MANILA - Ayala-led Manila Water Co. Inc. has signed a development agreement with REE Corp. and Mitsubishi Corp. to study private participation in Vietnam's water services projects, particularly in Ho Chi Minh city and its surrounding areas.

Manila Water said the agreement details the projects that it will pursue with its partners during the development period.

"Through this initiative, Manila Water looks forward to complementing its existing management contract to reduce leakage in Ho Chi Minh City as it expands its footprint in Vietnam," Manila Water told the Philippine Stock Exchange on Thursday.

REE is one of the largest mechanical and civil engineering groups incorporated in Vietnam, while Mitsubishi     is one of the world's largest technological groups.

Manila Water, which distributes water in Metro Manila's east zone, reported a 14% growth in profits for the first 9 months of the year due to higher revenues and better operating efficiency.

The company's net income increased to P2.27 billion in January to September from last year's P1.99 billion. Revenues likewise rose 6% to P7.04 billion from the P6.63 billion recorded in the same period in 2008.