A TOP official of Metropolitan Cebu Water District (MCWD) said it is opening its doors to bulk water suppliers and private investors as it moves to stabilize its finances, expand supply and address long-standing operational losses.
Ruben Almendras, civic sector representative to the MCWD’s board, said the water district is currently burdened by heavy financial losses and high non-revenue water (NRW), prompting management to seek fresh investments, renegotiate existing bulk water contracts and pursue infrastructure partnerships, particularly for transmission lines.
“We are welcoming investors, including bulk water suppliers, who are willing to come in with competitive pricing and help us build the needed infrastructure,” Almendras said, noting that private sector participation will be key to turning the utility around.
Almendras’ remarks came after Aboitiz InfraCapital Water expressed interest in expanding its water business footprint in Cebu.
“We’re quite keen on investing in Cebu. To put things into perspective, there is about a 300 million liters-a-day supply gap in Metro Cebu, so the demand is there,” said Ramon Aboitiz Tuason, assistant vice president and head of strategy during the Day 2 of Cebu International Investment Summit 2026. “Seen from demand projections and real estate development, demand is fully going to grow, so we’re quite keen on being part of the solution.”
MCWD’s NRW stood at 39 percent in 2024 and has since been reduced to about 32 percent still far above the global benchmark of around 18 percent. Almendras said every 10 percent reduction in NRW could generate an estimated P500 million annually.
He also flagged existing bulk water contracts as a major concern, revealing that some suppliers charge as much as P70 per cubic meter — higher than MCWD’s average selling price to consumers.
“Even if you blend all sources, the weighted average cost of bulk water is still higher than our selling price,” he said, adding that about 52 percent of MCWD’s supply now comes from private producers, while 48 percent is internally generated.
Almendras said several groups have expressed interest in supplying water to Cebu, including proponents of large-scale desalination facilities similar to those operating in Singapore. Some projects, however, remain stalled due to the lack of transmission lines and right-of-way permits.
“We have the supply potential, but without transmission infrastructure, we cannot fully utilize it,” he said, urging investors to consider build-and-operate or build-transfer schemes for pipelines and related facilities.
Rate adjustment, progressive billing eyed
To stem losses, MCWD is also preparing to seek regulatory approval for a water rate adjustment and a shift to progressive billing, where higher consumption is charged at higher rates.
“The more you consume, the more you pay. That encourages conservation and makes the system fairer,” Almendras said, adding that the utility has been bleeding hundreds of millions of pesos annually under the current rate structure.
He said discussions with regulators are expected in the coming weeks, with MCWD targeting earlier implementation of new rates once approved.
Almendras said the combination of private investment, renegotiated bulk water prices, reduced NRW and rate reforms could help MCWD recover financially within the next two years.
“This is not just about fixing MCWD. This is about ensuring sustainable, reliable water supply for Metro Cebu,” he said. / KOC