BENEATH THE SURFACE - Maynilad Water Services · BENEATH THE SURFACE 11 among public hospitals, schools, health centers, and community hubs. We also ... success as you man the helm

BENEATH THE SURFACE2015 SUSTAINABILITY REPORT

VISION G4-1, G4-56

We are the leading water solutions company in the Philippines with a strong presence across Asia.

MISSIONWe provide safe, affordable, and sustainable water solutions that enable those we serve to lead healthier, more comfortable lives. THEME AND COVER

The Sustainability Report looks at Maynilad as a whole and digs deeper through what the numbers convey. The water-themed title conveys a feeling that one is about to take a closer, more insightful look into the company.

The title is also fitting for the content of the report, which is to highlight the value and impacts that Maynilad provides the general public, making it a company that does more than just provide water. It also aligns with the Annual Report’s theme, From Basic Utility to Water Solutions Company, and aims to reach more milestones while building on past successes. This report will bridge the gap between Maynilad and the reader by showing that indeed, “higit sa tubig ang aming serbisyo.”

ABOUT: GRI The Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines is our primary guide in preparing this report. GRI™ is an independent international organization that has pioneered corporate sustainability reporting since 1997. In using GRI, we have been guided in reporting on what matters to our organization and our impacts to the environment and society. For more information, visit www.globalreporting.org.


1 Vision and Mission | About the Cover2 Our Sustainability Highlights4 Messages from the Chairman and President17 About this Report

WHO WE ARE

WHAT MATTERS TO US26 Our Materiality Process28 Stakeholder Engagement and Management

HOW WE CREATE VALUE34 Securing our Water Source46 Providing Access to Safe, Potable, and Affordable Water68 Treating Wastewater

WHAT ENABLES US TO CREATE VALUE84 Managing our Ecological Footprint96 Cultivating Engaged Employees111 Fostering Social Inclusion132 Strengthening Effective Governance Functions and Risk Management

HOW WE APPROACH THE FUTURE148 Annexes164 GRI Content Index168 External Assurance Statement170 Acknowledgements

18

30

24

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140

CONTENTS

> OUR SUSTAINABILITY HIGHLIGHTS

822 B Liters

847 B Liters

5

Universal access to clean water and sanitation is a theme than runs throughout Maynilad’s operations and sustainability agenda. It also runs through our country’s systemic problems, as well as a new set of UN Development Goals.

Achieving access to healthcare for all, for instance, and improved education, infrastructure, and even to basic social services-all these rely on an efficient and sustainable water network to be truly responsive to the needs of all Filipinos.

It is against this developmental backdrop and deep concern for our entire country’s well-being that we now review our past accomplishments and the hurdles we continued to face in this 2015 Sustainability Report.

To start on a high note, I congratulate everyone at Maynilad for a job well done in 2015. Despite our reduced production for this year because of El Niño, we still achieved a total billed volume of more than 481 billion liters, surpassing our target by more than 1 billion liters. Our consolidated revenues from water and sewer services,

meanwhile, are up by 3.8 percent at P18.7 billion compared to the previous year.

Also, despite losing P5.6 billion in revenues because of the delay in awarding the arbitral case decision which we rightfully won, we continued on the correct path toward greater customer-centered service.

MESSAGE FROM OUR

CHAIRMAN G4-1

Balancing Challenges with Opportunities

While it seems that we still face many roadblocks—going deeper into the daily business of our company, we find at the heart of it all our employees, who provide the animating spirit of innovation, heightened productivity and fair play that now motivate everyone in our company to greater efficiencies.

BENEATH THE SURFACE 7

collectively hit a very efficient 1.70 persons per thousand connections productivity index.

Given these high rates of productivity and engagement, I wish to congratulate our outgoing president, Mr. Victorico Vargas, for leading by example and inspiring our people to achieve over and beyond what is required.

I also welcome Mr. Ramoncito Fernandez, formerly the president and CEO of our Metro Pacific Tollways Corporation, who will be Maynilad’s new president and CEO. Mr. Fernandez’s sterling track record in enlarging our tollways company will surely boost the advances we have already made here at Maynilad. eneath the SuBeneath the Surface

Our theme for this year’s report, Beneath the Surface, aptly sums up the true spirit of entrepreneurship that prevails throughout Maynilad today.

We are entering a more challenging phase in our transformation into a total water solutions company. We are now pushing for more organic growth outside the West Zone and further marketing our services for trainings in twinning programs with

organizations overseas. We are also now serving as technical consultants of Metropac Water Investments Corporation, MPIC’s lead investor for water projects outside the Greater Manila Area. All these advancements are being done to increase our overall enterprise value on our way to going public and listing our shares at the PSE.

While it seems that we still face many roadblocks—going deeper into the daily business of our company, we find at the heart of it all our employees, who provide the animating spirit of innovation, heightened productivity and fair play that now motivate everyone in our company to greater efficiencies.

We are still faced with complex challenges, but by holding our social license to operate in the highest regard and given a supportive and conducive regulatory environment, I firmly believe that we can truly deliver more solutions to more Filipinos and international partners at a greater scale.

MANUEL V. PANGILINANChairman

In the midst of this prolonged tariff adjustment case, we even recalibrated our key success metric by prioritizing customer satisfaction over billed volume. While the upward tariff adjustment was implemented at a net average of P1.35 per cubic meter, we will still actively pursue further arbitration to uphold what we believe is the correct rebasing adjustment amount to cushion our customers from heavier tariffs and our shareholders from unwarranted pressure.

Strategic and Deft

Maynilad faced all these challenges head-on, but with a highly strategic and deft business mindset, coupled with a high regard for our communities and our environment.

As a result, we still exceeded our 93.1 percent service coverage target and now serve 9.2 million people in our concession areas. Moreover, around 1.3 million people are now covered by our sewerage network (a 20 percent increase) and 4.1 million are covered by our sanitation services (a 59 percent increase).

In addition, TUV Rheinland Philippines conferred a company-wide ISO certification on Maynilad, making us

the Philippine company with the most number of ISO certificates for multiple sites.

This strict audit process for our Integrated Management System was conducted by the international certifying body, which confirmed that we meet global standards for Quality Management Systems, Environmental Management Systems, and Occupational Safety and Health Management Systems. This is an important testament to the greater efficiency and productivity that is now prevalent throughout our company.

Outstanding Employee Engagement

All this success can only be attributed to our employees, each and every one of you who continue to embody our values.

Your dedication, your hard work, your perseverance and great faith in the company that we keep—all these are evident in the high engagement score of 93 percent that we achieved through the most recent employee engagement survey conducted by Towers Watson. This achievement exceeds the country’s average by a significant 7 percent. Because of the strong collaborative spirit that is now at work in Maynilad, we also

9

Our victories over the last year, however, did not come without major challenges. The year 2015 greatly tested our resiliency and ability to quickly think on our feet as one of the harshest El Niños took place in the fourth quarter of this year. We also had to realign a large pipeline to give way to a government flood-control program in Manila. These untoward events significantly affected our ability to deliver regular water services in some areas of our concession for a few months.

Moreover, we were prepared to disburse P9.4 billion in capital expenditures (CAPEX), but there are shortfalls and difficulties in acquiring lots for our new sewage treatment plants (STPs), including right of way issues. These have prevented us from investing in more infrastructure. In order to achieve the CAPEX disbursements, we are doing a catch up program in order to meet the targets.

As we look back on our past year’s journey toward sustainability, I am heartened to report that our improved management and governance systems are firmly in place, and our large-scale investments to revitalize Maynilad have resulted in some of our best sustainability results in recent years.

This brings us closer, more than ever, to our vision of becoming a leading water solutions company in the Philippines with an equally strong presence across the Asian region.

MESSAGE FROM OUR

PRESIDENT G4-2

With such encouragement and support, and with our upward indexes in employee engagement, productivity, and efficiency, I am confident that we will continue to surpass the headways we have already made.


among public hospitals, schools, health centers, and community hubs. We also highlighted the importance of disaster risk reduction and calamity relief when our services are needed the most.

The strides we have made toward development, sustainability and a stronger international presence have garnered more attention this year, notably from the ASEAN Corporate Sustainability Awards, the Global CSR Summit and Awards, and the WaterLinks Awards, where our Twinning Partnership with Nepal’s Department of Water Supply and Sewerage won in the Outcomes Based on Impact Category.

With such encouragement and support, and with our upward indexes in employee engagement, productivity, and efficiency, I am confident that we will continue to surpass the headways we have already made.

Ultimately, our improved overall customer satisfaction rating of 2.99 over 4.00 is our most inspiring accomplishment for this year. This shows that we are now ready and well on our way to becoming a total

water solutions provider, not only in the West Zone of Metro Manila, but also in other emerging markets overseas. To keep up with this fast-pace of growth, we will catch up on our CAPEX commitments by investing P13.6 billion in 2016, a considerable portion of which will be allocated to our sewerage programs to widen the reach of our wastewater services and meet our service obligations.

In closing, I wish to extend, on behalf of all the people behind Maynilad, our heartfelt welcome to our new president and CEO, Ramoncito Fernandez. I am confident that this company will be much stronger with your determined brand of leadership and unassailable integrity. I wish you all the success as you man the helm at Maynilad.

VICTORICO P. VARGASPresident and Chief Executive Officer

Despite these challenges, we were still able to surpass most of our economic and sustainability targets. We constructed an STP in Quezon City and a septage treatment plant (SpTP) in Las Piñas. We brought down non-revenue water (NRW) to 31 percent, which is beyond our target.

In addition, our total billed volume and the number of our new customers and connections also continued to rise, proving that our concerted efforts over the last years had already resulted in enhanced customer satisfaction and trust.

On the environmental front, we continued to work double time to minimize the impact of our operations on our physical ecosystems. Our Scope 1 emissions increased by 11 percent and our Scope 2 emissions increased by 17 percent as we expanded the scope of our operations while ensuring that the water our customers receive are safe and delivered reliably. This entails using energy-intensive technologies.

To further offset our carbon footprint (GHG), we planted 30,000 mangrove seedlings in Cavite and are on our way

to calculate the baseline carbon stock. We also stepped up our watershed management drives by planting an additional 64,100 native saplings at our primary water source at the Ipo Watershed.

Notably, we also recovered 8 billion liters of wastewater and prevented 8.5 million kilograms of pollution from entering our water bodies. This was made possible by our stronger greywater and blackwater treatment systems and a heightened appreciation among our employees for our environmental systems.

Our enlarged and more streamlined operations also resulted in improved social benefits for our stakeholders and communities. We generated 17,455 man-hours of employment for more small businesses and local suppliers. In the realm of social development and community relations, we continued to invest millions of pesos in various developmental programs, especially those aligned with our immediate business concerns. These include more targeted efforts to promote the importance of WAter Sanitation and Hygiene (WASH)

13

In addition, aligning our targets with global sustainability goals is integral to our continued expansion if we are to move beyond our traditional business borders and become a full-line water solutions company with a truly global reach.

As a unified whole, we are now therefore stepping up our efforts to ensure water security and availability not only locally

but also in other developing countries where we have established twinning programs.

From a management and engineering perspective, we continue to firmly comply with PNSDW standards and are enforcing more rigorous benchmarks to improve the water and sanitation coverage in and outside our concession areas.

Well aware that water and sanitation are at the core of sustainable development, Maynilad reaffirmed its commitment to uphold everyone’s right to water with the launch of the UN Sustainable Development Goals (SDGs) last year.

Increased economic activity, the growth of poor communities, a healthier ecosystem—all these and most, if not all, of the UN SDGs cannot be attained without first ensuring that access to clean water and sanitation is significantly improved for all.

MESSAGE FROM THE

INTEGRATED MANAGEMENT SYSTEMSREPRESENTATIVE

Aligning our targets with global sustainability goals is integral to our continued expansion if we are to move beyond our traditional business borders and become a full-line water solutions company with a truly global reach.


From planning to execution, we are also pursuing stricter targets in building a more robust water infrastructure to boost economic growth in the Philippines. This will not only ensure Maynilad’s sustainability as a profitable business, but will also support a more economically productive and healthier Philippine population.

In terms of innovation, we have pioneered WSP in the country and are now piloting a sanitation safety plan in Quezon City. Our WSP details Maynilad’s programs and procedures for ensuring the safety of our water supply at every step from source to customer. Our SSP, meanwhile, strives to identify, quantify and mitigate all possible risks at various stages of production associated with exposure of our water supply to sewage and septage, as well as effluent and dried biosolids.

We have also taken further steps to conserve the Angat and Ipo watersheds with various stakeholders, such as our local governments and indigenous peoples. We pursue these programs in tandem with our efforts to reduce the pollution that enters Manila’s waterways.

All these initiatives and enhancements are being done under the closer watch of a more cohesive management

system, which now drives us to greater productivity and efficiency. As a testament to our commitment to further improve our operational systems towards new heights of efficiency, we have added to our growing list of ISO certifications for a company-wide IMS for quality, safety and health. Next year, we will be measuring the carbon stock baseline of our mangroves in Cavite under the Plant for Life program to jumpstart our journey towards carbon neutrality. In fact, we have reduced the fuel consumption per vehicle to 482 kg CO2e per vehicle from 3,774 kg CO2e per vehicle last year.

The road toward a highly methodical and ultimately more efficient and sustainable operating system at Maynilad is now well within our reach. With everyone’s continued support and hard work, I am confident we will be taking even greater strides in the coming years.

ENGR. FRANCISCO A. ARELLANOHeadCorporate Quality, Environment, Safety & Health


Primary contact: Engr. Francisco A. Arellano, SAVP

Corporate Quality, Environment, Safety, & Health

E [email protected]

T (+632) 981-3333

Secondary contact: Engr. Enrique G. de Guzman, Head

Integrated Management System (IMS)

E [email protected]

T (+632) 981-3436

We reaffirm our commitment to

sustainable development with the

publication of our fourth Sustainability

Report, Beneath the Surface.

This report covers Maynilad’s economic,

environmental, and social performance

from January 1, 2015 to December 31,

2015. As a marked improvement from

last year’s report, we align our narrative

to the 17 UN Sustainable Development

Goals which were adopted by 193

countries last September 2015. These

goals were instituted and are aimed at

ending poverty, protecting the planet, and

ensuring prosperity for all.

Furthermore, this report is in accordance

with the core option of the Global

Reporting Initiative (GRI) G4 Guidelines.

It has successfully completed the GRI

Materiality Disclosures service, which

verifies that the General Standard

Disclosures G4-17 to G4-27 were correctly

located in both the GRI Content Index

(see pages 164-166) and in the text of this

report.

The external assurance statement is

found in pages 168-169. From 2012 to

date, our Sustainability Reports have been

externally assured.

Last year, we reported for our 2013 and

2014 performance to transition to the

G4 guidelines and we are now reverting

to reporting annually. We are also

publishing a separate 2015 Annual Report

highlighting our financial disclosures.

We welcome feedback and questions to

help us improve on our reporting. These

may be coursed to the following contact

details:

> ABOUT THIS

REPORT G4-28, G4-29, G4-30, G4-31, G4-32, G4-33

We align our narrative to the 17 UN Sustainable Development Goals which were adopted by 193 countries last September 2015.


> OUR VALUES

HONESTY AND INTEGRITYWe deal with our stakeholders with honesty and integrity. We will always do what is right and fair for the sake of our customers, shareholders and the environment.

COMMITMENT TO EXCELLENCEWe view excellence as a means and not an end. To maintain our operational efficiency and industry leadership, we push our people to excel by being diligent and innovative in their work.

CUSTOMER SERVICEWe consider our customers as our growth partners. Only by providing them with affordable, high-quality water solutions can we continue generating value for our company and shareholders.

TEAMWORKWe value our people and consider their success as our own. This is why we provide them with the support, responsibilities, and opportunities that will allow them to develop individually and with the company.

ENTREPRENEURSHIPWe encourage creative thinking and deliberate execution. We expect our people to manage our company’s resources with a strong sense of initiative, ownership, and accountability in order to balance the needs of our customers with those of our other stakeholders.

