MANILA WATER Co., Inc. said on Wednesday that it had signed a 30-year raw water supply offtake agreement with state agency Metropolitan Waterworks and Sewerage System (MWSS) and WawaJVCo, Inc.
In a disclosure to the stock exchange, the Ayala-led water concessionaire for Metro Manila’s east zone said the agreement would involve the supply of raw water from the Wawa and Tayabasan rivers.
“The first phase will involve the supply of 80 million liters per day (MLD) of raw water by December 31, 2021 while the second phase will involve the supply of an additional 438 MLD of raw water by December 31, 2025,” it said.
“This is among the medium-term water supply augmentation measures identified to provide water security and sustainability to the consumers of Manila Water in the East Service Area,” it added.
WawaJVCo is a joint venture company formed by Prime Metroline Infrastructure Holdings Corp. and San Lorenzo Ruiz Builders and Developers Corp.
Manila Water said the effectivity of the offtake agreement is subject to “the fulfillment of conditions precedent.”
In March this year, Manila Water signed a memorandum of understanding with Prime Metroline to cooperate in the possible development of a water supply source east of Metro Manila — the Wawa bulk water supply project.
At that time, the parties agreed to form a technical team that would conduct a technical due diligence on the Wawa project.
Based on the recommendations of the technical team, the parties will discuss the possibility of having an offtake arrangement, which shall be subject to the prior review and approval of the MWSS.
On Wednesday, shares in Manila Water slipped by 0.22% to P22.35 each. — Victor V. Saulon
