Maynilad, Manila Water concession deals get 10-year extension

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The concession agreements of Maynilad and Manila Water are extended until 2047

MANILA, Philippines – The Economy and Development (ED) Council, formerly the National Economic and Development Authority Board, approved the 10-year extension of Maynilad’s and Manila Water’s concession agreements.

The ED Council on Wednesday, June 18, approved the request of the Metropolitan Waterworks and Sewerage System to extend the revised concession deals to ensure sustained access to water for Metro Manila.

The extension will last from July 31, 2037, to January 21, 2047.

According to the Department of Economy, Planning, and Development (DEPDev), the extension aligns with the legislative franchises of both concessionaires.

Apart from securing long-term water supply, the extension is also expected to generate P50.3 billion in additional government revenues.

“Ensuring water security is fundamental to fostering economic growth and improving the quality of life for our growing population. By aligning the concession agreements with legislative franchises, we are promoting policy coherence and long-term investment planning in the water sector, which are essential for delivering clean, reliable, and affordable water services to millions of Filipinos,” said DEPDev Secretary Arsenio Balisacan.

Other projects approved by the ED Council in its inaugural meeting include the Department of Agriculture’s P27.7-billion farm-to-market bridges development program and the P5.1-billion construction of the Liloan Bridge in Cebu, the bailiwick of Tourism Secretary Christina Frasco.

Maynilad IPO

The extension of Maynilad’s concession agreement comes nearly a month before it is set to go public.

The Pangilinan-owned water firm will conduct its initial public offering (IPO) from July 3 to 9, with its listing on the Philippine Stock Exchange on July 17.

According to the Securities and Exchange Commission, Maynilad could net up to P37.41 billion from its IPO. Proceeds will be used to fund Maynilad’s capital expenditures and other corporate general purposes. – Rappler.com