DAVAO CITY, Davao
— Revenue from the Aboitiz Group's water venture in a major urban center in the southern Philippines may soon trickle in.
In a disclosure to the Philippine Stock Exchange, Aboitiz Equity Ventures Inc. (AEV) said Apo Agua Infrastructura Inc. today signed a contractual joint venture agreement and bulk water purchase agreement (BWPA) with the Davao City Water District (DCWD).
Under the BWPA, Apo Agua will supply Davao City with up to 300 million liters a day of treated bulk water. The water will come from a facility that will be powered by a hydroelectric plant.
Apo Agua is the joint venture company formed by AEV and J.V. Angeles Construction Corporation for the Tamugan Surface Water Development Project.
Earlie, AEV chief executive Erramon Aboitiz said the conglomerate is making a big push into infrastructure and other overseas ventures in the next five years before he retires. The conglomerate wants infrastructure to become the fith leg of its business, which includes power, banking, food manufacturing and real estate.
AEV has allotted P60 billion as capital outlay for this year, with bulk of that amount going to Aboitiz Power Corporation, which still makes up nearly three-fourths of the conglomerate's earnings.
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