LOVE FOR COUNTRYWe actively partner with the public sector so that we can provide even more Filipinos with water solutions that will spur national development and secure the environment.

G4-56

Maynilad Water Services, Inc. (Maynilad) is the largest private water and wastewater services provider in the Philippines. Our head office is located at the Metropolitan Water and Sewerage Services (MWSS) Compound in Balara, Quezon City, Philippines. We are under the management of DMCI-MPIC Company, Inc., a joint venture between DMCI Holdings, Inc. and Metro Pacific Investments Corporation (MPIC). In 2013, Marubeni Corporation, a Japanese trading conglomerate, bought 20 percent of total shares. We are a concessionaire of the MWSS for the National Capital Region’s West Zone, and serve about 9 million people, covering an area of over 540 square kilometers.

Our responsibility within the West Zone covers certain areas in Manila, Quezon City, and Makati. We serve the entire cities of Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. In Cavite, we serve the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario.

We have been actively expanding the pipe networks in our entire concession area to bring our service area coverage to 93.7 percent with a total water pipe network of 7,575 kilometers.

We serve the West Zone through 12 Business Area (BA) offices, clustered into four Business Districts – North, Central A, Central B and South.

> WHO WE ARE

Shareholder Structure

G4-3, G4-4, G4-5, G4-7, G4-8, G4-9, G4-13


LOCALAWARDS

Philippine Quill Awards 2014International Association of Business Communications – Philippines

Daloy Dunong Mission Ginhawa Ripples Maynilad website

Kapatiran sa Industriya (KAPATID) AwardsKapatiran sa Industriya (KAPATID) Awards Employers Confederation of the Philippines

Gawad KAAGAPAYKorporasyon na Kaagay sa Ating Ganap na Tagumpay Awards LANDBANK of the Philippines Large Corporation/Non-Agriculture-based Category

Award of Excellence Safety Organization of the Philippines Exemplary record of 16 Million Man-Hours without Lost Time Accident

> AWARDS & RECOGNITIONS

ASEAN Corporate Sustainability AwardsApex Global

Maynilad Decentralized Wastewater Treatments Facilities in Quezon City

Global CSR Summit and AwardsPinnacle Group International Maynilad’s environment initiatives

Asia-Pacific Stevie AwardsThe Stevie Awards Ripples Mission Ginhawa

Waterlinks Awards 2015Waterlinks Twinning Partnership with Nepal’s Department of Water Supply and Sewerage

INTERNATIONAL AWARDS


LOGISTICSAWARDS

NEXTGENAWARDS

2016 Gawad Kaligtasan at Kalusugan (GKK) Awardee Best practices in health, safety, and environment awarded by the Department of Labor and Employment.

Global Honour Award International Water Association Turnaround Story

Kapatiran sa Industriya AwardsEmployers Confederation of the Philippines

National Fire Brigade Olympics Fire Whiz Champion

SOPI Award of Excellence MHNLTA outstanding record

WASPI Safety and Health Excellence Award

PSTD Gawad Maestro 2016 The Maynilad 8 Key Steps to Service Excellence

51st Anvil Awards Innofest Program

Kapatiran sa Industriya Awards Best Water Operators Partnership for Outcomes and Impact

SAFETY PROGRAMSANDAWARDS

HUMANRESOURCEAWARDS

WHAT MATTERS TO US


Our Materiality Framework* G4-19, G4-20, G4-21

* All focus areas are material both internally and externally.

To deliver on our refreshed brand promise to go beyond water provision and become a total water solutions company with a strong emphasis on customer engagement, we identify in this section, the key material aspects of our operations and way forward.

Our key material aspects were derived from our 5-Point Strategy for Growth, our Mission and Vision statement, and our Quality, Environment, Safety, and Health (QESH) Management Framework as references.

This year, we elevated lowering our ecological footprint as a main focus area. In the previous report, this was treated as an implicit must-have within the other focus areas. However, with our alignment with the UN SDGs which include goals on touching on the environment such as Goals 6, 13, 14, and 15 and commitment to international standards on environmental management, energy management, and greenhouse gas reporting, managing our impacts on the environment is brought into the forefront.

> OUR MATERIALITYPROCESS G4-18

Identification

Prioritization

Validation

Review

We used Maynilad’s Mission and Vision, 2012’s Materiality Framework, our QESH Management Framework, and GRI G4 Indicators as takeoff points. Maynilad also looked at different environmental and social contexts that are shaping our business environment today.

Different departments were asked to look at their KPIs and Impacts from a shared value perspective. A few key focus areas (material aspects) were chosen based on their inputs and the stakeholder concerns needed for Maynilad to deliver its value proposition. Enablers were also identified that provide a viable environment for our focus areas.

The material aspects or key focus areas were brought to Maynilad’s management for their acceptance or comments. The management checked the relevance of the material aspects as it applies to various stages of our operations.

With the launch of the UN SDGs, we took a look at our materiality framework and aligned these further to the UN goals that we could contribute on through our core business, primarily SDG 6 (Clean Water and Sanitation).

Steps and Governing Principles Our Process


G4-24, G4-25, G4-26, G4-27

Service Providers/Suppliers

As our business partners, they work directly with our employees in en-suring that our operations constantly run smoothly. They likewise uphold our quality, environment, safety, and health standards and policies.

They are our strong partners in managing the social and environmental impacts of our operations.

• Transparency• Long-term partnership• Ethical behavior• Clear procurement policies

• Building partnership• Community development• Governance• Environmental protection

and preservation• Water cost and water “rights”

We seek to build a culture of accountability and mutual respect and trust. Through our procurement management system, we work together to guarantee that our procurement policies and measures are kept strict and ethical.

Industry Partners and Associations

Government

Civil Society Organizations (CSOs)

Partners such as the Global Water Intelligence, International Water Association, Philippine Water Works Association, and as the Philippine Business for the Environment share expertise, knowledge, strategies, and best practices, including industry developments and market trends.

We also share water resources with other water utilities and agencies.

• Continuing support and long-term partnership and membership

We seek to forge long-term bonds with organizations that share our beliefs and commitments. We actively participate in conferences and industry workshops to foster good relationships with our industry peers.

We share our technical expertise with water providers from other countries improve their operations. We share responsibilities with other organizations to ensure that our water sources are ethically and sustainably managed.

We support developmental causes and maintain partnerships with various local and international CSOs through community development and environmental protection programs. We initiate dialogues and linkages and seek stronger collaborations to expand our triple-bottom line.

It regulates our business and keeps us in check, particularly regarding the terms of our Concession Agreement. We abide by all pertinent laws and policies that are mandated by the MWSS and other related government bodies. We also give proper courtesy to local authorities and inform them of our activities and operations in their respective areas.

• Regulatory disclosures• Building partnerships• Policy alignment with areas

of national interest such as green initiatives and biodiversity protection

We remain compliant to the government legislative framework and other government requirements. We communicate our policies, regulations, and other relevant matters to pertinent state authorities.

Stakeholder and Reason for Engagement

Stakeholder Concerns Mode of Engagement and Our Response

As a water utility, our ability to nurture strong

relationships with our varied stakeholders is

integral to our sustainability. As we transition

into a total water solutions company,

we aim to capitalize on our relationships

with our stakeholders, and pursue more

responsive and inclusive mechanisms to

ensure our collective growth as a unified and

collaborative community.

Along with our employees, our clients and immediate communities are at the top of our stakeholder list. They expect to receive safe, affordables, and sustainable water and waste-water services. Their satisfaction with our services is now one of our top metrics for success.

Customers and Local Communities

• Customized plans• Faster resolution of complaints• Loyalty/rewards program• Better payment systems• Maynilad hotline

• Care and support for the local community

• Life improving programs• Safe and affordable water

They are responsible for our growth and continued viability and sustainability. They are also responsible for strengthening our relationship with our other key stakeholders.

Employees

• Career development• Safe work environment• Open communication • Regular trainings• Employee benefits• Employee relationship

We provide channels for better communication lines, including general meetings and various internal publications. Our supervisors and rank-and-file employees are empowered through a Collective Bargaining Agreement. We likewise provide trainings that are geared toward capacity-building and career development. We also have safety and employee engagement programs in place. We conducted an employee engagement survey to provide us with a pulse check on where we are with our relationship with them.

We seek to work ahead of time to keep complaints at a minimum and keep our hotlines and social media channels constantly open and updated. We work to promptly address service interruptions, engage customers through our Customer Satisfaction Survey (CSAT), and provide information through our TextTubig Infoboard. We also have Special Privilege Programs in the West Zone such as lower rates for low-income households. We have put in place the Water Safety Plan to ensure that our customers receive water of the highest quality.

We implement various community development programs, such as our SpecialPrivilege Programs, to improve the lives of people in the West Zone.

ENGAGING OURSTAKEHOLDERSG4-16, G4-24, G4-25, G4-26, G4-27

31BENEATH THE SURFACE

Risk assessment and management

Risk assessment on climate change and low water levels

Done and actions were taken Done and actions were taken

Raw water withdrawal 808,948 million liters 846,537 million liters

Economic contribution Economic value generated and distributed

P18.23 billion P18.92 billion

Indirect economic impacts Not quantified 17,455 contractor man-hours

Financial capital infusion Revenue P18.23 billion P18.92 billion

Net income P8.26 billion P9.55 billion

Customer programs Number of customers 1,190,062 1,265,625

Programs in areas of high pilferage incidence

Maynilad sa Komunidad Helpdesk Program

Maynilad sa Komunidad Helpdesk Program

Programs for arrears Debt restructuring Debt restructuring

Special privilege programs Number of BOP beneficiaries 211,520 accounts 221,621 accounts

Special rates for BOP Discounted installation costs; special rates for lifeline customers

Discounted installation costs; special rates for lifeline customers

Progams for arrears of BOP customers

Debt restructuring Debt restructuring

Energy and resource conservation

Energy consumption 417,761 GJ 477,286 GJ

GHG emissions 60,029 tonnes CO2e 69,839 tonnes CO

2e

Material use 1,857,021 pieces 1,635,115 pieces

Solid waste generation 15,263 kg 15,262 kg

Pollution reduction Pollution abatement from wastewater

Not computed 1,831,628 kg BOD removed

Enablers Indicators2014 Performance

2015 Performance

> MATERIALITY PERFORMANCE

Innovative technologies Integrated Meter Management 236,267 meters replaced 137,220 meters replaced

Leak Detection and Repair 36,967 leaks repaired 27,628 leaks repaired

Efficient systems Water recovered 6,514 million liters 8,140 million liters

Wastewater discharged 44,707,406 cubic meters 57,120,333 cubic meters

Water safety plan Implemented Implemented

Pipelaying 152 km new pipes 117 km new pipes

ISO Certification 106 certificates 150 certificates

Employee wellness programs

Employee satisfaction and engagement

NA 93%

Turnover rate 4% 2.66%

MHNLTA 4,082,600 3,847,628

Volunteerism 3,846 hours 3,008 hours

Diversity 75% male, 25% female 75% male, 25% female

Trainings and capacity buildings

Training hours 48,448 hours 52,162 hours

Training areas Core, Leadership, IMS, Technical

Core, Leadership, IMS, Technical

Regulatory and legal compliance

Water quality Instances of non-compliance Instances of non-compliance

Wastewater quality Compliant Compliant

Customer programs Total billed volume 463 billion liters 482 billion liters

Average consumption per customer

52 cubic meters per person 52 cubic meters per person

Enablers Indicators2014 Performance

2015 Performance

33

HOW WECREATE VALUE


Together with the National Water Resources Board, the Metropolitan Waterworks and Sewerage Services (MWSS), and other key agencies, Maynilad is fully supporting national policies and frameworks that encourage greater investments in needed infrastructure, while simultaneously protecting our available resources and addressing water scarcity for those who are not yet in the mainstream.

1 United Nations. <http://www.un.org/waterforlifedecade/scarcity.shtml> UN Water. <http://www.unwater.org/publications/publications-detail/en/c/204294> Food and Agriculture Organization. <http://www.fao.org/docrep/004/ab776e/ab776e03.htm>

Global consumption of fresh water has grown at more than twice the rate of the world’s population growth over the last century. In the Philippines, pressure on limited fresh water resources is mounting due to overpopulation, economic growth and pollution.1

It is paramount for our continued viability as a business to support all measures that guarantee the best possible management of our water resources. At Maynilad, we are committed to ensuring the sustained supply of fresh water for generations of Filipinos to come where we operate most of our business lines.

> SECURING OUR

WATER SOURCE


largest membrane-based water treatment

plant, which pioneers the use of large-scale

microfiltration and reverse osmosis. PWTP

has a design capacity of 100 MLD.

In addition, we are supporting the

construction of a diversion tunnel to

supplement the water coming from

Umiray River going to the Angat-Ipo

reservoir. Through the Common Purpose

Facility (CPF), a company established

together with MWSS and Manila Water to

operate Ipo Dam, a P748.73 million project

was undertaken to increase the flow of

creeks and rivers into Ipo Dam.

We also sparingly extract from groundwater

sources through deep wells to provide

much-needed services to people who would

otherwise have no access to water.

We have seven operational deep wells but

we used 11 during the year in our North

and South districts. This contributed about

4.55 million MLD of water to parts of

North Caloocan, Cavite, and Muntinlupa.

Well aware of the potential harmful

impacts of withdrawing groundwater

for commercial use, we are working

actively to build a more extensive

surface-water network to further reduce

our groundwater use and minimize our

environmental impacts. Once we have the

necessary infrastructure to supply surface

water to these communities, the deepwells

will not be operated anymore and will only

be maintained as standby water sources in

times of water scarcity. A detailed status of

our deepwells is found in Annex A.

P748.73 M Cost of increasing the flow of creeks and rivers into Ipo Dam

Our water withdrawal and production rates

are mainly a function of customer demand

and our delivery rate is in response to this.

Our primary supply of water comes from

Angat Dam, transmitted through Ipo Dam,

and then treated at our two La Mesa plants,

namely La Mesa Treatment Plants 1 and

2 or LMTP 1 and LMTP 2. LMTP 1 is a

conventional-type plant with a maximum

design capacity of 1,500 million liters

per day (MLD). LMTP 2, meanwhile, is a

pulsator-type plant with a design capacity

of 900 MLD.

Our supplementary source of water is Laguna

de Bay. We treat lake water at our Putatan

Water Treatment Plant (PWTP), the country’s

HOW WE PRODUCE WATER

Water Sources


Water Withdrawal and Production IN MILLION LITERS

Raw water withdrawal increased by 5

percent from 2014 to 2015. In particular,

withdrawal from Laguna Lake through

PWTP increased by 62 percent.

Our production increased by 6 percent

from 2014, primarily because of

business expansion drives and the

increase in number of customers.

Notably, production at PWTP marked

a considerable increase of 64 percent

compared to the previous year as

a result of our capacity and design

improvements.

In 2014, PWTP underproduced due

to poor and inconsistent quality of

lakewater as a result of high ammonia

content, high dissolved solids, and

unsatisfactory taste and odor from

algal bloom. PWTP’s original design

was not enough to treat the varying

water quality of the lake. Thus, we are

improving PWTP’s design to enable it

to produce according to requirements

in the southern part of the concession

area. This will increase the plant’s

capacity from 100 MLD to 150 MLD

when completed. Since April 2015, some

improvements were already in place,

which led to the increase in production.

PWTP’s production is significantly

determined by the lakewater quality

as well as the status of the project

implementation of the enhancements.

Our overall delivery rate or production/

withdrawal, meanwhile, reached 97.06

percent, a slight increase in efficiency

from 2014.

Water quality from our surface water

sources are found in Annex B.

97.06% Our overall delivery rate increased in efficiency

G4-EN8, G4-EN9


incurred through membrane washing and

use of reverse osmosis.

