Manila Water plans P1.15-trillion investment until 2047
WATER SUPPLY company Manila Water Co., Inc. said it is investing P1.15 trillion between this year and 2047.
This commitment comes as the water supply company seeks approval for the extension of its revised concession agreement (RCA) with the Metropolitan Waterworks and Sewerage System (MWSS).
The east zone concessionaire said it applied for an RCA extension on Aug. 25, as indicated in the company’s position paper posted on its official website and accessed on Monday.
“The application seeks the extension of the expiration date of the RCA from July 31, 2037 to July 31, 2047, to coincide with the term of Manila Water’s 25-year legislative franchise,” the company said.
Specifically, Manila Water hopes to extend the RCA it signed with MWSS on March 31, 2021.
Republic Act No. 11601, which took effect on Jan. 25, 2022, granted Manila Water a legislative franchise for 25 years, extending until 2047.
The franchise provides the company with the privilege to establish, operate, and maintain a waterworks and sewerage system in the east zone service area of Metro Manila and Rizal province.
The company said that the application aligns with Section 5 of the law, which states: “When public interest for affordable water security so requires and upon the grantee’s application, MWSS shall be authorized to approve the amendment of the Concession Agreement to extend its term up to the franchise’s duration, following appropriate notice and hearing.”
In line with the extension application, Manila Water has committed to allocate P1.15 trillion for investments, primarily to ensure the continuous provision of water and wastewater services to its customers in the east zone. it noted.
Of the total, Manila Water plans to allocate P475 billion for the development and maintenance of water facilities from 2038 to 2047 out of the total expenditures.
It has also projected an additional capital expenditure (capex) amounting to P48.1 billion from 2038 to 2043 for the development of the water treatment plant for the Kangan-Agos project, with an estimated capex of P91.1 billion.
The proposed project, which will source water from the Kanan River, is expected to produce 3,000 million liters per day, divided between Manila Water and Maynilad Water Services, Inc.
“With 26 years of improving water and wastewater services, Manila Water is best positioned to continue to serve the East Zone for another 24 years,” the company said.
“Manila Water prays for the extension of the RCA to ensure sustainability of reliable service at an affordable cost,” it added.
At the same time, the company invited the public to submit comments on its proposed extension.
At the local bourse on Monday, shares of Manila Water went down by two centavos or 0.11% to close at P17.70 apiece.
The water concessionaire serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera