Case Study: Philippines.
In 1997, Metropolitan Waterworks and Sewerage System entered into conces-sion agreements with Manila Water Company and Maynilad Water Services, who were allocated the East and Western service areas of Manila respectively after a selective bidding process. Each company had to have at least 65% national ownership. The winning bidder for the Eastern concession surprised everyone by bidding for a very significant reduction in price. MWSS remained as asset holding authority. By virtue of the contracts, a Regulatory Office (MWSS-RO) was established to monitor the implementation of the concession agreements.
The initial contracts required the concessionaires to undertake phased extension of service areas to ensure service coverage to the poor. Learning from each other, as well as from the electricity providers, Manila Water and Maynilad developed innovative approaches to service delivery in the slums and shanties.
Center for Water Science, Cranfield University, UK, 8 pp.