Aboitiz consolidates water investments
Conglomerate Aboitiz Equity Ventures has consolidated all its water investments into Aboitiz InfraCapital Inc. (AIC), grooming this subsidiary for greater role in the local infrastructure sector.
The group recently announced AIC’s acquisition of LiMA Water Corp. (LWC) in Batangas. This unit also took a minority stake in Balibago Waterworks System Inc. (BWSI) in Pampanga.
On August 1, AIC acquired LWC from affiliate Aboitiz Land Inc., the land business unit of the Aboitiz Group and took full operational control of LWC on the same day.
In addition, AIC acquired on Aug. 3 for about P275 million an 11.14 percent stake in BWSI previously held by San Fernando Electric Light & Power Co. This minority stake will allow AIC to be a part of an established water market participant.
“These acquisitions will enable AIC to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers. These steps are key for AIC to achieve its goal of building franchises across the entire water value chain,” said AEV president and chief executive officer Erramon Aboitiz, who also chairs AIC.
LWC provides industrial and potable water with a daily capacity of 8,700 cubic meters and a full capacity of 40,000 cubic meters from its own deep well sources and reservoirs and ensures the 24-hour availability and sufficiency of water supply.
BWSI provides running water to over 150,000 households in its franchise areas. After 54 years in public service, the National Water Resources Board currently considers BWSI the largest and most efficiently operated provincial privately owned waterworks system in the country.
Through its investment in BWSI, AIC will partner with an established market player in the water sector operating over 50 water distribution franchise areas throughout the country, the group said.
AIC undertakes the infrastructure and infrastructure-related investments of the Aboitiz Group. Aside from AIC, the Aboitiz group’s other infrastructure units include Republic Cement and Building Materials Inc. (a partnership with CRH plc) and Apo Agua Infrastructura Inc., a joint venture between AEV and J.V. Angeles Construction Corp. that will build one of the country’s largest private bulk water supply projects.
Apo Agua Infrastructura will provide Davao City with 300 million liters of water per day sourced from the Tamugan River, seen to benefit Davao City’s one million residents.
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