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The Manila Water Inc. has entered into a joint venture agreement with the provincial government of Laguna to form the Laguna Water Co. Inc. which will develop and operate the water supply system in 3 areas of Laguna province.

The concession agreement (CA) covering the joint venture is patterned after the Manila Water’s own CA with the Metropolitan Waterworks and Sewerage System. “Under the CA, Laguna Water will have a 25-year exclusive right, renewable for another 25 years, to service the water requirements of the entire Cabuyao, Sta. Rosa City, and Biñan as agent and contractor of the provincial government of Laguna,” the agency said.

The provincial government of Laguna will be the asset owner and the franchisee, while the National Water Resource Board will set the tariff rates, Manila Water added.

The newly-formed unit will be investing P2.5 billion in an infrastructure program which will include pipeline replacements and water treatment facilities to improve water services over the next 10 years. Laguna Water will have P500 million authorized capital stock, 70% of which will be provided by Manila Water, with the remaining 30$ serving as the provincial government’s equity contribution.

Laguna Water President Virgilio Rivera said, “We are happy and excited to have been given the opportunity to branch out to Laguna. Laguna has experienced sustained growth as the gateway to South Luzon with rapid development of commercial centers, modern techno parks, and expanding infrastructure development. We are confident Laguna Water will provide these areas with huge improvements similar to what Manila Water has been able to do in the East Zone of Metro Manila and Rizal province.”

The Laguna Water was formed when Manila Water completed the acquisition of AAA Water Corp. (AWC) in July. Laguna Water then took over of the Laguna AAA Water Corp. (LAWC), which was a joint venture between AWC and the Laguna provincial government.