CLARK Water Corp. (CWC), a wholly owned subsidiary of Ayala-led Manila Water Co. Inc., has secured a bank loan amounting to P1.15 billion from Rizal Commercial Banking Corp. (RCBC) for its capital spending program.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Manila Water said Clark Water has signed a term loan with RCBC and proceeds of the loan “will be used to partially finance Clark Water’s capital expenditure program.”
Clark Water earlier said that it would invest P3.93 billion in capex until 2040, the end of its 40-year concession contract. Of the total capex, P1.06 billion will be spent over the next four years.
The capital investment for the whole concession term ending in 2040 will be used for improvement of the company’s various water and used water facilities in order to promote the freeport zone as an ideal business hub for multinational companies, Clark Water has said.
The company is the concessionaire of Clark Development Corporation under a 40-year contract for the construction, management, operation and maintenance of the water and wastewater facilities in the concession area.
It provides water and wastewater services at Clark Freeport Zone in Pampanga.
Clark Water has programmed P300 million in capital expenditure (capex) for this year, nearly half of which will be spent to develop new water sources for its service area.
It said majority of this year’s budget will be allocated to building and commissioning new water sources such as deep wells and infiltration wells.
Clark Water is also planning to construct new water treatment facilities, storage tanks, and booster facilities, while upgrading and refurbishing existing facilities.
Besides Clark Water, Manila Water has two other operating subsidiaries outside its main concession area located in Laguna and Boracay.
Manila Water primarily provides water and wastewater services to the east zone concession area covering the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina; most parts of Manila and Quezon City; and some parts of Rizal Province.