BOSTON – Private water concessions in Manila have driven water coverage from under 60% to nearly 100% between 1997 and 2015 and created a more positive environment for private company participation going forward. Out of this transformation have emerged domestic players, Manila Water Company and Maynilad, which have become global benchmarks for water infrastructure public-private partnerships (PPP) in developing countries. Their success points to additional private water infrastructure investment beyond Manila that hinges on a mix of regulations formalizing water districts, standardizing contract structures, and guaranteeing contracts to attract investors.
Bluefield Research has released a new Market Insight, The Philippines Extends Water PPPs Beyond Manila, which analyzes the emerging opportunities in the Philippines to develop its municipal water market nationally. The country’s PPP Center has nine strategic projects lined up through 2020. The success of the US$542 million Bulacan Bulk Water Supply Project, currently awaiting final bids, represents a key milestone to prove the government ability to enable private participation beyond its capital city.
Price-competitive European and Asian water players– partnered with local construction firms– are poised to play a significant role in the country’s development through these tenders. At the same time, EPC players can address Manila Water and Maynilad’s required ramp-up in capital improvements to meet wastewater treatment demands. Bluefield anticipates the Philippines will scale in terms of private water participation between now and 2018, when the first tenders reach fruition. As a result, a host of companies are now positioning to tap into the market’s resurgence.
Bluefield Research tracks the private sector’s growing role in the ownership & management of water production and distribution, including utility management, independently owned water systems, concessions, and investment strategies.