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THE Development Bank of the Philippines (DBP) will borrow funding
from the World Bank to finance the rehabilitation projects of
Maynilad in a move to reduce non-revenue water.
The DBP, a government financial institution,
will borrow $125 million from the Washington-based lender and use it
to lend directly to Maynilad Water Services, Inc., which will
implement the project.
The WB said the government of the Philippines
would provide the sovereign guarantee for the loan.
The project includes construction of hydraulic
areas at a cost of P5.24 billion; the establishment of district
metered areas, P3.28 billion, and the installation of about 175,000
new service connections to new consumers in the existing area, the
expansion areas and unserviced areas, P900 million.
The project will be implemented over a four-year
period starting July 1, 2008 through June 30, 2012.
The World Bank estimated that a total of 3.45
million low-income consumers will benefit from added pressure as it
will increase water use and lower the risk of contamination.
The international lender also said DBP will
ensure that MWSI implements the project in accordance with legal
agreements. DBP will engage an independent consultant to verify
technical details, confirm and certify achievement of output
required for output-based disbursements, and monitor overall project
implementation such as reduction of non-revenue water (NRW).
Maynilad supplies more than 2.1 billion liters
of water a day to approximately 6 million of the 8 million
population covered by its concession.
The company estimated that about 67.6 percent of
Maynilad’s sales are nonrevenue water due to antiquated
infrastructure delivery, leakage and pilferage.
Maynilad holds MWSS’ 25-year west zone
concession, which cover parts of the cities of Manila, Pasay, Parañaque,
Kalookan, Muntinlupa, Las Piñas, Valenzuela and Quezon. It also
sells water in Cavite City and the nearby towns of Bacoor, Kawit,
Noveleta, Rosario, and Imus in Cavite province.
Last year, the MWSS turned over an 84-percent
stake in Maynilad to DMCI-Metro Pacific Water Co., the consortium
formed by conglomerates DMCI Holdings Inc. and Metro Pacific
Investments Corp. to bid for the government interest in the
concession-holder.
-- Darwin G. Amojelar
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