MANILA, Philippines - East zone water concessionaire Manila Water Company Inc. announced yesterday that it has signed a P5 billion term loan agreement with the Metropolitan Bank & Trust Company to finance its capital requirements.
The term loan facility will have a tenure of seven years.
“This will be used for capital expenditure and working capital,†said Manila Water President and CEO Gerry Ablaza.
The company has allotted P60 billion for its capital expenditure for business years 2013 to 2017.
The Ayala-controlled company is carrying out several pipe-laying projects in Quezon City, Marikina, Pasig, and Taguig.
Some of the projects lined up in its new business plan are the Taguig North Sewer Network 3 Project which will be the first major sewer network system project to be built by Manila Water since it started implementing its Wastewater Masterplan.
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 will 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.
Manila Water services in its east zone concession area parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, and Rizal province.
The company reported an 11 percent increase in its net come for the first semester of the year due to higher billed volume and lower operating expenses.
In its first semester report disclosed to the local bourse late Thursday, the company disclosed that its net income for the period reached P2.9 billion in the first six months of the year against P2.63 billion in the same period last year.
Manila Water’s revenues for the first half of the year rose six percent to P7.63 billion against P7.19 billion year-on-year.
Its operating expenses fell two percent to P2.097 billion from P2.135 billion last year.
Earnings Before Interest Taxes and Depreciation rose 11 percent to P5.791 billion against P5.131 billion year-on-year.