Manila Water invests More in Vietnam

Manila Water Company (MWC) is alloting an additional P615 million for two subsidiaries to fund its investments both in the Philippines and in Vietnam

In a disclosure to the Philippine Stock Exchange, MWC said its executive committee has approved the additional investment of P418 million in its wholly-owned domestic subsidiary Manila Water Philippine Ventures Inc. (MWPV).

MWC said the additional investment will be used to fund the operations of MWPV which is the vehicle intended by the company to hold its investments in its domestic operating subsidiaries.

Philippine Ventures, formerly AAA Water Corporation, holds shares of various units of Manila Water including Clark Water Corporation, Boracay Island Water Company, Inc., Manila Water Consortium Inc. and Manila Water Total Solutions Corporation.

The firm’s executive committee also approved the additional investment of US$4.26 million (P197 million) or its equivalent in Philippine pesos at the time of conversion, in its wholly-owned Singapore subsidiary Manila Water Asia Pacific Pte. Ltd.

“The additional equity infusion in MWAP will be used to fund further investments in Vietnam,” MWC said.

Manila Water is operating in Vietnam through affiliates Thu Duc Water B.O.O Corp. and Kenh Dong Water Supply JSC and Ho Chi Minh City Stock Exchange-listed holding firm Saigon Water Infrastructure Corporation.

In 2008, it entered into a five-year performance-based leakage reduction contract with the Saigon Water Corporation in Vietnam. Manila Water also recently signed an agreement with Vietnam’s REE Corporation and Mitsubishi Corporation to develop water, wastewater and other environmentally-related projects in Vietnam.

A similar agreement was entered early this year with Jindal Water Infrastructure Ltd. of the OP Jindal Group, one of India s biggest business houses, to develop projects in the key Indian states of Rajasthan, Gujarat and Maharshtra.

On the other hand, MWPV is exploring potential projects in both water and environmental services, leveraging on the competencies Manila Water has gained over the past 18 years.

Recognizing the increasing demand for sustainable water and used water solutions for the domestic market, Manila Water aims to capitalize on these opportunities with the same focus and intensity that it has exhibited in its base business.

Recently, Manila Water signed a 10-year performance-based NRW reduction project with the Zamboanga City Water District (ZCWD) which

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