Manila Water bags Leyte project

MANILA WATER Company, Inc. on Thursday said it has bagged a project to build and manage the water supply and sanitation facilities in Leyte.

In a disclosure to the stock exchange, Manila Water said it received the notice of award from Leyte Metropolitan Water District ( LMWD) for the joint venture project for construction, rehabilitation, maintenance, operation and management of water supply and sanitation facilities in the latter’s service area.

“Manila Water’s proposal includes the following: development of interim and long term sources, expansion of distribution network, reduction of nonrevenue water and development of sanitation services,” the Ayalaled company said.

Manila Water said the notice included a condition for the creation of a special purpose vehicle (SPV) to implement the project under a joint venture with LMWD.

“Upon completion of the conditions precedent specified in the Notice, the SPV and the LMWD shall enter into a joint venture agreement that will grant the SPV, as contractor to perform certain functions and as agent for the exercise of, the sole and exclusive right to manage, operate, maintain, repair, refurbish and improve, expand and as appropriate, decommission, the facilities of LMWD in its Service Area,” it said.

LMWD’s service area includes Tacloban City and seven municipalities namely, Palo, Tanauan, Dagami, Tolosa, Pastrana, Tabontabon, and Santa Fe, with an estimated population of 483,000.

LMWD said in 2016 it had over 31,000 water service connections with a billed volume of 27 million liters a day.

In October, Manila Water said its joint venture with Obando Water District signed a 25-year concession agreement to develop the water supply system of Obando, Bulacan.

Manila Water previously said the Obando project is line with its aim of bringing its expertise in water and used water services outside of its Manila concession.

For the first nine months of 2017, Manila Water’s net income attributable to the parent was flat at P4.89 billion.

Operating revenues went up 3% to P13.78 billion during the January to September period, driven by the billed volume growth of the Manila concession and the expansion of its local subsidiaries. However, operating costs and expenses grew 11% to P4.9 billion due to the increase in both volume and price of water.

Manila Water provides water and wastewater services to Metro Manila’s east zone concession area covering the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig and Marikina. It is also in charge for the southeastern parts of Quezon City and Sta. Ana and San Andres in Manila.

Shares in Manila Water rose 0.53% or 15 centavos to close at P28.65 each.