1 | 2019 MWSS Annual Report TITLE PAGE NO. 1. Vision and Mission Statements 5 2. Chairman’s Message 7 3. Message from the Administrator 8 4. Introduction 9 5. General Information Corporate Profile a) Legal bases 11 b) Background 11 c) Significant events in privatization 12 6. Fast Facts and Figures 14 7. MWSS Board of Trustees 15 2 | 2019 MWSS Annual Report 8. Water Security Programs a. Bulacan Bulk Water Supply Project 30 b. New Centennial Water Supply Project 31 c. Angat Water Transmission Improvement Project 33 d. Bigte-Novaliches Aqueduct No.7 Project 34 e. Umiray-Angat Transbasin Rehabilitation Project 35 f. Ipo Dam 3 Project 36 9. Organizational Excellence a) Statement of Full Compliance with the Code of Corporate Governance 38 b) Whistleblowing Policy 39 c) 2019 Performance Evaluation Scorecard (PES): 39 d) First Audit Surveillance of ISO 9001:2015 40 Certification for the Project Management Division e) 2019 Stakeholder Satisfaction Survey 41 f) Freedom of information 42 g) 2019 Strategic Planning 43 h) Commitment to Excellence thru Information 44 Technology Initiatives i) Procurement Activities 47 10. Human Resources a) Employee Training and Development Programs 48 b) New Employees 50 c) Health, Safety, Sanitation, and Wellness Programs 51 d) Team Building 52 e) Employees’ Shuttle Service 52 f) Gender and Development programs of MWSS 52 g) Service Excellence 54 11. Partnership Development a) Asia Water Council 2019 56 b) Singapore Public Utilities Board 56 c) Earthquake Resiliency Plan for Greater Metro 57 Manila Area d) El Nino Preparedness Measures with Stakeholders 59 e) Carriedo Cup Sportsfest 61 f) Partnership with DOST-ASTI on Disaster risk- 62 reduction and management of Ipo Dam g) Asset Management 63 3 | 2019 MWSS Annual Report 12. Engagement with the Indigenous People (IPs) a) Public /Stakeholder Consultations/Hearings for the 65 NCWS-Kaliwa Dam Project b) Outreach Programs 66 c) Commitment to IPs affected by Sumag River Project 66 d) MOA signing with Dumagat IPs of Kabayunan for 67 Angat Water Transmission Improvement Project 13. Environmental Stewardship a) Major Accomplishments in Watershed Management a.1. Protection, Governance, Communication, 69 Educations and Public Awareness a.2. Nature Walk and Tree Planting 72 b) Clean-Up Drives / Environmental programs b.1. Launching of Manila Bay Rehabilitation’ 73 b.2. Simultaneous Launching of Battle for Rivers 73 and Esteros b.3. International Coastal Clean-up 73 c) Sewerage and Sanitation 74 c.1. MWSS’ Position on Creek Interceptor 80 14. Financial Performance a) Dividend payment by MWSS 83 b) PSALM payment of P102M 84 c) COA Audited Financial Statements 86 4 | 2019 MWSS Annual Report VISION and MISSION STATEMENT A. Mission For its customers in Metro Manila and expansion areas: • Optimize and expand our water sources and secure their watersheds and facilities • Provide equitable access to clean, potable and affordable water • Expand the coverage of sewerage and sanitation services • Ensure prudence and efficiency in the implementation of all our plans B. Vision By 2024, MWSS-CO shall be a world-class benchmarked agency for its water security program with technically competent personnel and infrastructure. C. Community Vision Malinis na Tubig Walang Korupsyon Sapat na Daloy ng Tubig Serbisyong Tunay D. Core Values: SQuIRT S - Service Excellence Qu – Quality I - Integrity R– Results-Oriented T- Transparency 5 | 2019 MWSS Annual Report VISION and MISSION STATEMENT E. Corporate Objectives MWSS-CO exercises the best practices in good governance to contribute and achieve economic growth, generate employment opportunities, and cultivate a conducive working environment, thus measures its performance standards to: 1) Ensure sustainable water supply MWSS’ priority is to source raw water for domestic supply. Thus the agency dutifully adheres to its mandate of providing an uninterrupted and continuous supply of potable water to the people of Metro Manila and parts of Cavite and Rizal by continuously sourcing major water supply projects while ensuring the protection of watersheds and sustainable livelihood plans for the residents affected by the said projects. 2) Ensure customer satisfaction in MWSS service delivery More than just sourcing raw water for domestic supply, MWSS also serves as a source of information to academic institutions and other inter-agency units, safeguarding the environment through coordination with other agencies, protection of rights-of-way, and assets; and overseeing sewerage systems through the Concessionaires. 3) Ensure continuity Water Security programs The MWSS-CO adopts an ecologically and economically efficient concept in the development of water infrastructure as an overarching strategy towards the pursuit of its water security programs. Considering the significant contribution of infrastructure development in achieving inclusive growth, optimizing investments in its infrastructure projects to (a) ensure that these projects/programs are not overdesigned or over- specified; (b) minimize cost overruns, project implementation delays and changes in scopes of works: and (c) ensure that the projects' full functionalities are achieved at the most appropriate designs and least costs. 4) Nurture a More Efficient and Effective Workforce Consistent with the objective of the reorganization implemented in 2018, MWSS has embarked on investing in technically competent personnel through continuous training and competency programs and providing appropriate health, wellness, and other benefits programs. 5.) Ensure Sound Financial Management As part of MWSS’ contribution and commitment to promote fiscal discipline and improve the National Government (NG) cash management, MWSS has consistently remitted dividends out of its corporate earnings. 6 | 2019 MWSS Annual Report CHAIRMAN’S MESSAGE When I took the helm as the new MWSS Chairman, I knew it would not be easy being an MWSS Administrator for two years prior. There is more to a water utility than meets the eye. What some simply see water from the tap, is a complex gamut of infrastructure vulnerabilities, investment strategies, and technologies to place a new water source or deliver potable, and adequate water to homes, and every sector of society. Aware of the complexities in water security, I promised myself not to fail. That is why we started to work on the water security plan to forestall lack of water supply in the future. The year 2019 is memorable - - • A year when climate change wrought havoc as Angat Dam and La Mesa Dam which reached their lowest elevation, along with turbidity issues of water sourced from Laguna Lake. • The year of double whammies. MWSS was slapped big time by legal fines. The Supreme Court decided a P921 million penalty concerning the Clean Water Act, and the international court, the Permanent Court on Arbitration (PCA) award of P10.8 Billion to the Concessionaires for acts committed by officials of the previous administration; and • The year also started the clamor to terminate the Concession Agreement. Breaking away from the very cautious posture of the past leaderships in water source development, we have reoriented our priorities and adopted short-term, medium-term, and long-term raw water sources. The MWSS Board approved several water source projects to develop additional sources from Laguna Lake, Wawa, Marikina, and Laguna Rivers. Several projects were started to help moderate overdependence on Angat and mitigate associated risks for the summer of 2020. Priority projects are now brimming to the seams with projects like the: Marikina Mobile Water Treatment Plants (MBWTP), Cavite-NIA MWTP, Rizal Wellfields, NRW reduction, and the development of a third Water Treatment Plant (WTP) right after the second WTP was constructed near Laguna Lake. Moreover, while we are in solidarity with our Concessionaires in the interventions concerning limited supply, at the heart of our decision was customer value. To strike the right balance, MWSS imposed penalties for the water shortage and additional fines to fund new water supply sources. The new Concession being prepared by the Executive Department will completely resolve the P10.8 Billion penalty imposed by the PCA and at the same time remove some of the old provisions that will eventually benefit our consumers. The 2019 operating environment also meant enhancing our financial performance to fund ongoing strategic programs and completing projects. As a GOCC, we have gained greater “financial independence,” using our portfolio of assets for corporate revenue generation—our way of showing how eager we are to support the government spending measures. I am thankful that together with our highly dedicated members of the Board, the MWSS staff, and the Concessionaires, we have risen above the challenges and served our stakeholders and customers. Going forward, our 2019 experiences have given us a clearer sense of focus in our future direction in how we manage our finite water resources. PDDG REYNALDO V. VELASCO (Ret) MWSS Board Chairman 7 | 2019 MWSS Annual Report This Annual Report is a testament to the pivotal role of MWSS in ensuring adequate supply and distribution of safe and potable water. In doing so, we in MWSS pursues and continues to develop programs and policies to provide the consumers with affordable and safe water. As we carry out this mandate, we are aware that much more needs to be done. John C. Maxwell, in his book, The 17 Indisputable Laws of MESSAGE FROM THE Teamwork, we must follow the High Road Principle, a road where people treat others better than they treat us. Maxwell ADMINISTRATOR mentions that the high road is truly the path less traveled. This is because taking the high road requires thinking and acting in ways that are not natural or common. However, those who practice the High Road Principle become instruments of grace to others and recipients of grace. Grace is important for us, especially as we recognize that there is a higher Being above, providing us strength and guidance as we take a stand in doing what is right. As I do my daily tasks, I always ensure that I withdraw my inspiration from Above.