By Alena Mae S. Flores
Water concessionaires Manila Water Co. Inc. and Maynilad Water Services Inc. announced Wednesday massive capital expenditures of P344 billion to improve water service in their respective concession areas in the next five years.
Manila Water programmed P181 billion in capex, while Maynilad said it would invest P163 billion for infrastructure projects to sustain service improvements in the face of challenges such as climate change and population growth.
Manila Water, the east zone water concessionaire, said water security is at the forefront of its service improvement plan from 2023 to 2027. It said other pillars of the plan are service continuity, service accessibility and environmental sustainability.
“These major pillars represent the projects that Manila Water will undertake to ensure continued water and wastewater services for the increasing population of the East Zone and Rizal Province, which continues to grow at an annual rate of 2 to 3 percent. Manila Water is earmarking P181 billion for the five-year plan, of which P105 billion are allotted for its massive capital expenditure program,” said Manila Water president and chief executive Emmanuel De Dios.
Manila Water said that with an annual water demand increasing at 3 percent and the need for additional supply of 15 percent during peak summer months, it is essential that new water sources be developed to ensure the continuity of 24/7 service and not be reliant on Angat Dam.
Manila Water started tapping Laguna Lake as an alternative water source for customers.
Construction of the Antipolo Water System is also underway with the Wawa Calawis Water Supply Project. Phase 1 will provide an initial 80 million liters per day, and an additional 438 MLD is expected to be completed by 2025.
“Implementation of Manila Water’s service improvement plan will ensure that water supply for East Zone customers will continue to remain 24/7 and at the same time, adequate wastewater and sanitation services will be available for those residing in San Juan, Mandaluyong, Pasig, Taguig, Pateros, Marikina, portions of Quezon City and Manila as well as Rizal province in the coming years,” De Dios said.
West Zone concessionaire Maynilad said around P101 billion of its capex would be allotted for water projects, while the rest would be for wastewater projects.
Maynilad’s five-year service improvement plan seeks to enhance water security, environmental sustainability, service expansion and disaster resiliency.
“A bulk of the investment will go toward developing more water sources, building more pumping stations and reservoirs and replacing old pipelines so we can deliver more water supply in response to the growing demand,” said Maynilad chief operating officer Randolph Estrellado.
Estrellado said these projects are important because some customers in the West Zone had yet to receive 24-hour water service.
“Areas in the farthest points of our distribution network, which still have limited supply availability, stand to benefit the most once we complete the construction of additional water treatment plants,” he said.
He said wastewater projects remained a priority, as the company built 20 wastewater facilities since 2007.
“We plan to build six more in the next five years so we can sustain sewer coverage expansion,” Estrellado said.
Maynilad proposed an average tariff increase of P13.31 per cubic meter, which would be implemented in tranches over the next five years. The company agreed with the MWSS Regulatory Office that the first tranche would only cover inflation adjustments, with succeeding tranches contingent on actual service improvements.
“We think it’s fair that we first deliver on that commitment before the succeeding increases are implemented,” said Estrellado.
“But for 2023, we need to at least be allowed an inflationary adjustment because the cost for running our facilities, particularly the input costs of producing water, has already doubled, and we have not implemented any rate adjustment for the past four years,” he said.
