Maynilad allots P17.3 B for infra

MANILA, Philippines - West Zone water concessionaire Maynilad Water Services (Maynilad) is investing P17.3 billion this year to carry out water and wastewater infrastructure projects in its contract area.

Out of the allocation, P6.5 billion will be spent for wastewater management projects that include the construction of wastewater treatment plants and conveyance systems in Cavite and central Manila.

The company will spend P3.2 billion for its non-revenue water reduction program. This covers active leakage control, primary line assessment, selective pipe replacement and district metered area management.

Maynilad is allocating P2 billion for the development of water sources including the second phase of the Angat-Umiray Transbasin Tunnel and the rehabilitation and upgrading of existing facilities in the Angat and Ipo dams.

To ensure sufficient water supply and pressure in the West Zone, Maynilad is rehabilitating and upgrading boosters, pumping stations and reservoirs for which it will spend P1.5 billion.

Maynilad is allocating P1.4 billion for service expansion projects in portions of Caloocan, Cavite, Las Pinas, Muntinlupa, Paranaque and Valenzuela. Meanwhile, P1.3 billion has been allocated for primary lines in Caloocan, Cavite and Pasay.

The company will also upgrade its water treatment plants for which it will spend P480 million, while shelling out P290 million for the modernization of its data management and information systems. Around P650 million will be spent for other operation support programs such as lot acquisitions for new facilities.

Maynilad has reduced its capital expenditure allocation for business years 2013 to 2017 to P67 billion from its original budget of P78 billion to get the International Chamber of Commerce (ICC) to rule in its favor in the arbitration case with the Metropolitan Waterworks and Sewerage System (MWSS) for a base rate hike.

 “Despite having recast our five-year investment program, our planned capital expenditures for the West Zone will still enable us to meet our service obligations to our customers and the government,” said Maynilad President and CEO Ricky Vargas.

The ICC, in a decision dated Dec. 29, ruled in favor of Maynilad’s alternative rate rebasing adjustment that would result in a 9.8 percent increase in the 2013 average basic water charge of P31.28 per cubic meter, inclusive of the P1 currency exchange rate adjustment that the MWSS incorporated into the basic charge.

This translates to an average increase of P3.06 per cubic meter.

To get the ICC to approve a rate hike, Maynilad opted to drop several water sourcing projects, while promising fulfill its obligations within its concession area.

Maynilad is willing to implement the approved increase in its basic charge on a staggered basis for three years to minimize the impact on its customers.

The staggered implementation of the increase in the basic charge would still have to be approved by the MWSS board. Maynilad hopes to implement the basic charge hike beginning this year.

Maynilad chief financial officer Randolph T. Estrellado said the company had already submitted on Jan. 8 to both the corporate and regulatory offices of the MWSS its proposal for a staggered implementation of the increase in its basic charge.

Maynilad services the west zone of Metro Manila covering Manila (all but portions of San Andres and Sta. Ana), Quezon City (west of San Juan River, West Ave.), EDSA, Congressional, Mindanao Ave., northern part from the districts of the Holy Spirit and Batasan Hills, Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon, cities of Cavite like Bacoor and Imus and towns of Kawit, Noveleta and Rosario.

Maynilad is co-owned by Pangilinan-led Metro Pacific Investments Corporation (MPIC) and Consunji-controlled DMCI-Holdings Inc.