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Maynilad to boost investments to P564 B


By DELFIN Sd. PEREZ

June 19, 2009, 8:55pm [ Manila Bulletin Online ]

Manila Water Services, Inc. (Maynilad) is increasing its capital expenditure investments to improve water services in the West Zone by 274 percent to P564 billion from P206 billion if its concession agreement to expire in May 2022 is extended for another 15 years up to 2037.

Maynilad is jointly owned by Metro Pacific Investments Corporation and DMCI Holdings, Inc.

Maynilad proposes to pay the government P127 billion in concession fees up to 2037, including the P17 billion already agreed payment up to May 2022, according to Rogelio I. Singson, Maynilad president.

Since Maynilad took over the West Zone water concession from the Lopez Group in 2007, Singson said his group had already spent some P13 billion to improve water services in its service area.

If the term extension is granted, Singson said, water rate increases will be reduced by as much as 75 percent from P10.78 per cubic meter to only P2.67.

In effect, he said, residential customers consuming less than 10 cu. M. of water will experience a slight increase only of P240 per month, while households consuming 30 cu. M. will pay an additional P15 per month.

The P10.78 per cu. M. increase to take effect next year has already been approved under the present concession agreement.

Aside from the increased investments and lowered tariffs for customers, Maynilad said other key benefits of the term extension include the enhanced ability of Maynilad to undertake long-term projects that will ensure reliability and adequate water supply for the West Zone, address environmental issues with an accelerated sewerage program and the generation of thousands of jobs from these increased capital expenditures.

MWSS and Maynilad had just concluded Friday the sixth of a series public consultations on the proposed Maynilad concession agreement extension.

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