Commission Decision No. 41-M-049/2017
Joint Venture between Prime Metro Power Holdings Corporation
and San Lorenzo Ruiz Builders & Developers Group, Inc. (Wawa JVCo)
The proposed transaction is a joint venture between San Lorenzo Ruiz Builders & Developers Group, Inc. (SLRBDGI) and Prime Metro Power Holdings Corporation (PMPHC) to form the “Wawa JVCo.” The Wawa JVCo 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 and surrounding communities (the Wawa Water Project).
SLRBDGI is the holder of the Water Permit for 3,480 liters per second of water from the Wawa River for municipal/commercial use (the “Wawa Water Permit”). It also has a pending application with the National Water Resources Board to increase the volume of water under the Wawa Water Permit from 3.48 cubic meters per second (CMS) to at least 18.13 CMS, and up to 40 CMS (the “Application for Volume Increase”).
SLRBDGI will contribute the Wawa Water Permit, Application for Volume Increase, and the Wawa Water Project to the Wawa JVCo, in exchange for 18 percent of ownership of the Wawa JVCo.
PMPHC proposes to invest in and assume controlling stake in the in the Wawa JVCo, with 82 percent share ownership thereof, after the Wawa Water Permit, Application for Volume Increase, and the Wawa Water Project are transferred to the Wawa JVCo. PMPHC undertakes to raise project funding for the Wawa Water 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.