Aboitiz consolidates water units under AIC
Conglomerate Aboitiz Equity Ventures Inc. said it consolidated its water utility ventures under infrastructure unit Aboitiz InfraCapital Inc.
AEV said in a disclosure to the stock exchange the consolidation involved the acquisition by AIC of Lima Water Corp. in Batangas from affiliate Aboitiz Land Inc.
AIC also acquired on Thursday an 11.14-percent stake in Balibago Waterworks System Inc. in Pampanga for P275 million. The shares were previously held by San Fernando Electric Light & Power Co.
“These acquisitions will enable AIC to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers,” AEV president and chief executive Erramon Aboitiz said.
“These steps are key for AIC to achieve its goal of building franchises across the entire water value chain,” he said.
LWC provides industrial and potable water with a daily capacity of 8,700 cubic meters and a full capacity of 40,000 cubic meters from its own deep well sources and reservoirs and ensures the 24-hour availability and sufficiency of water supply.
BWSI provides running water to over 150,000 households in its franchise area.
AEV said through its investment in BWSI, AIC would team up with an established market player in the water sector operating over 50 water distribution franchise areas throughout the country.
The Aboitiz Group’s first infrastructure venture was Apo Agua Infrastructura Inc., a bulk water project that will provide Davao City with 300 million liters per day.
Apo Agua, a joint venture between AEV and J.V. Angeles Construction Corp., previously signed an agreement with the Davao City Water District to build one of the country’s largest private bulk water supply projects.
Upon completion, the P12-billion facility will have a capacity of 300 million liters per day of potable water sourced from the Tamugan River to benefit Davao City’s one million residents.