PCC deepens review of Villar firm, Dasmariñas water utility partnership

MANILA, Philippines — The Philippine Competition Commission (PCC) has deepened its review of the proposed joint venture between Dasmariñas Local Water District (Dasma Water) and the Villar Group’s PrimeWater Infrastructure Corp. to look in greater detail how this would affect competition.

In a statement, the PCC said it has launched the Phase 2 review through the Mergers and Acquisitions Office (MAO) for a more detailed probe on the proposed transaction which involves the creation of a contractual (or unincorporated) joint venture between Dasma Water and PrimeWater to serve Dasmariñas City in Cavite.

In the review, the PCC-MAO will look at how the transaction will affect the competition in the provision of water supply and septage management services and its effect on customers.

The PCC will also investigate if the transaction will help enhance PrimeWater’s ability and incentive to engage in foreclosure of downstream market competitors of the entities affiliated with the firm.

The PCC has 60 days beginning Feb. 7 to complete the second phase review.

While a second phase review is being conducted, this does not mean the PCC has determined there will be substantial lessening of competition due to the transaction. Instead, it means a more detailed analysis of the transaction is needed.

Dasma Water provides potable water supply to 108,713 metered customers in all 75 barangays in Dasmariñas City.

As of 2017, it covered 3,000 hectares or 67.78 percent of the total area of the city.

Meanwhile, PrimeWater, which is a subsidiary of Prime Asset Ventures Inc., is engaged in construction, operation and management of waterworks system.

PrimeWater enters into service concession agreements and joint ventures with local water districts for the financing, construction, development, rehabilitation, improvement, expansion, operation, and maintenance of water supply systems and septage facilities.

When the transaction is completed, PrimeWater will assume control of operations and management of Dasma Water’s services.

As PCC is undertaking the second phase review, it is calling on water suppliers, septage management providers, representatives from other water districts, sanitary engineers, residents of Dasmariñas, and other interested individuals to comments on the planned transaction.

The PCC conducts a review of mergers and acquisition deals to ensure such would not put to risk consumer interest.