Stock Commentary: Manila Water bags bulk water supply contract from Pangasinan

The water concessionaire, recently acquired by Enrique Razon in a dubious smash-and-grab transaction prompted by last year’s tubigserye, was given a Notice of Award from the Province of Pangasinan for the bulk water supply rights through a joint venture with the province.

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Manila Water [MWC 18.48 0.65%] and the Province of Pangasinan will negotiate and sign a 25-year concession agreement that reportedly contemplates up to P8 billion in capex over the 25-year life of the agreement. The parties expect to deliver up to 200 million litres per day by the last year of the contract (in 2046).


MB BOTTOM-LINE

It was a big week for MWC, with this notice of award plus signing the revised 25-year concession that was approved by the Senate for the Manila East Zone. The stock itself has been on quite a steady and consistent run, from its tubigserye low of P7.44/share on December 20, 2020 to its current P18.50/share level. That’s a 147% increase over the past 10 months.

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