Metropolitan Waterworks and Sewerage System CORPORATE OFFICE
2020 YEAR END ACCOMPLISHMENT REPORT
Description Page EXECUTIVE SUMMARY 3
TABLE OF Part I ENSURED CONTINUITY OF WATER SECURITY PROJECTS CONTENTS A Ample, Stable Supply 5 B Water Security and Reliability 6 Projects • Angat Water Transmission 6 Improvement Project • Bigte-Novaliches Aqueduct No. 7 7 Project • New Centennial Water Source- 7 Kaliwa Dam Project • Bulacan Bulk Water Supply Project 8 Stage 3a • Sumag River Diversion Project and 9 Umiray-Angat Transbasin Facilities Long-Term Rehabilitation Project • Feasibility Study for the Construction 10 of Ipo Dam 3 • Long-Term Water Supply Source for 10 Metro Manila C Milestones in Concessionaires’ 11 CAPEX Projects
Part II EFFECTIVE AND EFFICIENT OPERATIONS A Safe and Adequate Amount of Water 13 Supply B Responsibility for Sewerage and 13 Sanitation Service
Part III CREATIVITY AND PARTNERSHIPS IN MANAGING OUR ASSETS A Best and highest use of our assets 15 through inter-government partnerships B Revenue-yielding measures 15 C Use of MWSS' assets for the 15 Administration's key transportation projects D Transfer of Ownership of Used Motor 16 Vehicles to various LGUs E Implemented a Science-based 16 Watershed Reforestation
Part IV FISCAL PRUDENCE & FINANCIAL STABILITY A Financial Performance 17 B Strong EBITDA 17 C Compliance with Statutory Obligations 18 D Borrowing Ceiling
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Part V GOOD CORPORATE GOVERNANCE
A Improvement in Corporate Governance 19 Scorecard (CGS) Rating by the GCG
B Advance remittance of Full Dividends for the 19 year 2019
C Citizen-centric Service 20 D Passed the 2nd Surveillance Audit on ISO 20 9001: 2015 E Passed Stakeholders Satisfaction Survey 20 F Improved Freedom of Information and Data 21 Privacy Policies
Part VI SERVICE AND ORGANIZATIONAL EFFECTIVENESS A Innovation in Service Delivery 22 Flow Metering B Information Systems Strategic Plan 22 Network IT Infrastructure Asset Management Information System C Ensured Talent Competence 23 D Maintained CSC Level 2 Accreditation under 24 PRIME-HRM
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EXECUTIVE SUMMARY
The MWSS-CO is grateful for the privilege to be stewards of one of life’s most important natural resource- - water. The pandemic, water shortage, and calamities we experienced in 2020 served as timely reminders on the importance of the critical role we play to live up to President Duterte’s vision through his Ambisyon Natin program.
2020 was the year to shine the brightest light possible upon successes, achievements, and positive outcomes. We have also mined through the endless challenges, missed expectations, unexpected directions, remembering that effort and partial wins deserve recognition too.
The year 2020 saw how MWSS worked to best implement the three (3) projects included in the Administration's Infrastructure Flagship Projects (IFPs). These projects include: (1) Aqueduct No. 7 projects, bid out and awarded; (2) Angat Water Transmission Improvement Project/ Tunnel 4, completed three (3) months ahead of schedule; and (3) New Centennial Water Source-Kaliwa Dam Project, completed the Detailed Engineering Design (DED) on schedule while implementation issues for Notice to Commence Construction (NTCC) are being addressed. The Sumag River Diversion Project, after years of suspension (2016 due opposition by LGU-Quezon Province), has re-started construction mobilization. Also, we are fast-tracking the submission of necessary requirements for NEDA-ICC of Kanan Dam project unsolicited proposal, which will provide 250 – 800 MLD (Phase 1 and 2) raw water supply for the next 2-5 years; 11 CAPEX projects approved by the MWSS Board of Trustees (BOT) under the 2018 Rate Rebasing are in various stages of completion; and five (5) additional water sources projects from Rizal, Cavite and Marikina rivers as part of mitigating measures to augment the water shortage during summer will soon be onstream.
We put the necessary calculations, planning, preparation, and execution of measures to ensure water supply continuity. Even as the 2020 beginning elevation of Angat was below the normal high-water level of only 201 meters compared with the 2019 water crisis (the beginning elevation was 213 meters), we have crossed the summer of 2020 without experiencing a water shortage.
We have achieved seamless service delivery, calibrated our systems and processes to adjust to the “new normal”, confident that customer’s water supply remains adequate and sanitation services are met.
We have also delivered better value through measuring client satisfaction, defined our internal and external services, used our assets to support government-wide improvement and revenue-generation, and maintained our financial strength, which helped deliver more substantial results for our full year.
Synergy and partnerships were the key strategies that brought together our various programs, activities projects, and we are grateful for our stakeholders’ invaluable participation and support.
Our prospects for the future necessitate more actions to achieve water sustainability and to be water secured. On water security, it is not only a matter of having adequate water supply, but it must also consider the wide range of concerns on wastewater collection or sewerage systems, flood management or drainage, watershed management, the health and condition of our river basin, and most of all the free access to potential sources of raw water. Thus, it further requires revisiting our water related policies and integration of efforts of all agencies of
government involved in water and sanitation programs. 3
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In order to accomplish our task of a water secure future, MWSS needs to pursue short to long term projects and come up with a reliable blueprint for the future to become a credible and reliable agency for its water security programs.
