Maynilad mulls P5-billion loan to fund capex

MANILA, Philippines - West Zone concessionaire Maynilad Water Services Inc. is planning to borrow an additional P5 billion, or its dollar equivalent, next year to partially fund its P40-billion capital expenditure outlay for the next three years.

This was revealed yesterday by Randolph T. Estrelllado, chief finance officer of the Metro Pacific-DMCI-led Maynilad. Estrellado said the amount will be sourced through a loan syndication – either local or foreign.

He said this will be in addition to the $265 million which Maynilad has already secured to finance part of the P40- billion capex budget.

The three-year budget is for Maynilad’s regular water distribution and services program and to repair, rehabilitate and reduce its water losses and bring down its non-revenue water (NRW) percentage from the current 53 percent to 40 percent by 2012.

Aside from this, Estrellado said Maynilad, along with East Zone concessionaire, the Ayala-led Manila Water Corp., is eyeing a $500-million official development assistance (ODA) loan from the World Bank.

Each concessionaire will be getting $250 million to be used for sewerage improvement. The World Bank has sent a team to conduct a feasibility study of the proposed loan. Actual negotiation may take some time, Estrellado said, adding that the loan will be available up to 2017.