Metro Pacific to ramp up water business expansion

By Arra B. Francia, Reporter

SYDNEY, Australia ― Metro Pacific Investments Corp. (MPIC) is ramping up the expansion of its water business outside of Metro Manila, as it eyes 26 projects in partnership with local water districts.

During a press briefing here on Thursday, Metro Pacific Water Investments Corp. (MetroPac Water) President Laurence R. Rogero said the proposed projects, with a total volume of 3,214 million liters per day (mld), targets to serve 19.1 million people.

“With Maynilad as a platform for growth, the group is very, very well positioned to take advantage of the opportunities of the water sector outside Metro Manila,” he said, referring to sister company Maynilad Water Services Inc. which holds the west zone concession for Metro Manila. “What it takes is a good understanding of the patchwork of regulations that are very difficult to understand.”

Of the 26 projects, 11 are for bulk water, eight are for full concession, and one is for waste water. Two are international projects, while the remaining four are under different classifications.

For its partnerships, Mr. Rogero said the company looks for those classified as Class A water districts based on Local Water Utilities Administration guidelines.

“These are basically water districts that have good credit standing but are unable to tap into funding sources, not necessarily because of their inability to or inexperience,” he said. “These are small water districts that maybe have outgrown their capabilities already, so that’s why they’re not able to supply the water.”

MetroPac Water noted the market outside Metro Manila is 85 million, compared to the nine million being served by Maynilad and 13 million for the east zone served by Manila Water.

“Metro Pacific Water could be selling twice as much water as Maynilad, by the time these projects come to fruition. And in terms of contextualizing the size opportunity, it’s a huge undertaking. It’s small today, but the potential is huge,” MPIC Chief Finance Officer David J. Nicol said during the same press briefing.

To-date, MetroPac Water has five projects, including the Metro Iloilo Bulk Water Supply Corp., where the company holds 80% ownership. Mr. Rogero noted Iloilo had been unable to deliver proper services to around 860,000 customers until the company’s entry. The company invested P2.8 billion to produce a capacity volume of 46 MLD, from the previous 32 MLD.

MetroPac Water also poured in P2.8 billion for Cagayan de Oro Bulk Water, Inc., where it effectively owns 95%. This project serves around 600,000 people through 100 MLD bulk water supply.

Another is the Maragondon Bulk Water Supply, a joint venture agreement with Lucio Tan-led MacroAsia Corp. in partnership with the Maragondon Water District.

For water distribution, MetroPac Water owns 27% of Laguna Aquatech Resources Corp. (LARC). LARC is a joint venture partnership with Equi-Parco Construction Company for the full concession of Laguna Water District.

In waste water solutions, MetroPac Water holds 65% of Ecosystem Technologies International, Inc.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.