Manila Water Consortium bags Cebu bulk water supply deal

MANILA, Philippines - A subsidiary of Ayala-led Manila Water Company Inc. has was been awarded the bulk water supply contract for the Metropolitan Cebu Water District (MCWD).

Cebu Manila Water Development, Inc., the joint venture company formed by the Manila Water Consortium, Inc.and the provincial government of Cebu,has received the notice of award for the 20-year water purchase agreement.

Cebu Water will supply the water district with 18 million liters of water per day in the first year of its operations and 35

million liters of water per day in the second year of its supply contract until the remaining years of its bulk supply purchase agreement.

The initial delivery of water to the district is expected to commence six months from the signing of the water purchase agreement.

The Cebu Bulk Water Supply Project is expected to significantly improve the water supply and quality in Cebu. There have been concerns about the deteriorating groundwater condition in province.

Manila Water Consortium is, in turn, a partnership between Manila Water Co., Pangilinan-led Metro Pacific Water Investments Corp.and the Gaisano Group.

Metro Pacific Water holds a 39-percent stake in the consortium while Manila Water holds a majority 51-percent stake.

The Gaisano Group, meanwhile, holds a 10-percent ownership of the consortium.