Mla Water ties up with Obando utility

Ayala-led Manila Water Co. Inc. has entered into a joint venture agreement (JVA) with the Obando Water District (OWD) to formally develop the supply system in Bulacan.

In a regulatory filing, the east zone concessionaire said it signed and executed the JVA for the water supply development in Obando.

“The Obando Water Consortium Holdings Corp. (OWCHC) has signed and executed a JVA with OWD. The JVA will govern the relationship of OWCHC and OWD as joint venture partners in the Obando Water Concession Project,” the company said.

Last January, Manila Water won the project to develop the water supply system in Obando.

Under the JVA, both parties will form a joint venture company where OWCHC will own 90 percent of the outstanding capital stock while the remaining 10 percent will be held by Obando Water.

The JVC will have an outstanding capital stock of P98 million divided into 98 million common shares with a par value of P1 per share, and the parties shall subscribe in cash and property to the authorized capital stock of the JVC.

In particular, OWCHC shall subscribe to 90 percent of the outstanding capital stock of the JVC or P88.2 million and OWD shall subscribe to 10 percent or P9.8 million of the outstanding capital stock of the JVC.

Under the agreement, both parties will cause the incorporation of a joint venture company which shall be granted a concession for the design, construction, rehabilitation, operation, maintenance, financing, expansion and management of water facilities and the provision of water and sanitation services in the municipality of Obando.

The project will promote Manila Water’s objective to bring its expertise in water and used water services outside of the Manila concession by establishing partnerships with private companies, local water districts and local government units in the top metros of the country and in selected cities in the Asian region.

OWCHC is a consortium of Manila Water and Manila Water Philippine Ventures Inc. with the latter owning 51 percent of the issued outstanding capital stock of OWCHC.

Manila Water caters to the east zone which encompasses parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as several towns in Rizal.

It has also assisted and reformed water systems nationwide through its operations in Laguna, Boracay, Clark, Cebu, Davao del Norte and Zamboanga under the Manila Water Philippine Ventures subsidiary.