Manila Water seeks investment opportunities in China, Indonesia

Ayala-led Manila Water Corp., the water concessionaire for the eastern zone of Metro Manila, is exploring investment  opportunities in Indonesia and China as part of its ambitious expansion program.

 “We continue to look at other areas in Asia particularly in Vietnam, India, China and Indonesia for future investment sites,” said Manila Water chief finance officer Luis Juan B. Oreta.

Oreta said the company is looking at small cities in China and keen on joining water privatization projects in some parts of Asia.

In July, Manila Water bagged a $15 million five-year water supply development and management contract in Ho Chi Minh City in Vietnam.

Manila Water intends to expand service by another 50,000 households from its current one million households. 

The company has earmarked a total of P187 billion for its capital expenditure programs until 2022, the end of its concession period. If the concession agreement is extended by another 10 years, Manila Water would need to spend P163 billion more. 

The government approved “in principle” a 10-year extension of the concession agreement of the two Metro Manila water distributors to keep their existing  rates while increasing service expansion and quality.

In spite of the deferment of tariff rate adjustments, Manila Water is still seen to post double-digit growth in revenues this year, albeit lower than 2008 level.

Manila Water is looking for new water sources aside from Angat Dam in Bulacan province from where Metro Manila gets 97 percent of its water supply.  It is currently aggressively expanding service to reach fringe areas of Taguig, Antipolo, San Mateo, Rodriguez, Cainta, Taytay and Angono.