[ Manila Bulletin Online ] April 1, 2008
By JAMES A. LOYOLA
Manila Water Company plans to spend P187 billion over the next 15 years to expand water and wastewater services as well as to ensure the continued long-term reliability of its service in its Metro Manila East Zone Concession.
During the firm’s annual stockholders’ meeting yesterday, MWC president Antonino Aquino said P37 billion of the new P187-billion business plan will be spent in the next five years while capital expenditures for this year alone will amount to P7.7 billion.
He said the P187 billion consists of P100 million in capital expenditures while P87 billion represents the operating component of MWC’s business. This will also include the possibility of expansion to new areas like Bulacan and the development of new water sources.
"Our goal is to add at least one million new customers to our base as we increase wasterwater coverage, particularly the sewerage connections, from 12 percent to 30 percent," said MWC chairman Fernando Zobel de Ayala. The firm currently serves more than 5 million customers.
MWC chief finance officer Sherisa Nuesa said the bulk of the business plan will be financed by the firm’s strong cash flow although they will also be tapping various facilities from local lenders as well multilateral lending agencies.
She noted that MWC will be raising $ 150 million over the next two years to help finance its P37 billion expenditures for the next five years. She added that this may be in several tranches and using various instruments.
Meanwhile, Aquino said MWC is putting up two new subsidiaries which will pursue its investments overseas as well as its entry into domestic environment-related business to ensure the integrity of its East Zone operations.
"Our earnings from the East Zone should also be spent on the East Zone," he said.
Aquino said one subsidiary will focus on environment-related businesses including the recycling of wastewater, the sale fertilizer made of bio-solids derived from wastewater, and energy from methane gas released by wastewater.
On the other hand, the other subsidiary will pursue MWC’s goal of becoming a regional player over time, "given our unique experiences in an Asian setting," said Aquino noting that they are pursuing opportunities in countries like Vietnam, China, Hong Kong and India.
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