Maynilad Water Services Inc., a unit of the infrastructure holding firm of business mogul Manny Pangilinan, has increased its five-year investment cost to P70 billion from P50 billion to do more wastewater and sewerage projects.
David Nicol, the chief financial officer of Metro Pacific Investments Corp., said that the company is allocating a five-year capital expenditure of P70 billion, higher than the P50 billion the firm committed last year.
This, according to Nicol, is from the plan of Maynilad to work on much more wastewater and sewerage projects, since the company’s assumption is that the government will not finance it over a 30-year period.
“We will have to finance it ourselves,” he added.
Nicol explained that the expectation a long time ago was that the government will get overseas development assistance financing and spread it out over 30 years.
“Instead we will bring it into the concession life. We have support from the banks to provide debt to do it, but we have to get the agreement of our regulator,” Nicol said.
“We filed a formal business plan with the regulator and then they are reviewing that plan,” he added.
From 8 percent, Nicol said that Maynilad intends to grow its wastewater coverage to 32 percent over the next five years.
In the first quarter, the billed volume of the West Zone concessionaire went up 2 percent, as Maynilad customers climbed 6 percent to 1.08 million as of end-March year-on-year.