Tuesday, 24th October 2017
2:15:37am

Popular

MRWD’s loan takeout could rise to P1-B

Rate this item
(0 votes)

By Ralph John Mijares & Edalyn Acta

 

ROXAS CITY—The Metro Roxas Water District (MRWD) management wants to add P 184-million to its planned P847-million loan takeout which increases the amount to P1.031-billion.


In a meeting with MRWD’s interim board of trustees on July 11, General Manager Gonzalo Glen Delgado said that the management has proposed to add P 184-million more to their proposed loan takeout with the Development Bank of the Philippines (DBP). However, the entire proposed loan takeout has yet to be approved.


If Local Water Utilities Administration (LWUA) rejects the entire proposed takeout, the MRWD has to implement a 29% water rate hike because of its poor financial condition, Delgado said.


In a previous interview with The Capiz Times, Delgado claimed that MRWD is mired in some P1-billion worth of debt and is currently operating on loss.


Once the P1.031-billion loan takeout is approved, the water rate increase could only reach 10%. And there might be no rate hike within the next five to 10 years, he added.


Then in a recent city council session, Delgado said that MRWD needs to increase its water rates to pay off its loan with LWUA, lessen operation and maintenance expenses and add to their cash reserves. The same will also be used to fund its planned capital expenditures for projected service expansion, provision of additional water supply capacity in 2017 and further nonrevenue water reduction.


He said that the loan takeout with the DBP is for MRWD’s loan from LWUA used to finance its expansion and improvement projects.


With the additional loan takeout, MRWD wants to further reduce the proposed interest rate from 5.3% to 5%, Delgado said. The current interest rate of the two different loan accounts is 8.5% (P184M and P847M are two different loan accounts).


Delgado said that MRWD proposed to LWUA for a water rate increase supposed to take effect on January 2014 and cited three scenarios regarding this proposal:


1. If there would be no water increase by 2014, and the P25-million loan takeout with DBP was approved, there would be negative projected net cash flows from 2014 to 2018 and negative projected total ending cash balances from 2016 onwards;

 

2. If the 29-percent water rate increase is approved in 2014, with P25-million loan takeout with DBP, there is positive projected net cash flow and total ending cash balances from 2014 onwards; and


3. With a 10-percent water rate increase in 2014, a P25-million take-out loan with DBP, and a P827-million 15-year takeout loan with DBP, this would contribute to a negative projected net cash flow in 2014, but with positive cash flow amounts from 2015 onwards and positive total ending cash balances from 2014 onwards.


According to Delgado, the P 25-million takeout with the DBP was approved by LWUA’s Board of Trustees on March 20, but has reduced to P19,142,831.16 because the water district has been paying off the part of the amount for more than a year now.


A takeout is done with a bank that is willing to pay off the loan’s principal amount in behalf of the payee and would only charge the latter at an interest rate lower than its previous lender.

Read 52 times

Leave a comment

  • Zakharfax
    Zakharfax
    Tuesday, 24 October 2017 15:33

    delivery viagra cheap

    order viagra online

    order viagra online

    very good site mexico viagra

    Report
  • Nadezhdafax
    Nadezhdafax
    Tuesday, 24 October 2017 15:31

    when cialis generic

    http://cialisuyb.com/ - cialis

    order cialis online

    ed pills cheap cialis 40mg

    Report
  • Ameliavaf
    Ameliavaf
    Friday, 20 October 2017 14:34

    cialis from canada pharmacies

    canadian cialis

    cheap cialis online canada pharmacy

    do you need a prescription for viagra in canada

    Report
  • Icebutizek
    Icebutizek
    Tuesday, 17 October 2017 06:01

    diabetes type 2 and viagra
    http://cialisrxviagra.com/ - Viagra online
    sample free herbal viagra
    generic Viagra online
    how long does it take to get an erection after taking viagra
    http://cialisrxviagra.com
    how soon before having sex should you take viagra

    Report