MANILA WATER Co., Inc. said the municipal council of Victoria, Laguna has approved the town’s inclusion in the service area of the Ayala-led company’s joint-venture Laguna AAA Water Corp.
In a disclosure to the stock exchange, the company said the Victoria Sangguniang Bayan issued a resolution dated Aug. 23, in line with the amended concession agreement between the provincial government of Laguna and Manila Water Philippine Ventures, Inc. (MWPV), a unit of Manila Water.
Laguna Water is the joint-venture company between the province of Laguna and MWPV.
The amended concession agreement was executed “to provide clean, safe, and reliable water supply to the entire province of Laguna and to replicate the improvements in water services in the cities of Biñan, Cabuyao and Sta. Rosa,” Manila Water said.
Manila Water said Victoria’s inclusion in their service area would require a capital investment of around P75 million for the construction of a deep well and treatment facility for water supply, as well the laying of over 14 kilometers of distribution lines.
The completion of initial phases of the project is scheduled for April 2018.
Victoria is a municipality adjacent to another Laguna town, Calauan, which was recently included in the service area of Laguna Water under the amended concession agreement.
The development comes about a week after the consortium led by Manila Water disclosed that it was taking 90% of the joint-venture company that it will put up with Obando Water District under a water concession project that will serve the town of Obando in Bulacan province.
Obando’s water district will own the remaining 10% of the joint venture, which will implement the concession project for the design, construction, rehabilitation, operation, maintenance, financing, expansion and management of water facilities and the provision of water and sanitation services.
The Manila Water consortium, in which the listed company holds a 49% stake, is under an entity called Obando Water Consortium Holdings Corp., while 51% is held by MWPV.
On Tuesday, shares in Manila Water were lower by 1.61% in early afternoon trading at P30.65 each. — Victor V. Saulon