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THE new
operator of Maynilad Water Services Inc. is finalizing a
capital expenditure plan that would most likely entail
spending P5 billion annually for the improvement of the
west zone water system, according to Maynilad president
Jose Ma. Lim.
The
operator, DMCI-MPIC Water Co., is an equal partnership
between the DMCI Holdings Inc. of the Consunji group and
investment management firm Metro Pacific Investments
Corp., (MPLC) both of whom are listed on the Philippine
Stock Exchange.
Lim said
it is necessary to replace old water mains, upgrade the
smaller diameter piping network, and make repairs. He
added it is also their priority to have a system-wide
water audit of Maynilad.
Efforts
will also focus on better water supply and pressure
management, enhancing reservoir management and pump
station efficiencies, and overhauling the system’s
software and Information Technology facilities. “Our
goal is to provide safe, reliable 24-hour water supplies
to the tens of thousands of businesses and households in
the concession zone.”
DMCI-MPIC said there is a “huge opportunity” for them to
achieve substantial improvements in revenue because
while Maynilad supplies over 2,100 million liters of
water per day to approximately 6 million out of the 8
million people within its concession areas, around 67.6
percent of that is nonrevenue due to antiquated
infrastructure delivery, leakage and pilferage.
Lim said
they remain committed to their target of getting
Maynilad out of rehabilitation this year by paying off
the $240-million debt owed to various creditors and the
government-owned Metropolitan Waterworks and Sewerage
System (MWSS).
When
Maynilad entered into rehabilitation in April 2005, it
was expected to be out by 2013.
DMCI-MPIC has committed to pay a total consideration of
$503.9 million for a 83.97-percent stake in Maynilad.
The amount is comprised of a minimum cash bid of $56.7
million and a supplemental bid of $447.2 million.
Formerly
run by the Lopez family, Maynilad holds a 25-year
exclusive concession in the 540 sq. km. west zone of
Greater Metro Manila region, an area covering eight
cities and three towns, and a city and five towns in
Cavite. Maynilad’s network facilities include two water
treatment plants and 4,100 kilometers of pipes and
aqueducts. |
