Ayala-led Manila Water Co. Inc. (Manila Water) will bid for the Bulacan Bulk Water project under the government’s public-private partnership (PPP) program.
The Metropolitan Waterworks and Sewerage System (MWSS) earlier set a base project cost of P24.4 billion for the Bulacan water project.
In a disclosure to the Philippine Stock Exchange PSE, Manila Water said: “The (Manila Water) board approved the participation of the company in the bidding for the Bulacan Bulk Water supply project of the MWSS.”
The Bulacan Bulk Water Project involves the design, financing, construction, development, operation and maintenance of facilities for bulk supply of treated water to 22 Bulacan water districts. It will be executed with the MWSS under a 30-year build-operate-transfer contract.
Meanwhile, the MWSS said the project has attracted 15 interested bidders: Manila Water, First Philippine Holdings Corp., Marubeni Corp (Japan), Filinvest Development Corp., Abengoa (Spain), Megawide Construction Corp., San Miguel Holdings Corp., Maynilad Water Services Inc, Prime Water Infrastructure Corp, Korea Water Resources Corp, Aboitiz Equity Ventures Inc., Datem Water Inc, Sojitz Corp (Japan), New San Jose Builders Inc. and Acciona Agua (Spain).
Manila Water said in the same PSE disclosure that its board also approved “the opening of a $60 million standby letter of credit with Bank of Tokyo-Mitsubishi UFJ, Ltd.” to comply with the needed performance bonds indicated in the concession agreement.
Also, the board authorized the P35-million equity infusion to wholly owned unit Manila Water Philippine Ventures Inc. (MWPVI), which will be invested as working capital in MWPVI’s subsidiary Manila Water Total Solutions Corp.
Manila Water realized an 8-percent increase in its first half net profits from year-ago figures of P2.9-billion, while revenues also rose by 6 percent to P8.113 billion from P7.632 billion.
Manila Water is the water subsidiary of conglomerate Ayala Corp. (AC), which has interests in banking (Bank of the Philippine Islands), telecommunications (Globe Telecom Inc.), real estate (Ayala Land Inc.), and business process outsourcing and education (LiveIt Investments), among others. AC is 50.56-percent owned by Mermac Inc., 10.52 percent by Mitsubishi Corp. and 38.92 percent by the investing public.