Aboitiz consolidates water investments

MANILA, Philippines - Cebu-based conglomerate Aboitiz Group has consolidated all its water investments under its infrastructure unit Aboitiz InfraCapital Inc. (AIC) to strengthen its presence in the water business.

The company recently completed two acquisitions in the water sector – Lima Water Corp.(LWC) and Balibago Waterworks System Inc. (BWSI).

“These acquisitions will enable AIC to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers. These steps are key for AIC to achieve its goal of building franchises across the entire water value chain,” Aboitiz Equity Ventures president and chief executive officer and AIC chairman Erramon Aboitiz said.

LWC  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.

AIC bought an 11.4-percent stake in BWSI for P275 million from San Fernando Electric Light & Power Co.         

BWSI provides running water to over 150,000 households in its franchise areas.

The minority stake would allow AIC to be a part of an established water market participant, which operates over 50 water distribution franchise areas throughout the country.

The company will provide bulk water in Davao City with 300 million liters per day.

The joint venture 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 one million residents.

 AIC is focused on the group’s infrastructure and infrastructure-related investments.

Aside from AIC, the Aboitiz Group’s other infrastructure units include Republic Cement and Building Materials Inc., which is a partnership with CRH plc.

The group is looking at infrastructure as another leg of business to add to its existing portfolio of power, banking, property and food.