MANILA WATER Co., Inc. and its two consortium partners have been awarded a 25-year contract to develop the water district of San Jose City in Nueva Ecija, the Ayala-led listed company said on Wednesday.
Manila Water told the stock exchange that it had received the notice of award from the San Jose City Water District-Nueva Ecija (SJCWD) “for the implementation of the joint venture project for the design, construction, improvement, upgrade, rehabilitation, maintenance, operation, financing, expansion, and management of the water supply system and the provision of water and sanitation services.”
Its partners in the consortium are its wholly owned subsidiary Manila Water Philippine Ventures, Inc. (MWPV) and Tubig Pilipinas Group, Inc. (TPGI), a company whose founders also have development projects in the energy sector.
Manila Water estimated the project will entail a capital expenditure budget of over P1.399 billion over the 25-year period.
By the 25th year, the San Jose water project is estimated to have a billed volume of about 21 million liters per day.
Manila Water said upon the completion of the conditions precedent specified in the notice of award, the consortium partners and the water district would enter into a joint venture agreement that will grant them “as contractor to perform certain functions and as agent for the exercise of its right and powers, the sole right to develop, manage, operate, maintain, repair, refurbish and improve, expand and as appropriate, decommission, the facilities in the service area, including the right to bill and collect tariff for water and sanitation services supplied in the service area of SJCWD.”
The award follows Manila Water’s disclosure on Nov. 16 that MWPV and Tubig Pilipinas had agreed to form a joint venture company (JVC) to handle the water supply of Malasiqui, Pangasinan. MWPV and TPGI will own 50% and 50%, respectively, of the JVC’s outstanding capital stock.
Manila Water and its unit MWPV on Nov. 16 also announced the signing of a joint venture agreement with Ilagan City’s water district for a bulk water supply project, which includes water system expansion and septage management.
Manila Water also received on Nov. 27 the notice of award from the Lambunao Water District for a joint venture for the design, construction, rehabilitation, maintenance, operation, financing, expansion, and management of the Iloilo town’s water supply system.
It also received on the same day a similar notice from the municipality of Calinog in Iloilo province. — Victor V. Saulon
