Practice Details

Title of Practice: More through Less: The Maynilad Non-Revenue Water management program
Year: 2012
BPTag: Best Practice
Reference Number: PHL354-12
City / Town / Village: West Zone of the Greater Manila Area
Region: Asia & Pacific
Country: Philippines
Has this practice been submitted previously? No
Previous Title:
Address: Maynilad Water Services, Inc.
Katipunan Road, Balara
Quezon City 1105
Telephone number (+63) (2) 981-3451
Fax number (+63) (2) 981-3452
Website; http://www.mayniladwater.com.ph

Name of Contact Person: Cherubim Ocampo-Mojica
Email of Contact Person: cherubim.ocampo@mayniladwater.com.ph

In 1997, Maynilad WaterServices, Inc. (Maynilad) inherited an aging and highly inefficient waterinfrastructure network from the Philippine government. As a result, a bigmajority of its potable water supply was being lost in the distribution line. WhenMaynilad was re-privatized in January 2007, it was losing around 1,500 millionliters per day (MLD) of potable water, of which 75% (1,125 MLD) were lost dueto leaky pipelines. While a massive pipe replacement program would havedramatically reduced its water losses, Maynilad opted not to do this because itwould result in significantly higher tariffs for its customers.

Determined to improve andexpand its services and keep its tariff affordable, Maynilad developed and implementeda Non-Revenue Water (NRW) management program that was pioneering yet prudent.Usinga C+3I strategy (i.e., Centralize, Isolate, Investigate and Innovate), Mayniladinvested in its people, data management systems and leak detection equipment,while continuously upgrading its internal procedures and technicalmethodologies, thus enabling it to implement case-appropriate andcost-efficient approaches for reducing its NRW.

The Maynilad C+3I strategyeventually proved successful because in less than five years, the companyrecovered nearly 570 MLD of potable water and reduce its NRW from 66% to 42%.And with its improved efficiency, it is now able to serve nearly 8 millionpeople— 30% more than the 6.1 million it was serving in 2006. Its service connectionsand 24-hour coverage also increased by 48% and 52%, respectively. Mayniladcustomer satisfaction also surged from 35% to 94% in just four years. Equallyremarkable, Maynilad was able to develop its technical expertise to a levelthat it is now providing trainings and consultations to three water utilitiesin the Philippines so that they, too, can develop results-oriented strategiesfor addressing their own NRW problem.

Key Dates: •January 24, 2007 – Maynilad was re-privatized •February 2008 – A dedicated NRW group was established •February 26, 2009 – Miya became a technical consultant
Norminating Organization Details
Name of Organization:
Contact Person:
Type of Organization: Private Sector

Name of OrganizationAddressContact PersonOrganisation TypeType of Support
Miya Luxemburg S.a.r.l (Miya)4/F DMCI Bldg., 1341 Apolinario St., Bangkal,
Makati City 1233
Telephone (+63) (2) 403-1358
Fax: (+63) (2) 403-1358
website www.miya-water.com
Roland Liemberger, rliemberger @gmail.comTechnical Experts/ConsultantsTechnical Support

