A UNIT of Manila Water Co., Inc. has received approval to proceed with the construction of a water supply system in San Fabian, Pangasinan after it was granted the franchise by the municipality, the listed company said on Tuesday.
In a disclosure to the stock exchange, Ayala-controlled Manila Water said its wholly owned subsidiary Manila Water Philippine Ventures, Inc. (MWPV) received notice to proceed after San Fabian enacted Ordinance No. 19, Series of 2018.
The total capital expenditure for the project is estimated at P742 million.
“The project is expected to be operational by 2019,” it added.
The ordinance grants MWPV the franchise to establish, construct, operate, manage, repair and maintain water supply system and facilities. It also grants the company the franchise to provide septage management in San Fabian.
San Fabian in northeastern Pangasinan, where Manila Water also has a concession agreement with the Calasiao Water District.
The franchise granted to MWPV covers 25 years. It has an assumed billed volume of 12.6 million liters per day (MLD) by the end of the franchise period.
Manila Water also announced that MWPV received on Friday a notice of award from the Tanauan Water District in Batangas to implement a joint venture project for the design, improvement, upgrade, rehabilitation and expansion of the town’s water supply and sanitation facilities.
The notice of award also includes the financing and construction of such facilities and infrastructure, the management, operation and maintenance of water supply and sanitation facilities, and the provision of incidental services.
The project, which has an estimated capital expenditure of P1.509 billion over 25 years, is estimated to deliver a potential billed water volume of 13.18 MLD.
Manila Water said upon completion of the conditions specified in the notice, its consortium with and MWPV will enter into a joint venture agreement with the water district for the implementation of the project.
On Tuesday, Manila Water rose 1.18% to P25.70. — Victor V. Saulon
