Maynilad taps JICA, Japan banks for P10.8-B loan

MANILA, Philippines - Officials of Metro Pacific Investments Corp. (MPIC) are set to join President Duterte in his upcoming visit to Japan in June to sign a loan agreement for MPIC’s water business.

“We’re signing some agreements in Tokyo,” MPIC chairman Manuel V. Pangilinan said.

Asked for further details on the agreements, MPIC director and Maynilad Water Services president and CEO Ramoncito Fernandez said the West Zone concessionaire is expected to sign a syndicated loan amounting to P10.8 billion.

“Proceeds from the loan will be used for our water and wastewater capex of Maynilad,” Fernandez said.

According to the official, 70 percent of the loan will come from the Japan International Cooperation Agency (JICA), while 30 percent will come from three Japanese private banks Sumitomo, Bank of Tokyo-Mitsubishi and Mizuho.

Fernandez said the JICA loan has a 17-year term with a five-year grace period.

“(Signing will be) first week of June when the President will be there so hopefully together with the Prime Minister of Japan, we will have them as witnesses,” Fernandez said.

Maynilad is spending P13.2 billion for its water and wastewater infrastructure projects this year.

Bulk or about P8.2 billion of this year’s capital expenditures will go to water infrastructure projects to ensure sufficient water supply and pressure in the West Zone.

Nearly P4.2 billion has been set aside for improvement works in its water treatment plants, construction and upgrade of pumping stations and reservoirs, laying of primary pipelines for water service expansion and enhancements of common purpose facilities.

Some P4 billion will be allocated for Maynilad’s non-revenue water reduction program, which covers meter management, leak repairs, pipe replacements and district metered area management.