NETS & CUSP Co. (UPOU Enterprise Concept)


[Caveat: This enterprise concept is part of a requirement from the University of the Philippines Open University. This was under the MOOC (Massive Open Online Courses) – Social Entrepreneurship, © 2023]


NETS & CUSP Co.

VISION

Nets & Cusp Co. is a sustainable, affordable, and innovative “for profit, mission-driven” enterprise, which aims to tap the Water Economy in the Philippines. It aims to provide Level 1 and Level 2 Water Systems in areas where water provision is highly needed, by partnering with Community-Based Organizations (CBOs).

BACKGROUND AND RATIONALE

Experts say that by 2030, global fresh water demand will outstrip supply by 40%. This means that shortages will become more common, as the growing population would demand for more water provision.1 According to the National Water Resources Board (NWRB), about 11 million Filipino families still have no access to clean water.2 This is also echoed by UNICEF data, which states that 91% of the country’s estimated 100 million population have access to at least basic water services; but access is highly inequitable across the country, with regional basic water services access ranging from 62% to 100%.3

This 2023, the recent establishment of Water Resource Management Office (WRMO), under the Department of Environment and Natural Resources (DENR) and the Office of the Philippine President, is a positive fruition on the issue. It is said to be a prefiguration of the Water Resources Department. 4

Nets & Cusp Co. aims to tap into this gap in the Water Economy of the Philippines, and thereby allow a certain percentage of the 11 million families to enjoy a better standard of living through water access.

DESCRIPTION OF PRODUCT OR SERVICE

In the Philippines, higher-income brackets rely on private waterworks, whereas lower-income brackets rely on vended water. This makes lower-income brackets to pay much higher water prices due to the lack of water access. This is one of the price gaps, which causes inequitable practices, that some entrepreneurial ventures must reconsider.

“Nets & Cusp” is a reference to the interdependence of “green water” and “blue water” resources of the country. Green water is defined as the water transpired by the plant that comes from rain water stored in soil. Blue water is the water in our surface and groundwater reservoirs. 5 Understanding both, including other tangential types like grey water, are needed in the effective resource management of water.

Image3. Hidropolitik Akademi (Blue and Green Water)

GREEN WATER
Although the main focus of the enterprise is Water Service, the protection of “green water” resources is an utmost concern since the overall Water Economics calls for it. Thus, the exploratory use and improvement of pre-existing Coconuts and Bamboo, which have high water holding capacity, in the community shall also be explored with farmers and community members. These shall help in minimizing the denudation of forest cover. The use of biochar from coconuts and bamboo, as water filtering component, is a point of interest for additional income for farmers and community members.

            BLUE WATER
            Some sources of groundwater must be considered as well, by applying updated technology on sustainable percolation techniques. Surface run-off is a concern for most blue water, thus sustainable uses of groundwater and other blue resources are considered. The ecosystem’s health and overall human well-being are also products of sound practices in water resources assessment.6

            NETS & CUSP Co.
The Service Provision will initially cover Level 1 and Level 2 Water Systems, and with future goals of transforming into a Level 3 Water System through agglomeration and government support.

Levels of Water Systems in the Philippines
Level IStand-alone water points (e.g. handpumps, shallow wells, rainwater collectors) serving an average of 15 households within a 250-meter distance
Level IIPiped water with a communal water point (e.g. borewell, spring system) serving an average of 4-6 households within a 25-meter distance
Level IIIPiped water supply with a private water point (e.g. house connection) based on daily water demand of more than 100 liters per person.

Water, as one of the inelastic products in economics, is being touted to be declared as a global common good against the backdrop of an imminent water crisis by 2030. This, along with the other reasons, makes Nets & Cusp Co. a timely and relevant enterprise.

BENEFITS TO STAKEHOLDERS

Consumers – Stakeholders who are challenged with water provision will be given an opportunity to have access to water resources, and improve their standard of living. The providence of water can open new frontiers for local business developments.

Community – With partnerships with Community-Based Organizations (CBOs), the goal of the enterprise is to give back to the community. It aims to empower community members by providing livelihood and thereby up-skilling them for the long-haul.

Producers – Since the enterprise also covers “green water” resources, the protection and eventual use of forests and reservoirs as water sources can be tapped through farmer organizations. The use of high-value crops for the water management practices can be tapped. The coconut and bamboo farmers can benefit from the added value of biochar production in their farms.

VALUE PROPOSITION

The value proposition of the enterprise, as stated in the vision, is to be Sustainable, Affordable, and Innovative. It aims to provide Level 1 and Level 2 water systems to areas where water provision is needed, subject to location-scoring analysis of possible communities. Sustainable: A Systems Approach is always useful for enterprises that cover utilities like water. The enterprise will serve all stakeholders who consume water, especially its employees by providing stable livelihood opportunities. Affordable: Since the goal of the enterprise is to lend a hand to the community, the affordability of the water resources is a priority. Innovative: Water is a basic raw material for most industries, especially food industries. Thus, exploratory value-adding of products (freezing and blasting facilities, etc.) can be done in the future, subject to feasibility studies.

Resources:

1. UN Environment Program (2026). Half of the World to Face Severe Water Stress by 2030 unless Water Use is “Decoupled” from Economic Growth. Retrieved on May 26, 2023 from https://www.unep.org/news-and-stories/press-release/half-world-face-severe-water-stress-2030-unless-water-use-decoupled

2. Daphne Galvez (2023). 11 million Filipino families have no access to clean water — NWRB. Retrieved on May 26, 2023 rom https://newsinfo.inquirer.net/1745469/11-million-filipino-families-have-no-access-to-clean-water-nwrb

3.UNICEF Philippines. Two billion people lack safe drinking water, more than twice lack safe sanitation. Retrieved on May 26, 2023 from https://www.unicef.org/philippines/press-releases/two-billion-people-lack-safe-drinking-water-more-twice-lack-safe-sanitation

4. Philippine News Agency. Marcos OKs EO creating water resources management office in DENR. Retrieved on May 26, 2023 from https://www.pna.gov.ph/articles/1200318

5. Ganquan Mao, Junguo Liu, Feng Han, Ying Meng, Yong Tian, Yi Zheng, Chunmiao Zheng. Assessing Green and Blue Water: Understanding Interactions and Making Balance between Human and Nature. Retrieved on May 26, 2023 from https://hess.copernicus.org/preprints/hess-2018-193/hess-2018-193.pdf

Image Resources:

Image1. https://www.istockphoto.com/illustrations/blue-green-logo

Image2. https://www.wateroam.com/uploads/2/8/6/0/28600353/editor/clean-drinking-water.jpg?1603706525

Image3. https://www.hidropolitikakademi.org/uploads/wp/2016/08/848175df74.jpg


[Caveat: This enterprise concept is part of a requirement from the University of the Philippines Open University. This was under the MOOC (Massive Open Online Courses) – Social Entrepreneurship, © 2023]


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