Manila Water eyes 6 projects in India

MANILA, Philippines - Manila Water Corp. is vying for six projects in India together with its Indian joint venture partner O.P. Jindal.

This was learned yesterday from officials of Manila Water led by its president Jose Rene Almendras and chief financial officer Luis Juan Oreta following the firm’s annual stockholders’ meeting.

Yesterday’s meeting saw the election of former Central Bank Governor Jose L. Cuisia, Jr., Takeaki Yamashita and John Eric T. Francia into the company’s board replacing former National Economic and Development Authority chief Cielito F. Habito, Hiromu Nishimura and Leslie A. Bell.

Meeting right away, the new board  announced later a cash dividend of P0.23  per  common share, reflecting a 16 percent  growth in earnings per share for 2009.  While the East Zone water  concessionaire is yet to release its first  quarter figures three weeks from  now,  Almendras indicated that growth  prospects remain good for the company  this year.

Oreta said Manila Water would remain  in the double-digit growth level following  a two  percent increase in bill volume.This,  he said, is despite some factors that  affected the  firm’s financials in the first  quarter including the delay in the  approval of the water  firm’s adjusted  tariff.

For this year, Oreta said Manila Water  will not resort to further borrowings for  its P10 billion capital expenditures.  However, the water firm is already in talks  with some  financial institution about  tapping the market next year to fund 50  percent of its P10  billion capex allocation  for 2011.

According to Almendras, the Indian  joint venture is in the process of pre-qualifying for six projects in the Indian  states of Maharashtra, Gujarat and  Rajashtan.

Oreta said they are looking at two  concession type projects, two bulk water  projects and  two operating and  maintenance contracts.

The two officials said they are also  keeping an eye out for other possible  projects around the region. Oreta said  China and Cambodia are not in focus,  although they remain on the radar of the  water firm.  

Locally, Oreta said Manila Water is  eyeing “a couple” of projects in the South,  which conforms to the firm’s criteria for  urban, densely populated areas.