Metro Pacific Investments Corp. (MPIC) yesterday said that its wholly owned water subsidiary had signed a joint venture agreement with Dumaguete City Water District (DCWD) for a P1.62-billion project.
MetroPac Water Investments Corp. signed up for the rehabilitation, operation, maintenance and expansion of DCWD’s existing water distribution system and development of wastewater facilities.
The agreement is good for 25 years and involves an initial equity investment of P700 million on the part of MetroPac Water.
A joint venture corporation shall be organized and shall implement the project including the right to bill and collect tariff for the water supply and wastewater services provided to the DCWD customers.
The water district supplies 38 million liters per day (MLD) of potable water to more than 32,000 customers in Dumaguete City as well as portions of the adjacent towns of Valencia, Sibulan and Bacong.
Over the life of the joint venture, the estimated population of DCWD’s service areas is expected to expand by almost half to 242,000 in 2044 from about 166,000 this year.
MetroPac Water is MPIC’s water business platform outside its concession with the Metropolitan Waterworks and Sewerage System through Maynilad Water Services Inc.
MetroPac Water currently bills 269 MLD. MPIC’s expansion plans for its water investment portfolio include reaching a total of 393 MLD in the Philippines and 660 MLD in Vietnam.
MetroPac Water also has a 25-year joint venture with the Metro Iloilo Water District.
According to MPIC, MetroPac Water’s contribution to the total business is “currently immaterial,” but is expected to become major as planned projects are realized. —RONNEL W. DOMINGO