Maynilad seeks $40 million for capital expenditure

MANILA, Philippines - Maynilad Water Services, Inc., which holds the West Zone water utility concession, plans to borrow $20 million to $40 million from a consortium of local banks to plug its projected two-year (2010-2011) capital expenditure gap of $100 million, Rogelio Singson, president of the MPIC-DMCI-owned water utility firm, said yesterday.

Banco de Oro may lead the consortium, Singson hinted, as “we do a lot with BdO.”

Singson said Maynilad is allocating P6.5 billion to P7 billion for its capex this year, to be funded by a combination of loans and internally generated funds.

Singson said the borrowings would help fund three projects - the P1.2 billion Putatan treatment plant and the construction of two water reservoirs, one in Villamor (which would service the Parañaque area) and another in Pagcor City (which would service the Cavite and Las Piñas areas).

The Putatan plant is designed to produce an initial 50 million liters of water per day (MLD) by May, increasing to 100 MLD by the end of 2010.

The plant will serve over 20,000 households in Muntinlupa.

The Putatan plant will supply one-third of an additional 300 MLD that the Metropolitan Waterworks and Sewerage System (MWSS) is eyeing to augment water supply to Metro Manila.

Maynilad has also been given the go signal by the MWSS to look into the possibility of tapping another 100 MLD from the Laguna de Bay, while East Zone concessionaire Manila Water would provide the remaining 100 MLD.

US firm Pall Corp. designed and installed the water treatment system in the Putatan plant. Impurities, microscopic organisms, and total dissolved solids will be eliminated from the water through dissolved air flotation, microfiltration, reverse osmosis and chlorination.

These processes will ensure that water from the treatment plant meets the Philippine National Standards for Drinking Water (PNSDW) of the Department of Health (DOH).

Singson said Maynilad hopes to bring down its non-revenue water level to 45 percent to 48 percent as part of its mitigation effort this year due to the ongoing drought.

Maynilad had earlier announced that it will spend P314 million to repair leaks in its pipe network system.

Maynilad, which is controlled by Metro Pacific Investments Corp. and DMCI Holdings, said it plans to repair almost 3,000 pipe leakages.