AYALA-LED Manila Water Co. Inc. said on Thursday that a consortium led by one of its subsidiaries had formalized a joint venture with the Obando Water District (OWD) for a project in Bulacan.
Manila Water informed the local bourse that Obando Water Co., Inc. (OWCHC), a consortium created with unit Manila Water Philippines Ventures, Inc. (MWPV), and OWD signed and executed a concession agreement with OWD for the “design, construction, rehabilitation, operation, maintenance, financing, expansion, and management of water and sanitation services” in Obando.
Manila Water said the concession agreement is for a period of 25 years from its commencement date.
In August, Manila Water said it sealed a joint venture deal with OWD for the Obando Water Concession project.
The East Zone concessionaire said the joint venture company (JVC) would have an outstanding capital stock of P98 million. Obando Water Concession and OWD would subscribe in cash and property to the authorized capital stock of the JVC.
A five-member board of directors would oversee the joint company, with OWCHC nominating four directors such as the chairman of the board and the OWD naming one director.
OWCHC would own 90 percent of the undertaking’s outstanding capital and OWD will own 10 percent.
In January, Manila Water announced it had bagged the Obando project, which was approved by the board of directors of OWCHC the following month.
Manila Water is engaged in providing water, sewerage and sanitation, distribution services, pipeworks, and management services to residential, commercial and industrial customers. It holds the exclusive right to provide water and used water services to the east zone of the franchise area of the Metropolitan Waterworks and Sewerage System (MWSS).
On Thursday, shares of Manila Water rose 1.04 percent to close at P31.50.