Manila Water secures €250-M loan from Bank of China for water projects

Ayala-led water concessionaire Manila Water Co. Inc. and the group of Bank of China has entered into a loan financing agreement amounting to €250 million or P14.5 billion to fund the utility's capital expenditure program.

In a regulatory filing submitted by corporate governance and compliance manager Darwin Mendoza, Manila Water said the seven-year term-loan loan facility was extended by Bank of China (Hong Kong) Limited and Bank of China Limited, Manila Branch.

"The loan will be used to finance capital investment program of Manila Water in the East Zone," Manila Water said.

The company's major projects include development of medium-term water sources, improvements in existing distribution systems, construction of new sewerage treatment plants, and expansion of sewer networks.

"Under the Rate Rebasing 2018 approved business plan, the company is programmed to implement capital expenditure projects amounting to P79.4 Billion (in 2018 prices) for the period 2018 to 2022," it said.

Manila Water holds the concession rights to the east zone of Metro Manila and Rizal province.

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 concession. — RSJ, GMA News