Vivant Water seals 25-year supply deal with Cebu water district to address shortage

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Vivant Corp. announced that its water unit has secured a 25-year supply deal with the Metropolitan Cebu Water District (MCWD) to help address Metro Cebu’s water shortage concerns.

In a disclosure to the Philippine Stock Exchange on Thursday, April 10, the company said Vivant Water has signed a joint venture (JV) agreement with MCWD to supply water by utilizing Vivant Water’s desalination plant.

Located in Cordova, Cebu, the desalination facility will produce up to 20 million liters of clean and potable water daily, which will be distributed by MCWD to its consumers.

This partnership arose from water scarcity in early 2024, when Cebu City declared a water crisis due to the effects of El Niño. MCWD had previously reported that its daily water deficit had increased from 40,000 cubic meters to 50,000 cubic meters.

This, in turn, affected water distribution in parts of Talisay City and the southern district of Cebu City.

Arlo Sarmiento, chief executive officer of Vivant Corp., believes that the recently signed agreement would address the crisis through a formal partnership to achieve water solutions for the city.

“Vivant is committed to investing in essential infrastructure that enable communities to thrive… This landmark partnership with MCWD is a testament to our long-term vision of providing sustainable and impactful projects that propel economic growth and improve everyday living in the communities that we serve,” he said.

“Water security is essential to sustainable development, and this agreement showcases our dedication to innovative solutions. Desalination provides a viable and scalable alternative to meet Cebu’s growing demand,” Sarmiento added.

Vivant Water’s subsidiary, Isla Mactan Cordova Corp. (IMCC), has pioneered the country’s first utility-scale seawater desalination plant, which aims to address increasing water demand caused by the growth in population and business activities.

“Water desalination has emerged as a globally recognized solution for water-scarce regions. Its adoption in Metro Cebu reduces dependence on traditional freshwater sources and helps the region adapt to the impacts of climate change and population growth,” Vivant stated.

Previously, MCWD awarded to Vivant Water the Cordova bulk water supply project in 2022, via competitive selection process (CSP).

Aside from water developments, Vivant Corp. has a range of energy portfolios in the region, as most investments are engaged in electric power generation such as renewable (RE) and non-renewable energy, electric power distribution, as well as retail electricity.