The property arm of DMCI Holdings has reduced its interest in Subic Water and Sewerage Co (Subic Water) to allow the local government to take part in the enterprise, a pioneer in water and wastewater services investment under a public-private partnership (PPP) model.
Conglomerate DMCI Holdings told the Philippine Stock Exchange on Monday that its subsidiary DMCI Project Developers Inc. (DMCI Homes) had sold a 10-percent stake in Subic Water to the City of Olongapo for about P210.6 million.
DMCI Homes was left with a 30-percent interest in Subic Water’s outstanding capital stock after the sale, the disclosure said.
Asked about the rationale for this transaction, DMCI group said: “The Olongapo City LGU (local government unit) wanted representation in Subic Water because their constituents accounted for the majority of the company’s customers.”
As the single biggest shareholder of Subic Water, DMCI Homes was in the best position to give the LGU such representation.
“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,” DMCI said.
Subic Water was formed in 1997 to address what was then an impending water crisis in Olongapo City, brought about by the growing commercial water requirements of the booming Subic Bay Freeport Zone.
It has 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.
This company is a pioneer in PPP projects dealing with water in Southeast Asia.
Other stakeholders in Subic Water are Sembcorp Industries Ltd., (Sembcorp) a Singaporean water utility specialist; Subic Bay Metropolitan Authority (SBMA), which administers Subic Bay Freeport, and Maynilad Water Services Inc. (Maynilad), the country’s largest water concessionaire in terms of customer base.