April 1, 2019 - Conglomerates rush to get into lucrative water supply business
Conglomerates rush to get into lucrative water supply business
MANILA, Philippines — Metro Manila may be facing a water shortage but outside the capital region, conglomerates are scrambling to get a share of the lucrative water supply business.Full article at https://www.philstar.com/business/2019/04/01/1906161/conglomerates-rush-get-lucrative-water-supply-business
Conglomerates are quietly growing their reach in different cities and provinces with plans to expand all the way to far-flung areas in the country.
Lucio Tan-owned MacroAsia Corp., for instance, is targeting to expand its reach in more cities to supply water.
Lucio “Bong” Tan Jr., the son and namesake of the taipan, said the company is growing its water business outside its flagship projects Nueva Vizcaya and Boracay.
“We’re doing a lot of water projects...We helped clean Boracay as what Kap (Kapitan Lucio Tan) wanted. We’re going to up and coming cities, both urban and rural,” Tan told The STAR in a recent interview.
He said MacroAsia would soon be in Mactan, Cebu and later on in different cities in Mindanao.
“There are a lot more cities that need clean water,” Tan said.
MacroAsia subsidiary MacroAsia Properties Development Corp. (MAPDC) created SNV Resources Development Corp. (SNVRDC) to operate a complete water works system in Solano, Nueva Vizcaya.
Aside from this, MacroAsia through MAPDC, also fully owns Naic Water Supply Corp. (NAWASCOR) in Cavite and has a 67 percent stake in Boracay Tubi System Inc. (BTSI).
Ayala Corp., the country’s oldest conglomerate, is also expanding its presence outside Metro Manila.
Its Manila Water Philippines Ventures Inc. (MWVI) recently inked a joint venture agreement with Tubig Pilipinas for the overall development, improvement, and maintenance of Iloilo City’s water supply system.
A city ordinance granted a 25-year franchise to the joint venture partnership with the intention to expand its services to the surrounding municipalities of Mandurriao, Arevalo, Molo, La Paz, Lapuz and Jaro.
This is also where the mega townships of Ayala Land and Megaworld are located, as well as the SM Supermall, which is touted to be the second biggest shopping mall in the Visayas.
“Tubig Pilipinas, together with Manila Water, is looking forward to service the people of Metro Iloilo by offering a safe and stable water supply system that can respond to their daily needs,” said Tubig Pilipinas president and CEO Ryan Yapkianwee.
Tubig Pilipinas Group Inc. is engaged in the business of supplying, distributing, operating, and managing water systems. The company is currently operating in major cities and towns in Pangasinan, Isabela, Cavite and Negros. It is a subsidiary of Pure Energy Holdings Corp.
Aside from this, Manila Water Philippines also supplies water in areas in Laguna, through LagunaAAA Water Corp. Boracay through Boracay Island Water Co., Clark through Water Corp. and other townships developed by Ayala Land.
Its Cebu Manila Water Development Inc. also provides bulk water in the province of Cebu.
Villar-owned Prime Water Ventures Inc., which is said to be the top water supplier outside Metro Manila, also has a planned joint venture with the Dasmariñas Local Water District for the water supply of all 75 barangays in Dasmariñas City.
Aside from this, the company has several other water supply projects outside Metro Manila established through joint venture agreements with local water districts.
Industry estimates show that the company already supplies more than 50 percent of the water needs outside Metro Manila.
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