Tokyo, Japan—Marubeni Corp., the Japanese partner of west zone concessionaire Maynilad Water Services Inc., is committed to invest more in the Philippines despite the issues the business sometimes have to deal with over the years.
“We are willing to continue our business in the Philippines. That’s our commitment,” said Marubeni Environmental Infrastructure Department general manager Kazuaki Shibuya.
“As Marubeni, will continue to contribute to Maynilad for its improvement including the IPO (initial public offering) which is expected in a few years. In time, I hope Maynilad will contribute to Marubeni’s profit,” Shibuya told reporters.
Marubeni helped convince the Japan International Cooperation Agency (JICA) to grant the first commercial loan to a private company in the Philippines.
According to Shibuya, Marubeni has devised a contract risk system that rates countries in terms of the type of technology they use, its political situation and bureaucratic environment. “We kind of put a credit limit on these countries. From our point of view, the Philippines has much more space in the margin,” he said.
This year, Marubeni celebrates its 10th year with Maynilad and its 20 percent stake. Metro Pacific Investments Corp., the now-delisted firm led by Manuel V. Pangilinan, owns 56.8 percent and operates the company. DMCI Holdings Inc. owns another 40.98 percent.
Ramoncito S. Fernandez, president of Maynilad, said the plan is to go public by 2026. With Marubeni as partner, the enterprise will keep investing in water assets costing P163 billion over the next five years. This commitment is part of its concession agreement with the government.
Fernandez said Maynilad will spend up to P26 billion this year and P31 billion for next year for this purpose.
“It’s too early to talk about it (IPO). But definitely, as I mentioned, it will be a significant IPO,” Fernandez said.
There were also talks to merge with Metro Pacific Water to bring water and waste water services outside of Metro Manila that Fernandez said would tell a better story for investors to come and invest in Maynilad.
Marubeni stayed on as one of Maynilad’s strategic investors during its contract review with government when Fernandez said the company was unable to access loans.
A concession agreement was signed in 2021, in which Maynilad provides water and wastewater services in the West Zone until July 2037.
