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MANILA, Philippines - The Ayala group has bagged the right to buy a stake in an infrastructure company in Vietnam.
In a statement, Ayala Corp. (AC) said unit Manila Water Co. Inc. was awarded by Ho Chi Minh City Infrastructure Investment Joint Stock Co. (CII) the right to purchase a 10 percent stake in the company and a 49 percent stake in Kenh Dong Water Supply Joint Stock Co.
The Ho Chi Minh Stock Exchange-listed CII is a leading player in the infrastructure sector in Vietnam with experience in sourcing, implementing and operating infrastructure assets. Among its businesses are water treatment plants and toll roads serving Ho Chi Minh City and surrounding areas.
On top of that, CII, which was incorporated in 2001, has a stake in Thu Duc Water BOO Corp., a water treatment firm that is 49 percent owned by Manila Water.
Kenh Dong was established in 2003 to build, own, and operate major water infrastructure in Ho Chi Minh City. Its water treatment plant is expected to start commercial operations by the second semester this year, with a capacity of 200 million liters per day.
AC said the water treatment plant will benefit the suburban districts of District 12, Tan Phu and Binh Tan, where water coverage is low at about 50 percent of the population.
Kenh Dong also has a bulk water supply contract with state-owned Saigon Water Corp. (Sawaco) for a guaranteed volume of 150 million liters a day.
On top of its water business, CII holds toll road concession agreements for the 15.7-kilometer expansion of the existing Ha Noi Highway, connecting the northeastern part of Ho Chi Minh City to Bien Hoa, an industrial center located in the southern part of Vietnam.
CII is looking to invest in new water infrastructure projects as well as in public transportation terminals.
“This investment primarily supports and complements the expansion of Manila Water Co. as it gradually builds its presence in Vietnam. At the same time, this also provides strategic access to other related infrastructure opportunities which may be of value to the group,” Fernando Zobel de Ayala, AC president and Manila Water chairman, said.
“We recognize Vietnam is a high growth area in the region and there is strong demand for infrastructure investments. This may potentially present opportunities for the Ayala group to establish presence across several sectors,” he added.
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