MANILA — Ayala-led Manila Water Company Inc. won a contract to develop the water supply system in Leyte province.
In a disclosure with the Philippine Stocks Exchange, Manila Water said it received the notice of award from the Leyte Metropolitan Water District (LMWD) on Wednesday.
It said the contract covers the implementation of the joint venture project for the design, construction, rehabilitation, maintenance, operation, financing, expansion and management of the water supply and sanitation facilities and services of LMWD.
Manila Water said the contract requires the incorporation of a special purpose vehicle (SPV) which would implement the project under a contractual joint venture with the LMWD.
“Upon completion of the conditions precedent specified in the notice, the SPV and the LMWD shall enter into a joint venture agreement that will grant the SPV, as contractor to perform certain functions…,” it added.
SPV has sole and exclusive right to manage, operate, maintain, repair, refurbish and improve, expand and decommission the facilities of LMWD in its service area.
It has also the right to bill and collect tariff for the provision of water supply and sanitation services.
LMWD’s service area covers the City of Tacloban and seven other municipalities namely Palo, Tanauan, Dagami, Tolosa, Pastrana, TabonTabon, Santa Fe, all in the province of Leyte, with a total estimated population of 483,000.
As of 2016, LMWD served over 31,000 water service connections with a billed volume of 27 million liters per day. (PNA)