Maynilad eyes half capacity for treatment plant

MANILA, Philippines - Consunji-led Maynilad Water Services, Inc. has halved its original P1.1-billion investment in a water treatment facility in Muntinlupa following a regulatory halt on water rate increases this year. Still, the listed utility said it would proceed with the other half next year, regardless of whether the regulator allows it to hike the tariff, Maynilad Senior Assistant Vice-President for Engineering Julius S. Iglesia said in a phone interview. "If worse comes to worst and we still do not get our rate hike, we will still push through with the second 50 million liters per day in 2010," he added. Under the new plan, Maynilad will only initially put up a facility that will produce 50 million liters per day from the original 100 million liters. Construction will start this quarter. In a text message, Maynilad Chief Operating Officer Herbert M. Consunji, said they had given the contractor the go-signal to start the project. "The formal turnover of the site will be on Feb. 6," he added. But Maynilad’s plan to double the capacity to 200 million liters daily will have to wait pending the rate hike approval. The water treatment facility in Muntinlupa City was supposed to be completed by yearend or early 2010. It will provide water to 800,000 people within Maynilad’s concession zone. The P1.1-billion facility, which will treat water from Laguna Bay, is expected to boost water supply in Muntinlupa, Las Piñas and Bacoor, Cavite. The water treatment facility will be built by US firm Pall Corp., the world’s biggest filtration company. It will involve microfiltration and reverse osmosis, used in US and European countries. Early this month, the water regulator shelved the petitions of Maynilad and east zone concessionaire Manila Water Co. to hike their rates in exchange for a possible extension of their contracts. Maynilad and Manila Water’s contract will end in 2022, and the regulator was looking at giving them 10 more years. Maynilad asked for a P1.30 per day or P130 per month increase for customers consuming 10 cubic meters monthly. The rate hike is bigger for people who use more water. Manila Water sought a P6.90 per cubic meter increase. Maynilad earlier said deferring its rate hike would delay water service for three million prospective customers and force it to cut its P8.6-billion capital spending this year by P3 billion. Maynilad’s service area covers Pasay, Caloocan, Las Piñas, Parañaque, Valenzuela, Muntinlupa, Manila except Sta. Ana, some areas of Makati and Quezon City, Malabon and Navotas, as well as Cavite City, Rosario, Imus, Noveleta, Bacoor and Kawit, all in Cavite province. Maynilad is controlled by DMCI-MPIC Water Co., Inc., a joint venture between Consunji-led DMCI Holdings, Inc. and Pangilinan-led MPIC. — Ava Kashima K. Austria, BusinessWorld