MAYNILAD Water Services, Inc. has chosen a consortium led by a unit of DMCI Holdings, Inc. to build a 150-million-liters-per-day (MLD) plant that will treat water from Laguna Lake, a company related to the water concessionaire said.

First Pacific Co. Ltd. told the stock exchange of Hong Kong, where it is listed, that Maynilad had entered into a service contract with AA-DMCI Laguna Lake Consortium on Jan. 28 for the project.

“The scope of work under the Project involves the provision of engineering design, construction, supply and installation of electromechanical equipment or process units, testing, commissioning and process-proving of the Facility,” it said in a disclosure on Jan. 29.

The First Pacific group has approximately 51.3% interest in Maynilad Water Holding Co., Inc. (MWHC), the holding company of Maynilad incorporated in the Philippines.

Consunji-led DMCI Holdings, being a 27.2% shareholder of MWHC, is a connected entity to First Pacific.

The service contract was awarded to AA-DMCI Laguna Lake Consortium, which is a partnership of DMCI Holdings unit D.M. Consunji, Inc. and Spanish firm Acciona Agua, S.A.

Sought for comment, an official of Maynilad said Metro Manila’s west zone concessionaire was preparing a statement on the matter. The official did not disclose the cost of the project when asked.

First Pacific said the project’s scope of work includes the installation of an intake system from, and a brine discharge system into, Laguna Lake, treated water reservoir and pumping station and connection of the facility to the water distribution network.

The service contract forged with the consortium sets out the terms and conditions governing the relationship between the parties, including but not limited to the contract price and terms of payment, scope of work, project milestone dates and confidentiality.

First Pacific said the service contract has a term of 1,679 calendar days to take effect from Jan. 28, 2020 to the issuance of the performance certificate, comprising an initial period during which the consortium is to perform the scope of work, followed by a defects notification period of 730 days, which runs concurrently with a process-proving period of 365 days.

Maynilad, a concessionaire of the state-led Metropolitan Waterworks and Sewerage System, serves the cities of Manila, except portions of San Andres and Sta. Ana. It also covers Quezon City west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the districts of the Holy Spirit and Batasan Hills.

Down south, it serves Makati west of South Super Highway, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; and the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.

Ramoncito S. Fernandez, Maynilad president and chief executive officer, said in December last year that the company had diversified using its permission from the MWSS as early as 2009 to build two water treatment plants in Putatan, Muntinlupa ahead of a third plant in Poblacion of the same town in January.

Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

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