San Lorenzo Group, Prime Metro Power Holdings team up for water project.
MANILA, Philippines The San Lorenzo Group, led by businessman Oscar Violago, and Prime Metro Power Holdings Corp. have agreed to form two joint venture companies in the water business.
One is the Wawa JVCo which will construct and establish facilities to capture and divert water for municipal use from the Wawa River to provide either raw or treated water to water distributors and consumers in Metro Manila. Aside from Metro Manila, communities in surrounding areas will also benefit from the project.
San Lorenzo holds the water permit for 3,480 litters per second of water from the Wawa River for municipal and commercial use. The company has a pending application with the National Water Resources Board to increase the volume of water under the Wawa Water Permit to at least 18.13 cubic meters per second to at least 18.13 CMS and up to 40 CMS eventually.
Prime Metro will take a controlling 82 percent stake in the company. This will be done after the Wawa water permit, application for volume increase and the Wawa water project are transferred to the Wawa joint venture.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1 San Lorenzo, meanwhile, will own 18 percent in the joint venture. Prime Metro will raise the funding for the project "once it is convinced of the legal, commercial and financial viability of the Wawa water project after it conducts due diligence within a period of one year.
" The other joint venture is the Chico JVCo, which is between San Lorenzo Ruiz Piat Energy and Water Inc. (SLRPEWI) and Prime Metro.
The Chico JVCo "will construct and establish hydropower facilities for the supply of hydropower to power distributors and end users in Luzon. Its principal assets will be located in the area covered by the Chico hydropower service contract in Tabuk, province of Kalinga, Luzon.
Prime Metro will likewise raise project funding for the Chico hydropower project once it is convinced of its legal, commercial, and financial viability after its conduct of due diligence within a period of one year. It shall have control over the Chico JVCo with 82 percent share ownership.