RAZON-LED Manila Water Co., Inc. has secured a loan facility of up to 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 facility will fund the purchase of a 92.97% equity stake in WawaJVCo, Inc., the project’s operator.
Last year, 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 facility.
The term loan allows the company to refinance part of the purchase price and manage cash outflows over 15 years.
WawaJVCo, originally a joint venture 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 augment Metro Manila’s water supply, which remains heavily reliant on the Angat Dam for roughly 90% of its requirements.
Prime Infra acquired a controlling stake in Manila Water in 2021 as part of broader efforts to modernize water infrastructure in the Philippines.
Following the Wawa acquisition, Manila Water now wholly owns WawaJVCo and will operate both the Tayabasan Weir and the Upper Wawa Dam, which together have a combined design capacity of 790 million liters per day (MLD).
The Tayabasan Weir, with a capacity of 80 MLD, has been operational since 2022. The Upper Wawa Dam, expected to be fully commissioned by the end of 2025, has a design capacity 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 bulk water supply facilities.
The company serves the east zone of Metro Manila, covering Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province.
At the local stock exchange on Wednesday, Manila Water shares declined 0.25% to close at P39.90 apiece. — Sheldeen Joy Talavera