MANILA Water Co., Inc. has signed a 10-year term loan facility worth P7 billion with state-run Land Bank of the Philippines (LANDBANK) to fund its projects, the listed company announced on Wednesday.
“The loan will be used to partially finance Manila Water’s capital expenditure (capex) projects,” the east zone concessionaire told the local bourse.
The loan will be used to finance the projects under the approved rate rebasing for 2023, the company said.
Of the capex spending of P11.28 billion as of October, approximately P3.63 billion was allocated for service accessibility, P3.53 billion for water security, P2.73 billion for environmental sustainability, and P1.39 billion for service continuity.
In February, Manila Water also signed a term loan facility worth P3 billion with LANDBANK, intended to be used to fund its general corporate requirements and capex.
The company announced last week that it would implement the second tranche of the rate rebasing adjustments, as approved by the Metropolitan Waterworks and Sewerage System (MWSS).
MWSS approved an increase of P6.41 per cubic meter for Manila Water and a hike of P7.87 per cubic meter for Maynilad Water Services, Inc.
The rates will take effect on Jan. 1, 2024.
Manila Water customers in the east zone who consume 10 cubic meters will pay P34.13 more every month, while those consuming 20 cubic meters and 30 cubic meters will see their monthly bills go up by P76.68 and P187.01, respectively. Low-income customers consuming less than 10 cubic meters will pay P2.96 more every month.
The water company is currently seeking approval for the extension of its revised concession agreement with the MWSS from 2037 to 2047 to coincide with its 25-year legislative franchise.
In line with the extension application, Manila Water has committed to allocate P1.15 trillion for investments, primarily to ensure the continuous provision of water and wastewater services to its customers.
Manila Water serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province.
At the local bourse on Wednesday, shares in the company went down by P0.14 or 0.76% to close at P18.36 apiece. — Sheldeen Joy Talavera