April 29, 2013

Laguna Water gets P500-M DBP loan

Manila Water Co. Inc. subsidiary Laguna Water Corp. has signed a P500 M term loan with the Development Bank of the Philippines to finance the modernization of facilities and expansion of its water network system.Manila Water said its subsidiary has the option to increase the term loan to P1.33 B.Laguna Water plans to develop new water sources beginning this year as part of its program to expand its coverage in its concession area to 80 percent by 2016.

The company recently reported a 165 percent increase in net income last year on the back of higher billed volume. Its net income reached P56.5 million in 2012 compared with P21.3 million in 2011. Revenues jumped by 97 percent year-on-year due to a 65 percent growth in billed volume.

Service connections grew last year because of the addition of new commercial accounts and expansion of the company’s base in previously unserved areas.