INQUIRER FILE PHOTO
Razon-led Manila Water Co. Inc. has completed the sale of all its stake in two water units that serve Bulacan province to a subsidiary of tycoon Ramon Ang’s San Miguel Corp. (SMC) for P1.02 billion.
In a disclosure to the local bourse, Manila Water said the transaction was executed on Tuesday, five months after deciding to offload such interests.
This involved the Manila Water’s Filipinas Water Holdings Corp. sale to SMC Bulacan Water Services Corp. of its 90-percent stake in Bulakan Water Co. Inc. (BWCI) and 90-percent interest in Obando Water Co. Inc. (OWCI).
READ: Manila Water, Maynilad adjust rates starting October
According to Manila Water, the fresh funds secured from the transation would finance its other projects, including those outside the “East Zone” concession that covers the eastern portion of Metro Manila and Rizal.
Manila Water mainly serves customers in the cities of Makati, Pasig, Pateros, Marikina, Mandaluyong, San Juan, Taguig as well as some parts of Quezon City and Manila.
The concession from the Manila Waterworks and Sewerage System also covers several towns in Rizal province, including Taytay, Teresa, Angono, Antipolo, Baras, Binangonan, Cainta, San Mateo, and Rodriguez.
Manila Water also has operations in Thailand, Vietnam, Saudi Arabia, Indonesia and Myanmar.
For the first six months of 2024, Manila Water posted P6.9 billion in net income on the back of higher tariffs and continued strength in water usage.
SMC, meanwhile, is providing water services in Bulacan through its Luzon Clean Water Development Corp. (LCWDC).
Early last year, the conglomerate said LCWDC would make available potable and affordable water from the Angat reservoir to more than 350,000 households in Bulacan starting in early 2025 with the implementation of Stage 3A of the Bulacan Bulk Water Supply Project.
Back then, SMC’s Ang said that with the growing population in the province, we expect greater demand for water in the coming years. INQ