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By Sunday Post

A company owned by business tycoon Manny Pangilinan is showing keen interest to become a water provider of the province's water requirements. Exploratory talks are on the works involving the giant water firm and other water supply investors to clinch the most advantageous water deal the province can avail of, according to Gov. Edgar Chatto. Speaking during the radio simulcast “Kita, ug ang Gobernador”, Chatto revealed that the first round of talks however did not include yet the local government units that may be affected by the developments. He said the giant water concessionaire whose track record includes water and wastewater services provision for most parts of western Metro Manila has shown interest in investing in Bohol. Maynilad Water Services, Inc. has stared some exploratory talks with local officials, Chatto said.

The Maynilad Water team led by Chief Executive Officer Ricky Vargas, Senior Vice President (SVP) for Commercial and Business Patrick Gregorio, SVP for Water Supply, Mario Villasan, SVP for waste Management Julius Igesia and SVP for Marketing Services Patricia Hizon met with the governor at the People's Mansion Thursday evening, he said. At the meeting, the plan to put up investments in water supply especially in developing Loboc and Abatan rivers as possible sources of potable water also facilitated a lively exchange of ideas, according to the governor. The meeting which was accordingly attended by Vice Governor Concepcion Lim and Representative Erico Aumentado has Maynilad discussing about the proposal and on the viability as well as the possible impacts to the water quality the company would be getting. Chatto, who has stressed that water supply provision for highly urbanized areas as well as Panglao has become a top priority to sustain the momentum of are development in southwestern Bohol.

He also impressed that there is an apparent need for Bohol to get reliable, good-quality and affordable potable water supply. The governor also admitted that apart form Maynilad, there have been others who presented proposals to do similar water supply investments. But these will undergo the same process of evaluation, the governor who helped lay the stronger foundation for development in Tagbilaran and Panglao assured. In his experience of making the revamp in the water utilities in Tagbilaran, Chatto has pointed out the need to fastrack decision making on water supply investments because this is a dire need in highly urbanized areas and Panglao. He however assured, “in future development planning for Bohol, the processes especially in investments proposals would always be transparent.”

PROFILE: MAYNILAD WATER

Maynilad Water Services, Inc. (Maynilad) is the water and wastewater services provider for the 17 cities and municipalities that comprise the West Zone of the greater Metro Manila area. In 1997, the company was granted a 25-year exclusive concession by the Philippine Government, through the Metropolitan Waterworks and Sewerage System (MWSS), to operate, maintain and invest in the water and sewerage system in Caloocan, Las Piñas, Malabon, Manila, Muntinlupa, Navotas, Pasay, Parañaque, Valenzuela, parts of Quezon City, a part of Makati, Cavite City, and the municipalities of Rosario, Imus, Noveleta, Bacoor, and Kawit in Cavite. Maynilad went through a change of ownership on January 24, 2007, with the consortium of DMCI Holdings, Inc. (DMCI) and Metro Pacific Investments Corporation (MPIC) winning 84% of the water company's shares in a public bidding. MPCI is the company identified with Pangilinan.

The corporate history of Maynilad began with the successful privatization of the Metropolitan Waterworks and Sewerage System (MWSS) in 1997. Before then, MWSS was the government corporation in charge of providing water supply and sewerage disposal services in the greater Metro Manila area. In a highly anticipated bidding that drew the attention of the global water community, the partnership of Benpres Holdings Corporation (Benpres) and Ondeo Water Services, Inc. (formerly Suez Lyonnaise de Eaux) was awarded the exclusive right to run the water and wastewater operations in the West Zone of Metro Manila. Towards its 10th year, after a string of financial, legal, and regulatory disputes, Maynilad went through a change of ownership, with the consortium of Metro Pacific Investments Corporation (MPIC) and DMCI Holdings, Inc. (DMCI) acquiring 83.96% of the water company's shares. Lyonnaise Asia Water Limited (LAWL) held a 16% share.

The MPIC-DMCI consortium took over on January 24, 2007, and immediately worked on the financial and operational rehabilitation of Maynilad. In August of the same year, the consortium signed a prepayment and settlement agreement with Maynilad's creditors and MWSS. By January 2008, the new owners of Maynilad had already paid off the company's outstanding debts, which had then reached $240 million. An aggressive catch-up plan was also implemented to increase company revenue, improve water service operations, and drastically cut commercial losses. To herald the sweeping transformation that was about to take place, Maynilad launched its new company logo in November 2008. The new logo reflected the new direction and renewed mission of the company's management team. Positive change has finally come to Maynilad. And soon, the results will be felt in all of West Zone.

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