Ayala Corporation was incorporated in the Republic of the Philippines on January 23, 1968. The Company’s registered office address and principal place of business is 32nd to 35th Floors, Tower One and Exchange Plaza, Ayala Triangle, Ayala Avenue, Makati City. The Company is a publicly listed company which is 56.46% owned by Mermac, Inc., 11.66% owned by Mitsubishi Corporation and the rest by the public.
The Company is organized as a holding company holding equity interests in the Ayala Group (the “Group”), one of the most significant business groups in the Philippines. Ayala’s business activities are divided into: (a) real estate, (b) financial services, (c) telecommunications, (d) water infrastructure, (e) industrial technologies, (f) power generation (g) transport infrastructure, (h) international real estate (i) healthcare, and (j) education.
MWC and BIWC
Manila Water was incorporated on January 6, 1997 and started commercial operations on January 1, 2000. It became a publicly listed company via an initial public offering on March 18, 2005.
The Company provides water treatment, water distribution, sewerage and sanitation services to more than six million people in the East Zone, comprising a broad range of residential, commercial and industrial customers.
In addition, Manila Water has expanded its business outside the East Zone through its local and international subsidiaries and affiliates. Manila Water also continues to explore business opportunities in key cities both in and out of the country. In this connection, Manila Water has made strategic commitment to expansion in the VIMP markets, particularly in the key cities of Vietnam, Indonesia, Myanmar and the Philippines. The primary consideration is the similarity of the market with Metro Manila because the Company believes that having performed well in Metro Manila, there are "value-adds" that it could bring to those markets.
Under the VIMP strategy, the Company has aspired to expand its presence in select metropolitan areas in Vietnam, Indonesia, Myanmar and the Philippines (VIP). The Company is prepared to enter these markets with a flexible set of models along the water value chain – e.g. management contracts, O&M contracts, bulk water treatment, waste water treatment, full service concession – whatever is the most appropriate for a given market and its unique considerations.
On March 21, 2012, Cebu Manila Water Consortium, Inc. has signed an agreement with the Provincial Government of Cebu for the formation of a company with 51% and 49% equity participation, respectively. Under the said agreement, the parties agreed to develop and operate a bulk water supply system that will supply 35.00 million liters of water per day to target areas in the province of Cebu with the established company serving as a bulk water provider. The term of the agreement is 30 years starting March 2012, renewable for another 25 years. CMWDI was incorporated on May 28, 2012 for this purpose.
On December 13, 2013, CMWDI received a Notice of Award for the bulk supply of water to the Metropolitan Cebu Water District (MCWD). In relation to this, CMWDI and MCWD shall sign a 20-year Water Purchase Agreement (WPA) for the supply of 18 million liters per day of water for the first year and 35 million liters per day of water for years 2 up to 20.
LAWC and CWC
LAWC is a joint venture company between Manila Water Philippine Ventures, Inc. (formerly "AAA Water Corporation") and the Province of Laguna which was incorporated on December 13, 2001.
On April 9, 2002, LAWC entered into a concession agreement (as amended on March 31, 2004) with the Province of Laguna. Under the terms of the concession agreement, LAWC was granted (as contractor and as agent for the exercise of certain rights in Laguna) the sole and exclusive right and discretion during the concession period to manage, occupy, operate, repair, maintain, decommission and refurbish the identified facilities required to provide water services to the service areas for an operational period of 25 years.
CWC is the concessionaire and agent of Clark Development Corporation ("CDC") under the Concession Agreement dated March 16, 2000 granting CWC with the exclusive right and authority to provide water and wastewater services, as well as to possess, manage, operate, maintain, decommission and refurbish the water and wastewater facilities of CDC in the Clark Freeport Zone in Clarkfield, Pampanga. In November 2011, Manila Water acquired 100% ownership of CWC. By virtue of an amendment agreement executed on August 15, 2014, the 25-year concession agreement of CWC with CDC was extended by another fifteen years or until October 1, 2040.
CMWDI and MWTS
BIWC is a joint venture company between Manila Water and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), formerly the Philippine Tourism Authority (PTA) which was incorporated on December 7, 2009.
On December 17, 2009, BIWC entered into a concession agreement with TIEZA, then PTA, for a period of 25 years, with commencement date on January 1, 2010 and renewable at any time prior to expiration for another 25 years, without necessity of bidding. The concession agreement granted BIWC the sole right to manage, operate, maintain, repair, refurbish and improve, expand as appropriate, decommission and refurbish the water and wastewater facilities in the Island of Boracay in Malay, Aklan.
MWTS is a wholly-owned corporation of Manila Water engaged, among others, in the provision of consultancy and related services for the implementation of water and wastewater network-related projects, as well as the maintenance, repair and installation of after-the-meter (water service) connection and appurtenances.
In 2010, Manila Water established Manila Water Asia Pacific Pte. Ltd. ("MWAP") to be its regional headquarter in Singapore for the specific purpose of holding investments in various project companies in the region. Within the next two (2) years, Manila Water incorporated three (3) more Singapore entities, namely, Manila Water South Asia Holdings Pte. Ltd. ("MWSAH"), Thu Duc Water Holdings Pte. Ltd. ("TDWH") and Kenh Dong Water Holdings Pte. Ltd. ("KDWH"). MWAP is 100% owned by Manila Water while MWSAH, TDWH and KDWH are all wholly owned by MWAP.
On December 8, 2011, TDWH completed the acquisition of 49% interest in Thu Duc Water B.O.O. Corporation ("Thu Duc"). Thu Duc is a bulk water supply company with the second largest water treatment plant in Ho Chi Minh City, after the state-owned Thu Duc Water. It has a take-or pay bulk water supply contract with SAWACO with a minimum off-take of 300 million liters per day.
On July 20, 2012, KDWH acquired 47.35% interest in Kenh Dong Water Supply and Joint Stock Company ("WASS"). Similar to Thu Duc, WASS is bulk water supplier in Ho Chi Minh City. Its water treatment plant located in the Cu Chi District is has a capacity of 200 million liters of water per day. WASS has a bulk water supply contract with SAWACO for a guaranteed volume of 150 mld.
On October 8, 2013, MWSAH, acquired a 31.47% stake in Saigon Water Infrastructure Corporation ("SII"), a listed water company in Vietnam. SII is intended by Manila Water to be its primary vehicle in the furtherance of its business expansion initiatives in Ho Chi Minh City.