AYALA-LED Manila Water Co., Inc. said on Tuesday its consortium with a subsidiary signed a joint venture (JV)agreement with the water district of Tanauan to build and maintain the latter’s water supply and sanitation facilities.
Under the agreement, the listed company along with its unit Manila Water Philippine Ventures, Inc. will design, construct, rehabilitate, maintain, operate, finance, expand and manage the project, including the services of Tanauan Water District in Batangas province.
Upon completion of conditions precedent set out in the agreement, the consortium, through a special purpose vehicle, and the water district will execute the project for 25 years from the commencement date.
The entity will have an estimated capital expenditure of P1.509 billion and is estimated to deliver a potential billed volume of 27.5 million liters per day by year 2043.
In a statement, Manila Water quoted Manuel Lascano, a board member of the water district, as citing the need to acquire reliable skills and competencies, and sufficient capital in view of the growing requirements for reliable water supply and sanitation services in the area.
“Hence we have to look for a tested and experienced company with superior expertise over the others of similar interests, and we firmly believe that Manila Water is the best in the industry,” Mr. Lascano said.
He said the partnership would be a model of successful joint venture for water projects in Batangas and nearby provinces.
The joint venture comes after Manila Water disclosed on Jan. 25, that the subsidiary received a notice to proceed from the town of Manaoag in Pangasinan province to provide and improve the municipality’s water supply operation, maintenance, financing and expansion.
On Wednesday, shares in Manila Water traded higher by 0.92% to close at P27.50 each. — Victor V. Saulon