Backwash water at LMTP 1 is conveyed

and stored in four lagoons, while

backwash water at LMTP 2 is conveyed to

the recovery tanks, which is immediately

recovered for another cycle of treatment.

There was a significant decrease in losses

for LMTP 1 and 2 from 2014 to 2015

because of the staggered completion of

our sludge dredging and hauling project at

the four lagoons from April 2015 onwards.

With the dredging of the lagoons, the

storage capacity was restored to nearly its

original level. Only limited scouring during

the recovery period was noted, which gave

good quality to recovered water in terms of

turbidity.

Recovered washwater in PWTP is

mixed along with newly withdrawn

water from the lake and treated together.

Separate recording of both raw lakewater

withdrawal and washwater is currently not

available.

Chemical Use IN MILLION TONNESWe account and compute for water loss as

the difference between water withdrawn

and water produced.

Our primarily losses are incurred at

LMTP 1 and 2 filter beds through cyclic

backwashing or the inability of these plants

to recover backwash water from its lagoons

which have accumulated significant

amounts of sludge. Losses at LMTP 1 are

also a result of evaporation and small leaks

in the numerous gates that all go to the

lagoons. Losses at PWTP, meanwhile, are

WATER RECOVERY G4-EN10

Recovered vs Lost IN MILLION LITERS


Seedlings Planted

mangrove propagules in Manila Bay) and

have, so far, planted 64,100 indigenous

seedlings at the Ipo Watershed with the

help of 1,682 participants. Some of these

native species include narra (Pterocarpus

indicus), kupang (Parkia timoriana), and

antipolo (Artocarpus blancoi).

Watersheds are geographic areas through

which water flows across the land and

drains into a common body of water, such

as rivers, lakes, and oceans.

The Ipo Watershed and its forests—part

of our watershed system that supplies

around 97 percent of Metro Manila’s water

requirements—span an area of around

6,000 hectares and are some of our most

important natural assets.

Beyond the delivery of water, Maynilad

actively works to ensure that our

water sources are well managed and

environmentally protected and conserved

starting from the very source. As such,

we follow strict land-use and water-

management practices to improve the

quality of the water and other natural

resources within our watersheds.

Recognizing that trees are indispensable

in the sustainability of watersheds, and

therefore the water supply, the Plant

for Life program was established. It

taps volunteers and partner agencies to

reforest the Ipo Watershed (as well as plant

Watershed Management G4-EN11, G4-EN12


Expecting El Niño to persist until 2016, the National Water Resources Board cut allocations for domestic use in Metro Manila from 41 cubic meters per second (CMS) in August to 38 CMS in September 2015.

This considerably hampered Maynilad’s ability to extend regular services to 56 percent of its customers, or 900 barangays in the West zone, during the third quarter of 2015.

Our Response

Ignoring El Niño has never been an option for Maynilad. This recurring weather phenomenon reinforces our belief in the importance of our water sustainability and environmental advocacy—a responsibility that we prioritize as we do our bottom line.

Since Metro Pacific and DMCI took control of Maynilad in 2007, we have spent over P4.23 billion in building a redundant water supply system: 24 reservoirs with a total capacity of almost 600 million liters.

In 2015, we focused our efforts on maximizing supply and cushioning our customers from El Niño’s impact. We implemented system adjustments and extended the operating hours of our pumping stations to make sure that our clients would not have to go through a day without water.

We implemented self-imposed conservation measures to preserve Angat Dam, resulting in low water pressures and rotating service interruptions starting on September 16. We quickly resumed regular

services in October after rains brought by Typhoon Lando temporarily increased Angat Dam’s water supply. But as reserves again declined, we resumed the scheme and then implemented pressure management instead of interruptions.

Surpassing Targets

Despite all these challenges and restrictions, our billed volume and revenues went up, along with other key performance indicators. This was boosted by our campaign to reduce water loss or nonrevenue water (NRW). From 53 percent in 2010, our NRW is at 31 percent as of December 2015. This translates to over 400 MLD of recovered water that the company can deliver to its customers. Beyond the investments and measures that we now have firmly in place, Maynilad also organized a task force to prepare and plan for mitigating solutions in the event that a stronger El Niño occurs.

Further Steps

We expect El Niño to become a recurring challenge. We will continue to invest in building new reservoirs for enhanced water storage capacity. We will also continue to pursue our reforestation program and reach out to more schools, communities, and institutional partners to strongly advocate responsible water use.Long after this drought ends, Maynilad will continue to work for water security through strategic investments, sound long-term planning, and water preparedness drives and innovations.

Characterized by warming ocean temperatures bringing rains to the Americas and drought to Asia, the El Niño weather phenomenon in 2015 was one of the worst Southeast Asia experienced in over 60 years.

In the Philippines, El Niño intensified in the last quarter of 2015, causing a severe dry spell and a significant reduction in water reserves at the Angat Dam.

WATER SECURITY

RESPONDING TO STRONGEL NIÑO


responsive, and economically supportive, especially to those who still lack access to clean and potable water services.

Our continued investments in water infrastructure, the quality of our water supplies, and our discounted rates for poor communities are all testaments to our new corporate mantra of putting customers first over billed volume as our key success metric.

> PROVIDING ACCESS TO SAFE, POTABLE AND AFFORDABLE WATER

Maynilad’s imperative to improve access to water and bring about greater sanitation and health among our communities is central to our long-term growth.

While we are a private company, our business is directly related to a key social good, and so we grow our business in tandem with our mission to expand the social and environmental dimensions of our services.

To this end, we continue to refurbish and expand our infrastructure and water-lines in a manner that is environmentally sound, socially

WATER DELIVERY G4-2, G4-EN27


Water Service Coverage Map

New Pipes Laid IN KILOMETERS

Water Delivery: Facts and Figures

In 2015, we continued to surpass our targets in water delivery. We now have a 93.7 percent service area coverage, up by 2 percent from 91.6 percent in 2014, and surpassing our 2015 target of 93.1 percent. We laid 117 kilometers of new pipelines, bringing our total pipe network to 7,575 kilometers. A detailed list of water coverage is found in Annex C.

We likewise hit our 2015 target of 9.2 million people served from 8.9 million in 2014. As a result, we also exceeded our billed volume target of 480.17 million cubic meters for 2015 by delivering a total of 481.53 million cubic meters of water for this reporting year.

North Caloocan City

Valenzuela City

Malabon

SouthCaloocan

Manila

PasayCity

ParañaqueCity

Las PiñasCity

Bacoor

Imus

Kawit

Rosario

Noveleta

Cavite City

MuntinlupaCity

Quezon City


with no water supply or low pressure as of December 2013. These will also address increasing demand in the area.

In the South Area, particularly in Cavite, we have substantially covered most of our pipe-laying work at Daang Hari Extension in Imus. We have also now covered around 73 percent of construction work at Epza and Magdiwang Highway, and completed around 49 percent of our work along Centennial Road in Kawit.

Our figures in the south are slightly below our targets as various external factors beyond our control considerably hampered our expected efficiencies. These include our limited working time as imposed by local governments due to traffic congestion; right of way concerns at the NIA Road/Bridge Crossings; and port congestion issues that affected the delivery of our pipes from overseas.

Nevertheless, we will profit from experience and continue to find innovative ways to work around these road blocks to our expansion drives. A list of our big ticket projects for water delivery are found in Annex D.

P1.5 B Capital expenditures for non-revenue water

Our excellent performance in water delivery was considerably boosted by our distribution expansion and upgrade programs.

For this reporting year, Maynilad allocated around P1.35 billion in capital expenditures for NRW and service expansion programs. We also posted an average time of 53 days per kilometer of pipe laid, which allowed us to serve more people and decrease inconveniences.

We are heartened by the completion of our In-line Booster in Novaliches-Valenzuela worth P36.2 million; our Alazap Booster project in Las Piñas worth P138.2 million;

and our 4.22- kilometer Commonwealth Primary Pipelaying program worth P238.4 million. These will improve water reliability and pressure to more than 9,000 service connections.

In the North Area, we also completed our 2.85 kilometer construction of a 1,200 mm diameter discharge line at the North A Annex Pumping Station worth P276.48 million, and finished the 2.68 kilometer pipelaying of a 700 mm diameter line along Quirino Highway worth P144.8 million. These projects will improve water pressure and supply for 31 percent of residents in the North Caloocan Business Area who still experienced hours

Delivery Expansion and Upgrades


939 Minimum base of samples requiredfor water testing

Water Quality G4-14

We make sure that the water that we treat is safe for drinking. We subscribe to the standards and principles of the Philippine National Standards for Drinking Water (PNSDW). Classified as a Level III supplier of drinking water (waterworks system or individual house category), we are required to have a minimum base of 939 samples. The samples are analyzed for physico-chemical parameters, heavy metals, organic compounds, as well as radiological elements, pesticide residues, and disinfection by-products. Any non-complying results are forwarded to the head of the concerned plant as well

as to the Environmental Management Department of Maynilad for their appropriate action. Additionally, data gathered by our laboratory are reported to the DENR via Maynilad’s biannual Environmental Compliance Certificate (ECC) Monitoring Report. This year, there were some instances where color and odor limits (not health-based under PNSDW) breached the requirements for PWTP since our facilities for improving these are still under the commission and proving stage. Water from LMTP 1 and LMTP 2 are all compliant. Some results of our 2015 data gathering are found in Annex E.


NRW Reduction

delivery network in Manila, especially

its oldest districts such as Malabon,

Tondo and Sampaloc. We are strategically

pursuing this program in stages owing to

the massive work that is required.

Our ultimate goal is to bring NRW down

to 20 percent by the current end date of

our concessions with MWSS in 2037.

We have already made considerable

headway in reducing NRW over the past

few years and again surpassed our targets

for 2015 as we allocated P1.98 billion of

CAPEX for this.

It costs us P20 million to bring NRW down

by a million liters each day.

Our NRW reduction figure is now at

an all-time low of 31 percent, down by

3 percentage points from 2014. This is

beyond the target of 32 percent that we

had set before the start of the year. We

attribute this decrease to our sustained

focus on pipe rehabilitation (which

includes the replacement of asbestos

cement pipes) and the prompt monitoring

and repair of pipe leakages and inaccurate

meters.

MLD MLD MLD

PROGRESS ON NRW REDUCTION

Chronic water loss has been a big challenge

in our concession area before the Metro

Pacific consortium took over Maynilad.

The water network in Manila’s west zone

are referred to as “legacy pipes,” or among

Asia’s oldest pipe network, therefore

heavily prone to ruptures and breakages.

The loss of millions of cubic meters of

treated water—as well as millions of pesos

in social investments because of leaks,

theft, or metering inefficiencies—is a very

serious concern at Maynilad.

When our consortium took over the

management of the company in 2007,

our NRW was pegged at 66 percent of

our total water production—a staggering

1,500 MLD of potable water lost that

could have benefitted millions of people.

These massive losses were a result of

decades of deterioration and lack of

immediate action.

In response, we immediately launched an

NRW program that is one of the largest in

the world in terms of coverage and cost.

Maynilad allocated a total of US$ 1.07

billion or 52 percent of our total capital

expenditures from the start to the end of

our concession agreement for this cause.

This huge investment represents our full

commitment to rehabilitating the water

31% Our NRW reduction

figure is now at an all-time low


Massive Meter Replacement

In support of our NRW drive, we also focus

on replacing faulty meters to achieve correct

meter sizing relative to true consumption.

We have a massive meter replacement

(MMR) program in place using our

Integrated Meter Management system. On

average, each meter has a five-year lifespan.

Leaks Reported and Repaired

In 2015, there were 53,207 leaks reported.

However, due to double reporting and

based from actual investigation, this

translates only to a total of 27,628 actual

leaks. All these leaks were repaired,

translating to a 100 percent resolution

rate. The significant decrease in the total

number of leaks repaired for this year is

a good development, as it proves that our

rehabilitation programs over the previous

years have already resulted in a healthier

systems management at Maynilad.

Using the latest audio and video

equipment, such as acoustic listening sticks

and CCTV-equipped drogues, for systems

monitoring over a 3,692-kilometer length

of pipe network, we are able to respond

to new leaks at an average of 1.67 days,

thereby ensuring the prolonged health of

our pipelines.

Massive Meter Replacement

Pipes Replaced

Over the past year, we managed to

increase our pipe replacement output

by 38.24 percent. This represents a

considerable area and distance in our

concession or a total of 235 kilometers of

weak and faulty pipes that are now fully

rehabilitated.

Pipe rehabilitation is one of our priority

programs and so we intend to maintain

our focus on this concern, particularly

in areas that still have a high volume of

NRW or frequently report pipe bursts or

leakages.

In prioritizing areas in our concession

for pipe rehabilitation, we consider the

age of pipes, layers of pavement, and

encroachment within property as key

factors.

Primary Leaks Repaired

We define primary leaks as those from

pipes that are larger than 300 mm in

diameter. There is a decreasing trend

in this metric over the past years

because of our constant and active leak

detection system. We have covered 279

kilometers of primary pipes in our regular

monitoring with a 95 percent hit rate,

reaching our targets of 253 kilometers and

95 percent, respectively.

Pipes Replaced IN KM.

Primary Leaks Replaced IN KM. Leaks Repaired IN KM.


A larger scale of operations and a longer-term

outlook are necessary aspects in our business

approach for our company to thrive.

In this regard, the sustained social values

of our services—our brand reputation,

the satisfaction of our customers, their

continued health and well-being—are all

essential to the success of our business

model as both a utility and a public trust.

In 2015, we thus boldly refreshed our

brand to signal the prevailing shift in

mindset of our business from a water

production and delivery service to a

full-line or holistic water management

company.

Higit sa Tubig ang Aming Serbisyo—our service goes beneath the surface

and beyond water provision. This new

company mantra at Maynilad puts people

as the primary yardstick of our success.

QUALITY MANAGEMENT SYSTEMS

To further our operational efficiencies,

we subscribe to ISO 9001:2008 which

focuses on quality management

principles and continuous improvement

in all aspects of our operations. A

complete list of our ISO accreditation is

found in Annex F.

As a water utility, our primary and largest

source of revenues come from customer

sales and the projected constant rise in

demand for our services. Given these

premises and the huge amounts of

investments required for us to operate, we

can never be truly viable if we only think

within a small scale or over the short term.

BEYOND WATER: PUTTING CUSTOMERS FIRST

2.99 / 4.00 Our improved

overall customer satisfaction rating


Lifeline Customers

We also have a socially-responsive

program in place that extends

our regular services to elderly

customers at a 5 percent reduced

cost. Additionally, DSWD-accredited

senior shelters receive a 50 percent

discount.

Households with Senior Citizen DiscountsLow-income Households

Total Customers NO. OF ACCOUNTS

Increased Billed Coverage

Our customer base further increased by 6

percent. This is on target and represents

a considerable rise in public confidence

as well as a return in our shareholder

investments.

Beyond the expansion of our regular billed

service coverage, we also expanded the

social value of our services by increasing

the number of low-income households—

people who need our services the most—

connected to Maynilad by 4.78 percent in

2015. A discounted installation charge of

P2,740.01 for 29,271 low-income accounts

was also given.

In addition, our “lifeline customers,” those

who only consume a maximum of 10

cubic meters of water per month, also

increased by 17.72 percent.


Customer Satisfaction G4-PR5

Our customer satisfaction score (CSAT)

for 2015 meets standards at 2.99 over 4.00

which is beyond the target of 2.00. We are

delighted that we have achieved this score

as we beefed up our CSR and customer

programs and built better relationships

with our customers. We now consider this

metric, along with other targets on service

obligations, as the primary benchmarks of

our growth, rather than billed volume.

To further improve the service-orientation

of our employees and their approach to

customer care, our Human Resources

Learning and Development Department

launched “8 Key Steps to Service

Excellence.” This training program and set

of concise guidelines serve to standardize

our customer-relations efforts, especially

among frontliners, customers relations

specialists, and customer management

officers.

