Filipino conglomerate Aboitiz Group has consolidated all its water investments by making two transactions through its infrastructure unit, Aboitiz InfraCapital.
Aboitiz InfraCapital acquired LiMA Water Corporation, in Batangas, from the land business unit of Aboitiz Group and bought an 11.14 percent minority stake in Balibago Waterworks System, in Pampanga, from San Fernando Electric Light & Power for about 275 million pesos ($5.45 million; €4.61 million) last week.
The infrastructure unit has taken over operational control of the LiMA business, which provides industrial and potable water from its own deep well sources and reservoirs and has a daily capacity of 8,700 cubic meters and a full capacity of 40,000 cubic meters.
Balibago Waterworks, for its part, provides running water to more than 150,000 households in its services areas. Aboitiz noted that the government’s National Water Resources Board considers the business the largest and most efficiently operated privately owned provincial waterworks system in the country. It said it will partner with an established market player in the water sector operating more than 50 water distribution franchise areas throughout the nation.
“These acquisitions will enable the Aboitiz unit to establish its position as a provider of water and wastewater-related services to residential, commercial and industrial customers. These steps are key for Aboitiz to achieve its goal of building franchises across the entire water value chain,” said Erramon Aboitiz, chairman of Aboitiz InfraCapital.
In addition to Aboitiz InfraCapital, the Aboitiz Group also owns and runs other infrastructure businesses, which include Republic Cement and Building Materials and Apo Agua Infrastructura. Apo Agua is a bulk water project venture in partnership with J.V. Angeles Construction Corporation to build one of the country’s largest private bulk water supply projects in the Davao City Water District. Upon completion, the facility will deliver 300 million litres of water per day to the area’s 1 million residents.