Maynilad on the Mend Rebidding Process Infuses New Life to a Struggling Concessionaire

Abstract

In January 2007, the new and all-Filipino partnership of DM Consunji Holdings Incorporated and Metro Pacific Investments Corporation (DMCI-MPIC) took over the reins of Maynilad Water Services, Inc., Metro Manila’s beleaguered water concession. They replaced the almost decade-long partnership of Maynilad’s previous shareholders—Benpres Holdings Corporation, Suez Environment, Lyonnaise Asia Water Pte Ltd, and Metrobank. Exactly 1 year later, the new Maynilad has paid off its remaining foreign debts of about $240 million, allowing them to exit Maynilad’s rehabilitation phase way ahead of its 2013 deadline. In addition, the newly revitalized company has embarked on a 33 billion Philippine Peso (P) capital expenditure program for 2007–2015, with P8 billion eamarked for 2008 alone.