Manila Water's contract extension approved

ABS-CBN News

Posted at Oct 22 2009 12:43 PM | Updated as of Oct 22 2009 08:48 PM

MANILA - The water distribution contract of Manila Water Co. Inc. in Manila's east zone has been extended by another 15 years.

In a disclosure to the Philippine Stock Exchange on Thursday, the Ayala-led firm said the Finance Department has approved the 15-year extension of its concession agreement with the Metropolitan Waterworks and Sewerage System (MWSS).

Manila Water said it is prepared to increase its total investment to P450 billion until 2037. Before the extension was approved, the company's contract was set to end on 2022.

"The approval of the (Finance department) confirms the government's guarantee of its contractual obligation relative to the extension...the concession agreement renewal is now in full force and effect," Manila Water said.

Manila Water provides water services to more than 1 million households in the East Concession area of Metro Manila, with more than 680,000 water service connections and 51,000 sewer service connections.

Recently, the company entered into a joint venture agreement with the provincial government of Laguna to develop and operate the water supply system there.