ADB Invests $145M in Maynilad to Boost Water Security in Metro Manila

The service area is among the densest urban zones in Southeast Asia, underscoring the importance of efficient and climate-resilient service delivery.

In a decisive move to strengthen water security and sanitation infrastructure in the Philippines, the Asian Development Bank (ADB) has invested the Philippine peso equivalent of $145 million in Maynilad Water Services, Inc., the largest water and wastewater utility in Southeast Asia. This investment is part of Maynilad’s initial public offering (IPO) on the Philippine Stock Exchange, where ADB joins as a lead cornerstone investor, alongside the International Finance Corporation (IFC).

This capital infusion is expected to catalyze Maynilad’s ambitious plans to modernize and expand water and wastewater services across the West Zone of Metro Manila, which includes 11 cities in the National Capital Region and parts of Cavite Province, serving approximately 10.5 million people.

Meeting the Urgent Need for Urban Water Infrastructure

Metro Manila faces chronic challenges in water service delivery, driven by:

• Changing rainfall patterns from climate change

• Rapid urbanization

• Population growth

• Aging infrastructure and service gaps in low-income neighborhoods

The ADB investment addresses these challenges by enabling Maynilad to:

• Increase water treatment capacity to meet growing demand

• Reduce non-revenue water (or water loss due to leaks and theft)

• Expand water supply coverage to underserved communities

• Modernize water conveyance systems for efficiency and durability

• Upgrade sewerage and sanitation facilities, including:

  • Installation of new sewer lines

  • Construction of lift and pump stations

  • Development of interceptor systems

“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 Andrew Jeffries, ADB’s Philippines Country Director.

He added that the infrastructure upgrades will also enhance climate resilience, improve public health, and boost economic productivity in the region.

Breakdown of the Investment

ADB’s total investment in Maynilad includes:

• $100 million from ADB’s ordinary capital resources

• $45 million from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2)

LEAP 2 is a $1.5 billion fund managed by ADB with backing from the Japan International Cooperation Agency (JICA). Launched in 2023, the fund supports sustainable infrastructure projects in Asia that:

• Reduce carbon emissions

• Improve energy efficiency

• Expand access to healthcare, education, and digital connectivity

• Enhance climate resilience and basic urban services

This investment reflects LEAP 2’s core goals of sustainable development and inclusive infrastructure growth in developing member countries.

Maynilad: A Pillar of Urban Utility Services

Maynilad operates under a government concession awarded by the Metropolitan Waterworks and Sewerage System (MWSS). The company serves the West Zone of Metro Manila, which spans:

• 11 cities in Metro Manila (3 partially covered)

• 3 cities and 3 municipalities in Cavite Province

The service area is among the densest urban zones in Southeast Asia, underscoring the importance of efficient and climate-resilient service delivery.

“Maynilad is appreciative of the strong support shown by ADB for its IPO,” said Ramoncito S. Fernandez, Maynilad’s President and CEO. “This listing will help us expand and upgrade water and wastewater services, enabling us to pursue our long-term goal of achieving full service coverage across the concession area.”

Advancing the Philippine Water Supply and Sanitation Master Plan

The investment is aligned with the Philippine Government’s Water Supply and Sanitation Master Plan, which sets ambitious targets for:

• Universal access to safe and sustainable water

• Affordable sanitation and hygiene services

• Achievement of these goals nationwide by 2030

ADB’s support for Maynilad also fits within its broader Country Partnership Strategy for the Philippines, which emphasizes:

• Infrastructure modernization

• Private sector participation

• Environmental sustainability

• Inclusive urban development

Driving Climate and Development Impact

By funding Maynilad’s infrastructure development, ADB is helping the Philippines:

• Improve resilience to climate change, especially during water-scarce periods

• Enhance urban livability in one of Asia’s fastest-growing megacities

• Promote sustainable private-sector solutions for essential services

• Reduce inequalities in access to clean water and sanitation

As cities across Asia confront the twin pressures of climate risks and urban growth, ADB’s investment in Maynilad offers a replicable model for scaling up public-private partnerships in essential service delivery.