PROJECTS

Management and Operational Reforms for Metro Iloilo Water District, Philippines

The problem

Only 26,800 of 136,500 households in Iloilo City, Philippines, had direct connection to Metro Iloilo Water District (MIWD) piped water. MIWD lacked capacity and resources to improve coverage, a situation aggravated by rapid urbanization and expanding economic activity.

How we helped

Castalia designed management and operational reforms to help MIWD perform better. To do so, we conducted a technical and operational assessment of water supply coverage. We benchmarked indicators against other cities in the Philippines and carried out an assessment of management and governance to determine how they affect performance. We developed reform options ranging from improvements in the public sector to bringing in private finance and operators through concession contracts. We consulted with stakeholders to identify who they are, what their interests are and to determine the most effective way to communicate with them.

Impact

MIWD was interested in bringing in significant private sector finance and management expertise through a concession contract. The model which Castalia helped them develop resulted in a 25-year concession agreement with MetroPac Water Investments Corporation. The arrangement, worth US$237 million, makes provision for the rehabilitation, operation, maintenance and expansion of the water distribution system of MIWD.