Shareholdings Structure
Maynilad Water Holding Company, Inc. is the immediate parent company of Maynilad, with an equity interest of 92.85% as of April 25, 2023. It serves as the holding company of three (3) leading conglomerates, namely, Metro Pacific Investments Corporation (MPIC), DMCI Holdings, Inc. (DMCI) and Marubeni Corporation (Marubeni) (through its subsidiary, MCNK JV Corporation). The ownership structure of Maynilad is shown in the diagram below.
Subsidiaries, Associates, and Joint Ventures
The table below sets forth the Company’s subsidiaries, affiliates and other investments as of 31 December 2023:
| Company | Classification | Year of Incorporation | % Ownership |
|---|---|---|---|
| Philippine Hydro, Inc. | Subsidiary | 1999 | 100% |
| Amayi Water Solutions Inc. | Subsidiary | 2012 | 100% |
| Subic Water and Sewerage Company, Inc. | Affiliate | 1997 | 10% |
Maynilad and its subsidiaries serve customers in the Philippines, and do not source any revenue from foreign sales.
Philippine Hydro, Inc.
Philippine Hydro, Inc. (“PhilHydro”) became a wholly owned subsidiary of Maynilad on 3 August 2012. Upon acquisition, the new management implemented major financial and operational improvements to boost supply availability and expansion in its served areas.
PhilHydro is engaged in waterworks construction, engineering, and engineering consulting services. It is currently undertaking water supply projects outside Metro Manila in line with Presidential Decree No. 198, otherwise known as the “Provincial Water Utilities Act of 1973”, which mandates local government units to create and operate local water utilities and provide potable water to the public.
It owns and operates four WTP that supply treated bulk water to the Legazpi City Water District in Albay, Norzagaray Water District, Santa Maria Water District in Bulacan, and, starting March 2017, Bocaue Water District in Bulacan; and municipal waterworks of Bambang, Nueva Vizcaya. PhilHydro also owns and operates the treated water supply and distribution system of Rizal, Nueva Ecija. All PhilHydro WTPs are under Public-Private Partnership (“PPP”) Contracts with the government, either directly contracting the Local Government Unit or with Government-Owned and Controlled Corporations, such as Water Districts. PhilHydro has a total plant capacity of 61 MLD.
PhilHydro’s billed volumes increased 4.0% to 49.3 MLD versus 47.4 MLD at the end of 2022, driven primarily by growths from NORWD and INC both of which have been performing exceedingly well since loosening of restrictions and resumption of events. Bulacan’s overall performance would have been better had the deterioration of SMWD’s filtration media been resolved sooner. Also lagging is the billed volume performance of operations in Bambang, Nueva Vizcaya due to Bambang Waterworks’ intensified mitigation of NRW on its distribution lines and service disconnection of nonpaying customers. As of 31 December 2023, PhilHydro generated revenues of ₱259 million while contribution to Maynilad after amortization of goodwill from acquisition was ₱64 million to core EBITDA.
The following sets forth a summary of PhilHydro’s contracts and service areas:
| Client | Service Area | Type of Service | Contracted Years | Contracted Volume |
|---|---|---|---|---|
| Legazpi City Water District | Legazpi City, Albay | Bulk Water Supply | 2007 - 2032 | 20 - 50 MLD |
| Norzagaray Water District | Municipality of Norzagaray, Bulacan | Bulk Water Supply | 2009 - 2033 | 1 -10 MLD |
| Bambang, Nueva Viscaya Water District | Municipality of Bambang, Nueva Ecija | Bulk Water Supply | 2009 - 2033 | 1.5 MLD |
| Sta. Maria Water District | Municipality of Sta. Maria, Bulacan | Bulk Water Supply | 2010 - 2034 | 4 - 30 MLD |
| Residents of Rizal, Nueva Ecija | Municipality of Rizal, Nueva Ecija | Bulk Water Supply | 2010 - 2034 | 2.5 MLD |
| New Era University | Ciudad de Victoria, Bocaue, Bulacan | Bulk Water Supply | 2014 - 2033 | 2 - 10 MLD |
| Bocaue Water District | Municipality of Bocaue, Bulacan | Bulk Water Supply | 2017 - 2027 | 2 MLD |
Amayi Water Solutions Inc.
Amayi Water Solutions, Inc.., doing business under the trade name, “Maynilad BOAC,” (hereafter, “Maynilad BOAC”), a wholly owned subsidiary of Maynilad incorporated in the Philippines on 18 July 2012, is engaged in the distribution of water in Boac, Marinduque (outside West Service Area). Maynilad BOAC was incorporated for the purpose of operating, managing, maintaining and rehabilitating waterworks, wastewater and sanitation system and services outside the concession area.
On 19 February 2019, Maynilad BOAC entered into a 25-year Concession Agreement with the Municipality of Boac, Marinduque. The Concession Agreement covers financing, rehabilitation, development, expansion, improvement, operation, and maintenance of the water supply system in the 41 barangays of the Municipality of Boac.
Maynilad BOAC plans to implement capital expenditure projects focusing on the rehabilitation and expansion of the current water system in the said municipality. The existing pipelines, which covers 24% of the service area, will be replaced with new pipes of higher capacity designed to accommodate the increasing demand in the area.
Maynilad BOAC will also lay new pipelines that will enable it to expand services in 15 barangays, thus increasing the service coverage in the area to 76%. A total of 77 kilometers of pipelines will be laid after the rehabilitation and expansion program.
To cater to the future demand of the municipality, Maynilad BOAC will also increase its water supply capacity to almost 17 MLD. This will be done through the rehabilitation of two existing deep wells and the construction of eight new deep wells.
The concession agreement shall be effective for a period of 25 years beginning on the commencement date.
As of 31 December 2023, Maynilad BOAC’s commercial operations have not yet started, and operations from the local government unit to Maynilad BOAC has recently been turned over on 23 January 2024.
Subic Water and Sewerage Company, Inc.
On 28 January 2013, Maynilad won the bid to acquire 10% of Subic Water and Sewerage Company Inc. (“Subicwater”) from the city of Olongapo for ₱211 million. After the expiry of the right of first refusal of Subicwater’s existing shareholders to acquire the shares, Maynilad signed the deed of sale for the acquisition on 15 March 2013.
Subicwater operates the water supply and sewerage system in the Subic Bay Freeport Zone and the water system in Olongapo City, under a franchise agreement expiring in 2027. Billed connections at the end of December 2023 reached 49,956 accounts while the average NRW stood at 22.80%. Unaudited gross revenues as of 31 December 2023 amounted to ₱755.95 million while net income was at ₱68.56 million.