Next year, all Maynilad employees,

even those who do not interact directly

with clients, will go through this training

program. Our aim is to imbibe a spirit of

service among all Maynilad personnel until

this heightened focus on service becomes

synonymous with the Maynilad brand.

CSAT Score

Water Pressure Increase

To reach customers living on higher

floors, we have worked to increase water

pressure in many areas of our concession.

This has resulted in a marked increase of

customers, especially those in lower areas,

who are enjoying a water pressure of up

to 16 psi. This year, all of our customers

received a water pressure of at least 7 psi

and we implemented measures so that

most of them will receive at least 18 psi.

We are now targeting that 100 percent of

our customers will receive a minimum of

16 psi by 2016.

Percentage of Customers Receiving Water Pressures of


Customer Complaints and Connection Requests IN NUMBERS

seven days for C4 and five days for C3 as

indicated in our Service Level Agreement

(SLA). Also, we need to have a 95 percent

target resolution for C1, C3, and C3 and a 90

percent target for C2.

We also received 5,160 complaints on

illegal activities such as illegal connections,

unregistered water service connections,

illegally reopened connections, and bypass

connections. These were all resolved.

Online billing increased by 161.45 percent

from 2014 to 2015. Our speedy online

billing process provides customers with

their statements of accounts on the same

day their meters are read. This gives them

more flexibility in managing and settling

their accounts. It also improves our

operational efficiency since customers are

able to report possible inaccuracies in their

statements ahead of time, thereby allowing

us to promptly resolve complaints.

Our online billing service was launched

through the My Water Bill program. We

intensified capturing customers’ contact

details and enrolled them through a

customer care-assisted process.

We categorize complaints in four areas:

service (C1), billing (C2), application (C3), and

installation (C4). In 2015, 180,016 complaints

and requests were registered, 7 percent higher

than the previous year in all categories, except

for billing. There was a significant increase

in service-related complaints mainly due to

issues encountered such as water availability

and quality issues from PWTP and a major

interruption due to pipe realignment in

Manila.

We strive to resolve all valid complaints as

quickly as possible. Compliance or resolution

is measured by the number of complaints

addressed within 10 working days for C1 and

C2. The requests should be addressed within

Managing Complaints and Requests

Online Billing Increase

Online Billing IN NUMBERS


Water Safety Plan

At the very core of our business is the

quality of water that we supply to millions

of people. None of our other business

metrics matter if we are unable to ensure

the cleanest and safest possible water

supply for all our customers.

As soon as Metro Pacific took control of

the Maynilad concession in 2007, the

company introduced a Water Safety Plan

(WSP)—the first of its kind in the country

and a continuing source of pride and

inspiration for all of us in Maynilad.

Maynilad now follows WSP in every step

of the water cycle—from abstraction,

to delivery and treatment, to corrective

actions in the event of a water

contamination, whether from microbial,

chemical, or physical causes.

Maynilad has already implemented

various corrective programs as a result of

WSP. Filter beds have been rehabilitated,

a new sluice gate has been installed, and

new facilities that address the presence of

ammonia, iron and manganese have been

created, among many other initiatives.

WSP is now fully ingrained in the

management system of Maynilad. It has

also been used as a model by various

stakeholder groups, such as the World

Health Organization (WHO) and the

Department of Health (DOH).

In fact, the DOH recently used WSP as a

benchmark in its seminars and trainings

across the country to encourage other

companies and water districts to create

their own safety plans. WHO, meanwhile,

cited Maynilad’s WSP program as a model

in its Training Workbook on Water Safety

Plans for Urban Systems.


We thus implement our wastewater program through strategic and comprehensive initiatives that integrate water resource management with waste management, environmental stewardship, and human health issues, among a host of other important concerns.

Moreover, we are constantly looking for the best system for treating wastewater as increased efficiencies in wastewater treatment translates to greater profit for all our stakeholders and shareholders. We include stakeholder participation, public education in sewerage and sanitation, innovative and clean technologies, and greater financing for wastewater management in our strategies toward improving our wastewater systems.

WASTE WATER TREATMENT

> TREATING WASTEWATERAt Maynilad, we recognize that wastewater management goes beyond a series of correct steps and procedures. Our wastewater program aims for the sustained and longer-term growth not only of our business but more so of the environment and the communities that we serve.

Around 80 percent of the potable water consumed by customers becomes wastewater. If untreated, this wastewater will pollute receiving bodies of water with harmful pathogens that will, in turn, adversely affect public health.


Sanitation Coverage MapOur Services

Since 2007, Maynilad has constructed an additional 16 facilities to boost our capacity to handle wastewater. We now have 19 sewage treatment plants (STPs) and two septage treatment plants (SpTP) that treat our customers’ wastewater.

These STPs are capable of treating 540,917,000 liters (540,917 cubic meters) per day. See Annex H for a complete list of STPs and their receiving bodies.

Through these plants and sewer network systems, we extend wastewater services by collecting, treating, and properly disposing domestic wastewater from homes and industries. Areas that are not yet reached by our sewer lines avail of our sanitation services or septic tank desludging.

To further improve our sanitation services, we completed our Alabang-Zapote SpTP, a 500 cubic meter per day (CMD) facility, which began operating in 2016.


length of sewer lines

The conveyance systems for the three new STPs we constructed in 2015 increased the length of our sewer lines by 5 kilometers, resulting in an increased sewerage coverage in the West Zone.

We constructed sewer lines at a rate of 87 days per kilometer.

sewage treatment plants capacity

From 16 STPs in 2014, an additional 3 STPs with a total capacity of 23,317,000 liters per day became operational in 2015, resulting in an increase of our sewerage coverage. Our STPs provide a menu of technological options to suit each respective area of coverage. This offers Maynilad the ability to operate different treatment process enabling enrichment of employees’ competency and skills.

Length of Sewer Lines IN KM.

STP Capacity LITERS PER DAY

Sewerage Coverage

For every 1 percent increase in coverage, we are able to approximately serve an additional 100,000 people. With this basic ratio in mind, we strive to generate the P1.40 billion CAPEX needed for every 1 percent incremental increase. For this year, we have allotted P2.02 billion for our wastewater program and seek to raise as much investments as possible to reach 100 percent sewerage coverage.

Aside from financing and stronger shareholder investments, we are confronted with other challenges, like land acquisition for our STPs.

Such can be a delicate matter, owing to the difficulty of finding suitable locations with enough land areas for facilities that treat wastewater.

In spite of the challenges, our sewerage coverage, or the total number of people connected to our sewer systems, increased by 20 percent from 2014 to 2015. We were able to achieve our 2015 target of 14 percent with the same value.

However, our projected figures show that we will be behind our 2016 target of 27 percent coverage due to complexities in acquiring site permits from LGUs for the six additional STPs that we are now ready to construct. As a mitigating measure, Maynilad will go into strategic landbanking initiatives to minimize delays in site acquisition.

In the past, Maynilad would conduct feasibility studies five years before the planned construction, while the company was only allowed to acquire sites two years prior. By then, some potential sites have already been bought or are under different conditions. With our new measure, we hope to reach our 27 percent target in 2018. We have also set an alternate target of 16 percent coverage for the next reporting year to give us more flexibility in our schedules.

Sewerage Coverage


Desludged Septic Tanks

We desludge the septic tanks of domestic customers once every five-to-seven years. The collected septage is carried by vacuum trucks to the Veterans Water Reclamation facility in Project 7, Quezon City, or to our Dagat-Dagatan Sewage and Septage Treatment Plant in Caloocan, where it is dewatered and further processed into dry sludge or biosolids. It is then further treated and safely disposed by our partner companies (or contractors) at their composting facilities.

As a result of our increased coverage and desludging truck fleet, the volume of septic tanks desludged in our concession considerably increased in 2015. This translates to a total of 6,348 cubic meters of biosolids (5,156 cubic meters by F.G. Agro and 1,192 cubic meters by Mapecon) that have been treated and disposed.

Volume Desludged IN CUBIC METERS

Sanitation Coverage

We account for sanitation coverage by the number of people served by Maynilad’s desludging services. By increasing our resources (i.e number of Vacuum Trucks utilized), we were able to nearly double the population being served. With this accomplishment, we have complied with our 2015 target of 44 percent and currently on track to comply with our target of 50 percent for the next reporting year.

Annex C provides the sanitation coverage per municipality in terms of population and Annex G provides the number of accounts offered with sanitation services per municipality.

Sanitation Coverage

Our Sewage Treatment Plants


Pollution Load Abatement

We actively work to guarantee that our wastewater discharges are within current standards following national and regional best practices. By judiciously following all statutes and codes related to effluents and discharges, we prevent the further pollution of our water bodies and promote better health.

Because of our treatment of wastewater, we managed to reduce biochemical oxygen demand (BOD) by 58 percent, chemical oxygen demand (COD) by 59 percent, total suspended solids (TSS) by 53 percent, and oil & grease by 43 percent. Samples of wastewater quality results are found in Annex I.

Pollution Load Abatement IN KILOGRAMS

The efficient and safe collection and processing of sewage is vital to our community’s health and the sustained success of our concession. After treatment, treated wastewater is discharged into water bodies.

The impact of wastewater discharges into our water bodies is a concern that will never be taken lightly. We strictly follow all discharge limits and regulations imposed by the government and employ the latest treatment technologies that are also the most apt for the location and conditions of each STP.

The increase in wastewater discharge is due

to the increase in the number of STPs.

WASTEWATER MANAGEMENT

G4-EN22


Managing human wastes, especially in heavily populated areas like Metro Manila, is crucial to protecting public health. Improving access to sanitation facilities, including the provision of adequate containment and proper treatment and handling of blackwater, is therefore essential to prevent the outbreak of water-borne diseases, especially in poor and congested communities.

To promote a more comprehensive risk-based approach to improving Manila’s sanitation systems, WHO and the Asian Development Bank (ADB) have partnered with Maynilad to pilot sanitation safety planning in the Philippines.

“This innovative approach on sanitation provides a new dimension in managing human wastes,” said WHO in the Philippines. “Adequate sanitation is essential for the protection and promotion of the health of individuals and communities, and enables productive and dignified lives.”

Maynilad’s sanitation safety plan (SSP) for this pilot program was done for the Veterans Water Reclamation Facility located in Project 7, Quezon City. This facility is a combined sewage and septage treatment plant, which receives sewage coming from the sewered areas of Project 7 and septage from the West Concession

Area of Metropolitan Waterworks and Sewerage System (MWSS).

The effluent processed in this facility is received by Culiat Creek, which eventually drains to San Juan River, a heavily polluted tributary of the Pasig. third-party haulers (Mapecon and F.G. Agro) transport the biosolids processed in the plant to composting facilities in Alaminos, Laguna and Concepcion, Tarlac.

With this SSP, Maynilad aims to identify all potential hazards and quantify the risk associated to exposure to the sewage and septage collected, as well as exposure to the end-products produced by the treatment facility, particularly the effluent and the dried biosolids.

The Maynilad’s SSP aims to mitigate any adverse health effects resulting from the exposure of its communities to wastewater (sewage and septage) during collection, transport, treatment and disposal, as well as maintenance activities.

“With the success of these pilots, it is envisaged that other utilities and service providers in the Philippines will follow the steps undertaken by Maynilad Water Services Incorporated and Baliwag Water Districts,” said WHO.

According to the World Health Organization (WHO), only around 74 percent of the Philippine population enjoyed the use of improved sanitation facilities at the end of the Millennium Development Goals (MDG) in 2015. This left 26 million Filipinos at risk to various infections and diseases.

A FIRST IN THE PHILIPPINES

PILOTING SAFETY SANITATION


The correct and safe handling of septage is just one among the many concerns of Maynilad’s wastewater services.

When properly treated and processed, sludge turns into biosolids, which are organic materials rich in nutrients. Processed biosolids can be used as fertilizer to improve farmlands and stimulate agricultural growth. As such, Maynilad has various third-party programs in place to facilitate the effective management of biosolids. These programs ensure that useful materials from sewage are recycled on land while harmful components are kept from being released into our water bodies.

One such program is Maynilad’s partnership with F.G. Agro, a family company involved in the growing of sugarcane in Tarlac. F.G. Agro has been hauling biosolids from Maynilad since 2012. We renewed their contract this year owing to their excellent services and improved facilities.

Using vacuum-sealed trucks, the company now hauls at least 60 cubic meters of biosolids from our septage treatment plants and aims to haul at least 10,000 cubic meters a year. While there are no reported occurrences of spillages, the company has put in place a spillage action plan with well-trained personnel and drivers on standby to handle possible leaks.

At the F.G. Agro site, biosolids are sun-dried for about 20 to 30 days, which brings the moisture content from 80 percent down to 60 percent. After drying, the biosolids are transferred to the composting area where carbon (e.g. bagasse, rice hull) is added to prevent clumping, followed by microorganisms to kill E. coli.

The treated biosolids are then used to add nitrogen to the soil for growing sugarcane in Central Luzon. Based on the company’s experience, sugarcane grown on soil conditioned with biosolids grow better compared to other yields.

Every day, the company now hauls at least 60 cubic meters of biosolids from our septage treatment plants using vacuum sealed trucks. Their target is to haul at least 10,000 cubic meters a year.

FROM SEWAGE TO FARM

PROCESSING BIOSOLIDS WITH F.G. AGRO

WHAT ENABLES US TO CREATE VALUE


System). As part of this strategy, we have internalized a systematic framework that allows us to manage the environmental impacts of our products, services, and processes. Going deeper into this framework, we have also adopted ISO 50001:2011 (Energy Management System) and ISO 14064-2006 (Quantification and Reporting of Greenhouse Gases). Subscribing to and reporting on these standards have enabled us to better manage and assess our ecological footprint. Our full list of ISO certifications is found in Annex F.

We are committed to the continued reduction of our energy consumption and carbon emissions. Toward this end, we aim to achieve concrete reduction targets, sustain the high quality of our water supply and effluent, and fulfil our obligations on environmental stewardship and the improved health and well-being of our communities.

> MANAGING OUR

ECOLOGICAL FOOTPRINT

Minimizing the adverse environmental impacts of our business is key to our overall sustainability strategy. We operationalize our environmental responsibility through resource optimization, prudent use of materials, and reduction in waste generation while managing their proper treatment and disposal. Effective controls on greenhouse gas emissions and pollutants are also part of this process.

To institutionalize our environmental advocacy, we subscribe to ISO 14001-2004 (Environmental Management


As a company that rely on water resources, we recognize that climate change is one of the biggest risks to our sustained success. Stronger typhoons pose hazards to our facilities and pipe networks, while recurring spells of drought affect the water supply in our existing reservoirs. Our sustainability and continuity therefore rest largely on the robustness of our climate-proofing initiatives and our ability to lessen business risks related to climate change.

We are thus actively searching for new water sources while increasing our storage capacities and furthering water reclamation and reuse. We have also continuously decreased NRW and improved our water quality and quantity prediction abilities.

Moreover, we are now working double time to establish redundant back-up systems for all key aspects of our operations. We are likewise innovating on new design parameters for future facilities, such as mobile treatment plants and on-line chlorination systems.

We have partnered with the media for a more forceful and wider information and education campaign. Also, our relationship with major stakeholders, especially indigenous peoples, remain strong as we jointly manage and protect our watersheds.

CLIMATE-PROOFING AND BUSINESS CONTINUITYG4-EN3, G4-EN5


11,605.52

20.98

12,666.68 21,023.12

57,365.13 60,195.13 49,869.96

282,930.00 344,900.00 406,392.71

Energy Consumption and Intensity IN GIGAJOULE

25.2222.92

Due to the increased coverage area of

Maynilad in 2015, there was an increased

need to power the pumping stations

and ensure the proper delivery of water

to customers, therefore increasing the

electricity consumption for the year by

17.83 percent.

To manage our energy consumption, we established our Energy Management System and comply with ISO 50001. The system helps us establish procedures in effectively operating our facilities by closely monitoring energy consumption. Our facilities submit weekly and quarterly reports to the Department of Energy.

