Manila Water unit closes P1.6 billion loan with BPI

MANILA, Philippines — A unit of Razon-led Manila Water Company Inc. has closed a P1.6-billion loan with the Bank of the Philippine Islands (BPI) to partly fund its capital spending until 2025.

In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said the Laguna AAAWater Corp. (Laguna Water), its subsidiary through Manila Water Philippine Ventures Inc. (MWPV), signed the 10-year term loan facility with the Ayala-led bank.

“The proceeds of the loan will be used to partially finance capital expenditures for the years 2022 to 2025,” it said.

Based on company filings, Laguna Water earmarked P462 million for its water network expansion.

Laguna Water is a joint venture between MWPV and the provincial government of Laguna with shareholdings of 70 percent and 30 percent, respectively.

It owns the water and sewerage system of the Laguna Technopark, a premier industrial park located in Sta. Rosa and Binan, Laguna.

In 2018, Laguna Water was awarded by the Pagsanjan Water District (PAGWAD) to design, improve, upgrade, rehabilitate and expand the water supply and implement sanitation services to the latter’s service areas. A year after, it entered into a contractual joint venture with PAGWAD for the water supply and sanitation facilities.

Laguna Water also partnered with Raemulan Lands Inc. in 2019 to put up, operate and manage water distribution facilities in Pasinaya North and Tradizo Enclaves in Cavite and Jubilation Enclave in Laguna.

As of end-June this year, the Manila Water unit nearly doubled its net income to P471 million from P242 million last year.

Revenues rose by 32 percent to P1.35 billion, driven by a 29 percent improvement in average effective tariff to P56 per cubic meter with the implementation of tariff hikes beginning June 2022.

Manila Water serves the east zone, which encompasses parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila as well as several towns in Rizal.

Through subsidiary MWPV, Manila Water operates outside the east zone such as Laguna; Boracay; Cebu; Davao; Clark, Pampanga; Ilagan, Isabela; Tagum, Davao del Norte.

Overseas, Manila Water is present in Vietnam, Thailand, Indonesia and Saudi Arabia.