MANILA WATER Co., Inc. has acquired full ownership of WawaJVCo, Inc., consolidating the Wawa Bulk Water Supply Project under its operations in a P37.8-billion transaction with parent firm Prime Infrastructure Capital, Inc. (Prime Infra).
In a regulatory filing on Monday, Manila Water said it acquired full ownership of WawaJVCo through common and non-voting preferred shares worth P37.8 billion.
Trident Water Company Holdings, Inc., a subsidiary of Prime Infra, holds control of Manila Water.
WawaJVCo, a joint venture between Prime Infra and San Lorenzo Ruiz Builders & Developers Group, was established to develop, operate, and maintain the Wawa Bulk Water Supply Project, which is intended to augment Metro Manila’s raw water supply.
The company’s portfolio includes the Tayabasan Weir in Antipolo, which has been operational since October 2022 with a capacity of 80 million liters per day (MLD), and the Upper Wawa Dam in Rodriguez, Rizal, with a capacity of up to 710 MLD.
In 2019, WawaJVCo signed a 30-year bulk water supply agreement with the Metropolitan Waterworks and Sewerage System and Manila Water for the supply of 518 MLD of water until 2050.
“The acquisition is financially accretive to [Manila Water] and is strategically aligned with its long-term operational and water security objectives,” the water concessionaire said.
“In anticipation of the full operation of the Upper Wawa Dam, it has been determined that [Manila Water] is best placed to directly manage, operate, and optimize the Upper Wawa Dam to ensure technical compatibility, system efficiency, and operational synergies,” it said.
WawaJVCo recently announced the completion of the Upper Wawa Dam, which is set to begin commercial operations in December and is expected to benefit over 700,000 households.
Manila Water said the acquisition will allow for “greater focus and flexibility in water resource allocation, while allowing for more efficient operations and overall cost management of the facility.”
The acquisition is expected to be finalized on Aug. 29.
“This transaction underscores Prime Infra’s strategic commitment to the water sector. By consolidating our assets under Manila Water as our core water infrastructure platform, we are enhancing system integration, operational efficiency, and service delivery,” Prime Infra President and Chief Executive Officer Guillaume Lucci was quoted as saying in a statement.
“This consolidation allows us to unlock greater value from our portfolio and strengthens our position as a leader across the entire water value chain.”
Manila Water serves the East Zone of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera