Water Resource Equipment and Services
Philippines
Overview
(In $ Millions)
2003 2004 2005
Total Market Size 153 154 92
Total Local Production 35 53 36
Total Exports 34 52 18
Total Imports 152 153 74
Imports from the U.S. 21 27 29
Total Exports, Imports and Imports from the U.S. gathered from the Philippines’
National Statistics Office. Total local production is an unofficial estimate.
The Philippine market for water resource equipment/services is expected to grow by about 5% yearly in view of the following:
(1) On-going and upcoming projects that address increasing water demand and pressing water, sanitation, and wastewater-related problems such as:
· Limited access to potable water through water supply and distribution operations.
Roughly 30 million of the country’s 80 million people do not have access to potable water through public or commercial water supply and distribution operations;
· Large amounts of “unaccounted-for-water” due to leaks in distribution pipes, inefficient metering, and poor administration;
· Lack of sanitation and sewage systems. Almost 13 million out of 87 million Filipinos do not have access to sanitation facilities. Sewerage is virtually non-existent in many areas. Most use open drains, septic tanks, and pit latrines to dispose of liquid and human waste. Centralized municipal wastewater treatment plants are also virtually non-existent;
· Extensive water pollution due to discharge of domestic and industrial wastewater and agricultural runoff.
(2) The Philippines’ Medium Term Philippine Development Plan 2004-2010 states the following objectives:
· Provide potable water to the entire country by 2010;
· Develop technology options for water supply (e.g., solar desalination for isolated islands, windmill technology, etc.);
· Promote private or public sector investment in the provision of water to waterless areas;
· Ensure clean water resources for the Philippines through full implementation of the Clean Water Act of 2004.
Government entities fund water- and sewerage-related projects through a mixture of national/local government budgets and foreign (governments, multilateral and bilateral agencies) loans/grants. Build-Operate-Transfer (BOT) schemes will also be used in some projects. Private entities finance water and wastewater treatment projects through internal funds or loans.
Best Products/Services
The best products and services to meet these market demands include:
· Drinking water treatment equipment/processes
· Products/equipment for the construction and development of additional water resources and water supply systems
· Products/equipment for water supply rehabilitation
· Products/equipment/accessories for sewerage, septage and combined sewerage-septage projects, including packaged or modular wastewater treatment equipment
· Products/equipment for industrial wastewater treatment and recycling
Opportunities
Major projects include the following:
(1) Projects of the Department of Interior and Local Government (DILG) - These projects are the Rural Water Supply and Sanitation Project (RWSSP) funded by the Japan Bank for International Cooperation; the LGU (Local Government Unit) Urban Water Supply and Sanitation Project of the World Bank; DILG-GTZ Water and Sanitation Program funded by the German government; Solar-Power Prepaid Water Project; and the President’s Priority Project on Water of the National Anti-Poverty Commission.
(2) Projects of water districts – There are 612 water districts all over the Philippines that embark mostly on construction, development and maintenance of water supply systems in provinces and municipalities. The Local Water Utilities Administration (LWUA), the government entity that provides financial, technical, institutional development and regulatory service to local water utilities, announced that it would raise funds to finance the improvement and expansion of provincial and municipal water supply systems. The Asian Development Bank (ADB), Kreditanstalt fur Wiederaufbau (KfW), Japan Bank for International Cooperation, and LWUA’s and water districts’ internal funds finance the projects of water districts.
(3) Manila Third Sewerage Project – This 5-year (2005-2010) project involves a $64 million loan from the World Bank (WB) and includes the construction of 10 sewage treatment plants, upgrading of two communal septic tanks to secondary treatment, rehabilitation of collection networks, construction of two septage treatment plants, and safe disposal of treated septage. To date, two septage treatment plants are being constructed and the upgrade of two communal septic tanks had been bidded out.
(4) Projects of Manila Water Company – This company is a concessionaire of the government-owned Metropolitan Waterworks and Sewerage System (MWSS) under a 25-year concession agreement. Manila Water announced that it would allot P5 billion ($102 million) in capital expenditures within the next five years. Manila Water secured a $30 million loan in 2006 from the International Finance Corporation to partly fund its capital expenditure program. The development of new water sources, expansion of its sewerage and sanitation services, improvement and maintenance of existing water networks and expansion of water network form part of Manila Water’s program.
(5) Projects of DM Consunji Holdings Inc.-Metro Pacific Investments Corp. (DMCI-MPIC) Water Company – DMCI-MPIC Water Company, the other concessionaire of MWSS, announced that it would allot PhP30 billion ($611 million) for the rehabilitation and expansion of water services in Metro Manila’s west zone in the next six years. DMCI-MPIC plans to fast-track rehabilitation of water systems, improve water quality by eliminating possible sources of contamination, and address the issue of losses, or non-revenue water.
Resources
Asian Development Bank – http://www.adb.org; http://www.buyusa.gov/adb
Department of Environment and Natural Resources: http://www.denr.gov.ph
Department of Interior and Local Government: http://www.dilg.gov.ph
Environmental Management Bureau: http://www.emb.gov.ph
Local Water Utilities Administration: http://www.lwua.gov.ph
National Economic and Development Authority: http://www.neda.gov.ph
World Bank: http://www.worldbank.org.ph
Trade Events:
Enviro-Tech Philippines 2007 (7th International Total Environment Management
Technology, Cleaning & Maintenance Solutions, Water & Waste Water Control System, Equipment and Services Exhibition and Conference), September 26-29, 2007, World Trade Center, Metro Manila (Note: Enviro-Tech Philippines 2006 will be held in conjunction with six other shows: Hardware Philippines, Metal Philippines, Plastics and Packaging Philippines, Philtronics, Print and Label Philippines and Woodmach Philippines)
Bebe Montesines, Commercial Specialist
U.S. Commercial Service Manila
Email: Bebe.Montesines@mail.doc.gov , Manila.Office.Box@mail.doc.gov