MANILA, Philippines - East Zone Water concessionaire Manila Water Co. Inc. has signed an agreement with the International Finance Corp. for a $100-million term loan to finance its expansion program.
The loan, with a tenor of 18 years, is Manila Water’s fourth loan facility with the IFC since 2003.
The company said the loan is expected to partly finance the construction of water and sewerage treatment plants as part of its capital expenditure program, enabling the company to meet its service obligations under its concession agreement with the government.
Manila water is currently carrying out various pipe-laying activities in its concession area.
Manila Water president and CEO Gerry Ablaza said the company has allotted P60 billion for its capital expenditure for business years 2013 to 2017.
“The capex plan from 2013 to 2017 is approximately P60 billion but this is still subject to MWSS (Metropolitan Waterworks and Sewerage System) approval in the current rate rebasing process.
The Ayala-led company is carrying out several pipe-laying projects in the cities of Quezon City, Marikina, Pasig and Taguig.
“This loan will be part of the funding sources for the capital expenditure plan,†said Ablaza.
Some of the projects lined up in its new business plan are the Taguig North Sewer Network 3 Project which would be the first major sewer network system project to be built by Manila Water since it started implementing its Wastewater Master Plan.
Construction of the project is slated between 2014 to 2016.
The company is also expected to finish the construction of its P6.1 billion sewage treatment plant in Taguig City in September.
The wastewater treatment plant located at Liwasan ng Kagitingan at Kalikasan woud service 350,000 residents of Barangay Western Bicutan.
Manila Water is also planning to expand its operations in around 15 cities in the Philippines, hopefully within the year.
These are cities with a population concentration of at least half a million, which would provide the company the critical mass for providing efficient water service.
The company is also planning to implement new projects within the year.
Manila Water services the East Zone concession area which include parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, and Rizal province.