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PUBLIC CONSULTATION FOR THE FOURTH RATE REBASING DOCUMENTATION Cainta Elementary School Auditorium 5 September 2018 Public Information Department Office of the Chief Regulator MWSS Regulatory Office Katipunan Road, Balara, Quezon City Public Information Department Office of the Chief Regulator TABLE OF CONTENTS Brief Background and Overview……………………….……………………………….....2 Executive Summary….…………………………….…………………………………………....2 Objectives...………………………………………………………………………………………….3 Discussion…………………………………………………………………………………….……...3 Highlights of the Open Forum……...………………….………………………….……….4 Annexes……………………………………………………………………….…..……….………...9 Annex A Directory of Participants………………………………….....……………..9 Annex B Presentation Materials of the TCI and CG&Co…………….….….22 Annex C Presentation of MWSS Regulatory Office.………………………….37 Annex D Photos of the event, invitation, letters and program…………39 Annex E Concept Note………………………………………………………………….…48 Documentation of Public Consultation 5 September 2018 1 Public Information Department Office of the Chief Regulator DOCUMENTATION OF PUBLIC CONSULTATION FOR THE FOURTH RATE REBASING BRIEF BACKGROUND AND OVERVIEW The MWSS RO is mandated to conduct a Rate Rebasing exercise every five years pursuant to the Concession Agreement entered into by the MWSS and Manila Water and Maynilad. Rate Rebasing is a periodic performance review and general tariff adjustment that sets the maximum rates the Concessionaires may charge for their services. During the rate rebasing review, the MWSS-RO evaluates the two concessionaires based on their compliance to key performance indicators (KPI) and business efficiency measures (BEM) goals, taking into consideration expenditures and investments to achieve the targets. In the same direction, the concessionaire’s business plans, which lay the framework for new service obligations and anticipated future investments as the concession moves forward, are also assessed by MWSS-RO. When doing these, it becomes critical for the regulator to secure inputs from the public and other stakeholders like LGUs to validate both performance and business plans. Hence the need to conduct public consultations and other fora. EXECUTIVE SUMMARY The Public Consultation for the Fourth Rate Rebasing conducted on 5 September 2018 is the first of the series of public consultations that MWSS RO will hold for the 2018 rate rebasing. It is the fourth rate rebasing exercise under the Concession Agreement. It was held at the Cainta Elementary School, A. Bonifacio Ave., Cainta Rizal. Documentation of Public Consultation 5 September 2018 2 Public Information Department Office of the Chief Regulator Hosted by the MWSS-RO through the Public Information Department of the Office of the Chief Regulator in coordination with Manila Water, the Public Consultation attracted a total of 367 participants representing the Local Government Units of the Manila Water concession area. Officials from MWSS-RO and Manila Water were also present. Attached as Annex A is the Directory of Participants. OBJECTIVES The Public Consultation for the Fourth Rate Rebasing aimed to: 1. To lay down the results of the Fourth Rate Rebasing 2. To inform customers and stakeholders on the basis of tariff adjustments, factors and considerations included in the computation and hoe these translates into their water bill. 3. To gauge how the rate adjustments will be received. 4. To elicit comments and suggestions on the adjustments. DISCUSSION The Public Consultation began with presentations from the Consultants and from the Chief Regulator of MWSS RO. Test Consultants Inc. and Constantino Guadalquiver & Co. Presentation In his presentation, Engr. Rolando Roca presented the approved and on-going projects of Manila Water Company Inc. and how water rates are computed or how did MWSS come up with the indicative rates. MWSS RO Presentation In his presentation, Chief Regulator, Patrick Lester N. Ty presented the Indicative rates for Manila Water Company Inc., He also explained the effects of the rate adjustment to the water bill of the Consumers. Attached as Annexes B, and C are the presentation materials of MWSS RO and Test Consultants Inc. and Constantino & Guadalquiver Co., respectively. Documentation of Public Consultation 5 September 2018 3 Public Information Department Office of the Chief Regulator The participants were given time to raise their questions and concerns. In the open forum, MWSS RO officials made sure that all inquiries and complaints were clarified and resolved. HIGHLIGHTS OF THE OPEN FORUM The participants in Rizal and Local Government Units in different areas of Rizal raised several concerns and issues during the open forum. Below are the highlights of the open forum. Customers Questions and Issues Raised During Open Forum Name of participant Question Response a. Rowena Roxas Ang tubig noon 2006 Ang design capacity ng Ruby dumating si Manila Water ating mga treatment plants nagkaroon po kami ng ay hindi po naka design malinis na patubig, nung doon sa dinanas natin na June at July nagkaroon po turbidity na raw water po kame ng