Manila Water Co. Inc., through its Singaporean subsidiary Manila Water Pacific Pte. Ltd. (MWAP), is pursuing a demonstration project in Indonesia.
The Ayala-led utility firm said MWAP has signed a memorandum of understanding (MOU) with PDAM Tirtawening Kota Bandung to take on a demonstration task for its non-revenue water project in Bandung City, Indonesia.
PDAM is a water utility firm owned and controlled by the regional government of Bandung City in West Java, Indonesia.
The deal states that MWAP will be working on the demonstration project for water reduction in Bandung City to help PDAM implement other cooperation schemes for the development of PDAM services.
“MWAP and PDAM Bandung intend to cooperate to undertake the demonstration project,
on an exclusive basis, towards the successful realization of the cooperation scheme,” Manila Water said in a statement on Friday.
“The execution of the MOU is in line with Manila Water’s strategic objective to pursue expansion projects and investments outside of the East Zone Service Area,” it added.
Aside from the Indonesian project, MWAP is pushing its ventures in Vietnam, recently acquiring a 24.5 percent stake in Cu Chi Water Supply Sewerage Company Ltd. for around $7 million (about P328.58 million), while having existing 49-percent equity stake in Thu Duc Water B.O.O. Corp. and 47.35-percent interest in Kenh Dong Water Supply Joint Stock Company.
Flat 9-month net income
Also on Friday, the company announced it booked P4.606 billion net income in the first nine months of the year, which hardly moved from the P4.549 billion the same time last year.
Revenues, on the other hand, inched up by 4 percent to P12.69 billion from P12.207 billion in the same period in 2014.
Billing volume edged up by 2 percent to 515.2 million cubic meters (mcm) from 503.8 mcm the same time last year.
Manila Water’s concession areas are East Zone (Metro Manila and Rizal), Boracay, Cebu, Clark, Laguna and Vietnam (Thu Duc and Kenh Dong).
Water service connections also improved slightly by 3.66 percent in January to September to 1.076 million households from 1.038 million a year ago.
This consists of water service connections in East Zone Area (970,012 households), Boracay (6,353), Clark (1,955) and Laguna (98,352).
Last September, Manila Water raised ¥40 billion funds (about P15.57 billion) from a seven-year loan facility with three Japanese banks—The Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Bank Ltd., and Sumitomo Mitsui Banking Corp.
The loan was for the water firm’s capital expenditures (capex), as well as the improvement of its sewerage plants and lines.
For 2015, the company has budgeted P5 billion capex for the East Zone, while it plans to allocate more than P10 billion in 2016 and beyond.
Ayala-led Manila Water was incorporated and entered in a concession agreement with Metropolitan Waterworks and Sewerage System (MWSS) in 1997. The agreement was renewed in 2009, stretching it another 15 years to 2022.
The concession agreement granted Manila Water the use of land and operational assets of MWSS, and the authority to distribute and service water to the East Zone, which comprised of Manila, San Juan, Taguig, Pateros, Antipolo, Taytay, Jala-Jala, Baras, Angono, San Mateo, Rodriquez, Marikina, Pasig, Mandaluyong, Makati and most of Quezon City.
Other than the East Zone, Manila Water supplies water in Cebu, Laguna, Boracay, Clark, and Vietnam.