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Part 1: ENSURED CONTINUITY OF WATER SUPPLY
A. Ample, Stable Supply
The starting Angat elevation of only 201 meters in January 2020, instead of the ideal 212 meters, was a forewarning of what lies ahead for the year. Faced with an atypical scenario of interlocking crises, water scarcity, pandemic, natural calamities, made MWSS even more resolved to achieve its three (3) primary goals: universal access, efficiency, and sustainability.
Between careful management of existing water sources and strong conservation efforts, the MWSS was prepared to meet supply and demand conditions in 2020. To maintain the continuous, safe water supply in the National Capital Region, provinces of Cavite, Rizal, and Bulacan, we have ensured that raw water supply would be sufficient through:
1. Science-based studies and justifications provided to NWRB to increase Angat Dam raw water allocation from 40 cubic meters per second (cms) or 3452 million liters per day (MLD) to 46 cms or 4000 MLD, in order to meet the requirements of Maynilad and Manila Water. The allocation for MWSS since March was at 46 to 48 cms depending on Angat water storage; 2. Rationalized the 60:40 sharing of raw water at the portal to ensure no customer is without water for 24-hours; 3. Optimized the operations of deep wells and developed more wells, especially in areas with validated groundwater availability; 4. Constructed additional water storage, pipelines, and pumping facilities to increase system reserve, reliability, and capability to meet the demand at low supply conditions; 5. Improved water conservation efforts science-based solutions such as pressure and supply availability reduction, advocating responsible use of water, reducing water pressure during night time to maintain awareness; 6. Optimized raw water sourced from Laguna Lake for water treatment; 7. System improvements by installing line boosters and pressure regulating valves; 8. Strictly implemented necessary rotational water service interruptions. Regular water pressure reduction was between 10 PM -4 AM or an 8-12 hours supply availability at ground floor water pressure. The exception is only during emergency repairs and maintenance activities; 9. Facilitated the Concessionaires supply chain requirements for their equipment, chemicals, supplies in light of importation and travel restrictions; and 10.In preparation for summer 2021, we have requested NWRB to suspend NPC’s spilling operations and maintained the elevation at 213 for the remainder of December 2020.
Many things have consistently remained at par despite the unprecedented challenges in ensuring the water supply sustainability, in this period of pandemic:
1. Critical operations of facilities remained operational. Essential critical infrastructure workers were at work to prevent and repair pipeline breaks so that homes will not be without water for an extended period; 2. Water quality was maintained within DOH’s strict parameters; and 3. We have helped customers adjust to financial challenges with the no disconnection and moratorium in bill payment.
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B. Water Security/Reliability Projects
MWSS demonstrated its commitment of accountability through the protection and management of our finite water resources. 2020 saw how MWSS worked double-time in the preparation of major infrastructure projects towards the rehabilitation and improvement of existing infrastructure as well as the urgent development of new water sources for its service area.
Synergy and partnerships were the key strategies employed by MWSS in order to bring together the various stakeholders to pursue the implementation of our various infrastructure projects. MWSS recognized the invaluable participation of the private sector in harmony with the support of the local government units (LGUs), indigenous people (IP), and other non-government organizations (NGOs).
We put together and committed our efforts and determination for the top seven (7) water security projects.
1. Angat Water Transmission Improvement Project (AWTIP)
The original target completion date of AWTIP is 07 September 2020, but the project was completed three (3) months ahead of schedule. Its early and partial energization in April 2020 saved the difficult situation when President Duterte, due to the declining level of Angat, issued Administrative Order No. 24 dated 18 March 2020, requiring a 20% reduction in water consumption. The NWRB, on the other hand, issued Memorandum Order No. 2020-01 dated 2020 requiring unhampered water supply to households, hospitals, and isolation facilities in line with Republic Act 11469 or the Bayanihan Heal as One-Act. The partial energization of AWTIP, coupled with supply and pressure management has enabled MWSS to meet both Orders.
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2. Bigte Novaliches Aqueduct No. 7 Project (BNAQ 7 or AQ7) AQ 7 is a component project of AWTIP, as part of the re-engineering works to improve the Angat-Ipo-La Mesa raw water transmission system. It is a worthwhile project because it will allow the temporary decommissioning, for rehabilitation at any one time AQs 1 to 5. To expedite project implementation, MWSS secured ADB's concurrence for advance procurement. Contract awards for Civil Works and Consultancy Services were perfected with the winning Contractors right after the loan from ADB took into effect.
3. New Centennial Water Source-Kaliwa Dam Project (NCWS-KDP or Kaliwa Dam Project) The Kaliwa Dam is the most suitable and cost-effective key medium-term water source project which will provide water security of a quantity and quality to meet the demand up to 2028. A dual water source system is necessary for a megalopolis like Metro Manila in case of unexpected emergencies.
