MPIC buys 49% stake in Vietnam water firm

Infrastructure holding firm Metro Pacific Investments Corp. has expanded its Southeast Asian footprint with the P1.99-billion acquisition of 49 percent of Tuan Loc Water Resources Investment Joint Stock Co. (TLW), one of the largest water companies in Vietnam.

The buy-in deal, which is done through wholly owned subsidiary MetroPac Water Investments Corp. (MPW), allows the Metro Pacific group to expand into Vietnamese industrial water concessions.

This also marks the group’s second equity deal in Vietnam’s water space after a deal signed last November to acquire 45 percent of Phu Ninh Water Treatment Plant Joint Stock Co.

With 310 million liters per day (MLD) of installed capacity and a billed volume of around 87 MLD as of yearend 2017, TLW is one of Vietnam’s leading water companies.

TLW’s biggest project is the Song Lam Raw Water Treatment Plant, a 50-year build-own-operate project (2015-2064) with an installed capacity of 200 MLD expandable to 300 MLD.

Another major asset is Ho Cau Moi Water Treatment Plant, a 50-year build-own-operate project (2017-2066) with an installed capacity of 90 MLD expandable to 120 MLD. This plant supplies treated water to Dong Nai Water Co. and surrounding industrial parks.
Dong Nai Province is the manufacturing satellite of Ho Chi Minh City and will be the location of the Long Thanh International Airport, which will have a capacity to serve 100 million passengers. Dong Nai Province has a population of about 2.9 million.

The third major asset of TLW is Nhon Trach 6A Sewage Treatment Plant, a 50-year build-own-operate project (2017-2066) with an installed capacity of 20 MLD expandable to 40 MLD. This is the wastewater treatment facility for the 400-hectare Nhon Trach 6 Industrial Park in Dong Nai Province.

The total consideration of 865.6 billion Vietnamese dong (equivalent to P1.99 billion) took into account the value of the assets and the business of the company.