Philippines’ biggest listed water utility Manila Water Co (MWC) Inc and Japan’s Mitsubishi Corp will develop a project to cut water leaks in Myanmar’s commercial hub Yangon.
The companies signed a memorandum of understanding with the Yangon City Development Committee (YCDC) for the proposed non-revenue water reduction project, MWC said in a stock exchange disclosure last week.
Non-revenue water is the volume from which a utility does not earn because the water is lost due to pipe leakage, illegal connections or inaccurate metering.
“The proposed project is in line with the intention of Manila Water to pursue projects outside the East Zone and other selected markets in the Asian region,” the company said.
Manila Water, which is a subsidiary of the Philippines’ oldest and largest conglomerate Ayala Corp, said in the filing that it will provide more information on the MOU “once definitive agreements on the proposed project have been executed and/or completed.”
Myanmar is attracting significant interest from foreign firms as it opened up its economy three years ago. Last year saw a number of major Filipino firms indicating their interest in Myanmar, including DMCI Holdings Inc, Universal Robina Corp (URC) and First Pacific Company Ltd. URC said last year in July that Myanmar government had approved its $30-million investment plan to set up a unit, and it was looking to start operations “in the next 18 months.”
Manila Water provides water and wastewater services primarily to the east zone concession area covering the cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina; parts of Manila and Quezon City, as well as some areas in Rizal province in the country.
In February, Manila Water and a partner qualified to bid for a bulk-water supply project in Indonesia and announced its plans to expand operations in Vietnam. The utility last month reported that its 2013 net income rose 5 percent to $129 million as customers bought more water.