Stock News 2012: Maynilad allots P300 million for repair of leaking pipes

West Zone concessionaire Maynilad Water Services, Inc. has allocated P300 million for the repair of pipe leaks this year.

Maynilad said in a statement yesterday that the P300 million would be spent for its active leakage control program which involves the repair of pipe leaks as well as the maintenance of accessories.

Maynilad has also allotted P20 million for the purchase of a new leak detection equipment.

The firm uses state-of-the-art leak detection technologies to control pipe leaks.

“We inherited a lot of old and deteriorated pipes. Instead of implementing total pipe replacements which are very costly and disruptive to the public, we’re actively searching for underground leaks so we can repair them using more cost-efficient means,” Ricky Vargas, president and chief executive officer of Maynilad said.

Maynilad said that for the first quarter, it has already repaired nearly 12,000 leaks, which is approximately 17 percent higher compared to the same period last year.

Most of the leaks were found on primary and secondary lines in Caloocan, Manila and Quezon City.

Maynilad has set its capital expenditures for this year at P8.4 billion to improve and expand its water and wastewater services.

The firm said earlier it was looking to raise P2 billion in the latter part of the year to fund development projects.

Maynilad is the largest private water concessionaire in the country in terms of customer base.

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Stock News 2000: Uniwide To Dispose Of Properties

The new logo of United Coconut Planters Bank (Photo credit: Wikipedia)
The debt-saddled Uniwide Group will dispose of over 13 hectares in land and building properties, including part of the ambitious Dreamworld project in Naic, Cavite, as part of its repayment scheme to bank creditors.

Among the real estate properties that will be turned over to United Coconut Planters Bank (UCPB) in the dacion en pago arrangement include a 3,111-square meter land with building structures in Tambo, Baclaran; a 14,529-sqm. land area in Calaanan, Caloocan City; and a 112,865-sqm. lot that would have formed the first phase of the development of Dreamworld, a theme park with commercial and amusement centers.

Uniwide, through its 98-percent subsidiary Uniwide Sales Realty and Resources Corp., has forged an agreement with UCPB, a major creditor in its more than P11 billion debt load, to settle P1.044 billion in loan through a dacion de pago involving these properties.

The agreement followed the sale of its convenience store chain, the Uniwide Family Stores, operated by its subsidiary First Paragon Corp. to I-Mart International Corp. for P145 million. This was the first action taken by Uniwide in line with its rehabilitation program overseen by a three-man receivership committee selected by the Securities and Exchange Commission.

The SEC has given the go-signal for the sale of one of Uniwide's prime assets, which was likewise approved by other major creditors Equitable-PCI Bank and Philippine Bank of Communications.

"The interest of FPC's creditors is best served with the proposed conversion of deteriorating assets into cash," the SEC said in its order.

Uniwide investor relations manager Susan Ligerade said while the sale of the store franchise effectively reduces the franchise revenues of the company, "there still remains four Uniwide family store franchises of Uniwide Holdings Inc., which are owned and operated by third party franchisees and from which UHI collects franchise fees."

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