MANILA, Philippines – DMCI Project Developers, the property arm of DMCI Holdings has trimmed its stake in Subic Water and Sewerage Co., a public-private partnership arrangement that operates the water service facilities in the Subic Bay Freeport and Olongapo City.
In a disclosure to the Philippine Stock Exchange (PSE), the Consunji-owned holding firm said DMCI Project Developers sold 915,580 of its shares in Subic Water to the city of Olongapo for a total consideration of P210.6 million.
The shares represent 10 percent of the outstanding capital stock of Subic Water.
“DMCI Project Developers still owns a total of 30 percent of Subic Water’s outstanding capital stock after the sale,” the company said in its disclosure.
Subic Water is a pioneer company formed in 1997, which introduced the first public-private partnership, build-operate-transfer model in the water and wastewater services industry.
It was formed in light of the impending water crisis in Olongapo City during the 90s, and the growing commercial water requirements of the booming Subic Bay Freeport Zone.
Other members of the consortium are Sembcorp Industries Ltd., (sembcorp) a Singaporean water utility specialist; Subic Bay Metropolitan Authority (SBMA), the agency that administers Subic Bay Freeport; and Maynilad Water Services Inc.
The company was granted the exclusive right and privilege to operate, maintain, and improve the water and sewerage systems of Olongapo City and Subic Bay Freeport under a 30-year franchise term.
DMCI Holdings reported a consolidated net income of P9.9 billion in the nine-months to September last year, up 31 percent from P7.5 billion the previous year.