Manila Water’s Laguna arm taps P1.6-B loan from BPI
MANILA -Laguna AAAWater Corp. (Laguna Water), a unit of Razon group-led Manila Water Co. Inc., has secured P1.6 billion in financing to partially bankroll its expenditures in the next few years.
In a disclosure on Tuesday, Manila Water said Laguna Water had signed a 10-year term loan facility with the Ayala group’s Bank of the Philippine Islands (BPI).
“The proceeds of the loan will be used to partially finance capital expenditures for the years 2022 to 2025,” the listed firm said.
Laguna Water has 126,736 billed connections in Laguna as of the first semester. Its franchise will lapse in 2035.
It is a joint venture between the provincial government of Laguna and Manila Water Philippine Ventures Inc. (MWPVI), the holding company of Manila Water for all its domestic operating subsidiaries.
Laguna Water currently services the cities of Binan, Santa Rosa, and Cabuyao as well as the municipality of Pagsanjan. It also has presence in Alaminos, Calamba, San Pablo, Sta. Cruz and Victoria.
The entity booked a net income of P471 million in the first six months of this year, an increment of 95 percent from P242 million in the same period last year.
Laguna Water’s revenues climbed 32 percent to P1.35 billion from P1.02 billion year-on-year.
This was driven by a 29-percent improvement in average effective tariff to P56 per cubic meter with the implementation of tariff hikes beginning June last year.
Prior to the loan deal with Laguna Water, BPI had provided a P1.53-billion loan to MWPVI subsidiary Clark Water Corp. to partially fund its projects and pay its service concession obligations.
Bulakan Water Co. Inc., another MWPVI unit, had obtained a loan of P200-million also from BPI to finance the refurbishment, expansion and improvement of the service facilities and the water source and distribution system, and provision of sanitation services in its service area.
Manila Water holds a congressional franchise to deliver water and wastewater services to the eastern side of Metro Manila. These are Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila and Parañaque in Metro Manila. It also caters to customers in the towns of Angono, Antipolo, Baras, Binangonan, Cainta, Cardona, Jala-Jala, Morong, Pililia, Rodriguez, San Mateo, Tanay, Taytay and Teresa in Rizal.