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Manila Water signs 250-m euro loan with Bank of China

East zone concessionaire Manila Water Company Inc. said Tuesday it signed a 250-million-euro term-loan facility to support capital expenditures.

Manila Water said in a disclosure to the stock exchange it signed the seven-year term-loan facility with Bank of China (Hong Kong) Limited and Bank of China Limited, Manila Branch.

“The loan will be used to finance capital investment program of Manila Water in the east zone. Major projects include the development of medium-term water sources, improvements in existing distribution systems, construction of new sewerage treatment plants and expansion of sewer networks,” the company said.

Under the Rate Rebasing 2018 business plan, Manila Water would implement capital expenditure projects amounting to P79.4 billion for the period 2018 to 2022.

The bulk of the programmed capital spending will be used for wastewater facilities, including the construction of sewerage treatment plants.

The company currently operates 38 STPs and two septage treatment plants with a total capacity of 310 million liters per day. The new STPs will be designed collect and treat nearly 950 million MLD of wastewater.

MWC posted a net income of P2.9 billion in the first half, down 18 percent from the previous year’s level, dragged down by the water supply shortage in Metro Manila.

Consolidated revenues rose 7 percent to P10.5 billion as a result of increased billed volume and higher average effective tariff in several key business units.

The company said that outside its concession area in the east zone, domestic business operations saw higher earnings contribution while foreign operations held steady. New business developments also continued to provide market expansion and new sector opportunities for the company.

Manila Water Philippine Ventures Inc., the provincial unit of the company, earlier obtained new water concessions for the municipalities of Lambunao, Iloilo and Calbayog, Samar. 

Manila Water Total Solutions was also granted original proponent status by Marikina City for its proposal to build and operate an integrated water management facility for the city.

Manila Water is the contractor of state-run Metropolitan Waterworks and Sewerage System for the Philippine capital’s east zone.

The share price of Manila Water rose 1.8 percent Tuesday to P22.45.

Topics: Manila Water Company Inc. , euro loan , Bank of China
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