Boracay Island Water Company

active

In April 2009, Manila Water Company was awarded the right to provide water and sewerage services in Boracay Island on a BROT basis by the Philippine Tourism Authority(PTA). In the following month, a joint-venture agreement was signed by Manila Water(80%) and Philippine Tourism Authority (PTA)(20%) to operate, manage, rehabilitate, expand and finance water and sewerage services on the island for 25 years, with a possible extension for another 25 years. PTA is a state-owned corporate entity under the Department of Tourism with a unique role of promotion and development of the country's tourism industry. The project reached its financial closure in December 2009. Under the terms of the agreement, Boracay Island Water Company (BIWC), the joint venture company would invest US$ 26.6 million (PHP 1.25 billion) during the life of the concession to expand water and sewerage capacity on the island. Of this amount, US$ 21.3 million (PHP 1 billion) would be invested in the first year alone to boost water supply capacity from the present 2 million liters to 6 million liters per day. BIWC would also spend an initial US$ 5.3 million(PHP 250 million) to upgrade PTA’s two water pumping stations and lay 8.5 km-long pipes to provide clean water to the residents. In August 2011, the BIWC closed debt financing of US$ 11.6 million (PHP 500 million). The funds were arranged from the Philippine Water Revolving Fund and were sourced from the Development Bank of the Philippines, the Security Bank Corporation, and the Japan International Cooperation Agency. The loan, with an optional upsize feature of another US$ 11.6 million, carries a tenor of 20 years, which matches the company's concession period of 25 years. The company announced that the funds would be used to achieve 100% water coverage by 2014 and 100% sewerage coverage by 2018. As of November 2009, Ayala Corp owns Manila Water by 43.3% As of May 2010, Manila Water is planning to spend P1.2 billion for its projects in Boracay Island and Laguna over the following three years. From govenment website - (http://www.tourism.gov.ph/) "Total cost for the 25-year undertaking in Boraca was initially estimated at P1.2 billion. Of this amount, P1 billion will be invested in the first year alone to boost water supply capacity from the present two million liters a day to six million liters daily. BIWC will spend an initial P250 million to upgrade PTA’s two water pumping stations and lay 8.5 kilometers of pipes to make clean water available to Boracay residents and tourists 24 hours a day." PHP1.2 billion = PHP1 billon + PHP0.25 billion = PHP 1.25 billion???