Aboitiz gets OPS for bulk water project

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

ILOILO CITY — The Iloilo City government has granted original proponent status (OPS) to Aboitiz InfraCapital (AIC) for its P5.2-billion Iloilo Bulk Water Supply Project, pushing the infrastructure initiative closer to realization.

The OPS, conferred on Thursday, gives AIC the advantage of matching any superior offer during the Swiss challenge stage of the procurement process.

"As Iloilo City continues to progress, it is necessary to provide a sustainable water source to support its growth," said Eduardo Aboitiz, AIC's vice president and head of water business.

Aboitiz said the proposed bulk water supply project is the group's long-term commitment to secure, safe and reliable water supply for the people of Iloilo City and Metro Iloilo.

"More than just a project, this is a commitment — of responsible stewardship, of innovation in water infrastructure, and of genuine partnership with local government units like yours who share our vision," Aboitiz said.

Following the OPS conferment, the proposal will now undergo further evaluation by the Iloilo City Local Development Council and City Council. If approved, the project will proceed to the Swiss challenge.

If no challengers emerge or if AIC successfully matches a superior offer, the city will award the project to AIC.

Water security

David Abraham Garcia, head of the Iloilo City Public-Private Partnership Office, said that under the proposed arrangement, AIC will construct a water treatment facility and an 8-kilometer pipeline to deliver 86 million liters of potable water daily.

The city government, for its part, will assist in securing permits and identifying off-takers or bulk water buyers, but will not directly fund the project.

The OPS was granted after months of negotiation between AIC and the city's public-private partnership committee, which initially rejected the proposal due to the firm's proposed water rate of P51 per cubic meter — more than double the current P22 rate charged by Metro Pacific Iloilo Water.

Following the 90-day negotiation, AIC lowered its proposed rate to P40 per cubic meter.

AIC president Cosette Canilao argued that while it is higher than existing rates, it is still significantly lower than the current cost of vended water, which ranges from P150 to P220 per cubic meter from water trucks, and up to P2,500 per cubic meter from 5-gallon containers.

"What is more expensive is the absence of water. [...] The moment we supply water and make it available for everyone, the effect is that their water consumption and cost will reduce," Canilao said.

AIC has also submitted a separate proposal to the National Irrigation Administration (NIA) to complete the highline canal of the Jalaur River Multipurpose Project Phase II (JRMP II) in Calinog, Iloilo.

Main water source

The JRMP II will be AIC's main water source for the bulk water project.

"What we wanted to do is just to expedite it because if they have issues in securing funding for the highland canal, then we're here, we will be able to do that for them to ensure that water is provided for the city," Canilao said.

However, NIA announced in April that it is "unable to proceed" with AIC's proposal due to a misalignment with its comprehensive development plan and potential conflicts with existing agreements.

Despite this, Canilao said AIC is still in talks with NIA for a possible reconsideration and stressed that regardless of the outcome, the bulk water project will proceed.

"If NIA does the highline canal by themselves, then there's no change in the source of water. It's really the highline canal which will be completed either by NIA or by us if they accept our proposal," she added.

NIA earlier announced it is targeting to complete the highline canal by 2027.