Manila Water focuses on organic growth

MANILA, Philippines — Razon-led Manila Water Co. Inc. is focusing on organic growth but will not close its doors to strategic partnerships and acquisitions to expand into new areas here and abroad.

“When we talk about organic, what we’re looking at is the existing portfolio including the east zone. [But] it doesn’t detract us from acquiring more businesses, working with more water boards. I think the market is there,” Manila Water chief administrative officer Roberto Locsin said in an interview with reporters yesterday.

For its local expansion, Manila Water is looking at highly populated areas as well as secondary and tertiary cities.

“I can’t mention anything specific because a lot of this is still under discussion. The idea is to talk with water districts that are large enough where we can make the investment work,” Locsin said.

Manila Water is banking on its capabilities showcased in its east zone concession, such as bulk water management, water/wastewater service, technical service, sewerage network, and sanitation.

“The east zone has given us a lot of credence and capabilities on understanding how to manage bulk water, how to manage wastewater and then also provide technical services at the end. For those that we cannot reach with our switch network. We have sanitation. For those that need emergency water, we can deploy water tanks very easily and they’re all plotted all over our service area and, you know, providing all of the 24/7 That’s still within our service obligations,” Locsin said.

For its international expansion, Manila Water is still looking for  opportunities in areas where it is currently present in as well as areas where its affiliate International Container Terminals Services Inc. is located.

ICTSI is Razon’s ports business, which is the world’s largest, independent terminal operator,  is present across six continents.

“Right now, we have a more robust view on our international expansion. In the past, I alluded to our company ICTSI and where they were present. So that kind of gives you an indication of where our interest lies and that is all over the world,” Locsin said.

Currently, Manila Water serves the east zone of the Greater Manila Area, covering parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as several towns in Rizal.

It also operates outside the east zone through subsidiary Manila Water Philippine Ventures Inc. (MWPV), with presence in Laguna; Boracay; Cebu; Davao; Clark, Pampanga; Ilagan, Isabela; Tagum, Davao del Norte.

Abroad, Manila Water is present in Vietnam, Thailand, Indonesia and Saudi Arabia.