Maynilad Water Services Inc. said Monday it alloted P42 billion for capital expenditure from 2016 to 2018.
The concessionaire of the west zone of Metro Manila said it would use the amount to improve and expand water and wastewater services to customers.
Maynilad plans to spend P22 billion for service expansion, management of water losses or non-revenue water, operational support programs such as the upgrade of pumping stations, and the development of new water sources.
Maynilad said it would spend about P20 billion for sewerage and sanitation program.
This covers the construction of sewage treatment plants, laying of conveyance systems, acquisition of lots for new wastewater facilities, and maintenance of the existing wastewater infrastructure.
The company said funding for infrastructure investments would come from local and international bank loans and internally generated funds.
“Through this three-year capex program, we hope to ramp up our massive investments by accelerating the completion of new projects so we can meet our service obligations to our customers and the government,” said Maynilad president and chief executive Ramoncito Fernandez.
Maynilad provides water services to certain portions of Manila, Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon.
The company also serves the cities of Cavite, Bacoor and Imus, Kawit, Noveleta and Rosario in Cavite province.
Maynilad has received a favorable award in its arbitration of its 2013-2017 water tariff, which the Manila Waterworks and Sewerage System continues to ignore.
“We continue to face regulatory uncertainties with a number of our business facing overdue tariff adjustments—particularly of our water and toll road operations where if left unresolved, continued capital expenditures on water projects and road constructions would be constrained,” Metro Pacific Investments Corp. chief financial officer David Nicol said. Metro Pacific is the parent of Maynilad Water.
He added MPIC was mindful of the indicators of increased regulatory risks in the Philippines when considering new investment opportunities.