CONTENTS 1 Vision / Mission 12 MCWD GMs and Board 2 MCWD Core Values Chairpersons: their contributions 3 Message of the Chairman of and wishes for MCWD the Board 14 40th Anniversary Party 4 Message of the General 18 A Quick Glance at 40 Years Ago Manager 22 Table of Organization 5 Cover Story 23 Operational Highlights 2015 6 2015 Highlights 25 Reaching Out to more Consumers 11 Four Decades of Growth 26 Financial Report 28 Financial Statement ABOUT THE COVER The cover shows MCWD’s 40th Anniversary logo with the slogan “A New Life Beings,” in red and black signifying the water district’s celebration of its ruby year. The series of photos symbolizes MCWD’s growth in the last four decades and significant strides it has made in all aspects in the water industry. VISION MCWD envisions itself to be a progressive and economically viable utility firm that provides adequate, safe, potable and affordable water and an effective sewerage system for Metro Cebu. MISSION We are committed to undertake continuing exploration and development activities, aimed at the preservation and sustainability of our water resources. We must always adhere to sound practices in preserving our natural environment. Our capability to provide proper services must continuously improve by designing and managing the growth of infrastructure in an innovative, timely, safe and cost-effective manner and conforming to internationally-accepted standards. We shall operate and maintain our facilities in an optimal manner, making total quality an integral part of our performance. It is then indispensable to nurture a highly-motivated workforce, with a strong spirit of collaboration, deeply committed to professionalism, and firmly focused on productivity. The work force shall be upheld and inspired by a competent management team dedicated to the common good of MCWD. All these tasks must be accompanied by sound and prudent financial management with the overriding goal of providing better services to the people of Metro Cebu. ANNUAL REPORT 2015 | 1 CORE VALUES To attain our vision through the fulfillment of our mission, we must establish a corporate culture deeply characterized by our core values. Everything that we do in the office and in the field on a day- to-day basis must be imbued by the force of these core values: SPIRIT OF SERVICE PROFESSIONALISM Anchored in the belief that our major reward in work Based on a belief that our God-given talents must be consists in making people happy because we serve them well. made to grow and be constantly improved so that we may be of Let us be accessible to all our customers and serve them better service to people. with sincere and honest attention. It is our personal responsibility to build our own Our spirit of service must go beyond responding to the competence by working hard and demanding a lot from customers’ complaints by providing them with prompt service ourselves, seeking to upgrade our skills and learn from our and accurate information. mistakes. Let us create and maintain a culture where respect for MORAL INTEGRITY work standards is paramount and where we help one another in striving for excellence. Built on the reality that human dignity and happiness are essentially linked to the practice of moral values in the workplace and elsewhere. FOCUS ON PERFORMANCE Genuine selflessness will be our prime motive for doing our work. This means that we principally desire to be of valuable Linked to our ideal that it is through excellence in our service to people, and not to do our work simply because of performance that we best serve people. what we can get in return. We must find pride and meaning in our own work, Avoid all use of influence and connections to get undue principally because we have worked productively, constantly favors for oneself or for others, and refuse to influence one conscious of the standards we have set for ourselves. another negatively. Let us instill a sense of urgency in all that we do. We will Let us encourage a lifestyle that is truly respectful of a fight against all forms of procrastination. This will require that person’s dignity. we take timely and adequate initiative in all our efforts. Reject all use of MCWD resources and time for our own Conscious of the need for goal setting at all levels of the personal convenience and financial benefit. organization, we need to be forward-looking and review our goals often. LOYALTY TO OUR INSTITUTION STABILITY IN UNITY Rooted in the intrinsic values of our corporation worthy of our love and pride. Founded in the knowledge that our organization will be Let us align our personal goals with the corporate goals firm and strong, anchored in the spirit of solidarity by which we of MCWD. It would be a disservice for any employee of MCWD all strive to contribute to the good of all. to use undue influence which is in conflict with the corporate The strength of an organization is found principally in goals. the united power of people. We will foster an atmosphere of Deep concern about the image of MCWD must genuine trust and confidence in one another based on building characterize our behavior at all times. We must strive to competence and instilling integrity within the organization. contribute to the good image of MCWD by doing our work Open and honest communication shall likewise be encouraged. selflessly with competence and integrity. A sense of fairness and justice would guide all our actions Loyalty to our institution leads us to be mutually and thoughts. This requires a firm respect for the rights of supportive of all employees and departments of MCWD with no everyone without exception. We must avoid all forms for envy exception whatsoever. and greed. 2 | ANNUAL REPORT 2015 MESSAGE FROM THE CHAIRMAN OF THE BOARD First of all, I would like to congratulate the Metropolitan Cebu Water District (MCWD), the management and its employees on its 40th year of public service. Generally, 2015 was a good year for MCWD not because it celebrated another milestone but corporate performance-wise, 2015 was much better compared to the previous year. We were able to increase the volume of water production, the number of new water service connections and water sales and lowered the non-revenue water (NRW) to 23.33 percent from last year’s 23.36 percent. MCWD started the year right with the initial delivery of the bulk water supply of 18,000 cubic meters per day from the Cebu Manila Water Development Inc. (CMWD). The volume will increase to 35,000 cubic meters per day the following year up to 19 years. With this development, we were able to serve some of the thirsty areas within our service area. Punta Engaño in Lapu-Lapu City for example, started to enjoy a 24/7 water supply. In the north Metro Cebu, like Compostela, applications for new water service connections were being accepted after it was considered a “suspended area” over a period of time due to the lack of water supply while some areas are now enjoying a stable supply of water. Mandated to provide safe, potable and affordable water to the people of Metro Cebu, MCWD firmly stands by its commitment. It entered into a contract with different bulk water suppliers in order to cope with the increasing demand for water. The recent agreement that MCWD has signed was with the Danao City Government for a bulk water supply with an initial delivery of 10,000 cubic meters of water per day starting January 1, 2018. The volume will increase to 20,000 cubic meters per day for a duration of 20 years. For now, we are only serving 42 percent of the demand of the total service area. We are aiming a 100-percent service coverage so that every one will have access to potable water, for water is a human right. We have more expansion projects that are ready for implementation. These include the € 7 million-worth expansion project funded by the Dutch Government through Fonds Duurzaam Water intended for the very poor families in Metro Cebu. There are about 15,000 households who are the target beneficiaries of this project. However, the problem on right- of-way acquisition and the securing of excavation permits from the Department of Public Works and Highways hindered us from implementing these projects on time. We take these as challenges so we need to double our efforts. On the other hand, MCWD has just acquired a state-of-the-art equipment worth P3.8 million that will give real time information on supply and distribution. The Supervisory Control and Data Acquisition (SCADA) equipment, received through a grant from the Japan International Cooperation Agency (JICA), is vital to the operations of the water district as it will help improve its corporate efficiency. This will be operational by the second quarter of 2016. Soon, MCWD’s Septage Management Program will be implemented when the Septage Treatment Plant will be ready. This is also a part of the water district’s mandate to have an effective sewerage system in Metro Cebu and in compliance with the Clean Water Act of 2004. Again, congratulations to all of us. I hope that this year’s performance will motivate us more to do better in the fulfilment of our mandate. With God’s help and with the warm support and cooperation of all the local governments, partners and stakeholders, MCWD will be able to rise above all the challenges and live up to the expectations of the public. RENATO E. MERCADO ANNUAL REPORT 2015 | 3 MESSAGE FROM THE GENERAL MANagER I am not sure if it was luck or as fate would have it, the seat of the highest position in the water district fell on my hands during one of the most challenging times for MCWD.