MANILA - Manila Water Co. Inc has fortified its financial foundation by securing a substantial P10 billion loan from Metropolitan Bank and Trust Co. This strategic move is aimed at funding a series of capital expenditure projects over the next decade, as reported to the Philippine Stock Exchange today.
The company aims to ensure liquidity needed for its expansive capital projects, particularly those under the Rate Rebasing Service Improvement Plan. This plan is designed to enhance wastewater and supply systems through a combination of internal resources and debt, supported by a robust balance sheet.
In a detailed financial update, Manila Water disclosed a significant 18% reduction in capital expenditures by the end of Q3, which amounted to P11.1 billion. Despite this decrease, the company continues to make substantial investments in line with service commitments approved by the government for its East Zone Concession.
Earlier this year, Manila Water's domestic subsidiaries, Clark Water Corp and Bulakan Water Co. Inc., also contributed to the group's financial strategy by obtaining loans totaling P1.73 billion. These funds are allocated over a similar ten-year term to meet their respective capital needs. Moreover, an additional loan of P3 billion was secured from Land Bank of the Philippines, reinforcing the group's commitment to long-term development projects.
Financial performance indicators have been promising for Manila Water, with Estate Water injecting P718 million into development projects as part of a P1.6 billion capital contribution from domestic subsidiaries. The company's net income surged to P7.26 billion over nine months—an increase propelled by tariff hikes that led to a 39% revenue boost to P23.14 billion. This uptick is attributed to higher usage rates and increased cross-border charges within the East Zone concession.
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