Manila Water unit gets franchise for Pangasinan town
A UNIT of Manila Water Co., Inc. has received on Monday a “notice to proceed” for its proposal to provide water and septage services in the town of Sta. Barbara, Pangasinan province with the passage of a municipal ordinance on the matter, the parent said.
Ayala-led Manila Water told the stock exchange on Monday that its wholly owned subsidiary Manila Water Philippine Ventures, Inc. (MWPV) had been granted the local franchise through Municipal Ordinance No. 2018-10, Series of 2018.
The total capital expenditure for the project is estimated at P730 million.
“The project is expected to be operational by 2019,” Manila Water added.
The franchise covers the provision of water supply and the improvement, operation, maintenance management, financing, and expansion of water supply facilities, and the provision of septage management in Sta. Barbara.
“The Municipality of Sta. Barbara is immediately adjacent to the Municipality of Calasiao in the Province of Pangasinan, where Manila Water has a Concession Agreement with the Calasiao Water District,” Manila Water said.
The company said the franchise granted to MWPV is for a term of 25 years with an assumed billed volume of 16.6 million liters per day (MLD) by the end of the franchise period.
The Sta. Barbara franchise comes after Manila Water and its consortium with MWPV won in April the right to operate the Bulakan water district in Bulacan province. The project is expected to require a capital expenditure of P400 million over a 25-year contract period.
The project is estimated to deliver a billed volume of 16 million liters per day by year 25.
In April, Manila Water said its consortium with MWPV had been awarded a similar project in the municipality of Balagtas in Bulacan.
The Balagtas project requires a budget of P400 million over a 25-year contract. It is expected to deliver a billed volume of 22 million liters per day by the 25th year.
On Monday, shares in Manila Water slipped 2.55% to close at P26.70 each. —