Infrastructure conglomerate Metro Pacific Investments Corp. said a wholly-owned water utility company won a P1.62-billion water supply project in Dumaguete City.
MPIC said in a disclosure to the stock exchange MetroPac Water Investments Corp. officially received a notice of award from Dumaguete City Water District for the rehabilitation, operation, maintenance and expansion of DCWD’s existing water distribution system and development of wastewater facilities.
Under the agreement, MPW will form a joint venture company to implement the project, including the right to bill and collect tariff for the water supply and wastewater services in the service area of DCWD.
The project cost for the 25-year concession is estimated at P1.62 billion, with an initial equity investment of P700 million in 2018.
DCWD serves Dumaguete City and parts of Valencia, Sibulan and Bacong towns with an estimated population of 162,389 as of end-2017.
Meanwhile, MPIC said MPW completed the acquisition of 45 percent of the outstanding capital stock of BOO Phu Ninh Water Treatment Plant Joint Stock Companyin Vietnam for P620 million.
PNW holds a license to serve the clean water demand in Chu Lai Open Economic Zone and nearby urban, rural and industrial areas.
The zone is strategically located in the middle of Vietnam in Quang Nam province, which recorded a gross domestic product growth of 12 percent in the past five years. The zone spans over 32,000 hectares, and is primed to continue attracting investors by its accessibility to major highways and ports, tax and economic incentives and local government support.
MPW also acquired a 49-percent stake in Tuan Loc Water Resources Investment Joint Stock Company in April for P1.98 billion.
MPW is currently operating water projects that collectively provide 150 MLD of water in Cebu, Laguna and Iloilo. MPW was also awarded the P12.35-billion Iloilo water distribution project last year.