MANILA – Engineering conglomerate Megawide Construction Corp. has secured a contract worth over P2 billion to design and build Maynilad Water Services, Inc.’s water treatment facility, allowing the company to diversify its portfolio.
The Las Piñas Water Reclamation Facility is set to deliver 88 million liters per day (MLD) of potable water, Megawide said in a disclosure to the stock exchange on Monday.
Maynilad said its first water reclamation engineering project could support the requirements of 88,000 households.
“The Megawide construction business will continue its expansion this year, starting with Maynilad’s 88 MLD Las Piñas facility. We are actively seeking more projects outside the residential and commercial types to expand our portfolio,” Megawide Chairman Edgar B. Saavedra said in a statement.
The listed firm has partnered with Toshiba Group’s UEM India Pvt. Ltd. and LinkENERGIE Industries Co., Inc. for the project.
The UEM group is an international firm based in India that provides services ranging from engineering and design to construction and installation of water, wastewater, and domestic waste treatment facilities, according to its Web site. The company was consolidated into the Toshiba group last 2015.
Meanwhile, LinkENERGIE is a local company that offers products and services primarily for the water sector.
“We partnered with UEM and LinkENERGIE to ensure delivery of the highest quality standards. UEM brings solid international experience in creating water treatment facilities and we are looking forward applying their world-class standards to this project,” Mr. Saavedra said.
The design and pre-construction work for the Las Piñas facility will start this month.
Megawide noted the Maynilad water facility is the first of many projects it has yet to unveil for the first quarter
of 2018.
“Our construction business is off to a great start this year. We have a number of exciting new projects that we will announce very soon,” Mr. Saavedra said.
The Megawide executive further said they are looking at more projects similar to that of Maynilad’s, as part of a five-year diversification plan to accelerate its growth.
Unveiled in 2016, Megawide announced its strategy to enter four core businesses, namely construction, airport operation, transport, and power generation focused on renewable energy sources within the next five years.
For power, Megawide has acquired Citicore Power, a renewable energy firm committed to produce 1,000 megawatts of clean energy through solar, biomass, wind, and hydropower sources.
In airport operation, Megawide’s consortium with India’s GMR Infrastructure was recently awarded the contract to build a new passenger terminal for Clark International Airport in Pampanga. Megawide had the lowest bid for the project at P9.36 billion, around 25% lower than the ceiling price of P12.55 billion.
For transport, Megawide has a 35-year build-transfer-and operate contract for the Integrated Transport System-Southwest Project signed in 2015.
The listed company recorded a 5.7% growth in attributable profit for the first nine months of 2017 to P1.38 billion, against the P1.31 billion recorded in the same period a year ago. Revenues, meanwhile, climbed 4% to P14.5 billion during the period.
Shares in Megawide dropped eight centavos or 0.45% to close at P17.70 apiece at the Philippine Stock Exchange on Monday.