New Maynilad owners pledge P30B over 6 years

The consortium that took over water services in Metro Manila’s west zone vowed on Wednesday to allot P30 billion for rehabilitation and expansion in the next six years. Top officials of DM Consunji Holdings Inc.-Metro Pacific Investments Corp. (DMCI-MPIC) Water Company gave the assurance during Wednesday's ceremonies in Malacañang marking the turnover of the 84 percent stake of state-run Metropolitan Waterworks and Sewerage System (MWSS) in Maynilad Water Services Inc. DMCI president Isidro Consunji said the group has already turned over to the MWSS the minimum bid requirement of $56 million, which was put in an escrow account with the Land Bank of the Philippines. DMCI-MPIC bagged Maynilad with a $447.23-million bid last year. DMCI-MPIC beat the only other contending group led by Ayala-owned Manila Water Inc., the concessionaire in the east zone, which offered $399 million. Consunji said the plan to fast-track rehabilitation of water systems in the west zone has started since they obtained the the National Water Resources Board’s approval last week to increase water supply, especially in Parañaque, Las Piñas and Cavite. He noted that the consortium plans to spend P30 billion in six years, or an average of P5 billion annually, to speed up the rehabilitation. Expenditures this year were initially placed at P2.9 billion. Maynilad supplies water to Caloocan, Manila, parts of Quezon City, Pasay, Valenzuela, Paranaque, Muntinlupa, Malabon, Navotas, Las Pinas and areas in Cavite. Consunji said DMCI-MPIC will prioritize the improvement of water quality of water by eliminating possible sources of contamination. MPIC president Manuel Pangilinan also said the consortium will address the issue of losses, or non-revenue water. The new owners must wipe out $240 million that Maynilad owes to creditors and to the MWSS to get Maynilad out of rehabilitation. Maynilad was put under rehabilitation in 2005 after huge financial losses under the management of Benpres Holdings Inc. and its partner, the Suez Group of France. The old owners took over in 1997. In 2005, Maynilad reported a net income of P1.4 billion, marking the first time that the company ended in the green after several years of losses. -GMANews.TV