Manila Water Company: Manila Water Earmarks P30B for Capital Investments

Manila Water Earmarks P30B for Capital Investments

Posted: Tuesday March 27, 2007

Manila Water announced in its stockholders’ meeting today that it intends to invest at least P30 billion in capital expenditures for the East Zone over the next five years. This amount will support the company’s continuous expansion of water and wastewater networks, as well as programs to ensure the reliability of water supply. A significant portion is earmarked for the development of new water sources and sewer and sanitation facilities in the area.

“We are privileged as a company to be engaged in various initiatives that are geared towards protecting and preserving the environment. Our increased investments will address the need for improved sewer and sanitation services as well as the protection of our water resources. This reaffirms our company’s commitment to environmental preservation,” according to Manila Water Chairman Fernando Zobel de Ayala.

Manila Water made the announcement following its report of strong operational and financial performance in 2006. Last year, Manila Water invested a total of P4.8 billion for the rehabilitation and extension of the water network to improve service coverage and reduce system losses.

“Our achievements in 2006 were largely the results of the P23 billion capital expenditures we have poured in the East Zone over the past ten years. Today, we continue to realize the value of these investments as demonstrated by our strong performance in the first two months of the year. Our billed volume grew by 10% from the same period last year to 962 million liters per day,” Manila Water President Antonino T. Aquino said. “To sustain this trajectory, we will undertake a fresh round of major investments in projects that will enable us to provide water to the high growth areas of Rizal, as well as increase access to wastewater services within the East Zone,” Aquino added.

The Company further emphasized that the operating efficiencies derived from their investments eventually redound to customer benefits. Since taking over the East Zone, Manila Water has served an additional two million customers, half of which belong to the poorer sector. In addition, water availability vastly improved with 98% of the total population served within the central distribution area, receiving water 24 hours a day, from only 26% in 1997.

Earlier, Manila Water reported that its net income for 2006 reached P2.4 billion, reflecting a 19% growth over its 2005 level while revenues increased by 18% to P6.8 billion.