New owners spend P20 B to upgrade Maynilad water services in West Zone

August 23, 2009, 1:36pm

Only three years under its new owners and Maynilad has spent nearly P20 billion to replace old pipes, upgrade water facilities and expand its distribution network in the West Zone. These capital expenditures (CAPEX) are more than double the P8 billion investments made by the previous owners from 1997 to 2006.

According to Maynilad president Rogelio L. Singson, the private water concessionaire is prepared to spend even more to improve water and sewerage services in the West Zone, should the company be granted a 15-year Concession Agreement (CA) term extension.

“Maynilad spending can reach P564 billion, which is 274 percent higher than the P206-billion capital investment submitted in our 2008 Business Plan to the MWSS,” Singson elaborated.

Singson assures West Zone residents that they 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,” he explained.

Since 2007, Maynilad has completed major CAPEX projects such as the 800-mm pipeline in Binondo, Manila; the filling up of gaps along the LMAQ-3 pipeline in Sampaloc, Manila; the 1,200-mm extension pipe and 600-mm pipeline along Roxas Boulevard in Pasay City; the MS-01 Gaps and 800-mm pipeline along Sucat Road, Parañaque City; the Noveleta and Cavite City surface water projects; and the construction and upgrading of existing pumping stations and reservoirs.

More than 15 kilometers of primary lines have also been energized to improve water pressure in Commonwealth, Quirino and Roosevelt in Quezon City; Valenzuela, Malabon, Navotas, North Caloocan, South Manila, and portions of Pasay, Parañaque and Cavite.

These projects have resulted in improved water service availability and pressure. Of the 760,000 households being served by Maynilad, around 440,000 now receive potable water 24 hours a day while 530,000 households enjoy stronger water supply at 7 psi. (pounds per square inch) minimum pressure.