A unit of Ayala-led utility firm Manila Water Co. Inc. has secured P800-million worth of financing from the Development Bank of the Philippines (DBP) for its Cebu water project that was recently awarded to it.
A disclosure to the Philippine Stock Exchange on Friday showed that Cebu Manila Water Development Inc. (CMWD), a subsidiary of Manila Water, signed a term loan facility amounting to P800 million, with DBP through the Philippine Water Revolving Fund (PWRF).
PWRF is the only water revolving fund outside the United States and Europe, which leverages overseas development assistance with local private funds using a co-financing arrangement between the Philippine government and private banks, according to a website.
“The loan will partially finance the construction of the Cebu Bulk Water Supply Project,” Manila Water further said in its filing with the local bourse.
Six days ago, Manila Water, together with the Cebu provincial government, received the regulatory approval to proceed with the Cebu water project, which involves supplying the water needs of major cities and towns of the province.
In its previous disclosure, Manila Water said that CMWD, the joint venture formed by the Manila Water Consortium Inc. and the Cebu government, received a notice of award for the bulk supply of water to the Metropolitan Cebu Water District.
The project involves a 20-year water purchase agreement for the supply of 18 million liters of water a day during the joint venture’s first year of operation, and 35 million liters of water a day for the years after that.