AYALA-LED Manila Water Co. Inc. has secured a project to develop water supply and sanitation services in the province of Leyte.
In a disclosure to the Philippine Stock Exchange (PSE), Manila Water said the Leyte Metropolitan Water District (LMWD) awarded on Wednesday “the implementation of the joint venture project for the design, construction, rehabilitation, maintenance, operation, financing, expansion, and management of the water supply and sanitation facilities and services within the province.”
Manila Water is proposing the development of interim and long-term sources, expansion of the distribution network, reduction of non-revenue water, and the development of sanitation services.
The conditions outlined in the contract include the incorporation of a special purpose vehicle (SPV) to undertake the project under a contractual joint venture with LMWD.
Upon completing the requirements specified, the SPV and LMWD shall enter into a joint venture agreement which will grant the SPV, as contractor, to perform certain functions. These include the right to manage, operate, maintain, repair, refurbish and improve, expand and as appropriate, decommission, the facilities of LMWD witihin this service area.
It also includes the right to bill and collect tariff for the provision of water supply and sanitation services within the water district’s coverage area.
Manila Water said it will update the bourse on further developments regarding this initiative.
LMWD services more than 31,000 water service connections with a billed volume of 27 million liters per day. Its service area covers Tacloban City and seven other municipalities in the province of Leyte namely, Palo, Tanauan, Dagami, Tolosa, Pastrana, TabonTabon, Santa Fe, with a total estimated population of 483,000.
Manila Water provides water, sewerage and sanitation, and distribution services as well as pipeworks and management services to residential, commercial and industrial customers. It holds the exclusive rights to provide water and used water services to the east zone of the franchise area of the Metropolitan Waterworks and Sewerage System (MWSS).