THE CONSORTIUM of Manila Water Co., Inc. and its subsidiary has signed a joint venture agreement with a water district in Bulacan to handle the latter’s water supply system and sanitation facilities, the Ayala-led company told the stock exchange on Thursday.
“The partnership seeks to improve the accessibility and quality of water supply to more than 12,000 residents of the municipality of Bulakan in the province of Bulacan including the provision of sanitation services,” Manila Water said in a statement.
Under the joint venture agreement, Obando Water Consortium Holdings Corp. — the consortium of Manila Water and its unit Manila Water Philippine Ventures, Inc. — will incorporate a joint venture company with Bulacan Water District.
Upon completion of conditions precedents set out in the agreement, the joint venture will then enter into a concession agreement with the water district for the implementation of the project for 25 years from the set commencement date.
The concession covers the design, construction, rehabilitation, maintenance, operation, financing, expansion, and management of the water district’s water supply system and sanitation facilities in Bulakan municipality.
The joint venture will have an outstanding capital stock of P150 million. The consortium will subscribe to 90% of the capital amounting to P135 million and the water district will hold the remaining 10% or P15 million.
Manila Water said the project is its second partnership with a water district in Bulacan after its 25-year concession agreement with Obando Water District early this year.
In 2017, the company also acquired the rights to provide water supply services in communities developed by Asian Land Strategies Corp., Solar Resources, Inc., and Borland Development Corp. through its operating unit.
On Thursday, shares in Manila Water slipped 1.77% to close at P25 each. — Victor V. Saulon