MacroAsia Corp., the aviation and food services provider controlled by billionaire Lucio Tan, has commenced operations at its desalination plant in Lapu-Lapu City, marking an expansion of its water utility business in Cebu.

In a disclosure to the Philippine Stock Exchange on Friday, Feb. 20, MacroAsia said its subsidiary, CSWater Lapu-Lapu Inc., inaugurated the facility on Olango Island to address chronic supply shortages and strengthen water security in the region.

MacroAsia said the plant utilizes seawater reverse osmosis technology and is supported by a newly integrated distribution network. While the project was initially designed to process 500 cubic meters of water per day, it serves as the first phase of a broader infrastructure push in the province of Cebu.

A second, larger desalination facility in Punta Engaño is slated for completion within the next few months. Once that site is fully operational, MacroAsia expects its potable water production capacity to reach 20 million liters per day.

Both projects are being executed under a joint venture agreement with the Lapu-Lapu City government, forming part of a long-term, concession-based infrastructure program intended to modernize the city’s utility framework.

MacroAsia’s pivot toward water infrastructure aligns with a broader capital allocation strategy aimed at diversifying away from the cyclical nature of the aviation industry. By investing in essential services, the company is targeting sectors characterized by stable demand, long-term contracts, and high barriers to entry. 

The project’s financial foundation was solidified last year when MacroAsia secured a ₱1.41 billion financing deal through a partnership with Security Bank Corp. to fund its desalination ventures in the area.