ILOILO – The provincial government has received an unsolicited proposal for a bulk water supply project from Aboitiz InfraCapital (AIC), aimed at addressing the forecasted water shortage in the region.
This week, AIC representatives visited the Iloilo provincial capitol to present their proposal to the Public-Private Partnership (PPP) Board, chaired by Gov. Arthur Defensor Jr.
The company outlined a 33-year concession agreement, including a three-year construction phase followed by a 30-year delivery period, with possibilities for extension.
AIC’s proposal includes two concession models: a build-own-operate framework for an 80 million liters per day (MLD) water treatment facility with a four-kilometer treated water transmission system, and a build-lease model focused on the expansion of treated water pipelines.
Provincial Board member Jason Gonzales, a participant at the presentation, remarked, “Their proposal is strategically based on the forecast that the water needs of Iloilo Province will soon outpace supply if new sources are not tapped and developed.”
The build-own-operate model is particularly innovative, as AIC plans to sell the treated bulk water directly to the Iloilo provincial government, which would then resell it to water distributors and third-party purchasers.
The feasibility of this agreement hinges significantly on the cost of treated water per cubic meter, from AIC to the provincial government.
Gonzales also noted that AIC has committed to minimizing costs in their forthcoming detailed proposal. He added that approval of this project could significantly benefit municipalities currently lacking water providers, though he acknowledged that the approval process would be lengthy.
When asked for a comment, Governor Defensor stated that discussions on the proposal were still premature.
“They have submitted a proposal for water supply, and we are currently evaluating whether to accept and negotiate further,” said Defensor./PN
