1 month ago
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ILOILO CITY —The local government here has given its approval to Aboitiz InfraCapital Inc.'s (AIC) plan to construct and operate the Iloilo Bulk Water Supply Project four months after it turned down the plan.
Iloilo City Mayor Jerry Treñas confirmed that he signed a letter confirming to the AIC that the city's Pre-Qualifications, Bids, and Awards Committee has resolved to accept the firm's proposal.
AIC in a statement to The Manila Times also confirmed the development.
"We are grateful for the Iloilo City government's confidence in our bulk water proposal. Aboitiz InfraCapital is dedicated to collaborating with the local government units and other stakeholders to find sustainable solutions to the city's water challenges," the firm said.
AIC has an unsolicited proposal to privatize the Iloilo Bulk Water Supply Project under a Build-Own-Operate (BOO) and Build-Lease (BL) scheme.
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"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," the mayor said.
Treñas said that the evaluation of AIC's proposal has been "thorough and transparent."
The committee's approval means the project will move forward to the negotiation stage.
Under the Public-Private Partnership (PPP) code, these negotiations, which can last between 30 and 80 days depending on the proposal's complexity, can be extended to a maximum of 150 days.
If successful, AIC will be granted Original Proponent Status, valid for one year, allowing the project to proceed to a Swiss Challenge.
During the Swiss Challenge, other bidders can match or exceed AIC's proposal, ensuring transparency and competitiveness in the procurement process.
It can be recalled that in August last year, Treñas said the proposal "is under reconsideration" and they needed more time to study it.
In September, he said the BOO and BL contractual agreements proposed by the AIC were unfamiliar to the city government, making the deal "complicated."
The scheme requires the city and provincial governments to purchase treated water from AIC and resell it to distributors.
He also pointed out that the scheme could result in higher water rates for consumers due to two levels of charges: one from the city government and another from the distributor.
Based on the PPP Center website, the water supply project, valued at P8.45 billion, is expected to provide 80 million liters of potable treated water per day to Iloilo over a concession period of 33 years.
