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 18 1 Page 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 2 Page 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 Page 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. 4 Page 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. 5 Page 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