Manila Water scouts new sources as East Zone demand rises

Manila Water Co. is looking beyond its current water sources as rising demand and climate risks push the East Zone concession toward a more diversified and resilient supply portfolio.

At the PSE STAR Investor Day on Tuesday, Manila Water President and CEO Roberto Jose Locsin said population growth would continue to drive demand, requiring the company to secure additional capacity well beyond its existing sources.

“As you take a look at the demand profile, it does get up there,” Locsin said, adding that by 2038, the company could need “another Wawa or something similar” to future-proof supply for East Zone customers beyond the current concession life.

Manila Water is targeting more than 3,225 million liters per day (MLD) of additional capacity by 2037, on top of investments that have already added about 535 MLD.

The company is drawing on a diversified supply portfolio that includes Angat, Wawa, and East Bay to give it greater flexibility as weather patterns become less predictable.

Wawa alone has a maximum raw water capacity of 712 MLD, while new treatment facilities are expected to contribute about 130 MLD in their initial phase.

Locsin said the company is also squeezing more value from the water it already produces by keeping non-revenue water (NRW) well below the regulatory ceiling.

NRW currently ranges from 13.25 percent to 14.25 percent, compared with the regulator’s 15-percent requirement.

“We really make the most of every drop that we produce,” Locsin said, noting that NRW levels are incorporated into production and demand planning.

The company is also preparing for its next rate rebasing in 2028. Manila Water expects to submit its service improvement plan in March 2027, followed by negotiations later that year, with approved rates targeted for implementation in January 2028.

Locsin said any resulting rate adjustments are typically spread over five years to soften the impact on customers.

For Manila Water, however, the bigger challenge is making sure the taps keep flowing as the East Zone grows.

The search for additional sources reflects a shift from simply meeting near-term demand to building enough supply redundancy to withstand population growth, climate uncertainty, and future water stress.

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