HAGUE-BASED Climate Fund Managers (CFM) has invested P1.6 billion for a minority stake in Tubig Pilipinas Group Inc. (TPGI), its first venture in the Philippines.

"CFM's initial commitment to TPGI is P1.6 billion and will be disbursed in tranches as required, with capacity to increase its commitment based on expansion opportunities," CFM head of Asia Nathan Schmidt told The Manila Times.

TGPI is a subsidiary of Pure Water Corp. and primarily operates, manages, and rehabilitates waterworks, sewage and sanitation systems and services.

Schmidt said CFM was approached by TGPI not just for additional growth capital but also to leverage CFM's experience in implementing high environmental, social and governance (ESG) standards in fast-growing platforms.

"Development funding was initially provided in March 2023 to conduct early development work, E&S (environmental and social) studies, and due diligence," he said.

This was eventually followed by a series of negotiations until both parties signed definitive agreements on June 28, 2024.

With its initial investment, CFM plans to expand and rehabilitate TGPI's water treatment and distribution projects in San Jose in Nueva Ecija, Trece Martires in Cavite, Coron in Palawan, and Catbalogan in Samar.

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