Aboitiz InfraCapital consolidates water investments
August 3, 2017
The Aboitiz Group has consolidated all its water investments under its infrastructure unit Aboitiz InfraCapital, Inc., (AIC). The group recently announced AIC’s acquisition of LiMA Water Corporation (LWC) in Batangas, and it took a minority stake in Balibago Waterworks System, Inc. (BWSI) in Pampanga.
On August 1, AIC acquired LWC from affiliate Aboitiz Land, Inc., the land business unit of the Aboitiz Group and took full operational control of LWC on the same day.
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.
In addition, AIC acquired on August 3 for about P275 million an 11.14% minority stake in BWSI previously held by San Fernando Electric Light & Power Co. This minority stake will allow AIC to be a part of an established water market participant.
BWSI provides running water to over 150,000 households in its franchise areas. After 54 years in public service, the National Water Resources Board currently considers BWSI the largest and most efficiently operated provincial privately owned waterworks system in the country. Through AIC’s investment in BWSI, AIC will partner with an established market player in the water sector operating over 50 water distribution franchise areas throughout the country.
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.Erramon I. Aboitiz, AEV President and Chief Executive Officer and AIC Chairman
The Aboitiz Group’s first infrastructure venture, Apo Agua Infrastructura, Inc., is a bulk water project that will provide Davao City with 300 million liters per day. Apo Agua, a joint venture between AEV and J.V. Angeles Construction Corporation, had 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.