Laguna Water gets P500-M DBP loan

MANILA, Philippines - Manila Water Co. Inc. subsidiary Laguna Water Corp. has signed a P500 million term loan with the Development Bank of the Philippines to finance the modernization of facilities and expansion of its water network system.

In a filing yesterday, Manila Water said its subsidiary has the option to increase the term loan to P1.33 billion.

The loan was secured through the Philippine Water Revolving Fund (PWRF), a collaborative effort between the Philippine government, United States Agency for International Development (USAID) and the Japan International Cooperation Agency (JICA) to address the need for efficient and sustainable water supply in the Philippines in line with meeting the Millenium Development Goals (MDG).

Manila Water said the modernization and expansion projects that would be undertaken by Laguna Water would ensure the delivery of round-the-clock water supply to unserved population in its concession area.

Laguna Water was formed through a Public Private Partnership between Manila Water and the provincial government of Laguna to provide sustainable and reliable water supply to the province.

It services the cities of Sta. Rosa, Biñan and Cabuyao.

The company recently reported a 165 percent increase in net income last year on the back of higher billed volume.

Its net income reached P56.5 million in 2012 compared with P21.3 million in 2011.

Revenues jumped by 97 percent year-on-year due to a 65 percent growth in billed volume.

Service connections grew last year because of the addition of new commercial accounts and expansion of the company’s base in previously unserved areas.

Laguna Water plans to develop new water sources beginning this year as part of its program to expand its coverage in its concession area to 80 percent by 2016.