NEGROS Occidental Governor Eugenio Jose Lacson said the Bacolod City Water District (Baciwa) will finally join the bulk water supply project of the provincial government.
Lacson confirmed that Baciwa general manager Mona Dia Jardin submitted a letter of intent stating their interest in availing of the project.
The water district intends to avail itself of 10 million liters of water a day when the project starts operating in three years, and it's already a good amount from Bacolod, Lacson said.
Basically, they see the need for that volume and realize their requirements in the years to come, Lacson said.
"Ever since it is more beneficial for investors if Bacolod is included in the project," he said.
In her letter to the governor, Jardin said she acknowledges that the successful implementation of the project may be advantageous to the province of Negros Occidental and the local water authorities.
She cited that the consolidated volume purchase of treated bulk water is expected to result in a lower Bulk Water Charge (BWC) based on economies of scale and set, extracted, and adjusted via public bidding under the BOT Law.
"The construction, operation, and eventual transfer of large capacity water treatment and conveyance systems are expected to provide a more stable and sustainable supply of treated bulk water over the long term as well as allow scarce groundwater resources to replenish,” she said.
Jardin also said that she "understands the advantages and benefits of the project.”
She also said that they will exert their best efforts to fully cooperate with all the parties to ensure the successful implementation of the project.
"The basic terms of such supply shall be governed by a Memorandum of Agreement or some other definitive agreement, however titled, to be executed among the Province of Negros Occidental, the Offtakers, the Private Concessionaire, and any other parties as may be deemed necessary," Jardin also said.
She said, "Acknowledging the urgent need for water supply and the correlated availability of water for the residents of the Province of Negros Occidental is dependent on the placement of firm commitments to source large volumes of bulk water on a long-term commitment to build and operate a large capacity water infrastructure facility, I will undertake on a best efforts basis to propose to Baciwa to source its water requirements on long-term basis via the Project, as will be set out and entered into in a Memorandum of Agreement."
Jardin said that the letter of intent "does not and is not intended to contractually bind the Baciwa and is only an expression of interest, subject to the conduct of due diligence and execution of a definitive agreement.
Baciwa shall not be contractually bound unless and until it enters into a formal, written Memorandum of Agreement or some other definitive agreement, which must be in form and content satisfactory to the parties, she stressed.
The provincial government will gather some five potential investors for its P1.2 billion bulk water supply project during a forum on Aug. 10.
Companies that have expressed intent to invest include Aboitiz InfraCapital Inc., Manila Water Company Inc., San Miguel Corp., Suez Water Technologies, and Genesis Water Technologies Philippines.
The investors' forum has been set after the province completed the study for the Negros Occidental Bulk Water Project in partnership with the Public-Private Partnership (PPP) Center, Asian Development Bank, and United States Agency for International Development last month.
Under a PPP scheme, the provincial government seeks to enter into a joint venture agreement with a private investor to fund the P1.2 billion project and would allocate P100 million as counterpart funding.
The plan is to use surface water from the Imbang River and Malogo River in Silay City and E.B. Magalona town.
In Negros Occidental, groundwater availability is only at eight percent, creating an urgent need to utilize other water sources, including surface water resources, which have 92 percent availability.*