Metro Pacific Water prepares takeover of San Jose del Monte system after PrimeWater exit

By Sheldeen Joy Talavera, Reporter

METRO PACIFIC WATER is preparing to assume interim operations of San Jose del Monte’s water system in Bulacan as it works with the city government to assess infrastructure gaps and outline longer-term investment needs following the exit of PrimeWater Infrastructure Corp.

Metro Pacific Water President and Chief Executive Officer Andrew B. Pangilinan said discussions are under way with local officials on potential upgrades to support future supply and distribution requirements.

“We have discussions with the city government on possible water infrastructure projects that may support San Jose del Monte’s longer-term water supply and distribution needs,” he told BusinessWorld.

Mr. Pangilinan said the company has not yet determined the capital requirement, noting that spending depends on a technical assessment of system conditions. The review will be used to align investments with actual operational needs.

The local government of San Jose del Monte has appointed Metro Pacific Water as interim operator following a due diligence review of several water utilities, which assessed service record, technical capacity and financial strength.

Under an initial two-month consultancy arrangement, Metro Pacific Water will manage operations while conducting a full technical audit of pipelines, pumping stations, facilities, service coverage, water pressure and supply availability.

The review seeks to identify causes of service disruptions and support recommendations for infrastructure improvements.

“The purpose is to help stabilize operations while developing a clearer understanding of the causes of San Jose del Monte’s water service challenges,” Mr. Pangilinan said.

Metro Pacific Water serves more than 200,000 accounts across Iloilo City, Dumaguete City and other franchise areas. The addition of San Jose del Monte’s roughly 130,000 accounts is expected to significantly expand its footprint.

The company has allotted P3.81 billion in capital expenditures this year for pipeline expansion, replacement of aging pipes and installation of more than 86,000 service connections.

Mr. Pangilinan said system upgrades are aimed at improving reliability and securing water access amid tightening supply conditions.

Metro Pacific Water is a subsidiary of Metro Pacific Investments Corp., one of the Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls.