Manila Water signs P10 billion term loan with Metrobank

MANILA, Philippines — East zone concessionaire Manila Water Co. Inc. has closed a P10 billion term loan facility with Metropolitan Bank and Trust Co. to partially fund its projects.

In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said the loan facility would last for 10 years.

“The loan will be used to partially finance Manila Water’s capital expenditure projects,” the company said.

Based on its latest quarterly financial report, Manila Water said its group capital expenditures decreased by 18 percent at the end of the third quarter at P11.1 billion.

It added that P9.5 billion or 86 percent of the amount accounted for by the East Zone Concession.

“Majority of the Eadst Zone Concession’s capital expenditures were spent on wastewater expansion, network reliability and water supply projects in line with attaining service obligations outlined in its government-approved Rate Rebasing Service Improvement Plan,” Manila Water said in its quarterly report.

It added that the projects will be financed by internally generated funds and debt that are ably supported by the company’s strong balance sheet.

In contrast, total capital expenditures of the company’s domestic subsidiaries amounted to 14 percent or P1.6 billion of the total capital expenditures.

Estate Water spent P718 million for its greenfield and brownfield projects, while the balance was taken on by the remaining subsidiaries for their various projects.

In the first nine months, Manila Water registered a 61-percent jump in its net income to P7.26 billion on the back of higher tariff coupled by an increase in water usage in its covered areas.

Total revenues went up by 39 percent to P23.14 billion from P16.65 billion.

The company attributed the higher revenues to the 37-percent increase in average tariff, four percent growth in billed volume, and higher cross border charges in the East Zone concession.