Analysis

Manila Water's concession now runs to 2047, but its sanitation deadline comes ten years earlier

Manila Water's East Zone concession now runs to January 21, 2047, but its franchise requires 100% water and sanitation coverage by 2037. Sewer coverage reached 30% at end-2025.

On October 10, 2025, Manila Water and the Metropolitan Waterworks and Sewerage System (MWSS) agreed an 8th amendment that moves the East Zone concession's expiry to January 21, 2047. The change ends six years of uncertainty over the deal's term, but it leaves a harder date in place: 100% water and combined sewerage and sanitation coverage by 2037.

From dispute to settled terms

The concession dates from February 21, 1997. MWSS's board revoked its 2009 extension in December 2019, and the Supreme Court fined Manila Water and MWSS PHP 202.26 million under the Clean Water Act, paid on February 9, 2023. Republic Act No. 11601, effective January 25, 2022, gave the company a 25-year franchise and moved its Clean Water Act deadline to 2037.

Tougher rules, tied to delivery

The revised agreement removed recovery of corporate income tax, capped the inflation factor below CPI (two-thirds of CPI in 2021, revised in 2023 to 75% of July inflation) and fixed the discount rate at 12%. Manila Water reached 30% sewer coverage by December 31, 2025, which allowed the environmental charge to rise to 30% from January 1, 2026. The sewered all-in tariff rose PHP 8.39 to PHP 85.06 per m³ that month.

The sewer build-out

Sewer connections rose from 318,385 in FY2024 to 380,254 in FY2025. The 60 MLD Aglipay plant, which can expand to 120 MLD, became fully operational in January 2026 and serves about 652,000 residents.

The full report covers the sixth rebasing schedule to 2027, the indicative 2.12% Wawa adjustment for January 2028, Manila Water's ownership after Ayala's 2024 share sales, and how the 2037 and 2047 dates bear on capital spending. The full report, Water Systems Overview: Manila Water Company, Inc., is available for USD 499. For a free overview, read the Manila Water Company, Inc. Utility Snapshot.

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