Pest Analysis on Manila Water Essay

1032 Words Dec 6th, 2012 5 Pages
Lyndy Marie T. Casiño
Business Policy

A PEST Analysis on “Manila Water Expanding in Southern Philippines”

Political Not many companies are comfortable in entering long term agreement with local governments whose elected official’s tenure lasts only for three years (unless re-elected, but only up to a maximum of 9 year-stay in office ) due to changes that can be incurred in terms of governance and contract management. In fact in 2000, Manila Water initially negotiated with Metro Cebu Water District, a state-owned utility but failed due to disagreements before negotiations with the local government commenced (1).

The Cebu bulk water project is a Build-Operate-Transfer (BOT) project. Under the law, one of the most important
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They further discussed that Cebu’s watersheds were in a critical state. Access to piped water connection was limited. Ground pumping was still the major source of water which should have been regulated because of depletion of ground water reserves and saline intrusion of coastal aquifers (3).After more than a decade from when the report was made, these conditions still haunt Cebu. Due to these, Cebu’s continuous economic growth is seen to fall if no intervention will be made.

The partnership of Manila Water Company and Cebu Provincial Government is the answer to Cebuanos cry of having ample water supply. Through this partnership, water in the northern and central portion of the island province will be provided. Currently, the demand of water in these areas is not met, not even 50% of their demand is met. With the Cebu bulk water project, which will be sourced out from Liyang River, Carmen, this will give 35 million liters of potable water per day.

This will boost Cebu’s economy. Cebu, as once labelled ‘water-stressed” urban province will no longer be called such. Moreover, with this partnership, water price rate is expected to be lower as the water treatment rate is charged at only P13.95 per liter from the initial target of P24.90.

Moreover, in Carmen, Cebu where water is to be sourced out, major economic growth is to be expected as this project will bring money

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