Manila Water allots P10 billion for capital expenditures

MANILA, Philippines - With the extension of its concession agreement until 2037, Ayala-led utility firm Manila Water Co. Inc. is setting aside P10 billion in the next 12 months to fund its capital expenditures within its concession area.

Manila Water president Rene Almendras said the programmed capital budget is fully covered, pointing out that the company has enough cash.

The company is planning to raise up to $200 million to fund its approved investment plans and its expansion commitments after 2010 in line with continuing efforts to provide better water and wastewater services.

Manila Water has an existing concession in the east zone of Metro Manila with a customer base of around 5.6 million people. Since the start of operations in 1997, the company has increased 24-hour water coverage to 99 percent from 26 percent and reduced water losses from 63 percent to less than 20 percent.

The company also continues to explore potential new water sources and undertakes reliability programs to ensure service continuity as well as mitigate the adverse impact of typhoons and other natural calamities.

Continuing rehabilitation programs are undertaken to further enhance service levels in areas with 24/7 water supply which include Mandaluyong, Pasig, San Juan, Marikina, Pateros, Makati, southeastern part of Quezon City and San Andres and Sta. Ana in Manila.

With 100-percent coverage in these areas, aggressive service expansion programs are underway in Taguig, Antipolo, San Mateo, Rodriguez, Cainta, Taytay and Angono. Manila Water has also started providing water supply to the towns of Baras, Binangonan and Jala-jala in Rizal province.

As of end-September, Manila Water’s customer base has reached 1.07 million households.