President Duterte, in support and recognition of the urgency in expediting water-related infrastructure projects issued Administrative Order No. 32 that directed regulatory agencies not to delay review and approval of permits. He also instructed all government agencies through an executive order, to prioritize the project's review and approval. The project continues to be beset by regulatory and unforeseen delays
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brought about by pressure from anti-progress radicals’ opposition to the construction of the dam.
The Detailed Engineering Design (DED) stage is 92.62% as of December 2020. The DED completion could have been earlier but the pandemic has affected the following activities and eventually lead to 120-days’ of time extension.
1. Delays in government approvals and related agreements such as the Certification Precondition / Free and Prior Informed Consent from the National Commission of Indigenous Peoples and the Special Use Agreement for Protected Areas (SAPA) with the Department of Environment and Natural Resources; 2. Delays in the process of relocating communities in the Project area; 3. Delays in the completion of geotechnical investigation, other tests, and site visits needed to generate the information required to complete the DED; and 4. Difficulties in bringing in imported equipment and machinery and technical or highly- skilled workers on a timely basis due to travel restrictions.
Parallel with the completion of the DED, MWSS vigorously pursued with urgency the satisfaction of DENR's 21 conditions contained in the Environmental Compliance Certificate, notable are: (a) Comprehensive Social Development Plan (b) Ancestral Domain and Cultural Heritage Sustainable Development Plan; (c) Cultural Heritage Protection Plan; (d) Indigenous People Development Plan; (e) Integrated Watershed Development Plan (f) Mitigating measures for sacred sites, communities affected by the reservoir.
While consent of the indigenous peoples and cultural communities had reached a positive outcome, defending other ECC conditions such as the Certificate Precondition to be issued by NCIP, the most contentious requirement of the Free Prior and Informed Consent; the Special Land Use Permit from the DENR, and the Writ of Possession for the right-of-way at the tunnel outlet, remains the outstanding concerns before construction can start.
4. Bulacan Bulk Water Supply Project (BBWSP) Stage 3
BBWSP is a public-private partnership concession contract between MWSS and Luzon Clean Water Development Corporation (LCWDC). Stage 3 requires the development of water sources to provide treated bulk water to the remaining 11 towns of Bulacan, including future supply augmentation to Stages 1 and 2. One of the milestones in Stage 3 is the signing of the Memorandum of Agreement with the Water Districts, which will be used by LCWDC in updating its Business Plan. Of the 11 WDs, five (5) have executed MOA with MWSS/LCWDC. The other 6 WDs have signified interest but there still challenges on their respective economy of scale under Stage 3.
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5. Sumag River Diversion Project (SRDP) and Umiray-Angat Transbasin Facilities Long-Term Rehabilitation Project (UATF-Rehab)
In November 2019, President Duterte instructed MWSS to resume the implementation of the projects despite pending issuance of Gratuitous (Quarry) Permit from the LGU-Quezon Province. MWSS diligently liaised with the DENR and faithfully complied with the Provincial Mining Regulatory Board's additional conditions which led to the issuance of the Gratuitous Permit on 31 July 2020.
MWSS assisted the Dumagat-Remontados to organize into a political structure recognized by the SEC. After its SEC registration and NCIP’s recognition, MWSS released to the Indigenous Peoples Organization (IPO) the P20.0 Million Development Fund for the indigenous communities affected by the UATF and SRDP. On 1 August 2020, the NCIP approved the Certificate of Preconditions for UATF and SRDP.
With the permits and clearances already secured, preparations for the resumption of construction works were pursued as follows:
SRDP: 1. Commenced the investigation of structures completed in 2016 for the reconciliation and updating of the project cost. 2. Engaged a new consultant to prepare the design for interconnection works; 3. Started negotiation and preparations for the airlifting and mobilization of heavy equipment and materials; 4. Explored options and sought opinions from agencies with oversight functions in order to find way to support the Provincial Government of Quezon's Water for Life Program, a package of livelihood, health and welfare protection for Quezonians, in lieu of royalty payments to cover the extraction of raw water from Umiray, General Nakar.
UATF Rehab: Target physical accomplishment EO 2020 is 99.96% vs. actual accomplishment of 78.47% or a variance of 21.48%. The delay was due to heavy rains and the remaining sludge inside the tunnel due to Typhoon Ulysees. The Contractor requested for Time Extension extending the delivery date to 30 September 2021.
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6. Feasibility Study for the Construction of Ipo Dam 3
The Feasibility Study (FS) was funded under the NEDA's Project Development and other Related Studies (PDRS) portfolio. The study aimed to determine whether MWSS's estimated 40 million cubic meters of excess water from Ipo Dam 2 is valid in terms of value, sustainability, and efficiency and will be a source of additional water supply for Metro Manila and irrigation for farmers served by the Angat.
On 28 December 2020, the Final FS was completed. The result of the value engineering analysis identified the dam's best location in terms of capturing excess releases through the main turbine for irrigation and environmental requirement while increasing domestic water supply.
Given its nature and cost, the project shall undergo NEDA-Investment Coordination Committee review for construction implementation approval.
7. Long-term Water Source Development for Metro Manila MWSS completed the detailed evaluation of the Unsolicited Proposal submitted by San Miguel Corporation and granted it “Original Proponent Status” (OPS). The decision to grant SMC with OPS came after MWSS BAC’s diligent review and evaluation. The project will be submitted to NEDA through the Public-Private Partnership Center.
