DMCI sells 10% of Subic Water for 210M

DMCI Project Developers, Inc. (DMCI-PDI), a wholly-owned subsidiary of DMCI Holdings, Inc. focused primarily on residential development, has sold a 10 percent stake in Subic Water and Sewerage Company, Inc. for 210.58 million.

In a disclosure to the Philippine Stock Exchange, DMCI said DMCI-PDI sold 915,580 shares in Subic Water to the City of Olongapo.

After the sale of the shares representing 10 percent of the outstanding capital stock of Subic Water, DMCI-PDI will still own a total of 30 percent of Subic Water. The Olongapo City local government unit will be a first-time shareholder at 10 percent.

Other shareholders of Subic Water are Sembcorp Industries Ltd., (Sembcorp) a Singaporean water utility specialist, with 30 percent; Subic Bay Metropolitan Authority (SBMA), the agency that administers Subic Bay Freeport, with 20 percent; and Maynilad Water Services, Inc. (Maynilad), the Philippines' largest water concessionaire in terms of customer base, with 10 percent.

DMCI said “the Olongapo City LGU wanted representation in Subic Water because their constituents accounted for a majority of the company's customers. As the single biggest shareholder of Subic Water, DMCI PDI was in the best position to make this happen.”

“We believe the new ownership structure will result in better collaboration among the stakeholders, ultimately benefiting the water consumers in Olongapo City and Subic Bay Freeport,” said DMCI.

Subic Water is Southeast Asia's pioneer company which introduced the first public-private partnership (PPP), build-operate-and transfer (BOT) model in the water and wastewater services industry.

The company was formed in light of the impending water crisis in Olongapo City during the '90s, and the growing commercial water requirements of the booming Subic Bay Freeport Zone.

The company was granted the exclusive right and privilege to operate, maintain, and improve the water and sewerage systems of Olongapo City and Subic Bay Freeport under a 30-year franchise term. Subic Water officially commenced operations in April 1, 1997.

In pursuit of delivering world-class services to customers, it became the first ISO-certified water utility in South East Asia. (JAL)