Manila Water Company holds the exclusive right to provide water and used water services to the eastern side of Metro Manila (“Manila Concession” or “East Zone”) under a Concession Agreement (“CA”) entered into between the Company and Metropolitan Waterworks and Sewerage System (“MWSS”) in August 1997. The original term of the concession was for a period of 25 years to expire in 2022. The Company’s concession was extended by another 15 years by MWSS and the Philippine Government in 2009, thereby extending the term from May 2022 to May 2037.
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, semi-business, commercial and industrial customers. The East Zone encompasses 23 cities and municipalities spanning a 1,400-square kilometer area that includes Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as the following towns of Rizal: Angono, Antipolo, Baras, Binangonan, Cainta, Cardona, Jala-Jala, Morong, Pililia, Rodriguez, San Mateo, Tanay, Taytay, and Teresa.
Under the terms of the CA, the Company has the right to the use of land and operational fixed assets, and the exclusive right, as agent of MWSS, to extract and treat raw water, distribute and sell water, and collect, transport, treat and dispose used water, including reusable industrial effluent discharged by the sewerage system in the East Zone. The Company is entitled to recover over the concession period its operating, capital maintenance and investment expenditures, business taxes, and concession fee payments, and to earn a rate of return on these expenditures for the remaining term of the concession.
Aside from the Manila Concession, the Group has a holding company for all its domestic operating subsidiaries in Manila Water Philippine Ventures, Inc. (“MWPV”). Currently under MWPV are Laguna AAA Water Corporation (“Laguna Water”), Boracay Island Water Company (“Boracay Water”), Clark Water Corporation (“Clark Water”), Manila Water Consortium, Inc. (“MW Consortium”), Bulacan MWPV Development Corporation (“BMDC”), Obando Water Company, Inc. (“Obando Water”), Estate Water and Aqua Centro MWPV Corporation (“Aqua Centro MWPV”), where the latter two operate and manage the water systems of townships developed by property developers such as Ayala Land, Inc. and SM Group, respectively.
A subsidiary of MW Consortium is Cebu Manila Water Development, Inc. (“Cebu Water”) that provides bulk water in the province of Cebu. The Group has other projects in its portfolio including Tagum City bulk water supply project under Tagum Water Company, Inc. (“Tagum Water”), and Calasiao Water District water supply project under Calasiao Water Company, Inc. (“Calasiao Water”).
The holding company for its international ventures is Manila Water Asia Pacific Pte. Ltd. (“MWAP”). Under MWAP are two affiliated companies in Vietnam, namely Thu Duc Water B.O.O Corporation (“Thu Duc Water”) and Kenh Dong Water Supply Joint Stock Company (“Kenh Dong Water”), both supplying treated water to Saigon Water Corporation (“SAWACO”) under a take-or-pay arrangement. Also under MWAP are Saigon Water Infrastructure Corporation (“Saigon Water”), a holding company listed in the Ho Chi Minh City Stock Exchange, Cu Chi Water Supply Sewerage Company, Ltd. (“Cu Chi Water”) and another company tasked to pursue non-revenue water reduction projects in Vietnam called Asia Water Network Solutions (“Asia Water”).
Lastly, Manila Water Total Solutions Corporation (“MWTS”), a wholly-owned subsidiary, handles after-the-meter products and services.