Ayala-led Manila Water Co. Inc. said its subsidiary, Boracay Island Water Co. Inc. (BIWC), signed a P500-million term loan facility with an option to increase the amount to P1 billion.
The loan deal, which is under the Philippine Water Revolving Fund (PWRF), was signed with Development Bank of the Philippines and Security Bank.
The PWRF is a collaborative undertaking of the government, the United States Agency for International Development and the Japan International Cooperation Agency.
The revolving fund addresses the need to mobilize additional and sustainable resources to meet the Philippines’ millennium development goals.
“This is the first and biggest loan provided by the PWRF to a private company from the water sector,” Manila Water said.
The loan will finance the additional capital expenditure of BIWC in fulfillment of its service obligations in Boracay.
Manila Water said the loan would be used to support the firm’s network improvement and expansion to achieve 100 percent water coverage by 2014 and 100 percent sewerage coverage by 2018.
Since taking over the island’s water and wastewater operations on Jan. 1, 2010, Manila Water said BIWC had already brought down water losses to 24 percent from 37 percent, increased water pressure to an average of 30 psi from 15 psi and provided 24/7 water supply to 96 percent of the island’s population.—Riza T. Olchondra