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MANILA
Water Co. (MWC) may secure $150 million in new loan
facilities in the next two years to help fund its
aggressive business plan.
The
company, the listed utility unit of the Ayala Group,
provides water to customers in the east zone of Metro
Manila.
It is
embarking on a P187-billion expansion plan and
operational improvement starting this year until 2022.
For the first five years, MWC will spend P37 billion to
improve the water and wastewater networks.
In an
interview, chief financial officer Sherisa P. Nuesa said
about P100 billion of the P187 billion will go to
capital spending and the P87 billion will pay for its
operations. She said internally generated cash and
borrowings would fund the entire requirement.
“We have
a healthy debt-to-equity ratio and that gives us the
flexibility to borrow should the need arise,” she said
at the sidelines of Manila Water’s annual stockholders’
meeting Monday.
On the
planned $150-million loan, Nuesa said the money will
finance Manila Water’s projects in the next five years.
“Our
plan is to put the facilities in place or in advance
before our actual need,” she said. Nuesa declined to
comment though on the possible sources of the loans.
At the
end of 2007, Manila Water had total loan obligation of
P6.2 billion.
This
year, the company will be spending P7.7 billion in cap
expenditure and concession fees. Among its major plans
for the year is to start the building of a P1.5-billion
water-treatment plant, which aims to raise its current
production capacity by at least 100 million liters per
day.
It will
also do an ambitious program to help clean the Marikina
River by constructing at least three regional
sewage-treatment plants using combined sewage-drainage
systems along the banks of the
Marikina
River
to serve the areas of Rodriguez, San Mateo, Marikina,
Quezon City, Pasig and Antipolo. Once completed, the
program is expected to benefit nearly 1.5 million
people.
Manila
Water will likewise increase its sewerage and sanitation
coverage in its concession area and provide bulk-water
supply to Bulacan.
“The
approved business plan resulting from the recently
concluded rate rebasing exercise is a good foundation
for our thrusts to further improve water and wastewater
services to our customers and to sustain our growth,”
said president Antonino T. Aquino.
To date,
Manila Water, is serving more than five million
customers.
Apart
from its local business, it is also considering
initiatives in Asian countries like Hong Kong, China,
India and Vietnam. Aquino said Manila Water is planning
to create a subsidiary to oversee its prospective
international ventures and will also establish another
unit to handle its environmental business activities.
“Even as
we continue to further develop our business within the
east zone, we will continue to explore new ventures
outside our concession area. We hope to become a
regional player over time, given our unique experiences
in an Asian setting,” he added. |
