This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/20/2017

Overview

The Philippine market for water resource equipment and services is expected to grow by at least five percent yearly over the next five years as a result of the current and upcoming projects that address increasing water requirements as well as sanitation challenges in the Philippines.

Government entities fund water-related projects through a mixture of national/local government budgets and foreign (governments and, multilateral and bilateral agencies) loans/grants. Water districts use internally-generated funds and loans. There are also projects offered for public-private partnerships. Private entities finance water and wastewater treatment projects through internal funds and/or loans.

The Philippines is highly dependent on imported water and wastewater treatment products.  It sources its requirements from various countries, such as the U.S., Australia, China, Japan, South Korea, Taiwan, and European countries such as United Kingdom, Germany, France, and Italy. 

There are Philippine companies that manufacture unplasticized polyvinyl chloride (uPVC), high-density polyethylene (HDPE), and spiral welded steel pipes, ductile/cast iron valves and fittings. 

 

Philippines - Water Resources Equipment and Services - Total Market Size

 

2014 (estimated)

2015 (estimated)

2016 (estimated)

2017 (estimated)

Total Market Size

379,213

399,479

420,771

443,140

Total Local Production

N/A

N/A

N/A

N/A

Total Exports

32,615

  32,941

   33,270

33,603
 

Total Imports

411,828

 432,420

  454,041

476,743
 

Imports from the U.S.

 39,848

  41,840

   43,933

46,129

  Exchange Rate: 1 US$*

44.40

45.50

47.50

-

 

US$ thousands:  Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Unofficial estimates
Total Exports: Unofficial estimates
Total Imports: Unofficial estimates

* Listed exchange rates are not used in the above calculations. Exchange rate shows average value of Philippine Peso to U.S. Dollar. (Source: Central Bank of the Philippines).
 

Sub-Sector Best Prospects

  • Drinking/potable water treatment equipment/processes
  • Products/equipment for the construction and development of additional water resources and water supply systems
  • Water supply rehabilitation products/equipment
  • Water recycling products/equipment
  • Products/equipment/accessories for sewage/septage projects; packaged or modular wastewater treatment equipment; industrial wastewater treatment; wastewater treatment technologies that will result in smaller footprints (due to land constraints). 

Opportunities

  • Projects of Manila Water Company (MWCI) and Maynilad Water Services, Inc. (MWSI) and other Private Water Service Providers (WSPs): MWCI and MWSI are the concessionaires of Metropolitan Waterworks and Sewerage System (MWSS), the government agency that has jurisdiction, supervision, and control over waterworks and sewerage in Metro Manila and surrounding areas. The two companies, which service over 16 million people, are continuously expanding, modernizing, and improving water and used water treatment services in their respective areas.   Projects of MWCI and MWSI include construction/improvement/rehabilitation of water and sewage treatment facilities, as well as reservoirs; reliability projects; network improvement; upgrading of boosters and pumping stations; water loss recovery; and modernization of data management and information systems. 

  • MWCI is currently building the 100 million liters per day (MLD) North and South Pasig Sewerage System while MSI has seven on-going sewerage treatment plant projects.  In the next five years, Maynilad Water plans to build nine sewerage treatment plants, ranging from 12 to 203 MLD.

  • Medium- to large-scale private WSPs include Balibago Waterworks System, PrimeWater Infrastructure Corporation, and Calapan Waterworks.  They mostly provide water services.

  • Water Projects under Public-Private Partnership (PPP) - The largest  water project under the PPP arrangement is the $515 million Bulacan Bulk Water Supply Project being undertaken by Luzon Clean Water Development Corporation, a consortium composed of San Miguel Corporation, a Philippine company, and K-water, a Korean company.  The components of this project include construction of water sources, aqueduct interconnection, water treatment plants, and sludge treatment facility and interconnection facilities to the water districts (WDs).  As of April 2017, construction of the water treatment plant is about 10% complete.  

  • Water Projects Financed by the Asian Development Bank (ADB):  The two water projects that ADB is currently funding in the Philippines are:

  • Angat Water Transmission Improvement Project - In March 2016, ADB approved a $123.3 million loan to the project which involves the construction of a new tunnel with a diameter of four meters and a total length of 6.30 kilometers, and a design capacity of 19 cubic meters per second, including intake and outlet works. Project completion is targeted for December 31, 2020.  MWSS is the executing agency.

  • Water District Development Sector Project - In April 2016, ADB approved a $60 million loan to the Philippines to the project which will be implemented by the Local Water Utilities Administration (LWUA), the Government entity that provides financial, technical, institutional, developmental, and regulatory services to WDs.  The project aims to enable WDs to expand and rehabilitate water supply systems and to build pilot sanitation facilities.  It will also provide capacity development technical assistance to strengthen the sustainability of WDs and promote partnerships between local government units (LGUs) and WDs in septage management.

  • In the next three years, ADB plans to fund the following projects: Metro Manila Water and Sanitation Program (formerly Metro Manila Wastewater Improvement Project); and the Lake Laguna Flood Management/Integrated Water Resource Management Program.

  • Projects of WDs Under LWUA: There are over 500 operational WDs in the country, 18 percent of which are classified as creditworthy and more than 400 have less than 10,000 connections. These WDs develop water sources and new water supply systems; repair/rehabilitate/expand existing systems, reduce non-revenue water, etc. Very few have septage/sewerage systems.  Requirements of water districts are advertised at the Local Water Utilities Administration and the Philippine Government Electronic Procurement System under the following categories: Water and Wastewater Treatment Supply and Disposal, Water Service Connection Materials/Fittings, and Well Drilling and Construction Services.

  • Wastewater Projects of Industrial Plants, Tourism Facilities, Residential/Commercial Buildings, Hospitals, Restaurants, Recreational Facilities and other Similar Establishments: These establishments face fines or closures if they are not able to comply with the effluent concentration limits set by law.  

Web Resources
Local Water Utilities Administratio         
Manila Water Company Inc.                   
Maynilad Water Services, Inc.                 
Philippine Association of Water Districts  
Philippine Government Electronic Procurement System  
Water Environment Assoc of the Philippines                 

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More Information

Philippines Water and Wastewater Trade Development and Promotion