Manila Water Acquires Wawa Dam Developer and Operator for P37.8 Billion

​Manila Water Company, Inc. (MWC) acquires 100% ownership interests in WawaJVCo, Inc. (WawaJVCo) from Prime Infrastructure Inc. (PII) and minority shareholders.

WawaJVCo was established to develop, operate and maintain the Wawa Bulk Water Supply Project, a critical infrastructure initiative designed to augment Metro Manila’s raw water supply. Its asset portfolio includes the Tayabasan Weir, located in Antipolo, and the Upper Wawa Dam, in Rodriguez, both in Rizal with current contracted capacity of 518million liters per day (mld) and additional available capacity of up to 200 mld. The facility currently transports water from the Upper Wawa Dam to the downstream Calawis treatment facility of MWC, and will supply water to the Kaysakat and Pasig treatment facilities once completed.

On 06 August 2019, WawaJVCo signed a 30-year Bulk Water Supply Agreement with Metropolitan Waterworks and Sewerage System and MWC. Said agreement provides for a take-or-pay arrangement with MWC for 518 mld until 2050.

The Wawa Bulk Water Supply Project currently delivers a committed volume of 80 mld, from the Tayabasan Weir to theMWC Water treatment plant in Antipolo.

The acquisition is financially accretive to MWC and is strategically aligned with its long-term operational and water security objectives.

In anticipation of the full operation of the Upper Wawa Dam, it has been determined that MWC is best placed to directly manage, operate, and optimize the Upper Wawa Dam to ensure technical compatibility, system efficiency, and operational synergies. This will provide greater focus and flexibility in water resource allocation, while allowing for more efficient operations and overall cost management of the facility.

The terms and conditions of the transaction:

Number of shares to be acquired or disposed:
 
3,048,780 common shares
4,760,618 non-voting preferred shares
P1,534,717,807 of deposits for future stock subscription (“DFSS”) for non-voting preferred shares to be issued
 
Percentage to the total outstanding shares of the company subject of the transaction: 100%

Price per share:

Common:

P11,202.8321448 for shares of majority
P6,377.78 for shares of minority

Preferred: P1,000
 
The total purchase price for the shares is about P37.8 Billion.

WawaJVCo is a special purpose vehicle (SPV) that is majority-owned by PII, MWC’s indirect parent company.WawaJVCo was established to develop, operate, and maintain the Wawa Bulk Water Supply Project.

Prime Infrastructure Inc. (PII) owns 100% of Trident Water Company Holdings, Inc., which owns 56.91% of the outstanding common stock of the Issuer. PII and MWC have the same Chairman of the Board of Directors.