Corporate News

Maynilad allocates P13.6-billion capex this year

Posted on January 11, 2016

WEST ZONE concessionaire Maynilad Water Services, Inc. on Sunday said it is setting aside P13.6 billion in capital expenditures, mainly for water and wastewater infrastructure projects, this year.

In a statement, the company said funding for its infrastructure projects will be sourced from local and international bank loans, and from internally generated funds.

”We start the year right by providing the necessary investments to continue meeting our service obligations and contributing to the job generation efforts of the government,” Maynilad President and Chief Executive Officer Ramoncito S. Fernandez was quoted in the statement as saying.

Maynilad, the largest private water concessionaire in the Philippines in terms of customer base, said P7.5 billion will go to water infrastructure projects that will ensure sufficient water supply and pressure in the west zone of Metro Manila.

Of this amount, P3.9 billion has been earmarked for operation support programs such as the construction, rehabilitation and upgrade of treatment plants, pumping stations and reservoirs, and the laying of primary pipelines for water service expansion.

About P2 billion has been set aside for non-revenue water reduction program, which covers meter management, leak repairs, pipe replacements, and district metered area management.

The remaining amount will go to the modernization of data management and information systems, improvement of existing facilities, development of new water sources, and refurbishment of facilities in the Bicti basins and Ipo dam.

At the same time, wastewater management projects will get around P6 billion or 45% of the year’s capital expenditures.

Of the amount, around P4.6 billion will fund the construction of sewage treatment plants in central Manila and Cavite, and improvement of existing sewage treatment plants in Quezon City and central Manila.

Maynilad said up to P1.2 billion will be set aside to build conveyance systems for the new plants, and the development of sewerage systems in Quezon City and Valenzuela.

The rest of the capex will fund the automation of facilities, lot acquisitions, maintenance and sanitation programs.

Maynilad said it expects to create around 41,243 jobs from its spending program this year.

Maynilad is the agent and contractor of the Metropolitan Waterworks and Sewerage System for certain portions of the cities of Manila and Quezon City. It also serves west of the south super highway in Makati City as well as Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon.

Outside the metro, it reaches cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.

Metro Pacific Investments Corp. (MPIC) and DMCI Holdings, Inc. hold 52.8% and 25.24% interests, respectively, in Maynilad.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. -- V. V. Saulon