WEST ZONE water concessionaire Maynilad Water Services, Inc. said its capital expenditure (capex) budget for 2025 could be P30 billion or higher as the company sees a better financial year.
“For this year, we’re looking at anywhere between P30 billion and above P30 billion (in capex),” Maynilad President and Chief Executive Officer Ramoncito S. Fernandez told reporters last week.
Mr. Fernandez said the budget will be allocated to water and wastewater projects, non-revenue water management programs and ongoing plant constructions.
Non-revenue water refers to water that is not billed and is lost through leaks or illegal connections.
Last year, Maynilad earmarked P31 billion in capex to fund its water and wastewater developments.
Maynilad is expected to have a better financial performance this year, according to Mr. Fernandez.
“The economy is still growing and definitely demand for water will still continue to grow. Water availability has significantly improved in the past 24 months. We’re looking forward to a much better year,” he said.
“Plus, all of our programs and projects have already started to yield a positive impact on our operations,” he added.
Maynilad Chairman Manuel V. Pangilinan said last week that the water provider was in talks with banks for its initial public offering (IPO). Maynilad’s legislative franchise requires it to list on the stock exchange by January 2027.
In November, Mr. Fernandez said that Maynilad would file its IPO application by the first quarter of 2025.
He added that the water provider was targeting a listing date of either April or July.
Maynilad serves Manila, except portions of San Andres and Sta. Ana. It also operates in Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon.
It also supplies the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario, all in Cavite province.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being 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. — Revin Mikhael D. Ochave