Manila Water inks ₱7-B deal with Landbank for expansion

The Manila Water Co. Inc. has secured a term loan facility from state-lender Land Bank of the Philippines (Landbank) to support its capital expenditures (CAPEX).

In a disclosure to the Philippine Stock Exchange on Wednesday, Dec. 20, Manila Water said the utility signed a ₱7-billion loan from Landbank, which will be paid within 10 years.

The CAPEX projects are expected to address the impact of the ongoing El Niño that is foreseen to last until the second quarter of next year.

Significant investments include the Calawis Water Supply System and the East Bay Ph1 Water Supply System Initiatives, Manila Water said.

These projects are also expected to provide an additional 80 million liters per day (MLD) in Calawis and 50 million liters per day (MLD) in the East Bay.

Dittie L. Galang, Manila Water corporate communications head, said the investments would pose favorable effects to the concessionaire.

“The Marikina Portable Treatment Plant (PTP), other deep wells, and other possible contingency and augmentation measures will be further ramped up as a result [of the projects],” she said.

Galang also noted that the initiatives would help mitigate the water crisis and the heavy reliance on Angat and La Mesa Dam, as well as the Cardona Treatment Plant.

“Given the peak water demand during the dry season, especially considering the ongoing El Niño, these initiatives are given the utmost importance because they will reduce dependence on the current water supplies,” Manila Water explained.

Aside from the two water supply system projects, the water company is also planning on fixing certain aqueducts in the east zone by preparing the reliability lines through the Novaliches-balara Aqueduct 4 and the Angat Water Transmission Improvement Project (AWTIP) Tunnel 5.

Moreover, Manila Water has been working on three sewerage treatment plants and sewer networks.

“[This would serve] parts of Mandaluyong, San Juan, Quezon City, Antipolo, San Mateo, and Rodriguez in Rizal, the San Mateorodriguez Sewerage System, the Hinulugang Taktak Sewerage System Project, the Mandaluyong West Sewerage System, and the North and South Pasig Sewerage Systems,” Galang said.

Meanwhile, MWC disclosed a 10-year ₱10-billion loan with the Metropolitan Bank and Trust Co. (Metrobank) last week.

In 2022, the company garnered a CAPEX total of ₱20.6 billion, the company’s third-highest record for its expenditure budget.