Manila Water inks joint venture with New Delhi steel pipe maker

MANILA, Philippines - Ayala-led Manila Water Co. Inc. has signed a joint venture agreement with New Delhi-based steel pipe maker Jindal Water Infrastructure Ltd. (JWIL) to jointly develop water businesses in western India.

In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said the partnership will engage in water supply, wastewater and other environmental services in the states of Rajasthan, Gujarat and Maharashtra in India. Under the agreement, Manila Water and JWIL shall form a joint venture company to carry out planning and development of water projects under a pre-arranged budget.

The joint venture may infuse an initial investment of $1 million, sources said.

“Through this partnership, Manila Water and JWIL seek to leverage on their key strengths and core competencies and eventually provide synergies in establishing a regional presence in India,” Manila Water said.

JWIL is part of the OP Jindal Group, one of India’s largest business houses. It was formed as a service company to focus on designing sustainable and innovative solutions in water and wastewater management.

Manila Water, on the other hand, is the water utility arm of the Philippines’ oldest conglomerate Ayala Corp. It provides water services to more than one million households in the east zone of Metro Manila through more than 680,000 water service connections and 51,000 sewer service connections.

The utility firm distributes water to the following areas: Manila, Quezon City, Makati, Mandaluyong, San Juan, Marikina, Pasig, Pateros, Taguig and Rizal province. Overseas, Manila Water’s portfolio includes projects in Tiripur, India and Ho Chi Minh, Vietnam

With the extension of its concession agreement until 2037, Manila Water is allotting P10 billion in the next 12 months to fund its capital expenditures within its concession area.

Since the start of operations in 1997, Manila Water has already increased 24-hour water coverage to 99 percent from 26 percent and reduced water losses from 63 percent to less than 20 percent.

The company also continues to explore potential new water sources and undertakes reliability programs to ensure service continuity as well as mitigate impacts of calamities and other natural calamities.