MWC II

completed

In 1997, Manila Water Company, Inc. (MWCI) won a competitive tender to operate the Metro Manila East water supply and wastewater service zone under a 25-year concession agreement. It inherited facilities that require significant rehabilitation and to date MWCI has spent approximately $70 million for its own capital expenditures and close to $123 million in projects funded through multilateral bank loans to the conceding authority, Metropolitan Waterworks and Sewerage System (MWSS). In 2003, IFC provided a loan in support of MWCI’s operations. IFC is now considering extending a second loan to help to support MWCI’s expenditure program through 2007. These expenditures will include the following components: - new raw water sources development; - service expansion to east and southeast areas of the concession; - network distribution improvement; - other pipe extension and improvement projects; - water supply facilities; - non-revenue water (NRW) reduction programs; - sewerage & sanitation services; and - payment of concession fees to MWSS.IFC is also considering an equity investment in MWCI in preparation for its planned flotation of shares on the Philippines Stock Exchange as early as 2005.