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Trends and opportunities
The market
Since the privatisation of the Metropolitan Manila Water and Sewerage Authority in 1997 two private concessionaires have been operating in Metro Manila, the Manila Water Company and Maynilad Water Resources Inc. Both are now engaged in increasing their service connections through more pipe-laying activities in areas not currently being serviced, rehabilitating existing water treatment facilities, and changing old leaking pipes, which contributes to the high level of non-revenue water in the sector.
There is also growing interest in wastewater treatment and management in the sector. Recent regulations from the Department of Environment and Natural Resources for the disposal and treatment of wastewater now require developers to provide wastewater treatment services. This should lead to more opportunities for companies with appropriate wastewater technologies.
Opportunities
Opportunities in the Philippines water sector include:
- Sludge collection and disposal to include alternative use of sludge
- Septage treatment and disposal
- Sewage system and treatment plants
- Low-cost sanitation for low-income communities
- Pipes and pumps for rehabilitation and setting-up of new pumping stations
- Small-scale wastewater facilities appropriate for small communities
It’s worth looking into the potential consulting and equipment requirements of World Bank-loan funded projects that are currently being implemented in the Philippines, such as the local government Urban Water and Sanitation Project and the Philippine Water Districts Development Project.
There is also a funding facility that the Local Water and Utilities Administration makes available to local water districts nationwide that is mainly for expansion and rehabilitation projects. Details of individual projects in the pipeline or those currently being implemented on a local level can be obtained by contacting the major water districts through the local government.
Competitive environment
There are an increasing number of foreign manufacturers and suppliers showing keen interest in water services, products and wastewater treatment and management in the Philippines.
Activities in the water supply, sewage, sanitation, and wastewater treatment sectors are primarily driven by private sector participation in the Philippine government’s expansion and rehabilitation projects. Most of these projects are being funded by or are being proposed for funding to multilateral and bilateral agencies.
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Tariffs, regulations and customs
Importation tariffs on equipment or products used in the Philippines water sector normally falls within the 3-10 per cent tariff rate. A 10 per cent Value Added Tax applies to all imports. |
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Marketing your products and services
Market entry
Establishing a local presence either through a representative office or a local agent is the best approach for entering the Philippines. You should also make sure to provide your local agent with technical and promotional support.
The more successful companies in the country are those that value relationships established with local clients over a period of time, as well as those with competitive pricing.
The Philippines is still new in terms of procuring products online. In the water sector, only the Manila Water Company has begun to conceptualise a process of online equipment procurement.
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Links and industry contacts
Water-related resources
Department of Environment and Natural Resources - www.denr.gov.ph
Local Water Utilities Administration - www.lwua.gov.ph LWUA Complex, Katipunan Road Balara, Quezon City Philippines Tel: (63 2) 920 5581 Fax: (63 2) 922 5433
Service providers
Manila Water Company 3/F MWSS Administration Building Katipunan Road, Balara, Quezon City Philippines Tel: (63 2) 922 3761 Fax: (63 2) 922 3761
Maynilad Water Services Inc Engineering Building MWSS Compound, Katipunan Road Balara, Quezon City Philippines Tel: (63 2) 929 6894 Fax: (63 2) 922 3759
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Contact details
The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au
(Last updated: 31 Jul 2007)
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