Metro Pacific upbeat on water business outside Metro Manila

SYDNEY—The Metro Pacific group sees potential for its water business outside greater Metro Manila to sell twice as much as the volume of Maynilad Water Services Inc. in the coming years, citing vast opportunity in the privatization of water infrastructure in urbanizing regions.

In a group-wide press briefing, Metro Pacific Water president Laurence Rogero sees 26 potential new projects in the company’s expansion pipeline in the next couple of months with a combined volume of 3,214 million liters per day (MLD) that could serve more than 19 million people.

“With Maynilad as an anchor for growth, the group is in very good position to take advantage of the opportunities in the water sector outside Metro Manila,” Rogero said.

Metro Pacific Water is an operating unit created separately from Maynilad to focus on opportunities outside the latter’s concession area. The framework for water infrastructure outside Metro Manila is a totally different ballgame for the group.

“It’s worth contextualizing that at 3,200 MLD that Lau (Rogero) will be selling means Metro Pacific Water could be selling twice as much water as Maynilad does by the time these projects come into fruition,” said David Nicol, chief finance officer of parent firm Metro Pacific Investments Corp.

“It’s a huge undertaking. It’s small today but the potential is vast,” Nicol said.

Of the 26 new projects eyed by Metro Pacific Water, Rogero said eight could be new concessions, one new wastewater project, 11 bulk water, two are international projects.

A project with a high or very high probability means the group has been declared the original proponent or has finalized discussions with the water district but has yet to obtain original proponent status.

Medium probability is defined as a situation when the group has received an official letter for continuing negotiations but negotiations have not been concluded yet.

Meanwhile, there are 14 projects with a potential volume of 615 MLD that have low probability, defined as a situation when the group has received indications that the water district was interested but it did not have an official recommendation yet. It can also be that it is receptive to privatization but not yet ready to negotiate.