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News & Announcements

Maynilad extends contract, confirming earlier GMANews.TV report

By GMA News on September 15, 2009

Metro Manila’s water agency has approved the contract extension of Maynilad Water Services Inc. (MWSI), confirming an earlier GMANews.TV report that was denied by a senior official at that time.

This was announced by DMCI Holdings Inc., one of Maynilad’s two joint venture owners, in its disclosure to the Philippine Stock Exchange (PSE).

“The Metropolitan Waterworks and Sewerage System (MWSS) Board of Trustees issued a resolution approving the water company’s term extension application," DMCI said.

Two weeks before this announcement was made, GMANews.TV came out with an exclusive report indicating that Maynilad already secured MWSS approval for its petition to extend its contract.

A day after GMANews.TV published the report, it was denied by MWSS Administrator Diosdado M. Allado.

“Any report or statement that suggests that this is a completed process and we have granted the said request of Maynilad is premature, inaccurate, and irresponsible," a text message sent by Allado said in a previous report.

The approval – which would allow Maynilad to provide water in its service area for 15 years – still requires concurrence of the Department of Finance (DOF).

Extending its service contract “will also enhance Maynilad’s ability to undertake long-term projects that will ensure the reliability and security of water supply for the West Zone, address environmental issues with an accelerated sewerage program, and generate thousands of jobs from these increased capital expenditures," DMCI said.

Maynilad has installed 137,000 new connections, increased 24-hour water supply coverage to 60 percent of its concession area, and spent nearly P20 billion to replace old pipes, upgrade facilities, and expand its distribution network to accelerate improvement of water and sewerage services in the West Zone, the company said.

Its joint venture partner is Metro Pacific Investments Corp., which runs hospitals in Davao and Metro Manila and is engaged in building toll roads. - GMANews.TV