METROPOLITAN

WATERWORKS AND
SEWERAGE SYSTEM
MICHAEL ANGELO L. MEMORACION

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

What happens if we ran out of water?
 HISTORY
Metropolitan Waterworks and Sewerage System (MWSS) holds
the distinction of being one of the oldest and most formidable
government organizations in the Philippines.

Its roots were traced to the first water system laid out in old
Manila in 1878 from funds donated by Spanish philanthropist
Francisco Carriedo y Peredo.

The construction of a water system in 1878 delivered 16 million

liters of water per day (MLD) to 300,000people. Its main
objective was to improve the people’s health and living
conditions through clean drinking water.

The Carriedo System had evolved from the Manila Water

Supply System in 1908 to Metropolitan Water District in 1919.
Thirty-five years later, it became the National Waterworks and
Sewerage Authority (NAWASA).

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 HISTORY
The government changed its nomenclature
again in 1972 to Metropolitan Waterworks and
Sewerage System (MWSS), by which it is known
to this date. From a national agency, attending
to water needs of the entire Philippines, the
MWSS by virtue of its Charter was tasked to
provide water to Metro Manila and environs.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 MANDATE
MWSS mandate is primarily from Republic Act 6234
which states the basic goals of the System and
declares as its major policy the proper operation and
maintenance of waterworks system to ensure an
uninterrupted and adequate supply and distribution of
potable water for domestic and other purposes and the
proper operation and maintenance of sewerage
systems in its service area which includes the whole of
Metro Manila and parts of Cavite and Rizal.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 PRIVATIZATION
REASONS
Poor Coverage
Inefficient Service
Highest Non-Revenue Water
in Asia
Sewerage
Procurement Procedures
NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS
 PRIVATIZATION
Republic Act No. 8041
"The Water Crisis Act"

Objectives
Transfer financial burden to the
private sector
Improve service standards
Increase operational efficiency
Minimize tariff impact

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 MWSS
REGULATORY
OFFICE
The MWSS Regulatory Office (RO) was created in August 1997
by virtue of the Concession Agreements signed between the
MWSS and the two concessionaires, Manila Water Company, Inc.
for the East Zone and Maynilad Water Services, Inc. for the West
Zone.

RO functions as a collegial body composed of five members

headed by the Director or Chief Regulator who has overall
responsibility for the operation of the office. Other members are
the Regulators for Technical Regulation, Customer Service
Regulation, Financial Regulation, and Administration and Legal
Affairs.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 CONCESSIONAIRES

Manila Water Company Inc. (MWCI) is a joint venture

between Ayala Corporation and two foreign companies,
the United Utilities of the United Kingdom and the
Mitsubishi Corporation of Japan. The employees of
Manila Water also own 6% shares of the company stocks
through its Employees Stocks Option Program (ESOP).

Manila Water is one of the two Concessionaires tapped

by the government, through a bidding process in 1997, to
operate the water utilities in eastern Metro Manila and
nearby province of Rizal. It is tasked to supply water,
manage the distribution system, and improve and
expand the east zone concession area for 25 years.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 CONCESSIONAIRES

Maynilad Water Services Inc. (MWSI) won the right to

operate the franchise area for 25 years (1997-2022) for
the treatment and distribution of potable water in the
West zone area on 1 August 1997.

Originally, Maynilad was a partnership between the

Benpres Holdings Corporation, the flagship company of
the Lopez group, and Suez Lynnaise des Eaux of France, a
prominent leader in the water industry, supplying drinking
water to millions of people worldwide. However, in 2006,
because of the financial and economic downturn
experienced by its previous owners, MWSS and the Lopez
group agreed to pre-terminate their contract.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 VIDEO

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 METRO MANILA
WATER SUPPLY
SYSYEM

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 HOW WATER IS
BEING PROCESSED
1. Screening
2. Pre-Chlorination
3. Rapid Mixing
4. Flocculation
5. Coagulation
6. Sedimentation
7. Filtration
8. Disinfection

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 WATER
SECURITY
PROGRAMS
1. Water Resources and infrastructure
development
2. Water Distribution Efficiency
3. Sewerage and Sanitation Compliance
4. Water Rates Review and Rationalization
5. Organization Excellence
6. Partnership Develop,ment
7. Communications and Knowledge
Management

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 WATER RESOURCES AND
INFRASTRUCTURE
DEVELOPMENT

PROJECTS

1. Angat Dam and Dyke Strengthening Project

(ADDSP)
2. Bulacan Bulk Water Supply Project (BBWSP)
3. Rehabilitation, Operation and Maintenance of
AHEPP Auxiliary Turbines 4 and 5
4. New Centennial Water Supply Project
5. Sumag River Diversion Project

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 WATER DISTRIBUTION
EFFICIENCY

PROJECTS

1. Angat Water Transmission Improvement

Project (AWTIP)
2. Rehabilitation of Umiray-Angat Transbasin
Tunnel Facilities

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 SEWERAGE AND
SANITATION
COMPLIANCE
PROGRAMS

1. A Clean-up of Manila Bay

2. Three-River System Improvement Program (a program for the treatment of
sewer and wastewater before such water returns to the 3-river system of San
Juan, Marikina and Mandaluyong)
3. Continuous desludging of septic tanks per the targets set
4. Breakdown of targets per municipality and city of prioritization and better
monitoring
5. Adoption of a creek interception and drainage outflow interception
6. Setting-up of wastewater treatment facilities in defined catchment areas and
major interceptor lines
7. Upgrading and expansion of Central Manila Sewerage System
8. Better target and standard-setting and improved design criteria
9. Improved treatment technology and design capacity for Sewerage Treatment
Plants (STPs)
10. Improved sewer ordinance and policy making
11. Continuing awareness campaign on water reuse

