Maynilad borrows P10 billion to fund capex

MANILA, Philippines — West Zone concessionaire Maynilad Water Services Inc. borrowed P10 billion from Metropolitan Bank & Trust Co. (Metrobank) to finance this year’s capital requirements.

Maynilad has secured a 10-year loan from Metrobank to bankroll the improvement of water service coverage, increase water source and reduce non-revenue water.

The funding will also allow the water utility firm to improve its sewerage coverage and treatment facilities, upgrade water treatment plants and facilities and improve water availability.

“With this loan, we are in a better position to pursue our capital expenditure program that will further enhance water services for our over 10.3 million customers,” Maynilad chief operating officer Randolph Estrellado said.

“This supports our commitment to meet our service obligations and achieve sustainable growth,” Estrellado said.

Maynilad has earmarked P31 billion for its capital expenditures (capex) this year, the biggest investment since the 1997 privatization of water services in Metro Manila.

The water utility firm’s capex this year is about 19 percent higher than the P26 billion spent for capital outlay in 2023.

The company’s record-high investment this year would be funded by a combination of internally generated funds and new debt, according to Maynilad.

The bulk of Maynilad’s capex this year or P11.4 billion will be used for the firm’s wastewater management projects, including the construction of new sewage treatment plants and laying of new sewer lines.

Meanwhile, P8.72 billion will go toward the implementation of water source projects that will enable Maynilad to tap alternate raw water sources and generate more supply for customers.

More than P6 billion was allotted by the firm for its operations support projects, such as the upgrade and construction of key facilities including pumping stations, water reservoirs and primary lines, among others.

Maynilad said more than P4 billion would finance the company’s non-revenue water reduction program and service expansion initiatives, while the remaining capex would be used for its customer service and information infrastructure, among other projects.

Maynilad is the largest private water concessionaire in the Philippines in terms of customer base.