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C. Milestones in Concessionaires’ CAPEX Projects Following the government’s declaration that the Concession Agreement (CA) should be renegotiated and the Concession Agreement is good only until 2022, CAPEX for water source projects was put on hold, lenders to Concessionaires stopped releasing loans, and concessionaires’ shareholders refused to raise capital. Due to funding challenges and diminished capability to cover immediate and short-term service improvement projects, most of the targets had not been attained. Under the foregoing circumstances, among the projects that are proceeding and are supervised, monitored by MWSS are: For the 2020 water year, several CAPEX projects were lined up for implementation to mitigate the projected supply reductions by NWRB, and its aftermath, the rotational water interruption, when the Angat dam did not reach 212 meters in 2019. The Concessionaires also pursued mitigation steps like additional mobile water tankers, stationary water tanks for drinking purposes, cloud seeding operations, and established rainwater harvesting facilities. Reactivation/rehabilitation of deep wells to supply another 100 MLD in the supply network was completed and can be tapped anytime during emergency and shortage situations. Projects tapping rivers in Cavite (Maynilad) and Marikina (Manila Water) as an alternative raw water source have proceeded as planned.
West Zone East Zone
MAYNILAD
Continued reduction of water losses through sustained pipe replacement and repair activities, optimization of two water treatment facilities in Laguna Lake, upgrading of La Mesa Treatment Plant 1 were the mitigation measures to lessen the impact of supply deficit in the West Zone. Status of CAPEX projects are shown below:
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MANILA WATER
Various capital expenditure projects were programmed to secure additional supplies to increase water delivery efficiency, among them are preparing new deep wells, upgrading existing infrastructure, tapping the East Bay of Laguna Lake, and Wawa Offtake agreement. Given the inherent dependency on the accessibility and mobility of construction personnel, as well as the availability of materials and equipment from a supply chain that extends overseas, delivery timelines however were affected by the pandemic. Project Outcomes Significant Dates Remarks/Status Novaliches-Balara Aqueduct No. 4 Project New 3.1m diameter x 7.3km long Target Completion: 27 The target accomplishment is 73.95% vs actual Construction of a new aqueduct along aqueduct June 2022 accomplishment of 73.3% or -2.06% slippage. Commonwealth Avenue from La Mesa Dam in Construction of tunnel works remains on critical path. Novaliches Quezon City to Balara Water Reliable transmission of 1000 1 Treatment Plants MLD raw water for treatment at the Balara Water Treatment Plants Project Cost: PHP 5.542 Billion (WTP) Implementation Duration: 1775 Calendar Days
Wawa-Calawis Water Treatment Plant Phase 1: 80 MLD bulk water 2020 to 2022 This is an integral component of New Wawa Bulk Water Construction of Water Treatment Plant, source from Tayabasan Multi- Supply Project. However, WawaJVCo is fully responsible Treated water reservoir and Conveyance basin for the funding, construction, operations and ownership of System the new Wawa Dam and and multi-basin. Package #1: Water Treatment Plant: 19.50% Phase 1: Project Cost - P5.0 B Package #2: Access Road: 54.14% Phase 2: Project Cost - P19.0B Package #3: Pipeline 30% complete 3A: Transmission Line, 97.40% complete 3D: Pumping Station: for bidding Package #4: 2 Transmission Line: 77.79% Pumping Station/Reservoir, for land acquisition Package #5: 5A: Pumping Station, for land acquisition 5B: Reservoir, for expropriation of land Transmission Line: 87.19%. Package #6 Pumping Station: 19.80%; pipeline: 5% Phase 2: 438 MLD Bulk water 2021 to 2025 Package #s1- Water Treatment Plant, #2-Tunnel (5 km source from Upper Wawa River 1800 mm) and #3 Pipeline (5 km 1800 mm pipe) are for reference design Laguna Lake East Bay Project 250 MLD from East Bay of Ph1: 50 MLD in 2023 Transmission and Pipeline: 96.5% complete; Laguna Lake Ph2: 200 MLD in 2024 Jalajala PS and suction and discharge lines - 52.6% Project Cost: complete. Phase 1: 2BPhp (50 MLD) -First water 2023 WTP, Transmission line, pump Morong: 26% completed station and reservoir Submarine Pipeline (Morong and Binagonan- 48.27% 3 Phase 2: 12BPhp (200MLD)-First water 2024 complete Phase 2 - WTP - land acquisition, Inland and Submarine •subject for the approval of the Amended pipeline - 98% completed Concession Agreement Construction of 20 MLD WTP = 99%
Marikina Portable Treatment Plant Project 20 MLD Water Treatment Plant Implementation Period: Development of Marikina River and 30 MLD water intake 2020 to 2021 Physical accomplishment is 99%, but completed structures construction of 40 MLD raw water intake and 20 MLD Pumping Station undergoing rehabilitation due to damage caused by portable treatment plant 1 MLD Reservoir WTP : 10 Nov 2020 Typhoon Ulysees Conveyance system Conveyance structures: 83% complete 4 Pumping Station, intake Pumping Station, Reservoir, water intake: 99% complete structures, Reservoir: 3 Clarifier Tanks arrived at Marikina site June 21 to July 11, 15 Nov 2020 2020
Conveyance Structure: Rizal Wellfield Project 8 contract packages: Lucban, Implementation Period: 16 deepwells are operational deepwells with a total yield of Development 27 deepwell well sites within Maguey, Taktak, Ynares gym, 2020 to 2021 17.4 MLD (MDRRMO and Taktak contract packages) Rizal Province Kinabuan, Eastwood Greenview, Forestryville, and MDRRMO 26 MLD in 2020 11 deepwells with 32.6 MLD yield are for 24 MLD in 2021 emergency/standby supply Estimated yield: 49.4 MLD 5
Tunnel No. 5 Project Improved reliability and With ROW issues Design and Construction of a new Tunnel No. operational flexibility in the Umiray- Award date will be dependent on result of negotiation of Angat-Ipo raw water conveyance Concession Agreement 6 5 including intake and outlet works 12 system Project Cost: P4.0B The bid submission was extended from 08 January 2021 to
Additional Supply: 1,642 MLD 19 January 2021. Page
PART II. EFFECTIVE AND EFFICIENT OPERATIONS
A. Safe and Adequate Water Supply
At the East concession area, water availability was almost at 100% at 7psi for a 24-hour duration. There are days though that supply is available 100%-24 hours water though not all have 24-hours at 7 psi.
