THE Ayala-led Manila Water Co. Inc. (MWCI) has formalized its alliance with Zamboanga City Water District (ZCWD) for a joint-venture (JV) initiative, with the end goal of “cutting its systems loss in the form of water leaks in the city province in Mindanao.”
A month after the project was awarded to the East Zone water concessionaire, the company said over the weekend that it recently signed and executed a JV agreement to govern their relationship as partners in nonrevenue water-reduction activities.
The JV Co. (JVC), which shall implement the 10-year project, will be incorporated by both parties.
As per the agreement, MWCI will own 70 percent of JVC’s outstanding capital stock, while ZCWD shall own the remaining 30 percent.
The latter serves over 55,000 water concessionaires of the city province. Its water supply is sourced from the Tumaga River.
The former is the lone provider of water and wastewater services to more than 6 million people in its concession area.
Manila Water reported an increase of 6 percent in consolidated net income to P4.55 billion in the first nine months ended September 30, 2014, from P4.29 billion in the same period in 2014.