Maynilad Water Services Inc. said over the weekend it is spending at least P26 billion in ongoing and newly-awarded projects aimed at improving water services and infrastructure.
The annual allocation is part of the company’s long-term capital expenditure program, which spans from 2023 to 2027, with a total commitment of P167 billion.
Maynilad chief operating officer Randolph Estrallado said the completion of Maynilad’s projects is closely tied to the timeline of the Kaliwa Dam project, which is expected to be finished between 2028 and 2029.
“We need to finish our projects before that. Because it takes maybe three years to build the treatment plant. What we don’t want is for Kaliwa Dam to be completed without significant progress on our end,” he said.
Maynilad, which has 1.7 million connections in the west zone, said to align with this schedule, it plans to complete critical infrastructure such as treatment plants, pipelines crossing Teresa in Rizal and points to Laguna Lake within the next three to five years.
The company’s funding strategy is supported by a revised five-year tariff adjustment mechanism, which allows for annual increases approved under the new concession agreement.
This provides regulators with the flexibility to monitor Maynilad’s performance and adjust tariffs accordingly.
Maynilad’s capital expenditure program will be financed through a mix of equity and debt. The revised concession agreement (RCA), which grants Maynilad a franchise extension of another 25 years, restored the confidence of financial institutions, enabling the company to secure the necessary funding.
Uncertainties surrounding the concession agreement hindered borrowing capabilities.
As part of its business plan, Maynilad pledged to meet key service level commitments, including enhanced water availability and expanded wastewater coverage.
“We have a clear five-year plan, and we are focused on delivering on our promises,” Estrallado said.
The staggered tariff adjustments also provide an added layer of regulatory oversight, ensuring that targets are met within the stipulated timelines.