At the West Concession area, water availability averages 85.84% at a 24-hour duration. Customers with a minimum water pressure of 16 psi are at 43.86%, while 81.89% enjoy water supply at a minimum water pressure of 7 psi.
The table below shows the Concessionaires' service obligations vis-a-vis their performance.
The number of households with access to a safe water supply increased 211,542 as of November 2020. The summer supply deficit brought about by the low reservoir storage in the Angat Dam, and the higher demand for hygiene and sanitation prompted the Concessionaires to scale down their growth targets and reduce water pressure to ensure equitable distribution of available supply.
Considering that customer, permit issuance, holidays, are dependencies factored by the pandemic, there were few new water connections installed during the year.
B. Sewerage and Sanitation Service
Sewerage
Aside from accelerated service coverage targets under term extension of the Concession Agreement, MWSS complied with the Supreme Court Continuing Mandamus for the clean-up, rehabilitation, and preservation of Manila Bay. MWSS is mandated to complete before 2037, all wastewater facilities within its service area.
Construction of wastewater facilities require huge investment and acquisition of big
parcels of land and right-of-way’s to lay large diameter transmission mains. Because 13 of the unavailability of a suitable site for the needed facilities, some projects had to be Page
re-designed that negatively impacted overall cost and completion dates. Moreover, the 3-month stoppage brought about by the ECQ and subsequent quarantine restrictions heavily affected the targets and catch up plans to expand sewerage and sanitation coverage. The actual vs. target results show both Concessionaires have underperformed with variances against their respective targets.
Sanitation
Under the GCQ Guidelines issued by the DTI, emptying of septic tanks is excluded from the list of allowed activities, significantly affecting committed targets for the year. Only desludging activities endorsed by the barangay (since most checkpoints and barangays refused entry of desludging vacuum tankers) were carried out to avoid the environmental and sanitation problems.
Wastewater Effluent Standards. All wastewater facilities, 21 in the West concession and 40 in the East concession, were 100% compliant with the DENR DAO 2016-08 standards.
The Laguna Lake Development has approved the Concessionaires’ Compliance Action Plan (CAP) for each of its wastewater facilities. The approval is for 10 years and is necessary for the facilities to be retrofitted in batches, to reduce the environmental impact of the works in complying with DAO 2016-08. Progress of civil works in retrofitting of the STPs is encountered delays due to the pandemic.
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Part III. CREATIVITY AND PARTNERSHIP IN MANAGING OUR ASSETS
The MWSS may be considered the biggest landowner in the Philippines' water sector industry because of its conveyance right of way (ROW). Its property, plant, and equipment alone is valued at P46 Billion. Much of its vast asset portfolio presents significant management challenges under normal operations but even more under the "new normal". MWSS powered right through against the headwinds of 2020 in managing its assets in terms of accountability, reduction in operating cost, facilities condition, space utilization, and revenue generation.
A. Optimal use of our assets through inter-government partnerships:
1. Partnered with DPWH, QC-LGU, NHA, PCUP in protecting MWSS property at Balara against informal settlers. The property is the site of vital water supply facilities that services the East concession area, and its security and protection are paramount. However, the proliferation of informal settlers has been an uphill battle. MWSS ceded to DPWH a 1.146-kilometer portion of the Balara property for the Katipunan Avenue Extension Improvement Project. A win-win arrangement that solved the traffic congestion and, at the same time, the removal and resettlement of affected families;
2. Revived the partnership with the Philippine Army and the Philippine National Police in securing assets and facilities at the Kaliwa Dam Project, a conflict-afflicted area and home to vulnerable communities;
3. Established strong linkage with the LGUs of Bulacan to successfully clear right-of- way’s for the BNAQ 7 project. Fifteen (15) large commercial structures that encroached along the delineated construction path have been demolished. Five of the total 16 kilometers of the BNAQ 7 right-of-way had been cleared and fenced by the Concessionaires.
