Manila Water unit secures P500M loan from DBP for modernization, expansion

The modernization and expansion of the water network system of Laguna Water Corporation, a subsidiary of Manila Water Company Inc., has gotten a big boost after it signed a P500 million term loan with the Development Bank of the Philippines. In a disclosure to the Philippine Stock Exchange on Monday, Manila Water said its subsidiary has the option to increase the term loan to P1.33 billion. Manila Water said said the modernization and expansion projects that will be undertaken by Laguna Water will ensure the delivery of round-the-clock water supply to unserved  population in its concession area. Laguna Water, which services Sta. Rosa, Biñan and Cabuyao cities in Laguna province, was formed through a Public Private Partnership between Manila Water and the provincial government to provide sustainable and reliable water supply to the province. The company has reported a 165 percent increase in net income last year on the back of higher billed volume. Its net income reached P56.5 million in 2012 compared with P21.3 million in 2011. The company currently covers 30 percent of its concession area, equivalent to 45,000 individual connections for a population 900,000. By 2020, Laguna Water aims to achieve a 100 percent coverage in its service area which is equivalent to roughly 112,000 connections. The loan was secured through the Philippine Water Revolving Fund (PWRF), a collaborative effort between the Philippine government, United States Agency for International Development (USAID), and the Japan International Cooperation Agency (JICA) to address the need for efficient and sustainable water supply in the Philippines in line with meeting the Millenium Development Goals (MDG). — KBK, GMA News