MANILA, Philippines — Razon-led Manila Water Co. Inc. has secured a P15-billion loan from China Banking Corp. to bankroll its capital expenditure (capex) projects.
In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said it signed a 10-year term loan facility with ChinaBank to finance its projects.
Manila Water will maintain a significant level of capex for both its water and wastewater projects in the coming years, Manila Water corporate communication affairs group head Jeric Sevilla, Jr. said in a statement to The STAR.
“This is to ensure the effective rollout of the projects which were affected by the quarantine restrictions during the past years. The focus of these capex projects remain to be water supply security, service continuity and wastewater coverage expansion,” it said.
The projects will support the Metropolitan Waterworks and Sewerage System (MWSS) in ensuring sufficient water supply in the east zone via the MWSS water security master plan, and in complying with the environmental standards of the Department of Environment and Natural Resources (DENR), Manila Water said.
Based on its latest quarterly report, Manila Water said its consolidated capex as of end-June stood at P9.7 billion.
Of the total, 93 percent or P9 billion had been allocated for the east zone concession, which was spent on wastewater expansion, network reliability and water supply projects.
The projects were in line with attaining service obligations outlined in the government-approved rate rebasing service improvement plan.
The balance, amounting to P676 million, went to Manila Water’s domestic subsidiaries. Of the total, P187 million went to Laguna AAA Water Corp.’s water network expansion while Estate Water spent P160 million for its greenfield and brownfield projects. The balance went to the remaining subsidiaries for their various projects.
As of end-June, Manila Water’s service coverage in the east zone had reached 1.132 million water service connections, covering 7.4 million residents in the eastern part of Metro Manila and the entire province of Rizal.
Of the total number of connections, 95 percent or 1.077 million are domestic customers while five or 54,399 are commercial and industrial customers.
“While Manila Water is committed to continue to upgrade existing and construct new facilities to ensure service continuity in the East Zone, it is more critical to search and develop alternative water sources to be able to meet the ever-increasing demand in our service area,” Manila Water president and CEO Jocot de Dios said.
The company is working with the MWSS and the National Water Resources Board to develop new water sources.
Under construction is the East Bay Water Treatment Plant (WTP) that will draw water from the eastern part of Laguna Lake, considered the cleanest portion of the lake.
The East Bay WTP is part of the East Bay Water Supply System Project that seeks to expand Manila Water’s services to more towns in Rizal province.
Components of the P2.7-billion WTP project include an eight-million-liter capacity reservoir, an intake structure, pumping station, and water treatment plant using dissolved air flotation system, multi-media and granular activated carbon filters as well as reverse osmosis system.
Manila Water serves the east zone, covering parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, Quezon City, portions of Manila as well as several towns in Rizal.
Last year, the company signed a revised concession agreement with the MWSS that allows it to serve the east zone until 2037.
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