Utility Business Model (Piloting the PTS in Laguna, Philippines)

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Utility Business Model (Piloting the PTS in Laguna, Philippines)

The Laguna AAAWater Corporation (Laguna Water) provides water services to approximately 80% of households in the cities of Biñan, Sta. Rosa, and Cabuyao, in the Province of Laguna, Philippines. Part of their expansion plan includes the consideration of various options on wastewater management programs.

In line with this, Laguna Water secured a grant from Grand Challenges Canada to conduct a two-phase pilot study that facilitates the scalability and replicability of the portable toilet system model tucked in our Utility Business Model, the model describes the cross-subsidy of Water Revenues to support the operations and maintenance of our Used Water Services after the collection of Environmental Fees. The report attached covers an assessment of Phase II of the Portable Toilet Solution Project, which involved continued testing of two prototype systems with 30 target households in Barangays Don Jose, Pooc, and Macabling, Sta. Rosa, Laguna.

This report details the comparison of the two prototype systems, by vendors LIXIL Group Corporation and Loowatt Ltd., through a Multi-Criteria Analysis (MCA). This report also details the baseline water quality analysis and the project risk assessment. The findings detailed in this report are the result of consolidating and cross-validating information and data from interviews, observations and discussions, logging of portable toilet use and cleaning machine use and water consumption, and water sampling.

The MCA scores were based on the identified criterion: financial, environmental, health and safety, customer satisfaction and ability to scale up the business. Each criterion were given specific weights and corresponding scores for each technology. Overall, Loowatt’s system is the recommended PTS with a total MCA score of 87.48% as compared to LIXIL’s system with a MCA score of 54.18%. Loowatt’s system is preferred in terms of financial, environmental and customer satisfaction criterion. LIXIL’s system is preferred in terms of health and safety, and ability to scale up criterion.

Water sampling from four sampling stations reveal that there is high level of BOD and total coliform in Barangays Macabling and Pooc sites of the pilot study, which can be attributed to the improper disposal and treatment of human excrements in the area. Risk assessment identified extreme risks such as insufficient funding, difficulty in land acquisition, possible theft of AS/IBS equipment and potential migration or resettlement of households. Mitigation measures are recommended for each of the identified risks.

The Laguna Water team are excited to share and describe our experiences during the 4-month Pilot Study we recently concluded and on the current phase of presenting our findings to our Top Management for possible roll-out in the coming months.

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