September 19, 2024 | 12:00am
MANILA, Philippines — MacroAsia Corp., known for its aviation support services, is pushing hard with its expansion in water distribution, investing in two desalination plants in Cebu to pump up supply in the area.
The company said it has started construction for its Seawater Desalination Plant Project in Lapu-Lapu City, Cebu, marking another water venture for the company popular for aircraft handling and in-flight food.
CSWater Lapu-Lapu Inc. (CSWLL), a unit of MacroAsia’s subsidiary Summa Water Resources Inc. (SWRI), will co-lead the project with the local government of Lapu-Lapu.
The project involves the completion of a desalination facility in Punta Engaño that can produce 15 million liters per day (MLD). Likewise, CSWLL will build a similar infrastructure in Olango Island, designed to put out 500 cubic meters per day.
MacoAsia said it is pursuing the project to bridge the water demand in Lapu-Lapu. The project was approved through a joint venture agreement signed in 2019, but CSWLL landed the notice to proceed only this year.
“This event (groundbreaking of the plant) represents a pivotal milestone in our collective pursuit of sustainable water management solutions and marks the commencement of efforts to ensure a reliable water supply for the city of Lapu-Lapu,” MacroAsia said.
SWRI is 60 percent owned by MacroAsia by way of its unit Allied Water Services Inc.
ThinkHazard!, developed by the Global Facility for Disaster Reduction and Recovery, classifies Cebu as a high risk area for water scarcity, meaning the province should expect droughts to occur on average every five years.
Cebu has struggled to provide for the water needs of all of its residents, and estimates show that its supply deficit reaches as high as 250 MLD.
For MacroAsia, the new water project supports efforts to spread its wings outside of the aviation industry. Recently, the company has invested in non-aviation projects, including connectivity, to grow the business, and has its eyes set on other segments if opportunities show up.
MacroAsia grew its water revenues by 14 percent to P327.1 million as of June, from P286.4 million a year ago. The company sources its third largest earnings from the water venture, trailing its niche businesses of in-flight catering and aircraft handling.
Currently, MacroAsia operates water distribution in Boracay and Naic, Cavite, and is working on fresh projects in Bacolod, La Union and Pangasinan, on top of the new one in Cebu.
MacroAsia is performing well into 2024, increasing its profit to P691.6 million in the six months to June, from P285.8 million a year ago, still lifted by its aviation units.
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