MANILA, Philippines — Razon-led Manila Water Company Inc. has secured another P7-billion long-term loan from state-run Landbank of the Philippines.
The loan, with a term of 10 years, will be used to partially finance capital expenditure (capex) projects, Manila Water said in a disclosure yesterday.
From 2023 to 2027, Manila Water is set to spend P181 billion, bulk of which will be for capital expenditure programs amounting to P105 billion for both its water and wastewater projects.
The focus of the capex projects will be water supply security, service accessibility, and continuity, and wastewater coverage expansion.
In its latest quarterly financial report, Manila Water said its group capital expenditures decreased by 18 percent at the end of the third quarter at P11.1 billion.
Of the amount, P9.5 billion or 86 percent of the amount went to the east zone concession, mostly for wastewater expansion, network reliability and water supply projects.
This is the second time Manila Water secured funding from the state-run bank totaling P10 billion this year.
Last February, the water firm already borrowed P3 billion, also with a 10-year term, from Landbank to cover general corporate requirements and capex.
Apart from Landbank, Manila Water also secured a P10 billion 10-year term loan facility from the Metropolitan Bank and Trust Co. to partially finance its capex projects.
Subsidiary Manila Water Philippine Ventures Inc. also signed a P1.53 billion 10-year term loan facility with the Bank of the Philippine Islands (BPI) for the use of Clark Water Corp.
Manila Water and its subsidiaries also obtained a P200 million 10-year term loan facility, also from BPI for Bulakan Water Co. Inc.
Manila Water serves the east zone of the Greater Manila Area, covering 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.
It also operates outside the east zone through subsidiary MWPV, with a presence in Laguna; Boracay; Cebu; Davao; Clark, Pampanga; Ilagan, Isabela; Tagum, Davao del Norte.
Abroad, Manila Water is present in Vietnam, Thailand, Indonesia and Saudi Arabia.