We focused our efforts on seven of the most energy intensive facilities that we have, namely, LMTP 1 and 2, La Mesa Pump Station, Villamor Pump Station, PAGCOR Station, Pasay Pump Station, and Tondo Sewage Pumping Plant. In doing so, we have generated P4,378,150.29 (583,753.37 kWh) in electricity savings, equivalent to 327,391.94 tonnes CO2e. Even with these savings, there was still an overall increase in electricity consumption due to our continued expansion.

Fuel is a necessary resource in our day-to-day

operations. We carefully track our usage and

try to reduce fuel consumption wherever and

whenever possible, without compromising the

integrity and reliability of our services. Trainings

were conducted to educate drivers on proper fuel

conservation methods and encourage a shift in

their driving attitude and behavior.

Most of Maynilad’s company vehicles have been

replaced with models that run on diesel. This

change was enough to decrease fuel consumption

by 3 percent, higher than the 2 percent target for

2015.

ENERGY CONSUMPTIONG4-EN3, G4-EN5

3% Decrease in fuel

consumption, surpassing

the 2% target

IN GJ PER M PESO REVENUE


0.0850.0740.066

63,342.3054,156.2647,405.96

6,496.795,872.944,614.92

1 2014 GHG values changed from the previous sustainability report because of a change in emission factors from 2014 - 2015.

GHG Emissions 1 IN TONNES CO2E

As an ISO 14064-1:2006 certified company, where we embed the quantification and reporting of our greenhouse gas (GHG) emissions, we take our carbon footprint seriously. This is also in response to SDG 13, where we integrate climate change measures into our operations and improve awareness and institutional capacity on the science and effects of climate change.

Direct emissions (Scope 1) increased by 11 percent. Indirect emissions (Scope 2) increased by 17 percent because of the increased electricity consumption needed to operate pumping stations and ensure water delivery as we expand our services.

Company-owned vehicles are the main sources of Maynilad’s direct emissions. Included in the calculation of Scope 1 are emissions from our company-owned and leased vehicles, internal combustion engines, other equipment such as forklifts, water pumps, generator sets, and grass cutters. Process emissions from the wastewater treatment systems and biosolid processing are also part of this scope.1

Subscribing to ISO 14064, we have developed a GHG inventory, monitoring, and reporting system, as well as verifying and validating our GHG emissions. We continue to enhance our strategies and are constantly on the lookout for new innovations to be more fuel and energy-efficient and sustain the decreasing trend

GHG EMISSIONSG4-22, G4-EN15, G4-EN16, G4-EN18

11% Decrease in direct

emissions due to more efficient fleet vehicles

IN TONNES CO2E PER M LITERS OF WATER PRODUCED


MATERIALS G4-EN1

Most of the materials that we inventory and use are parts for our operations. Key materials remain consistent with Maynilad’s inventory for quick replacements to ensure uninterrupted delivery of services.

Hazardous Waste IN KILOGRAMS

WASTES

Hazardous Waste G4-EN25

We track our hazardous waste by their amount present in storage by the end of the year and is reflected in our manifest. The amount of used bulbs and used batteries decreased because of the hauling done for these wastes in 2015. There was an increase in the amount of used oil because no hauling was conducted for it during the year.

Hazardous wastes are hauled by a DENR-accredited third-party contractor for proper treatment and disposal.

in our GHG intensity. This is even more crucial now that we are moving towards an Energy Management System. In order to decrease our GHG emissions, we have adopted strategies that are discussed in the previous section on energy.

It is Maynilad’s goal to make our operations carbon-neutral. We have installed Variable Frequency Drives (VFDs) and High Efficiency Motors (HEMs), and Pressure Regulated Valves (PRVs); embarked on a Clean Fleet program and

a Green Building program; established District Metered Areas (DMAs); and implemented Time of Use (TOU) and upgraded our appliances and fixtures. To augment our carbon footprint, we embarked on planting and nurturing mangrove plantations in Noveleta, Cavite City, Kawit, and Rosario. In 2015, we planted 30,000 seedlings on top of the 37,000 that were previously planted in 2013 and 2014. We will also be computing our carbon stock in these areas as baseline for future sequestration measurements.

Propagules Planted


Solid Waste IN KILOGRAMS

This year, we are starting to measure our in-house water consumption in our facilities. For 2015, we consumed 58,001 cubic meters with data coming from 10 reporting facilities. In the future, we will continue to report this as an important indicator as a water utility company.

In-house Water Consumption

Responding to SDG 12, we aim for an environmentally-sound management of wastes and reduce their release to the environment to minimize the adverse effects on human health and the ecology. It is also our goal to substantially reduce waste generation through prevention, reduction, recycling, and reuse.

Though a company-wide solid waste management program is in place,

data was only gathered from our ISO 14001-accredited facilities as these are the ones that record the wastes that they generate. Moving forward, we will include data from all Maynilad offices and facilities in reporting our solid waste. The total solid waste generated in 2015 from 21 offices and facilities was 15,262.16 kg, composed of 48 percent biodegradable, 33 percent residuals, and 19 percent are

recyclables.

Solid Waste G4-EN23


We likewise seek to provide our people with enough room for autonomy, opportunities for mastering their craft, and a heightened sense of purpose by articulating, as best as we can, Maynilad’s development goals.

We employ the best talent regardless of ethnicity, religion, and gender. We consider all job applicants equally and fairly throughout the application process and do not allow anyone’s physical disability to cloud our best judgment if a candidate shows great potential to contribute to Maynilad’s sustainability cause and business goals.

On our way to transforming the entire Maynilad workforce culture into one that

prioritizes customer satisfaction above all key result areas, we launched the Higit sa Tubig: Isip, Puso at Gawa (“Beyond Water: Mind, Heart and Action”) program in 2015.

This milestone program engaged over 600 of our employees—including key officers and board directors of two union groups—to embody our heightened focus on customers in both mind and spirit.

Translated into concrete action and results, our latest employee engagement survey conducted in 2014 showed that 93 percent of our employees were highly engaged. Notably, our retention score is also higher than the Philippine norm by a good 13 points.

> CULTIVATING

ENGAGED EMPLOYEES G4-11

A dynamic and highly engaged workforce increases not only productivity but also innovation and our entire triple-bottom line performance. Employee engagement is thus a top concern at Maynilad.

Well aware that our employee engagement and retention scores increase when we empower our own people, we require management to enable employees to meet tangible goals by giving them a challenging but fair amount of responsibility, plus the right tools to succeed.


Employee Statistics G4-9, G4-10, G4-LA12Maynilad posted a 3.7 percent increase of total employees from last year with corresponding increases in both male and female employees. Our workforce is composed of 75 percent male and 25 percent female.

Majority of our employees (75.36 percent) are covered by Collective Bargaining Agreements that are spearheaded by two employees’ associations, namely Maynilad Water and Sewerage Union-Philippine Trade and General Workers’ Organization (MWSU-PTGWO) and Maynilad Water Supervisors Association (MWSA).

NEW HIRES G4-LA1

The decrease in new hires is one result

of our higher retention rate in 2015,

when we posted a turnover rate of only

2.66 percent.

New Hires


Notably, we posted scores that are higher than the national average scores for all survey categories. Our three key employee engagement drivers are Empowerment, Organization Culture and Values, and Goals and Objectives – all of which posted scores higher than the Philippine norm.

With these highly encouraging results, Maynilad then developed action plans and identified areas of both strength and improvement for each of our divisions. We communicated the results of our study and the details of our plans to all executives and managers. Team building

sessions were also held for some targeted divisions which scored relatively lower to improve their engagement results in the next survey. In the coming years, it is our goal to maintain or even improve our engagement score.

Notably, we also increased pay and benefits accordingly to extend our growth equitably among our people who have achieved outstanding marks. We also provided performance incentives, which reached 1.2 percent of the company’s 2014 net income.

Our latest employee survey, conducted in 2014 by global professional services company Tower Watson, sought to assess the true picture of employee engagement at Maynilad.

Aside from establishing benchmarks with selected norms and best practices globally, the survey likewise laid the groundwork for future benchmarking and alignment with other companies in the Metro Pacific group, such as PLDT, the Tollways Group, Cardinal Santos Hospital, Meralco, Smart, and Central Luzon Doctors. A total of 1,898 Maynilad employees were invited to participate in the survey, of which 1,840 participated, or a high participation of 97.05 percent.

Key Findings

The survey revealed a total engagement score for Maynilad of 93 percent — 7 points higher than the Philippine norm and 4 points higher than the global average score.

EMPLOYEE ENGAGEMENT AND DRIVERS

93% Maynilad’s employee

engagement score is 7 points higher than

the Philippine norm


In relation to the company’s drug-free policy, we conduct random drug testing with a compliance of 97 percent. We provide support for employees yielding confirmed positive for drug use through a rehabilitation program in partnership with a DOH rehabilitation and treatment facility.

Our yearly vaccination program, meanwhile, has accumulated savings for our employees and their dependents amounting to P6,141,803 from 2009 to 2015 because of a significant negotiated 48 percent discount of vaccines against the current market price. This preventive initiative against some communicable diseases translated to a 40 percent reduction in flu cases and a 17 percent reduction in cases of pneumonia since 2014.

We also comply with the relevant Occupational Safety and Health (OSH) and Department of Labor and Employment (DOLE) standards and requirement on Pre-employment Evaluation, Annual Physical Examinations, and Return To Work clearance. Our Annual Physical Examination (APE) compliance remains very high at 98.7 percent.

40% Reduction in

cases of flu

RehabilitationProgram

for employees who test positive

98.7% APE compliance rate

Maynilad constantly creates and strengthens employee-focused programs that show the company’s genuine concern for our people’s physical, emotional, and professional well-being. As such, we intensified health awareness and education through our regular medical & dental forums, online health bulletins, videos, health alerts and updates, newsletter contributions, and the new healthy employees exemplars bulletins. These are all preventive actions to ensure a healthy workforce and their dependents.

We likewise enhanced our Health Support Clubs for diabetes and hypertension—two of the leading illnesses among the Philippine workforce demographic. These quarterly club initiatives include lifestyle-related disease condition forums, screening tests, and other nutrition and fitness programs reaching approximately 86 percent of the club’s members. The close monitoring of our employees burdened with these chronic conditions remains a challenge to the health management team as they work double time in intensifying programs to reduce uncontrolled cases of hypertension and diabetes within the workforce.

HEALTH MANAGEMENTG4-LA6


Oral health also remains an integral part of our health programs and services through our Cavity Reduction Program. Oral prophylaxis and treatment resulted in 25 percent of employees whose teeth are completely rehabilitated or with zero caries/cavities.

25% Employee population

with zero cavities

For some of our employees who are at higher risk for hazard exposure, we conduct monitoring and surveillance and provide preventive measures. This year, we had a 100 percent compliance of our employees undergoing screening blood tests for various chemical components. These yielded normal results or within the acceptable limits.

Monitoring, surveillance and prevention

for employees at higher risk for hazard exposure

These concerted efforts have resulted in a marked reduction of HMO utilization among our employees, translating to 6.47 percent in cost savings. There was also a significant reduction of 34.25 percent of our employees being hospitalized for certain diseases or conditions as there was an increase in awareness on preventive medicine. This translates to more outpatient

visits and prevents further complications and subsequent hospitalizations. Our strong partnership with 18 external health providers in promoting health in the workplace have also provided additional cost savings to Maynilad, amounting to P3,196,203.75 for risk reduction screening tests and services.A list of some of our Health Management activities and benefits are found in Annex J.

34.25% Reduction in employee hospitalization


Maynilad achieved a productivity index (manpower per thousand connections ratio) of 1.70, an improvement from our 2014 index of 1.74. This surpassed our base yearly target of 2.1.

Given this high efficiency index, we seek to further encourage innovation among our workforce through the Innofest Program, an annual competition that showcases the best and brightest innovative ideas of Maynilad employees. It is also our platform for recognizing and rewarding brilliant homegrown concepts.

In 2015, we were heartened to receive 53 entries from over 100 employees. Some of the top ideas have already been funded and implemented by the company. The winning FlexStrap idea, for instance, has already been patented and scheduled for field testing. The Power Tools for Zone Specialists concept, meanwhile, has already been road-tested, with tablets awaiting delivery for the identified zone specialists. Other winning entries for the year include the Decommissioned Pipe as Underground Reservoir concept, as well as the Solar Panel for Power Generation in La Mesa concept, whose construction started in March 2016.

Increasing Workplace Efficiency

Encouraging Innovation

ENSURING A CULTURE OF SAFETY

The safety of Maynilad’s employees is of utmost importance to the company’s top management.

This year, we are proud to have logged 3,847,628 Man Hour No Loss Time Accident (MHNLTA). With this, we have accumulated 17,371,708 MHNLTA since our last reported incident in November 2011. We have conducted 573 project safety inspections, 77 facilities safety inspections, 66 work environment measurements, and 60 emergency preparedness drills. All of which contributed to a culture of safety in the workplace.

We have also organized a Maynilad Rescue Team for disaster response following our established Systems Procedures for Pre-disaster, Response, Incident, and Recovery, and Maynilad Typhoon and Rainfall Advisory.

These efforts have been recognized with the Award for Excellence (for MHNLTA outstanding record) from the Safety Organization of the Philippines, Inc. (SOPI); the Workplace Advocates on Safety in the Philippines Inc.’s (WASPI) Safety and Health Excellence Award; and the Fire Whiz Champion prize at the National Fire Brigade Olympics.

17,371,708 Man Hour No

Loss Time Accident until the end of 2015


Savings from Internal Trainers

Maynilad posted a 106 percent increase in savings by strengthening our thrust to develop internal trainers through increasing our employees’ capacity. We saved 40 percent of what we would have spent if we had hired external trainers. So far, a total of 28 employees (from 18 in 2014) have trained in eight courses as trainers (they need at least three courses in their respective fields to become an internal trainer). The types of trainings include core, leadership, technical, and non-negotiable IMS courses. We plan to double the number of trainers by next year. The total number of training hours conducted by our internal trainers are found in Annex K.

Through this, we envision to further enhance the culture of efficiency and innovation in Maynilad.

Savings from InternalTrainers IN MILLION PESOS

By growing a more inspiring, visible, and accessible brand of leadership, we seek to motivate Maynilad employees to fully realize, and even exceed, their personal career potential.

Our training philosophy is to provide employees with developmental programs that are anchored on the company’s official competency framework. This details the knowledge, skills, and attitudes required of each employee to enable them to deliver our business plans throughout Maynilad’s concession term.

Maynilad has four areas of strategic focus for competency development. First, we prioritize programs that will leave a positive impact on Maynilad’s business efficiency, service obligation, and business development targets. Second, we produce internal trainers or coaches who can create and provide developmental programs for their teams. Third, we implement a senior-level management program to ensure leadership succession. Fourth, we report return on investments and use them as leverage to justify an appropriate budget to support the company’s training needs.

Our training hours increased by 8 percent, from 48,448 hours in 2014 to 52,162 hours in 2015. Our penetration rate, meanwhile, increased by 2 percent, from 1,467 employees in 2014 to 1,496 employees in 2015.

A list of our training programs is found in Annex K.

TRAINING AND DEVELOPMENT G4-LA9

52,162 Training hours in

2015, an 8% increase from 2014


We fully support the UN’s SDG 8, which is the promotion of decent work for all and equitable economic growth.

We believe that inclusive growth enables lasting development, so we seek to transform our business into an engine for the growth not only of our business partners and shareholders, but also of the larger community where we operate.

We accomplish this primarily by ensuring that our business remains viable and profitable, so we can continue tocontribute to public funds and enlarge

the number of employees and suppliers who stand to benefit from our success.

In addition, we invest in corporate social responsibility (CSR) programs that promote market inclusivity and shared value creation. We also support philanthropic projects that improve the health and well-being of our immediate communities.

Across all these programs, our Finance Department ably assists the company in allocating budgets, promptly processing payments, compensating our employees, and remitting taxes to the government.

