MANILA WATER SIGNS US$30 MILLION LOAN WITH INTERNATIONAL FINANCE LTD.

Manila Water Company has signed a US$30 million loan agreement with World Bank's investment arm, International Finance Ltd. (IFC).

The agreement provides for favorable rates and re-payment scheme, including a 15-year loan duration and a 3-year grace period. This is Manila Water's second major international loan after borrowing US$20 million from DEG (German Development Bank) last year. Both loans form part of the financing package that will be used to fund Manila Water's capital investments in the next three to five years.

The IFC loan marks a significant event for Manila Water as it affirms the international community's confidence in the Manila-based water utility company amidst present global uncertainties.

Manila Water president Antonino T. Aquino cited the support of IFC for the company's infrastructure thrust and expressed appreciation for this vote of confidence.“This loan agreement is a manifestation of the meaningful and mutually rewarding relationship between these two institutions," said Aquino.

IFC director for infrastructure Declan Duff noted: “By supporting this successful private water concessionaire, IFC hopes to send a positive signal to the market and to other governments about the benefits of private participation in infrastructure."

Manila Water is one of the two concessionaires which were awarded in 1997 the right to operate the water service in Metro Manila. The company has since made significant improvements in service in terms of water quality and service availability throughout the east concession area. The company is an affiliate of Ayala Corporation, one of the largest and most established conglomerates in the region, with investments in the real estate, telecom and the banking sectors.