Proponent secures P800M for bulk water supply project-A A +A
Friday, January 31, 2014
THE consortium that proposes to supply water to Metro Cebu by tapping a river in the northern town of Carmen obtained a P800-million loan from the Japan International Cooperation Agency (Jica).
The loan, which makes up 70 percent of the needed investment, signals the start of bulk water supply project that aims to provide 35,000 cubic meters of water to Metro Cebu. The remaining funding requirement will be shouldered by shareholders of the Cebu Manila Water Development Inc. (CMWD).
Officials of CMWD, Provincial Government, the Carmen Municipal Government, Jica and the Development Bank of the Philippines, which serves as conduit of the funding facility, signed the loan agreement yesterday.
The loan, which was made possible through the Philippine Water Revolving Fund, is payable in 20 years.
The water supply project involves the construction of a diversion weir intake structure, a two-kilometer raw water pipeline, a water treatment plant, pumping stations, treated water pipelines and a reservoir. Most of the facilities will be built in Barangays Cantumug and Lower Natimao-an.
Mike Santos, CMWD general manager, told reporters that the project will be implemented as a joint venture of the Capitol and the consortium.
CMWD is composed of Metro Pacific Water Investments Corp., Vicsal Development Corp. and the Ayala-led Manila Water.
Under their joint venture agreement with the Province, the initial investment for the project is P256.5 million, of which P125.685 million will come from the Capitol.
The agreement also states that the consortium will pay P35 million in advance royalties to Carmen town.
The consortium also promised to rehabilitate and protect the watershed that supports the Luyang River.
Carmen Mayor Martin Gerard Villamor said the local government will use the royalty fees from the consortium to build a track-and-field and finance road concreting projects.
Water produced by the Carmen facility will be sold to the Metropolitan Cebu Water District (MCWD) at P24.59 per cubic meter, said Santos.
CMWD and MCWD have a 20-year supply agreement.
Published in the Sun.Star Cebu newspaper on January 31, 2014.