MWC aims to get 5-yr plan OKD by end-2012

MANILA Water Co. Inc. (MWC) is aiming to finalize by the end of this year its business plan for the next five years, said Ferdinand M. de la Cruz, Manila Water group director for East Zone business operations.

If approved by Metropolitan Waterworks and Sewerage System (MWSS) within the year, there will likely be new tariff rates by January, said De la Cruz, who is also Manila Water’s director for corporate strategic affairs.

“We submitted our proposed business plan as prescribed in the last week of March. The next step is for MWSSto call us for the start of discussions,” he said.

De la Cruz said discussions would take place in the next two months. “If we follow the concession agreement cycle, that should be done by December, for implementation in January,” De la Cruz said.

He said the next “critical date” would be between October and November when, after internal discussions, a second round of public consultations would be held. “Last February and March, representatives of the MWSS regulatory office and the concessionaires went around the different cities for public consultation,” De la Cruz said.

When the business plans of the two concessionaires are finalized, MWSS is expected to lead the holding of the second round of public consultations on the projects and the prescribed water tariffs.

“By Dec. 16, that should be published, that means it goes to the level of approval of the government. Based on the concession agreement process, by Jan. 1, there should be a new rate rebasing plan with the approved set of rates,” De la Cruz said.

Every five years, Metro Manila water concessionaires Manila Water and Maynilad Water Services Inc. come out with their respective business plans for approval by MWSS. The plans cover the tariff rates that the concessionaires will impose on consumers.

The five-year submissions cover broader plans for the later years and the reasonable rate of return on the companies’ respective investments.

“The process includes discussions on rate rebasing, how much investment we make, the pacing (of projects) and how these translate to water tariffs. The final business plan will have to be approved by the MWSS corporate office. The mechanics and formula are under the regulatory office. Once that is done, that business plan goes to the board of MWSS and to the Department of Finance and Malacañang,” De la Cruz said.