West Zone concessionaire Maynilad Water Services Inc. said it signed P10.8-billion loan agreements with Japan International Cooperation Agency and Japan’s three largest private commercial banks to fund major projects.
Maynilad said it signed a loan agreement with Jica for a P7.2-billion loan and with The Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. for a P3.6-billion facility to fund its non-revenue water and capital expenditure projects for the next four years.
The company said aside from improving operational and network efficiency, the capex programs would allow Maynilad to meet service obligations and achieve sustainable growth.
Maynilad said the credit agreement with Jica would be denominated both in Japanese yen and Philippine peso, the local currency portion which will reduce Maynilad’s foreign exchange risk.
Maynilad said proceeds would be used for water expansion and other support projects from 2017 to 2019.
Jica president Shinichi Kitaoka, Maynilad president and chief executive Ramoncito Fernandez and Maynilad chief operating officer Randolph Estrellado signed the Jica loan in Tokyo recently.
Also present during the signing were Teiji Teramoto, managing executive officer of global corporate unit of Bank of Tokyo Mitsubishi UFJ and Yasushi Itagaki, general manager of global planning of BTMU.
Maynilad said that through the P10.8-billion loan, the capex projects were expected to benefit some five million people and generate over 8,700 local jobs in engineering and construction.
“With this loan, we are in a better position not only to improve and expand water coverage in the west zone, but also to ensure long-term water security for future generations,” said Fernandez.
Maynilad is owned and managed by Maynilad Water Holdings Company Inc. a joint venture between Metro Pacific Investments Corp., DMCI Holdings Inc. and Marubeni Corp.