Maynilad proposes rebased water rates

MAYNILAD Water Services, Inc. is seeking to implement a rate increase of P13.31 per cubic meter staggered from 2023 to 2027 for its mandatory rate rebasing.

During a public consultation on rate rebasing on Monday, Maynilad proposed an increase of P3.29 per cubic meter in 2023; P6.26 per cubic meter in 2024; P2.12 per cubic meter in 2025; P0.84 per cubic meter in 2026; and P0.80 per cubic meter in 2027.

Randolph T. Estrellado, Maynilad’s chief operating officer, said that the company is targeting to spend about P150 billion for the next five years on its water and wastewater projects.

Mr. Estrellado said that Maynilad’s projects include six sewage systems, 420 million liters per day (MLD) additional treatment capacity, upgrading of 14 wastewater facilities, 121-kilometer sewer lines, 1.45 million septic tanks for desludging, and 10,000 new sewer service connections.

He said water projects include 450-MLD water treatment plants, 95-MLD modular treatment plants, 55-kilometer new primary lines, 639-kilometer pipe replacement, and five pumping stations. He added that the company is also targeting to rehabilitate about 17 pumping stations and reservoirs.

Rate rebasing is conducted every five years, under the concession agreement of Metropolitan Waterworks and Sewerage System (MWSS) with water concessionaires.

During the rate rebasing process, concessionaires are subjected to a performance review and validation of their projected cash flows.

Rate rebasing sets the water rates in a manner that allows the water suppliers to recover their expenditures.

Last week, Manila Water Co., Inc. said it is targeting to spend about P181 billion for capital investments in the next five years.

Meanwhile, MWSS said that the proposals of the two concessionaires are still subject to approval and evaluation.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose