PCC extends review on Dasma Water-PrimeWater joint venture

Anti-trust watchdog Philippine Competition Commission (PCC) on Tuesday announced the extension of its review on the proposed partnership of Dasmariñas Local Water District (Dasma Water) and Villar-owned PrimeWater Infrastructure Corp. (PrimeWater).

"The Philippine Competition Commission, through its Mergers and Acquisitions Office, has opened a Phase 2 review to conduct a more detailed inquiry into the proposed joint venture between Dasma Water and PrimeWater," it said in a statement.

Under the Philippine Competition Act (PCA), the PCC is mandated to review all business transactions worth P2.2 billion and above to protect competition in the market and prohibit anticompetitive conduct.

It is also tasked to look into transactions with the ultimate parent entity of at least one of the parties having a value of assets or revenues of P5.6 billion.

"In Phase 2 review, MAO seeks to investigate whether the transaction would enhance PrimeWater’s ability and incentive to engage in foreclosure of downstream market competitors of the entities affiliated with PrimeWater," the PCC said.

The second phase of the review would cover 60 days which started on February 7, 2019.

"With the business of water distribution considered an important market, PCC-MAO is looking into how the transaction will affect the competition in the provision of water supply and septage management services, and affect the customers, within and around the service area of Dasmariñas Local Water District," the PCC said.

"At the time of notification at PCC, PrimeWater has 39 existing joint ventures with different local water districts," it added.

After the planned joint venture, PrimeWater will have operational control and management of the activities or services being provided by Dasma Water, under PrimeWater's name.

In the meantime, the PCC has opened its lines to comments from stakeholders such as water suppliers, septage management providers, representatives from other water districts, sanitary engineers, residents of Dasmariñas, Cavite and other interested individuals on the said joint venture.  —Jon Viktor D. Cabuenas/KBK, GMA News