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MANILA Water Co. Inc. plans to borrow domestically
through the sale of bonds or IOUs for the expansion of its
distribution network.
Sherisa Nuesa, Manila Water chief
finance officer, said the utility requires a new loan of $150
million in the next two years.
This is on top of the remaining
$100-million unused facilities from the European Investment Bank (EIB),
International Finance Corp. (IFC), and World Bank.
“We’re not borrowing yet
because of inflation pressures. We will introduce Manila Water in
the bond market, maybe in the second half. Hopefully, interest rates
will be stabilized,” Nuesa said on the sidelines of the memorandum
of agreement signing with sister-company Bank of the Philippine
Islands (BPI) for the consolidation of collections and cash
solutions. BPI will consolidate Manila Water’s daily average daily
collection estimated at P30 million.
Manila Water provides water and
sewerage services to 5.1 million residents in the east zone
concession of state-run Metropolitan Waterworks and Sewerage System.
The Ayala-led utility earlier said first-quarter profits climbed 22
percent to P625 million as revenues increased to P2 billion.
Manila Water has allotted P7
billion in capital expenditures this year, higher than last year’s
P5 billion.
--Maricel E. Burgonio
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