[ Manila Bulletin Online ] November 12, 2008
By FIL C. SIONIL
Manila Water Company, the service utility firm controlled by the Ayala Group of Companies, is pouring in some P1 billion worth of investments to improve supply of water in the country’s top tourists destination.
Manila Water President Antonio Aquino said the investment in Boracay is separate from the P7 billion the firm will be spending for the upgrade and expansion of its east zone service area in Metro Manila.
Aquino, in an interview with Bloomberg TV yesterday, assured Manila Water will proceed with its expansion program amidst the financial turbulence that besets the global arena and has sent most major economies in a tailspin.
"We still see growth opportunities, service additional customers," Aquino said.
In fact, Manila Water has recently bagged a $ 70-million contract in a World Bank-sponsored water project in Ho Chi Minh City, Vietnam.
The project will hopefully start the ball rolling for Manila Water regional operations, Aquino said.
On the domestic front, Aquino disclosed Manila Water has appropriated some P7 billion in capital expenditures (capex) for its expansion program that will run up to 2010.
Included in the program are the waste disposal and environmental projects tied up to the water distribution service.
The capex will be both sourced from its income operations and borrowings. Manila Water has existing credit line with multilateral agencies, which could easy be tapped if the need arises.
For now, however, Aquino stressed Manila Water "has healthy balance sheet and cash position."
Just late week, the firm has tapped the domestic bond market and successfully raised new money equivalent to about $ 80 million for its funding needs.
The decision to rise money from the domestic capital market will protect us from foreign exchange (forex) rate volatility, a collateral damage of the financial turbulence, said Aquino.
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