MANILA WATER EYES LOCAL, INTERNATIONAL EXPANSION

Manila Water Co Inc., the water business of the Razon Group, is looking at sealing a few deals to scale up its local and international footprint.

“We’d like to close a few deals before the end of the year,” Manila Water chief administrative officer Roberto Locsin said, adding the water concessionaire is hoping to sign a contract in the Philippines “before the end of the year.”

Locsin did not divulge details about the local agreement that Manila Water is targeting to sign but only said the company would be offering services within the water value chain, from the water supply system to treatment and distribution and to wastewater or used water treatment and sanitation.

Currently, Enrique Razon Jr.-led firm is providing water and wastewater services to the east zone of Metro Manila, including parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, Quezon City, portions of Manila and some towns in Rizal.

Manila Water and the Metropolitan Waterworks and Sewerage System signed last May a sixth amendment to the revised concession agreement which sets the effectivity date of the accord to no later than June 30.

For the international expansion, Locsin said Manila Water has set its sights on Latin America and Africa, the global markets where the port operations business of Razon are present. The tycoon holds a controlling interest in the listed firm.

Latin America, Africa

“We’re looking at Latin America and Africa. By definition, if you look at ICTSI (International Container Terminals Services, Inc.) where they are in Latin America and Africa, you will know where we’re looking,” he told reporters. “Latin America is a big target if you take a look at the big economies like Mexico, Colombia.”

“If you look at Africa, we’re all over Africa and having similar economic characteristics of the Philippines like South Africa, it’s easy to map out the strategy if you’re out there,” he added.

Manila Water is currently in discussions with “a number of well-known large water companies from abroad” but the official did not provide additional information on the foreign venture.

“We’re doing a lot of work now. The deal pipeline is healthy. It’s just that these things take time,” said Locsin, adding the firm’s preference is management control.

Manila Water would also prefer self-funding its venture over securing financing from the bank as well as making sure that the funding is in line with their revenue expectations.