A unit of Ayala-led Manila Water Co. Inc. has obtained a 15-year extension of its water concession agreement with the administrator of the Clark Economic Zone in Angeles, Pampanga.
In a disclosure, Manila Water said its wholly owned unit Clark Water Corp. signed on Friday an amendment extending its 25-year concession agreement with Clark Development Corp. (CDC), the government-owned corporation that administers the Clark Freeport.
Clark Water and CDC signed the original agreement on March 16, 2000, giving Clark Water the concession to supply water and wastewater services in Clark, Pampanga for 25 years up to October 1, 2025.
The amended agreement extends the period for another 15 years or up to October 1, 2040.
In return, Clark Water will invest an additional P5 billion over the 15-year duration to further improve and expand the services covered by the agreement.
The amended agreement also establishes a “rebasing mechanism that will enable Clark Water to recover its investment at a reasonable tariff to the customers.”
Other than Clark, Manila Water also provides water and wastewater services to the East Zone of Metro Manila, Boracay Island and Laguna. It also holds a 49 percent stake in Thu Duc Water and 47.35 percent in Kenh Dong Water in Vietnam.