West zone concessionaire Maynilad Water Services, Inc. submitted an application for the extension of its concession agreement to the Metropolitan Waterworks and Sewerage System (MWSS).

In the application, the company requested an operating extension from July 31, 2037, to Jan. 21, 2047 to align the concessionaire’s 25-year legislative franchise.

The Revised Concession Agreement (RCA) would provide Maynilad the right to operate within the jurisdiction of the MWSS.

The position paper, which was dated Oct. 12, said that the appeal coincides with Maynilad’s goal to obtain affordable water security.

Maynilad said the extension would also mean a longer cost recovery period through tariffs.

According to the utility firm, the appropriate one-time equivalent tariff rate increase could be reduced from 58.56 percent to 35.61 percent.

Additionally, the RCA approval would also mean that the concessionaire would generate an accelerated and massive capital expenditure (CAPEX) implementation as well as a service improvement program.

This is also known as the Accelerated CAPEX Program, allowing Maynilad to provide higher water and wastewater service levels to consumers within the next four years.

The program included a five-year schedule of over 1,107 projects as well as handing out more than P222 billion worth of project contracts.

Among the budget for the settlements, the program would also disburse around P163 billion between 2023 and 2027.

This will exceed the total CAPEX distributions of more than P141 billion between 2007 to 2022, which followed the 15-year period.

Other than the planned implementation of the CAPEX program, Maynilad wrote its service obligation improvements to support its appeal for a 25-year extension.

The company said that in four years, around 700,000 people will gain access to potable water, while 103,084 new customers can avail of water services.

Subsequently, domestic and non-domestic consumers are expected to experience a water pressure estimated at seven pounds per square inch (psi) for the whole day.

Non-revenue water or water losses will be solved and 585 million liters per day is aimed to be recovered.

Another part of their improvements is said to treat an additional 122 million liters per day (MLD) of sewage water and expand their coverage to five more cities.

Finally, through the accelerated CAPEX program, the MWSS will receive aid in their strategic Kaliwa Dam initiative.

Because of this, Maynilad projects, such as the construction of the Water Treatment Plant in Rizal and the distribution line traversing to Laguna de Bay will help strengthen the Kaliwa Dam’s capacity and enhance the water supply in Metro Manila during the climate change.

Maynilad also seeks an additional 10 years to further expand sewerage coverage from 76 percent in 2037 to 88 percent in 2047.

The concessionaire also planned to improve their services in the west zone in line with the increase in population, density, and complexity of the company’s reach. (Gabriell Christel Galang)