Manila Water invests P23.6 B on pipe rehab

MANILA, Philippines - East Zone water concessionaire Manila Water Co. Inc. used up almost half of its P50 billion allotment for its capital investment program to replace old and leaking pipes since becoming the east zone concessionaire in 1997.

In a statement, the water company said it has so for far spent P23.6 billion of the programmed capital investment for the rehabilitation of pipes in its area of operation.

As of the end of 2011, Manila Water has laid 4,156 kilometers of pipelines and has brought down water losses from 63 percent in 1997 to the present level of 11 percent.

“The pipe program covers the replacement and laying of new tertiary, secondary and primary lines that will ensure increased reliability and access of water to more people,” the company said in the statement.

Manila Water earlier announced that beginning July 28, it would implement a water rate increase of P0.39 per cubic meter.

The company said this is due to the adjustment in the Foreign Currency Differential Adjustment (FCDA) as approved by the Metro Manila Waterworks and Sewerage System (MWSS).

This adjustment is based on the exchange rate of $1 to P42.70 and JPY1 to P0.5253.

The FCDA component of the water bill will be adjusted from 1.71 percent to 3.19 percent of the basic charge.

The FDCA is as a tariff mechanism formulated to account for foreign exchange loses or gains arising from the payment by Manila Water of concessional loans and foreign currency-denominated borrowings of the Metro Manila Waterworks and Sewerage System (MWSS) as well as loans of Manila Water for service expansion and improvement of its services.

It said the tariff adjustment has no impact on the projected net income of the company.

Manila Water published a notice last Friday which is expected to be effective 15 days after publication.

The adjustment in FCDA was approved by the MWSS through a board resolution dated June 28, 2012.

Manila Water provides water and wastewater services to the following areas: Mandaluyong, Pasig, San Juan, Marikina, Pateros, Taguig, Makati, southeastern part of Quezon City, San Andres and Sta. Ana in Manila, as well as several towns of Rizal province which include San Mateo, Rodriguez, Antipolo, Cainta, Angono, Baras, Binangonan and Jalajala.

Manila Water has submitted to the MWSS its new business plan for 2013 to 2017. Its current rate rebasing period ends this year.

If approved by the MWSS, Manila Water is expected to have new tariff rates by January. Discussions between the water firm and the regulatory body are expected to take place in the next two months.

Every five years, water concessionaires in Metro Manila file their business plans for approval by the MWSS. These plans contain the tariff rates imposed on customers as well as service and investment commitments.