Manila Water subsidiaries to expand water coverage in Boracay and Laguna

Two subsidiary units of Ayala-led Manila Water Company are planning to expand the water services in Laguna and Boracay Island, Aklan, ranging from 80 percent to a full 100 percent coverage. Interviewed after the 2013 annual stockholders meeting of Manila Water on Monday, the general managers of the Laguna and Boracay water service providers laid down their prospects for their respective concession areas. Ben Mañosca, general manager of Boracay Island Water Company, said they are aiming for 100 percent water coverage at the end of 2013 from the current 98 percent. “We started 2010 at 60 percent. Medyo marami na tayong nalatag na linya. We're planning 100 percent water coverage by the end of the year. Tatlong barangays lang naman ang Boracay,” he said. BIWC is a public-private partnership between Manila Water and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA). With the existing 6.5-million-liter daily capacity of its sewage treatment plant, BIWC plans to construct another 5-million-liters per day plant this year to boost its water capacity, Mañosca said. “For the next four years, we will be focusing on the expansion in terms of our waste water coverage... We are targeting to start construction of a new [sewerage treatment plant] in Boracay. This will increase coverage with the extensions of the sewer lines network,” the general manager said. “We are targeting to increase waste water coverage to 75 percent by 2016,” he added, noting that the company aims to fund these developments through an upsized loan at P1 billion from the current P500 million. Meanwhile, Laguna Water Company aims to increase its water coverage to as much as 80 percent by 2016, its general manager Melvin Tan said. “For the next four years, approximately we will invest about P4 billion to expand our water services. Karamihan niyan distribution network papunta sa mga bahay-bahay, and centralized water system to push water to unserved areas,” Tan said. He added that the company will commission a feasibility study on the best waste water model for Santa Rosa and Cabuyao in Laguna, noting that they intend to “find out how much we will need to invest to cover the sewerage water component.” “For the next four years, puro clear-cut water services muna,” Tan said. Laguna Water Corp. is a public-private partnership between Manila Water and the Laguna government. The general manager said finances would come from loans and internally-generated cash flow. He added that they were about to sign a loan facility this year, but he refused to disclose details. “The idea is to finance the first two years. After the two years, we calibrate and then let's see how much external funding we will need. Our capital plan is really much set for the next four years,” Tan said. Meanwhile, Manila Water is planning to expand its operations in around 15 cities in the country, though its net income prospects this year may not be as good as in 2012. “Without naming any one in particular for reasons that we're not prepared to disclose at this time, our broad target is to look at metropolitan areas with a population concentration of half a million. Below that scale, we believe that we would not get the critical mass that is necessary in providing efficient and operationally effective undertaking,” president and CEO Gerardo Ablaza Jr. said. A disclosure to the Philippine Stock Exchange shows Manila Water's net income jumped 28 percent year-on-year to P5.44 billion on the back of higher billed volume in its East Zone concession and the strong performance of subsidiaries Laguna Water, Boracay Water and Clark Water. Revenues meanwhile grew 21 percent to P14.55 billion while its core income climbed 27 percent to P5.72 billion. — BM, GMA News