Maynilad water concessionaire to hike spending in 2019

Maynilad Water Services Inc. is set to increase its spending programme by nearly double this year, mainly for the company’s enhancement and expansion of its water and wastewater services.

In an emailed statement, the west zone concessionaire said it has earmarked P16.8 billion (SGD 1.2 billion) for its capital expenditure (capex) this year, nearly double the P9 billion (SGD 648.9 million) last year.

“Maynilad is dedicating a bigger share of this year’s capital investment toward wastewater projects, as we seek to facilitate sewerage coverage expansion in the West Zone,” said President and CEO Ramoncito Fernandez.

“Accelerating our wastewater projects will require a lot of resources but we are committed to do our part in protecting the health of our customers and the environment,” he elaborated.

Bulk or 70 per cent of the capex will be spent on wastewater management projects and to comply with the “new and more stringent” standards set to maintain network reliability.

This will be used to construct a new sewage treatment plant (STP) in Central Manila; the installation of about 30 kilometres of sewer lines in Las Piñas City; the upgrade of existing STPs; lot acquisitions for new STPs and pump stations; and the installation of new sewer services connections.

Meanwhile, about P1.9 billion (SGD 137 million) will be allocated for water operations support such as the construction of additional pumping stations and reservoirs for better supply management, service expansion programmes, and water source projects.

The company said it will also set aside P3 billion (SGD 216.3 million) for its water loss recovery or the Non-Revenue Water Management Program which covers leak detection and repair, meter management, pipe replacements, and network diagnostics.

The remaining amount will then go to the company’s Customer Service and Information Program, which involves modernising data management and information systems to improve service delivery.

Maynilad reported a core net income of P7.7 billion (SGD 555.2 million) in 2018, five per cent higher than the previous year, driven by revenue growth, lower provisions, and lower interest expense.