Boracay Water inks P650-M bank loan

MANILA, Philippines - The Boracay unit of Ayala-led Manila Water Co. Inc. has signed a P650-million loan agreement with a local bank to finance its capital expenditures in its concession area.

In a regulatory filing yesterday, Manila Water said Boracay Island Water signed a third omnibus loan and security agreement with Security Bank to finance its capital expenditure to fulfill its service obligations in the tourist island of Boracay in Aklan province.

Boracay Water general manager Ben Manosca said the loan would be used to finance major water infrastructure needed by the island which include a 5.5-kilometer transmission line from the Nabaoy water source to its Caticlan water treatment plant.

“This will increase the water supply capacity in preparation for summer and the (holding of the) Asia Pacific Economic Conference 2015 in Boracay,” he said.

Boracay Water was formed in 2009 through a joint venture agreement with Manila Water and the Tourism Infrastructure Authority and Enterprise Zone Authority (TIEZA).

It is one of the two water utility firms serving potable water to Manoc-Manoc, Balabag and Yapak in Boracay Island. It sources water from the Nabaoy River in mainland Aklan.

Having attained 100-percent water service coverage in its concession area, the company is laying down this year a new sewer network and has pipelined for construction a new sewage treatment plant.

The concessionaire now services 5, 600 connections within Boracay Island. Talks are also underway for possible expansion outside its concession area.

The company is preparing for the three-year construction of the P298-million sewer network that will cover Brgy. Manoc-Manoc and surrounding areas. The 12-kilometer sewer network would supplement the functions of the existing nine-kilometer wastewater treatment network covering Brgy. Balabag and surrounding areas.

In addition 14 lift stations would be constructed to augment the functions of the eight existing ones.

Manosca said the company has also awarded the contract for the design and construction of a new sewage treatment plant (STP) also in Brgy. Manoc-Manoc. The new STP can treat up to five million liters of wastewater per day, aiding the functions of the upgraded Balabag sewage treatment plant which can treat up to 6.5 million liters of water per day.

He said the company is finalizing the detailed design for the construction of the STP so work could commence in December.