Manila Water Co. (MWC) signed a 10-year term loan facility with Land Bank of the Philippines (Landbank) amounting to P7 billion.
The loan would be utilized for the company's water improvement projects and programs.
Manila Water said that the projects would address the water crisis and the heavy reliance on Angat and La Mesa Dam, as well as the Cardona Treatment Plant.
The CAPEX investments include the Calawis Water Supply System and the East Bay Ph1 Water Supply System Initiatives to provide an additional 80 million liters per day (MLD) and 50 million liters per day (MLD), respectively.
MWC also planned on fixing certain aqueducts in the east zone.
MWC also inked another 10-year term loan with Metropolitan Bank and Trust Co. (Metrobank) for P10 billion.
Manila Water inks P7-B deal with Landbank for expansion
At a glance
Razon-led Manila Water Co. Inc. has secured a term loan facility from the state-lender Land Bank of the Philippines (Landbank) to support its capital expenditures (CAPEX).
In a disclosure to the Philippine Stock Exchange on Wednesday, Dec. 20, Manila Water said the utility signed a P7 billion loan from Landbank, which will be paid within 10 years.
The CAPEX projects are said to address the ongoing El Niño that is foreseen to last until next year.
Significant investments include the Calawis Water Supply System and the East Bay Ph1 Water Supply System Initiatives, Manila Water said.
These projects are also expected to provide an additional 80 million liters per day (MLD) in Calawis and 50 million liters per day (MLD) in the East Bay.
Dittie L. Galang, Manila Water corporate communications head, said that the investments would pose favorable effects to the concessionaire.
“The Marikina Portable Treatment Plant (PTP), other deep wells, and other possible contingency and augmentation measures will be further ramped up as a result [of the projects],” she said.
Galang also noted that the initiatives would help mitigate the water crisis and the heavy reliance on Angat and La Mesa Dam, as well as the Cardona Treatment Plant.
“Given the peak water demand during the dry season, especially considering the ongoing El Niño, these initiatives are given the utmost importance because they will reduce dependence on the current water supplies,” Manila Water explained.
Aside from the two water supply system projects, the water co. is also planning on fixing certain aqueducts in the east zone by preparing the reliability lines through the Novaliches-Balara Aqueduct 4 and the Angat Water Transmission Improvement Project (AWTIP) Tunnel 5.
Moreover, Manila Water has been working on three sewerage treatment plants and sewer networks.
“[This would serve] parts of Mandaluyong, San Juan, Quezon City, Antipolo, San Mateo, and Rodriguez in Rizal, the San Mateo-Rodriguez Sewerage System, the Hinulugang Taktak Sewerage System Project, the Mandaluyong West Sewerage System, and the North and South Pasig Sewerage Systems,” Galang elaborated.
Meanwhile, MWC disclosed a 10-year loan with the Metropolitan Bank and Trust Co. (Metrobank) amounting to P10 billion last week.
In 2022, the company garnered a CAPEX total of P20.6 billion, the company’s third-highest record for its expenditure budget.