RAZON-LED Manila Water Co., Inc. has secured a loan facility of as much as P27 billion from BDO Unibank, Inc. to finance a portion of its acquisition of the Wawa Bulk Water Supply Project.
In a regulatory filing on Wednesday, the east zone concessionaire said the ability will fund the acquisition of a 92.97% equity stake in WawaJVCo, Inc., the project’s operator.
Last yr, Manila Water acquired the Wawa Bulk Water Supply Project from its parent company, Prime Infrastructure Capital, Inc. (Prime Infra), for P37.8 billion, gaining full control of the ability.
The term loan allows the corporate to refinance a part of the acquisition price and manage money outflows over 15 years.
WawaJVCo, originally a three way partnership between Prime Infra and San Lorenzo Ruiz Builders & Developers Group, was established to develop, operate, and maintain the Wawa Bulk Water Supply Project in Rizal province.
The project is a key raw water infrastructure program designed to enhance Metro Manila’s water supply, which stays heavily reliant on the Angat Dam for roughly 90% of its requirements.
Prime Infra acquired a controlling stake in Manila Water in 2021 as a part of broader efforts to modernize water infrastructure within the Philippines.
Following the Wawa acquisition, Manila Water now wholly owns WawaJVCo and can operate each the Tayabasan Weir and the Upper Wawa Dam, which together have a combined design capability of 790 million liters per day (MLD).
The Tayabasan Weir, with a capability of 80 MLD, has been operational since 2022. The Upper Wawa Dam, expected to be fully commissioned by the top of 2025, has a design capability of 710 MLD.
WawaJVCo has a 30-year bulk water supply agreement with Manila Water for the delivery of 518 MLD until 2050.
Manila Water said the acquisition will allow more efficient allocation of water resources, greater operational flexibility, and improved cost management across the majority water supply facilities.
The corporate serves the east zone of Metro Manila, covering Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several other towns in Rizal province.
On the local stock exchange on Wednesday, Manila Water shares declined 0.25% to shut at P39.90 apiece. — Sheldeen Joy Talavera