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3rd year Chemical Engineering Fieldtrip Report


DATE OF VISIT: January 11, 2017

A. Vision and Mission
Beyond Quality Water and Services, A Benchmark of Excellence.
We are committed to continually exceed our customers’ expectations
through our quality water and services. We shall perpetually protect the
environment in all aspects of our operations.

We shall enhance, promote and live out our core values, and create a healthy
and safe working environment conducive to our growth and development.

In pursuit of these commitments and in full compliance with applicable legal

and other requirements, we shall become a benchmark of excellence in the

B. Corporate Profile

C. Technical Description
Subic Water and Sewerage Co., Inc (SUBICWATER) is Southeast Asia's pioneer
company which introduced the first public-private partnership (PPP), build-operate-
and transfer (BOT) model in the water and wastewater services industry. The
company was formed in light of the impending water crisis in Olongapo City during
the '90s, and the growing commercial water requirements of the booming Subic Bay
Freeport Zone.

SUBICWATER is a consortium of D.M. Consunji Inc. (DMCI), a Filipino

construction firm; Sembcorp Industries Ltd., (sembcorp) a Singaporean water utility
specialist; the City Government of Olongapo; Subic Bay Metropolitan Authority
(SBMA), the agency that administers Subic Bay Freeport; and Maynilad Water
Services Inc. (Maynilad), the Philippines' largest water concessionaire in terms of
customer base.

The company was granted the exclusive right and privilege to operate, maintain,
and improve the water and sewerage systems of Olongapo City and Subic Bay
Freeport under a 30-year franchise term.

SUBICWATER officially commenced operations in April 1, 1997.

In pursuit of delivering world-class services to customers, SUBICWATER became

the first ISO-certified water utility in South East Asia. At present, SUBICWATER is
certified to comply with ISO 9001:2008 (Quality Management System), ISO
14001:2004+Cor 1:2009 (Environmental Management System), and OHSAS
18001:2001 (Occupational Health and Safety Management System).

D. Plant Facilities


A. Raw Materials
B. Process Flowchart/ Equipment
Water Source

Ground Tank Overhead Tank

Ball Valve Check Valve Ball Valve Check Valve

Automatic Water System

Chlorination System

Refection Tank

Sedment Removal Filter

Activated Carbon Filter

To Household

Ultra Violet Detection

Water for Drinking

C. Finished Product
Being the first has not always been easy. As the company was being set up in
the mid 1990s, the company was met with a lot of skepticism, even with
apprehension, as the idea of a privatized water utility was a thing still unheard of in
this country. SUBICWATER, however, assured the people of Olongapo City and Subic
Bay Freeport that the impending water crisis will definitely be averted, and that the
private-public-partnership (PPP), under a build-operate-and transfer (BOT) setup of
the company, will work for the benefit of the community.

It was a bold statement, especially for a city where water containers of all kinds
and sizes littered the thoroughfares, lying in wait for water-hauling trucks to stop by.
Workers in the former naval base, after punching out from their jobs, fill up smaller
water containers which they bring home for their cooking and drinking. On
weekends, throngs of people flock to where the Old Dam is now located to do their

Some barangays in the northern part of the city, meanwhile, are lucky enough
to get intermittent water supply from the overloaded city treatment plant. The
water coming out from the tap, however, had to undergo further filtration, or had to
be collected and left alone for some time for its impurities to settle. Boiling the
filtered water was usually done to ensure that it is fit for drinking.

Raw water was scarce, water treatment facilities were fully depreciated, and no
adequate funding was available to rehabilitate the dilapidated water system.
SUBICWATER’s promises must have seemed too good to be true back then.

SUBICWATER: Leading the Way

SUBICWATER was given the exclusive right to operate the water and
sewerage systems of the two areas under a 30-year franchise term. This
arrangement was beneficial because the two previously separate systems were
made to complement each other. Aside from guaranteeing a superior level of
service for the consumers, the arrangement also benefitted the government in
the following ways
Olongapo City and the Subic Bay Metropolitan Authority (SBMA), the agency
that governs the Subic Bay Freeport, need not allocate financial and human
resources, yet they would receive lease payments for the entire franchise term.
Aside from lease payments, the two agencies would also receive dividends as
each has a 10% and 20% equity in SUBICWATER, respectively. (Olongapo City,
however, opted to sell its 10% stake in the company to Maynilad Water Services Inc.
or Maynilad in 2013.)
Consumers will be assured of a high level of service as ascertained by the Subic
Bay Water Regulatory Board, an independent body.
The government retains ownership over its water and sewerage facilities, as
these were merely leased— not purchased nor transferred.
At the end of the franchise term, the entire water and sewerage system—all
investments on facilities, including those constructed during SUBICWATER’s
operations— will be turned over to the government in prime condition.
As SUBICWATER strived to deliver world-class services, it became the first water
and sewerage utility in Southeast Asia that was certified to comply with ISO
standards. Customers themselves could attest that services have greatly improved
ever since SUBICWATER took over the operations. The company clearly
demonstrated how a PPP-BOT scheme can revolutionize basic public services such as
water and sewerage services.


A. Ecology and Environment
Water Treatment and Distribution
SUBICWATER relies heavily on raw surface water to supply the needs of the
region. In fact, 99% of its raw water comes from rivers, thereby requiring a
multi-stage treatment process, as opposed to water from deep wells, which
require a minimal disinfection only.

SUBICWATER operates two conventional-type water treatment plants with a

combined daily production capacity of 77 million liters. The output from the
two plants is being augmented by four active deep wells located in various
parts of the franchise area.

In total, the company’s water production capacity is at 84.05 MLD (million liters
per day).

Sewerage Systems
The collection, treatment, and disposal of wastewater in Subic Bay
Freeport are accomplished through seven separate sewerage systems in the
areas of Central Business District, Enron, Binictican, Kalayaan, Boton, Cubi, and
Cubi Hospital.
Overall, the company operates and maintains seven sewage treatment plants
(STPs), 80 kms of sewer pipelines, 1,378 sewer manholes, and 32 sewage lift

In Olongapo City, SUBICWATER offers sanitation services only. The company,

however, has a Sewerage Masterplan completely drawn up and presented to
the public in as early as 2006.

The significant effect on water tariff, and the major traffic disturbance that the
massive sewer pipeline laying would bring, are the major issues that have been
considered in the putting the masterplan in the sidelines.

In the absence of a sewerage system in the city, officials have passed a

resolution prescribing a standard septic tank design and the frequency of septic
tank cleaning to strengthen the implementation of the Code on Sanitation of
the Philippines.


A. Documentation

B. Bibliography