Manila Water acquires 100% of Clark water utility company

MANILA, Philippines - Ayala-led Manila Water Co. Inc. has acquired 100 percent of Clark Water Corp. (CWC).

CWC which supplies water at the Clark Freeport Economic Zone in Pampanga, has a 25-year agreement with the Clark Development Corp. (CDC) and from Veolia Water Philippines Inc. (VWPI), Philippine Water Holdings Co. Inc. (PWHI), and Veolia Eau-Compagnie Generale Des Eaux.

The deal includes the acquisition of receivables of VWPI and PWHI from Bonifacio Water Corp.

CDC head Felipe Antonio Remollo announced recently that Manila Water will be the new provider of potable water to at least 1,800 locators and residents of the freeport zone.

According to Remollo, “Manila Water, in particular, has a track record in the water industry. Its entry in Clark is a welcome development as their presence in this region would be an additional magnet to other tycoons.”

With the recent acquisition, Manila Water is expected to bring in competitive and reasonable rates, improved service and availability of safe and potable water in the freeport zone.

“This will be a reason for both foreign and local businessmen to invest in Clark, because of our capacity to provide them with reliable power and water supply at reasonable utility rates,” Remollo added.  

Newly-installed CWC president Virgilio Rivera Jr., who is also Manila Water’s group director for regulation and corporate development, said that unlike in Metro Manila where bulk of its customers are residential in nature Clark customers are mainly industrial and commercial accounts which comprise 83 percent of the company’s total water sales.

Rivera said “this becomes a challenge for us, since we are aware that we need to make sure that CDC remains as an attractive investment site by making water available, 24 hours, seven days a week.”

Rivera continued: “We are 100 percent behind CDC in its vision to make Clark one of the strategic assets of the Philippine government. And for CDC to attract more investors, it needs reliable utilities, like water.”

Currently, CWC distributes water at the Clark Freeport Zone under a 25-year concession contract with CDC.

CWC serves 1,800 locators with a total billed volume of approximately 20 million liters per day.

Manila Water has been expanding outside of its core concession in Metro Manila’s East Zone.

Today, it operates Boracay Island Water Co. in the famous tourism Island of Boracay, as well as the Laguna Water Co., which services the municipalities of Biñan, Cabuyao, and the City of Sta. Rosa in Laguna Province.

Outside the Philippines, Manila Water has an existing leakage reduction project in Zone 1 of Ho Chi Minh City under the supervision of SAWACO.

Recently, the company just closed another deal with Ho Chi Minh City Infrastructure Investment Joint Stock Co. to acquire its 49-percent ownership in Thu Duc Water BOO Corp., the largest private bulk water supplier in the southern part of Vietnam.