Maynilad CAPEX to reach P8.4B in 2012

February 11, 2012

West Zone concessionaire Maynilad Water Services, Inc. (Maynilad) has allotted around P8.4 billion this year to improve and expand its water and wastewater services for its customers. This capital expenditure budget will be funded by a combination of corporate loans and internally generated funds.

Some P2.7 billion will go to boosting Maynilads sewerage and sanitation drive while P1.9 billion will be used to upgrade key facilities including its pumping stations, water reservoirs, primary lines, among others. Over P1.6 billion will be spent to lay new pipelines in unserved areas and nearly P1.8 billion will be used for the companys aggressive Non-Revenue Water (NRW) reduction program.

The rest of the 2012 capex budget will be used for the development of water sources, building and warehouse facilities, natural calamity mitigation and other projects.

When Metro Pacific and DMCI took over Maynilad in 2007, they were committed to infusing the necessary funds to make the company viable and responsive to the needs of our customers. The fact that on our fifth year, we are able to sustain our massive investments through loans and internal funds means that we have gone a long way from being a financially unstable company, said Maynilad president and CEO Ricky P. Vargas.

Maynilad is the largest private water concessionaire in the Philippines in terms of customer base. It is a concessionaire of the Metropolitan Waterworks and Sewerage System (MWSS) for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (all but portions of San Andres & Sta. Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the Districts of the Holy Spirit & Batasan Hills), Makati (west of South Super Highway), Caloocan, Pasay, Paraaque, Las Pias, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; Cavite City, and the towns of Bacoor, Imus, Kawit, Noveleta and Rosario, all in Cavite Province.

Part of Maynilads capital expenditure projects for 2012 is the laying of primary lines that will expand service coverage further south of the West concession, such as this project along Daang Hari Highway.