The project involves finding the intersection between major global economic and social challenges and business’s unique ability to resolve them. It is about creating value – value that endures -- through an interconnected system of stakeholders where business takes the lead

1. Business and Global Society
Fenway Team 5

2. Water in the world

3. Economic Implications
$32 billion in economic benefits each year from
reductions in health care costs and increased productivity
from reduced illness
Annual aid for water and sanitation amounts to only $8
billion, far short of the $1 trillion needed to solve
this crisis and maintain it long term
Every $1 invested in water and sanitation provides a
$4 economic return
1 4

4. Water as a human right
The 2030 Agenda for Sustainable
Development and the Sustainable
Development Goals
Goal 6: Clean Water & Sanitation
Ensure availability and sustainable
management of water & sanitation for all
6.1 Target: By 2030, achieve universal &
equitable access to safe & affordable
drinking water for all
The 2030 UN Agenda for Sustainable
Development and the Sustainable
Development Goals
Goal 6: Clean Water & Sanitation
Ensure availability and sustainable
management of water & sanitation for all
6.1 Target: By 2030, achieve universal &
equitable access to safe & affordable
drinking water for all

5. Water in the Philippines
Accessible, but not affordable
Access to water is
97% in urban
areas and 83% in
rural
Households in
Manila slums still
pay 5-10 times
more (as % of
income?) than
those in high-
income areas
Yearly water
utility bills can
total 3 months of
income for the
poorest 20% of
the population
Households in
Manila slums pay
more for water
than consumers
in London or NY

6. Manila Water: Creating Shared Value

7. Key Stakeholders
Stakeholder Concerns Motivations Ranking
Employees  Compensation and Benefits
 Integrating self-goals with organization goals
 Work-life Balance
 Personal development programs (Trainings,
Seminars, Conventions)
 CSR programs to engage in
 Working in a renowned, transparent, ecofriendly
and profitable organization. Medium
Customer/Community  Improvements in service quality
 Billing issues
 Desludging
 Rates and Billing Schemes
 Applications for new connections
 Traffic due to constructions and excavations
 Uninterrupted and easily accessible services.
 Affordable water connections
 An efficient customer grievance redressal system.
 Being associated with an eco- friendly company
High
Regulators:
(Metropolitan Waterworks and
Sewerage Systems(MWSS), Tourism
Infrastructure and Enterprise zone
Authority(TIEZA))
 Operational Issues
 Customer service issues
 Rate adjustments
 Achieving KPI( Key performance indicators)
 Congressional inquiries/hearings
 Financial Concerns( Inflation rates, Foreign currency
adjustments Discount rates)
 High operational efficiency of the company.
 Meeting all key performance indicators.
 Schemes in accordance to government policies and
standards.
 Rates are adjusted according to economic
conditions.
High
National Government
Agencies and Regulators
 Policy/governance concerns
 Water Resource management
 Rate adjustments
 Maintaining all government policies and standards
 Effective resource management of lakes and rivers
 Rate adjustment according to economic conditions
 More income in forms of taxes
 Equal and fair distribution of water as a resource
 Providing basic rights such as water, food and
shelter to its citizens.
High

8. Stakeholders – Contd.
Non-Government
organizations
 Uplifting of socio-economic conditions
 Service interruptions
 Hygiene conditions in the community
 Water availability and effective water management
 Project partnerships
 Equal distribution of water to all.
 Better living conditions
 Partnering with organizations to increase funds
and reach.
High
Shareholders/
Finance Community
 Finance and operating performance
 Risk analysis and management
 Growth initiative and expansion plans
 Environmental and social safeguards
 Annual reports showing profits and expansion
plans
 Timely Sustainability report
 Timely disclosures of company performance and
key decisions
High
Media  New business and service operations
 Service reliability
 Investor relations and disclosures
 Response to disaster
 Ecological footprint of the company
 Tariffs
 Company policies and standards
 Public information of issues and concerns
 Advertisements and publications showing service
offerings and benefits
medium
Academe  More work opportunities
 Availability of Trainings internships and seminars
 Increasing knowledge about environmental issues and concerns
 More job openings
 Frequent seminars and trainings to increase skill
level.
Low
International agencies
and Donor
organizations
 Increasing global issues such as sanitation clean water poverty hunger  Eradication of world issue
 Providing support to developing nations to help
eradicate these problems
Medium

