MANILA Water Philippine Ventures, Inc. (MWPV), a wholly owned subsidiary of Manila Water Co., Inc., acquired full ownership of Davao Del Norte Water Infrastructure Co., Inc. (Davao Water) after it bought the shares held by iWater, Inc.
“The acquisition is in line with the company’s strategic direction to maximize the business potential of existing ventures and take on opportunities for growth and expansion in Visayas and Mindanao,” Manila Water said in a disclosure on Tuesday.
Prior to the purchase, MWPV held 51% and iWater held a 49% equity interest in Davao Water.
Davao Water and the water district in Tagum, Davao del Norte partnered to implement a bulk water supply and purchase project, which is being carried out by their joint venture company, Tagum Water Co., Inc.
In 2015, Davao Water formalized a joint venture agreement with the Tagum City water district and formed Tagum Water Co., Inc.
The agreement covers the construction of a bulk water supply system, which includes an intake structure through riverbank filtration, a transmission pipeline, a 5,000-cubic meter water reservoir, and a water treatment plant with a capacity of 38 million liters per day.
The project began delivering water in May 2020 but is expected to fully complete its contract term in 2035.
It is estimated to benefit almost 300,000 people and will serve the water requirements of commercial and industrial establishments in Tagum City.
Manila Water brings water and wastewater services to the east concession zone of Metro Manila and Rizal province. Meanwhile, MWPV serves key metropolitan areas in Batangas, Laguna, Bulacan, Pampanga, Boracay, Iloilo, and Samar.
Manila Water Co., Inc. reported consolidated earnings of P3.7 billion for 2021, which was 18% lower than the previous year due to the pandemic.
In its unaudited report for 2021, revenues dropped 4% to P20.3 billion from P21.1 billion in 2020, due to lower billed volume across all segments in its east zone concession area and in several local subsidiaries, as well as lower customer consumption due to the pandemic.
At the stock exchange on Tuesday, Manila Water shares fell by P1.00 or 5.01% to P18.98 each. — Luisa Maria Jacinta C. Jocson