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Friday, March 29, 2024

Manila Water details expansion

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By Melissa Cheok

Manila Water Co. Inc. plans to provide water to industrial parks and offer sanitation services in Southeast Asian countries as it expands to meet a target of doubling earnings in five years.

Manila Water has the expertise for industrial needs as it operates two of the largest industrial parks in the Philippines, Perry Rivera, chief operating officer for the company’s new business operations, said in an interview in Singapore. “We want to replicate in other Asean countries,” he said, referring to the Association of Southeast Asian Nations.

Entering markets outside the Philippines would help company president Gerardo Ablaza meet its goal to double earnings by 2020 from 2015, when net income rose 2 percent to P5.96 billion ($126 million). The company, one of two main water suppliers in the greater Manila region, has branched out to other parts of the Philippines through six subsidiaries, which are all profitable, Rivera said July 13.

Manila Water was unchanged at P27.50 at the close of trding in Manila to keep its gain this year to 13 percent. The Philippine Stock Exchange PSEi Index has advanced 15 percent in the period.

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Outside the Philippines, Manila Water distributes water in the Cu Chi district of Ho Chi Minh city. The company is also conducting pilot projects in Yangon, Myanmar, and Bandung in Indonesia, Rivera said.

“While initially the capital cities of Asean countries are attractive, they are also the most difficult to manage,” the executive said. “It is best to look at second-tier markets, prove you can make a difference and from there, you can look at other opportunities.” 

Manila Water in January signed an agreement to provide water and used water services to all real estate developments of sister company Ayala Land Inc. as well as its subsidiaries and affiliates.

Manila Water said wholly-owned unit Manila Water Philippine Ventures signed the agreement with Ayala Land’s 24 other subsidiaries and affiliates, including Cebu Holdings Inc., Cebu Property Ventures and Development Corp. and Ayalaland Hotel and Resorts Corp.

The Ayala Land Group earlier provided in-house water and used water services and facilities in it property development projects. Ayala Land and Manila Water are both majority-owned by conglomerate Ayala Corp. With Bloomberg

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