Manila Water ramps up water supply investments amid Super El Niño threat

East zone concessionaire Manila Water Company Inc. on Tuesday outlined initiatives as it seeks to strengthen its water supply infrastructure ahead of a potentially strong El Niño, with capital expenditures reaching P11.7 billion in the first nine months of the year.

Manila Water said it is optimizing output from its Cardona, East Bay Phase 1, and Calawis treatment plants, with the East Bay Phase 2 and the Kaysakat Plant — with 220 million liters per day (MLD) — targeted for completion within the year.

It has also activated prepared measures across its units such as a continuity plan in Calasiao Water, with a mobile water tanker on standby and new deep wells due next year.

Metro Ilagan Water in Isabela has also commissioned an additional deep well in May with a 13 MLD treatment plan underway, while Cebu Water currently delivers over 30 MLD.

“These investments are strengthening our business for the future — expanding and diversifying our water sources, reinforcing system reliability, and improving network efficiency,” Manila Water president and chief executive officer Roberto Locsin said in an emailed statement.

“As we prepare for a potentially strong El Niño, we remain confident in our ability to manage near-term challenges with discipline while sustaining dependable, long-term value creation for our customers and shareholders,” he added.

The company posted a 5% decline in its net income for the first nine months of the year to P12 billion, as consolidated revenues grew 11% to P33.4 billion, while costs of services stood at P9.6 billion.

“Higher depreciation and interest expenses from newly completed assets began to be recognized — a natural phase of the investment cycle,” Manila Water said. Net income margin moderated by 6 percentage points to 36%.

This comes amid the full integration of the assets and operations of Wawa JVCo. into the east zone concession. Revenues climbed 12% to P26.9 billion, while net income dropped 5% to P11.1 billion.

Net income for the non-east zone area rose 19% to P1.35 billion, as revenues grew 6% to P7.4 billion on tariff adjustments, higher billed volume in Clark, South Luzon, and Boracay, and higher supervision fees from Laguna Water and Estate Water projects.

The Razon-led firm has the exclusive right to provide water and used water services to the east zone of the franchise area of the Metropolitan Waterworks and Sewerage System (MWSS), which services 23 cities and municipalities in Metro Manila and Rizal.

These include Mandaluyong, Makati, Pasig, Pateros, San Juan, Taguig, Marikina, and parts of Quezon City and Manila. The towns of Angono, Baras, Binangonan, Cainta, Cardona, Jalajala, Morong, Pililia, Rodriguez, Tanay, Taytay, Teresa, San Mateo and Antipolo in the province of Rizal are also part of the east zone.Shares in Manila Water were last traded at P29.00 apiece, down 10 centavos from Monday’s finish of P29.10.

State weather bureau PAGASA earlier warned that the El Niño could last until March or even June 2027.

US-based Climate Impact Lab has also warned of 6,500 heat-related deaths in the Philippines through February 2027 amid the El Niño. —RF, GMA News