Marubeni acquires stake in Philippines' water and sewerage utility
Marubeni Corp will acquire a 20% equity stake in Maynilad Water Services Inc, the water and sewerage utility in the Philippines. Maynilad provides water and sewerage treatment, operation and maintenance of water and sewage network, and metering and water charge collection in 17 municipalities of western part of Metro Manila under the concession agreement with the Philippines government.
The population in the service area is about 9.5 million, which corresponds to approximately 10% of the Philippines’ total population. It is the largest in the world in terms of the size of population within the service area as a private water utility based on a single concession agreement.
Marubeni has undertaken a pre-feasibility study commissioned by Ministry of Economy, Trade and Industry of Japan in 2011, and a preparatory survey for PPP infrastructure commissioned by Japan International Cooperation Agency (JICA) in 2012 to investigate operational issues and to help the development of the future business plans of Maynilad.
Improvement of non-revenue water ratio, or the proportion of water volume not counted in the sales revenue out of total produced water volume, such as leakage, theft, free of charge to the public purposes, which is currently at 40%, and sewerage service coverage, which is 10% at present, are major management issues to be addressed in the future.
Marubeni will proactively play its role to resolve those issues, aiming to procure Private Sector Investment Finance of JICA through the above-mentioned preparatory survey for further development of water and sewage services in Metro Manila.