Maynilad Water Services Inc. (Maynilad) is prepared to increase its water and sewerage investments by 274% once granted a 15-year Concession Agreement (CA) term extension. From P206 Billion capital investment submitted in the 2008 Business Plan, Maynilad spending can reach P564 Billion to accelerate and expand service improvement projects in the West Zone.
“And the best thing about a term extension is that West Zone customers will not have to pay more for these improvements. Future water rate increase may be reduced by as much as 75%, because we will have a longer concession period to recover our investments,” Maynilad president Rogelio Singson explained.
Without the term extension, West Zone residents may experience an average water rate increase of P10.78 per cubic meter by the year 2012. But an additional 15 years of operation will provide Maynilad with a longer investment recovery period, trimming the average rate increase to P2.67 per cubic meter.
In effect, residential customers consuming less than 10 cu.m. of water will experience a slight increase of P2.40 per month, while households consuming 30 cu.m. will pay an additional P15.50 per month.
Aside from the increased investments and lowered tariffs for customers, other key benefits of the term extension include the enhanced ability of Maynilad to undertake long-term projects that will ensure reliability and adequate water supply for the West Zone, address environmental issues with an accelerated sewerage program and the generation of thousands of jobs from these increased capital expenditures.
In all the just concluded six public consultations conducted by MWSS and Maynilad, the public support has been overwhelming in favour of the 15-year concession term extension for Maynilad.