A UNIT of Metro Pacific Investment Corp. (MPIC) has received the notice of award to operate a water district in Dumaguete City under a P1.62-billion concession agreement that spans 25 years, the listed firm said on Wednesday.
MPIC said its subsidiary MetroPac Water Investments Corp. (MPW) received on May 16 the award, which covers the “rehabilitation, operation, maintenance, and expansion” of Dumaguete City Water District’s (DCWD) existing water distribution system and the development of wastewater facilities.
The holding firm said upon the completion of post-award activities, MPW and the water district will enter into a joint venture agreement (JVA).
“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 DCWD,” MPIC said.
The project cost for the duration of the 25-year concession is estimated at P1.62 billion, with an initial equity investment of P700 million in 2018.
“DCWD serves Dumaguete City and portion of the Municipalities of Valencia, Sibulan, and Bacong. As of 2018, the estimated population in the area being served by DCWD is 162,389,” MPIC said.
The Dumaguete City concession adds to MPW’s existing water projects in the Philippines and Vietnam.
In Iloilo, it has a bulk water supply project with partners amounting to 170 million liters per day (MLD) when completed.
Across Iloilo and nearby municipalities, it has a concession for water distribution and the provision of wastewater services currently serving 38,000 connections.
A unit, Laguna Water District Aquatech Resources Corp., has expanded its coverage to additional barangays in Nagcarlan. It has also increased water pressure in several locations and improved 24/7 water availability coverage to 95% from a pre-takeover 57%.
In August 2017, MPW signed a joint venture agreement to undertake the supply of up to 100 MLD of bulk treated water to address the requirements of Cagayan de Oro City. The project has a minimum term of 30 years with operations starting on Dec. 31, 2017.
Also in August 2017, the company was granted original proponent status for Pampanga’s bulk water supply project by the province’s governor. Detailed negotiations for the project continue.
In Vietnam, MPW entered into an agreement in November 2017 for the acquisition of 45% of BOO Phu Ninh Water Treatment Plant Joint Stock Co. (PNW). PNW has a license to serve clean water demand in the Chu Lai Open Economic Zone and adjacent areas in Quang Nam province.
The company’s projects have a total contracted or potential capacity to provide more than 390 MLD of water, which is equivalent to 28% of the 1,402-MLD billed volume of affiliate Maynilad Water Services, Inc.
On Wednesday, MPIC shares fell 2.04% to P5.29. — Victor V. Saulon