Manila Water unit taps BPI loan for Samar project
Manila Water Co. Inc. said one of its joint venture firms has secured from Bank of the Philippine Islands (BPI) a P393-million loan facility, which it would use for capital expenditure projects in Samar province.
The Razon-led firm said in a disclosure on Wednesday that Calbayog Water Co. Inc. (CbWI), a partnership between Manila Water Philippine Ventures Inc. and Tubig Pilipinas Group Inc., would use the loan to partially fund needed work related to a concession with the Calbayog City Water District.
CbWI was set up as a vehicle to fulfill a 25-year commitment to design, build, rehabilitate, maintain, operate, finance, expand and manage the water and wastewater system in the city.
Through the agreement period, which ends in 2043, CbWI intends to lay out P1.2 billion in capital for a system that has a potential billed water volume of 28.43 million liters per day.
This loan facility was announced amid continuing expansion of Manila Water’s noncore business operations elsewhere in the Philippines as well as overseas.
Last week, Manila Water said it had clinched a second contract with the government of Saudi Arabia to operate water services in several cities through a partnership with France-based Saur Group and local firm Miahona Co.
The seven-year management, operations and maintenance contract was awarded by the state-run National Water Co. The partners will serve the Eastern Cluster cities of Dammam, Al Hofuf, Al Jubail, Al Khobar, Al Qatif and Hafar Al Batin.
In the first semester, Manila Water saw its consolidated net income grow by 10 percent year-on-year to P2.73 billion, due in part to higher contributions from overseas affiliates.
The Manila Water group is also active outside the Philippines through affiliates such as the Eastern Water Resources Development and Management in Thailand; Thu Duc Water, Kenh Dong Water and Saigon Water in Vietnam; and PT Sarana Tirta Ungaran in Indonesia.
