Manila Water wins Cebu bulk supply contract

MANILA, Philippines - Ayala-led Manila Water has won the contract to develop, operate and maintain the bulk water supply system of Cebu province.

This was disclosed yesterday by Manila Water president Gerardo C. Ablaza Jr. after Cebu Governor Gwendolyn Garcia awarded the development, operation and maintenance of a bulk water supply system in Cebu province to the Manila Water consortium.

In a statement, Ablaza said “Manila Water is very happy to have won this bulk water supply bid. We congratulate the provincial government of Cebu for the successful conclusion of a competitive and transparent PPP procurement process which sets the tone for similar projects in the future.”

He said “Manila Water believes in Cebu and its pivotal role in both national and regional development. We are committed to be part of its growth momentum. We believe that we have invested significant time and resources over the past years in finding ways to bridge the huge gap between the supply and demand to serve Cebu’s needs. This desire underpinned our thrust to look for ways for us to be part of the first surface water source project of the province without compromising the quality we are renowned for. Our engineers worked tirelessly to come up with a feasible and sustainable response to the requirements of the competitive bid process and win this important project.”

Ablaza expressed his pleasure over the outcome of the bidding which satisfies Cebu’s various stakeholders and makes Manila Water a part of Cebu’s progress. 

“We look forward to getting this project off the ground and to participate in other water service projects in the pipeline to meet Cebu’s growing water demand,” Ablaza said.

With the issuance of the award, the provincial government of Cebu and the Manila Water consortium must negotiate and execute a joint investment agreement with 49-percent to 51- percent equity participation, respectively.

The landmark water supply project shall supply 35 million liters per day of potable bulk water sourced from the Luyang River of the municipality of Carmen. 

The project will partly provide the water demands in the northern and central portions of Cebu province. Currently, less than 50 percent of these areas are being served. 

The bulk water supply project is also expected to improve the current groundwater condition in the province which has deteriorated due to over abstraction.

Manila Water is the East Zone water utility concessionaire of the Metropolitan Waterworks and Sewerage System (MWSS).