ECONOMIC VALUE DISTRIBUTION G4-EC1

> EXTENDING MARKET INCLUSIVITY,

FOSTERING SOCIAL INCLUSION

It is in Maynilad’s best interest to empower all our stakeholders by strengthening our mechanisms for social inclusion. We therefore constantly improve our services and widen the positive impact of our business operations by bringing in more communities and business partners into the Maynilad community.

As we expand our geographic footprint, we strive to enrich the lives of more people, especially those who still have limited access to clean water and wastewater services, and those who are not yet part of the economic mainstream.


Economic Value Distributed in 2015 IN MILLION PESOS

We reinvested the remaining 52 percent or P9.82 billion of our consolidated revenue to our company, not accounting dividends and service concession fees.

For more information about our financial performance, please refer to our audited financial statements found in our 2015 Annual Report.

2015 FUND MANAGEMENT HIGHLIGHTS G4-9

We generated P18.92 billion in revenues, including receipts from other fees and services, in 2015. This represents a 3.8 percent increase in total revenues compared to 2014.

Using GRI standards in accounting for our direct economic contribution to society, we disbursed around P9.11 billion, or 48 percent of our revenues, as payments or contributions to our key stakeholder groups.

We paid 26 percent, or P4.96 billion, to our suppliers. About 10 percent, or P1.98 billion, was paid to loan providers as payment for interests, while disbursements to our shareholders are based on an equitable profit-sharing scheme determined by the Board. We released another 10 percent to cover employee salaries and benefits.

Meanwhile, our payments to the government totaled P280.14 million, 18 percent higher than in 2014. This includes disbursements for taxes, licenses and regulatory costs. Our direct local community investments, on the other hand, amounted to P50.75 million.

Dividends and service concession payables were at P2.00 billion and P1.26 billion, respectively.

P9.11 B or 48% of our

revenues, as direct contribution to society


Pag-asa sa Patubig Partnership

Maynilad piloted this novel bulk water scheme in Magtalhai and Dinamita, Bacoor City, in collaboration with the Bacoor LGU and small-scale water provider, Tubig Pag-asa. The program ended the reliance of 250 informal-settler families on water rationing, providing up to P300 in monthly savings per household. One unique feature of this initiative is the establishment of a community fund to finance other development initiatives that complement the program and sustain the partnership.

ENGAGING SOCIETY G4-SO2

We welcome all opportunities to reach more unserved and marginalized markets, knowing fully well that we have everything to gain by working for a more prosperous population in our fields of operations and influence.

Beyond extending lower rates to poor communities to provide access to clean water for all, we also develop innovative programs that strengthen pathways toward social inclusion.

We have given back to our immediate communities by investing a total of P14,378,830.25 in various CSR and social development programs in 2015. Correspondingly, our employees clocked in a total of 3,008 hours of work to breathe life into these programs. Some of our activities are highlighted here.


Food Always in the Home (FAITH) Gardens

In support of the government’s home-food security program, Maynilad established the FAITH Gardens program to promote better nutrition and greater appreciation for organic farming in Parañaque City. The team nurtured and tended four FAITH gardens in low-income communities in Barangay San Dionisio, Barangay San Isidro, Barangay BF, and Barangay Don Galo. Aside from sharing technical skills, Maynilad also installed a drip irrigation system and donated four overhead water tanks.

Habing Buhay

This was established as a livelihood program for the Laguna de Bay community, particularly those who live around the Maynilad facility. Volunteers were tapped to gather the water lilies that clogged the plant’s intake area, affecting raw-water quality. In partnership with the Villar Foundation, the program then taught the volunteers to use the lilies for weaving baskets and mats that are now used as Maynilad’s corporate gifts and tokens. The program created a new source of livelihood for poor families, while simultaneously fostering strong community ties and improving the quality of water that enter our Putatan plant.


GinhaWASH - Bidet

To promote sanitation and proper hygiene practices among public institutions, Maynilad installed 777 toilet sprays in five hospitals, 24 health centers, 20 public schools, and 14 barangay halls. These public centers represent key accounts where health and sanitation need strengthening. Aside from providing proper sanitation tools, the effort also reinforces ideal hygienic practices that employees and patrons of these establishments can share and sustain in their own households.

International Seminar on Water: Nature’s Precious Gift

Together with the United Nations Educational, Scientific and Cultural Organization (UNESCO), University of the Philippines National Institute for Science and Mathematics Education Development (UP-NISMED), and the Foundation for the Promotion of Science and Mathematics Education and Research, Inc. (FPSMER), we spearheaded a seminar to enhance the usability and adaptability of Maynilad’s 15-module teaching-learning resource package on water. The package equips teachers with new strategies in teaching the importance of water in the context of community development and environmental sustainability. Local and international participants explored how the modules could be integrated into non-formal education activities in their respective countries. They were also given a tour of Maynilad’s facilities to assist them in using particular modules that tackle water quality, wastewater treatment, and water resource conservation.


Sining Ipo

To further livelihood opportunities for Dumagat artisans within the Ipo Dam Watershed area, Maynilad developed a mentorship program under poet and folk artist Tata Raul Funilas. This enabled Dumagat sculptors to create new designs of the traditional strategy game sungka which they sold and later showcased at the Landas exhibit in SM Megamall. Aside from supporting the indigenous group while promoting water conservation at the watershed, the program was also able to raise Php 40,000 for the Sining Ipo scholarship fund. The additional funds enabled 27 Dumagat schoolchildren and one college scholar to continue their education in 2016.

Outreach and Public Service

During the Papal Visit in January 2015, 60 Maynilad employees volunteered to man 15 water stations and deployed 11 water tankers, stationed at main thoroughfares leading to Rizal Park. We also desludged 22 septic tanks and declogged sewer lines around Quirino Grandstand, and assisted in the clean-up and disposal of waste from the hundreds of portalets in the park. Around six million faithfuls in Luneta were served by our volunteers. We also allocated 90,000 units of bottled water for the Manila, Leyte, and Tacloban legs of the Pope’s visit.


10,000 jugs12,567 liters14 cubic metersWater in jugs, bottles, and tanks distributed to various fire-hit areas in 2015

Disaster Relief

Maynilad distributed more than 10,000 5-gallon jugs, 12,567 liters of bottled water, and around 14 cubic meters of tankered water to various fire-hit areas, in partnership with the Alagang Kapatid Foundation, Inc. (AKFI) and the PLDT-Smart Foundation (PSF).

This allowed the Business Areas and our other community frontliners to assist LGUs in helping over 2,200 fire-displaced families in Parañaque, Manila, Caloocan, Valenzuela, Pasay, and Quezon City.

In addition, Maynilad provided water to some 3,400 families from different provinces affected by Typhoon Lando. This translates to over 6,000 units of varied-sized containers (1-liter bottles, 1-gallon and 5-gallon jugs) brought to Isabela, Aurora, Nueva Ecija, Benguet, Pangasinan, Pampanga, and Quezon provinces – areas outside of our concession areas. These relief activities are a testament to our Love of Country as a central principle that we hold. These efforts were done in partnership with AKFI, the DSWD-National Resource and Operation Center, the Philex Group Foundation, Inc., the Philippine Disaster Recovery Foundation, and the NGO International Citizen Service. We also partnered with MWSS to bring 2,000 pieces of galvanized iron roofing sheets and relief water to families rendered homeless by the typhoon in General Nakar, Quezon Province. Moreover, we provided bottled water to around 1,000 needy families in Samar and Leyte, in collaboration with AKFI. All in all, we set aside P2,481,406 in aid for 2015.


For this reporting year, we hosted study tours for 21 schools, three international organizations, and two water districts, reaching a total of 750 participants. We sent 346 Maynilad employees to relevant trainings and conferences, and partnered with four local and international operators in twinning programs.

Maynilad Water Academy

Established on October 6, 2011, the Maynilad Water Academy is one of our main instruments for sharing knowledge and expertise in water developments and innovations. In partnership with various groups, we design training programs that advance new water technologies through benchmarking projects, forums, and seminars.

A heightened recognition of the importance of our water resources and its improved management should not be confined within the walls of our company. Through the Water Academy, we go beyond our borders to extend our knowledge to a wider public while advancing institutional cooperation both here and abroad.


Daloy Dunong Water Education Drive 2015

This award-winning water education program that teaches elementary and high school students the importance of water, good hygiene, and environmental responsibility, engaged more than 18,750 students from 52 schools this year. Since its inception in 2012, Daloy Dunong has visited more than 200 schools and has been conducted in more than 40 out-of-campus engagements, converting about 55,000 kids into champions for water, health, and the environment as “Water Warriors.”

Tahong Cooperative / Mandaragat Games

A donation of P400,000 was turned over to the Mamamayan Para sa Lambat at Dagat Cooperative in Bacoor, Cavite as an incentive for their achievements in promoting the shellfish industry. The turnover ceremony was attended by Bacoor Mayor Strike Revilla, Rep. Lani Revilla, barangay officials, and fisherfolk groups. The Bacooreñong Mandaragat Games was conceptualized with the theme “Mga Responsable at Makakalikasang Mandaragat, tungo sa Mala-Paraisong Pangisdaan.” Ten barangays competed in eight games, including boat races and water palosebo. There was also a mussel and oyster cook-off for the fishermen’s wives, who prepared unique delicacies like tahong ice cream and kinilaw na tahong. Maynilad also donated a brand new motorized banca as a grand raffle prize.


Department of Water Supply and Sewerage (DWSS) and Lekhnath Small Town Water Supply and Sanitation User Committee (LSTWSSUC), Nepal

Our capacity-building programs on NRW with various water organizations in Nepal have resulted in a host of benefits for our partner communities in the country.

On a national level, we helped transform the Central Human Resource Development Unit (CHRDU) of the DWSS into the National Water Supply and Sanitation Training Center (NWSSTC). The Center then established Quality Management Systems and conducted its first WASH Expo in 2015. The Expo successfully disseminated information and innovative technological options on water and sanitation in the country.

On a community level, our partnership with LSTWSSUC has been able to reduce NRW from 46 percent to 36 percent in a period of two years, thereby recovering around 42,500 cu.m. of treated water.From an open system, moreover, LSTWSSUC now has 10 DMAs that are monitored daily.

This twinning program also focused on the prompt repair of leaks and introduced a new meter calibration bench to prevent further water and commercial loses. It also brought about better water sampling methods and facilities, including protocols for chlorine dosing.

Recognizing the importance of regular testing for water quality, LSTWSSUC also started disseminating knowledge on better water management practices to the general Nepali public through orientations and media releases.

A list of activities conducted by the Water Academy is found in Annex L.

TWINNING PROGRAMS G4-EC8

Metro Iloilo Water District, Iloilo City

We conducted trainings on NRW and water treatment plant operations. The key outputs of the trainings include the establishment of district metering areas (DMAs) and improved water quality processes in Iloilo.

Cagayan de Oro Water District, Cagayan de Oro City

We conducted a series of trainings on Geographical Information Systems (GIS), basic hydraulics, pressure management, water meter management, and hydraulic modeling in Cagayan de Oro City.


The Tap Awards are awarded to our suppliers and motivate them towards excellence. For 2015, 11 categories were honoured for 2014 performance: Electro-Mechanical Products and Services, General Merchandise, IT-related Products and Services, Marketing & Promotional Products and Services, Water and Wastewater Treatment Chemicals, Monitoring & Control Equipment, Other Products & Services for Quality Assurance, Preventive and Maintenance Supplies, Sole Distributors, Pipes and Fittings, Operational and Maintenance, and General Service Providers.

To achieve this end, we continue to tap Dun and Bradstreet to monitor our compliance to pertinent laws. We likewise follow fair and ethical guidelines in choosing Maynilad’s vendors and contractors.

All our accredited vendors undergo an annual third-party screening

and accreditation program to check for financial capacities. Technical, environment, safety, and health measures are done in-house. High standards pertaining to workmanship, performance, consistency of records, adherence to timelines, and compliance to ISO requirements are also constantly upheld in Maynilad. For contractors, we engage a third-party consultant to evaluate their management systems capability. Moving forward, we will conduct this in-house, along with the financial and technical aspects. There is also an annual technical and financial audit process done to validate the documents submitted to us.

Moving forward, our annual performance evaluation of vendors and contractors will be held quarterly instead of annually to better strengthen monitoring and compliance to company standards.

Security Training G4-HR7

311 security personnel have completed their required training under the Private Security Agency Law. They have undergone 140 hours of trainings on In-service Enhancement Security, Refresher Training Course, and Basic Security Supervisory Course. Annex M contains a complete list of trainings that our security personnel went through.

ENGAGING OUR SUPPLIERS ANDCONTRACTORS

G4-12, G4-EC9

As of the end of 2015, Maynilad had a total of 174 accredited vendors and 76 contractors. Our vendors provide office supplies, equipment, and third-party logistical services while contractors provide various infrastructure and maintenance services.

We further contribute to the local economy by choosing, whenever possible, local suppliers over their foreign counterparts. We acquired 68.43 percent of our total supplies from 723 local suppliers, representing 92.93 percent of our total number of suppliers, and generated 17,455 safe man-hours of employment in engaging our contractors. In engaging our contractors, moreover, we were able to generate 17,455 safe man-hours of employment.

We leverage on our authority and position as the largest water services provider in the country to influence our partners and suppliers toward improved productivity and heightened sustainability practices. There is a quarterly general assembly for Maynilad to update them on policies and upcoming projects as well as a quarterly performance evaluation. If the contractor fails the evaluation, they are suspended for being invited to future biddings of three or six months. A first-ever contractor’s handbook was also issued to them to guide how it is to do business with Maynilad.


There are nine select individuals making up Maynilad’s Board of Directors. There are eight male and one female; seven Filipinos and two Japanese. Together, they ensure that Maynilad strictly adheres to the highest ethical standards and the unceasing practice of fairness, transparency, and accountability. This mandate extends to key policies and for all processes and aspects of operations. The Board is duty-bound to ensure that the Company’s direction aligns with its vision-mission and the best interests of its shareholders. It is within the Board’s function to judiciously steer, monitor, and evaluate Management performance.

Manuel V. PangilinanChairman2007 to present

Manabu SugawaraDirector2014 to present

Atty. Marilyn Victorio-AquinoDirector2012 to present

Kensuke TatsukawaDirector2013 to present

Randolph T. EstrelladoDirector2007 to present

OUR BOARD OF DIRECTORS G4-35, G4-LA12

EFFECTIVE GOVERNANCE FUNCTIONS

> STRENGTHENING

A commitment to nation-building and a vision of competing within the region in accordance with our company values drive our leadership. Steering Maynilad to be the top water and wastewater service provider in the Philippines and in the broader Asia-Pacific is a leadership team that is steadfast in its principles and skilled in its craft. We take pride in our Board and Management Team who have enabled our company to consistently meet performance targets for almost a decade.

Jose Ma. K. LimDirector2007 to present

Jorge A. ConsunjiDirector2007 to present

Victorico P. VargasDirectorAugust 2010 to present

Isidro A. ConsunjiVice Chairman2007 to present

CORPORATE GOVERNANCE


AVOIDANCE OFCONFLICT OF INTEREST G4-41

DISCLOSURE AND TRANSPARENCY

Any person for reason of engagement in a competing business with or against the Corporation or any of its subsidiaries or affiliates is deemed unqualified to be a member of the Board of Directors. Adoption of guidelines on the number of dictators its members can hold in stock and the Board may consider non-stock corporations. The majority should evaluate a director’s capacity to diligently and efficiently perform his/her duties and responsibilities. The CEO and other executives may be covered by a lower indicative limit for membership in other Boards. The same applies to independent or non-executive directors serving as full-time executives in other corporations. Integrity in performance and to responsibilities as a member of the Maynilad Board should be maintained.

