METRO PACIFIC Investments Corp. (MPIC) on Thursday said its subsidiary has bagged the P12.35-billion project involving the rehabilitation and expansion of the existing water distribution system of Metro Iloilo Water District (MIWD).

In a disclosure to the stock exchange, the conglomerate said  MetroPac Water Investments Corp. received on Dec. 20 the notice of award for the project, which also includes the operation and maintenance of the water district and the construction of wastewater facilities.

MPIC said its unit and the water district would enter into a joint venture agreement (JVA) upon completion of the post-award activities.

“A joint venture corporation shall be organized pursuant to the provisions set in the JVA. The joint venture corporation shall implement the project including the right to bill and collect tariff for the water supply and wastewater services provided to the customers in the service area of MIWD,” it added.

The project for the 25-year concession has an estimated cost of P12.35 billion. MPIC said an initial equity investment of P600 million is required next year.

The water district’s service area includes Iloilo City and seven municipalities, specifically Pavia, Oton, Maasin, Cabatuan, Sta. Barbara, Leganes and San Miguel. As of 2017, the estimated population in the service area of the water district is 844,618.

The project comes after MetroPac Water in August agreed to form a joint venture company with the Cagayan de Oro water district to undertake the supply of bulk treated water in one of Mindanao’s most populated cities.

MetroPac Water was awarded the 100 million liters per day (MLD) bulk water project in March. The project has a term of 30 years and renewable for another 20. It involves the construction of new water transmission lines and the rehabilitation of the Camaman-an reservoir.

The company also is has an 80% stake in Metro Iloilo Bulk Water Supply Corp. It invested P2.8 billion to produce a capacity volume of 46 MLD, from the previous 32 MLD.

Another one of its projects is the Maragondon Bulk Water Supply, a joint venture agreement with Lucio Tan-led MacroAsia Corp. in partnership with the Maragondon Water District.

For water distribution, MetroPac Water owns 27% of Laguna Aquatech Resources Corp. (LARC). LARC is a joint venture partnership with Equi-Parco Construction Company for the full concession of Laguna Water District.

In waste water solutions, MetroPac Water holds 65% of Ecosystem Technologies International, Inc.

MPIC, with the expertise of its unit Maynilad Water Services, Inc., has been looking to expand its water venture in the Association of Southeast Asian Nations (ASEAN) region.

For the long term, MPIC is looking to develop a pan-ASEAN water company, company Chairman Manuel V. Pangilinan had said in August.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

On Thursday, shares in MPIC rose 0.60% to close at P6.75 each. — Victor V. Saulon

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