MANILA WATER UNIT SECURES P2.4B LOAN FOR CAPEX

A unit of Ayala- led Manila Water Co. Inc. in Aklan province’s Boracay island has secured a P2.4- billion loan from the Bank of the Philippine Islands ( BPI) to finance its capital expenditures ( capex).

In a disclosure, Manila Water said Boracay Island Water Co. Inc. signed on Wednesday a loan service obligations on the island.

Boracay Water plans to use the loan to fund its general corporate requirements and refinance an existing loan, and will spend P2.20 billion in capex from 2018 to 2022.

Previously, the water subsidiary announced a rate increase, to take effect in January.

This came after the Tourism Infrastructure and Enterprise Zone Authority- Regulatory Office ( Tieza- RO) decided to implement the second of three tranches of Boracay Water’s new water rates.

Boracay Water is a unit of Manila Water Philippine Ventures Inc. ( MWPV), a wholly owned subsidiary of Manila Water.

Earlier this year, the water company earmarked about P4.28 billion to meet increasing demand for a reliable water system and an improved sewage system.

Manila Water provides water, sewerage and sanitation, dis- tribution services, pipeworks, and management services to residential, commercial and industrial customers.

It serves the east zone of the franchise area of the Metropolitan Waterworks and Sewerage System ( MWSS) in accordance with the concession agreement signed on February 21, 1997.

Shares of Manila Water closed at P27.95 apiece.