Ayala-led Manila Water Co. Inc. on Friday announced that it has signed a P5-billion term loan agreement with Metropolitan Bank and Trust Co. to finance its capital investment program.
In a disclosure to the Philippine Stock Exchange, Gerry Ablaza, Manila Water president and chief executive officer, said that the loan facility would have tenure of seven years.
“This will be used for capital expenditure and working capital,” he added.
Earlier, Manila Water said it has earmarked P60 billion for its capital expenditure from 2013 to 2017. It is also planning to expand business operations in around 15 cities in the Philippines, hopefully within the year.
At present, the East Zone concessionaire is carrying out several pipe-laying projects in Quezon City, Marikina, Pasig and Taguig, all in Metro Manila.
Some of the projects lined up within its new business plan are the Taguig North Sewer Network 3 Project, which will be the first major sewer network system project to be built by Manila Water since it started implementing its Wastewater Master Plan.
Construction of the project is slated between 2014 to 2016.
The company is also expected to finish the construction of its P6.1-billion sewage treatment plant in Taguig City in September.
The wastewater treatment plant located at Liwasan ng Kagitingan at Kalikasan will service 350,000 residents of Barangay Western Bicutan.
Manila Water services in its East Zone concession area parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong and Rizal province. The company reported an 11-percent increase in its net income for the first semester of the year from higher billed volume and lower operating expenses.
James Konstantin Galvez