9. Stakeholders - Contd
Vendors  More profitable business opportunities
 Complying with company standards and policies
 Attractive prices for services.
 Frequent trainings and seminars regarding
company standards and policies
 Recognition system for quality service
 High
Local
Government
Units
 Right of way issues
 Alignment of work programs
 Issues with plans and schedules
 Allocation of existing resources e.g. Pipes
 Company working in sync with the plans
and schedules of the local government
 Sharing of company resources
High
Private
Companies and
Organization
 Effective CSR opportunities  Having a social and ecological impact on
the society Low
Supply Chain  Minimum accreditation requirements and schedules
 Project pipelines
 New procurement policies
 Instituting better technology and
standards in the supply chain to reduce
effort
 Regular Training
 Vendor and safety forms
Medium

10. Systems View
Manila Water is a key component of the water ecosystem
LGU
Academe
Private
Companies
Shareholders
Donor
Organization
Environment

11. Watly – A disruptive technology
Water: Desalinates Ocean
Water to drinkable water
Electricity: Doesn't need to
be connected to an electric
grid. Watly produces off-
grid electricity
Communications: Powerful
communication device that
can collect and send any
kind of data (to the Internet

12. IMPLEMENTATION SYSTEMS AND FEEDBACK
LOOPS
Government
Regulations
Watly Economy
Water supply systems
Consumers at
center
Services
Government
Watly
Water Bonds
BOP

13. Value in disruptive system
• Manilla currently offers water at $1.25 for the low income consumers
• Our technology proposes $.60 providing a 52% cost reduction.
• Easy to integrate with current water provide
• Disruptive technology offered by Watly targets low income
populations
• Bonds repayable over 25 years with convenient repayment terms

14. Thank youDream Team Consultants

15. Appendix

16. Private–Public partnership to improve the water service

17. What is the right Water Rates calculate strategy
Two basic premises:
● All water drawn from the water system must be accounted and paid
● Rates must be high enough to meet the financial requirements of the district (for
self-sufficiency),
but low enough to be within the ability to pay of the majority of users (for public
service).
• A good rate strategy should consider the following factors:
Ability to pay of the users - socio economic condition in the district.
Cash requirements of the district - operational expenses and capital investment.
Enforceability of the rates - can be justified and made acceptable to the public.
Availability of reliable data - basis of realistic computations.
A good rate structure should combine the following chief characteristics:
Revenue oriented, which gives primary consideration to financial requirements.
Service oriented, which is primarily designed to favor the low income group.

18. Two general water rate calculate methods
REVENUE-UNIT METHOD (RUM)
Revenue Units (RU) = Higher Minimum Charge (MC) + Uniform Commodity
Charge (CC)
(regardless of consumption)
Application:
• Most applicable to newly-formed water districts.
More applicable to districts with lesser concessionaires and with abundant
water supply.
Applies the cross-customer subsidy in the first 10 cu.m. of consumption in
the form of minimum charge, based on the size of connection.
Applies a low uniform commodity charge regardless of consumption rate.
The effective cost of water tends to decrease as consumption increases.

19. QUANTITY-BLOCK METHOD (QBM)
• High levels of consumption would have higher costs
• It is less revenue oriented and more public-service oriented than RUM
• This method quantity blocks (QB, 10 cu.m/per block)
pay uniform unit price per block + per block * assigned conversion
factors
• The effective cost of water tends to increase as consumption rate.

20. Do Government take too much tax???
Item Indicator 2012 2013 2014
1. Economic value generated Revenue 14,835,050.90 16,098,656.34 16,542,822.88
2. Economic value distributed Operating c ost 2,617,761.82 3,058,705.66 3,317,641.70
Employee wages
and benefits
1,388,983.44 1,278,640.86 1,432,310.03
Payments to
providers of
capital
3,056,641.58 3,638,860.75 3,649,246.62
Payments to
government
3,148,770.67 3,117,706.00 3,215,380.68
*Community
investments
13,690.45 2,127.26 30,889.23
3. Economic value retained 4,609,202.93 5,002,615.82 4,897,354.62
Amount in thousand PHP
*Coursed through Manila Water Foundation
and management. In 2014, MWTS launched two produc
Healthy Family Purifie Water and Integrated Used Wat
Solutios (“ design & build” and “plug and play” STPs).
n