Cebu awards water services project to Manila Water
MANILA, Philippines - The provincial government of Cebu has privatized and awarded its bulk water system services to a consortium led by Manila Water Company Inc.
In a disclosure of Manila Water to the stock exchange on Monday, February 6, the project involves the supply of "35 million liters per day of potable bulk water sourced from Luyan River in the Municipality of Carmen" to provide for the "water demands in the northern and central portions of the province."
The private consortium, called Manila Water Consortium, and the government of Cebu will execute a joint investment agreement based on a 49%-51% equity participation for the development operation and maintenance of bulk water services.
Manila Water Consortium is composed of Ayala-led Manila Water and Vicsal Development Corporation and Stateland, Inc.
The consortium was the original project proponent and had to match the bid of 2 more groups that also sought to participate via Swiss Challenge system.
Inquirer had reported that the project cost was pegged at P1.5 billion.
This is Manila Water's 6th privatization or joint venture deal.
Below is the Ayala-led utility company's portfolio of water deals.
- Metro Manila East Zone
- Boracay via Boracay Island Water Company in the famous tourism island of Boracay
- Laguna via Laguna Water Company, which services Biñan, Cabuyao, and Sta. Rosa
- Clark via Clark Water Corporation-the company that supplies water at the Clark Freeport Economic Zone in Pampanga
- Ho Chi Minh in Vietnam via a leakage reduction project in Ho Chi Minh City
Manila Water has also been looking in areas outside the Philippines for its expansion plans. Its international portfolio includes the following:
- Vietnam via a 49% stake in Thu Duc Water BOO Corp., the largest private bulk water supplier in south Vietnam
- Australia via a minority stake in a consortium, which includes Mitsubishi Corp., Innovations Network Corp. of Japan and JGC Corp., that bought the wholly-owned Australian subsidiary of United Utilities PLC of the UK
- India via Jindal Manila Water Development Co, a joint venture with Jindal Water Infrastructure Ltd., that explore opportunities in the water sector in Rajasthan, Gujarat and Maharashtra states