Manila Water concession extended until 2047

Manila Water [MWC 39.40, down 0.3%; 42% avgVol] [link] disclosed that it has formally received a notice from the Department of Economy, Planning and Development of its extended concession agreement on July 1. MWC’s original concession agreement was scheduled to expire in mid-2037, but thanks to this extension, it will now run through to the start of 2047. The 10-year extension of the water concession was approved by President Ferdinand Marcos Jr. during the inaugural meeting of the Economy and Development Council (formerly NEDA Board). The Council also extended the contract of Maynilad Water at the same meeting.

MB bottom-line: This is just a formality, but I thought I’d mention it since I didn’t talk about the concession agreement extension when it was first announced. This extension is a pretty big deal, but of course, we’re living on the timeline where concession agreements only mean as much as the political will of the co-equal branches of government, which exists to protect them. The voodoo magic that transferred its ownership from the Zobel Family to the Razon Family probably inoculates the Razons against any major issues should President Marcos fail to address the ascendant Dutertes, but that’s not something MWC shareholders have to worry about for a long while.

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