Capitol mulls new joint venture with Manila Water

Capitol mulls new joint venture with Manila Water
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THE Cebu Provincial Government plans to enter into another joint venture for the operation and maintenance of Capitol-funded bulk water projects across the province.

On Thursday, Feb. 22, 2024, Gov. Gwendolyn Garcia met with Manila Water Consortium Inc. (MWCI) chief operating officer Melvin John Tan to discuss the matter.

The Capitol already has a joint venture agreement with the consortium for the establishment of the Cebu Manila Water Development Inc. (CMWD), wherein the Province owns 49 percent of the company while the consortium owns 51 percent.

The consortium is made up of the Manila Water Company Inc., Metro Pacific Water Investments Corp. and Vicsal Development Company.

The deal, which started in December 2013, extracts 35 million liters of water daily from the Luyang River in the northern town of Carmen.

The CMWD supplied the water to the Metropolitan Cebu Water District (MCWD) to benefit the latter’s consumers in Compostela, Liloan, Consolacion, Mandaue City, and Cebu City. But the deal was terminated on Dec. 1, 2023, as the CMWDI was operating at a loss due to unfavorable tariff rate of P24.59 against the inflation rate.

Two months after, a new water supply contract was signed between the MCWD and the Manila Water Philippine Ventures for the Cebu North Bulk Water Supply Project.

The new joint venture will initially involve the local government units of Dalaguete, Tuburan, Asturias, Pinamungajan, Aloguinsan, San Remigio, Tabuelan, Sogod, Dumanjug, Ronda, Alcantara, Badian, and Ginatilan.

MWCI has to present a formal proposal before the Provincial Economic Enterprise Council headed by Garcia.

According to the report on the official website of the Cebu Provincial Government, the Capitol has invested in at least 11 bulk water facilities out of the 26 planned under its pipeline, with an initial allocation of P3 billion in 2023.

In December 2021, Garcia proposed the bulk water supply projects after the devastating onslaught of Typhoon Odette (Rai). One of the objectives was to address the increasing demand for potable water.

The Province constructs bulk water infrastructure for Level 3 connections and transfers ownership to the municipal government for management after completion.

The town would purchase the bulk water from the Provincial Government per cubic meter and oversee the distribution and sale of water.

Bulk water development is a key priority of Garcia’s infrastructure development agenda, as part of her long-term goal of providing a stable water supply to every household in the province, the report added.

Thursday’s meeting was also attended by MCWD chairman Jose Daluz III, MCWD general manager Edgar Donoso, CMWD Group director Roberto Vasquez Jr., CMWD general manager for Cebu Stan Genosa, Capitol consultant Jon Sepulveda, Ricardo Pardillo, Provincial Treasurer Roy Salubre and Provincial Legal Chief Donato Villa.


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