Hiraya Water Launches $10 Million Upgrade in Cavite After Ownership Change

New Owner, New Infrastructure Push

Hiraya Water Corp. has broken ground on a PHP 600 million infrastructure overhaul in Dasmariñas City, Cavite, the first major capital deployment since retail tycoon Lucio Co acquired the troubled utility in May. The project targets chronic service issues that plagued the company under its previous ownership, when it operated as PrimeWater Infrastructure Corp.

The investment forms part of a PHP 6.7 billion initial rehabilitation program announced this week by Crystal Bridges Holdings Corp., Co's vehicle for the acquisition. The Dasmariñas initiative will replace 24 kilometers of aging water mains through a Non-Revenue Water Reduction and Total Pipe Replacement Program, according to the company.

The first phase addresses a nine-kilometer stretch serving Barangays Sampaloc IV and Victoria Reyes, neighborhoods home to approximately 16,000 households. Hiraya Water projects daily water availability in these areas will climb from intermittent service to 12 to 24 hours once the new pipes are operational, with water pressure improvements expected across the network.

Storage and Source Expansion

Beyond pipeline replacements, the company plans to construct a 700-cubic-meter elevated storage tank in Barangay Paliparan II. The facility will anchor a new booster system designed to extend reliable service into Barangay Paliparan III, benefiting roughly 8,700 connections.

Hiraya Water is also developing an additional water source to serve 17 barangays, though the company has not disclosed the location or capacity of the new extraction point. The source development aims to address persistent low-pressure complaints that triggered regulatory scrutiny under the previous ownership structure.

Jose Paulino Santamarina, president of Hiraya Water, framed the capital program as a trust-rebuilding exercise. The company secured approval from the Securities and Exchange Commission in June to operate under the Hiraya Water name, shedding the PrimeWater brand that had become synonymous with service failures.

Legacy of Service Disruptions

The rebranding and ownership transition follow a turbulent period for the utility. PrimeWater faced investigation by the Local Water Utilities Administration in 2025 after widespread consumer complaints in Bulacan, Cavite, Laguna, Bohol, and Pangasinan. Customers reported frequent supply interruptions and billing disputes that escalated to local government intervention.

Co, who built his fortune through retail operations, completed the acquisition from the Villar family two months ago. The deal structure has not been publicly disclosed, though the PHP 6.7 billion rehabilitation budget signals a substantial commitment to operational turnaround.

The Dasmariñas project carries symbolic weight for Hiraya Water's new management. Cavite province represents one of the company's largest service territories and a focal point of the complaints that damaged PrimeWater's reputation. Santamarina emphasized that the company intends to demonstrate change through completed infrastructure rather than corporate messaging.

Infrastructure Deficit in Metro Manila's Growth Corridor

The Dasmariñas investment reflects broader challenges facing water utilities in the southern Metro Manila corridor. Rapid residential and industrial development in Cavite has outpaced infrastructure investment, leaving distribution networks struggling to meet demand. Many systems still rely on pipes installed decades ago, before the province became a hub for manufacturing and middle-income housing.

Hiraya Water's pipeline replacement program addresses a common issue in Philippine water utilities: non-revenue water losses from leaks, illegal connections, and metering inaccuracies. Industry data suggests non-revenue water rates in some concession areas exceed 40 percent, eroding both supply reliability and financial sustainability.

The company has not provided a completion timeline for the Dasmariñas work, though the scale of the pipe replacement suggests a multi-year rollout. The storage tank and booster system construction will likely proceed on a faster track, given the immediate pressure relief they can provide to underserved areas.

Co's entry into the water sector marks a diversification from his core retail holdings. The acquisition gives him control of concessions serving multiple provinces, though the operational challenges he inherits are substantial. Whether the PHP 6.7 billion capital commitment proves sufficient to restore service quality and regulatory confidence will become clear as construction progresses across Hiraya Water's territory.