As part of the recently concluded Asia Pacific Weeks (apwberlin.de), the Philippine Embassy partnered with the German-Philippine Chamber of Commerce and Industry (GPCCI), the German Water Partnership, and IHK Berlin to organize a seminar on “Modernizing Water Infrastructure in the Philippines” at the Federal Foreign Office on 19 May 2015.  The information seminar, funded under the German Federal Ministry of Economy and Energy’s SME Market Development program, attracted more than 40 participants from government and the business sector, including more than 20 company representatives of German SMEs.

Ambassador Thomeczek recalled that last year, PPP Executive Director Cosette Canilao was a special guest of the German Water Partnership at its Annual General Conference.  That initial contact helped garner further interest to warrant a dedicated information session on the Philippine water sector.  She further noted that “economic growth continues to be city-driven, with 60% of the Philippines’ population living in urban areas.  While cities are centers of innovation, efficiency, and national development, we are cognizant that urban sprawl is also posing significant challenges to the delivery of basic services, including water and sanitation.  This is an important forum where we can discuss how German technology, capital and expertise can be deployed to transform our cities and towns into green, healthy, mobile, and safe places to live.”

Mr. Peter Kompalla, Executive Director of GPCCI, provided the Chamber’s perspective on the Philippine economy, highlighting that the Philippine economy has remained resilient and business confidence remains strong.  He further emphasized that the Philippines is seen as a key growth driver in ASEAN and the broader Asian region.  Mr. Camelo Tompar, CEO of Mactan Rock Industries, provided a local company perspective on opportunities for collaboration, particularly in the tourism/hospitality sector and for the provision of wastewater treatment facilities for industrial operations.  Mr. Gabriel Bautista of the Philippine Embassy provided a water sector overview.  The Embassy highlighted that privatization of the Manila water concessions led to an appreciable rise in service quality  while new PPP projects such as the USD 416 million New Centennial Water Source and the USD 542 million Bulacan Bulk Water Supply have garnered significant investor interest.

During the afternoon session, Dr. Michael Prange, Managing Director of the German Water Partnership (GWP), highlighted possible ways the GWP could support the German Mittelstand (SMEs) in further exploring market opportunities in the Philippines.

Participants learned that economic zones and water districts are also moving towards PPP models.  Water Districts are leveraging the expanding footprint of water concessionaires and an accommodative banking environment to pursue PPP deals for bulk water supply and sewage/sanitation services.  Discussions revealed that many contractors require technologies and project management expertise that cannot be undertaken locally. As a result, participants were made aware of the ample opportunities for German firms to partner with local construction companies, water concessionaires, and water districts.