Manila Water now in joint venture with Leyte Metropolitan Water District
Manila Water Company, Inc. said it has already received the Notice of Award from the Leyte Metropolitan Water District (LMWD) for the implementation of the joint venture project for the design, construction, rehabilitation, maintenance, operation, financing, expansion, and management of the water supply and sanitation facilities and services of LMWD in the Province of Leyte.
In a filing with the Philippine Stock Exchange today, Manila Water disclosed that the conditions precedent specified in the Notice include the incorporation of a special purpose vehicle (SPV) which will implement the Project under a contractual joint venture with the LMWD.
“Upon completion of the conditions precedent specified in the Notice, the SPV and the LMWD shall enter into a joint venture agreement that will grant the SPV, as contractor to perform certain functions and as agent for the exercise of, the sole and exclusive right to manage, operate, maintain, repair, refurbish and improve, expand and as appropriate, decommission, the facilities of LMWD in its Service Area, including the right to bill and collect tariff for the provision of water supply and sanitation services in the Service Area of LMWD,” Manila Water said.
LMWD’s Service Area covers the City of Tacloban and seven other municipalities namely, Palo, Tanauan, Dagami, Tolosa, Pastrana, TabonTabon, Santa Fe, all in the Province of Leyte, with a total estimated population of 483,000.
As of 2016, LMWD serves over 31,000 water service connections with a billed volume of 27 Million liters per day.
Manila Water’s proposal includes the following: the development of interim and long term sources, expansion of distribution network, reduction of Non-Revenue Water and development of Sanitation Services.