THE Aboitiz Group consolidated all its water assets under its infrastructure unit Aboitiz Infra Capital Inc. (AIC).
The group recently announced AIC’s acquisition of Lima Water Corp. in Batangas and the purchase of a minority stake in Pampanga-based Balibago Waterworks System Inc.
On August 1 AIC acquired Lima Water from affiliate Aboitiz Land Inc., Aboitiz Group’s property-development business, and took full-operational control of water concessionaire the same day.
Lima Water provides industrial and potable water with a daily capacity of 8,700 cubic meters and a full capacity of 40,000 cubic meters from its own deep-well sources and reservoirs and ensures the 24-hour availability and sufficiency of water supply.
In addition, AIC also acquired on August 3 for about P275 million, an 11.14-percent minority stake, in Balibago Waterworks previously held by San Fernando Electric Light and Power Co. This ownership will allow AIC to be a part of an established water-market participant in Pampanga.
The concessionaire provides running water to over 150,000 households in its franchise areas. After 54 years in public service, the National Water Resources Board currently considers Balibago Waterworks as the largest and most efficiently operated provincial privately owned waterworks system in the country.
Through AIC’s investment in the company, AIC will partner with an established market player in the water sector operating over 50 water distribution franchise areas throughout the country.
“These acquisitions will enable AIC to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers,” said Erramon I. Aboitiz, Aboitiz Equity Ventures Inc. president and CEO.
Aboitiz, who is also chairman of AIC, added: “These steps are key for AIC to achieve its goal of building franchises across the entire water value chain.”
The Aboitiz Group’s first infrastructure venture, Apo Agua Infrastructura Inc., is a bulk-water project that will provide Davao City with 300 million liters per day.
Apo Agua, a joint venture between AEV and J.V. Angeles Construction Corp., had previously signed an agreement with the Davao City Water District to build one of the country’s largest private bulk water-supply projects.
Upon completion, the facility will have a capacity of 300 million liters per day of potable water sourced from the Tamugan River to benefit Davao City’s 1 million residents.