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THE Department of Economy, Planning, and Development (DEPDev) said the approved contract extension of the country’s two major water concessionaires could generate up to P50.3 billion for the government’s coffers.

In a statement on Wednesday, DEPDev said the approved 10-year extension of the revised concession agreements for Maynilad Water Services, Inc. and Manila Water Co. is anticipated to raise P50.3 billion in government revenues.

“The extension is expected to accelerate capital investments, minimize tariff pressures, and secure long-term water supply,” it said, following the approval during the inaugural meeting of the Economy and Development (ED) Council, chaired by President Ferdinand R. Marcos, Jr.

Both companies secured the approval of their revised contracts until 2047, to coincide with their 25-year legislative franchises.

Maynilad and Manila Water were each granted a 25-year legislative franchise, through Republic Act Nos. 11600 and 11601, respectively. Both laws took effect in January 2022.

“By aligning the concession agreements with legislative franchises, we are promoting policy coherence and long-term investment planning in the water sector, which are essential for delivering clean, reliable, and affordable water services to millions of Filipinos,” DEPDev Secretary and ED Council Vice Chairperson Arsenio M. Balisacan said.

The ED Council, formerly the National Economic and Development Authority Board, also greenlit infrastructure projects funded through official development assistance (ODA) in a bid to boost connectivity and agricultural development.

According to the 2023 ODA Portfolio Review Report, the country’s active ODA portfolio of loans and grants reached $37.29 billion in 2023. The latest report is scheduled to be released later this month.

Among the projects include the Department of Agriculture’s Farm-to-Market Bridges Development Program, amounting to P27.7 billion. The program seeks to build 300 climate-resilient modular steel bridges across 52 provinces in 15 regions.

“By improving physical connectivity in farming and fishing communities, the Farm-to-Market Bridges Development Program addresses persistent infrastructure gaps that limit market access, increase post-harvest losses, and hinder rural productivity,” Mr. Balisacan said.

He added it seeks to raise rural incomes and improve food logistics, particularly in geographically isolated and disadvantaged areas.

Another project that secured the ED Council approval was the Liloan Bridge Construction Project of the Department of Public Works and Highways. The P5.1-billion project will develop a four-lane, 721-meter bridge connecting Panaon Island to mainland Leyte.

“It is expected to improve mobility and access for residents and travelers in the municipalities of Liloan, San Francisco, Pintuyan, and San Ricardo, while stimulating local economic activity and job creation in the region,” DEPDev said.

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. — Aubrey Rose A. Inosante

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