4. Strengthened risk management by enrolling manually-issued title to LRA's Title Upgrade Program and Land Titling Computerization Project. Online information on MWSS registered titles are now current, complete, and accurate.
B. Accelerated revenue-yielding measures
1. Due to the moratorium in the lease payment under the Bayanihan Heal as One Act, rental income from the lease of right-of-way dropped by 50% (only 42,640,000) compared with the 2019 collection of P83,834,305. To continue receiving payments from lessees, digital and bank transfer arrangements have been formalized.
2. Ten (10) renewal of lease contracts with an annual income of P30.0M for properties within the MWSS main compound and four new (4) lease contracts along aqueduct right of ways with an additional yearly income of around P600,000 were perfected in CY 2020.
C. Use of MWSS' assets for the Administration's key transportation projects
In support of the Administration's push for the development and faster completion of transport infrastructure projects, MWSS agreed to the development of its properties, namely:
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1. Use of MWSS Arroceros Compound for DPWH’s Palanca-Villegas Bridge Project, a priority project under China Government Loan;
2. Use of La Mesa property for DOTr’s construction of the guideway track and detour route for MRT-7 Line 7;
D. Transfer of Ownership of Used Motor Vehicles to various LGUs
To optimize stockyard management and put to good use motor vehicles that may be useful to the LGU’s, several motor vehicles with a carrying value of P2.668 Million were donated. A more efficient mode of disposal, good housekeeping, and accounting for inventories in MWSS’ book accounts.
Recipient LGU-Barangay Book Value Description San Juan, Batangas 678,274 AUV, Vacuum Bgy. Palahanan, Libato, Tankers Muzon, Talahiban Calasiao, Pangasinan 379,921 Vacuum Tanker Lumbunao, Iloilo 664,208 Water Tankers Mangaldan 965,793 Water Tankers, Pick-up, Truck TOTAL 2,688,196
The vehicles were re-purposed by the LGU for security patrol and water rationing in remote barangays.
E. Implemented a Science-based Watershed Reforestation
The Coronavirus pandemic (COVID-19) created unprecedented challenges to our on-the- ground forestry and conservation efforts. From our annual target of one million trees, we had to scale down to only 250,000 trees due to our partners' withdrawal of support when the economy closed and group activities restricted.
As tree planting is time-sensitive and with urgency for the planting season to continue, we have actively engaged our other industry stakeholders to ensure the continuation of our reforestation program. As always, planting occurred in the optimal time window to ensure that native seedlings have the best chance of survival. Even if it meant a later than usual finish to the season, we worked as late as we can to finish our programmed tree planting activities rather than delay or cancel.
The thought that our reforestation efforts may not move forward forced us to be more creative and efficient by capitalizing on technology such as Geographic Information Systems (GIS), satellite imagery, and remote sensing software tools to improve monitoring and generation of data in analyzing watershed health and tracking tree planting success rates.
276,482 691 Trees hectares
planted planted
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Part IV. FISCAL PRUDENCE & FINANCIAL STABILITY
A. Financial Performance
Budgetary Sources and Expenditures
There was budget slack compared with what was programmed in the COB. In response to the instructions by the DOF and GCG, we have reprogrammed our budget allocations and funded extrabudgetary COVID response expenses. Despite a lower budget surplus, actual work accomplished vis-à-vis financial resources made available is still significant considering the exceptional situation brought about by the pandemic.
Combined with our healthy operating cash flow and no near-term debt maturities, these improvements not only demonstrate a strong liquidity position, but also give us greater flexibility to seek investment opportunities that support our long-term growth.
Cash Position
The graph below shows MWSS' 3-year cash position, which reflects its financial strength to cover operations and pay off obligations.
PARTICULARS AMOUNT Cash Position Savings 621,269 Accounts 3,100,000,000 3,008,060,592 3,000,000,000 Current 276,429,146 Accounts 2,900,000,000 Time Deposits 2,729,414,908 2,800,000,000 Peso 2,674,905,645 Dollar 1,595,266 2,700,000,000 (P48.023/US$) 2,600,000,000 2,538,680,720 2,500,000,000 TOTAL P3,008,060,592
2,400,000,000
2,300,000,000 2018 2019 2020
B. Strong EBITDA
Combined with our healthy operating cash flow and strong cost management across all departments, we have achieved our target year-over-year.
The annual target EBITDA is P557.35. The preliminary EBITDA as of December 2020
stands at P805.81 Million, exceeding the targeted amount by P248.46Million. 17
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C. Compliance to Statutory Obligations
1. Remitted in Full Payments to BIR
MWSS is current in its obligations and has no outstanding internal revenue tax liability. MWSS is also compliant with the BIR reporting and filing obligations and the had satisfied all tax-related conditions. The table below represents the full and final payment of taxes remitted to BIR for CY 2020.
3. Settled Outstanding Obligations on National Government Advances
Notwithstanding MWSS' appeal to the DOF and the DBM to convert into equity the National Government's foreign borrowing from Japan Bank International Cooperation (JBIC) to finance the Angat Water Optimization Supply Project (instead of treating the loan as re-lent foreign borrowing of MWSS),all the principal and interests were remitted to the Bureau of Treasury on every scheduled amortization date. On 20 February 2020, the loan maturity date of the JBIC Loan, MWSS remitted P293.00 Million, the last and final payment of P3.5 Billion billed by the BTr.
E. Borrowing Ceiling
MWSS' capital stock has an available balance of P2.71 Billion, 41% higher than CY 2015 domestic loan balance. The debt ceiling balance stands at US$122.3 Million lower than CY 2015 debt ceiling level due cover made for the AQ-7 loan with ADB.
Status of Foreign and Borrowing Ceiling As of December 2020
Foreign Domestic 2020 2015 2020 2015 Borrowing Ceiling per Charter $600 Million Php3.0 Billion Loan Availments 351,587,151 280,575,655 Balance 248,412,848 $418 Million 2,719,424,344 P1.0 Billion AQ-7 Project 126,020,000 - Available Ceiling 122,392,848 2,719,424,344
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V. GOOD CORPORATE GOVERNANCE
We walked the talk in our commitment to good corporate governance. Our ability to provide value to our core and support services is in line with the aim of the Administration’s people- centered, clean, and efficient governance.
A. Improvement in Corporate Governance Scorecard (CGS) Rating by the GCG
The MWSS-CO corporate governance score is a testament to MWSS’ commitment to upholding transparency and accountability. The GCG, in its 2019 assessment of the MWSS-CO's policies and practices, gave a rating of 67.5 points, 17.5% higher than the 2018 score placing MWSS at the 29th rank from among the 82 GOCCs evaluated. Compared with the MWSS score in 2016, when it scored way below average and at 59th place, our continued improving score reflects our adherence to best practices and international standards
The table below shows the MWSS-CO's strong performance on Stakeholder Relationship; and Disclosure and Transparency criteria. We achieved our improved rating by keeping our activities and communication aligned with our stakeholders' interests as we produce more effective outcomes.
Stakeholder Disclosure & Responsibilities Bonus & Ranking Total Relationships Transparency of the Board Penalty out of 84 Year Assessment (max pts =15) (max pts=35) (max pts=50) (max pts= 4) assessed Score (14 Items) (11 items) (37 items) (2/2 items) GOCCs 2016 10 16.5 15.5 0 42 59 2017 10 24.5 20 -2 52.5 38 2018 10 22 24.5 0 56.5 34 2019 13 31 21.50 0 67.50 29
B. Advance remittance of Full Dividends for the year 2019
MWSS, mindful of the urgency to turn over in advance to the National Government, the 2019 dividends remitted on 7 April 2020 to the BTr, P358.5 Million. MWSS did not wait for the release of COA’s audited total earnings and remitted in full the amount computed by the DOF. Amount Remitted
Dividend Year (Php in Millions) 2017 398.999 2018 254.238 2019 358.500 TOTAL 1011.737
MWSS has steadily turned over a total of PhP1.01 billion to the National Treasury in dividends from 2017 to 2019, or the period since President Duterte took over in 2017. The P1.011 billion in remittances is 14% higher than the remitted dividends from 2014-2016,
which amounted to only P877.1 Million.
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C. Citizen-centric Services
With the intent of improving efficiency in delivering our services, an updated Citizen's Charter, or the MWSS-CO Citizen's Charter Handbook (MCCH), was completed on 7 July 2020, ahead by 18 days from the target date prescribed by ARTA.
The MCCH incorporates a Citizen's/Client Satisfaction and Feedback mechanism, which covers total citizen/client experience in availing of services through streamlined processes, ease of doing business, and improved turnaround time. The MCCH, has since became an organic document for the MWSS.
D. Passed the 2nd Surveillance Audit on ISO 9001: 2015
Amidst the alternative work arrangements due to COVID-19, a remote audit conducted by Quality Management Auditors from SOCOTECH concluded the issuance of a Certificate of Maintenance Recommendation. Passing the exhaustive ISO surveillance audit is a product of the ISO and IQA teams' hard work and the Management Team's agile leadership.
F. Passed Stakeholders Satisfaction Survey (SSS)
In line with the government's Service Quality Standards, the SSS was completed in 28 December 2020.
Following the enhanced guidelines and methodology provided by the GCG, an independent survey provider, administered the survey to MWSS-CO’s stakeholders, namely the three (3) Concessionaires representing East, West, and North of the service area; and the Water Districts representing Bulacan Province customers. The survey was conducted twice to generate feedback from stakeholders on how well the MWSS-CO performs its mandate during peak or summer months (January-June) and the lean months or rainy season (July-December), where variances in water supply and demand are experienced.
To deal with realities on the ground caused by the pandemic, while ensuring that the survey's objectives and integrity are all met, face-to-face and Computer-Assisted Personal Interviewing (CAPI) system shifted to a telephone and Paper and Pen Interview (PAPI) system via video conference platform. Despite signal and reception issues, scheduling difficulties due to alternative work arrangements, the Water Concessionaires and the Water Districts gave an overall mean satisfaction score of 4.12 out of 5 or a satisfaction rating of 91.84%, exceeding the 90% satisfaction rating prescribed by GCG.
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G. Improved Freedom of Information and Data Privacy Policies
One hundred percent of FOI requests received in 2020 were processed with no grievance complaints filed.