Maynilad recognizes transparency as the essence of corporate governance. Hence, the company believes that it is the key to gain and maintain the trust of the Management, stockholders, and the different people involved. Any material information about Maynilad is reported to MPIC, DMCI, Marubeni, MWSS, and other shareholders. It is the duty of everyone at Maynilad to report a violation on our Code of Business Ethics. Risk measures must be undertaken in a timely manner. Throughout the reporting process, due diligence and confidentially are strictly observed.

COMPOSITION AND SELECTION OF THE BOARD G4-40 BOARD MEETINGS

The Board of Directors is composed of nine members carefully vetted against a strict criterion by the Nomination Committee and duly elected at the Annual Stockholder’s meeting. To safeguard equitable decision-making, Board membership is either executive or non-executive. Non-executive directors have expertise and diverse experience commensurate to executive members and are thus able to fully participate during Board deliberations.

The Board of Directors convenes in a minimum of six regular meetings annually. The Board may also gather for a special meeting upon the call of the Chairman of the Board or upon request of the majority of directors. Where the Chairman is absent or unavailable, the President serves in his stead. The Maynilad’s Board of Directors’ attendance to regular and special meetings is required and duly recorded.


Victorico P. Vargas President and Chief Executive Officer

Herbert M Consunji Chief Operating Officer

Randolph T. Estrellado Chief Finance Officer

Christopher J. Lichauco Head, Business Area Operations

John Patrick C. Gregorio Head, Commercial & Marketing

Antonio F. Garcia Head, Wastewater Management

Atty. Lourdes Marivic P. Espiritu Head, Legal & Regulatory Affairs

Irineo L. Dimaano Head, Central Non-Revenue Water

Francisco A. Arellano Head, Corporate Quality, Environment, Safety & Health

Yolanda C. Lucas Head, Program Management

Levi F. Diestro Head, Human Resources

Marcos D. de Jesus Head, Technical Services

Ronaldo C. Padua Head, Water Supply Operations

Arturo Celso D. Baranda Head, Corporate Logistics

Francisco C. Castillo Head, Information Technology Services

OUR MANAGEMENT TEAMG4-36

Maynilad’s Top Management Team is composed of trained and experienced professionals working together for the company’s inclusive growth. Clear, respective responsibilities and accountabilities are assigned to them by the Board of Directors.


The Committee is responsible for determining the most appropriate and equitable remuneration of corporate officers and directors. The Committee evaluates, reviews and makes recommendations based on accepted best practices. It follows a formal and transparent process to uphold Maynilad’s values and the company’s prevailing business strategy and corporate environment.

The Nominations Committee reviews all candidates for positions in our Board of Directors, including all candidates to positions that specifically warrant the Board’s approval. A minimum of three members of the committee reviews and evaluates nominees for qualification, and ensures valid, fair, and effective appointments.

COMPENSATIONAND REMUNERATIONCOMMITTEE

NOMINATIONCOMMITTEE

> GOVERNANCE STRUCTURE AND COMMITTEES G4-34, G4-40

Maynilad’s Governing Committees support our Board of Directors in the implementation of their functions and responsibilities. They design and develop frameworks that aid the Board in meeting their objectives and resolving issues and concerns, particularly those pertaining to corporate governance practices and measures.

The Executive Committee are given particular authorities by the Board of Directors through a majority vote. When needed urgently and the Board is not in session, the Committee may decide on key matters affecting management and corporate affairs but in a restricted capacity.

The Risk and Audit Committee supports the Board through checks and balances and independent reviews. These help in strategically developing Maynilad’s policies on governance, risk management, financial reporting and audits, information technology, and security, in full compliance with internal and external applicable laws, rules and regulations.

EXECUTIVECOMMITTEE

RISK AND AUDITCOMMITTEE

141

HOW WEAPPROACH THE FUTURE


Against a demanding and highly time-bound operating environment, we are now sharpening our tools and refining our overall business model from 2016 to 2018.

From the BV and NRW focus of our current business approach, we are revitalizing our strategy to one that prioritizes our comprehensive service obligations. We are also enlarging our customer-centric culture to a wider stakeholder-centric model. From having decentralized units, we are moving toward a more cohesive organization.

This shift in focus to more comprehensive,

larger, and stricter targets is necessary if we are to meet our obligations with our regulators and customers. Moreover, increasing our company value target will correspondingly increase the value of our stock, thereby strengthening our prospects of going public and making us more lucrative for both new investors and long-standing partners.

Our ultimate goal of reaching a value of $2.2 billion, while daunting, can be achieved if we harmonize our strategies in three key areas: operational efficiency, business growth, and organization and people development.

THREE-YEARROADMAP

Emboldened by the advances we have already made in 2015, we are now gearing up for a highly challenging future for Maynilad.

We have already achieved significant headway particularly in increasing our coverage and the number of our connections while simultaneously decreasing NRW. For our investors and the millions of Filipinos who depend on us, however, our ability to meet our service obligations is the sole benchmark of our success.

> THE WAY AHEAD


BUSINESS GROWTH

Moreover, we cannot just stay within our

concession area if we are to further grow

Maynilad. It is crucial that we advance our

new stakeholder-focused brand of long-

term growth to more cities and provinces

outside of Manila, particularly Bulacan,

Cavite, Laguna, and Bicol, where we have

already made initial but solid advances.

We must also expand our collaborative

linkages with other members in our larger

corporate family, such as Metro Pacific

Water Investments Corporation. We must

also be bold, innovative, and look for ways

of developing and marketing new products

and services that are aligned with our

vision to become a total water solutions

company.

OPERATIONALEFFICIENCY

Beyond meeting our BV, NRW and

income targets, we wish to stress again

that we must first and foremost deliver on

our service-obligation targets.

As such, we will be implementing

a three-year catch-up plan to meet

our disbursement targets and major

obligations. We expect annual CAPEX

disbursement to average P20-22 billion

beginning in 2018.

It is paramount that we fulfil all running

programs as scheduled in this catch-up

plan. Delayed CAPEX disbursements will

not only negatively impact on our overall

value as a company, it will also make it

harder for us to meet our service duties in

the coming years.

We therefore need to enhance the

capacity of our entire organization to

execute larger and more complex

undertakings.

This will involve changes, particularly

in upgrading both the number of our

personnel and their ability to respond to

complicated issues in a timely manner.

All these will likewise entail that we

conduct a comprehensive risk assessment

exercise and agree with the Regulating

Office on clear audit guidelines.

To further stress how crucial it is to

meet our service obligations, we are now

planning to introduce a new employee

incentive scheme. Our current practice,

based primarily on meeting income

targets, will be enhanced to include

meeting service obligation targets and

managing disallowances as references for

future incentives.


While we will be enforcing stricter

deadlines and a more challenging

workplace set-up, our people can also

expect greater growth opportunities

through more learning and development

programs.

More importantly, our new dual-career

ladder will enable us to dream bigger both

for the entire company and for our own

personal careers, as we are all given wider

room to aspire for promotion to business

and technical leadership positions.

With all these dynamic shifts and

exciting changes, it becomes even more

imperative for each and every person in

our company to live out our corporate

values through heightened professionalism

and stricter ethics.

We will be re-presenting our values in

terms of behaviors that our employees

need to demonstrate, thereby making

it easier for everyone in Maynilad to

incorporate our core values in our day-to-

day activities.

vIndeed, we are now digging deeper

and working harder to go beyond water

provision and into a full-line water

solutions company. With your unwavering

support of our new brand’s bigger and

loftier goals, we are confident that

Maynilad will live down history as one

of the companies that all Filipinos can be

truly proud to call their own.

HIGITSA TUBIG

Growing our company from within,

starting with our organizational set-up,

is an integral aspect of our three-year

roadmap.

One key strategy toward this goal is

our heightened focus on reinforcing

our project management approach.

The absence of project managers has

hampered and limited our capability to

breathe life into large-scale and complex

blueprints in the past.

In line with this change, we will strengthen

our performance management system by

introducing a balanced scorecard. This

will be soft-launched in 2016 to cover only

TMT but it will be fully rolled-out to all

employees starting 2017.

We will also be creating an Integrated

Asset Management Division, a

Government Relations Unit with LGU-BA

conduit posts, a Systems, Processes and

Methods Unit, and a group to oversee our

business expansion drives, particularly for

Bulacan and Cavite.

Furthermore, we will be strengthening

our Internal Audit and moving it under

the President’s office. All procurement

and contracts management work will be

centralized in Logistics, which will also

be moved directly under the Office of the

President; as a result, administration work

will be transferred to our HR Division.

Our Water Academy, meanwhile, will

be transferred to our Commercial and

Marketing Division to sharpen its focus

on shared-value advocacies and CSR

functions.

All these are being done to improve

operational efficiencies, and enhance

our overall human resource competency

framework, which we are fully integrating

into our HR systems.

OPERATIONALAND PEOPLE DEVELOPMENT


ANNEX B. Surface Water Quality Results These are results from our March 2015 sampling.

Bagong Silang Phase 10 Active

Poblacion Active

Pandawan Active

ASV - Deepwell 4 St. Jude Active

Georosville Active With Surface Water, Water Quality Issue

New Crescini Active With Surface Water

ASV - Deepwell 3 Active

Rolling Meadows 2 For Decom Due to high iron and manganese content, for termination of power supply

Filinvest 1 Pump 1 For Decom Due to bad quality and presence of sediments

Goodwill For Decom Still in good condition, but waiting for recommendation for decommissioning

Rainbow For Decom Due to manganese content

Mutual 1 For Decom With electric power reserved for EWT use c/o SPM

Moveleta Well Fields For Decom With electric power, composed of seven wells

Josephine For Decom With electric power, for recommendation to termination

Malagasang 2D Standby

Molino Standby

J. Felipe Standby

Rivero Standby

Sonera Deepwell 1 Genset Standby

New NWF #4 Standby

> REPORT ANNEXES

Deepwell

ANNEX A. Status of Deep Wells

Status DO

Fecal Coliform


NCR (Maynilad) 8,377,582 99%

Manila 1,480,549 99%

Quezon City 2,009,982 100%

Caloocan 1,590,094 100%

Malabon 340,431 100%

Navotas 213,033 80%

Valenzuela 612,492 100%

Las Piñas 600,370 100%

Makati 54,885 100%

Muntinlupa 442,258 88%

Parañaque 650,797 100%

Pasay City 382,690 100%

CAVITE (Maynilad) 790,384 61%

Bacoor 336,802 55%

Cavite City 97,364 99%

Imus 215,961 60%

Kawit 54,739 61%

Noveleta 29,851 62%

Rosario 55,667 62%

OVERALL - Maynilad 9,167,966 93.7%

3,972,572 47%

533,603 36%

1,360,028 68%

1,116,051 70%

160,570 47%

40,351 19%

244,208 40%

290,765 48%

16,404 30%

3,660 1%

29,363 5%

177,570 46%

81,855 10%

50,992 15%

24,420 25%

2,993 1%

140 0%

3,280 11%

30 0%

4,054,427 44%

City/Municipalityfor the Year 2015

ANNEX C. Water and Sanitation Coverage per Municipality

Water

Population Served

Population Served

PercentCoverage

PercentCoverage

Sanitation, Base Year 2012pH

TSS


North Area: 2015 Primary Pipelaying

Sumag River Diversion Project Probabilistic Seismic Hazard Assessment (PSHA) of various Maynilad facilities

South Septage Treatment Plant

South Area: 2015 Primary Pipelaying

Umiray Angat Transbasin Flood management study of various Maynilad facilities

Parañaque Sewer Network

Ammonia Mitigation Tigbe Road Intake Line Geotechnical investigation for site response analysis of Pagcor Pumping Station

Alazap Booster Tigbe Road Discharge Line Technical study and simulation of the brine discharge at Maynilad-Putatan Water Treatment Plant

South Maintenance Workshop

Engineering design through cost curves

Malabon-Navotas Office Development guidelines, standards and performance specifications for the design of wastewater facilities

Primary Pipelaying (Quirino, Commonwealth)

Feasibility study of constructing a desalination plant utilizing Manila bay as raw water source

In-line Booster Project supervision for Apalit STP technology project

Daang Hari Bridge Crossing Construction supervision of six (6) water distribution system of private subdivision in the north area.

Procurement, design and construction of various water and waste water facilities.

Project supervision for Philhydro projects.

Validation and review of cost estimates of proposed STP projects under Business Solution and Sales (CLDH and Delos Santos Hospitals).

2015 Big Ticket and Completed Projects

ANNEX D. List of Major Projects for Water Delivery

Special Projects

Consultancy Projects

MWWP Projects

Total Coliform

Color (ACU)

ANNEX E. Treated Water Quality Results

These are results from our December 2015 sampling. During this month, there were no objectionable odors or tastes in the result.


Turbidity (NTU)

pH

Caloocan 29,723 48,729 6,059 75,297

Las Piñas 2,119 1,545 3,086 32,888

Makati 1,723 92 84 118

Malabon 7,355 4,807 3,337 8,551

Manila 10,486 18,635 2,483 42,085

Muntinlupa 274 33 77 135

Navotas 261 1,917 3,450 444

Paranaque 1,240 549 554 1,663

Pasay 669 311 260 21,170

Quezon City 29,972 31,910 103,625 17,763

Valenzuela 11,073 6,578 12,994 1,916

CAVITE

Bacoor 661 11 2 6,883

Imus 427 6 12 103

Rosario 5 - - -

Cavite City 3,438 245 129 141

Noveleta 573 - - -

Kawit 3 - - 22

TOTAL 100,002 115,368 136,152 209,179

ANNEX G. Accounts Offered with Sanitation Services

20132012 20152014Total Number of Accounts Offered per Municipality

2007 2 1 3

2009 1 2 2 5

2010 0

2011 1 1 1 1 4

2012 14 13 13 40

2013 11 11 11 1 1 35

2014 14 7 7 1 29

2015 14 15 15 44

TOTAL 57 50 49 2 1 1 150

ANNEX F. List of ISO Certificates G4-15

ISO 9001

OHSAS 18001

ISO20000

ISO 14001

ISO 17025

ISO 14064

TOTAL


Tondo Sewage PP Grit Removal & Aeration System

432,000 Manila Bay *Turned-over facility from MWSS

Dagat-dagatan STP Waste Stabilization Pond (Conventional Lagoon System)

26,000 Maypajo Creek *Turned-over facility from MWSS; Rehabililtated in 2004-2005

Alabang STP Conventional Activated Sludge

10,000 Pasong Diablo Creek *Turned-over facility from AAVA in 2009; Rehabilitated in 2012

Congressional STP Sequencing Batch Reactor

567 Culiat Creek 2011

Baesa STP STM Aerotor 390 Dario Creek 2011

Legal STP Sequencing Batch Reactor

409 Dario Creek 2012

Grant STP Sequencing Batch Reactor

621 Dario Creek 2012

San Antonio STP Moving Bed Bioreactor 3,310 San Francisco River 2013

Paltok STP Moving Bed Bioreactor 4,900 Maribolo Creek 2013

Tandang Sora STP STM Aerotor 1,200 Dario Creek 2013

Del Monte STP Moving Bed Bioreactor 3,510 San Francisco River 2013

Project 7 STP Sequencing Batch Reactor

2,400 Culiat Creek 2013

Paco STP Moving Bed Bioreactor 410 Estero de Santibañez 2013

Tatalon STP Sequencing Batch Reactor

8,100 San Juan River 2013

Samson STP STM Aerotor 1,900 San Francisco River 2015

Bahay Toro STP Conventional Activated Sludge

13,400 Dario Creek 2014

Bagbag STP Sequencing Batch Reactor 10,400 Dario Creek 2014

Talayan STP Conventional Activated Sludge 15,400 San Juan River 2015

Kapiligan STP Moving Bed Bioreactor 6,000 San Juan River 2015

ANNEX H. List of STPs and their Receiving Water Bodies G4-EN26

Capacity (cu.m./day)

Technology Operational Period

Receiving Body of Water

Wastewater Facility (STP)

Bacoor 336,802 55% 50,992 15%

Cavite City 97,364 99% 24,420 25%

Imus 215,961 60% 2,993 1%

Kawit 54,739 61% 140 0%

Noveleta 29,851 62% 3,280 11%

Rosario 55,667 62% 30 0%

OVERALL - Maynilad 9,167,966 93.7% 4,054,427 44%

Sanitation CoverageWater CoverageLocation

ANNEX I. Water Quality of Influent and Effluent

These results are taken from our December 2015 sampling data.