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 WATER RATES
REVIEW AND
RATIONALIZATION
ACTIVITIES

Customer Service Regulation

Area
Financial Regulation Area
Technical Regulation Area

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 ORGANIZATION
EXCELLENCE

ACTIVITIES

Implementation of MWSS Reorganization

Bulacan Water Project Gets Nomination
to 2017 Global Water Awards
MWSS Information Systems Strategic
Plan (ISSP)
2017 MWSS Performance Scorecard
Targets Fully Met

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 PARTNERSHIP
DEVELOPMENT

ACTIVITIES

MWSS Prepares for “The Big One”

Annual Million Tree Challenge Project
MWSS approves new MOA between
Concessionaires and the Local
Government of General Nakar, Quezon
for the Protection of the General Nakar
Watersheds

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 COMMUNICATIONS
AND KNOWLEDGE
MANAGEMENT
THREE MAJOR OUTCOMES

1. Securing long-term water supply;

2. Ensuring stakeholder satisfaction in
water and sewerage and sanitation
delivery and service, balanced with fair
water tariffs; and
3. Achieving paradigm shifts in Water
Security.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 VIDEO: KALIWA DAM

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 CASE: MWSS vs Quezon City (G.R. No.
194388, November 7, 2018
FACTS:
Sometime in July 2007, MWSS received several Final Notices of Real Property Tax Delinquency from the Local Government of Quezon City,
covering various taxable years, at P237,108,043.83 on the real properties owned by MWSS in Quezon City. The Local Government of Quezon
City warned it that failure to pay would result in the issuance of warrants of levy against its properties. On August 7, 2007, the Treasurer's
Office of Quezon City issued Warrants of Levy on the properties due to MWSS's failure to pay. On September 10, 2007, the Local Government
of Quezon City listed properties owned by MWSS for auction sale.

Petition for Certiorari and Prohibition TRO prayer by MWSS. Argued that its real properties in Quezon City were exclusively devoted to public
use, and thus, were exempt from real property tax. CA issued TRO stopping auction sale. Writ of Preliminary Injunction issued. CA denied the
petition. Lifted injunction.

CA said MWSS need not exhaust administrative remedies re a purely legal question. CA did not dismiss on this ground.
CA said since MWSS was not a municipal corporation, it could not invoke the immunity granted in Section 133(o) of the Local Government
Code. Found that even if MWSS was an instrumentality of the government, it was not performing a purely governmental function. Thus, no
immunity.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 CASE: MWSS vs Quezon City (G.R. No.
194388, November 7, 2018
CA said taxed properties were not part of the public dominion, but were even made the subject of concession agreements between
MWSS and private concessionaires due to its privatization in 1997. Proprietary functions; thus, subject to real property tax.

QC issued warrants of levy. MWSS went to the SC. SC issued TRO.

ISSUE:
Whether MWSS is an instrumentality of the Republic or a GOCC

HELD:
MWSS is a government owned and controlled corporation.

Petitioner MWSS was created in 1971 by Republic Act No. 6234, initially without any capital stock. Under its Charter, petitioner was
explicitly declared exempt from the payment of real property taxes.

In 1974, however, Presidential Decree No. 425 amended the Charter and converted petitioner into a stock corporation.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 CASE: MWSS vs Quezon City (G.R. No.
194388, November 7, 2018
MWSS is an attached agency of the Department of Public Works and Highways, but exercises corporate
functions and maintains operational autonomy as it was granted certain attributes, powers and
functions.

To be categorized as a government-owned and -controlled corporation, a government agency must

meet the two (2) requirements prescribed in Article XII, Section 16 of the Constitution: common good
and economic viability.

MWSS was created by Congress with the mandate to provide potable water to Metro Manila, Rizal, and a
portion of Cavite. Undoubtedly, its creation was for the benefit of the common good. With the passing of
the National Water Crisis Act of 1995 and petitioner's subsequent privatization, any contract that
petitioner undertakes with private concessionaires must be assessed for its market competitiveness or,
otherwise stated, for economic viability.

Under its Charter, petitioner is given the power to "acquire, purchase, hold, transfer, sell, lease, rent,
mortgage, encumber, and otherwise dispose" of its real property. Properties held by the petitioner under
the exercise of this power, therefore, cannot be considered properties of the public dominion.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 Knowledge Check
1.The MWSS Regulatory Office
(RO) was created in August 1997
by virtue of the Concession
Agreements signed between the
MWSS and the two
concessionaires. Name these two
water concessionaires.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 Knowledge Check

2. In 1997, the Legislature passed

into law which paved the way for
the privatization of MWSS.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 Knowledge Check

3. What are the main sources of

Metro Manila’s water supply?

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 Knowledge Check

4. Name one of the Water

Security Programs of MWSS

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 Knowledge Check
5. This is a new water source to
be constructed to meet the
increasing demand of the people
of Metro Manila, Rizal, and
Quezon. This “climate-resilient”
project is envisioned to help
Angat Dam, based on the
comprehensive studies
conducted by World Bank and
JICA.

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS

 SOURCES

https://mwss.gov.ph

NATURAL RESOURCES AND ENVIRONMENTAL LAW ATTY. ARNALDO ESPINAS