ILOILO City – Aboitiz InfraCapital Inc. (AIC) has expressed its gratitude to the Iloilo City Government for entrusting confidence in its bulk water proposal.
In a statement, AIC reaffirmed its commitment to working with the local government and stakeholders to find sustainable solutions to Iloilo’s water challenges.
Mayor Jerry Treñas recently reversed his earlier reservations and approved the move to begin negotiations on Aboitiz’s proposal for the Iloilo Bulk Water Supply Project.
The Pre-Qualifications, Bids, and Awards Committee (PBAC) conducted a comprehensive evaluation and accepted the proposal for negotiation.
“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.
Aboitiz InfraCapital proposes a P8.45-billion project to build, operate, and maintain a bulk water system capable of supplying 80 million liters per day (MLD) of potable water for Iloilo over a 33-year period.
The plan includes pricing water at P51 per cubic meter, compared to the current P20 per cubic meter for the first 10 cubic meters consumed by households.
It also aims at increasing the supply of treatable and treated water for domestic and industrial use and preserving Iloilo’s groundwater sources by developing sustainable surface water sources.
Operating under Build-Own-Operate (BOO) and Build-Lease (BL) schemes, the proposal also includes selling treated bulk water to LGUs for redistribution.
Lawyer David Garcia, a member of the Public-Private Partnership (PPP) Committee of the Iloilo City Government, clarified that the acceptance of the proposal marks the start of negotiations, not its approval.
“When we accept it, the acceptance is for negotiation. It’s not an award or approval yet. It’s still for negotiation. During the negotiation, it can still be rejected if negotiations fail,” Garcia explained.
Mayor Treñas had earlier voiced reservations in September 2024, citing the proposal’s complexity and the unfamiliarity of LGUs acting as intermediaries in water distribution.
Currently, suppliers like Metro Iloilo Bulk Water Supply Corporation directly supply distributors, such as the Metro Iloilo Water District.
Despite these concerns, the PPP committee assured residents that the proposal was thoroughly reviewed to protect consumers’ interests.
Previously, the Iloilo City Council rejected Aboitiz’s request 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 the need for careful deliberation to avoid negatively affecting consumers.
The proposal will now proceed to a Swiss challenge, where other entities can submit competing offers, ensuring the city secures the most favorable terms.
The unsolicited proposal, submitted on August 9, 2024, met the requirements under Section 10 of the PPP Code. It was subsequently endorsed to the Iloilo Provincial and City Governments, which formally accepted the project on September 5, 2024, and October 14, 2024, respectively./PN