Dagat-dagatan STP Dewatering (Screw Press) 450

Project 7 STP Dewatering 240

Capacity (cu.m./day)

TechnologyWastewater Facility (STP)

pH

BOD


TSS

Average Discount 31.83% 28.65% 53.52% 56.69% 51.21% 53.67% 57.65%

Total number of enrolled employees & dependents

1275 656 1407 1752 1853 1665 1838

TOTAL COST SAVINGS TO EMPLOYEES

466,261.75 266,231.50 828,650.00 1,113,755.00 969,867.00 803,233.50 1,693,804.75

20102009 2012 2014 20152011 2013Total VaccinationSavings

Dental Treatment 1,762 (95.45%) 1,632 (86%)

Oral Prophylaxis 1,358 (73.56%) 1,430 (75%)

Number of Rehabilitated 386 (20%) 490 (25.78%)

20152014Oral Cavity Reduction Program

Outpatient 1508 (16,583,149.88) 1532 (17,809,341.64)

Inpatient 254 (14,311,604.60) 167 (11,014,921.61)

Number of blood letting activities 6 6

Number of volunteers 189 226

Number of successful donors 139 178

Volume of blood collected 62,500 cc 80.100 cc

Employee recipients 4 7

Company-wide Voluntary Blood Donation Program

ANNEX J. Health Management Activities and Benefits

2014 2015

Jan-Dec 2014Total Number of Instances Jan-Dec 2015

Negotiated Discount for Vaccines P1,693,804.75

Free 16 Wellness risk preventive screening tests & services for Support Health Clubs

P607,607

Free Wellness Activities and Honorarium for the 4 health forum experts during the Health 7 Wellness Awareness Day

P1.043,992

TOTAL COST SAVINGS P3,345,403.75

Cost Savings for MayniladHMO Partnerships


HMO Orientation 2.86 2.94 2.9 (exceeds standards)

APE (1st to 4th Qtrs) 2.99 2.94 2.965 (exceeds standards)

Health Forum 3.14 3.13 3.135 (exceeds standards)

DM Support Club 3.08 3.15 3.115 (exceeds standards)

HPN Support Club 3.09 3.12 3.105 (exceeds standards)

OVERALL RATING 3.03 3.06 3.045 (exceeds standards)

Wellness Programs (Support Clubs & Health & Wellness day) P47,157.39 (27.79%)

Dental Supplies P260,422.57 (78.1%)

Medicine Utilization/Inventory P73,737.83 (30.17%)

TOTAL COST SAVINGS P3,345,403.75

2015 Budget SavingsBudget Savings

HM Overall RatingService Providers / Speakers

Health and Wellness Programs / Initiatives

Core 4 2

Leadership 10 8

IMS 18 26

Professional/Technical under each division

BAO 7 5

CQESH 10 7

PMD 4 4

Logistics 9 13

C&M 5 11

LRA 4 2

HR 4 9

ITS 12 16

TSD 20 9

WMD 12 19

WSO 48 31

Finance 7 5

TOTAL 174 167 96%

ANNEX K. List of Training Programs by Internal Trainers

ActualTarget Number of Programs

Program Type

Core 696 283

Leadership 1309 644

IMS 1091 1414

Professional/Technical under each division

BAO 388 327

CQESH 32 71

PMD 82 110

Logistics 221 239

C&M 17 43

LRA 24 5

HR 26 76

ITS 36 43

TSD 107 82

WMD 100 504

WSO 1258 562

Finance 57 30

TOTAL 5444 4433 81%

Program Penetration Rate

ActualTarget Number of Programs

Program Type

Core 881 881

Technical and IMS 42,997 23,640

Leadership 8,284 2,408

TOTAL 52,162 26,929

Training Hours

Training Hours Conducted by Internal Trainers

Total Training HoursProgram Type

Core 3.56/4

Leadership 3.79/4

IMS 3.57/4

Professional/Technical 3.56/4

Training Evaluation

ScoreProgram Type


Study Tours

Schools Water Supply/ Wastewater 21 675

International Water Supply/ Wastewater 3 35

Water Districts NRW 2 40

External Training/ Conferences

Meter Management Training NRW 1 44

Water Technology Summit Water Supply/ Wastewater 1 83

Water Utilities: HR HR 1 60

Water Solutions Conference Water Supply/ NRW 1 159

Water Operators Partnership

Bangladesh NRW 9

Iloilo NRW 15

CDO Hydraulic Modelling 20

Nepal NRW 16

Topic No. of Participants

NumberActivities

ANNEX L. Water Academy Activities

ANNEX M. List of Trainings for Security Personnel

Course Description 3 146

Character Development 4

Legal Aspect: Drill and formations 4

Rules and Responsibilities 4

Physical Security System 4

Basic Investigation Procedure 4

Gun Safety and Firearms Handling 4

Evaluation 3

TOTAL 30

18 Months after Getting the License

No. of Participants

HoursIn-service Enhancement Security

Course Description 8 137

Character Development 8

Legal Aspect (including Human Rights) 8

Rules and Responsibilities (including Human Rights)

8

Physical Security System 10

Basic Investigation Procedure 10

Evaluation, General Knowledge Examination 4

TOTAL 56

Basic Security Supervisory Course 37

Course Introduction/Orientation 8

Robbery/Hold-up Control Procedures 10

Guard Supervision Principles and Practice 10

Decision making 10

Methods of Instruction 8

Gun Safety and Proper Handling 8

TOTAL 54

2 Months prior to Renewal of License

No. of Participants

HoursRefresher Training Course for Security Guards

IpoMangrove

List of Tree Planting Partners in 2015

1. Mamayan para sa Lambat at Dagat

Cooperative

2. DENR-Cavite

3. Cavite National High School

4. Brgy 5, Cavite City

5. PNP Maritime

6. Fisheries and Aquatic Resources Management

Council (FARMC)

7. JCI Manilena

8. Coast Guard Station – Cavite

9. Bureau of Jail Management and Penology

(BJMP)

10. Ms. Earth Philippines Foundation

1. FoodCrafters, Inc.

2. Jamboree Mountaineers

3. APO Fraternity

4. SSS Cycling Club

5. Clean Pacific

6. UP Interschool Business Association (UP-IBA)

7. Miriam College Interschool Business

Association (MC-IBA)

8. UP Green League

9. Department of Labor and Employment-NCR

10. Mabuhay Vinyl Corporation

11. DMCI Holdings, Inc.

12. Philippine School Business Administration –

Rotaract


GENERAL STANDARD DISCLOSURESSTRATEGY AND ANALYSIS

Section or Sub-Section, Page/s External Assurance

G4-1 Vision and Mission, 1; Message from the Chairman, 5 Yes, 168-169

G4-2 Message from the President, 8; Water Delivery, 46 Yes, 168-169

ORGANIZATIONAL PROFILE

G4-3 Who We Are, 18 Yes, 168-169

G4-4

G4-5

G4-6 Maynilad operates only in the Philippines. Yes, 168-169

G4-7 Who We Are, 18 Yes, 168-169

G4-8

G4-9 Who We Are, 18; Employee Statistics, 99; 2015 Fund Management Highlights, 112 Yes, 168-169

G4-10 Employee Statistics, 99 Yes, 168-169

G4-11 Cultivating Engaged Employees, 96 Yes, 168-169

G4-12 Influencing Our Partners, 130 Yes, 168-169

G4-13 Who We Are, 18; No changes regarding the organization’s size, structure, ownership, or its supply chain. Yes, 168-169

G4-14 Water Quality, 52 Yes, 168-169

G4-15 Annex E, 155 Yes, 168-169

G4-16 Engaging our Stakeholders, 28 Yes, 168-169

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 The information and indicators reported are related to Maynilad and all the company's business units. Yes, 168-169

G4-18 Our Materiality Process, 26 Yes, 168-169

G4-19 Materiality Framework, 27 Yes, 168-169



G4-22 GHG Emissions, 90 Yes, 168-169

G4-23 No changes in scope and aspect boundaries. Yes, 168-169

STAKEHOLDER ENGAGEMENT

G4-24 Engaging Our Stakeholders, 28-29

Engaging Our Stakeholders, 28-29



Yes, 168-169

G4-25

G4-26

G4-27

REPORT PROFILE

G4-28 About this Report, 17 Yes, 168-169

G4-29

G4-30

G4-31

G4-32

G4-33

GRI G4 CONTENT INDEX GENERAL STANDARD DISCLOSURESGOVERNANCE

Section or Sub-Section, Page/s External Assurance

G4-34 Governance Structure and Committees, 138 Yes, 168-169

G4-35 Our Board of Directors, 133 Yes, 168-169

G4-36 Our Management Team, 136 Yes, 168-169

G4-39 Mr. Manuel Pangilinan, Chairman of the Board, does not hold any other executive positions in the organization. Yes, 168-169

G4-40 Composition and Selection of the Board, 134; Governance Structure and Committees, 138 Yes, 168-169

G4-41 Avoidance of Conflict of Interest, 135 Yes, 168-169

G4-48 Head of Corporate Quality, Environment, Safety, and Health. Yes, 168-169

ETHICS AND INTEGRITY

G4-56 Vision and Mission, 1; Our Values, 19 Yes, 168-169

SPECIFIC STANDARD DISCLOSURESECONOMIC

Material Aspects DMA and Indicators, Page/s Reason for Omission External Assurance

Economic Performance

• G4-DMA – 109• G4-EC1 – 109

Not applicable Yes, 168-169

Indirect Economic Performance

• G4-DMA – 126 • G4-EC8 – 126


Procurement Practices

• G4-DMA – 128 • G4-EC9 – 128


ENVIRONMENTAL

Materials • G4-DMA - 92 • G4-EN1 – 92


Energy • G4-DMA – 88 • G4-EN3 – 88• G4-EN5 – 88


Water • G4-DMA – 36 • G4-EN8 – 39 • G4-EN9 – 39• G4-EN10 – 40


Biodiversity • G4-DMA - 42• G4-EN11 – 42 • G4-EN12 – 42


Emissions • G4-DMA – 90 • G4-EN15 – 90 • G4-EN16 – 90• G4-EN18 – 90


Effluents and Waste

• G4-DMA – 68, 76, 93• G4-EN22 – 76 • G4-EN23 – 94• G4-EN25 – 93• G4-EN26 – 156


Products and Services

• G4-DMA – 46• G4-EN27 – 46


Compliance • G4-DMA – 52 • G4-EN29 – No significant fines received


Supplier Environmental Assessment

• G4-DMA – 130 G4-EN32 – We have yet to set up an assessment process in our operations relating to environmental impacts. We will report on this in the next two to three years.

Yes, 168-169


SOCIAL: HUMAN RIGHTS

DMA and Indicators, Page/s Omissions External Assurance

Non- discrimination

• G4-DMA – 96 • G4-HR3 – None to report


Freedom of Association & Collective Bargaining

• G4-DMA – 96 • G4-HR4 – No aspect of our operations prohibits this freedom of association


Security Practices • G4-DMA – 131 • G4-HR7 – 131


SOCIAL: SOCIETY

Local Communities

• G4-DMA – 114 • G4-SO2 – 114


SOCIAL: PRODUCT RESPONSIBILITY

Customer Health and Safety

• G4-DMA – 46 • G4-PR2 – None to report


Product and Service Labeling

• G4-DMA – 63 • G4-PR5 – 63


UNIQUE MAYNILAD INDICATORSMaterial Aspects Indicators, Page/s

Operational Efficiency • Water Withdrawal and Production – 39• Progress on NRW Reduction – 54• Pipes Replaced – 56• Leaks Reported and Repaired – 57

Employee Engagement • Employee Engagement and Drivers – 100• Workplace Efficiency and innovation– 107

Employee Volunteerism • Engaging Society – 114

Employee Turnover • New Hires – 98

Safety Performance • Ensuring a Culture of Safety – 106• Absolute Number of Fatalities – None to report

Leadership Diversity • Employee Statistics – 99

SOCIAL: LABOR PRACTICES AND DECENT WORK

Employment • G4-DMA – 98 • G4-LA1 – 98


Occupational Health and Safety

• G4-DMA – 102• G4-LA6 – 102


Training and Education

• G4-DMA – 108 • G4-LA9 – 108


Diversity and Equal Opportunity

• G4-DMA – 99 • G4-LA12 – 99, 133


Supplier Assessment for Labor Practices

• G4-DMA – 130 G4-LA14 – We have yet to set up an assessment process in our operations relating to environ-mental impacts. We will report on this in the next two to three years.

Yes, 168-169


EXTERNAL ASSURANCE STATEMENT EXTERNAL ASSURANCE STATEMENT

ACKNOWLEDGEMENTS

INTERNAL

Commercial and MarketingJennifer C. RufoKarmina M. AlejandroMark Ferdinand PasionRosmon M. TuazonArrianne M. GamotinEdmundo M. Perez II

Human ResourcesChristian Reginald IndonMitchie M. ArcainaRicardo Jose G. MirandaMa. Elizabeth H. ObanilMae Liza S. VelasquezJo-ann R. PabilonaLorejane A. Eguia

Wastewater Management DivisionAnn Margarett L. MarigondonBenerly D. AmpoJan Patrick S. ReyesRyan E. Villamer

Corporate Quality, Environment, Safety and Health

Francisco A. ArellanoEnrique G. De GuzmanAnna Lhiza P. PorciunculaKris G. CatangcatangMarionne Kristel U. MarianoGianna I. VeracruzChester Y. Del RosarioFrancis B. CasinasMa. Cristina D. TalanayJohn Emmanuel B. MartinezMichael SablasSarah Lynn S. DuroyVilma S. CembranoMelvin John V. FloresElizabeth S. DavidRowena T. CaritativoConrado P. SorianoMark Paul S. CapatiJimer R. FelicesPaulo Jay C. DawalHelen B. LabaroRise Ann M. XavierGian Carlo P. Reyes

FinanceRachelle R. CajuraoFerdinand LunaJerome Paolo R. CruzCybele Regalado

Legal and Regulatory AffairsAtty. Prescila Bartolome-Culala

Program Management DivisionJannebelle L. DellosaAngela Mae L. Selga

Business Area OperationsAndrew B. PangilinanJeric Daniel M. AxalanJenneyfer A. RuedaRica Glorianne S. MatiasCristobal B. PaclebMark Brodette S. GadonMark LlaneJerwen A. EbcasEliezer D. SunangMarc Casubuan

Water Supply OperationsMa. Ana E. TriaAbigail S. EscalonaRessie D. VicenteJessica H. Agarap

LogisticsAllan S. FigueroaRonulfo G. GaylonGerald T. SaludezGrace A. LaguardiaClarisse Joy S. GomezMa. Teresa M. ArtiagaEstrellita Y. GravidezJahnet R. SubaAnaliza V. Santos Deobie M. MendozaEsperanza M. RaymundoEricson S. Garcia

CNRWLinette M. De PeraltaMa. Cherry S. MarillaBenson John A. Martin

Technical ServicesMyra P. TacderanJuan Paulo T. De Leon

EXTERNAL

Ester PalquezaThelma FernandezSaadia TomambilingMary Grace BanadoraRichel MagraciaArnold AringoRomeo AluraAman MatudaEvelin RegulacionResty VertosGian Carlo EscalanteRomeo ReyesZaldy TalamawMarimila KaabayFidela TamarayRy Ban DiegoLorna ManzanoNorma SumalpongMarjorie EboniaConsolacion MurosCristita AvangcoMargarita CalditoShiela HernandezPinky SorbitoJunelyn NipasShirley Fallaria


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