ASIA NEWS NETWORK
WE KNOW ASIA BETTER
Philippine firm bags project in Myanmar
Publication Date : 18-03-2014
The Ayala group, one of the Philippines' largest conglomerates, is following through its foray into the overseas water business as its utility unit signed a memorandum of understanding with a local government in Myanmar to help the latter reduce water losses.
Along with long-time Ayala partner Mitsubishi Corp., also a signatory to the MOU, Manila Water Co. Inc. was tapped to develop a proposed project on non-revenue water reduction for the Yangon City Development Committee (YCDC).
Non-revenue water refers to water lost due to leaking pipes, illegal connections or pilfereage and inaccurate metering.
The YCDC administers water, infrastructure and business licenses as well as city property management in Yangon City, Myanmar's capital when it was still officially named Burma.
Manila Water said it would elaborate on the deal once definitive agreements related to the planned project have been carried out or completed.
“The proposed project is in line with the intention of Manila Water to pursue projects outside the east zone (concession in the greater Manila area) and other selected markets in the Asian region,” the company said in a statement.
In October 2013, Manila Water announced the closing of a deal to acquire a 31.47-per cent interest in an infrastructure company based in Ho Chi Minh City in Vietnam.
Back then, the company said its Singapore-based subsidiary, Manila Water South Asia Holdings Pte. Ltd. (MWSAH), had completed the acquisition of 18.37 million shares in Sai Gon Water Infrastructure Corp.
Manila Water said MWSAH subscribed to Sai Gon Water shares at 16,900 Vietnamese dong (0.8099 dollar) each. Based on the exchange rate last October, a share cost 34.18 pesos (0.766 dollar) and places the deal at a total of about 627.9 million pesos (14 million dollars).
Sai Gon Water wants to become the first fully integrated company in the Vietnam water and wastewater infrastructure sector through the construction of water and wastewater treatment plants and the provision of engineering, operation and management services and other similar activities.
The Vietnam deal followed Manila Water’s failure, announced in July 2013, to take over Indonesian water service concessionaire PT PAM Lyonnaise Jaya (Palyja).
Last year, Manila Water disclosed that Palyja’s government contract partner—Perusahaan Daerah Air Minum Jakarta Raya—“did not give the approval to the transfer” of a 51-per cent stake in Palyja to the Philippine water company.