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Manila Water Privatising Regulated Services in a Developing Country (A Strategy Case Study)

JSME Vol 5: Issue 2, 2009

Author(s): Christian Wolf (University of Cambridge, Judge Business School, UK)

Abstract:
In 1997 the government of the Philippines privatised the water services in the Manila Metropolitan Area (covering approximately 11 million people) by granting two large concession areas to consortia of international water companies and local partners. This case study tracks the successful efforts of one concessionaire, Manila Water Company (MWC), to operate under a newly established regulatory regime and to tackle a number of key operational challenges. The case describes the main strategic and commercial decisions, organisational changes and technological choices of the company, but also discusses in detail the regulatory regime and political framework for privatisation within this developing country. It also poses some important future growth questions and options, and contrasts the fortunes of MWC with the other concessionaire (Maynilad Water), which had to declare bankruptcy and return its concession in 2005.

Keywords: water industry, infrastructure, distribution networks, privatization, regulation, Philippines, developing country.

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