Case | HBS Case Collection | August 2000

Manila Water Company (A)

by Michael Beer and Elizabeth Weldon

Abstract

On February 3, 1997, the east zone of the Manila Metropolitan Water and Sewerage System (MWSS) was taken over by the Manila Water Co. (MWC), a newly created joint venture between the Ayala Corp., a large Filipino conglomerate; Bechtel Enterprises, Inc., an American engineering and construction firm; and United Utilities, a British utilities firm. At the time of privatization, MWSS was an inefficient, ineffective, and corrupt government agency. MWC must develop the employees and the assets acquired from MWSS to build a profitable firm. This case describes MWSS, the three partners in MWC,and also introduces Filemon Berba, the new CEO and president of MWC.

Keywords: Change Management; Organizational Change and Adaptation; Horizontal Integration; Privatization; Problems and Challenges; Utilities Industry;

Citation:

Beer, Michael, and Elizabeth Weldon. "Manila Water Company (A)." Harvard Business School Case 401-014, August 2000.