paglabo ng tubig doon sa La Mesa 300 NTU sa San Mateo, ito po ang turbidity. Hindi po aking tanong, ito po ba ay nakadesign ang gating mararanasan naming taon planta. Ngayon po ang taon? Ang paglabo ng gagawin ng tubig sa aming bayan? At concesisonaires ay isa pa po ano po yung iupgrade ang gating mga pinakitang proyekto para planta. Iuupgrade po ang masolusyonan an gaming treatment process para naranasang paglabo ng hindi nap o natin tubig sa aming bayan ng maranasan ang ganoong San Mateo Rizal? turbidity. May project din po ang ating mga Konsesyonaryo na tinatawag nilang watershed management protection. Like sa ipo tree planting at may mga taong kinuha para magbantay doon. Sa La Mesa yung Documentation of Public Consultation 5 September 2018 4 Public Information Department Office of the Chief Regulator perimeter fence ay inaayos. Ito po ang mga proyekto ng mga Konsesyonaryo para maprotektahan an gating mga waste water bago makapunta sa ating mga treatment plant. b. Rodolfo B. Ngayon po ay tapos na ang Javellana Jr. rate rebasing ng mga Just to clarify sa mga consultant at inaprobahan statements ni RJ, nilista ko nap o ng MWSS Regulatory ang mga comments, lay Office. Para lang po mag ban dam unplimented bigay ng konting paalala project ito po ay 2008 rate siguraduhin po ng Chief rebasing. The concept of Regulator ang timing ng rate rebasing is every 5 mga rate increases, years. Pag hindi po ginamit prudently incurred bago ang budget binabalik poi iimpose ang ano po ang yon sa OCP. Kaya every 5 bagong rate adjustment, years po tayo nag rerate ikalawa ang deputy for rebasing para masiguro na financial regulator dapat tama ang ginagawa nila. financially audited ang 2013 inudjust nap o ang exact figure sa books of taripa para sa lay ban dam accounts ng mga kaya noong 2013 concessionaires, ibig nagkaroon ng negative sabihin nagawa na ang rate adjustment. proyketo. Pangatlo at Pangalawa, ang business panghuli, siguraduhin po plan request sa corporate ng technical deputy office, just a correction the regulation na those MWSS is not under the infrastructures are in place MWSS Corporate office we and being enjoy of water are under the MWSS Board consumers and for of trustees, ganun din po validation. ang MWSS Corporate office, we do not report in Mga proyekto ng mga the MWSS Corporate concessionaires ay office, what we are kailangan masusi bantayan recommending here will ng gobeyerno dahil sa be recommended to panget na karanasan. MWSS Board of Trustees. Pangatlo, concept of Documentation of Public Consultation 5 September 2018 5 Public Information Department Office of the Chief Regulator Ngayon po may calamity advance connections. Ang mitigation noon ay concept ng Concession Calamity fund na hindi po Agreement and rate siguro alam ng mga rebasing we are supposed regulators ngayon pero international standards, alam ng 3 nakaraang concept and principles. regulators. We’re utilizing how other countries compute the tariff. Ito pong system na to mga future cash flow and future projects lahat po diyan kinokonsider kaya hindi po tama ang concept of advance payment di po natin kinukuha lahat ng 5 years’ worth revenues babayaran na ngayon. Ang payment po natin ay dahan dahan. Lahat ng project may correspondent revenues. Maraming Salamat and thank you for being vigilant. Just like to clarify yung hindi maintindihan ang business plan, that’s why we hired the consultants. Internationally recognized po ang kinuha natin. We got them para pag-aralan lahat. Para suriin ang business plan ng mga concessionaires. c. Coronel Victoria Manila water really give Thanks po sa mga Santos Ramon the best terms for water comments, we like to services. I really like to reassured you that MWSS appreciate the panel who RO will continue to be Documentation of Public Consultation 5 September 2018 6 Public Information Department Office of the Chief Regulator really explain what is Rate doing Public Consultation. Rebasing. The cost is Sisiguraduhin namin na nothing as long as you will gagawin namin ang aming be given life (water). My trabaho at ang aming question is just in case mandate na iregulate ng there is a need to increase tama ang mga the one you have konsesyonaryo. presented to us within three years, will you recommending additional cost without public consultation? d. Marvin Villacorta Maghihintay pa po ba tayo Water supply is the sa katulad sa electricity jurisdiction of MWSS natin na nagkaroon ng Corporate Office. There is rotating brownouts, a plan right now for hihintayin pa po ba natin additional water supply, magkaroon ng water it’s call Kaliwa Dam. Part of sortage? I think we need to New Cnetenial water include again lay ban dam. supply project of the Corporate Office. We are hoping that it will be online by 2023. e. Jaime co Jr. Ang Mga hirap na Salamat jaime sa mga nararanasan noon sa pag comments, ginawa po iigib ng tubig ay hindi na talaga namin ang rate nararanasan yung rebasing upang masiguro consistency na binigigay na mamaintain ng ngayon ng dahil sa taripa concessionaires ang na dinidiscuss niyo ang magandang serbisyo mga proyekto.
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