MPIC unit bags P2.4-B deal for Iloilo bulk water supply

MANILA, Philippines - A wholly-owned unit of Metro Pacific Investments Corp. has bagged a P2.4 billion contract to supply bulk water to the Metro Iloilo Water District (MIWD) over a 25-year period.

MPIC said MetroPac Water Investments Corp. has formally received the Notice of Award for the project.

“A joint venture company will be formed by MWIC and MIWD to rehabilitate, expand, operate, and maintain MIWD’s existing water production facilities,” MPIC said in a disclosure to the Philippine Stock Exchange.

Under the plan, MWIC will hold an 80 percent interest in the joint venture company, which will be in charge of providing up to 170 million liters per day of bulk water supply to MIWD in the next 25 years.

The total cost of the project is P2.8 billion, based on 2014 prices.

Last year, MWIC entered into an agreement to operate and maintain a bulk water facility supplying Cagayan de Oro City.

MPIC disclosed at the time that MWIC’s project would cover the operations of a 100 million liters per day bulk water facility of Rio Verde Water Corp. (RVWC) in Baungon, Bukidnon.

RVWCI is the exclusive supplier of bulk surface water for the Cagayan de Oro Water District, which in turn, supplies the water requirements of more than 80 percent of the province.

Aside from bulk water supply, MPIC holds interests in water utilities through Maynilad Water Holding Co. as well as in toll roads operations through Metro Pacific Tollway Corp.

It has  investments in power distribution through Beacon Electric Asset Holdings Inc., which in turn holds the group’s in Manila Electric Co.