MPIC unit bags P2.8-B CDO bulk water project

MetroPac Water Investments Corp. (MWIC), the bulk water subsidiary of infrastructure and toll roads conglomerate Metro Pacific Investments Corp., has bagged a P2.8 billion bulk water project in Cagayan de Oro.

In a disclosure to the Philippine Stock Exchange (PSE), Metro Pacific Investments Corp. said MWIC received Thursday the notice of award for the CDO bulk water project.

The bulk water project has a term of 30 years and will be renewable for another 20 years.

It involves the acquisition and construction of a 100 million liters per day of water treatment plant and the construction of new water transmission lines and rehabilitation of the Camaman-an Reservoir, to supply the CDO Water District which currently has about 90,000 service connections.

MPIC said the estimated project cost is approximately P2.8 billion.

The project will be implemented through a joint venture company to be 95 percent owned by MWIC and five percent owned by Cagayan de Oro Water District.

The definitive agreements implementing the joint venture are expected to be signed upon completion of the requirements.

MPIC’s water business has been contributing significantly to the conglomerate’s income.

Last year, the water business which includes distribution, production and sewerage treatment, contributed P3.6 billion or 24 percent of total income.

MPIC’s water business comprises its investments in Maynilad.

The listed holding firm reported a 17 percent rise in consolidated core net income to P12.1 billion on strong growth across all its businesses, which include toll roads, power distribution and generation, hospitals, rail and ticketing and logistics.