Manila Water optimistic despite Boracay closure
Ayala-led Manila Water Co. Inc. is optimistic that the shutdown of Boracay Island will not make a dent on the company’s bottomline this year.
In briefing, Manila Water president and CEO Ferdinand dela Cruz said the company is looking at ways to offset the estimated P60-P70 million loss to be incurred by subsidiary Boracay Island Water Co. Inc. throughout the six-month closure of the popular resort.
“This is something that is not very big for the whole enterprise to take a hit. Our units are doing well,” Dela Cruz said on the sidelines of the company’s annual stockholders meeting yesterday.
“In the end, it [closure] will turn out better for the island. We will recover from this,” Manila Water chief finance officer Luis Juan Oreta said.
As early as last year, Manila Water has already put in place a business plan that aims to address sewage treatment in the island.
“We have a plan of action to immediately accelerate the enhancement of sewerage system to be able to cater to our customers and absorb the increase in demand over time,” Manila Water chief operating officer Virgilio Rivera Jr. said.
Manila Water sees its billed volume declining, as 70 percent comes from the tourists, while the remaining 30 percent is from residents.
The company is taking the closure as an opportunity to address illegal connections.
Boracay Water has increased its five-year capital expenditure program to P2.4 billion from the original P2.2 billion due to the closure.
Of the total, P2 billion has been set aside for wastewater alone. Around P677 million will be allocated for operations in the island.
The company earlier said it would invest more than P4 billion for the remaining years of its concession to build new water source in order to service the expected continued increase of tourists in the island.
Apart from the construction of a new water source facility, Boracay Water will undertake supply transmission through energization of new pumping stations and supply distribution and treatment process by upgrading island pumping stations, network pipe-laying projects, and water meter replacement and standardization.