MANILA, Philippines - Manila Water Co. plans to borrow P10 billion to finance its capital expenditures.
This was learned from Manila Water chief financial officer Juan Luis Oreta yesterday on the sidelines of the inauguration of the company’s Olandes sewage treatment plant.
Manila Water president Gerardo Ablaza said the Ayala-led water firm plans to increase its capex this year.
Ablaza said Manila Water has spent around P50 billion for its expansion, rehabilitation and other activities since it took over the East Zone water utility concession.
The construction of the Olandes STP was funded by a $4.69-million loan from the World Bank under program called Manila Third Sewerage Project (MTSP).
The Olandes STP is designed to clean up domestic wastewater from Marikina and Quezon City and help reduce pollution in Marikina River. It can process up to 10 million liters per day (MLD) of domestic wastewater from 40,000 residents of Cinco Hermanos, Industrial Valley, and Sitio Olandes in Marikina City, as well as some parts of Quezon City.
The World Bank-funded MTSP aims to reduce the pollution in Metro Manila waterways and the Manila Bay, as well as reduce health hazards caused by human exposure to sewage by expanding the septage-management approach of the Metropolitan Waterworks and Sewerage System.
According to Geodino V. Carpio, Manila Water’s operations director, the Olandes STP is one of the sewage treatment plants that Manila Water recently established in its concession area covering the cities of Makati, Pasig, Mandaluyong, Marikina, San Juan, Taguig, most parts of Quezon City, some parts of Manila, and the municipality of Pateros and some cities and municipalities in Rizal Province.
He said that with a $64-million loan from the MTSP, Manila Water has built five major wastewater treatment facilities throughout its concession area.
Three more STPs are expected to be completed this year including Poblacion STP in Makati, Pinagsama STP in Taguig and Project 6 STP in Quezon City, while the MTSP’s biggest facility, Taguig Central STP is set to be completed by 2012.
Prior to the World Bank-funded MTSP, Manila Water built 27 STPs through the Manila Second Sewerage Project, another World Bank-assisted initiative.
World Bank Country Director Bert Hofman said the World Bank gladly supported the establishment of the Olandes STP because it’s in line with the requirements of the Clean Water Act of 2004, the Philippine Medium-Term Development Plan targets from 2004-2010, and a recent Supreme Court ruling ordering government to clean up Manila Bay.