MAYNILAD/BW FILE PHOTO

MAYNILAD Water Services, Inc. said it is ramping up long-term investments in water infrastructure following the 10-year extension of its revised concession agreement (RCA), which aligns the contract period with its legislative franchise ending in 2047.

“The extension enables us to pursue long-term planning and investments needed to continuously improve service delivery to our customers,” Maynilad said in a statement on Thursday.

On Wednesday, the Economy and Development Council, formerly known as the National Economic and Development Authority (NEDA) Board, said it had approved the 10-year extension of the concession agreements for Maynilad and Manila Water Co., Inc.

The council approved the request of the Metropolitan Waterworks and Sewerage System to extend the RCAs of the two water service providers to ensure “sustained access to safe, reliable, and affordable water for Metro Manila and surrounding provinces.”

According to the Department of Economy, Planning, and Development (DEPDev), the extension is projected to generate additional government revenues of P50.3 billion.

“This development affirms the government’s commitment to ensuring affordable, reliable, and sustainable water services,” Maynilad said, adding that the extension promotes the public’s interest in affordable water security.

East zone concessionaire Manila Water said it has yet to receive the formal notice of approval.

“[Manila Water] shall make the appropriate disclosure upon receipt of the formal approval and full execution of the amendment to the RCA extending the concession term,” the company said in a regulatory filing.

Both companies secured the extension of their revised contracts until 2047, aligning with their 25-year legislative franchises.

Maynilad and Manila Water were each granted a 25-year legislative franchise under Republic Act Nos. 11600 and 11601, respectively. Both laws took effect in January 2022.

Manila Water serves the east zone of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province.

Maynilad serves portions of Manila, Quezon City, and Makati. It also operates in Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. In Cavite province, it supplies water to the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario.

Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera