The Metropolitan Cebu Water District (MCWD) is fighting for its financial survival. After losing P760 million in 2025, the utility is implementing an aggressive plan to repair leaking pipes, improve financial management, and ensure a stable water supply during the next drought.
High Costs and Wasted Water
MCWD's new board chairman, Ruben Almendras, stated that the utility reached a breaking point because production costs exceed customer charges. For years, the district relied on cheap groundwater, but as Cebu expanded, those wells depleted. To meet demand, MCWD had to purchase expensive water from private suppliers and desalination plants.
In early 2025, the financial impact became evident: the utility lost P7 million in March alone. According to government auditors, income dropped from over P48 million in 2023 to just P5 million in 2024.
Stopping the Leaking Money
A key part of the recovery plan is addressing Non-Revenue Water (NRW)—treated water lost through old, leaky pipes or stolen via illegal connections. Currently, about 29 percent of MCWD's produced water never generates revenue; it literally seeps into the ground.
To fix this, MCWD is taking several steps:
- Dividing the City: The network is being split into 10 smaller zones to enable faster leak detection.
- Holding Managers Accountable: District managers will receive incentives based on water savings.
- Better Metering: New meters will track water inflow versus actual household consumption.
The goal is to reduce water loss to 25 percent by year-end and eventually below 20 percent.
Preparing for El Niño
This turnaround is critical. Experts from Pagasa indicate a 79 percent chance of an El Niño dry spell starting later this year, which could leave Metro Cebu short by 43,000 cubic meters of water daily.
To prepare, MCWD is drilling new wells and completing a major pipeline in Lapu-Lapu City. Once the project with Vivant Water is finished, a desalination plant will provide an additional 20 million liters of water daily to the region.
What This Means for You
For Metro Cebu families, MCWD's financial recovery translates to more stable water pressure and reliable supply during hot weather. "We are going to be profitable this year," Almendras promised. By extending payment terms to suppliers and tightening its budget, the utility aims to fully recover within three years, ensuring one of the country's fastest-growing regions has the water it needs.
