Villages to get more water through pact-A A +A
Thursday, September 26, 2013
THE Metropolitan Cebu Water District (MCWD) has signed a joint venture agreement with a private company to supply water to 4,000 households in Barangays Cabancalan, Maguikay, Bakilid and Casuntingan in Mandaue City for 10 years.
MCWD General Manager Armando Paredes and Abejo Waters Corp. (AWC) president and chief executive officer Gabino Abejo Jr. signed the agreement yesterday in the presence of MCWD board chairman Rene Mercado and Allen Marcojos of AWC.
Paredes said AWC is expected to deliver 5,000 cubic meters of water a day to MCWD within 12 months.
The 5,000 cubic meters of water a day that MCWD supplies to the areas is not enough and consumers experience low pressure, especially during peak hours, said MCWD production and distribution department manager Astrophel Logarta.
Paredes said MCWD has eight bulk water supply agreements with private companies in the past four years, and five of them are with AWC.
Through the agreements, MCWD is able to supply an additional 17,092 cubic meters of water a day to its daily production of 182,000 cubic meters. The water district has 150,000 consumers.
Abejo said AWC has invested about P45 million for the project, which involves laying a new pipeline in Sitio Tingub so that the water can be injected into MCWD’s distribution line along M.L. Quezon Ave. in Barangay Cabancalan.
Abejo said his company offers the water to MCWD at an average of P14.78 per cubic meter.
Paredes said MCWD received an unsolicited joint venture proposal from AWC and after negotiations, it was agreed that the private firm will supply water to MCWD at the minimum volume of 5,000 cubic meters per day for 10 years.
“We published the AWC proposal in the newspapers for one month but there was no challenge from any interested party,” Paredes said.
Mercado said the signing of the new agreement with AWC is proof that Cebu has big water sources.
MCWD assistant general manager Ernie Delco said that Metro Cebu’s big water sources include the watersheds of Mananga, Kotkot and Lusaran, but these have remained undeveloped due to high costs.
Published in the Sun.Star Cebu newspaper on September 26, 2013.