Metro Pacific Investments Corp. said its water unit finalized the P12.35-billion joint venture water project with Metro Iloilo Water District.
Metro Pacific said in a disclosure to the stock exchange wholly-owned subsidiary MetroPac Water Investments Corp. signed a joint venture agreement with MWID for the rehabilitation, operation, maintenance and expansion of MIWD’s existing water distribution system and construction of wastewater facilities.
A joint venture corporation will be organized pursuant to the provisions in the joint venture agreement.
The joint venture corporation will then implement the project including the right to bill and collect tariff for the water supply and wastewater services provided to the customers in the service area of MIWD.
The project cost for the duration of the 25-year concession is estimated at P12.35 billion, with an initial equity investment of P600 million in 2019.
MIWD’s service area includes Iloilo City and seven municipalities including Pavia, Oton, Maasin, Cabatuan, Sta. Barbara, Leganes and San Miguel.
The population in the service area of MIWD was estimated at 844,618 as of end-2017. The company said that by the end of the 25-year joint venture, the population was expected to grow to 1.4 million.
The Iloilo water distribution project is the second water project of Metropac Water in Iloilo.
The water utility was also awarded the development of MWID’s P2.8 billion bulk water project in 2015.
Metropac Water currently bills 250 million liters per day. It plans to expand its investment portfolio with up to 393 MLD of installed capacity in the Philippines and 660 MLD in Vietnam, once these projects are completed.
Another 430 MLD of projects around the Philippines are under negotiation and awaiting final award.
Metro Pacific also has investments in Maynilad Water Services Inc., the water concessionaire for the west zone of Metro Manila.