A unit of Ayala-led Manila Water Co. Inc. has fully taken over for P625 million the utility that supplies water for the entire Laguna Technopark.
A disclosure to the Philippine Stock Exchange on Thursday showed that Laguna AAAWater Corp. (LAWC), a subsidiary of Manila Water, signed an asset purchase agreement with Laguna Technopark Inc. (LTI) for the acquisition of the water reticulation system of Laguna Technopark.
The transaction, according to Manila Water, is for the purchase and acquisition of certain assets in order to exclusively operate the water and sewerage system in the Laguna Technopark, and to provide water and sewerage services to people within and outside the industrial park, including areas to be covered by the expansion of industrial park in the future.
Through the transaction, the Manila Water group of companies will become the exclusive water service provider of the biggest and largest international manufacturers in the Asian region, the disclosure added.
Specifically, the company will address the water needs of more than 220 progressive local and global industries in the following enterprises: semiconductors/electronics, automotive, home appliances and pharmaceuticals.
The total contract is valued at P625 million, which will be funded by LAWC through loans and internally generated funds.
LAWC officially took over as the exclusive water service provider of Laguna Technopark on January 1, 2014.
Merely two weeks before 2013 ended, another unit of Manila Water secured P800-million worth of financing from the Development Bank of the Philippines (DBP) for its Cebu water project that was recently awarded to it.
The company’s prior disclosure to the local bourse showed that Cebu Manila Water Development Inc. (CMWD), a subsidiary of Manila Water, signed a term loan facility amounting to P800 million, with DBP through the Philippine Water Revolving Fund (PWRF).
PWRF is the only water revolving fund outside the United States and Europe, which leverages overseas development assistance with local private funds using a co-financing arrangement between the Philippine government and private banks, according to a website.