Manila Water secures P14.5-billion loan facility from Bank of China

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MANILA WATER Co., Inc. said on Tuesday that it had signed a 250-million euro (around P14.5 billion), seven-year term loan facility with two foreign banks to fund its capital investment program within its water concession in Metro Manila’s east zone.

“Major projects include development of medium-term water sources, improvements in existing distribution systems, construction of new sewerage treatment plants, and expansion of sewer networks,” the Ayala-led listed company told the stock exchange.

The loan facility was signed with Bank of China (Hong Kong) Ltd. and Bank of China Ltd.

Under the Manila Water’s approved rate rebasing, the company is programmed to implement capital expenditure projects amounting to P79.4 billion, based on 2018 prices, for the five-year regulatory period 2018 to 2022.

The company did not identify the projects on which the funds will be used, but earlier this month it disclosed signing a 30-year raw water supply offtake agreement with state agency Metropolitan Waterworks and Sewerage System (MWSS) and WawaJVCo, Inc.

Manila Water said the agreement would involve the supply of raw water from the Wawa and Tayabasan rivers. The first phase of the project will involve the supply of 80 million liters per day (MLD) of raw water by Dec. 31, 2021, while the second phase will involve the supply of an additional 438 MLD of raw water by Dec. 31, 2025.

The project is among the medium-term water supply augmentation measures identified by Manila Water to provide water security and sustainability to its consumers in the east zone.

WawaJVCo is a joint venture company formed by Prime Metroline Infrastructure Holdings Corp. and San Lorenzo Ruiz Builders and Developers Corp.

On Tuesday, shares in Manila Water rose 1.81% to close at P22.45 each. — Victor V. Saulon