MANILA WATER Co., Inc. said its concession deal in Balagtas, Bulacan was terminated after the area’s water district’s failure to complete a section in the issued notice of award.
In a regulatory filing on Thursday, the east zone water concessionaire disclosed that the notice of award was revoked and terminated as a result of the non-completion by Balagtas Water District (BWD) of a precedent financial condition.
Manila Water did not disclose the specific financial condition but said it was decided upon by the parties during the issuance of the notice of award.
“With this and despite the best efforts of both parties, the joint venture between the consortium of Manila Water and Manila Water Philippine Ventures, Inc. (MWPV) and the BWD will no longer proceed,” the company said in the disclosure.
Manila Water announced in a stock exchange disclosure on March 23 that it had officially received BWD’s decision to revoke and terminate the notice of award for the water project.
In April 2018, the consortium of Manila Water and MWPV was awarded a 25-year concession deal to implement P400 million worth of water and used water projects in Balagtas. The deal was estimated to provide 22 million liters of water to customers in the area.
Under the concession deal, Manila Water was set to create a joint venture company together with BWD and MWPV for the water project.
The joint venture was supposed to design, construct, rehabilitate, operate, maintain, finance, expand, and manage the water supply system and water and sanitation services in Balagtas.
Manila Water reported an attributable net income of P4.50 billion last year, a drop of 18.2% year on year, as a result of lower contribution from its domestic subsidiaries because of the pandemic.
The company disclosed that its consolidated operating revenues for 2020 fell 2.4% year on year to P21.13 billion due to weaker contributions from its Estate Water and Boracay Water.
BusinessWorld sought the comment of BWD regarding the concession deal but has not received a response as of deadline time.
On Thursday, shares of Manila Water at the stock exchange fell 0.42% or six centavos to close a P14.30 apiece. — Revin Mikhael D. Ochave