The Asian Development Bank (ADB) has announced a $145 million (in Philippine pesos equivalent) investment in Maynilad Water Services, Inc. to strengthen water security and upgrade wastewater infrastructure across Metro Manila. As one of the two lead cornerstone investors in Maynilad’s initial public offering (IPO) on the Philippine Stock Exchange, ADB’s investment will play a crucial role in building a more resilient and sustainable water system for the Philippines’ capital region.
The investment supports the expansion and modernization of Maynilad’s water and wastewater facilities, addressing long-standing challenges caused by rapid urbanization, population growth, economic development, and changing rainfall patterns. These factors have led to inconsistent water supply and limited access to clean water, especially in low-income and densely populated areas of Metro Manila.
Through ADB’s support, Maynilad will increase water treatment capacity, reduce water losses, and upgrade conveyance networks to expand water supply coverage. The company will also improve sewerage and sanitation services by installing new sewer lines, constructing lift and pump stations, developing interceptor systems, and upgrading existing treatment facilities. Incorporating advanced technologies will help lower operational costs and boost overall system efficiency.
“This investment highlights our commitment to helping provide clean, accessible, and reliable water, and safe sanitation services, to millions of Filipino households, commercial, and institutional users,” said ADB Philippines Country Director Andrew Jeffries. “The expansion and modernization of water and wastewater infrastructure will enhance climate resilience, public health, and economic productivity, while contributing to the country’s long-term social and economic development.”
Maynilad, one of two concessionaires authorized by the Metropolitan Waterworks and Sewerage System, manages water and sewerage services in the “West Zone” of Metro Manila. Its service area includes 11 cities in the metropolis—three of which are partially covered—as well as three cities and three municipalities in Cavite Province, serving an estimated 10.5 million people.
Maynilad President and CEO Ramoncito S. Fernandez expressed appreciation for ADB’s backing, stating, “We are grateful for ADB’s strong support of our IPO, which will enable us to expand and upgrade our water and wastewater services to meet growing demand.”
The Government of the Philippines has prioritized private sector participation in improving national water and sanitation infrastructure under the Philippine Water Supply and Sanitation Master Plan, which aims for universal access to safe, affordable, and sustainable water and sanitation by 2030.
ADB’s investment comprises $100 million from its ordinary capital resources and $45 million from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2). Managed by ADB with a $1.5 billion commitment from the Japan International Cooperation Agency (JICA), LEAP 2 supports sustainable private sector infrastructure projects across Asia, focusing on carbon reduction, energy efficiency, and improved access to essential services such as healthcare, education, and communication.
