Politics

Maynilad sets 5-year, P163-billion capex target

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MAYNILAD Water Services, Inc. is planning to invest P163 billion over the next five years on infrastructure projects to improve services and keep pace with population growth and climate change.

In a statement, Maynilad Chief Operating Officer Randolph T. Estrellado said P101 billion will be allotted to water projects, while about P62 billion will go towards wastewater projects.

“The bulk of the investment will go toward developing more water sources, building more pumping stations and reservoirs, and replacing old pipelines so we can deliver more water in response to the growing demand,” Mr. Estrellado said in a statement.

Mr. Estrellado said there are still some customers in the west zone that do not have 24-hour water service.

“Areas in the farthest points of our distribution network, which still have limited supply availability, stand to benefit the most once we complete the construction of additional water treatment plants,” Mr. Estrellado said.

During a public consultation on rate rebasing on Oct. 24, Maynilad proposed an increase of P13.21 per cubic meter to be implemented between 2023 and 2027.

Based on the water concessionaire’s presentation, the increase will be P3.29 per cubic meter in 2023; P6.26 in 2024; P2.12 in 2025; P0.84 in 2026; and P0.80 in 2027.

“We think it’s fair that we first deliver on that commitment before the succeeding increases are implemented,” Mr. Estrellado said.

Rate rebasing is conducted every five years, under the concession agreement between Metropolitan Waterworks and Sewerage System and water concessionaires.

During this process, concessionaires are subjected to a performance review and validation of their projected cash flows.

Rate are reset periodically to allow water suppliers to earn a return on their investments.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose