Metro Pacific acquires stake in Cebu water consortium
MANILA, Philippines – A unit of Pangilinan-led Metro Pacific Investments Corp. (MPIC) has signed a deal to acquire 39% of a consortium formed with the Ayala and Gaisano groups that recently bagged a bulk water supply project in Cebu.
In a disclosure to the Philippine Stock Exchange on Monday, January 7, MPIC said its unit Metro Pacific Water Investments Corp. (MPWIC) entered into an agreement to acquire 128.7 million common shares of Manila Water Consortium Inc. (MWCI), which has applied for an increase in authorized capital stock to P750 million from P250 million.
Once the securities regulator approves the capital hike, MPWIC will hold 39% of MWCI. Ayala-led Manila Water Co. Inc. will own 51% of the water consortium, while the Gaisano group’s Viscal Development Corp. will own the remaining 10%.
“The entry of Metro Pacific is expected to enhance the financial and technical capability of the consortium to undertake bulk water supply projects,” MPIC said.
The 3 groups earlier agreed to jointly develop and manage the Cebu Bulk Water Supply Project, the first large-scale public-private partnership that the province has rolled out.
The project is expected to provide 35 million liters of bulk water per day to address the deteriorating groundwater condition in the province. The water will be sourced from the Luyang River in the municipality of Carmen and will be channeled to the northern and central portions of Cebu where only less than 50% of residents are currently served.
MPIC owns Maynilad Water Services Inc., the water concessionaire for the west zone of Metro Manila.
On the other hand, Manila Water is the concessionaire for the east zone. It also distributes water to Cabuyao, Sta. Rosa and Biñan in Laguna; Clark in Pampanga; and Boracay island. – Rappler.com