduction Program because we have yet to reach our economically optimal NRW level,” said Maynilad President and CEO Ricky P. Vargas.

Based on its current water demand, water supply and cost of recovering water losses, Maynilad has projected its optimum NRW level at 20%. The World Bank recommends that NRW should be less than 25% of the total water produced.  

The economically optimal level of NRW is achieved once the marginal cost of reducing NRW exceeds the marginal benefits (water savings).

Maynilad is the concessionaire of the Metropolitan Waterworks and Sewerage System (MWSS) for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (all but portions of San Andres & Sta. Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the Districts of the Holy Spirit & Batasan Hills), Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; Cavite City, the cities of Bacoor and Imus and the towns of  Kawit, Noveleta and Rosario, all in Cavite Province.