Bulk Water Supply Infrastructure for Underserved Areas

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Bulk Water Supply Infrastructure for Underserved Areas
Bulk Water Supply Infrastructure for Underserved Areas
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Utilities
Business Model Description

Construct and operate Bulk Water Supply Infrastructure within areas recognised by the local government, requiring support and initial studies. Investment may be made through direct investment or project financing with the local government unit. Return is expected through bulk water charges from off-takers. Recent successful partnerships within the space show a return profile of 10% to 15%. Some examples of companies operating in this space are:

Negros Occidental and Baggao Water Supply Projects: Multiple Private-Public Partnerships have already been executed for providing water supply solutions for underserved areas. Examples of projects include: Negros Occidental Bulk Water Supply Project and the Baggao Water Supply Project (18) and the Honiara Water Supply and Sanitation Project (by ADB).

Initiated in April 2015, the Baggao Water Supply Project is an Unsolicited Build-Operate-Transfer (BOT) Proposal for the Long Term Water Source Development for Metro Manila. It involves the design, financing, construction, testing, operation, and maintenance of a Level III Water Supply System. Its indicative cost is roughly USD 3.8 million. (20)

The Negros Occidental Bulk Water Supply Project is a solicited bulk water project which is undergoing review for approval for implementation in the province of Negros Occidental. Its indicative cost is yet to be determined. The project will cover financing, designing, constructing, operating, and maintaining new bulk water supply facilities and the water will be sourced to Malogo River Basin. (19)

Expected Impact

Providing people with clean water to meet basic daily requirements. Health of poor families is also benefited by having access to clean water sources.

How is this information gathered?
Updated: 17 Mar, 2024
Philippines
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Clean water and sanitation (SDG 6)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Gender Equality (SDG 5) Industry, Innovation and Infrastructure (SDG 9)

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Sector Sources
  • 1) NEDA. Philippine Development Plan 2023 to 2028 https://pdp.neda.gov.ph/philippine-development-plan-2023-2028/ 2) INFF. Development Finance Assessment 2022 https://medium.com/@jp.inff.ph/2022-development-finance-assessment-shows-ph-financing-landscape-in-the-time-of-covid-19-and-the-68dcc39bcc19 3) Savoy, C. and Staguhn, J. (2022). The Role of Water in Catalyzing Gender Equity. Center for Strategic & International Studies. https://www.csis.org/analysis/role-water-catalyzing-gender-equity#:~:text=The%20United%20Nations%20highlights%20three,access%20to%20a%20water%20source. 4) KMC SAVILLS. https://kmcmaggroup.com/research-insights/2014/poor-infrastructure-impedes-ph-from-attaining-maximum-growth/ 5) PSA. Majority Families have Access to Improved Source of Drinking Water https://psa.gov.ph/content/majority-families-have-access-improved-source-drinking-water-results-2022-annual-poverty 6) NEDA. Philippine Water Supply and Sanitation Plan 2019 - 2030. https://neda.gov.ph/wp-content/uploads/2021/09/120921_PWSSMP_Main-Report.pdf 7) UNICEF. 2 Billion People Lacking Safe Water Twice Lack Safe Sanitation. https://www.unicef.org/philippines/press-releases/two-billion-people-lack-safe-drinking-water-more-twice-lack-safe-sanitation#:~:text=Around%2099%25%20of%20the%20one-fifth%20wealthiest%20households%20are,20%20million%20lack%20access%20to%20basic%20sanitation%20facilities " 8) Mateo, J. 2023 April 14. Only 67% of households have access to running water - SWS. PhilStar Global. https://www.philstar.com/headlines/2023/04/14/2258820/only-67-households-have-access-running-water-sws#:~:text=A%20ranking%20official%20of%20the,crisis%20was%20likely%20next%20year. 9) Local Water Utilities Administration. n.d. What is a Water District. https://lwua.gov.ph/water-districts/what-is-a-water-district/#:~:text=A%20duly%2Dorganized%20water%20district,a%20water%20district%20or%20not. 10) World Resources Institute. 2015. Aqueduct Projected Water Stress Country Rankings https://www.wri.org/research/aqueduct-projected-water-stress-country-rankings 11) Shiela Marie Alfonso, Shinobu Kazama, Satoshi Takizawa. 2022. Inequalities in access to and consumption of safely managed water due to socio-economic factors: Evidence from Quezon City, Philippines https://www.sciencedirect.com/science/article/pii/S2666049021000955 12) PSA. 2021. Compendium of Philippine Environment Statistics Component 5: Human Settlements and Environmental Health https://psa.gov.ph/press-releases/id/165164 13) Philippine Daily Inquirer (2023). https://newsinfo.inquirer.net/1737981/women-girls-bear-brunt-of-water-and-sanitation-crisis"
IOA Sources
  • 14) NEDA. (2021). 2019-2030 Philippine Water Supply and Sanitation Master Plan. https://neda.gov.ph/wp-content/uploads/2021/09/120921_PWSSMP_Main-Report.pdf 15) PPPC Bulk Water Feasibility Studies and Project Information Sheets. 16) PPPC. List of Projects. https://ppp.gov.ph/list-of-projects/ 17) Philippine Statistics Authority (2016) https://psa.gov.ph/content/water-resources#:~:text=This%20represents%20an%20average%20annual,not%20included%20in%20the%20estimation. 18) Baggao Water Supply Project. PPPC. https://ppp.gov.ph/ppp_projects/baggao-water-supply-project-2/ 19) Negros Occidental Bulk Water Supply Project. PPPC. https://ppp.gov.ph/ppp_projects/negros-occidental-bulk-water-supply-project/ "20) Indigenous Water, Sanitation and Hygienic (WaSH) Practices: The Case of the IP Community in Barangay Lower Panaga, Panabo, Philippines https://www.researchgate.net/profile/Jevannel-Borlio/publication/356057160_Indigenous_Water_Sanitation_and_Hygienic_WaSH_Practices_The_Case_of_the_IP_Community_in_Barangay_Lower_Panaga_Panabo_Philippines/links/618bd98d61f09877207a6a30/Indigenous-Water-Sanitation-and-Hygienic-WaSH-Practices-The-Case-of-the-IP-Community-in-Barangay-Lower-Panaga-Panabo-Philippines.pdf" 21) Water.Org https://water.org/our-impact/where-we-work/philippines/ 22) The Omnibus Investment Code of 1987 (EO 226 as amended) https://lawphil.net/executive/execord/eo1987/eo_226_1987.html