ILOILO City – Mayor Jerry Treñas has reversed his earlier stance and accepted a proposal for a bulk water supply, moving it to the negotiation stage.
He announced yesterday that the Pre-Qualifications, Bids, and Awards Committee (PBAC) conducted a thorough evaluation and resolved to accept Aboitiz InfraCapital Inc.’s (AIC) proposal to build and operate a bulk water supply system.
“Water is a fundamental need, and the city remains committed to securing a competitive price and ensuring high-quality water services for every Ilonggo household,” said Treñas.
The proposal
Aboitiz InfraCapital’s proposal involves building, operating, and maintaining a bulk water system to supply 80 million liters per day (MLD) of potable water for Iloilo over 33 years.
The project is estimated to be worth P8.45 billion.
Water is to be sold at P51 per cubic meter, double the current rate of P20 per cubic meter for the first 10 cubic meters consumed by households.
The project aims to increase the supply of treatable and treated water for domestic and industrial use in Metro Iloilo and the province.
It also seeks to protect Iloilo’s groundwater sources by developing sustainable surface water sources and provide a resilient water supply for Iloilo Province.
Under the Build-Own-Operate (BOO) and Build-Lease (BL) schemes, Aboitiz would sell treated bulk water to local government units (LGUs), which would then resell it to distributors, water districts, or other buyers.
Challenges and previous concerns
Treñas previously expressed reservations about the proposal, citing its complexity and the need for LGUs to act as intermediaries—a setup unfamiliar to the city.
In September 2024, he noted that this arrangement could complicate distribution and increase consumer costs.
The city’s current system involves suppliers like the Metro Iloilo Bulk Water Supply Corporation, which directly supplies distributors like the Metro Iloilo Water District.
Despite these concerns, Treñas assured residents that the city’s Public-Private Partnership committee had studied the proposal thoroughly and would ensure fair terms for consumers.
City Council’s initial rejection
The Iloilo City Council previously rejected a related request by Aboitiz to authorize Mayor Treñas to secure water rights from the Jalaur River Multi-Purpose Project II (JRMP II).
Councilor Frances Grace Parcon, chairperson of the Committee on Rules, emphasized that hasty decisions could harm consumers.
Next Steps: Swiss Challenge
Following the negotiation stage, a Swiss challenge will invite other parties to submit competing proposals, ensuring the best possible terms for the city.
Treñas reiterated the city’s commitment to transparency and public welfare.
“We thank Aboitiz InfraCapital for their proposal and reaffirm our commitment to fairness, sustainability, and progress. The Iloilo City Government will always prioritize the welfare of our people in every decision,” he said.
The PPP Center reported the unsolicited proposal was endorsed to the Iloilo Provincial Government and Iloilo City Government on August 9, 2024, after meeting the requirements under Section 10 of the PPP Code.
The provincial government and the city government formally accepted the project on September 5, 2024, and October 14, 2024, respectively./PN
