Manila Water eyes Wawa deal completion by September

Manila Water Co. Inc. is moving to seal its nearly P38-billion acquisition of Prime Infrastructure Inc.’s (PII) entire stake in WawaJVCo Inc. by September, paving the way to integrate the Wawa Dam system into its East Zone network.

The company informed the Philippine Stock Exchange on Monday that it signed a share purchase agreement for the transaction.

The total consideration for PII’s shares and deposit for future stock subscription will be paid in installments, starting with P6.11 billion on 15 December.

The final installment is due on 30 January 2026, subject to adjustments to balance sheet items from signing to closing.

Once completed, the deal will integrate the Wawa Dam system into Manila Water’s East Zone network to boost efficiency, cut costs, and secure a long-term raw water source.

WawaJVCo operates the Tayabasan Weir in Antipolo and the Upper Wawa Dam in Rodriguez, Rizal, with a combined capacity of up to 712 million liters per day (MLD).

It has a 30-year Bulk Water Supply Agreement with the Metropolitan Waterworks and Sewerage System and Manila Water for 518 MLD through 2050.

The Upper Wawa Dam, set to begin commercial operations in December, is expected to serve over 700,000 households or 3.5 million Filipinos. The Tayabasan Weir has been operational since October 2022.

“Our acquisition of Wawa JVCo aligns squarely with our objective of ensuring a credible, consistent, and stable source of water for the communities we serve,” MWC President and CEO Jocot de Dios said last week.

“Equally important, it enables us to establish an integrated approach to water distribution across our network, resulting in better levels of efficiency and reliability in our operations.”

In the first half, Manila Water’s net income rose 15 percent to nearly P8 billion, driven by growth in its East Zone and Non-East Zone operations and efficiency gains. EBITDA also increased 15 percent to P14.6 billion, with the margin improving by four points to 73 percent.

Revenues from the East Zone climbed 11 percent to P16 billion, boosted by the third tranche of the approved Rate Rebasing tariff adjustment in January.