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Part VI. SERVICE AND ORGANIZATIONAL EFFECTIVENESS
A. Innovation in Service Delivery
1. Flow Metering Devices
Due to the reduced raw water allocation from Angat dam, particularly when Angat elevation breached the critical level, the ultrasonic flow meter sensors were not submerged and were rendered incapable of providing flow measurements. The Concessionaires contested the flow measurements reported, because inaccuracies or deviations would result in disparities in water allocation. A reconfiguration of the ultrasonic flow meters were done to capture the flow at reduced allocations. Also, a series of flow metering installations have been started and for completion in January 2021.
The Concessionaires funded the installation of the devices at P212.54 M. Once these flowmeter devices are completely installed, water losses along the conveyance system will be minimized, and the two water concessionaires will be assured of a proper and accurate sharing of water allocation. Data logged and computed on-site can be accessed by MWSS- ICT infrastructure.
The next phase of flow metering device installations will be at the Umiray tunnel inlet and outlet, AQ outlet at Novaliches basin, and portal. The MWSS has identified and prepared the technical specifications for flow meter devices to be used for the UATF.
3. Information Systems Strategic Plan (ISSP)
MWSS-CO is one of the agencies with a DICT endorsed ISSP for 2019-2020. Guided by the IT objectives outlined in the Strategic Plan, the MWSS continued its modernization efforts to the technology infrastructure, but, just as important, changes in the way the employees work. The challenge for us to continually upgrade and change our tools and systems to meet the public’s desire for data and access broke ground in 2020 with the completed procurement of the following:
(i) Network and IT Infrastructure Facilities (NITIF)
Construction of the project's civil works started in December 2019 and was supposed to be completed in March 2020 but did not materialize due to
government suspension of civil works projects. IATF-EID’s clearance for 22 resumption of works had to be secured first before construction re-started in May. Page
Full completion of physical infrastructure and delivery of ICT equipment was completed in October 2020.
MWSS employees proactively embraced the opportunities brought by the technologies to streamline their jobs. The completion of NITIF also improved database management and information sharing. Notable are the initiatives in water and wastewater data banking where information on the Concessionaires water and wastewater treatment facilities, Key Performance Indicators (KPIs) and Business Efficiency Measures (BEMs), pipe networks, and other facilities are evaluated are very good inputs in risk management decision making, data privacy management, technological interfacing, among others.
(ii) Asset Management Information System (AMIS) Asset management is one of MWSS-CO’s core mandate. The development of an AMIS will automate the management of MWSS’ real estate properties, monitor the concessionaires’ capital investment, and transform into electronic inventory system movable assets. Last 14 December 2020, the project awarded. Because of advanced preparations for the completion of the nine (9) modules, as of EO December 2020, three (3) modules have been completed, or 33% accomplishment. MWSS is all set in moving our asset management function into a digital business. The completion of AMIS will also pave the way for the ISO certification of the asset management process.
B. Ensured Talent Competence MWSS invested in staff training to support employees’ developmental needs. Based on training needs assessment, there were five (5) virtual training and 11 webinars conducted to capacitate employees, improve their attitude, knowledge and working skill. As we shifted to remote work operations, employees’ competencies to enable them to collaborate digitally was given great attention.
For CY2020, 19 out of 101 employees met the required competencies compared with the CY 2019 assessment, when out of the 109 employees, only six (6) employees met the required competencies of their positions.
The improved percentage of employees meeting the required competencies is attributed to the good competency framework, motivational leadership provided by Management, and personal interests such as career progress. MWSS has a lot more to do to improve the pool of practitioners whose varying levels of competencies are needed to support MWSS’s water security goals.
C. Workplace and employee well-being in the era of COVID-19
MWSS was deliberate in expanding its role for the employees’ financial, physical and mental well-being. Support provided includes adjusted hours of operation, isolation facility, mass swab testing, and financial assistance to employees who have contracted the virus.
Significant proactive measures to help safeguard the health and safety of employees include: 23 Page
1. Use of social media platform to manage employee communication and provide updates regarding measures adopted by the agency; 2. Addressed employees concerns on workplace policies by providing employees protective equipment like masks, face shield; 3. Weekly de-contamination of workplaces and employees shuttle service, and frequent cleaning and disinfecting of surfaces, equipment, and other elements of the work environment; 4. Strict implementation of health verification protocols; 5. Structured work schedules to minimize cross-contamination amongst work teams; and 6. Increased the physical distancing between employees through (a) flexible worksites. Workspaces were made available at the 5th and ground floor to increase physical distancing between employees and (b) use of clear barriers;
D. Certification of Maturity Level 2 under the Program to Institutionalize Meritocracy and Excellence in Human Resource Management (PRIME-HRM)
The MWSS-CO passed the assessment system and maintained its Level II accreditation under the CSC’s PRIME-HRM. The Level 2 Maturity means that the MWSS-CO's HR systems, practices, and HR management competencies are process-defined and are attuned to the agency's needs.
Among the actions taken to maintain the accreditation were specific guidelines on talent sourcing mechanism, onboarding program, merit, and selection plan. Having maintained the accreditation since 2016 served to step up our efforts towards achieving higher levels of accreditation.
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