Manila Water secures P200 million loan from BPI

MANILA, Philippines — A unit of Manila Water Co. Inc. has secured a P200 million long-term loan from Bank of the Philippine Islands (BPI) to improve its services in Bulacan.

In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said its subsidiary Bulakan Water Co. Inc. signed a P200 million, 10-year term loan with BPI.

“The proceeds of the loan will be used to finance the refurbishment, expansion, and improvement of the service facilities and the water source and distribution system, and provision of sanitation services in the service area of Bulakan Water,” it said.

Manila Water said Bulakan Water drew a 150-day short-term loan with BPI amounting to P10 million in May last year to finance its capital expenditures.

Bulakan Water provides water facilities and water and sanitation services in the Municipality of Bulakan.

It is owned by Filipinas Water Holdings Corp. – another unit of Manila Water – and Bulakan Water District (BuWD) with an equity share of 90 percent and 10 percent, respectively.

Bulakan Water was incorporated in October 2018, six months after BuWD issued the notice of award to Filipinas Water and Manila Water Philippine Ventures Inc. – Manila Water’s subsidiary for its domestic units outside of the east zon – and two months after a joint venture agreement was signed.

In June 2019, Bulakan Water and the BuWD signed and executed a 25-year concession agreement to provide water and sanitation services in the municipality of Bulakan.

Under the concession agreement, Bulakan Water is committed to finance, design, engineer, and construct new facilities for water and sanitation.

It is also obligated to upgrade existing water and sanitation facilities, including water network replacement and expansion.

It will also operate, manage, and maintain water and sanitation facilities and services, as well as bill and collect tariff for water and sanitation services including a seven-year replacement cycle program.