Manila Water Company expects its capital expenditures this year to exceed P10 billion as it intends to build infrastructure “in a more significant degree than what we have built last year.”
In a briefing after the firm’s annual stockholders’ meeting on Monday, MWC president Gerardo Ablaza Jr. said they are currently in the middle of discussions with their regulator on what their projects will be this year as part of the rate rebasing negotiations.
Ablaza said that, based on their internal targets, the bulk of capex will go to wastewater infrastucture, mostly sewage treatment plants which is “one area where we still have improvements to make.”
He said that at the end of last year, MWC already had 23 percent coverage.
It is now in the process of building a very large treatment facility in Rodriguez with a capacity of about 150 million liters per day. MWC is looking forward to the activation of the water treatment plan that is mean to serve the expansion areas to the east.
Ablaza said MWC will also spend some money on accelerating its disaster preparedness plans.
The Laguna Lake water supply project is also an important part of the firm’s capex, he said adding that they aim to have it operational in 18 to 24 months and some capital spending will already begin this year.
MWC has just signed an agreement to issue P10 billion in fixed rate corporate notes to finance its capital expenditures for the year.
The firm said the offering was fully subscribed by a consortium of local lenders composed of Metropolitan Bank and Trust Company (Metrobank), Philippine Savings Bank (PS Bank) and First Metro Investment Corporation (FMIC).
“The amount, which is the largest that the company has borrowed to date, is a strong affirmation of Manila Water’s financial and operational capability from the financial community,” MWC said.
Solely arranged by First Metro Investment Corporation, the notes will be issued in two tranches. The first tranche is a 10-year note with a call option on the 7th year while the second tranche is a straight 5-year note. The issue date of the corporate notes will be on April 8, 2011.
The proceeds of the issue will be used to partly fund Manila Water’s investment plan for 2011, which includes water and wastewater coverage expansion, new water source development, and various systems enhancements.
These investments will directly support the attainment of the company’s regulatory targets and assure consistent delivery of 24/7 water services.
Meanwhile, MWC announced the opening of its Boracay Island Water Company’s world-class water treatment in the tourist island thereby insuring the sustainability of the ecosystem of the island resort.
Island Water Company’s world – class wastewater treatment facility.
Miraflores congratulated and thanked Boracay Island Water for taking the challenge of managing the difficult environment in the island and successfully implementing the P78 million project, commending Manila Water for solving the long-standing water and wastewater problem in Boracay in what he said is another successful public-private sector partnership.