Water and Sanitation

Situation Before the Initiative Began:
Water services in the West Zone of the Greater Manila Area remained poor until 2006, despite its privatization in 1997. Of the 6 million people being served then, not even half had 24-hour supply (32%) and sufficient pressure (45%). Around 66% of the treated water (1,500 MLD) was also being lost in the distribution line.
Establishment of Priorities:
Compared to developing a major water source or multiple minor water sources, reducing its Non-Revenue Water (NRW) was deemed by Maynilad Water Services, Inc. (Maynilad) as the cheapest and fastest way to improve and expand its water services in the West Zone.
While a massive pipe replacement program would have dramatically reduced its NRW in a short amount of time, Maynilad decided against it because it would ultimately result in significantly higher tariffs for its customers. Instead, it invested in its human resources, technical equipment, engineering methodologies and internal procedures so it could serve more people through less water losses.
Formulation of Objectives And Strategies:
With the poorest municipalities in Metro Manila located in the West Zone, Maynilad made a conscious decision to be cost-efficient in its NRW reduction efforts. To do this, it implemented an NRW management program based on this strategy: Centralize, Isolate, Investigate and Innovate (C+3I).
This meant the (1) creation of a dedicated group for implementing and monitoring its NRW reduction program, (2) subdivision of its aging network into smaller areas to isolate and diagnose leak sources, (3) establishment of teams to actively investigate underground leaks and (4) adoption of new and less costly procedures and solutions for repairing pipe leaks.
Mobilisation of Resources:
From 2008 to 2012, Maynild allocated a more than USD 258 million for its NRW program. This covered the engagement of an NRW consultant, skills training of NRW personnel, acquisition of state-of-the art leak detection technologies, installation of pressure regulating valves, replacement of old water meters, repair of visible and underground leaks, rehabilitation of old but still usable pipes, partial replacement of deteriorated pipe segments, and (when absolutely necessary) total replacement of deteriorated pipe segments.
Since 2009, the NRW consultant (Miya Luxemburg S.a.r.l) has also been providing Maynilad technical advice, training and assistance for implementing its NRW reduction program.
In 2006, Maynilad was losing 66% of its treated water because of leaking and deteriorated pipes. Since the pipes were buried underground, most of the leaks went undetected and unrepaired for years.
Identifying such leaks was very difficult in the beginning because of low water pressure and limited water availability. The noisy environment and heavy traffic also rendered conventional leak detection equipment ineffective.
The pipeline maps inherited by Maynilad from the government and previous owners were also not updated, making it difficult to determine the exact location and condition of some pipes. Worse, the location and presence of some pipes are even unknown or unrecorded.
To address these challenges and facilitate the improvement and expansion of water services in the West Zone, Maynilad implemented an NRW management program that was anchored on this strategy: Centralize, Isolate, Investigate, Innovate (C+3I). To elaborate:
Centralize. Maynilad established a Central NRW Division to facilitate, systematize and continuously improve its NRW efforts. This allowed Maynilad to track, record and consistently apply its NRW data, policies, procedures, engineering methodologies, job requests, project contracts, etc.
Isolate. The company subdivided its aging network into District Metered Areas to enable more effective monitoring and management of water supply and pressure, and easier identification of leaks. Pressure monitoring areas were also established to better understand and manage the pressure requirements of the entire pipe network.
Investigate. Maynilad implemented an Active Leakage Control Program wherein 22 leak detection teams (LDTs) were established to investigate and identify underground leaks in Maynilad’s mainlines. Using advanced equipment, the LDTs enabled the company to rationalize its total and partial pipe replacement projects so instead of replacing entire pipes, only the irreparable portions were replaced or rehabilitated.
Maynilad also prioritized its pipe replacement and rehabilitation projects based on its leak detection findings so that those with the highest potentially recoverable volume were financed and implemented first, allowing the efficient utilization of the company’s resources.
Innovate. Instead of costly total or partial pipe replacements, Maynilad repaired leaks using case-appropriate and cost-efficient methodologies like decommissioning, specialized pipe fittings, Tyfo® Fibrwrap® (a technology that allows the repair of primary pipelines from the inside), etc.
Using fabricated pipe fittings (e.g. Split Sleeve fitting for longitudinal crack, fabricated cap for access manhole leak, etc.) also allowed Maynilad to conduct leak repairs without causing water interruptions to customers.
Results Achieved:
Maynilad’s NRW management plan enabled the company to rationalize its capital expenditures, without sacrificing the quality and availability of its water services for its customers. The treated water it recovered also allowed Maynilad to have a buffer against fluctuations in water supply due to environmental factors such as El Nino.
Instead of financing a major water source or massive total pipe replacements, Maynilad invested in its people, data management systems and equipment. This allowed the company to implement more cost-efficient approaches for reducing its NRW. In the process, it was able to recover more water for its customers and simultaneously construct additional pipes and facilities to reach previously unserved communities.
Moreover, by building the capacity of its personnel, Maynilad ensures that it can sustain its NRW management program and even extend much-needed expertise to those in need of such assistance.
Lessons Learned:
The success of Maynilad’s NRW reduction program highlights a number of key learnings.
First, water utilities must recognize the importance of sustained investments for NRW reduction. From 1997 to 2006, no significant investment was made to modernize the pipelines and facilities in the West Zone. Such lack of investments led to the steady increase of water losses in the West Zone.
Second, simply developing the infrastructure would not be enough to attain and sustain low NRW levels. Maynilad recognized the need for a holistic NRW program that involved institutional changes (establishment of a CNRW division), improvement of internal procedure and methodologies, investment in its people, data management systems and equipment. Moreover, by building on the capacity of its personnel, Maynilad made sure that it would have a pool of internal experts that could maintain and sustain its NRW reduction efforts.
Third, data accuracy and collection is crucial to effective program management. By conducting a system-wide audit and establishing baseline data, the company was able to accurately examine its water losses, before, during and after an NRW initiative. This ensured the effective monitoring of Maynilad’s performance.
Lastly, there must be clear accountability and strong ownership of the program. In the case of Maynilad, creating a centralized Division to manage its NRW reduction efforts allowed it to implement its program in a sustained and consistent manner.
The Maynilad NRW reduction strategy is particularly valuable for water service providers who could not undertake massive pipe replacement projects, for one reason or another, but are still intent on recovering huge volumes of water in a short span of time.
The experience Maynilad gained from implementing its NRW Reduction Program has strengthened its technical expertise in NRW management so that today, it is a Twinning Partner to three water utilities in the Philippines, namely Bacolod City Water District, Leyte Metro Water District, and San Pedro Water District. Maynilad hopes to provide these water districts with the trainings and consultations they need so they, too, can develop results-oriented strategies to lower their water losses.
Related Policies:
Part of the metricsby which the Philippine government monitors and regulates the performance ofMaynilad is through the percentage its NRW. These metrics are submitted to andreviewed monthly by the government. For purposes of transparency, the resultsare released to the public annually.

1.The Issues and Challenges of reducing non-revenue water, Frauendorfer, R. and Liemberger, R., Asian Development Bank, 2010
2.The Challenge of Reducing Non-Revenue Water (NRW) in Developing Countries: How the Private Sector can Help: A Look at Performance-Based Service Contracting, Kingdom, B. Et. Al., Water supply and sanitation sector board discussion paper series, Paper No. 8, 2006

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